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.

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