Welcome to the RF Industries Second Quarter Fiscal 2018 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session [Operator Instructions]. As a reminder, this conference call is being recorded today, Monday, June 11, 2018. Please note that except for the historical statements, statements in this release may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. When used, the words anticipates, beliefs, expects, intend, future and other similar expressions, identify forward-looking statements. These forward-looking statements reflect management’s current views with respect to future events and financial performance and are subject to risks and uncertainties and actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of new products and other risks and uncertainties discussed in the Company’s periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. RF Industries undertakes no obligation to update or revise any forward-looking statements. I will now turn the conference over to Rob Dawson, President and Chief Executive Officer; and Mark Turfler, Chief Financial Officer of RF Industries. Rob, you may begin.

Thank you, Abby. Good morning everyone and welcome to our fiscal 2018 second quarter conference call. With me is Mark Turfler, the Company's CFO, who will review our financial and business highlights shortly. As you saw in our earnings release from earlier this morning, RF industries fiscal '18 second quarter was the largest quarter in the history of the Company in both sales and net income. These results were driven by growth in our historical run rate business as well as some nice successes with customers in our OEM market and the Tier 1 wireless ecosystem market related to three 5G or 5G build out. The creative solutions and hard work from our team and the heavy focus on meeting our customers need has led to increased sales and bookings while showing significant improvement in gross margin. During the quarter, we were asked to hit some aggressive production milestones on behalf of our customers and we did so in a flexible way without major increases in fixed operating cost. While the strong efforts of the team helped us to deliver a large portion of the $20 million backlog that we had entering the second quarter, we were able to generate new orders of 12 million during the quarter. This enabled us to start the third quarter with a solid $10 million backlog which although down from the beginning of the second quarter is still substantially higher than the $4 million backlog we started with the beginning of the fiscal year. Q2 was a big quarter for us and while we strive to set records every quarter, I'm aware that there will be ebbs and flows from quarter-to-quarter as we execute on our growth strategies. While we still have a lot of work to do, I'm confident in our ability to…

Thank you, Rob, and good day everyone. Our second quarter sales of $22.4 million increased $14.8 million from $7.6 million in the second quarter last year. The majority of the sales gains were at our custom cabling segment where sales increased by $14.6 million to $19.6 million, due to higher shipments of custom, fiber-optic cable and other copper cabling products. Second quarter gross profit increased 6.1 million to $8.1 million, while at the same time, gross margins improved to 36% from 26%. The strong increase in gross margin is attributable to the growth in sales at our custom cabling segment which had the effect of spreading certain fixed manufacturing costs over a larger revenue base. Selling and general expenses increased 1.7 million to 3.4 million, due to higher compensation costs related to the strong sales gains at our custom cabling segment. Despite the increase in expenses, selling and general expenses as a percentage of sales declined to 15% as compared to 22% of sales, indicating the Company's increased operational efficiency. The second quarter tax provision was 20% compared to 47% for the second quarter last year. The decrease in the effective income tax rate was driven by the reduction of the federal corporate income tax rate, primarily due to the Tax Act and the benefit of R&D credit. Net income for the quarter was 3.2 million or $0.34 per diluted share, compared to net income of 0.1 million or $0.01 per diluted share in the second quarter of last year. Net margin for the second quarter was 14.3% compared to 1% in the second quarter last year. As for the first six months of fiscal 2018, financial results were favorably impacted by our historic Q2 results as just mentioned. I will touch on some of the first half results that…

Thanks Mark. We achieved a record second quarter sales higher margin, near record first-half net income, strong cash flow, improved working capital, have a strong backlog of 10 million and declared our 32nd consecutive quarterly dividend. The Company expects to again post significant sales growth in earnings compared to the same quarter last year in the current third quarter of fiscal '18. With that, I would like to open the floor to questions. Abby, we’re ready to take first question.

[Operator Instructions] And our first question comes from Greg Rich who is a Private Investor. Please go ahead.

Congratulations gentlemen on an outstanding quarter. I have two questions. First question is regarding your involvement with the 5G build out or implementation. Could you comment as to where along the build out we stand right now from industry standpoint? We've just seen 10% build out so far or 50%. Could give us any idea about that?

Greg, that’s a great question. I would love to say that we got a definitive number nailed on that. I think that's the easiest way for me to answer that is we’re in the really early stages. So in my comment I think I may even call the pre-5G. We're still seeing some call it interim updates from 4G to 5G or even just finishing up the 4G footprint is what we believe is happening. With that said, there has obviously been a large amount of talk about that amount of CapEx that’s going to be spent by the large carriers in the coming few years on 5G. So I guess generally we think we are in the very early stages in the infancy of the 5G build.

Alright and the second question regards the use of or the potential use of RFIL products with the cryptocurrency processing centers. Can you comment about that? I mean do you see a good opportunity there or is it just kind of minimal or…

Yes, so, we don’t do anything with that today. With that said, it doesn’t mean people aren’t buying our products and utilizing them at that space, but that is not -- the crypotcurrency centers themselves are not a focus point for us. We do business with large data centers, which certainly are processing some of that work, but we’re not directly involved with the cyrpotocurrency centers today.

[Operator Instructions] Our next question comes from Orin Hirschman with AIGH Investment Partners. Please go ahead.

Can you go through, it is a follow up really to last question of on the topology that people are using at the base station level and how that topologies evolving and what that might mean for you guys?

So, are you referring specifically on the 5G build on?

Yes, 4.5G build out, whatever you want to call it at this point.

Right.

And also all I mean, if you can clarify exactly following on the last question whether this is just really prep work or when the 5G build really becomes real in your opinion to have an opinion at this point?

We think we are in the early stages of it, so I think what we're starting to see is either call it a prep work or laying a ground work for the next couple of years of significant build. So I think related to the topology question, it really depends on the carrier and in some cases not just the carrier but the region or the type of radios that they are going within different parts of the country. We've seen some folks using remote radio heads, not unlike what they may have done in the 4G build where the radio and antenna are integrated together and go with the top of the tower. In other cases, we're seeing the typical topology that's been around for years with the base station radio at the bottom and the antennas at the top of the tower. The bigger topic here I think is the densification aspect of it which gets talked about a lot, and that's really making sure that coverage footprint can handle the density of use from mobile users, but that goes into small cell and dash as well. But specifically on the power topology, I think we're positioned to sell products into really any other design that may go on. We have some successes been -- when someone decides to go with the remote radio head or an integrated radio and antenna, which will be a fiber or hybrid fiber fed solution. We feel like we know that space pretty well and have an opportunity to perform there.

And just in the connector side, is this a drive on the connector side as well or plus so?

So I think that the connector side can benefit probably as much from the historic power design builds that are there, but also from dash deployments whether that's being stadiums, municipalities even in building. We're seeing a great opportunity to the connector wise and adaptor wise for adaptor kits to make sure that when a technician goes out to a site or is working at any location, they have the correct data that they needed and don’t have the delay getting the network online or per matter of days while they wait for something different or they need to run back somewhere and pick up the right product. We ideally love to keep a kit on every technician's truck, so he is ready to do that work and we feel like we're seeing some success there and I think that will continue just kind of the day-to-day run rate business. When we look at our overall historical business, the cable and connectors business is kind of the run rate that is actually trending up a little bit which is nice.

[Operator Instructions] And we have no additional phone questions at this time. So I would like to turn the call back to Rob Dawson for any additional or closing remarks.

Great, thank you, Abby. Thanks everyone for going easy on us this morning, only a couple of questions. I appreciate your interest and support to the Company. Mark and I are obviously always available to take personal calls, if you have any additional questions or you need more information outside of this call. We look forward to again discussing our results when we report results for the Company's third quarter -- fiscal third quarter in September. Thank you again to your support. Thanks for joining our call and have a great day.

Ladies and gentleman, this concludes today's call and we thank you for your participation. You may now disconnect.