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good afternoon and welcome to great basin scientific's business update call . this is david clair of icr investor relations . before we begin , i will start with some cautionary statements : the following discussion regarding great basin scientific contains forward-looking statements for purposes of the safe harbor provisions of the private securities litigation reform act of {num} which forward-looking statements involve significant risks and uncertainties , including those discussed in this presentation and others that can be found in the " risk factors " section of great basins' most recent quarterly report on form {num}-q and other sec filings . all statements other than statements of historical facts , included in this presentation regarding our strategy , future operations , future financial position , future net sales , projected expenses , products' placements , performance and acceptance , prospects and plans and management's objectives , as well as the growth of the overall market for our products in general and certain products in particular and the relative performance of other market participants are forward-looking statements . these statements involve known and unknown risks , uncertainties and other factors that may cause our actual results , levels of activity , performance or achievement to be materially different from those expressed or implied by the forward-looking statements . 
you should not rely upon forward looking statements as predictions of future events . we cannot assure you that the events and circumstances reflected in the forward looking statements will be achieved or occur . although we believe that the expectations reflected in the forward looking statements are reasonable , we cannot guarantee future results , levels of activity , performance or achievements . except as required by law , we undertake no obligation to update publicly any forward looking statements for any reason after the date hereof or to conform these statements to actual results or to changes in our expectations . 
1 
after the brief prepared remarks we will be opening the call to a question and answer period . at this time it is my pleasure to turn the conference over to ryan ashton , great basin's chief executive officer and president . ryan … . 
ryan ashton , chief executive officer : 
good afternoon . earlier this afternoon we released our 2 nd quarter highlights , customer numbers and preliminary revenues . it was another quarter of strong progress for {num} customer and instrument placement goals , ending the quarter with {num} result-reporting customers . this was ahead of our internal targets and so we are raising our customer guidance for {num} from {num}-{num} customers to {num}-{num} customers to end the year . in the third quarter we will be focused on launching our two recently fda-cleared assays into existing customer sites and therefore expect that the majority of the new customer growth will occur in the fourth quarter . 
in the 2 nd quarter we also saw continued strong year-over-year revenue increase of {num}% to approximately ${num} this was flat sequentially compared to approximately ${num} in the 1 st quarter , which can be attributed to the seasonality of our c . diff product . c . diff testing has always peaked the first quarter of the calendar year and this year that peak was particularly intense . c . diff is moderately outbreak driven and winter is by far the highest volume period for our c . diff customers who see bed days rise and c . diff outbreaks increase due to flu season . this phenomenon is further amplified by the fact that spring and summer have always been our slowest c . diff season on a per customer basis and so we don't expect to see per customer c . diff testing rise again until later in the fall and then peak as always in the winter—at which point we expect to see significant benefit from all the customers we are adding in {num} 
2 
because of this seasonality in our c . diff testing business , we focus on year-over-year revenues . as i said revenue rose {num}% year over year , and for customers who had been using great basin for at least one year we saw year-over-year testing increase {num}% because of a modest increase their c . diff testing relative to {num} and primarily because of the addition of our group b strep test at many of those customer sites . we now have {num}% of our customer sites using our group b strep test and as we continue to expand our menu with assays like our shiga-toxin direct test and our staph id-r panel we expect the seasonal variability of our revenues to decline . shiga toxin direct , for example will help offset the seasonality of c . diff because shiga toxin infections—caused by the e coli bacteria—increase in the summer when camping and picnicking lead to less than ideal food handling practices which leads to increased e coli infection rates . 
as i said earlier we ended the quarter with {num} revenue-generating customers . this was an increase of {num} customers from {num} at the end of the 1st quarter . in addition , and even more important , we added a total of {num} what we call " assays placed " in the quarter . an " assay placed " is way for us to describe a customer site using a specific assay from our menu to report results . this metric represents the total number of customers for each of our products . to end the 1 st quarter we had {num} customer sites using our c . diff test and {num} customer sites using our group b strep test or {num} total " assays placed . " in the 2 nd quarter we added {num} new c . diff customer sites and {num} new group b strep customer sites for a total of {num} assays placed bringing our total assays placed to {num} we provided a table in the press release issued this afternoon which outlines these numbers and may provide additional context for understanding this key metric . 
3 
as of june {num} {num} test penetration is as follows : {num} of our customer sites are c . diff only , 7 of our customer sites are group b strep only and {num} of our customer sites are using both our c . diff and our group b strep test . 
we added {num} new customer sites in the quarter . this was nearly triple our customer acquisition rate in the 2nd quarter of {num} when we added {num} new customers . our sales rep efficiency and our sales days in the 1 st quarter continue to be industry leading . our rep efficiency increased from a little over three new customers added per rep in the 2nd quarter of {num} to {num} new customers per rep in the most recent quarter . our sales cycle further declined n the 2 nd quarter at an average of {num} days from start of eval to 1 st revenue producing order . and our close rate also improved relative to last quarter at {num}% of all evals started . as we've said before , we believe these sales indicators firmly point to the fact that we have both an outstanding sales team and the best molecular platform on the market for small to medium hospitals . we remain convinced that our combination of ease-of-use , affordability and versatile menu , puts us in an exceptional position as we seek to dominate the market of {num} hospitals under {num} beds in the united states . 
however , the 2 nd quarter was frustrating for us from a menu expansion perspective . in our update call in april earlier this year we set expectation that we would launch our two recently fda-cleared assays , the shiga toxin direct test and the staph id-r blood sepsis panel in may and june respectively . that did not happen . 
4 
and the reason was the same for both tests . when we completed our trials for both tests we determined that minor sample-preparation format changes were needed for both assays to meet our stringent standards for ease-of-use and customer experience . bluntly , we failed to properly estimate the time required to make and validate the changes and we missed our target ship dates . the modifications have been completed and we are now finishing validation studies to confirm both assays remain substantially equivalent to the assay format used in the clinical trials . those studies are going well and validation is nearly complete , and we feel confident that we will be able to launch both assays this quarter . we will of course announce , via press release , the commercial launch of each product when it happens . 
as we have previously said {num}% of our customers have expressed interest in adding each of our new assays . for shiga toxin direct we expect it to take 5-7 months from for us to reach our target takeup rate and for staph id-r , because we expect a longer evaluation and validation process we expect it will take 9-{num} months . in the case of both tests we also expect to see large number of new customers bring in the great basin system and we expect a significant percentage of those customer sites will also add our c . diff and group b strep tests . 
in addition , development of our additional assays continues on plan . as you know we have two assays presently in clinical trial : our bordetella pertussis test and our bacterial stool pathogens panel . both trials are proceeding well . because of the low prevalence of bordetella pertussis , it will take time to gather the necessary positives to meet the requirements of the trial and therefore we expect to complete the stool pathogens panel trial first . the three additional test we have in late stage development : our chlamydia / gonorrhea test , pre-surgical screening test and candida blood sepsis panel are all progressing well with trial starts expected later this year . as we have repeatedly said , fda-clearance and commercial launch of these tests will bring our menu to 9 tests and raise potential annual revenue per customer from the current ${num} to as much as ${num} we anticipate that as these assays become commercially available , this dramatic increase in potential revenue per customer , combined with our continued success in adding customer sites , will result in a real inflection point in revenue trajectory during {num} 
5 
the second quarter was a good one , and in the coming months we expect to see continued progress on all fronts . as you know earlier this month we closed a ${num}mm convertible note financing with ${num}mm of gross proceeds . as we said in our press release announcing the transaction , we believe this financing , combined with a smaller equity transaction we are planning for the fall of this year , may very well be adequate to fund great basin through to profitability . and that is something we will be working very hard to achieve over the next two years . how do we achieve that goal? for us the answer is clear : we will need between {num} and {num} customers , utilizing between {num} and {num} of our instruments . and we will need 7-9 fda cleared and commercially available tests by the late {num} or early {num} to drive an increase in revenue per customer during {num} 
with this funding in place , and the additional financing we expect to complete in the fall , we believe we have the financial means to achieve these targets for customers , instruments placed and commercially-cleared tests . and if we do that , we strongly believe that profitability in {num} is well within our grasp . this will be quite a feat . few if any of our stand-alone molecular competitors are consistently profitable—and all have revenues considerably higher than ours . but we believe two things : first that profitability is key to a strong and disciplined company . and second that our powerful but inexpensive chip-based detection technology offers significant cost advantages that we believe will make profitability attainable sooner for us than is typically the case for a molecular diagnostics company . 
6 
we are not yet offering guidance for customers in {num} nor for revenues in any period . but the goal of profitability in {num} drives our every decision and we are deeply committed to it . we hope that investors will recognize that while profit is our goal , our guidance is more limited—and represents only the variables and time horizon we feel can confidently project , in this case customer numbers and menu size to end {num} and {num} as a company we are committed to achieving our ambitious goals and we are absolutely thrilled to know we have the financial resources that may very well make our goal a reality .