Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal Year 2018 First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder, today’s conference is being recorded. I would like introduce your host for today’s conference, Mr. Norberto Aja, Investor Relations. Sir, please go ahead.

Thank you, operator. Good afternoon, everyone. Thank you for joining the Agilysys fiscal 2018 first quarter conference call. We’ll get started in just a minute with management’s presentation and comments. But before doing so, let me review the Safe Harbor disclosure. Today’s conference contains forward-looking statements within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as anticipate, intend, plan, goal, believe, estimate, expect, future, likely, may, should, will, and other similar references to future periods. Examples of forward-looking statements include among others, statements we make regarding guidance relating to revenue and adjusted earnings from operations, expected operating results, such as revenue growth and profitability, market demand, cost efficiencies and strategy for growth, product development, customer service, market position and financial results. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions, regarding the future of our business. Future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, our ability to achieve operational efficiencies and meet customer demand for products and solutions and the risk described in today’s news announcement in the company’s filling with the Securities and Exchange Commission, including the company’s reports on Form 10-K and Form 10-Q. Any forward-looking statement made by us in today’s conference call is based solely on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that maybe made from time-to-time whether as a result of new information, future developments or otherwise. Today’s call and webcast will also include non-GAAP financial measures within the meaning of the SEC Regulation G. When required, a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and present in accordance with GAAP can be found in today’s press release as well as in the company’s Web site. With that, I’d now like to turn the call over to Mr. Ramesh Srinivasan, President and CEO of Agilysys. Please go ahead, Ramesh.

Thank you, Norberto, and good evening, everyone. Thank you for joining us on the call today to review our fiscal 2018 first quarter results and our promising path forward. Joining me on the call today is Tony Pritchett, our Chief Financial Officer. Let me begin with a quick overview of the first quarter results, before providing an update on our progress against our strategic initiatives and some comments regarding our forward-looking guidance. Compared to last fiscal year’s first quarter, total net revenue increased 9.4% to $33.9 million, an all-time quarterly record. Adjusted EBITDA improved to 1.6 million compared to 0.4 million last Q1, while the GAAP net loss was higher at 3 million, a loss of $0.13 per share compared to 2.3 million, a loss of $0.10 per share last Q1. Compared to last year’s – last fiscal year’s Q1, our non-GAAP adjusted earnings from operations remained close to the same level as last year at a negative $3.5 million versus a negative $3.2 million last year, in spite of a significant increase in our cost structure towards the end of last year to prepare ourselves internally for certain large customer deals that are now beginning to materialize, and capital expenditures to open our India development center. With improving efficiencies, we’ve now started dialing back on our overall spend. Our services gross margin at 20% was lower than last year’s due to the recent restructuring of the services team to redeploy certain internal resources into billable functions with direct customer responsibility, which results in their cost being included in the cost of goods sold definition. Previously, our services teams were organized by function and by product, making direct accountability for customer work difficult to pin down. Our services teams are now organized by customer segments by customers, with clearly defined…

Thank you, Ramesh, and good afternoon, everyone. Our first quarter fiscal 2018 revenue was $33.9 million, a 9.4% increase from total net revenue of $31 million in the comparable prior year period, marking a quarterly record. Our top line growth largely reflects an increase in recurring revenue of 11.5%. Going forward, we expect future recurring revenue growth to level off and fall back to the mid to high-single digit range over the balance of the year. Looking at revenue in greater detail, product revenues increased 8% to $10.3 million and represented 30.4% of total revenue during the quarter. Product revenue in the quarter fell within the typical range of 60% to 70% hardware and 30% to 40% software. Support, maintenance and subscription services revenue or recurring revenue increased 11.5% to $16.7 million or 49.2% of total net revenues compared to $14.9 million or 48.3% of total net revenue in the first quarter of fiscal 2017. In addition, recurring revenue growth was driven by a 58% increase in SaaS revenues for the first quarter. SaaS revenues comprised 28% of total recurring revenues compared to 20% of total recurring revenues in the first quarter of fiscal 2017. We are pleased that SaaS recurring revenue continues to grow at a faster pace than our overall recurring revenue. Professional services revenue grew 6.6% to $6.9 million compared to the first quarter of fiscal 2017, reflecting the positive impact of enhanced throughput from our customer-facing implementation and installation teams, driven by our professional services team realignment. Total revenue related to our rGuest platform comprised approximately 5% of total fiscal 2018 Q1 revenue. Moving down the income statement, cost of goods sold increased 16.5% or $2.4 million in the first quarter versus the prior year period. This increase was largely due to the amortization of software…

Thank you. [Operator Instructions]. And I’m showing no questions on the phone lines.

Okay. If there are no questions, thank you, Michelle. Thank you all for listening and participating in this call. On behalf of our Board of Directors, our management team and all our talented and dedicated team members, we sincerely thank you for your continued interest in Agilysys. You have our commitment that we are working hard and smart towards improving rapidly and becoming a better company to work at, do business with and invest in. We look forward to providing you our next update three months from now. Thank you, and enjoy the summer and take some time off to visit our customers more often. Thank you.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program and you may all disconnect. Everyone, have a great day.