Good day everyone and welcome to the IDT Corporation's First Quarter Fiscal Year 2017 Earnings Conference Call. During management's prepared remarks, all participants will be in listen-only mode. [Operator Instructions] After today's presentation by IDT's management, there will be an opportunity to ask questions. [Operator Instructions] In today's presentation, Shmuel Jonas, CEO of IDT Corporation will discuss IDT's financial and operational results for the 3 months period ended October 31, 2016. Any forward-looking statements made during the conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature are subject to risks and uncertainties that may cause actual results to differ materially from those and the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that they have made or may make, or to update the factors that may cause actual results to differ materially from those they forecast. In the presentation, or in the Q&A that will follow, IDT's management may make reference to non-GAAP measures, adjusted EBITDA, non-GAAP net income and non-GAAP diluted EPS. A schedule provided in the earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP diluted EPS to the nearest corresponding GAAP measures. Please note that IDT earnings release is available on the Investor Relations page of the IDT Corporation Web site, www.idt.net. The earnings release has also been filed on the Form 8-K with the SEC. I would now like to turn the conference over to Mr. Jonas. Please go ahead sir.

Thank you, operator. Welcome to IDT's first quarter fiscal 2017 earnings conference call. My remarks today will focus on key operational and financial results for the three months ended October 31, 2016. Unless I indicate otherwise, results are for the first quarter of fiscal 2017, and are compared to the year ago quarter. For a comprehensive and detailed discussion of our results, please read our earnings release issued earlier today and our Form 10-Q which we expect to file with the SEC on or about Monday, December 12. Following my remarks, Marcelo Fischer, IDT's Senior Vice President of Finance and IDT Telecom's Chief Financial Officer will join me, and we will be glad to take your questions. Beginning this quarter, we enhanced our segment reporting structure by adding a new reporting segment, Unified Communications as a Service or UCaaS. This addition is intended to reflect a revolving operational structure and improved visibility into the performance of certain of our growth initiatives. Our financial results this quarter included a year-over-year decline in revenue and a decrease in SG&A expense, which significantly mitigated the impact of the revenue loss on our income from operations and adjusted EBITDA. Meanwhile, our bottom-line net income benefited from a number of factors particularly a one-time benefit from income taxes. IDT's aggregate revenue in the first quarter was $369.2 million, a decrease of $21.4 million from the year ago quarter, but a slight $1.1 million increase sequentially. In our largest segment TPS revenue declined $18.6 million, year-over-year to $360 million. Within TPS, retail communications revenue decreased $14.3 million in part reflecting our decision to significantly lower our rates to Mexico this past July due to changes in the market that we have discussed in the past. Wholesale carriers services revenue slid by $8.5 million primarily resulting from…

Thank you, sir. We will now begin the question-and-answer session. [Operator Instructions] And our first questioner today is Saidal Mohmand from GrizzlyRock Capital. Please go ahead.

Yes. Thanks for taking my question. I wanted to see, if you can provide any color on the incremental SG&A cost for the -- looks like all the new different initiatives that you guys have?

In terms of the entire amount spent?

Well, in terms of incremental which you guys are looking to spend over the next year or so.

I think that this past quarter actually probably had 75% to 80% or if you look at a run rate of what we plan to spend on a quarterly basis for it. Does that make sense?

Got it. Okay. So run rate, okay, this quarter is what you're saying in minus or a little bit extra, okay. And then, the other question I had a little bit, if you could talk a little bit on the cadence, how should we expect it to decline within the BOSS business particularly for the price and it looks like to be pretty significant price cuts in Mexico. How should we think about that?

As far as Mexico, I think that most of it is pretty much accounted for, maybe Marcelo has further thoughts on it.

Yes. Hi. As you know, I think as we reported, we took down the pricing to Mexico back on July 1 before the end of the last quarter. And since then, the reaction had been very much like we expected. We have seen a large stabilization in terms of the customer count in Mexico. We are still losing Mexican customers but probably at the -- just the 1/3rd of the clip of what we are losing prior to the price decline, so very much in line with what we projected that did have an impact obviously to our revenues and to our gross profit. And as we had mentioned in prior calls, our goal was to have adjusted cost structure and our businesses to all other destinations, so that we could neutralize to a large extent, the negative impact to margins and customer count as a result of the Mexico situation. And to a large extent our Q1 proved that to be the case.

And just to confirm, just confirm the severity of the price cut, I mean that was in the what 50% range give or take or how should we kind of model that?

It was more --

It was more than that, right. We took pricing from about $0.055 per minute to down to about $0.019 a minute to Mexico.

Got it. Okay. Thank you.

Sure.

[Operator Instructions] It looks like we have no further questions. So this will conclude our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect your lines.