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These risks could cause the company’s actual results for the current fiscal year and beyond to differ materially from those expressed in any forward-looking statements made by or on behalf of the company.2012 began on a positive note for ID Systems with first quarter revenues of $9.8 million, up 25% from the first quarter a year ago. This was our ninth consecutive quarter of year-over-year revenue growth. Revenue contributions in Q1 2012 came from a balanced mix of market segments, products and services led by strong increases in sales of both vehicle and transportation asset management systems which Ken and Darryl will discuss in more detail shortly. Our revenue was also derived from a relatively balanced mix of new product sales and service contracts with recurring revenue representing 43% of total revenue in Q1. Our gross margin remained strong at 50% in the first quarter, consistent with historic levels. As a result, our net loss improved year-over-year in Q1 as Ned will detail in a moment. We remained focused on the growth strategy that we executed successfully in 2011. We are expanding business with core customers in vertical markets and across geographic regions especially Europe. We are diversifying revenue sources by expanding our customer base both through direct sales to large enterprises and through channel partners. And we are maintaining our market leadership position by continuing to develop unique products and features including many enhancements to our patented systems for securing, tracking, and managing vehicles, trailers, and containers. As industrial vehicle management increasingly becomes viewed as a best practice in supply chain operations, as we continue deploying our rental car management technology, and as the transportation asset management market continues to mature, this strategy puts ID Systems in a strong position for further organic growth. With our healthy balance sheet, we also continue to evaluate growth opportunities through strategic acquisitions. Our criteria for potential acquisitions include strong fits with our recurring revenue and margin models, complementary technology and operating profiles, and synergies in customers and target markets.
As we grow, we will continue to exercise discipline on expenses as we have for example, by recently consolidating the sales forces of our subsidiaries. We’re working hard to continue the positive momentum we achieved in 2011 and Q1 2012 with our ultimate aim to build shareholder value.Thank you for your time today. I look forward to your questions later on the call. Now let me turn the discussion over to Ned Mavrommatis to detail our financial results for the fourth quarter and full-year 2011. Ned Mavrommatis Thank you Jeff, and hello to everyone on the call today. As Jeff noted, revenue in Q1, 2012 increased to $9.8 million, up 25% from $7.8 million in the first quarter a year ago. High margin recurring revenue was $4.2 million, up 4% from $4 million in the corresponding quarter a year ago. Recurring revenue represented 43% of total revenues in Q1 2012, consistent with 2011 when recurring revenue was 42% of total revenue for the year. Our vehicle management business contributed $5.3 million of revenue in Q1 2012, a 35% increase over Q1 2011, while our transportation asset management business contributed $4.5 million, up 17% from the first quarter a year ago. As Jeff mentioned, our gross margins in the first quarter of 2012 remained robust and consistent 50%. SG&A expenses in Q1 2012 were $5.6 million, up 9.5% over Q1 of 2011, but only 1.5% up sequentially compared to Q4 2011. R&D expenses in the first quarter were $1.1 million compared to $906,000 in Q1 2011 and $931,000 in Q4 2011. Excluding stock based compensation and depreciation and amortization, our non-GAAP net loss in Q1 2012 improved to $840,000 or $0.07 per basic and diluted share, compared to a non-GAAP net loss of $852,000 or $0.08 per basic and diluted share in Q1 2011. Read the rest of this transcript for free on seekingalpha.com