Now, I’ll turn the call over to Mark.
Thanks Tracy. Good morning and thank you for joining us today. Obviously we are pleased to start the New Year with strong EBITDA and cash flow performance of as well as posting our first quarter of positive earnings-per-share on GAAP basis.
On our year end conference call we discussed several steps we had taken to refocus our sales efforts and further reduce overhead. For Q1 our gross margins improved to 77% and our operating expenses declined by 26% from the first-quarter of 2011. As a result PokerTek increased its cash position and strengthened its balance sheet better positioning the company for growth.
Entering 2012 we are focused on ramping up market penetration for both local PokerPro and ProCore. We have clear lead with PokerPro which is the dominant product in its category and we have opportunities tied up to drive market penetration more aggressively over the next several quarters. The ProCore platform which expand our reach into the market for house bank blackjack and other specialty games continues to perform well and it's creating new opportunities for diversification and growth.
Achieving a profitable quarter is an important milestone and worthy of a few moments of celebration however our focus not on the quarterly ups and downs but instead on growing more meaningfully over the next several years. In this industry the sales and regulatory cycle can be arduous and opportunities take time. We have worked hard over the past several years to solidify PokerPro's market position, to develop the ProCore platform, to streamline their operations and to focus our sales and marketing efforts. I'm excited about the progress and expect to see increased growth in our gaining positions as we proceed through 2012.
James will now provide some highlights regarding our current marketing initiatives and opportunities.