Greetings and welcome to the Transcat, Inc. First Quarter Fiscal Year 2016 Financial Results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Craig Mychajluk of Investor Relations for Transcat, Inc. Thank you sir, you may begin.

Thank you and good morning everyone. We certainly appreciate your time today and your interest in Transcat. With me here on the call is our Chief Financial Officer, John Zimmer, our President and Chief Executive Officer; Lee Rudow is unable to join us on the call today due to a death in the family. After formal remarks, we will open up the call for questions. If you don’t have the news release across the wires after the market close yesterday, it can be found on our web site at transcat.com. There are also slides that accompany today’s discussion, which you can find at the same location on the web site. Please refer to Slide 2. As you are aware, we may make forward-looking statements during the formal presentation and Q&A portion of this teleconference. Those statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause the actual results to differ materially from where we are today. These factors are outlined in the news release, as well as the documents filed by the company with the Securities & Exchange Commission. You can find those on our website where we regularly post information about the company as well as on the SEC's website at sec.gov. So please review our forward-looking statements in conjunction with these precautionary factors. With that, I would like to turn the call over to John.

Thanks Craig. Good morning everyone. Thank you for joining us on today’s call. If you’re looking at the slides, I will start by generally talking in slides 3. We had a solid start to the year and expect our momentum to continue and to drive us to an overall strong fiscal 2016. Our first quarter performance was driven by consistent execution of our plan and our compelling value proposition, both of which enabled us to achieve our double - expected double-digit revenue growth in our service segment. We delivered 11.5% year-over-year growth in service revenue, which accounted for 46% of our total revenue in the first quarter. Our service revenue growth can be attributed to a combination of strong customer retention and strong organic growth as our new business pipeline continues to develop and our business development team is firing on all cylinders as well as the impact of recent acquisitions. The quarter was highlighted by a 35% year-over-year increase in operating earnings. Earnings increase underscores not only the profitability of the service segment but it also demonstrates the operating leverage inherent in the service business. As we continue to run the playbook we look for operating earnings to continue to grow at a faster rate than our revenue. We’re also pleased to report that we expanded our service operating margin by 260 basis points, which further demonstrates our operating leverage. In fiscal 2015, for the first time our service segments surpassed distribution in operating income and we expect that trend to continue into the future. Distribution sales were down compared with prior year’s first quarter as we continue to face the soft market as well as headwinds created by weakness in the oil and gas industry sector. In our Distribution segment, we continue to launch new and innovative programs,…

Thank you. [Operator Instructions]. Our first question comes from the line of Chris Reynolds with Neuberger Berman. Please go ahead with your question.

Good morning that was an excellent quarter. I have a question about your distribution sales and I am wondering if there is a correlation between growth in service business and the distribution in sales of equipment, it doesn’t appeared like there is a correlation but I would think that there would be opportunities as you expand your service sales to improve the way to growth of the equipment business.

Thanks Chris, the reason it directs correlation in the growth, but there are opportunities and we take advantage of opportunities the across [indiscernible] the two segments where we will share reeds that are develop. So, we have someone on our service platform that isn’t buying products from us we aware of that and we market to those customers as potential distribution opportunities. So there is some cross over and carry over from growth and the service segment that help us to facilitate growth on a distribution side, but there in many cases they operate from different parts of customer facility, so calibration services maybe handled by quality control and in those areas whereas purchase of the equipment may come out of the different area or manufacturing operations. So, it’s our job from a marketing and a sales standpoint to connect us between those sources in those customers and we have some effectiveness in doing that.

Okay, thank you.

Thank you. Our next question comes from the line of Steven Stern with Stern Investment Advisory. Please go ahead with your question.

Thank you and congratulations on a very successful quarter.

Thanks.

I have two questions; we’ve been expanding a life science in the life science base very nicely, successfully. Within that area, where it’s been increase emerge activity of pharmaceutical companies [indiscernible]. Increased merger activity of pharmaceutical companies, [indiscernible] Mylan, Johnson &Johnson, Roche and mergers in the healthcare even provided. This has direct retail impact on our sales, those mergers that we higher corporate level.

There is no really direct impact, when our services and our products are sold into manufacturing operations in most cases. So as long as the volume of product is being produced by those manufacturers then that is going to drive the demand for our products and services. So a lot of these mergers are driven by marketing the market needs and combination of corporate overhead and other factors, there is some consolidation of manufacturing facilities to use out some excess capacity and that would have an impact on our potentially have an impact on our business but these mergers have been occurring for a relatively long period of time and we’ve been growing our business and growing it in the life science and so any impact from that is probably not I wouldn’t say minimal but it is not driving demand or lack of demand in our - for our services.

Okay. Very good, second question different perspective actually Transcat is predominantly you report either distribution of provider or provider of accredited calibration services in compliance, has any thought or any activity ever been considered in actual manufacturer or development of unique development of products. Is there research and development department and if so what type of things they look at?

The short answer is no that we haven’t looked at manufacturing our own products, we feel as though as we have a core competency in the distribution and marketing of products and the provision of those services on the calibration side and our other compliance services. So the answer is no, we are not really investigating manufacturing of products. We that is not part of our strategic plan.

Okay, very good. Thank you very much and again congratulations on the quarter.

Thanks Steven. End of Q&A

Thank you. [Operator Instructions] Ladies and gentlemen, we have no further questions at this time. I would like to turn the floor back over to John Zimmer for closing remarks.