Good day everyone and welcome to Ocean Power Technologies second quarter 2009 audio webcast. Today's conference is being recorded and webcast. At this time for opening remarks I would like to turn the call over to the Chief Financial Officer of Ocean Power Technologies, Mr. Charles Dunleavy.

Good morning and welcome to Ocean Power Technologies audio web cast for the second quarter ended October 31, 2008. Earlier today we issued our second quarter results press release and we will be filing our Form 10-Q with the Securities and Exchange Commission today. Our public filings can be viewed on the SEC website at sec.gov or you may go to our website, oceanpowertechnologies.com. I'll be joined on today's webcast by Dr. George Taylor, Chief Executive Officer and Mark Draper, Chief Operating Officer. During the course of this conference call management may make projections or other forward-looking statements regarding future events or financial performance of the company within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. As indicated in the slide, these forward looking statements are subject to numerous assumptions made by management regarding future circumstances or which the company may have little or no control, involve risks and uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. We refer you to the company's Form 10-Q and other recent filings with the Securities and Exchange Commission for a description of these and other risk factors. I'll now turn the call over the George Taylor, our Chief Executive Officer.

Thanks to everyone who's joined us for today's webcast. The second quarter of fiscal 2009 brought a number of important milestones to fruition for OPT. We delivered on key projects to customers such as Iberdrola in Spain and the U.S. Navy. We have also made steady progress in the development of our proprietary technology, in particular our 150 kilowatt rate of PowerBuoy, the PB150. We believe that achieving these milestones which build on our ten years of technology development and in ocean experience will set the stage to elevate OPT's position in the alternative energy marketplace in the near future. OPT's PowerBuoy technology continues to attract interest for both utility and autonomous applications. Our backlog as of October 31, 2008 is at a record $8 million, a significant portion of which relates to our next generation technology of PB 150. Our balance sheet also reflects a strong cash position, a very important asset in the current economic environment. For those of you who may be new to our story, OPT is the leading wave power company and is the only pure play public wave power company. At OPT, we pioneered the development and commercialization of a proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. Since the energy in ocean waves is predictable, electricity from wave energy can be used on a consistent basis and at numerous sites that are conveniently located near major centers of population and electrical demand worldwide. We offer two products as part of our PowerBuoy systems; a utility PowerBuoy system and an autonomous PowerBuoy system. Our proprietary technology is based on modular ocean going buoys. The rising and falling of the waves moves the buoy like structure, creating the chemical energy that our technologies then convert into electricity. Today I'm pleased…

I'd like to start out by talking about our key achievements this quarter on a few of our key projects. On Slide 6, you see pictures of PowerBuoys at some of our project sites. The first image is of the Autonomous PowerBuoy build for the U.S. Navy's DO Apps, Deep Water Active Detection System program. The second picture was taken during the deployment of our first commercial PowerBuoy in partnership with Iberdrola in Spain. The third photo is of the PowerBuoy being tested in Hawaii for the U.S. Navy. All of these PowerBuoys were deployed and tested in this last quarter. During the quarter we tested a unique ocean based PowerBuoy for the United States Navy in connection with its DO Apps program which is well suited for higher end security applications. As part of the first phase of this program, we conducted an ocean test of our Autonomous PowerBuoy system 70 miles off the coast of New Jersey. We also partnered with the U.S. Navy on another collaborative project for the deployment of a 40 kilowatt rate PowerBuoy in Hawaii. The PowerBuoy which is launched at the Marine Corp Base in Kaneohe Bay in October will be connected to the Oahu power grid to provide power to the grid that serves the base. In September, we deployed our first commercial PowerBuoy in partnership with Iberdrola, one of the world's largest renewal energy companies at a site approximately three miles off the coast of Santana, Spain. We deployed and commissioned a PB40 rated PowerBuoy which is the first one that is expected to be utility grade OPT wave power station to be built out in a later phase of the project. An OPT [inaudible] system was held with many dignitaries and polities from both Fantanda and Madrid. Our water specific…

Revenues decreased by $1 million in the three months ended October 31, 2008 to $.7 million as compared to $1.7 million in the three months ended October 31, 2007. The decrease in revenues was primarily reflective of a lower level of activity in connection with our Spain Wave Power station contract and our project with the U.S. Navy at the Marine Corp base in Oahu, Hawaii, as the current phases of these projects are nearing completion. The lower revenues also reflected the use of significant resources on the PB 150 product development efforts. Notwithstanding the record level of order backlog, we expect this comparative quarter to quarter revenues trend to continue over the next three quarters as the company concentrates its sources to build up the first two PB 150 PowerBuoys in calendar year 2009. Cost of revenues decreased by $.6 million to $1.4 million in the three months ended October 31, 2008 as compared to $1.9 million in the prior year's comparable period. This decrease in cost of revenues primarily reflected the lower levels of activity on the Wave Power Station off the coast of Spain and the Hawaii project for the U.S. Navy. The decrease in cost of revenues was partially offset by an increase in cost of revenues related to the Autonomous Power project for the U.S. Navy. Product development costs increased to $2.3 million in the second quarter of fiscal 2009 as compared to $1.9 million in the second quarter of fiscal 2008. The increase reflects our continued efforts to increase the output and efficiency of our PowerBuoy systems, again particularly, the PB 150 product. Selling, general and administrative costs increased to $2.4 million in the second quarter of fiscal '09 as compared to $1.4 million in the second quarter of fiscal 2008. This increase is…

I would like to brief review our growth plan and the strategies for the balance of fiscal 2009 and for the coming year. First, as you heard from Mark, we have made significant progress on the PB 150 design including working actively with an independent engineering group to attain certification of this design. Second, our commitment to our sales and marketing efforts over the next three years on coastal North America, the west coast of Europe, the coast of Australia and the east coast of Japan remains in place. These areas represent strong potential markets for our PowerBuoy Wave Power stations because they combine favorable wave conditions, political and economic stability, large population centers, high levels of industrialization and significant and increasing renewable energy requirements. Third, we intend to build on existing commercial relationships and expand the number and size of projects we have with our current customers. We delivered on the strategy in the second quarter by continuing to build on our partnership with the U.S. Navy. We also plan to enter into new alliances and commercial relationships with other utilities and independent power reducers; alliances along the lines of the agreement we have with Griffon Energy in Australia and Iberdrola in Spain. By leveraging these customer relationships, we believe we can expand OPT's commercial acceptance across the globe. Fourth, we expect to increase revenue streams through our Autonomous PowerBuoy systems. These systems are also well suited to address specific power generation needs of customers requiring off grid electricity generation in remote locations in the open ocean. These Autonomous systems are proprietary to OPT and provide what our customers see as an enabling technological advantage. They differentiate OPT in the wave technology arena as these systems lend themselves to customization while also offering upward and downward scalability. Fifth, the…