Advent Software Inc. Q2 2008 Earnings Call Transcript

Jul.29.08 | About: Advent Software, (ADVS)

Advent Software Inc. (NASDAQ:ADVS)

Q2 2008 Earnings Call

July 29, 2008 5:00 pm ET

Executives

Heidi Flaherty - VP of Financial Planning and IR

Stephanie DiMarco - CEO

Jim Cox - Principal Accounting Officer

Analysts

Andrey Glukhov - Brean Murray

Tim Fox - Deutsche Bank

David Scharf - JMP Securities

Tom McCrohan - Janney Montgomery

Jon Maietta - Needham & Company

Operator

At this time, I would like to welcome everyone to the Advent's second quarter 2008 conference call. (Operator Instructions).

Thank you. Ms. Flaherty, you may begin your conference.

Heidi Flaherty

Thanks, Tasha. Good afternoon everyone. I am Heidi Flaherty, Vice President of Financial Planning and Investor Relations. Thank you for joining us today on Advent's second quarter 2008 earnings call.

Hosting our call today is Stephanie DiMarco, Advent's Chief Executive Officer, as you likely read in our press release our Chief Financial Officer, Craig Collins, has left Advent to spend more time with his family and pursue other opportunities. Craig has made himself available to help as needed during any transition.

For today's call, Stephanie will review the financials and recent business highlights. After which we will open up the call for your questions. Jim Cox, our Principal Accounting Officer is also here with us today to participate in the question-and-answer session following our prepared remarks.

Many of you have already met Jim, at our analyst day last September or at other investor activities this year. On our Investor Relations homepage, we have provided the presentation that summarizes our second quarter results and an updated summary of trended operating metrics disclosed from 2005 through to second quarter of 2008. We hope these two documents will assist you in better understanding our business.

As a reminder, we include non-GAAP financial measures in our disclosures. These non-GAAP financial results are not meant to be considered in isolation or as a substitute, the results prepared on a GAAP basis.

Please refer to the tables entitled reconciliation of selected GAAP measures to non-GAAP measures in our earnings release which is filed with the SEC on Form 8-K and available on our website for reconciliation of GAAP to non-GAAP financial measures.

Most of you participating in this call are aware of the regulations regarding forward-looking statements. Accordingly, we would like to note that during the course of this conference call, we will make forward-looking statements regarding future events or the future performance of the company including estimated future operating results, international growth, domestic demand, market acceptance of our products, and new product releases, and the general momentum of the business.

We wish to caution you that such statements are just predictions that involve risks and uncertainties, and that actual events or results could differ materially. We discussed a number of these business risks in detail in the company's SEC reports, including our quarterly report on Form 10-Q and our 2007 annual report on Form 10-K, and any forward-looking statements must be considered in the context as such risks and uncertainties.

The company disclaims any intention or obligation to publicly update or revise any forward-looking statements whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

I will now turn the call over to Stephanie.

Stephanie DiMarco

Thanks, Heidi and welcome everyone. Thank you for joining us this afternoon. I'm very pleased to report that Advent had an outstanding second quarter. Revenue was a record $64 million, up 22% from the previous year, and operating cash flow was $25.8 million.

Advent's term license contract value was $21.2 million, which represents 15% growth over the same period last year. I'll talk in greater detail about our second quarter accomplishments later in the call, but first let me briefly review the financials.

The strength of our second quarter results speaks to the maturation of our recurring revenue model. Today 80% of revenue is recurring in nature. Operating cash flow is growing at 40% on a trailing four quarters basis and deferred revenue is a record $130.6 million.

There are four areas I'll cover today. Revenue, expenses, profitability and key balance sheet items and guidance for the third quarter and full year 2008. Once again, the sales performance was strong across all of our products and geographies. Term license maintenance and recurring revenue was $50.8 million, up 21% over the same period last year.

Perpetual license revenue of $5.2 million was down 8% from the second quarter of last year as expected given our transition to term licensing. Assets under administration revenue from perpetual licenses included in this caption were $1.4 million for the quarter, essentially flat with the same period last year.

Professional services and other revenues, $7.9 million was up 70% from the second quarter last year, reflecting an increased volume of term license sales and the investment we’ve made in adding headcount to our professional services business. As we have mentioned in prior calls, we defer all term license and professional services revenue until we substantially completed the implementation services.

This adjustment fluctuates considerably from quarter-to-quarter, depending on the project time lines. In the second quarter we deferred $3.2 million for term license contracts not yet implemented, this compares to $1.4 million deferred in the second quarter of 2007.

Associated expense deferred in the quarter was $1 million, which was essentially flat with the combined expense deferral in the second quarter of 2007. Non-GAAP operating margin reduction due to these deferrals was 3 points. Cost of revenue for the second quarter was $20.9 million, up 30% over the same period last year.

Total Q2 operating expense was $38.1 million, up 14% from the same period last year. Interest and other income for the second quarter was $3.6 million, down $300,000 from the same period last year. The majority of other income in both periods was related to gains from investments.

We’ve recorded a tax provision of $1.3 million in the second quarter, which equates to an effective tax-rate of 14.7%. This rate is lower than our guidance range for the full year, because we were able to utilize previously reserved capital loss carryovers, and to recognize tax credits that were finalized in this current quarter.

Although the effective tax rate in a particular quarter may fluctuate outside of the guidance range, we believe our 2008 effective tax rate will be in the range of 30% to 35%. We've recorded net income of $7.4 million, up 44%, over the second quarter of 2007.

Diluted earnings per share were $0.26 for the second quarter, compared to $0.18, in the same period last year. On a non-GAAP basis, operating income was $9.4 million, up 27% over the second quarter of 2007, and diluted earnings per share were $0.22 for the second quarter, compared to $0.18 in the same period last year.

Turning to the balance sheet, as of June 30th, we had $82.4 million in cash, cash equivalents and short-term investments, compared with $34.1 million one year ago. Other balance sheet highlights were as follows: Accounts receivable totaled $41.4 million and our DSO was 59 days, down eight days, from the second quarter last year, and down seven days from last quarter due to strong accounts receivable collections during the quarter.

Net capital additions in the second quarter were $7.3 million, up from $2.7 million from the second quarter last year and up from $2.5 million in the first quarter. This spending reflects our planned investments in our corporate headquarters in San Francisco. For the third quarter, we expect capital expenditures to be lower as this build out project nears completion.

Total deferred revenue was $130.6 million, up $34.9 million from the second quarter last year and up $7.8 million from the first quarter. For the compensation of deferred revenues since 2005, please see slide 10 of our earnings presentation available on our website.

Operating cash flow for the quarter was very strong at $25.8 million, up 115% over the same period last year. We believe this growth metric is more useful when viewed on a trailing four-quarter basis. Using this metric, which is included on the trended disclosures report on our website, operating cash flow growth is 40%.

Operating cash flow was higher in the second quarter, due to strong accounts receivable collections as evidenced by the seven-day decrease in DSOs, compared to the first quarter of 2008.

Turning to Q3, and the full-year 2008, I'll be making some forward-looking statements. So I'll remind you of the Safe Harbor statement in Heidi's opening remarks. For Q3 '08 we expect revenue to be between $64 million and $66 million. For the full year 2008, we are again, raising the revenue and profitability guidance.

Revenue for 2008 is projected to be $254 million to 258 million, which reflects growth of 18% to 20% over 2007; up from the 15% to 18% growth rate we projected last quarter. For the full year, 2008, we estimate that non-GAAP operating margin will be between 15% and 17% of revenue which we've also raised from last quarter's range of 14% to 17% of revenue. This yield is a non-GAAP diluted EPS range of $0.91 to $1.03 per share.

On a GAAP basis, diluted EPS is estimated to be between $0.58 and $0.70 per share. We're also raising full year guidance for operating cash flow to a range of $70 million to $73 million, although operating cash flow could be seasonally weaker in the third quarter. We expect to end the year in the guidance range.

We believe our 2008 effective tax rate will be in the range of 30% to 35%. The expected tax rate used for non-GAAP calculations is 35%. We don't expect to pay cash taxes in 2008, as we continue to benefit from our deferred tax assets. In summary, we're extremely pleased with our second quarter results, and the momentum it gives us for the year.

Let me now turn to some of the business highlights for the quarter. One of the real highlights of Advent's second quarter was the agreement we announced last month with TIAA-CREF, the largest provider of retirement services in the academic, medical and cultural fields. 403(b) plans the nonprofit industries equivalent of the 401(k) plan face major new regulatory challenges at the start of next year. And to help them comply with the new rules TIAA-CREF selected Advent to build an innovative new service.

It's a tremendous opportunity for Advent. It gives us the chance to leverage our expertise and infrastructure in an adjacent market. TIAA reached out us to because of our proven reputation for solving similar compliance challenges in the financial services industry. I want to point out that this contract is not reflected in our term license contract value of $21.2 million this quarter.

TIAA-CREF will be a data subscription revenue item as opposed to term license revenue and will be reflected in the reoccurring revenue section of our income statement. The value of this five-year agreement is significantly higher than the total term contract license value reported this quarter.

Launch of the service is subject to certain milestones and acceptance, so we do not expect revenue to be recognized until Q4 2009, or early 2010. We expect to see deferred revenues related to this contract growth starting in the current quarter until we begin to recognize revenues.

The revenue from this contract, combined with the hosted services contract we announced in the fourth quarter with Fidelity Investments are expected to contribute at least an additional $8 million to $10 million per year in recurring revenue by the year 2010. We see excellent momentum in hosted services and are building a very attractive future revenue stream.

The TIAA-CREF opportunities rooted in a compliance challenge and helping our clients achieve compliance in an ever-changing regulatory climate is one of the many reasons that Advent continues to thrive even in these challenges times.

Advent Rules Manager, the compliance product we launched at the end of last year, has elevated our trade order management offering to a new level, and is allowing us to compete for a larger more complex order management business, where compliance is a key requirement.

Work is also underway for the next release of Moxy, which will focus on enhancements that will extend the benefits of the product from that trader to the portfolio manager. The trade order management space is ripe with opportunity for Advent to continue to grow our leadership in the years ahead.

Turning to APX and Geneva, both products logged very strong second quarter results. We sold a second quarter record of 25 APX contracts, bringing the total number of contracts for APX sold to 237 worldwide.

We sold 12 new Geneva contracts in the quarter, the largest of which is worth $2.3 million over five years. The 12 new Geneva contracts bring the total number of Geneva contracts sold to-date to 176 worldwide. We're also seeing excellent demand for Advent revenue center, our automated billing and revenue management product, which now has over 50 clients.

The success we're seeing with our two newest products, Advent Revenue Center and Advent Rules Manager are excellent examples of our growth strategy at work, building innovative products and services and selling them back into our large customer base with mission-critical systems that enable them to be more efficient.

Another tenant of our growth strategy is international expansion. We're very pleased with the momentum of the business in the EMEA region where we continue to see a large and growing opportunity.

In the second quarter, our international business generated 14% of our revenue, and in the first half of this year, international revenue grew 47% over the first half of 2007. We hosted our 8th annual EMEA conference in Madrid in the second quarter, which was our largest and most successful EMEA conference to-date. We had customers from 16 countries in attendance. It was truly an international conference.

The momentum we see in EMEA and in the Middle East in particular is very exciting. We now have more than 20 clients in the Gulf Corporation Council or GCC region and a healthy pipeline of prospects.

On an organizational note, as Heidi mentioned, Craig Collins has left Advent and we wish him all of the best in his new pursuits. I'm assuming responsibility for the finance organization. We have a terrific team, and I'm particularly pleased to have Jim Cox step in to the role of Principal Accounting Officer. Jim has been with Advent for several years, serving as Vice President and Corporate Controller.

As Heidi also noted, Jim is here today for today's call, and will be available during the Q&A. Overall, it was an outstanding quarter for Advent, and we continue to be very optimistic about our business. Our products are essential solutions that are at the heart of operations for asset management firms of all sizes.

We're in the midst of another strong year with 80% recurring revenue, operating cash flow growing 40% on a four-quarter trailing basis and term license contract value growing 55% on a four-quarter trailing basis.

Additionally, we're investing 20% of revenues on R&D, so we can continue to deliver new solutions that improve the operational efficiency of the investment management business for many years to come. Global assets under management are predicted to grow by more than 20% in the next four years. And we believe Advent is well-positioned to benefit from that opportunity.

Once again, thank you for joining us. And now I would like to open up the call for questions.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Andrey Glukhov with Brean Murray.

Andrey Glukhov - Brean Murray

Thanks. Congratulations on a very strong quarter, guys. Stephanie, as far as the TIAA contract is concerned maybe can you talk us through the cash flow ramifications of that, when do you guys start collecting cash?

Stephanie DiMarco

Well first of all, we typically do not comment on individual contracts. And TIAA has given us permission to talk about it to this extent. But I think kind of beyond that, we don't want to get in to too much detail, but we will be collecting cash beginning with the contract signing. And you'll start to see that impact in the deferred revenues.

Andrey Glukhov - Brean Murray

Okay, that helps. Separately, if we look at I guess one of the initiatives that you put forward is to beef up the services organization, and sort of decrease the backlog of the services work. Maybe give us an update, how well are you progressing towards those targets? What should we expect in services hiring going forward?

Stephanie DiMarco

We'll continue to invest in services headcount and it really is a function, not just of cleaning our backlog, but we're selling a lot of new business. So we need to continue to invest to keep pace with the rate of growth in the business, so I expect that to be kind of steady as she goes for the foreseeable future.

Andrey Glukhov - Brean Murray

Okay. And lastly, sort of without forcing you into the guidance on bookings, last quarter you guys defied the traditional sort of software seasonality and your Q3 bookings were quite a bit larger than Q2.

Maybe directionally, should we think that that some of that we could see this year, or do you think that this year will conform closer to kind of historical patterns?

Stephanie DiMarco

Well, we aren't guiding on individual bookings for the quarter, because it is so lumpy. And we had such a strong start to the year that I would expect that helps Q3 to be more seasonally slow. We had a slower start to the year last year, and then Q3 was stronger.

Andrey Glukhov - Brean Murray

Okay. Thanks. Congrats on the quarter again.

Operator

Your next question comes from the line of Tim Fox with Deutsche Bank.

Tim Fox - Deutsche Bank

Hi, thank you. Good afternoon and I'll put my, congrats in too. First question I had was just a little bit of a housekeeping question. The non-GAAP EPS number that you reported, just to be clear, was that on the 15% 14% tax-rate, or is that taxed at the 35% non-GAAP tax rate?

Jim Cox

That was at 35%.

Tim Fox - Deutsche Bank

That's at 35. Okay, good. So that's an apples-to-apples comparison. Second question, I mean just the obvious question. You are continuing to put up some phenomenal results, particularly on the new contract signings. Any change at all in the environments not being reflected here in the results.

But are you seeing any additional pressures a lot of articles in the newspaper about hedge fund formation and so on. But obvious concern with some investors out there, but if you just comment a little bit about the demand environment and any directional changes that would be helpful.

Stephanie DiMarco

Okay. It certainly is a very difficult environment and there are a lot of end customers that we sell to that are having difficult times, particularly people on the sell side. And it hasn't been reflected in our results.

And I think that's largely, because we sell to multiple geographies and not all geographies are having the challenges that we are seeing in the US, and we also sell multiple products to multiple types of customers.

So certain customers are very healthy now. There has been a lot of hedge fund formation quite recently in areas that are credit-focused and around distressed debt, so we're benefiting a lot from that particular trend of those new funds being formed to specifically manage a lot of the distressed debt that is out there, so that's an opportunity.

So to-date what we've seen is this counter balancing, where there's some pockets of slowness, certain areas of the US sell side and certain segments on the buy side are more cautious.

We're seeing more delay in decision making, particularly around purchases that are discretionary. People say we can delay these purchases for another couple of quarters till we see what happens to the markets, and in to our fee income as a result of that.

So that counter balancing, we are benefiting from this portfolio effect. And so on balance, we see more demand than slowdown and I would expect that to continue to be the case, because there's a lot of pockets of opportunity that we are really benefiting from now as a result of having so greatly expanded our product portfolio over the last couple of years.

Tim Fox - Deutsche Bank

Great, that's helpful. And then lastly, if I may, you at times spoke of the upside that you had to some of your new contract bookings, I'm just wondering if you could talk a little bit about what kind of upside you are seeing in your migrations? Are they at the same levels that they were last year, or has the environment pressured that in anyway?

Stephanie DiMarco

Actually that's the number that keeps trending up, and I think the last number we quoted Heidi was around 70%, 78% uplift on APX contracts.

Heidi Flaherty

In excess of, yeah.

Stephanie DiMarco

In excess of? And so it continues to trend up.

Tim Fox - Deutsche Bank

Great. That's all for me. Thank you.

Operator

Your next question comes from the line of David Scharf with JMP Securities.

David Scharf - JMP Securities

Stephanie, can you talk a little bit more about, both the Fidelity and TIAA-CREF deals? Give us a sense for the actual backlog, or what's in the works in terms of booking more of these types of accounts.

I mean these are obviously two very large contracts and certainly not going to put you on the spot in terms of naming names, but are these the type of transactions we should become more expectant of seeing in future quarters?

Stephanie DiMarco

I think it's fair to say that we have a lot of digestion to do around both of these contracts, because both of them do require a fair amount of deliverables. So I wouldn't count on another big one. In the short-term, we have a lot of work to do to be successful with these contracts, but I think it speaks to a couple of things that we really have a proven reputation to being able to deliver on these kinds of projects.

So I think increasingly, large firms look to us as a provider that they can rely on. So overtime, we want to be able to take these kinds of development contracts as we can, as we can handle them. So I can't predict when the next one will be. But, we sure do like them when they come in.

David Scharf - JMP Securities

Okay. And along those lines, are you satisfied with the investment in headcount professional services staff in advance of starting to deliver on those deliverables?

Stephanie DiMarco

Yeah, actually -- both of those contracts probably put less pressure on professional services, or traditional professional services organizations. It's more of our managed services group. So we're adding headcount in both areas. So, yeah, we're comfortable in our ability to deliver.

David Scharf - JMP Securities

Okay, and lastly on the tax front. Can you just provide us with a refresher on just how long we would probably expect Advent to not be a cash tax payer? I know you mentioned 2008 obviously, but how many more years do those allowances run?

Jim Cox

I think, we feel definitely comfortable with 2008, 2009 and into 2010.

David Scharf - JMP Securities

Okay, great. Thank you very much.

Operator

Your next question comes from the line of Tom McCrohan with Janney Montgomery.

Tom McCrohan - Janney Montgomery

For the quarter, fantastic.

Stephanie DiMarco

Thanks, Tom.

Tom McCrohan - Janney Montgomery

I'm just trying to get a better feel for where you're getting leverage on the operating margin expansion. On last investor day Graham Smith, your prior CFO, kind of laid out for us, on some of the challenges, or some of the issues with growing as fast as you're growing, adding headcount and pressure on the margins, particularly in professional services. I know there are some accounting nuances to that.

But you're still growing bookings at incredible pace and you're getting the margin expansion. So can you kind of just talk a little bit to, conceptually are you seeing the margin expansion because you are going live on some of these implementations that were kind of in the queue. And so there's some stuff coming out of the default backlog or is there something else going on that will help kind of explain the margin growth that we're seeing this year?

Stephanie DiMarco

No, that's primarily it, and it's what we have modeled, that it would continue to get better, and it wouldn't improve dramatically overnight. That we would see kind of continuous improvement in the margin as more of these implementations goes live.

And the nuance around the professional services accounting is that we end up amortizing those revenues for the implementations over the life of the contract. So effectively, you get kind of a reoccurring revenue element overtime of the layering of all of those amortizations of the reoccurring revenue. And so that as you move further down the timescale, you get a margin benefit from that.

Tom McCrohan - Janney Montgomery

Yeah, so when you go live, you don't just put the whole amount you amortize whatever the life the contract is worthy?

Stephanie DiMarco

Right.

Tom McCrohan - Janney Montgomery

So in a kind of a weird way, you did have kind of a couple of quarters and that you're saying that's its going to happen in a couple of quarters of slow bookings growth relative to the pace you're growing. You should actually see margins really expand perhaps you're going to have more stuff on a net basis, you're going to have deferred revenues, the $130 million this quarter actually probably go down because more stuffs coming out than going in. Is that kind of the way to think about it?

Jim Cox

You could see that.

Tom McCrohan - Janney Montgomery

So in a world where you are not growing at all, what is the -- what's kind of the normalized margins for Advent Software when bookings growth returns down to 10% rates or whatever you think is reasonable number to use?

Stephanie DiMarco

Well, I think there are too many elements for me to indicate kind of a normalized margin. I mean, our guidance range in our long-term model is 25% operating margin. So I think I'm very comfortable with this company achieving those rates. And we have a lot of levers that we can pull. One of the biggest impacts on operating margin is the rate at which we invest in research and development and that's something that we control virtually 100%.

So we make some very deliberate decisions about contribution relative to future investments and we're looking to increase margin overtime, but also be sure that we're making investments for the future. There's a lot of operating leverage in the model.

Tom McCrohan - Janney Montgomery

For sure. And the investment you are making, Stephanie, you are still planning to rollout new versions of Geneva and Portfolio Exchange this year is that still…?

Stephanie DiMarco

Yes.

Tom McCrohan - Janney Montgomery

Great, and a couple of housekeeping items. There was something on the non-GAAP reconciliation for the quarter called equity investment adjustment. What is that?

Stephanie DiMarco

Tom, we had a gain, it was a non-operating gain. In April of 2007, we sold our LatentZero investment. So we recorded a gain in Q2 of 2007. There were two subsequent contingent payments associated with that. We realized the first of those two payments in Q2 of 2008. So we back that out for non-GAAP.

Tom McCrohan - Janney Montgomery

Great, fair enough. Thanks very much.

Stephanie DiMarco

All right. Thanks, Tom.

Operator

Your next question comes from the line of Jon Maietta with Needham & Company.

Jon Maietta - Needham & Company

Thank you very much. Yes Stephanie the first question I had was when you are selling into international markets, particularly in the Middle East are there certain products that typically lend themselves well to enter those markets better than others or?

Stephanie DiMarco

Yeah.

Jon Maietta - Needham & Company

Okay.

Stephanie DiMarco

Yeah. And then the Middle East market is very much of wealth management market. And APX and Moxy, and that suite of products sells very successfully there, we've recently opened an office in Hong Kong and are building a pipeline in Hong Kong. The Hong Kong market looks a lot like the London market.

So our product entry point in to that market is Geneva, because there's a lot of fund service providers and hedge funds. So definitely every market has its kind of unique nuances, the US and London have a little bit of both.

Jon Maietta - Needham & Company

Got it, okay. And then, given all of the work that you did for the product line in 2007, could you kind of talk about win rates this year versus last year as best you can? Have you seen them increase, and if so, I don't know if I want to ask you to pinpoint of the percentage increase, but if you could kind of qualitatively talk about that?

Stephanie DiMarco

Well, I think your win rates probably do very depending on what segment we're selling in to, what product we’re selling, who the competition is. But historically our win rates have been very high and I don't have any reason to think that we have seen any deterioration in our win rate.

I actually think one of the benefits of a tougher economic climate is that there's a little bit of a fight to safety and quality that goes on with buyers, where they want to buy from a company that's public, very transparent about their balance sheet.

They are going to be around, and Advent certainly fits that bill, so I think we benefit, we probably are getting slightly higher win rates. Maybe the total number of transactions could even be down. I'm speculating on that, but I think our win rates could be helped in these kinds of market conditions.

Jon Maietta - Needham & Company

Got it. Thanks very much.

Operator

That's all of the time that we have today. Are there any closing remarks?

Stephanie DiMarco

No. Again, thank you, everyone for joining us, and we look forward to speaking with you again next quarter.

Operator

This concludes today's conference call. You may now disconnect.

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!