hopTo's (HPTO) CEO Eldad Eilam on Q4 2015 Results - Earnings Call Transcript

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hopTo Inc. (OTCQB:HPTO) Q4 2015 Earnings Conference Call March 30, 2016 4:30 PM ET

Executives

Eldad Eilam - President and CEO

Jean-Louis Casabonne - CFO

Analysts

Orin Hirschman - AIGH Investment Partners

Jeff Cohen - Wall Street Capital Partners

Mark Campbell - Private Investor

Robert Elman - ScotiaMcleod

Operator

Greetings and welcome to the hopTo Incorporated Fourth Quarter and Year-end 2015 Results Conference Call. [Operator Instructions] I would now like to turn the conference over to your host Jean-Louis Casabonne, Chief Financial Officer of hopTo. Thank you. You may now begin.

Jean-Louis Casabonne

Thank you, Loya. Thank you and good afternoon everyone and thank you for joining us for the hopTo Inc. fourth quarter and full-year 2015 earnings conference call. In addition to myself speaking on the call today will be Eldad Eilam, our President and CEO. By now, everyone should have access to the press release that went out today as well as our Form 10-K which was filed with the SEC today. If you have not received the press release, it will available on the Investor Relations portion of hopTo's website at www.hopto.com. And if you cannot yet see the Form 10-K on the Edgar website, it could still be in process of updating as it was cleared through at about 1:20 PM Pacific.

Before we begin, I’d like to remind you that the information in today's press release and the remarks made by our executives on this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on information currently available to us and involve risks and uncertainties that could cause our actual financial results, performance, prospects and opportunities to differ materially from those expressed in or implied by these statements. These risks and uncertainties include, but are not limited to the factors identified in our news release and our filings with the Securities and Exchange Commission.

You may access any of these filings at www.sec.gov including our Form 10-K for the year ended December 31, 2015 which was filed earlier today. Please also note that the information provided on this call should be considered current only as of today. Except as expressly required by the federal securities laws, we undertake no duty to update that information. And finally I want to mention that a replay of the call can be accessed after the call today and will be available for approximately one year.

We’re here today to discuss our full-year 2015 financial results, give you an update on recent developments as well as share with you what we believe that 2016 has in-store for hopTo. Before we get into a detailed business update for hopTo, I'll provide a financial update. As we've stated in our press release today, nearly all of our consolidated revenue for 2015 is derived from our GO-Global product line. The GO-Global revenue includes product licensing fees as well as service fees for maintenance contracts. In the fiscal year 2015, we reported that the Company recognized $4.98 million in revenue. This was a year over year decrease of approximately 10% from $5.5 million in 2014.

During 2015 and we expressed our belief that the release of GO-Global version 5.0 for Windows would enable this product line to return to modest growth in 2015. The growth did not materialize in 2015, in the second half of the year we experienced what we believed to be our slowing in orders due primarily to the strength of the US dollar. Approximately 54% of our 2015 GO-Global revenue was derived outside of the United States and we will only sell GO-Global software in US dollars, this has caused some temporary slowness in sell through with our resellers outside of the US particularly in Europe and Brazil. Well our revenue from Brazil was about the same in 2015 as in 2014, we believe that it would have actually grown if not for the economic conditions just mentioned.

The total orders or bookings for GO-Global for 2015 were lower than bookings for 2014 by about 18%. However, if we exclude orders associated with one of our OEM partners from which we received a large multi-year stocking order in Q4 of 2014, total bookings were done by 9.6%. At this time, we expect revenue and orders for GO-Global in 2016 to approximate the levels of revenue and orders in 2015. In 2015, we booked orders for hopTo Work in excess of $50,000 while some of these orders contributed to revenue in 2015, the majority will be become revenue during 2016 as the inventory is sold to the resellers. Therefore, we believe there is an opportunity for growth in the quarters to come should sales improve for both GO-Global and hopTo Work product line.

For the year ended December 31, 2015 we reported an operating loss of $4.57 million which was an improvement of approximately 18% compared with the $5.2 million loss from the same period last year. Total operating expense for 2015 was $8.9 million, which is a year over year improvement of $1.36 million from $10.3 million that we reported in 2014. On the balance sheet, the Company had $1.8 million of cash at the end of 2015 and $435,000 in accounts receivable. On January 27, 2016, we announced that we had filed an amendment of our amended and restated Certificate of Incorporation as amended to affect the one-for-fifteen reverse stock split of our common stock that was approved by shareholders in our Annual Meeting on September 24, 2015. We’ve also previously disclosed that we had sublet our office space in Campbell, California and moved to a new smaller location which began to show spending reductions in Q4. As always, we continue to strive to reduce expenses and have additional opportunities to do so in the future. We also continue to explore additional sources of non-dilutive financing to improve our balance sheet.

And now I'd like to turn the call over to Eldad for an operational update.

Eldad Eilam

Thanks Jean, before I get started, I just want to let everyone know that I’m recovering from a head cold and so my voice might sound a little raspy today. First of all, I want to thank our shareholders and investors for joining the call today and for your continued support and patience as we continue to strive to deliver on the promise that hopTo as a revolutionary advancement in mobile productivity. 2015 clearly did not turn out as we had planned or expected as hopTo Work is not begun to generate the meaningful revenues that we anticipated. As we have reported in our earnings calls for the last several quarters, our sales team continues to work diligently engaging directly with prospective customers and resellers to bring hopTo Work to market. To that end, we can say that the pipeline has continued to grow and we continue to receive mostly positive feedback from customers and partners.

But as we discussed in detail on our last earnings call on November 12, one of the main issues we faced in 2015 is the fact that nearly all of the significant opportunities that we have developed are with prospective customers that require people compatibility with their existing Citrix infrastructure. I'll talk more about the Citrix integration in a moment but first I want to address the other major issue we had faced in getting hopTo Work successfully launched in the market. The other issue is that we continue to see indications that we are in an early-stage market. The market analysts and pundits are really only starting to directly turn their attention to the massive problem that hopTo addresses. That problem is the fact that enterprises around the world have invested heavily for the last 20 years in mission critical business applications that are built on Microsoft Window, their legacy web technology.

These enterprises are struggling to fund a cost-effective way to deliver those applications to the mobile devices that their employees want to utilize to maximize productivity. By some industry expert assessment there are literally millions of these applications, some individual companies have thousands. The cost to rewrite these applications in a native mobile app is prohibited and in a significant percentage of cases a custom built app with hundreds of screen is simply not going to be useful in a mobile device. We began to engage directly with a number of these analysts during the fourth quarter and they have expressed support and appreciation for the unique approach to solving this problem that hopTo Work provides. Specifically we've heard praises due to the fact that hopTo Work provides mobile access without any coding and a unique level of security because we don't require delivery of any data or document to the device.

These analysts as well as our prospective customers, partners and even Citrix executives have given us very positive feedback about our soon-to-be released MAX-IE which delivers a fully mobilized Internet Explorer user experience with absolutely no application specific work or customization. You may have seen our Executive Team tweeting and promoting a few articles that have began to surface about hopTo. We expect to see more coverage in the coming months. Getting back to Citrix, our launch of the initial version hopTo Work for Citrix was delayed until November of 2015. And although there was some chance of brining some deals over the finish line by December 31, we didn't quite get those closed. We are working diligently to get them to closure in the first half of 2016. The delay of the initial Citrix version was primarily due to the fact that we are trying and what we are trying to accomplish and this integration has never been done before.

To that end, we engaged directly with Citrix during the fourth quarter, and they continue to work with us on a full integration that will produce a hopTo mobile client that will deliver a great mobile experience build on top of the Citrix receiver engine. We shared this plan at Citrix Summit in January of this year when we formally announced the project, the effort as Project Mobilis. We have received positive feedback on Mobilis from Citrix field personnel, Citrix partners and prospective customers. Our development schedule calls for the key deliverables of Mobilis, and an integration with Citrix HDX to be available in time for Citrix Synergy in May. Synergy is Citrix's annual customer event and hopTo is fine enough to be a sponsor.

Our successful experience at Summit has also led to the development of the new partnership which we will be able to announce soon. We currently have regular meetings with Citrix in both development and marketing as we move towards the completion of the integration and to be ready for Synergy. We can say that nearly all of the opportunities that we've had in our pipeline from 2015 are still there. They remain engaged and have responded favorably to the Mobilis project.

In addition to our Citrix efforts, in 2015, we began work on several digital project that will help us monetize the innovative hopTo technology. I would like to take a moment to discuss two of those. The first is a product we discussed on our last earnings call November 12, this version was born from our experiences dealing with the type of prospective customer in 2015. We learned that hopTo Work is very appealing to small businesses with less than 10 or 20 employees, but the technical requirement to deploy it could be a challenge for such organization. Such organizations lack the IT department required to set up and maintain such a solution. hopTo work was designed to seamlessly plug into an organization’s existing infrastructure, but in such cases the organization really doesn’t have any of that infrastructure in place. We identified a real need for a simple low cost solution to deliver as many of the hopTo Work feature in a package that doesn’t require backend servers or any other infrastructure. This release will deliver much of the power of hopTo Work in a simple package allowing anyone to remotely connect to their own PC from their mobile devices and access their Windows or web application with the benefit of the MAX feature set. One of the key applications prospective customers wanted to be able to access with hopTo Work is QuickBooks running on PCs. The product will enable this and many other similar applications. It will be sold through the app stores and rely on cloud infrastructure hosted by hopTo rather than on any customer servers. We plan on shipping in Q2 of this year under a new product name that we will announce soon.

Another product we have been developing and have begun to roll out this week is hopTo MAX for GO-Global. GO-Global add-on that makes some of the key MAX features available to GO-Global customers. As we began marketing hopTo Work last year, we learned that many of our existing GO-Global customers are interested in hopTo Work MAX features, but would like to utilize their GO-Global infrastructure to realize these benefits. We are releasing hopTo MAX for GO-Global today to our GO-Global partners and customers who have already shown strong interest. The iOS client has already been approved in the Apple app store.

Finally, I would like to share an update with respect to our patent activity. We have spoken about our patent portfolio before on our older earnings call, but I wanted to share that we doubled the number of granted and allowed patents during 2015 bringing the total number to 37. Another eight patents were granted and allowed so far in 2016, which brings the total through today to 45. About two-thirds of these patents are directly relevant to the hopTo Work products.

As we have discussed previously and again on this call, we remain engaged with several large companies, which could lead to substantial orders. Over the course of 2015 and so far this year, discussions with potential customers have continued and through attendance of industry conferences and discussions with the industry analysts, we still believe that there is a significant opportunity for hopTo Work, although there are risks and challenges. We also believe that the new easy install version of hopTo Work and hopTo MAX for GO-Global will generate revenue in the coming months and quarters. We are looking forward to providing you more information about our progress, even though at this point, we are not providing revenue or sales guidance.

And now, I will turn this call over to the operator to open it up for the Q&A portion of the call.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from the line of Orin Hirschman with AIGH Investment Partners. Please proceed.

Orin Hirschman

Hi, how are you Eldad?

Eldad Eilam

Thanks, good. How are you Orin?

Orin Hirschman

Good. Thank you. So you mentioned that there were deals that needed more features and that those moved from Q4 into Q1, Q2. Do you enhance the feature set with the existing Citrix product or are those deals need some of the additional features that are coming in the next few months?

Eldad Eilam

Orin, for the most part, I wouldn’t say – I wouldn’t call it features, I would call it infrastructure compatibility. It’s not about being able to do or not do some specific things, for the most part, it’s going to be that they need HDX compatibility or other components in the Citrix interested ecosystem as large and diverse and complex and these guys need us to plug in to several components there. Otherwise, it requires them to re-architect pieces of their network to become a huge project. And so it’s not so much about features, it’s more about compatibility with the Citrix ecosystem.

Jean-Louis Casabonne

And this JL, just to add one thing. There are a few of these opportunities that can get by with the original hopTo for Citrix that we launched in November and we just like to be said, those were some that we just couldn’t get them to do the testing and move fast enough, but they are getting things started now.

Orin Hirschman

Okay. In terms of getting support from Citrix and trying to get deals closed to bigger Citrix customers, do you have that today or are they waiting to see what you’re going to deliver next? What’s needed to be able to get more of their muscle behind you. And are you competing with any of their older products or don’t take care?

Jean-Louis Casabonne

This is JL, I will take that one. So the answer to those first two question is yes, we are both getting support with them. And as we said, we have direct engagement with some of their field organization as well as both sales reps and sales engineers. We have direct engagement with a couple of net new -- since this quarter net new Citrix partners that are working with us and doing evaluations and ready to move forward. And it’s both testing what we have now and also a wait and see thing, because as we have said, and Eldad expressed again what we are trying to do here with the HDX integration and create an additional mobile client on top of the Citrix Receiver engine, it’s something that no one has ever tried and there is a couple of reasons. There really hasn’t been an end user software package like ours to try and do something like this before. So it’s – there is a lot of things to learn along the way, the SDKs that they have provided us, they had to give us updates along the way. So it’s all pretty involved application to get through. However, we can say at least at this point, the early indications, we have working prototypes, we know what works and we know what needs additional work. So we are on a pretty good path to actually get this done.

Orin Hirschman

Do you think that as soon as it is done that there are deals that were closed pretty immediately after that or are they going to want to take it through a whole new slew of tests because it’s really -- it’s a new finished product so to speak?

Jean-Louis Casabonne

I mean, all we can say is what we are hearing and what we are being told. I think that the indications that we are getting are pretty clearly many of these people have gone through an evaluation, looked at the product, they know what it is. By the way, the answer is that for the most part, it’s not identical. If you look at what we are developing in mobile, it’s not identical to the hopTo Work that we have released, that’s out there already, but it does – it pretty much does everything that we know our customers want. So I think that the answer is that it’s essentially already a vetted solution and we expect people to move forward certainly.

Orin Hirschman

Okay. And last question is in terms of Gartner and any other guys that are – that you look to have a paper from something of that effect, are they -- is there a new category that you could be in or is it just -- are we still going to be [indiscernible] what did it look like and is that important enough for your marketing efforts at this point or not really?

Jean-Louis Casabonne

Well, we think that is important. I can tell you that we had some initial conversations with some of the larger analyst houses. They have not really come out with coverage on this yet. We don’t really see ourselves any longer as being positioned so much alongside the mobile ions and good technologies of the world, because really there is a sort of a newer aspect of end-user computing that some of the market analysts are starting to talk about and it is called either application refactoring or application mobilization and it really is new. And part of what’s happened, I mean, we go back and time here. When we first started in 2015, when we first launched hopTo Work, we came to learn that we had an offering that people didn’t even have in their budget. Now, we are starting to see that people are actually budgeting money for how are we going to get to legacy applications to the mobile devices.

Now, you also asked a question about, is it becoming more of an identified and budgeted project. You also asked about a question about whether or not we are competing with existing products that Citrix might have. Well, the fact is that Citrix has some – I mean, they already something that’s called Citrix Receiver, which is a mobile client and it’s available both on Android and iOS. But some customers, many customers actually and even some Citrix folks have expressed it with a specific area of getting mobile access to hosted applications, it doesn’t quite get everything that the end users want, which is why we are working together on that.

Eldad Eilam

The other thing I will add and that is very, very important point is that Citrix Receivers is free product. It’s not something that’s sold by Citrix, it’s basically the mobile front-end to access the very costly infrastructure that you put in place with them to access the mobile client to use. So if you are able to sell your own brand of Citrix Receiver to the customer, as long as it upgrades the user experience for the Citrix customer, Citrix is not losing of any vitamin. For them it’s nothing but an upside, because they are happier customers, right.

Orin Hirschman

Okay. I mean this has to say that you provide a lot more than that piece you sell for Citrix?

Eldad Eilam

Absolutely. And I will tell you, I think it would be fair to say that we’ve heard comments from a variety of people in the company about that and they agree with that.

Orin Hirschman

Okay, great. Thanks so much.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Jeff Cohen with Wall Street Capital Partners. Please proceed.

Jeff Cohen

Just wondering about your internal timeline for finishing the fully integrated product and if you are tracking and your confidence level that you will have it ready for market by the Synergy Conference.

Eldad Eilam

So, yeah, that’s a good question, Jeff. What I will say is this, we are in – we are approaching sort of the demo phases of the stage where we are going to show it to a variety of people. That’s happening pretty much as we speak. We expect to be able to ship for Synergy. I caution about one thing there which is that it’s not just up to us. We rely on some deliverables from Citrix. So far they have delivered multiple components that we’ve needed in versions and iterations and things of that nature, but we continue to rely on that in order to be able to ship a final shippable product for Synergy. So if that doesn’t happen obviously I can’t guarantee of being able to do this, but so far they have been great with us and so I would say that I think we are on track for that.

Jeff Cohen

Okay, thank you.

Operator

[Operator Instructions] Thank you. Our next question is a follow-up from the line of Orin Hirschman with AIGH Investment Partners. Please proceed.

Orin Hirschman

Just one additional question. Now that you have moved away from the competition from access style companies like MobileIron and into this new area of repurposing apps, who is the competition here besides trying to revamp your own apps, so maybe higher [indiscernible] to help you with it? Who is the competition and is that really what the sales is about right now? Is competition that’s not really what it’s about for you guys?

Eldad Eilam

That’s a very good question. I think we’ve discussed some of these names in past earnings call, but I am happy to repeat it. So I will say I think the MDM, MAM vendors are no longer - it’s really not our focal – not the area that we focus on at this point. The area that we are focused and this is again something we started talking about years ago, right, is refactoring if you will of legacy applications and the players here, I could name a few. They are mostly startups, they are relatively all new companies.

So one of them is called Capriza. That’s the startup that’s really raised quite a bit of money in the past couple of years. There is a company called PowWow in San Francisco, I believe. There is Reddo Mobility, which is a part Israeli, part based in Boston. There is StarMobile. They are out of Atlanta. Those are the main four that we are hearing and I got to tell you, we are running into them in the events. We know them, we talk to them, we kind of like there is a certain level of engagement there and we are – I think it would be fair to say that we are running up against them on specific deals, but we are definitely talking to them and they are after the same types of opportunities that we are. Go ahead.

A - Jean-Louis Casabonne

Just to build on, there is one key difference between all of them and hopTo and that is difference in approach. What each of these other companies does is, require that customer actually take an application that they have developed and actually do some recompilation and recoding, so basically you have to write code or go through an extensive integration process to make that mobile delivery concept that they have worked. In a single hopTo Work we are more of a plug and go. You don’t have to do anything.

We improve and there is an important distinction here because there is a much higher cost of ownership in that other approach, because you have to remember what this is about is providing mobile access to applications that have already been developed for use with computers and for desktops and laptops. And in a large case, in most cases people are still going to be using the application on their laptop or desktop, the mobile app that is for convenience use when people are either not in the office or travelling or meeting or something like that and the other one out of their tablet.

And so what it does is, it creates a net increase cost in a couple of different ways and this is something that we learned a long time ago with GraphOn which is that every time there is an update to be underlying Windows Server software, then you are going to have to make changes to this application that you’ve built, right. With our approach, it just works with Windows continuously. That’s one key thing. The other thing is it changes the appearance of the screen and the - after the employees that are using it.

So as we heard this one is - probably the worst case of this that we’ve heard about is with a very large financial institution that says it drives people in the bank branches crazy because they go and do something on the tablet and they have to come back and they are looking at a completely different screen when they are back at their computer. So you’ve got that employee inconvenience and learning curve for how do you use this mobile representation of an application that I am used to using online laptop or desktop. So, all of those things make a big difference when someone is trying to make a decision on what approach to take. So we believe that we sit very distinctly apart from them and we’ve been given feedbacks from prospective customers, prospective partners, existing partners that that in fact is the case.

Orin Hirschman

So any of the larger deals that you have been facing, have any of them actually been lost or they haven’t done anything yet?

Eldad Eilam

Yeah, the answer is they haven’t been lost. They are in just various stages of hibernation and in some cases some of them are waiting for some things, some of them – a lot of them are waiting for something internally, but it’s funny we really asked us of that question often. What have we really lost and sure there is a couple, but they are tiny minority.

Jean-Louis Casabonne

And in fact one of the things that we do with our field guys is that we specifically tell them this is something Eldad had done. Every week or so please check in with these guys and ask them we should just go away. And the response is no, no, we want to get this done, we are just trying to get it prioritized. And I will tell you one of the experiences that I had in Citrix Summit when I was talking directly either with Citrix field people or Citrix partners and I would explain things that we are going through with some of our healthcare prospects or some of our financial institution prospects and they are just looking and said, yes, that’s the deal, let’s hurry up and wait.

And it’s part of what’s going on right now and that’s just the nature of the beast of trying to sell any sort of software that you are trying to sell where it’s got to get – it’s going to touch somebody’s servers that it’s only the longer process. So one of the things that - again that we are encouraged with, Orin, is that this type of activity this year as opposed to last year has started to show up as budget items for the companies that we are talking to. So that’s one encouraging difference ’16 over ’15.

Orin Hirschman

Okay. That was actually going to be my follow up question, because you mentioned that early and that sounded like that’s a big difference. Just one of the follow-up question is do you think if you get one of these larger deals that’s what’s going to be typically for Citrix, that is going to breaks open everything?

Jean-Louis Casabonne

Well, we’d like to hope that and we do hope that. I am very wary about making a statement about that right now, but a lot of folks have told us that guys if you just get this one going, everyone is going to be coming to see you because all the other people in that vertical whether it’s energy, financial services, healthcare, they have all got the same problem. So it - the reason that that would happen, I am just simply here on March 30, I am not going to make that as a projection as you can well understand.

Orin Hirschman

Okay. And actually there is one other question. You mentioned you have to work for your single global customers, when does that start yielding sales?

Jean-Louis Casabonne

We believe it will start yielding sales very soon. We’ve actually been in a prelaunch mode with that for the last several weeks. The server side of it ship today and as Eldad said the iOS version of the clients has already been approved in the iTunes Store. So that channel is really engaged and the fundamental difference there between what we try to do with the new launch of hopTo Work last year is we have people there with an established customer base that - to be very frank the mobile client that we’ve had historically for GO-Global, both the iOS and Android version is not exactly the greatest piece of software in terms of its usability. It suffers from a lot of the things that we are trying to solve for other products with hopTo Work.

And the sales team here that works on the GraphOn products have said that there have been deals over the last many months that they have lost because there was no – in terms of net new deals because there was no serviceable mobile client to go with the product. So we are cautiously optimistic that that’s going to do very well. The early indication from our larger resellers is -- that is exactly what folks want and then we also, it's a little bit of a longer rollout with our OEM partners, because we have to help them produce a branded client, but the interest has also been expressed there. So again cautiously optimistic that that's going to do pretty well and should start to generate revenue fairly soon.

Orin Hirschman

Okay, great. Thanks so much.

Eldad Eilam

You are welcome. Thanks for the question.

Operator

Thank you. Our next question comes from the line of Mark Campbell, Private Investor. Please proceed.

Mark Campbell

Hi, guys. I understand, I mean it seems like you’ve done a lot of good cost cutting and saved quite a bit and I know that you’re looking for ways for non-dilutive financing. I guess my question is, at what point are you going to have to have made some sort of move or made some sort of move to get extra financing or are you still hoping you won't have to or is there some point where you’re going to basically have had to get some financing before certain date or quarter or something?

Eldad Eilam

So, we have ongoing processes for those sorts of things all the time, Mark. And we have -- we have sort of, not that are necessarily imminent, but that could be made imminent very quickly and we are -- I just was double-checking to see that in fact the 10-K is now available. We’ve been issued an unqualified opinion from our auditors that indicate that there is not a growing concern risk, which means that we've stated that we can continue to operate for another 12 months and there may be a point in time where we do have to cut more. There may not be, and it all sort of depends. We've done a lot, not just to get the cost under control, but also to identify exactly when and where the trigger points are for things that we may need to do [Technical Difficulty] to get more money or definitely cut spending. So we’re not going to disclose those details today. [Technical Difficulty] good read at what we stated in our liquidity and capital requirements section of the 10-K and it should give you as good of a [Technical Difficulty] to you today.

Mark Campbell

Okay, thank you.

Operator

Thank you. Our next question comes from the line of Robert Elman with ScotiaMcleod. Please proceed.

Robert Elman

Eldan, Jean, hi. Thank you. I haven't looked at the 10-K, I’ve been a little bit busy, but what is our quarterly burn rate?

Jean-Louis Casabonne

Well, the quarterly burn rate has continued to come down, it's currently well under $1 million and that's where we are right now and we have other things that we can do to continue to reduce it.

Robert Elman

So, more or less, we've got a quarter before we have to raise money, am I correct?

Jean-Louis Casabonne

I wouldn't answer that with a strict affirmative. There is many number of things that can happen over the course of the next 30, 60, 90 days and we’re not really doing much forward-looking in terms of financial projections today.

Robert Elman

Okay. So the relationship with Citrix seems to be blossoming and it’s wonderful and you're working close with them. When do your salespeople and I think I’ve asked that question before, but when do your salespeople begin to make joint calls with the Citrix people because you are now joined at the hip?

Eldad Eilam

So. Honestly, [Technical Difficulty] I will tell you that the focus right now is more on joint marketing work [Technical Difficulty] already. And I think the answer is that once we have the right product offering in place, right, in terms of [Technical Difficulty] several components in the Mobilis project, then we absolutely expect that there will be some joint sales calls and things of that nature.

Robert Elman

Is the target moving, in other words, where you were a year ago and you were close to and now we are still close to, is the target moving?

Eldad Eilam

You mean in terms of the market, just so let me correctly understand the question.

Robert Elman

Well, in terms of where we need to be to fulfil the market needs, is that constantly evolving and is it moving faster than we are?

Eldad Eilam

Yes. It's actually a good question. I would honestly say no, I don't think it's really evolving that much. I think if you look at our product, a year ago today, right, March of 2015, okay, what we were offering is MAX over Microsoft over RDP. Okay. The same products, [indiscernible] exact same way. The challenge has been with finding the sort of the right size as Microsoft deployment, who will take on that kind of thing and everybody we talked to really wanted Citrix, that’s if I had to summarize it. And so, it’s not some dramatic market shift that's causing us to chase after something or change direction. It really isn’t. It's just that we've built something that we got the impression that people want it, but they needed it using different technologies and really sort of like a different configuration of it, right, and that's what we've been trying to build.

It's not easy, the challenge of course is not easy, because it requires Citrix's cooperation. And so when we first heard of this problem, it was a challenging problem to have, because as an engineering team, you look at it and you say, well, there is no way for us to file this independently on our own. There has to be some fairly complex business development operation here to make that happen. So that's a lot of what we did in 2015, was to put that in place, but really it’s not a major market shift that we've been chasing after. So we've just been trying to accommodate the technical requirements of the customers. I hope that answers your question?

Robert Elman

Well, it does. And this follow-up question may already been answered. I presume you know, of course I don't presume, but you know the customer’s needs and wants and what their real desires are. So you’re working towards that end. If you can get to that end and you can deliver that end, are they going to buy it?

Eldad Eilam

We believe that the answer to that is yes, otherwise, we wouldn’t be doing what we’re doing, right.

Robert Elman

They’re not prepared to give you an LOI.

Eldad Eilam

No, we haven't.

Jean-Louis Casabonne

Realistically, I think that we’re at a place where typically the way this goes in the sort of generic solutions that we are bringing, it’s not like we’re doing a custom job for each customer. So they are looking to see that there is a readily available solution that they can test and then they would move to purchase assuming success. So it's not the sort of deal where -- it’s not the sort of thing where someone is going to step up and provide the funds for us and just do a custom development for them. And quite honestly, I don't think I would want to position this in that place, because part of the value as we see it is having -- the least possible friction into this market is going to be with the generically applicable solution that is the same solution for every vertical and that's what we’re positioning as.

Robert Elman

I think in the main probably works if you’ve got the horses out there to really drive it, but you don't, you really -- with 303, you don't have a machine gun or a shot gun, you do have 303, so don't you have to kind of really target those specific customers. And if you have to do a little tweaking, you do a little tweaking for each of those customers and close those deals?

Eldad Eilam

Well, yeah, but that’s part of a more generic [ph] approach and in fact, we are engaged with a handful of customers in a number of different verticals, whether it's healthcare, patient, energy, financial services and actually the [Technical Difficulty] tweaking as they just need for us to be fully compatible with the way they want to test it and use it in their Citrix environment and as I said, some of these folks aren't able to use the Citrix release that we just did in November and some of them are just saying, okay, when this HDX thing is ready, that's when we will go. So that's kind of where we are. But again, that's the sort of tweaking that our company is not typically going to pay for in advance as opposed to if you’re doing some sort of a major project for them.

Robert Elman

Okay. Thank you very much.

Eldad Eilam

You're welcome.

Operator

Thank you. We have no further questions in queue at this time. I'd like to return the floor back over to management.

Eldad Eilam

Yeah. Hi, everyone I’d like to thank everyone for tuning in to our earnings call today and for your ongoing support and patience. We look forward to discussing our Q1, 2016 performance with you in May. Thank you all very much.

Operator

Thank you. This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.

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