Good morning, and welcome to DHI Group Third Quarter 2016 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Brendan Metrano. Mr. Metrano, please go ahead.

Thanks, Keith, and good morning, everyone. With me on the call today is Mike Durney, President and Chief Executive Officer of DHI Group Inc.; and Constance Melrose, Vice President of Corporate Development and FP&A. This morning, we issued a press release describing the company's results for the third quarter of 2016. A copy of that release can be reviewed on the company's Web site at dhigroupinc.com. Before I hand the call over to Mike, I'd like to note that today's call includes certain forward-looking statements, particularly statements regarding future financial and operating results of the company and its businesses. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied in the statements herein due to changes in economics, business, competitive, technological and/or regulatory factors. The principal risks that could cause our results to differ materially from our current expectations are detailed in the company's SEC filings, including our annual report on Form 10-K and quarterly report on Form 10-Q in the sections entitled Risk Factors, Forward-looking Statements, and Management's Discussion and Analysis of Financial Conditions and Results of Operations. The company is under no obligation to update any forward-looking statements except where as required by federal securities laws. Today's call also includes certain non-GAAP financial measures, including adjusted EBITDA; adjusted revenues; net income, excluding impairment of goodwill; diluted earnings or loss per share, excluding impairment of goodwill; adjusted EBITDA margin; free cash flow; and net debt. For details on these measures, including why we use them and reconciliations to most comparable GAAP measures, please refer to our earnings release and our Form 8-K that has been furnished to the SEC, both of which are available on our Web site. Now I’ll turn the call over to Mike.

Great. Thanks, Brendan. And before I start, I just want to mention that Brendan joined us in August as the VP of Investor Relations. He’s done a great job so far and we’re happy to have him as part of the team. So welcome to DHI Group’s third quarter earnings call. On today’s call, I’ll spend time discussing the results of our recent strategy review to reinvigorate growth in the company and the company’s decision to explore strategic alternatives. And I’ll also update you on operational items that we discussed last quarter. And then Constance will discuss our financial results for the quarter. And then finally, we’ll open up to questions. I’m pleased to announce that Luc Grégoire has joined DHI as CFO today and is with us on this call. Luc comes to us from Avepoint, a private equity backed enterprise software company and before had senior finance roles at Take-Two Interactive and McGraw Hill. He also worked at a number of other industries and was at Merck earlier in this career. He brings significant experience managing finance organizations notably in SaaS-based businesses. Considering that Luc just joined the company, Constance will give today’s financial update. Constance is our VP of Corporate Development and FP&A and has been with the company more than 15 years, including for a period of time as Head of Investor Relations back in the day. So in the past few years, we’ve talked a lot about the competitive pressures in our industry, as capital and new entrance are continually attracted to the favorable fundamentals of human capital management and specifically talent acquisition. We’ve worked to evolve with the industry to enhance our competitive position investing in technology and data analytics capabilities and launching new services like Open Web, getTalent and FreshUp and the Dice…

Thank you, Mike. Thanks everyone for joining the call. Today, I’m going to talk through key points in our third quarter financial performance and provide a fourth quarter outlook before turning the call back to Mike. Note that all comments in today’s review excludes Slashdot Media results in the previous year. Third quarter total company revenue declined 9% year-over-year, 7% on a constant currency basis and 3% excluding FX impact on the results of our energy business. Given the impact of energy’s performance on our results, we continue to provide a view of total revenue excluding energy. Key factors in the quarter include the following. The main driver of a 7% year-over-year decline in Dice U.S. revenue was the 6% decline in recruitment package customers at quarter end from 7,250 from 7,700 a year ago. The monthly average revenue per recruitment package customer for Dice was $1,122 in the current quarter, roughly flat on a sequential basis and up 2% compared to Q3 2015. ClearanceJobs revenue increased 21% year-over-year reflecting continued improvement in market dynamics for our business, product and marketing enhancements and the impact of the pay-per-performance product on customer spend. Revenues declined 6% year-over-year on an actual basis at eFinancialCareers where the impact of currency was felt the most. In contrast, revenue increased 4% year-over-year on a constant currency basis. Revenue at our energy business declined 55% compared to last year and we are seeing no improvement in the global market environment. In the quarter, we estimated and recorded a non-cash impairment charge of 24.6 million due to continued deterioration in the energy businesses’ financial results. This represents the full write-down of goodwill and intangibles for that business. Healthcare segment revenue declined 3% year-over-year reflecting the impact of the termination of three association partnerships on product usage by…

Okay. Thanks, Constance. So just in summary, we know we have work to do but I think we have the foundation in place to continue to build the business. The management team is excited about having this renewed, refined, refocused strategy on tech first and we think that gives us the underpinnings for growing the business in the future. In summary, I want to thank all our employees around the world who work hard very day to move this business forward and I’m appreciative of their support and help in moving us towards the future. With that, we’ll turn it over to questions.

Yes. Thank you. We will now begin the question-and-answer session. [Operator Instructions]. The first question comes from Youssef Squali with Cantor Fitzgerald.

Hi. Good morning. This is Kip Paulson for Youssef. Just a couple from me. First, why such a sudden drop off in Dice revenue and subscribers which continued into the fourth quarter? And when your clients churn or reduce spending, what is typically the top reason or two for doing so? And then secondly, Rigzone at 2.1 million for the quarter is the lowest we’ve seen it and theoretically comps should have already been improving by now. Is there still downward pressure from here and when do you think this line could start growing again? Thank you.

Sure. Can you ask the first question again? I want to make sure I cover the different elements, as you mentioned Q4 and I want to understand the context of the question.

Sure. So just why the sudden drop off in the Dice revenue and subscribers in the quarter, which guidance implies will continue into the fourth quarter? And when your clients do churn or reduce spending, what is typically the top reason or two when they do that? Thanks.

Yes, thanks for clarifying. So I think on the first piece, we’ve seen downward pressure on the Dice business for a while. The net change in customers in Q3 from a reduction standpoint was actually the lowest it’s been this year. But we continue to get pressure including on the non-recruitment package classified one-off business. And so that’s an element that we’ve seen actually over the last two years and I think that’s pretty common across the industry but has had an impact on us specifically. From a guidance standpoint, I would say that Q4 the expectation – we give a range of expectations. So I think what you’re seeing in Q4 is the ongoing falloff in the business not necessarily the accelerated rate, because it’s a range. But I think you’re seeing what we’ve seen earlier in the year. From a customer standpoint, one of the things we hear – the most common when we serve customers who leave us is that they don’t have a need. So remember from a tech standpoint, we address customers across a broad range and putting customers that are not typically long-term tech users. They may have an annual contract, because they had a number of roles to fill but the largest single response when we serve any of these customers is that they don’t have a current need. And keep in mind from a retention rate, I know we’ve talked about this lots of time in the past but just as a reminder, the retention rate which is around 70% or so, we get about half of the customers that we don’t retain in the month they’re up for renewal back at some point. These are following month or two months later or three, six months later. So that retention rate is…

All right, great. Thank you.

Thank you. [Operator Instructions]. The next question comes from Randy Reece with Avondale Partners.

Good morning. Can you hear me?

Yes.

Okay. I had a question about the implications for your other brands in the strategic shift toward emphasizing technology. Do you have an intention of divesting any brands or maybe turning the revenue mix within those brands in a different direction?

So the answer to that is no. The strategic alternatives process that I talked about earlier is for the whole company and the portfolio of businesses we have today. I think from focusing on tech first, as I described earlier and I’m happy to describe it a little bit more with some more specificity, is tech is half the business. Tech is an employment vertical that spans all industries and I think we believe gives us a greater opportunity to reach more potential customers, so we’re going to develop more of our energy to that. It doesn’t come at the expense of the other. So we think that the other brands in varying degrees will have derivative impacts. So I mentioned eFinancialCareers, BioSpace, which is the smallest of our businesses is somewhat tech focused and we think could benefit from that; certainly ClearanceJobs which is heavily tech focused and is a business that continues to grow nicely and has been growing nicely for a period of time. Those businesses will have derivative impacts but we believe that there are a couple of things that come from focusing on tech first. One, it expands our opportunity in that tech vertical across many industries. And two, it allows for us to bring new products and services not all of which are tech focused. So a business like getTalent which is designed for the whole enterprise having relationships throughout various businesses within different industries will give us an opportunity to sell those products. And those products like getTalent or Lengo or FreshUp can be sold by the other brands. So, for instance, some of the first customers of getTalent were healthcare businesses. And so the healthcare team has the ability to sell getTalent as part of its go-to-market strategy. So I think this focus of focusing on tech first, expanding our product portfolio, using tech as the linchpin opens up other avenues for the other brands. So the answer is no. We don’t have any plans to divest those today. We are talking about strategic alternatives for the whole company as a package.

The healthcare business in particular has been notably soft and it’s kind of in a parallel with the performance of your job posting trends in healthcare as well. And I was wondering if you could give us an idea of what has been going on in that marketplace this year?

Yes, so I think there’s a couple of things. Some are specific to us and some are industry in general. Certainly longer term – midterm and long term, there’s an increasing need for healthcare professionals and I think that will win the day over a long period of time. In the near term, we hear an awful lot of budget constraints. There’s consolidation in the industry. There’s pausing, uncertainty about funding and financing and consolidation and there’s concern at some level about single payer. There’s a lot of noise in the industry that while there’s an ongoing need, there’s a lack of impetus from a budget standpoint and that certainly impacts us. We think longer term, there’s a number of elements that will work in our favor but that impacts us in the near term as general. As it relates to us, this business historically has been based on relationships with associations. The environment for aligning with associations is incredibly competitive. We have gained some, we have lost some. There’s a shuffling of association relationships. In the meantime, we are investing in building the brand and have been investing in building the brand, Health eCareers, and trying to minimize at some level the pure reliance on those associations. And it showed some traction but it hasn’t resulted yet in increased usage and that together – we have some new products. The interest in those products is really high. The customer impetus to act on that and spend on those has been slow so far. So it’s a combination of external factors and something specific to us.

Thank you.

Thank you. [Operator Instructions]. All right, there is nothing else at the present time. So I would like to return the call to Mike Durney for any closing comments.

Okay. Thanks, Keith. So thanks for listening today. As always, we are available for follow-up questions to the extent you have any. So we’re here at your disposal. So please contact us and thanks again for listening, and have a good day.

Thank you. The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.