Good day, ladies and gentlemen and welcome to the Fourth Quarter 2015 Support.com Inc. Earnings 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 be given at that time. [Operator Instructions] As a reminder, today’s program maybe recorded. I would now like to introduce your host for today’s program Michelle Johnson, General Counsel of Support.com. Please go ahead.

Thank you. Good afternoon, everyone. Joining me here today is Elizabeth Cholawsky, our President and Chief Executive Officer and Roop Lakkaraju, our Chief Financial Officer and Chief Operating Officer. Before we begin, I would like to remind everyone that our remarks today will include forward-looking statements about our future financial results and other matters. There are a number of risks and uncertainties that could cause our actual results to differ materially from expectations. These risks are detailed in today’s press release and the reports we filed with the SEC, all of which can be found through the Investor Relations page of our Web site at www.support.com. I would also like to point out that we will present certain non-GAAP information on this call. All numbers presented today are non-GAAP unless otherwise stated. The reconciliation of GAAP to non-GAAP financial measures is included with today’s press release and also on our Investor Relations Web page. The statements we’ll make on this conference call are based on information we know of as of today. And we assume no obligation to update any of these statements. With that, I’ll turn it over to our President and CEO, Elizabeth Cholawsky.

Thanks, Mitchell. Good afternoon everyone and welcome to our fourth quarter and year-end 2015 earnings conference call. In today’s call, we will discuss progress in both services and our SaaS offering Nexus along with an overview of the opportunity in front of us. We are driving towards the long-term goals we presented at our 2015 Investor Day. Our 2016 plan reflects a focused strategy and in our conversation today, we would like to provide you more details about our business than we had done previously. Let me start with a quick overview of the quarter and then Roop will discuss further details later in the call. We met or exceeded the revenue and EPS guidance that we provided. Revenue came in at 15.7 million at the high-end of our revenue guidance of 14.8 million to 16 million. Non-GAAP loss from continuing operations for the quarter came in at $0.08 per share better than our guidance of a loss of $0.10 to $0.12 per share. For the full year, revenue was 77.3 million and non-GAAP loss from continuing operations with 10 million or a loss of $0.18 per share. With regards to Nexus, the rate of customer additions in 2015 did not meet our expectations and as a result, we fell short of our 1 million annual recurring revenue and 1,300 to 1,600 seat goal. We ended the year at 488,000 in annual recurring revenue and year-end total seats at 727. While we entered the fourth quarter with a strong pipeline, we experienced weaker than expected sales as a result of increased product performance enhancements required by our customers, and our need for deeper enterprise sales acumen. Our Q4 pipeline includes new prospect and customers looking to license additional Nexus seats. Both have maintained interest and are continuing with their Nexus…

Thank you, Elizabeth. Total revenue for Q4 was 15.7 million compared to 22 million in Q4 2014 and 17.9 million in Q3 2015. Services revenue for the quarter was 14.4 million compared to 20.6 million in Q4 of 2014, and 16.6 million in Q3 of 2015. As expected, services revenue decreased sequentially as Comcast continued with their efforts to improve the Wireless Gateway customer experience which resulted in lower call volume, offsetting the sequential decline in Comcast revenue, which revenue from other programs including our large North American service provider. Software and other revenue was 1.3 million in Q4 2015 flat from Q4 2014 and from Q3 2015. The Q4 2015 revenue mix was 92% services and 8% software, compared to 94% and 6% respectively in Q4 2014 and 93% and 7% respectively in Q3 2015. Total revenue for the full year was 77.3 million, compared to 83 million in 2014. In Q1 and for the full year 2015 both Comcast and Office Depot contributed more than 10% of total revenue. Comcast and Office Depot represented 66% and 15% of Q142015 total revenue respectively. For the full year 2015, Comcast represented 68% of our total revenue and Office Depot represented 15%. Overall, non-GAAP gross margin for Q4 was 17% compared to 22% in Q4 2014 and 19% in Q3 2015. This is higher than the Q4 guidance of 12% to 13% we issued, because of improved productivity in our Comcast programs and an efficient launch how large North American service provider program. In Q4, non-GAAP services gross margin was 11% compared to 17% in Q4 2014 and 14% in Q3 2015. As expected, Q4 services gross margin was infected by three revenue investments such as the hiring of work from home technicians and supervisor staff associated with our new large…

Certainly. [Operator Instructions] Our first question comes from the line of Joe Fadgen from Craig-Hallum, your question please.

Yes hi guys I am here for Chad, so thanks for taking the questions. I appreciate all the extra color this call, one for you on the Nexus product. So, if we’re looking into 2016 I guess first one actually first one I think that you said your target was 2,600 to 3,000 seat licenses. I guess can you talk about like how many seats you’ve got kind of in the pipeline and what you assume or what kind of close rate you would assume for those?

We’ve got a strong pipeline as I alluded to going into the year. I don’t want to comment specifically on the number of seats and also I just want to remind everybody that this year’s Nexus ARR is going to be seats which come from the agent support product as well as from our self support capabilities which is the part of the product facing to consumers and gets charged on a usage basis. But I think we’ve got the ability to closing in the range that we’ve got and announced for 2016 and we feel pretty good about that.

Yes and Joe if I can just add additional couple of comments. One of the things we’ve noticed with our pipeline for Nexus is its continue to grow and part of what’s included in that pipeline is service organizations, product companies as well as IoT focus such companies and part of what’s developed over the course of near-term as more enterprise type deals which tend to have longer sales cycles times when we come to realize that. And so overall we’ve entered 2016 with a healthy pipeline with the type of prospects that Nexus is geared for.

Okay. And then another one on Nexus I mean you talked about in respect to OpEx to grow sequentially with some investment in Nexus I guess whether it's for the March quarter or even the like fiscal ’16 if you can say that would be great. I guess how much investment do you expect to go into Nexus or like if I am thinking about like to OpEx for the full year how much of that is going to be Nexus related just trying to get an idea of how much you put into product development there.

Yes. As we've indicated and we invest both in our services area as well as into the Nexus area from an OpEx standpoint it's primarily Nexus and I don’t think at this point in time we are really prepared to give you a sense of specific operating expense numbers associated with them. But as you can see we’re looking at margins exiting the year in the low to mid 20s we’re expecting Q1 to be 17% to 19% overall company margin so you can see kind of the projected revenue improvements there. And then from an operating expense standpoint netting that down we expect EPS to be somewhere between $0.20 to $0.24 so you kind of seeing that the middle part and the majority of that operating expense would be Nexus oriented both with product development and go to market capabilities.

Okay. And then last one sounds like the Comcast business is going to be a little bit better maybe then expected in 2016 is that the higher revenue run rate that you are talking about this just seems kind of the gross margin profile of the Comcast relationship? Is that different than normal or different than may be expected before?

No, it doesn’t change the margin profile as we indicated in our prepared remarks they renewed their contracts for another year as we had expected. There is no pricing changes or anything of that sort as a result of the renewal and really it's the higher revenue and then with our operational effectiveness delivering the kind of gross margins that we've been delivering recently and Comcast as well as all of our other services programs are all positive gross margins and obviously drive towards being able to invest back into the rest of that company.

Thank you. Our next question comes from the line of Mike Latimore from Northland Capital Markets, your question please?

Hi. This is Jim Fitzgerald came in for Mike Latimore. My first question here on Comcast. Can you just talk a little bit about why you decided to increase guidance there maybe what kind of things they’re telling you? And then secondly I know historically Comcast has given you a forecast of only a few months and it sounds like that might be changing a little bit, can you talk about that if there is time to give you all of those longer term forecast?

Yes, maybe let me start with the longer term forecast. They are not giving us necessarily a longer term committed forecast. The contract is still subject to kind of that those 45 day periods of locked forecast, so that hasn’t change. What we were able to do with them though is work with them on understanding kind of what their overall call volume is based on the improvement efforts that they have been driving and as part of their 2016 planning cycle we were able to understand what that means from an overall call volume and what that might result in for us as a vendor for them in this wireless gateway area, and so really it's with that additional confidence that we then felt it was important to update the investment community around what we've previously indicated of a $6 million or $7 million per quarter revenue run rate and give you an updated view towards that obviously it's to the best of our knowledge at this point in time, but we feel very comfortable with where they are at and what they are doing and where we are supporting them and the level that we’re executing at with them.

Great, and then turning to acquisitions so I mean you guys talked at the Analyst Day about your acquisition strategy and I think you had said that you would look at acquisitions that further your Nexus platform. Can you talk a little about your strategy there right now and if that's still the case we talked about the Analyst Day and if there is anything in the pipeline or if that's an active priority for you guys?

Yes. As we did talk about Investor Day we would consider acquisitions to accelerate the growth of our cloud-based programs. So, we are still actively on that in terms of that being part of the strategy the profile of acquisitions that we've discussed is around supplementing technology that we get Nexus more applicable to a broader set of customers, there are other market segments as well as come with some amount of revenue that we could start working with right away we just set a parameter on the acquisitions of sending accretive and within a few quarters certainly within the first year. So we've got a profile of acquisition we are actively and have been looking at the possibilities there and we will keep you posted as things come up.

Okay. And then lastly, can you just talk about the Office Depot relationship a little bit what you guys expect from them this year?

Yes, yes. So the Office Depot relationship is still very strong we are working with them on new programs, we’ve got some new technology initiatives that we’re working with them to support their services programs. So it’s all still as strong as we’ve talked about in the past, things are going on as usual the contract will renew mid-year sometime and we’re working towards that now. But we see that all very positively at this point in time.

Thank you. This does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Elizabeth Cholawsky.

Okay. Thank you all for your time today. And we’re looking forward to continuing dialogue with our investors and keeping you updated on our progress throughout the year. Thanks. Have a good day.