Good day and welcome to the Crexendo Q3 2013 earnings conference call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Chief Executive Officer and Chairman of Board, Steve Mihaylo. Please go ahead.

Thank you. Good afternoon everyone. I am Steve Mihaylo, CEO and Chairman of Crexendo. I want to welcome all of you to Crexendo’s third quarter conference call. With me here today are Doug Gaylor, our President and COO; Ron Vincent, our CFO; Satish Bhagavatula, our CTO and CIO; Jeff Korn, our CLO, Chief Legal Officer; and Kim Reitz, our Controller; and I am going to ask Jeff to read the Safe Harbor statement after than I will have some brief general overview comments relative to the quarter. Ron will provide some additional granularity on the numbers, Doug will provide a basic business and sales update and Satish will give an update on technology and then we will open the call to question. Jeff, would you please read the Safe Harbor statement?

Thank you, Steve. I want to take this opportunity to remind listeners that this call will contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for such forward-looking statements. All statements made in this conference call other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to words like, belief, expect, anticipate, estimate, will and other similar statements of expectations identifying forward-looking statements. Investors and listeners should be aware that any forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in more detail in the company’s filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended December 31, 2012 and the Form 10-Q for the period ending March 30th, 2013, and June 30th 2013. Crexendo does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. With that, I would now like to turn the call back to Steve. Steve?

Thank you, Jeff. I assume everyone has copy of our press release, so I am not going to read that to you and besides Ron Vincent is going to give you some granularity on the numbers. Obviously, the results of the third quarter are not the results that our shareholders they will be excited about -- these are trends that I'm very pleased with. First, we continue to strategically but aggressively reduce cost. I have been very encouraged with the cost reduction result. As we discussed in the press release, we have made the strategic decision mix with non-enterprise SEO market while this will reduce out top line revenue and it does help us reduce cost and allow us to focus third quarter objectives of business of cloud based telephony as well as our soon to be released new website development software platform. We are also reducing our other cost. As you know we have the limited position of CAO and we have further reduced executive cost as Jeff Korn is now working at a reduced schedule which is a win-win as we still get full covered with substantial cost savings and Jeff gets to accept some consulting work. We watch all of our cost carefully and make appropriate strategic reduction. I am pleased with the progress of our sales force. I think we have made significant headway in having a good and effective sales force and we continue to make tweaks and improvements. Our dealer-partner channel continues to improve. They are holding our first partner conference this week and I see excitement with our dealer partners. I have significant expectations for the future of this program. We are also actively aware of our cash balance as I am working with the Board to assure our continued liquidity and we are looking at various depth and equity option. It is too early on the process for me to make any specific comments but I expect we should have a plan in place by the end of this year or the middle of January. I continued to be very excited and confident in our future and I am amazed by the quality of the product that we have put out and the quality and enthusiasm of our very talented people. I know we’re in the right space and I also know we are second to none in quality of products. With that I will turn the call over to Ron, Ron would you like to give us some granularity on the numbers please?

Thanks Steve. We continue to see rapid growth in our network services segment revenue and backlog. We have also experienced better than expected collections on our stores online, extended payment term agreements. Consolidated revenue for the third quarter decreased 11% or 300,000 to 2.4 million compared to 2.7 million for the second quarter and decreased 37% compared to 3.9 million for the third quarter of 2012. Crexendo Network Services segment revenue increased 42% to 696,000 for the third compared to 491,000 for the second quarter of this year and increased 196% from 235,000 for the third quarter of 2012. We continue to see positive growth in our backlog, this is the third sequential quarter we have seen growth of at least 23%. At September 30 our backlog is approximately 5.2 million compared to a backlog at June 30, 2013 of 4.3 million, an increase of approximately 1 million which is consistent with prior quarters we are excited about this positive trend in our network services segment revenue, which primarily relates to hosted telecommunication product and services. The majority of our network services contracts are 36 months to 60 months terms and the backlog is expected to be recognized as revenue over this period. Crexendo Web Services segment revenue decreased 6% to 533,000 for the third quarter compared to 569,000 for the second quarter and decreased 7% compared to 575,000 for the third quarter of 2012. We anticipate that our revenue from our web services segment will continue to decline due to our strategic decision to limit the provision of web services to our enterprise sized customers. As a result of this shift in focus, our backlog has decreased 400,000 to 800,000 as of September 30th compared to 1.2 million at June 30th 2013. This shift in focus will allow us…

Thanks Ron, thanks everybody for joining us. During our third quarter we continued to see very positive trends for our percent of telecom, increasing our revenue by 42% and increasing our backlog by 23% over the prior quarter. Our continued success in this division coupled with a tremendous growth into cloud communications industry underscores the fact this is the where the emphasis be focused. Based on these factors during Q3 as we already talked about, we made an important decision to exit the web marketing and SEO sector of our business expect for Enterprise and National Account, so that we can focus 100% of our efforts on our telecom and hosted services offering. During Q3 our total sales bookings increased 22% over our sales in Q2, Q3 was our second best booking quarter ever, just shy of our high watermark that we achieved Q1 of this year. Our telecom sales increased 47% during the quarter while our webmarketing sales decreased 51% during the quarter compared to Q2. The decline in the webmarketing sales was expected due to the decision to cease the non-Enterprise level sales of the webmarketing services that we did this quarter. The significant increase this quarter over quarter in our telecom division are due to improved efficiencies in our sales program as well as improving results from our direct sales team and increasing sales from our dealer channel. Last quarter we announced we received two preferred partner of the year award from two significant organizations and since that time we’ve had considerable sales being generated from those programs. Last quarter we also announced the addition of our new Director of Sales, Cassander Anderson to our team and I'm pleased to see the growth interaction that we're beginning to see from that channel. We continue ramping up our…

Thank you, Doug. Greetings everyone. I’m glad to report that we made considerable improvements of our products technology during Q3 of 2013. These enhancements have been particularly in the areas of increased operational efficiencies of our cloud services, production of cost of service, improved features and new functionality in our telecom platform. We also spend considerable effort in improving the security and protection from data network, denial of services -- distributed denial of services attacks that our technology infrastructure. As we continue to increase our base of telecom customers we see remarkable growth in the traffic and stress on our system thus requiring us to make constant improvements and additions to our infrastructure. We continue to make more improvements to adapt to the growing needs of storage computing, quality of service and high availability of our solution. Our efforts to separate core telecom and web infrastructures have proved to be fruitful in providing higher levels of service to our customers, telecom and web alike. To improve our data network connectivity and route propagation with our upstream daily carriers thus providing better resiliency to our customers in the event of outages at the public internet upstream from us. We continue to make additional cost improvement as our traffic, presence and customer base increases. We rolled out distributed denial of service protection solution to our production environments in August which is already proving to be great enhancement to our cloud offering and protecting us and our customers well. This prepares us to handle large DDOS attacks which is known-risk for service providers in the industry. Our goal is to preserve and maintain the state of the art cloud infrastructure. I’m also glad to report that our web engineering team continues to roll out updates to our existing web hosting customer base every…

Thank you, Satish. Now at this point if we have any questions, we’ll be happy to answer them. And we’re changing the format just a little bit here. You’ve become aware of all of our team members and what their functions are, so if you have a question that applies to Ron, [indiscernible] and if you one that applies to Doug and [Korn] and if there is something that you’d like to ask of me, feel free to do that. Thank you.

[Operator Instructions]. Mr. Mihaylo, it appears we have no questions at this time, I’ll turn it back to you sir.

I guess we did a good job of answering and anticipating what the questions might be. I know we’re in general comments that might be of interest to everyone. As you know I’ve had a 10b5 plan in place for the last year and it expires at the end of this month and on Monday I’m going to be increasing my share purchases and increasing the price of the $3.10 share. So, if there are any shares out there that become available and they are others in the market. Hopefully I’ll get some. And the quantity that I’ve got in place will be 40,000 shares a month. So, with that, if there are no questions, we thank you participating in today’s conference and look forward to talking to you sometime in the new year about our fourth quarter. Thank you Elisa.