Good day, ladies and gentlemen, and welcome to The Female Health Company’s First Quarter Fiscal Year 2016 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. The statements made on this conference call that are not historical in nature are forward-looking statements based upon the Company’s current plans and strategies, such forward-looking statements reflect the Company's current assessment of the risks and uncertainties related to its business. The Company’s actual results and future developments could differ materially from the results or developments in such forward-looking statements. Factors that may cause actual results or developments to differ materially includes such things as product demand and market acceptance; the timing of receipt and shipment of large orders, competition, the economic and business environment, and the impact of government pressures, currency risks, capacity, efficiency, and supply constraints, the ability to execute on new business strategies and other risks detailed in the company’s press release, shareholder communications and Securities and Exchange Commission filings. For additional information regarding such risks, the company urges you to review its 10-Q and 10-K SEC filings. I would now like to turn the conference over to Mr. OB Parrish. Sir, please go ahead.

Thank you, Garry. Welcome to The Female Health Company’s first quarter 2016 conference call. Michele Greco, our EVP and CFO, is here with me in our Chicago office; and Martin Tayler, our EVP of Operations is participating from our London office. This morning I’ll make some comments regarding the status of the company including some information regarding to the Zika Virus, then I’ll cover the financial results, key factors that may impact future results and the outlook. As usual, when I refer to years, I am referring to the company’s fiscal year, which ends September 30th unless otherwise noted. There are general observations that reflect our progress and may reflect our future potential. First, the company posted excellent growth in revenues and earnings per share for the first quarter of 2016. Secondly, we have a progress on the identification of specific opportunities to diversify the product line and in our evaluation we’re going to see direct-to-consumer promotion in the U.S. Third, we completed $10 million credit facility with BMO Harris Bank. Fourth is the unfortunate emergence of the Zika Virus epidemic. Now, I would like to spend just a couple of moments on the outlook [ph] since it’s gotten a lot of publicity. The World Health Organization has declared an emergency regarding the Zika Virus. It is a virus transported by mosquitoes. In recent years, it was detected in Brazil and has now moved into 20 Latin American countries and is epidemic in Brazil. Women who are infected may give birth to babies with brain defects and other deformities. Brazil, which is also preparing for carnival, which starts on Friday, and the Olympics has initiated programs advising women not to become pregnant. The female condom is an excellent method from preventing pregnancy in view of the Zika Virus. Our Brazilian…

[Operator Instructions] The first question comes from Peter McMullin with IPC Global. Please go ahead.

Hey, good morning, OB.

Good morning, Peter.

How are you?

Great.

Okay. I will start with two and then recycle. The margin was certainly, amazing as we look at the company we should – should we still be thinking of kind of a high 50s margin on an ongoing basis, rather than the anomaly of currency?

Well, I think that something in the 50s is probably the likely margin. We do have a positive currency impact that boosted the margin up until the 60s as time. We can’t be sure that’s going to continue.

And just so we’re clear what is it related to the U.S. dollar versus the manufacturing cost?

What causes that the specifics are actually we denominate, all of our sales in U.S. dollars, which tends to minimize impacts on currency. All though we do manufacture in Malaysia and so much of our cost both immaterial and labor is in the local currency which is ringgits.

Yes.

In the long-term, ringgits and the dollar have been in pretty stable relationship. Recently, however, the dollar has increased in value against the ringgit, which has had a positive impact on our cost of goods, I guess would start.

Second question and I’ll get back in queue. With Carnival and the Olympics is coming up, do you have some courage to play in terms of getting some of those accounts receivable paid down quicker. I think it is a little bit of a pale over the stock base?

We are still going with the advice that they gave us, which was we could we see payments as earlier as February aslate as May beginning on payments. One other factor is that if there is an acceleration in the use of the female condoms in Brazil, which there maybe, remember we just sold them 40 million units and another tender comes up, one of the rules are, is one of the rules they have is before they issued another tender they have to pay the vendor any bills that are due.

Well, that’s good. I know during the last Olympics, certainly from the male standpoint there was a lot of condoms used.

Yes and they’re facing both the Carnival and the Olympics coming up and also in face of the Zika virus.

Yes, yes. I’ll get back in line from my other two. Okay.

Thank you.

The next question comes from Marc Robins with Catalyst Research. Please go ahead. Mr. Robins, your line is open.

There, there we go. Thank you very much. Could you again repeat the ways you can purchase the FC2 online, I got Walmart, Walgreen, Amazon, but then I missed the rest.

Okay. Just on second, I’ll give them all to you. It’s available, wearall.com, Amazon, Walgreens, CVS, Target, Walmart, Drugstore.com, MyQuestStore.com and ShopFemaleHealth.com, we’re also working on a couple more that will probably be available within the next month or so.

And then secondly, I know you’re doing the study, but it seems that with the Zika virus and all the evidence that you have preventing pregnancies and HIV that’s direct-to-consumer retail sales, should produce pretty nice incremental sales, it should be help that. Is that kind of how we should read the future?

Well, we really evaluate in this regard six months very carefully. And one of the key factors we’re evaluating is if we – consumer basis, direct-to-consumer, we have initial sales, what will be the repeat sales, how many women will buy or continue to buy on a consumer basis, and what will the frequency be in terms of projecting the results, that’s one of the key things we’re looking in addition to all the other things we would do such as looking at packaging, trade names and promotion.

As a follow-up now that so many of the drug stores out there and even the grocery stores have consulting areas, is that something that could be used to help deploy the FC2?

Yes, so I think there is a drug opportunity in stores that are providing that kind of service. There’s every reason that those people can provide counseling on both disease prevention and prevention of pregnancy. And if you tie that into the fact that in some states, I think it’s official on California, or Oregon, or possibly both, that pharmacists can prescribe birth control products. It’s a natural thing for the storage, we want to do that and provide that, because to the extent those products are determined by somebody who works in the storage, not positively impact the storage revenues.

Got you. I will get back in the queue. Thank you so much.

[Operator Instructions] The next question comes from Tony Chiarenza with Key Equity Investors. Please go ahead.

Good morning everyone. I wanted to ask a little bit of question for clarification on the diversification. You say you are down or you have two or three opportunity that you’ve singled out. Can you give us any more specifics and what areas these opportunities are? And perhaps some kind of magnitude – the impact they’d have on revenues of the company?

I can’t give you specifics regarding the individual things we are looking at. It’s confidential at this point. And for that reason I wouldn’t want to provide you any specifics until there is something to announce. I can say, this is about the things we are looking at, those are the proprietary. They provide differentiation and in all of the cases that we are looking at and they would have a significant impact on the company in potential revenues and shareholder value.

I’ve assumed the area in the women’s health area. Is that correct?

To some extent it’s in the women’s health area and related types of products.

Okay, because I am thinking of something that is sort of complimentary that’s taking advantage of distribution or something that you already have or could it be something that’s completely unrelated? And I’m just…

Well, I don’t want to get into the specifics of it all, because we do have – the things that we are looking at are confidential and for now we would like to keep it like that.

Okay. And one would might – will you expect some kind of announcement, you think it is another three months, six months, nine months before you…

Our goal is certainly you’ll see us something completed during this year.

You mean, completed during this year. Okay, good. Thank you very much.

Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you, Garry. I would like to thank everybody for their interest and we will be on next quarter. Bye.