ValueClick, Inc. Presents at Goldman Sachs Technology & Internet Conference 2013, Feb-14-2013 09:40 AM

| About: Conversant, Inc. (CNVR)

ValueClick, Inc. (VCLK)

February 14, 2013 12:40 pm ET

Executives

John A. Giuliani - Chief Executive Officer, President and Director

John Pitstick - Chief Financial Officer and Principal Accounting Officer

Analysts

Debra Schwartz - Goldman Sachs Group Inc., Research Division

Debra Schwartz - Goldman Sachs Group Inc., Research Division

Good morning, everyone. We'll get started with our next discussion. Very excited to welcome back ValueClick. To welcome new CEO, John Giuliani, to our Goldman Sachs Conference for the first time. I'm Deb Schwartz, I cover some of the online advertising stocks here at Goldman Sachs. And John, for those that aren't as familiar with ValueClick, can -- how would you describe the company?

John A. Giuliani

I would -- well, first of all, I'd say we're one of the long-time survivors in the business over the -- ValueClick's been around since the late '90s and so in different form and matter. But we're a premium online media company. We range from ad technology, Affiliate Marketing, mobile marketing, traditional display and then all aspects of the more personalized and database marketing as well as video and -- really, a full suite and full complement of online activities and medium.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So you were named CEO back in December. You were CEO of Dotomi previously to that, which is a high-growth retargeting company. With the acquisition of -- with the integration of Dotomi and actually, taking a step back and remembering one of the lines from your press release yesterday that said "2013 was going to be a watershed year for ValueClick," how are you thinking about the strategy of the company for this year and the next couple of years?

John A. Giuliani

Yes. So I see this as a, really, a transformative year for us, not a transitional year. But we are pivoting from a history of lots of acquisitions, running our businesses somewhat independently to really running them more holistically. And the reason, we are doing that is I think, with the last 2 acquisitions of Dotomi and Greystripe mobile. We really have a) a full suite of products that are overlapping with our customers and we're working on similar projects. So it makes all the sense in the world to take the best of what we're doing and put it together. And our focus is really, as I've said many times in the earnings announcements and kind of discussions, is on the customer. We see a real opportunity for the CMO and the marketing department, they need help vetting the different point solutions that are in the marketplace. They do not have enough resources to do that. And they need a, frankly, a better relationship that they can rely on for multiple points of action in the marketing sphere that isn't called Google. And that's a big deal. People do not want to get -- nothing against Google, it's just nobody wants too much concentration. And so with a company like ValueClick, they don't have the same worry that if we get too big with you, you're going to kind of have too much muscle on us. We're still going to be a reasonable size and we're going to be earning our daily bread with them.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

And I think you kind of hit on something that we've been focused on a lot in this space which is that the display landscape is becoming increasingly complex. You have tons of demands at platforms and supply set platforms in retargeting companies. And while there's a lot of innovation in this space, you said it, it's a little bit overwhelming for CMOs. What's your go-to market strategy? How do you differentiate? And what are the either technologies or data aspects that really differentiate ValueClick?

John A. Giuliani

Yes. So the first thing you have to do with your customers is that you can't try to be all-being, all-knowing on everything. It's not omnipotence on every particular aspect of the marketing world. What you can do is set up principles that say, I can rely on you to vet and to build what you need to. And so our -- that's why our focus is trying to be the best relationship. And so if I can sit in front of a CMO and I can tell him, I already have what they would call a DMP, I don't call it that, but to my CRM database management, I have the most prolific individual profiles that are actionable in the industry. So I start with that, but they say, "Hey, I'd like to populate other things." When I have -- I have the leader in Affiliate Marketing, which, virtually, everybody has an affiliate marketing, so you start to put things together. Then I've got mobile that I've integrated in with our other display businesses, as well as something like tag management. And you have this discussion with them about, you don't have to vet 12 different tag management companies, all types of DSPs, DMPs that frankly, yesterday were ad networks or some other kind of targeting device that have changed names and morphed their businesses, and it's confusing. So what we try to do is say, "Listen, let's build on principles." We're about data, personalization, profiling and then access to multiple devices to the consumers and then layering all that back to have analytics that follow wherever the consumer goes. So at Dotomi, we really made our marks in the analytical world with offline attribution to online marketing. That was a big breakthrough when we could take customer files that were off-line and show them the benefit of the online campaigns they're in. So when you wrap that altogether, you're really saying, I've got these principles that we're about and you don't -- and I personally -- I can't tell you I'm going to be in every place you need to be, but I can tell you I'll pivot there if it's important to you. And that's really -- and I've proved that with them because I don't charge them for everything, I bundled some things. That's kind of comforting for them; that I'm not going to nick them on everything.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So you mentioned the power of your DMP or data management platform, can you help us understand what exactly your data knows about me, the consumer, and how you kind of leverage that with advertisers?

John A. Giuliani

Yes. So the first thing I'll say is that when we get data in, we anonymize it immediately. We send it out to a third party. This is something we constructed years ago to be ahead of privacy, because my basic kind of thought was, if I can't explain to my mom then I can't do it. And other people have similar kinds of little reference points. I still have trouble explaining it to my mom, but I think it's more my problem than hers. But so we strip that PII, so we have anonymous profiles. So then what we know is purchase history by retailer. So we get a 2-year file, offline, online. So it might be in the store, through telephone or catalog, mail channel or online, or, generally, it's a combination of those, and then that is combined with other retailers' data. So again, we get anonymous historical data purchases and what we do with that is we don't really care where you bought it necessarily, we only care about how does it talk to you. What does it say about you? Is there something from a marketer perspective that I can connect you with that person? And so what we're looking is not only the purchase and the normal hierarchy of categorization, we're looking at, if you bought a sweater -- a lime-green sweater or one of those greens my daughter's always buying that's kind of trendy, what does that say about you? So we'll have the fact that you bought a sweater with lamb's wool; you bought it at The Gap or something, but what really is important is, what does it say about you? Because over time, our profiles get smarter and smarter. And so what I mean by that is, we have a data set on somebody today as they react to advertising, as they buy things, that tells us more and more about what they are about. And what it allows us to do then, from a marketer's perspective, is have a true customer relationship management program, a real CRM approach because you know more about the person and then you can talk to them in, what I would say, a metronomic way instead of episodically. So you can talk to them regularly based on what you know, based on what they're buying, how they're reacting, and you get the benefit of understanding the other data elements we pull in that only help us understand the consumer more. Though different than most profiling out there, I don't care to tell -- in fact, I expressly don't want to do this is, I don't want to tell one retailer, "This is the customer from the other retailer." That to me, it doesn't help my customers. What does help them is if I can connect them to the consumer because of my deep knowledge and let them talk more effectively to them, and then calibrate how much they spend, where they spend it, what types of media choices, the timing of it, all those elements

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So what you're saying is if I recently bought a printer at Staples, Office Max doesn't necessarily know to target me with printer cartridges for example?

John A. Giuliani

They would expressly not know. Yes. So when we put that together, we said -- sort of like a physician. When you're getting trusted with a customer file, first thing you got to do is, do no harm. You can't make things worse for them. And so what you've got to do is focus on -- and everybody wants to jump there. The industry loves acquisitions. So if we did what you just suggested, there'd be a bunch of people buying, it just wouldn't be a long-term business. Because eventually, people go, "I'm not doing that." When you help them connect with their own customer in a more effective way, everybody can win. Because typically, you could get more out of your current customer base if you talk more effectively. And the way we think about it is really calibrating, so I call it personal calibration. Calibrating how much do you spend and where do you spend it for each consumer, based on how much -- what's their past performance or their potential. And so you look and you can kind of look at the ROI at that individual level and determine how much do I want to spend ahead of time. So that's where I see something -- I'm jumping ahead a little bit, as I usually do. But connecting to the consumer to the marketer, that's where we want to win, not finding the other guys' buyers.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So you talked a little bit about integrated selling. You have a pretty broad suite of products. Which are products that are most appropriate for that integrated selling approach? And when ValueClick acquired Dotomi, what was the degree of client overlaps that you had? Where is it now? Where you expect it to be 2 years from now?

John A. Giuliani

Yes. So when we were purchased in August of 2011. From the Affiliate Marketing, which I think should have a broad overlap, there was maybe 10% or something like that of crossover. And that didn't -- I just said Dotomi wasn't very penetrated. We focused on big or one [ph] IR hundred-type of accounts, Affiliate Marketing. CJ is the premier leader and they have 2,700 customers, so it stands to reason we wouldn't have a lot of penetration over there. But they were penetrated in about 10% or so of ours. That makes a lot of sense, and we've had real success. In fact, I think I talked yesterday at the earnings announcement, major top 10 Internet retailer, we just installed affiliate CJ in January. It's been a long-time Dotomi customer. We're working with them in a lot of areas. And we see that, that particular account is one that can handle our ad serving, can handle our tag management, probably would do broader-based media that we find in the traditional ValueClick media. Certainly our mobile, we've woven into the profiling. Yesterday, we got data in from them. So that all kind of fits together into a broad base. I think -- but those are the elements, I think, to answer your direct question, that I think the make most sense of selling together. So when we're selling new customers in, we've got a business development team now that is expressly looked as an opportunity index for -- a matrix for overall ValueClick, and they have the resources to go in to sell, specifically, Affiliate Marketing technology, which primarily is ad serving as well as tag management, and then the CRM data play. Because those require integration and installation. So we put those into a business development function. Not sold by them as anything that would be I/O driven like agency business, and search-and-order-driven, campaign-to-campaign that you traditionally get out of the Greystripe mobile business or the BC Media business, which is largely through agencies. So we don't combine that selling effort, because we think it's fundamentally different. Once we have accounts, because the relationships are so big, we're now taking a little bit of the Dotomi model, that has a very high end, what we call a client development manager or director, who is very -- they're usually ex-agency or ex-database folks. Very sophisticated. And they manage the relationship. We then bring in all the management under them. And that's -- we have referenced that yesterday with one of our major seasonal accounts this first quarter where we just brought Dotomi into that mix. But the person running that is doing all Affiliate, all media. Eventually, we'll bring the technology in there as well. And so, the customer is literally working with one person and touching multiple aspects of the marketing plan. So anyway, that would continued to refine along that line.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

Near term, long-term, are you going to start by selling Dotomi customers onto the CJ platform or CJ onto Dotomi? And how do you think about that near-term, long-term?

John A. Giuliani

Yes. So initially, we thought it would be we'd sell CJ customers Dotomi. What we realized is they're just different areas of the company. What we've pivoted to is selling Affiliate into our Dotomi CRM customers because we're generally at a higher level, at least from an operational standpoint. But we think that is the critical one. On both of those, because there's a large installed base, we will sell tag management through that. We think -- and we look at tag management as a almost 100% service for our customers. I don't -- for a lot of our customers, I don't think I'll make money on it. And what I've told them -- I don't think I should, I just want to -- you can't -- literally, you can't possibly vet 12 of these guys and hope you made the right decision. And so -- and worry about funding and all the other things that we already went through it at Dotomi and all of the Greystripe we've already grown up. So that one will be sold by both of those installed bases.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

And so from an organizational alignment perspective, you've kind of aligned the company to -- or you're in a process of aligning the company to drive deeper client penetration, can you help us understand where you are in that process?

John A. Giuliani

We're early stages. So we've got anecdotes where it's gone faster. We've got -- we brought some companies in. I think partly, we are now getting our office configuration. So we have major offices in New York, San Francisco, Chicago and Southern California. So we've just consolidated our San Francisco office so that our CRM folks are now all operating out of the San Francisco office along with Affiliate, along with Technology. But getting our internal organization aligned is the starting point because then once you have the resources dedicated to each account in the same facility, you start to foster the cooperation that you're wanting to have, and ultimately, the reporting relationships. But it's going to be a series of steps. So we're in the early stages of it. I think the business development was the easiest one, frankly, to signal to the market, to signal internally what we're doing because we've got a lot of muscle memory of running our business in a certain way and so we needed some very pronounced approaches. I announced yesterday about the media operations. That will be within the next several weeks, will be fully operational underneath one media group. And so those are parts that start to bring clients together too because the account management and salespeople will revolve around those as well. So that's -- everything we're doing is trying to put it in motion. But again, I would say early stages, but we want to be intelligent about how we transform the company. Our investors want us to see -- and I want to see our growth. I don't want to see us take a couple of quarters off to transform the company and then get back to business. I'd rather keep growing it and do it intelligently.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So it's early in 2013, when you think about the year, where is investment focused? Are you where you need to be in terms of sales, headcount, engineering talent? What's the product roadmap for 2013?

John A. Giuliani

Yes. So you hit 2 of the big themes. We will -- there's 2 elements that I think are really important for ValueClick to be known for. We need to have a fantastic sales culture with a customer-centric approach. And I think I've said a few times, in the show we're creating, the star has got to be customer. And so, literally, in our internal graphics, I've got a star as the customers so we understand where that goes. So we have to really play hard on the sales end. More people, higher end, better training. So that's something we're working aggressively. I just authorized 2 more full-time, internal sales recruiters. We will probably expand that business development staff by 25% to 30% this year. And along with our existing, both customer development as well as the more I/O-driven kind of media folks, that will probably grow 25% to 30% or more. The other part of it, so if you look at we want to be really focused on the customer, customer culture and then sales-driven atmosphere, the other part of it is, we got lots of cool technology. We want to press harder on innovation. And so we will -- if I find great engineers or great sales people, I say hire them. And I prefer to have better, and if there's any engineers listening, come on over, we've got a great environment. I don't throw money around, but we'll pay up for productivity. So that sort of standing. Give me good engineers, good sales talent, I'll hire them. Before I got here today, I just authorized 5 hires in Chicago, 2 of them are engineers, 1 of them a salesperson. We're going to press hard on those areas. I think you'll also see us from more of a product line standpoint. Hard on mobile. And the interconnectivity of devices. We think we got a lead there. We want to press really hard on that. We think the ability to the identify multiple devices to the same user and tie that, the purchase history, on all channels, we think it's a real winner and we think it's a unique -- really, a unique approach to the market. We're going to go heavy on that. And I think that woven throughout whatever we do, we're going to heavy-up on personalization. So we think video's a big area for us. I want to press hard on getting more of the personalization. We've got the data sets, we can tie that to it. There's a little bit more technical challenge to get all that right, but we're working on that. And I'll continue to invest in our in-house studio. It's roughly 35 or 40 people now. It's one of the things that sets us off from the technology-based creative optimizers that we have -- that data, sort of the technology-based is sort of the science. We have the art and the science because we have human beings, creative people that are great, creative people. So that's another area we'll invest heavily in.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So speaking of mobile, there seems to still be a big supply-demand imbalance in the market. There's a lot of supplies of inventory and demand isn't really there yet. What needs to happen to reduce the friction in that market?

John A. Giuliani

Yes. So some of it is determining which inventory's available and what's the value of that? Because not all -- like on the broader online, not all inventory has the same value. And so we have to get through -- the industry has to get through that sort of the natural market pricing and value equation of that. So that may be through the exchanges and real-time bidding. But more so, I think there's some evolution that has to happen as there is, what's the value and how do I tie it back? The value can't be extracted really until you start making it accountable. Largely, there's been -- so the early days of mobile have been largely people testing and driving into it and not really knowing metrics. And maybe going back to online metrics, but if you look at the metrics that were done -- used online 10 years ago, I would argue they had needed change. They don't always -- they haven't always kept up, but they should. And so what you have though, like in early days of online, is lots of people going into it, testing, knowing they need a mobile strategy, right? So you put stuff out in mobile, and not necessarily knowing what the accountability and what the value is going to be. I think that has to work its way through so that you can start to ferret out, what's the inventory that's valuable and how do I get access to that?

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So in terms of being able to appropriately value that inventory, is that a data issue still on mobile?

John A. Giuliani

It's a data issue. There's tying it back to other marketing efforts. And if you look at mobile, in isolation, it's going to be a lot more difficult to comprehend the value of that impression. So what we -- now, I'll go to my little ValueClick commercial, that's why we want to tie devices together. Because the fact is, media is consumed in conjunction with other media. And so what you really want to be smart of is, how does it work together? And I think, again, on the Dotomi side, I've said, we naturally calibrate that. Because we don't sell separate I/Os for mobile or tablet or mini tablet or whatever, we -- or frankly for laptop or desktop. We sell the campaign and we follow the consumer where they're consuming media. And the key thing is, can I use the same centralized profile to inform the creative and communication choices in all those, and then can I tie it back to their actual behavior? Because if you don't do that, then you have a smartphone program, a mini tablet program. You have Samsung versus an Apple. You can get really crazy. But when you sort of step back and go, it's all device connectivity is the focus, that's the way you're going to get the real value. Because media mix is more important than just media strict bucket attribution, in my opinion.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So earlier in the conference, we had a panel on ad tech, and 2 of the takeaways from the panel was that catalyst for ad tech and programmatic buying are, one, brand advertisers increasingly embracing this as a channel. And then two, big players like Facebook, entering this space with the Facebook Exchange. So my 2 questions are, one, in terms of brand advertisers, what's changed that's made them now start to allocate more budget towards the programmatic channel? And then, on the Facebook side of things, are you participating in the Facebook Exchange and what's your early read on it?

John A. Giuliani

Yes. So I'll take the last question first. We are testing with them. We have contracted for the Exchange. We're working -- we've been accessing inventory through other folks for testing purposes. We don't -- I mentioned this yesterday on the phone, we don't have a huge demand from our customers. There's some; there's intrigue. It comes with some -- there's some other issues that it comes it. So they have to give up some stuff. The customers have to give their creative and give up their customers. And so when they get exposed of that, there's a little bit more hesitancy. But we're sort of agnostic if they want to do that. And for us, it's more inventory and I'd look at inventory is does it give me unique reach? What's the performance? What's the price? Blend it all in together. To me, I sort of don't care what the banner, if it's Facebook or some other banner, it's inventory and how does it fit into my overall mix on those areas. So we'll use it. We continue to use it. Some businesses that works better than others. It's a fairly efficient media. But I don't think -- I think there's some limitations. Right now, I think they're working hard to expand those. So we'll be close to it. And like I said, I never get too excited on any form of media because I don't want any of my media buyers to get too crazy about it or my salespeople. Because at the end -- again, the final analysis is how much do we drive incrementally for our customers? And sometimes they care exactly where it goes. Most of the time, as long as it's not harming their brand, they just care about: can you get me the pressure, can you get me the consumer to buy? So that's how we look at that. As far as the programmatic and branding, I think there's just -- the tools are getting more -- are forming so that -- along with the demand side that's been pent up for some of the brand, to get over. Because I think we've all recognized, for a long time, that there's enough branding coming -- the branding part of media hasn't come over as fast as it could have. And it's been largely the emphasis online has been DR, direct response. And so we're bridging that. I think being able to think about buying segments and audience selection starts to fit from a branding standpoint. And so I think that's why they go there. I think there's some other issues we'll have to deal with because it won't be as clean as they do off-line. But I think that's probably where it leads them. Where they can start to at least feel like they're getting targeted.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So we'll have some time for questions from the audience. So if you have a question, please raise your hand. There's mics roaming around.

Unknown Analyst

Could you -- programmatic buying is a term I've heard like 12 times in the last couple of days. And you said you like describing things simply as if it was to your mother. So could you describe programmatic buying, specifically in how where you guys sit on that transaction? Buy, sell, trading desk, all that other fun stuff. And then second question, as mobile becomes a bigger kind of traffic driver, does that affect your business whether at Dotomi or more broadly speaking, with the lack of cookies and stuff like that. Does that affect your business in any way?

John A. Giuliani

Yes. So the programmatic's sort of interesting. And John, our CFO, is here, because wherever [ph] I've heard it, it's something like, "I don't even know what -- what does that really mean?" I hear it people throwing that all around. And so I believe it means -- I believe what the industry means is that it's something other than human beings deciding how to buy. So whether that's technology, algorithmic or some type of automated access to the inventory. It's like a lot of things. It's technology is doing -- can do certain things. I think my view on it is that it's a way to access inventory. But all this still has to have art and science. So I like it when people go hard on technology only, so they can be frictionless or self-serviced. Because I'm on the services business, so I'm betting on people. And so when I hear self-service, I tell clients, "You can just chalk that up to no-service." So you decide if you want to do it all or do you want some help doing it. And so technology is great, but I don't think any of us are going to be flying that new Dreamliner around. And we're probably not the ones that are going to fix the batteries on that. So we need -- even something that's highly-technical like that needs operators. And so that's how we sort of break that out. And so the art and the science. On the mobile side, I think the mobile presents an awesome opportunity for us as well as the industry. But I think like to my earlier comments, for us, I don't see it as a mobile as a standalone. I think it would sort of be like if you said, this is our laptop strategy. And that's how I get simple again. I go back and say, "What I care about is, if I know who you are anonymously and I want to talk to you." What I'm trying to get marketers to understand is if you consume your media on a mobile device or a smart phone, then that's where I want to talk to you. But if you also go out in the lobby, get it on your iPad so can you do a little bit more work, I also want to have that same profile talk to you there. Now, that's considered mobile, some people call it -- some people think that's sort of the tablet has a different positioning. It doesn't matter to me. I want to have consistency. But when you go back to the office, you might have a laptop or a desktop and I still want to be able to talk to you there. And so when I think about that, that interconnectivity of the devices, that helps us get over that sort of lack of cookies at the mobile specific as you mentioned. And what I really care about is, can I tie that whole campaign back to your profile and can I measure it so that my marketer understands I got all this value and the marketer doesn't have to go, give me my smartphone program and here's my -- give me my laptop, give my -- all those different ones, and let nature work and calibrate based on how you consume media. That help?

Unknown Analyst

How do you buy [indiscernible] when I step out from my office [indiscernible] on my tablet?

John A. Giuliani

Yes. So we connect -- that's our -- I wish I could tell you the technical way we do it. But that's where our big breakthrough, the interconnectivity device is to the profile. Because we take that data off initially and tie it to an off-line profile, we then can tally [ph] devices to that. And then they tie that device back to their device recognition. If it's online, it's a cookie base, whether it's first party or third-party, we have both of those, that works. Or through some other different type of device recognition that they've worked on. I can't give you the details of how the tech guys do it because they'll slap me around, but that's how they do it. But it's all central to tying it in to that off-line profile.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

So John, your business stores an awful lot of free cash, how do you think about capital allocation? You have a buy back authorization. What's your focus now?

John A. Giuliani

Yes, so I think we've authorized $100 million buyback, I think we have roughly north of $90 million still. I think last year -- how much did we spend last year?

Unknown Executive

$110 million.

John A. Giuliani

$110 million, right. So -- and not all of our free cash flow, but a fair portion of it last year on buying back stock. I think we will -- we're continuing the authorization, I've been very bullish. I came in sort of just from a personal standpoint, when we did the deal with ValueClick they valued -- we took stock in the deal. So all my Dotomi stock converted to ValueClick, which aside from a charitable donation, I've never sold any of that. And that deal was done at $18. And so what I thought is -- I thought it was cheap then, so I'm not one to sort of mince words about that. I still think it's a valuable, or an attractive stock. And so, we'll continue to buy back if we don't have other uses for the cash. The one thing we have said is, we're not on the acquisition trail for growth. We don't need it, we have an organic growth play and we're going to fully exploit that. We think that's the best thing for our shareholders. That being said, we get presented with opportunities all the time. If they fit in one of the key areas that would help us get unique reach or work on mobile video or allow me to personalize something, that might be something we'd be -- we'd attract [ph] to. But that being said, we're not looking at anything currently. And so the uses of the cash will be finish off -- we're almost done paying down our debt. We think we're -- I think we're actually net positive through January. So I think you should think about us as investing in the business and we will venture back into our stock when we feel comfortable with it.

Debra Schwartz - Goldman Sachs Group Inc., Research Division

Great. With that, we are out of time. John, thank you so much for joining us.

John Pitstick

Thank you.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!