Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)

Procera Networks (NASDAQ:PKT)

Q3 2012 Earnings Call

November 06, 2012 4:30 pm ET

Executives

Todd Kehrli - Co-founder and Executive Vice President

James F. Brear - Chief Executive Officer, President and Director

Charles Constanti - Chief Financial Officer, Principal Accounting Officer, Vice President, Secretary and Treasurer

Analysts

Alex Kurtz - Sterne Agee & Leach Inc., Research Division

Jason Ader - William Blair & Company L.L.C., Research Division

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

Catharine Anne Trebnick - Northland Capital Markets, Research Division

Brian Freckmann

Jeffrey Osher - Harvest Capital Strategies LLC

Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Procera Networks Third Quarter 2012 Financial Results Conference Call. [Operator Instructions] This conference is being recorded today, Tuesday, November 6, 2012.

At this time, I would like to turn the conference over to Todd Kehrli of the MKR Group. Please go ahead, sir.

Todd Kehrli

Thank you, operator. Good afternoon and welcome to Procera Network's Third Quarter 2012 Financial Results Conference Call. A press release was issued this afternoon detailing these results and may be accessed on the company's website at www.proceranetworks.com in the Investor Relations section. Speaking today will be Jim Brear, Procera's Chief Executive Officer; and Charles Constanti, Procera's Chief Financial Officer.

Before we begin, let me remind you that the following discussion, including responses to questions, will contain forward-looking statements, including statements relating to their expected demand for Procera Network's products and Procera's expectations for its growth in 2012. Such forward-looking statements is subject to a number of risks and uncertainties, including but not limited to risks related to the acceptance and adoption of Procera's products; the company's ability to service and update its products; lengthy sales cycles and lab and field trial delays by service providers; the company's dependence on a limited product line or dependence on key employees; its ability to compete in its industry with companies that are significantly larger and have greater resources; its ability to protect its intellectual property rights in the global market and its ability to manufacture product quickly enough to meet potential demand.

Additional risks and uncertainties are contained in the company's report on Form 10-K and subsequent reports filed with the SEC. These risks and uncertainties could cause actual results to differ materially from those projected in its forward-looking statements. And the company disclaims any intention or obligation to revise any forward-looking statement whether as a result of new information, future events or otherwise.

I will now turn the call over to Procera's CEO, Jim Brear. Go ahead, Jim?

James F. Brear

Thanks, and welcome, everyone. We are pleased to report another very strong quarter reflecting continued positive traction across all customer segments and geographies. Revenue for the third quarter was a record $16.1 million, a 32% increase over Q3 of last year. Revenue for the first 9 months was $43.1 million, a 50% increase year-over-year. For the third quarter, we achieved record gross margins of 72%, up 11 points from last year, reflecting a favorable mix of products and services. We also reported a record net income of $2.8 million or $0.14 per share and generated $1.6 million of cash from operations.

The market environment for our products continues to be strong. We continue to gain momentum with mobile carriers around the world. 45% of our revenue in the third quarter came from mobile customers. We now have over 30 mobile operators as customers around the world, which positions us as a leader in this growing segment. Our remaining revenue mix was 22% cable, 17% fixed and 16% higher education and enterprise. We have 11 new service provider wins during the quarter, including 1 cable, 5 fixed and 7 mobile. Five follow-on orders came from our existing Tier 1 customers.

Third quarter revenue comprised of 57% new customer revenue and the remainder came from follow-on revenue. We continue to expect about 50% of our total revenue in 2012 to come from follow-on orders and 50% to come from new business. We received 3 new Tier 1 wins, representing a major Western incumbent service provider, a major Asia-Pacific mobile operator and a Middle Eastern mobile operator, highlighting the benefits we are seeing from our investments to expand our geographic footprint. We are beginning to see a positive impact of our investment in global expansion that we began late last year.

On past calls, we mentioned the opportunity with mega carriers. I'm happy to report today that we have won initial orders from 2 of these mega carriers, representing significant expansion opportunities. Revenue from one of these wins was a major mobile operator in Asia and some of the revenue was recognized in Q3. Additionally, we were very pleased to announce yesterday an initial order with a large Western European incumbent Tier 1 operator. We're also excited to note that this new major win is for deployment of our PacketLogic 20K, which we introduced in the first quarter of this year.

The PacketLogic PL20K represents the industry's first intelligent policy enforcement platform that scales up to 320 gigabits per second in a single system. This deployment underscores the mega carriers requirement for high performance and throughput as they upgrade their backbone capabilities to 100 gigabit per second and requires significantly increased scale and performance. The PL20K has proven to be a unique value proposition to these carriers to differentiate Procera from the competition.

Interest in the PL20K continues to be strong. In addition to this major win, we also have a number of key Tier 1 operators trialing our solutions around the world. Our third new Tier 1 win is our first in the Middle East and was an initial order from a mobile operator. This win further demonstrates the progress we are making from our investments in geographic expansion. We are gaining traction in these new geographies that we have entered and we expect to see more wins from them in 2013.

We had an excellent quarter in higher education. During the quarter, we received a record 50 new higher education orders with higher education enterprise contributing approximately 16% of our total third quarter revenue. Trial activity remains strong and is balanced across all customer types and regions. We had 18 direct trials with Tier 1 service providers that are underway or plan to begin over the next 60 days.

Lastly, as we previously announced, we're ramping up our business development efforts and are building a pipeline of strategic technology partnerships with the goal of offering synergistic technology solutions as part of driving growth. And we expect these partnerships to materialize in the first half next year.

Before I talk about expectations for the remainder of 2012, let me turn the call over to Charles to review Q3 financials in more detail. Charles?

Charles Constanti

Thank you, Jim. The financial results reported today include both GAAP and non-GAAP financial measures. Our non-GAAP measures exclude the impacts of stock-based compensation and business development expenses. A reconciliation of the GAAP to non-GAAP measures is part of the financial tables posted with our earnings release. This is available at the Investor Relations section of our website at www.proceranetworks.com.

Total revenue for the third quarter was $16.1 million, up 32% from last year and up 10% from last quarter. Bookings for the third quarter was $16.3 million. Product revenue for the third quarter was $12.9 million, up 28% from last year. The year-over-year increase reflects a major win with a mobile carrier in Asia.

Support revenue continues to grow and is an important source of recurring revenue. Deferred revenue achieved a record level at nearly $10 million combining short- and long-term deferred revenue that is mostly from maintenance and support. Support revenue for the third quarter was $3.1 million, up 51% from the third quarter of last year and up 11% sequentially. The increase reflects continued expansion of the installed base of our products and ongoing support arrangements.

By geography, North America was 47% of revenue, APAC was 34% and EMEA was 19% of revenue. The gross margins for the third quarter was 72% compared to 61% from the third quarter of last year. Gross margins in the quarter reflect a greater-than-typical mix of software license sales, which compared with hardware and an increase in support revenue. The cost of support sales increased because we have hired additional employees for customer support and professional services, and we expect these costs to increase in Q4 with additional hires.

While the gross margin performance in Q3 demonstrates the potential performance of our business model, we are continuing to model our gross margins in the low- to mid-60s. Non-GAAP operating expenses in the third quarter were $8.1 million compared to $7.7 million in the preceding quarter, and $5 million in the third quarter of 2011. As we have scaled our business and invested for growth, operating expenses have increased in each classification of expense with increases in R&D, sales and marketing and G&A.

The increase in R&D reflects the cost of increased headcount and more costs related to testing equipment for new product introductions. Increased sales and marketing expense reflect the cost of new hires and higher commissions on higher revenues. The year-over-year increase in G&A expense reflects a greater use of professional services, including legal, contractor supporting the implementation of the new accounting system and the cost of additional hires.

Operating expenses are expected to grow sequentially in Q4 of 2012 and be greater than $9 million on a non-GAAP basis with additional hiring and a full quarter impact of hires in Q3. GAAP net income for the third quarter was $2.8 million, up from net income of $2 million in the third quarter of 2011. On a non-GAAP basis, net income for the third quarter was $3.6 million, up from non-GAAP net income of $2.5 million in the third quarter of 2011.

We generated $1.6 million of cash from operations in Q3. We generated cash from operation in each quarter of this year, while simultaneously investing for growth. We ended the quarter with $133 million of cash and short-term investments. We are pleased with the leverage of our business model and the progress we always made in scaling for growth.

With that, I'll turn the call back to Jim.

James F. Brear

Thank you, Charles. Now let's talk about what we can expect for the remainder of 2012. Our pipeline visibility remains strong, and our confidence is the strongest in the company's history. We are reiterating our 2012 annual revenue guidance of the full year growth of 40% or approximately $62 million of revenue for the year. We have begun to see our recent strategic investments in geographic expansion contribute to revenue growth, and we will continue and invest and scale up our team as we prepare for 2013. We continue to build out our footprint across all regions and are on track to finish the year with about 150 employees and contractors, up from 135 today.

The Procera team continues to do a fantastic job of creating and delivering the best technology in the industry, and we are expanding our team to position ourselves to deliver continued growth this year and in 2013 and beyond. I look forward to updating you on our progress after the fourth quarter.

We will now turn the call over to the operator to start the question-and-answer session of the call.[Operator Instructions] Our first question comes from the line of Alex Kurtz with Sterne Agee.

Question-and-Answer Session

Alex Kurtz - Sterne Agee & Leach Inc., Research Division

Nice to see the nice book-to-bill there. Charles, can you talk about the gross margin. Obviously, it's the second time this year where you've really blown out product margin. Should we start to readjust our assumptions on what you have in the pipeline around this big software-only kind of deals?

Charles Constanti

I would not. I think it's important to know we're going to start to see traction in the 20K product, which will introduce more hardware into the mix. So I think we are certainly trying to drive the absolute margins, but I would not adjust the margins up. So we ourselves, as I mentioned, modeling margins in the low- to mid-60s.

Alex Kurtz - Sterne Agee & Leach Inc., Research Division

All right. And Jim, looking at these 2 big wins that you've announced on the last couple of months here. When you look back historically at what you've done with the other large customers, typically, you can do $8 million to $10 million a year with these. It seems like this is in line with those historical customers. Looking to 2013, is it safe to assume that maybe these 2 could drive those kind of similar revenue levels?

James F. Brear

Yes. I mean, as I've mentioned earlier, these to us are very significant wins for the company. They're probably the 2 largest deals in our industry this year, and I think they have the potential to be very large contributors to us over the next several years.

Alex Kurtz - Sterne Agee & Leach Inc., Research Division

So when I look at 2013 it's safe to assume what your term from Cox and some other customers we could see similar levels?

James F. Brear

Yes. I would say over the next 3 years it would be -- we expect to be significantly larger than that type of customer.

Alex Kurtz - Sterne Agee & Leach Inc., Research Division

All right. And last thing, then I'll jump off. Charles, if you can jump on later with the stock-based comp by OpEx line, that would be great.

Charles Constanti

I have mentioned that the COGS is $34,000. R&D $76,000. Sales and marketing, $296,000. G&A, $415,000. That's all stock-based comp.

Operator

Our next question comes from the line of Jason Ader with William Blair.

Jason Ader - William Blair & Company L.L.C., Research Division

First, just on the deferred revenue, Charles. It jumped up a lot, I mean, more than it has historically. Were there some multiyear, large multiyear contracts that came into the mix?

Charles Constanti

I mean, there was one, but it was actually more just impacted in the timing of renewals. It just happened to be that some of our large installed base customers gave us annual renewals this quarter -- or last quarter.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. So next quarter it would be more flattish, would you say? Deferred?

Charles Constanti

I would expect it to be more flattish, yes.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. And then Jim for you, you've been beating numbers pretty handily and obviously, you had big earnings out-performance here, but the revenue is more in line this quarter. And I wanted to get your sense -- I know you have a lot of confidence going for the future, but did you guys see in the September quarter any deal slip or any kind of caution on the part of customers related to the macro environment in any of the regions?

James F. Brear

No, we did not. We are unaware of any competitive losses in the quarter, as well as we didn't see any significant and material changes in the macros.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. But I'm guessing your internal number was higher than the Street guidance that you gave for Q3, so that's what I'm getting at.

Charles Constanti

We didn't actually gave Q3 guidance. So we're actually against our internal numbers. We were somewhat ahead of our internal number for the quarter.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. So when you gave the annual guidance, you expected Q3 to be a little bit lower and Q4 to be a little higher.

Charles Constanti

That's right.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. All right. And then just lastly, Jim, I didn't really follow you on some of the business development efforts that you said you were working on that will come to fruition middle of next year, what are you talking about there?

James F. Brear

What I'm talking about specifically is that we have invested in developing stronger ecosystem partners around somewhat we consider to be some very key verticals. So those relationships were maturing right now. And hopefully, we'll be announcing those first half of next year.

Jason Ader - William Blair & Company L.L.C., Research Division

So is this more kind of distribution partners, where they might OEM the product or more of a resell or is it a reference sell? Any specifics there?

James F. Brear

I wouldn't -- without disclosing too much, really, there's 3 categories. There is OEM opportunities, there's technology partnerships and then there's systems integration partnerships. So it's kind of 3 types of partners and we're pursuing all 3.

Jason Ader - William Blair & Company L.L.C., Research Division

Okay. Is there a certain region that this would help you in more than others?

James F. Brear

No. It's across the board, across the globe.

Operator

Our next question comes from the line of Simon Leopold with Raymond James.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

A couple of things I wanted to just check on first. One was on the guidance on operating expenses. I believe you said on a pro forma basis, over $9 million in OpEx in Q4, is that correct?

Charles Constanti

That's correct, Simon.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

Okay. And just to clarify, were there any 10% or nearly 10% customers in the quarter?

Charles Constanti

Yes.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

Can you give us a little bit more color?

James F. Brear

There were 2.

Charles Constanti

Yes. So one was close to 40% and I'm not sure exactly the percentage of the other one.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

And can you give us any information in terms of what market vertical they're in? I'm guessing wireless, given the strength?

James F. Brear

Correct.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

Okay. And then just following on that, there's obviously some level of lumpiness from quarter-to-quarter on the customer mix in terms of verticals, but I get pleasantly surprised with mobile at 45%. But I want to see if you can give us some insight as to whether we should think of this as an inflection point? In other words, wireless will consistently be a more significant part of the business or whether we should be prepared for continuing variation over the next several quarters as to which market vertical might be biggest. And maybe some color as to how you see these trends playing out among verticals.

James F. Brear

I'd say that quarter-by-quarter it's hard to say, but I'm pretty convinced that by the end of this year, we're starting to see a much bigger shift in the momentum with the mobile as it relates to Procera. And it's my expectation that we'll finish 2013, where a significant amount of our revenue will be mobile. And that's based on the wins that we've had over the last several years and now are really gaining some traction in that segment.

Simon M. Leopold - Raymond James & Associates, Inc., Research Division

So do you think you could characterize your market share of the mobile market? Do you have that kind of insight?

James F. Brear

I'm under the impression, we're the leaders. And that's based on not just customer account but revenue.

Operator

Our next question comes from the line of Brent Bracelin, Pacific Crest Securities.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

I wanted to follow-up on the mobile side. I know you mentioned it was 45% of mix this quarter. What was that mix 9 months ago, just as kind of a marker as far as the magnitude of change here, so far you've seen this over the last 3 quarters?

James F. Brear

Yes. I would say it was probably less than 15% of revenue. So we're definitely seeing incremental increases. Although quarter-to-quarter, we may win a big cable company or a fixed operator on balance as we move forward. I'm expecting the majority of the revenue will come from mobile operators, with the incumbent list of 30 carriers we have, follow-on orders and ones that are in the pipeline.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

And would you characterize our cable and fixed business still kind of relatively healthy, but it's just the outsized opportunity going forward is going to be on the mobile side. It's that the right way to characterize kind of this going forward?

James F. Brear

Absolutely. Cable is still very strong. We still have existing and new opportunities in cable and in fixed around the world, so those are strong. It just happens that we are gaining more momentum right now in mobile.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

Okay. Very helpful. The second question I had for you Jim really was on the 20K. I know you have been -- you talked about that product using beta, now it sounds like you got your first customer win. Will that shift in Q4 or will that 20K shift at the beginning of next year and you also mentioned some trials there? Could you talk about the number of trials you're in or at this point you're not going to do that?

James F. Brear

What I've said is we have at least 10 Tier 1s either in queue or already trialing the PL20K. So we have more than we can handle to be honest. And revenue, we will ship this in Q4, but we won't see revenue -- recognized revenue until first half of 2013.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

Okay. That's a very helpful color. And then my last question for you Jim, really, and I have one for Charles. For you, Jim, on the service and power disruptions in the Northeast, do you expect any sort of kind of disruption to your business because of the Sandy storm?

James F. Brear

Unknown. At this point, no, but -- unknown at this point.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

Okay. Fair enough. And then Charles for you, specifically on the gross margins, I just looked at kind of the 9 month trend. I think the average is 68.6% overall gross margin. I know you continue to guide to the low- to the mid-60s, is that based on the assumption that the initial 20Ks will include new chassis and so just the mix will drive the gross margins lower or is there something about the 20K that you would expect that to actually have a lower product gross margin in initial ramp because of low volumes? Just trying to understand why you're looking for the gross margins to decline here.

Charles Constanti

Yes. I should probably clarify. So when I was referring to modeling, I was really referring to, say, in Q4 as opposed to the full year, because full year could be greater than 60s, say, low-60 to 65. So in terms of the Q4 on modeling in the low-60s. And that's really just because the mix, it's fairly hard for us to predict. As you probably know, in Q1, we had a very -- a similarly very high gross margin quarter followed by a low-60s quarter. So with our mix geographically, hardware to software mix it can move around within that range.

Brent A. Bracelin - Pacific Crest Securities, Inc., Research Division

Okay. And it looks like support gross margin has down-ticked as well too. Is that going to continue to downtick as you add additional professional services employees and that's what we should also factor into that lower kind of gross margin outlook for Q4?

Charles Constanti

That's correct. So we expect -- so cost went up somewhat substantially for that line item, if you will, quarter-over-quarter into Q3. And we expect similar, if not greater increase going into Q4. So really ramping customer support and professional services.

James F. Brear

And that is based on opportunity.

Operator

[Operator Instructions] Our next question comes from the line of Catharine Trebnick with Northland Securities.

Catharine Anne Trebnick - Northland Capital Markets, Research Division

Quick question, Jim, on your very good quarter on the competitive landscape and is it different in many regions and just an update on what you're seeing there.

James F. Brear

Not really. We don't see any change in the competitive landscape in any particular region. As I stated earlier, the 2 mega carriers were both very heavily competed. All my traditional competitors participated in trials and testing, as well as integrated competitors. It was a very lengthy process and we're very proud to come out the winners for those. So again, we are pretty proud of our win rate for Q3.

Catharine Anne Trebnick - Northland Capital Markets, Research Division

Okay. Great. And then last summer, you also announced newer product that you talked about addressing the total addressable market expands into the application -- ADC [ph] space. Any update on that product and how it's tracking?

James F. Brear

We've just, as I mentioned, we're really now just in the very early, we call, beta stage. So I wouldn't expect us to really see any material revenue opportunities until the first half of next year.

Operator

Our next question comes from the line of Brian Freckmann of LS Capital.

Brian Freckmann

Just a quick clarification. When you guys were talking about the fourth quarter gross margins, were you saying low-60s, is that a blended average or is that actually in the fourth quarter you think the low-60s is what the margin will be?

Charles Constanti

Yes. Low to mid is how we're modeling it. And quite frankly, it's hard to predict our gross margin, but that's how we're modeling it.

Brian Freckmann

So how do you -- just so I'm clear, how do you come to that number given your core -- I went back and checked last quarter and the exact quote was the exact same last quarter. It was, we're modeling gross margins in the low-60s. And that's what you said last quarter. I'm curious how you come to that number? Is that sort of the lowest, we should actually expect probably some mid-range between your low-60s and 70s so much more like a mid-60s?

Charles Constanti

I mean, not really because I think if you look across a number of quarters, the 2, 70% plus quarters, there's really been 2 of them. And the rest of our quarters have been in the low to mid. So I think it's been more typical of our business.

Brian Freckmann

And just remind me why that was, those 2 quarters? Just in case we do some research when you find out that it looks like you're probably be turning that way again.

Charles Constanti

It's really the mix of software and hardware to our overall sales. So the more appliances we're selling there's less hardware content relative to software. The more, let's say, we're doing upgrades or pure software sales there's more. To the extent we're doing chassis sales if and when we start to recognize revenue on the 20000 series, which is a greater footprint of hardware compared to our 10000 series, it will be more hardware cost.

Brian Freckmann

Okay. I guess, it's just given the fact that you guys are servicing 50% of your business is already follow-on, you've got a book-to-bill of roughly 1, it seems strange that you're unable to figure out what the remaining sort of 50% is and how that can have such a great variation on the gross profit margins. Is that just factors about 50% of your business you just don't know what it's going to be?

Charles Constanti

We are definitely are winning a fair amount of business each quarter, so it does move the margin around.

Operator

[Operator Instructions] And our next question is from the line of Jeff Osher from Harvest Capital.

Jeffrey Osher - Harvest Capital Strategies LLC

Just a quick one on linearity. Within the quarter, and I don't know if you want to walk us -- 20-20-60, 33-33-33, but maybe you can tie that in as well to just 40 day jump or 35 day jump in DSOs. Maybe there were some renewals late, but give us some color on that.

Charles Constanti

There are 2 factors driving DSO. You're right on the linearity skewed towards the second half, if you will, of the quarter. But equally important was the jump in deferred revenues, so there was accounts receivable associated with, I think, as you're alluding to that related to deferred maintenance and support that's in the AR, impacts the DSO but wouldn't be in revenue.

Jeffrey Osher - Harvest Capital Strategies LLC

Can you -- it was deferred revenue unless it was unbilled, there'd be a cash component not a receivable.

Charles Constanti

So we booked deferred revenue for invoiced support and maintenance agreement that are subject to an agreement, that we've received the purchase order for. So it's not subject to acceptance criteria or something like that, it's revenue that we would expect to collect in the ordinary course for maintenance and support.

Jeffrey Osher - Harvest Capital Strategies LLC

Okay. But there's an invoice you actually credit accounts receivable, right?

Charles Constanti

We're going into really into the minutia. But in certain cases, we do. In certain cases, we don't. It depends on if there's acceptance criteria.

Operator

-- And at this time I'm showing no further questions. I'd like to turn the conference back over to management for any closing remarks.

Todd Kehrli

Thank you for joining the call and we look forward to talking to you in the next earnings call. Thank you.

Operator

Ladies and gentlemen, if you'd like to listen to a replay of today's conference, please dial 1(800) 406-7325 or (303) 590-3030 using the access code 4570690 followed by the # key.

This does conclude the Procera Networks Third Quarter 2012 Financial Results Conference Call. Thank you very much for your participation. 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!

This Transcript
All Transcripts