Good afternoon. I will be your conference facilitator today. At this time, I'd like to welcome everyone to the Manhattan Associates Second Quarter 2015 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions] As a reminder, ladies and gentlemen, this call is being recorded today, July 21, 2015. I would now like to introduce Mr. Dennis Story, CFO of Manhattan Associates. Mr. Story, you may begin your conference.

Thank you, and good afternoon, everyone. Welcome to Manhattan Associates 2015 second quarter earnings call. I will review our cautionary language and then turn the call over to Eddie Capel, our CEO. During this call, including the question-and-answer session, we may make forward-looking statements regarding future events or future financial performance of Manhattan Associates. You are cautioned that these forward-looking statements involve risk and uncertainties, are not guarantees of future performance and that actual results may differ materially from projections contained in our forward-looking statements. I refer you to the reports Manhattan Associates files with the SEC for important factors that could cause actual results to differ materially from those in our projections, particularly our Annual Report on Form 10-K for fiscal 2014 and the risk factor discussion in that report. We are under no obligation to update these statements. In addition, our comments include certain non-GAAP financial measures in an effort to provide additional information to investors. All non-GAAP measures have been reconciled to the related GAAP measures in accordance with SEC rules. You will find reconciliation schedules in the Form 8-K we submitted to the SEC earlier today and on our website at manh.com. Now, I’ll turn the call over to Eddie.

Well good afternoon, everyone. We continued to be quite pleased with the financial performance and optimistic about our near term and long term growth prospects. We’re very encouraged by the strong demand from customers and prospects as they continue to invest in omni-channel commerce enablement including supply chain, retail store operations and point-of-sale. Our success is driven by delivering leading innovation in an ever changing commerce market focusing on customer success and leveraging a deep demand expertise. We delivered record total revenue in Q2 of 139.1 million increasing 14% and record adjusted earnings per share of $0.37 increasing 28% over Q2 2014. Software license revenue for the quarter was 19.8 million, up 10% and we closed four $1 million plus deals in the quarter, three with existing customers and one with a new customer. All four of these large deals were in the U.S. and a large deal activity was driven by a healthy mix of platform base Warehouse Management Solutions, Transportation Management and Omni-Channel initiatives. And in two of the four large deals, we were successful head-to-head against very strong competition. Our sales teams executed well and our competitive win rates in head-to-head sales cycles against our major competitors remained strong at 75% or so for the quarter. Overall for the quarter, 30% of our license revenue was from net new customers. Now while we do remain cautious regarding the global economy and the associated forex headwinds with strong 2015 first half performance, we’re raising our revenue and earnings per share guidance for the full year and Dennis will share the specifics of our guidance adjustments in a moment. Our license pipeline is solid, services business demand is strong, customer satisfaction is solid and we continue to be the leading innovator in core supply chain, retail store operations and point-of-sale commerce solutions. And I’ll provide more color in my business update following Dennis’ review of our financial results.

Thanks Eddie. I’ll cover our Q2 2015 results and then review our updated 2015 full year guidance. While we posted organic revenue growth of 14% in the quarter totaling a $139.1 million, pretty strong when you consider, we took a 3 percentage point haircut on negative currency. And year-to-date with our top line being clipped for $7 million in FX, we’ve generated 15% organic growth, pretty strong. For the quarter, Americas continued its solid momentum with 19% growth while EMEA and APAC markets are trailing the Americas largely influenced by paucity of macro-economic growth. Europe posted 8% total revenue growth and APAC was down 40% on a lumpy license revenue comps. Adjusted earnings per share for the quarter was $0.37, up 28% over prior year. Excluding negative currency impact, adjusted EPS grew 31%. We expect the currency headwinds to continue in the second half. Our Q2 2015 GAAP diluted earnings per share was a record $0.35 growing 30% over Q2 2014. For your reference, a detailed reconciliation of GAAP to non-GAAP adjustments is included in our earnings release today. So on license revenue for the quarter, we totaled 19.8 million. Americas posted license revenue of 17.3 million, EMEA 2.1 million and APAC $350,000. As always our license performance depends heavily on the number and relative value of large deals we close in any quarter. And with the sluggish global macro and FX headwinds, we are targeting a license growth goal of about 9% for full year 2015. Shifting to services, demand continues to be solid. Q2 services revenue totaled $107.3 million increasing 15% over prior year. Our services revenues comprised of two revenue streams consulting and maintenance. Consulting revenue for the quarter totaled a record $76.5 million, growing 17% over Q2 2014. With strong demand and visibility, we continue to…

Thanks Dennis. As I mentioned, we posted strong 2015 first half performance with solid execution, despite a pretty tipped global macro environment particularly in Europe and Asia. Digital commerce and technology modernization programs continue drive significant long term growth opportunities for Manhattan Associates. And through innovation, Manhattan is driving the fusion of core supply chain, retail store operations and point-of-sale capabilities into the market. We’ve been quite active in the first half growing our business integrating our mobile clienteling and point-of-sale platform, driving market awareness of our retail store and POS capabilities and taking market share from that competition. We continue to see solid progress in our core verticals led by retail with a meaningful portion of our WMS and non-WMS license and services revenue continuing to be driven by existing a new customer omni-channel initiatives and the reinvention of their supply chains. As I discussed at beginning of the call, we’ve recognized four large deals in the quarter, all four were in retail, two were in what we would consider classic retail, one in pure play ecommerce and one in drug store retail. All deals were driven by strategic technology modernization programs with two of the deals driven by omni-channel initiatives and one led by transportation. In Q2, our license fee mix was weighted at about a 55%-45% split between Warehouse Management and our other solutions with a meaningful portion of both WMS and non-WMS license and services revenue driven by existing and new customer omni-channel initiatives and legacy supply chain modernization. The retail consumer goods and third party logistics verticals whereas strongest license fee contributed, making up more than half of our Q2 license revenue. Q2 software license wins with new customers that have permitted us to show their names include Banaja Holdings, Costa Del Mar, Gold City…

[Operator Instructions] Your first question comes from the line of Mark Schappel from Benchmark. Your line is open.

Hi good evening and nice job in the quarter. And Eddie, I have a couple of I guess a big picture type questions here this afternoon.

Sure Mark.

I was wondering if you could just address maybe a little bit more detail, how your solutions address the challenges associated with omni-channel retailing? What specifically are your solutions providing in that part of picture?

Yeah, good question Mark. Probably it’s a pretty detailed question and the answer I think is - would be a long one. But at the end of the day, we are trying to make sure that we can bring to the retail community the ability for them to be able to blend selling channels, all selling channels into one for their consumer community, so that you and I as consumers have a very consistent experience across all of the channels that we want to buy from. And as you look at the retail side of the house making sure that retailers can execute on fulfilling our needs in a very consistent and seamless way at a high level. In order to be able to do that we believe that retailers need a single view of their entire inventory pool across every node of their supply chain whether it be inventory that’s in transit to them at their distribution center, at their retail store, at franchisees or anywhere else in the supply chain. And also a single view of the customer again across all the channels of which they shop and ultimately being able to match the demands of the customer to that single inventory pool in an effective and efficient way.

Okay, great. And along those lines, available to promise is kind of a big part of this as well, and [indiscernible] coin the term ‘available to commerce’. I was wondering if you maybe just go into - maybe get a little bit too deep in weeds but just try to go into a little bit more detail on how available to commerce just differs from the classical available to promise if you will?

Yeah, so I’ll try to do in a nutshell. In a nutshell, available to promise anticipates inventory coming into the supply chain. So if you are a retailer, you have ordered 1,000 units from your manufacturer, you may begin to start promising those items to your consumers before they arrive which sometimes you have to do, but have some risk frankly associated to it. Available to commerce gives retailers the ability to be able to make that absolute commitment to the consumer. We can promise to get that product to you because we know in real time exactly what the inventory position is across the network. So it’s a very simple example, when you go into a retailer’s website and you say hey, I like to buy this product but I want to pick it up in one of your stores, right. It wouldn’t be uncommon for that retailer via their website to promise you, commit to you that within 30 minutes that product will be ready to be collected. They certainly don’t want and can’t disappoint you. You can’t go to that retail store having got that commitment and find the inventory is not there. So available of commerce is focused on insuring that this is a real time view of inventory across the network, number one, but maybe most importantly gives the retailers the ability to be able to segment inventory by selling channel so they could commit units to bricks and mortar, catalog, online orders and franchisees.

Okay, great, thank you. I know that’s - it’s tough to do in a short timeframe here. Something a little bit easier here, Dennis, moving to you on the cash flow side, cash flow from operations looked very healthy this quarter especially compared to a year ago quarter. Could you just remind us if there was something a year ago that caused cash flow to be so low, if there was a like a onetime hit?

Yeah, we paid incrementally in the first half 18 million more in taxes in 2014 than in 2013.

Great, thank you.

Very good. Thanks Mark.

By the way, this quarter’s operating cash flow is a second best quarter in the history of Manhattan Associates.

Your next question comes from the line of Terry Tillman from Raymond James. Your line is open.

Hey, good afternoon, gentlemen. Can you all hear me okay?

We can, Terry yeah.

This is becoming old hat, nice job on the quarter.

Thank you.

First question just relates to, I mean we have - and I am not trying to jinx you guys but the number of quarters in a row now where the license revenue has been at least modestly above our estimates and I guess just two estimates, but the point is consistently above our assumptions. I am wondering is it something around just the activity level that the level of pipeline, [indiscernible] pipeline has just gotten stronger because of either omni-channel or maybe U.S. healthiness, or is there something about close rates that have improved because it’s notable of this consistent track record on license now?

Yeah, I think it’s - I think it’s a little bit of both Terry. There is no - as you know there is no kind of silver bullet here to bringing license revenue in for the quarter, we still are subject to a little bit of lumpiness, we are still subject to big deal timing. But I do think our close rates are solid. We are seeing good momentum particularly in retail and omni-channel initiatives. And frankly, hats off to our sales team who are executing very well across the globe.

Okay. And I guess Dennis, you talked about strategically investing in R&D, I think that was in your prepared remarks versus Eddie’s, so hopefully I get that right. And if that’s the case, what I am curious about what does that mean though, I felt like there was a different language and could that entail potentially M&A as a route to get the strategic investment in R&D?

We never discount that but the lean would be really more towards investing and growing our intellectual capital, headcount, Terry.

Okay. And I guess the last question on the retail store side, which is definitely newer stuff for your guys. If I am not mistaken Lilly and Vernon, you all talked about at the user conference. Eddie were you talking about another signature win or is it still too early to be talking about other wins and how should we think about that business evolving versus the omni-channel/order management business, could it evolve more rapidly, about the same or maybe a little bit more lagging?

Let’s see, a couple questions in there Terry and all good ones. But the way was Lilly Pulitzer that presented at Momentum - and no problem, just wanted to make sure that we were clear there. And I wasn’t talking about another particular signature win during the prepared remarks. But with regard to the momentum and the focus around retail store solutions and so forth, we’re seeing - we are certainly seeing a lot of interest. Your question was should we expect to see that business developing faster than order lifecycle management business. It looks a little bit like order lifecycle management of a few years ago, there is a great deal of interest out in the marketplace. The buying cycles are still very long at the moment, you are seeing early adopters you know kind of get onboard. And I think it will be 18, 24 months in my view before we start seeing consistent buying cycles in that space much like the ones we are now seeing in the order lifecycle management space.

Okay, all right, thanks guys.

Sure, thank you, Terry, I appreciate it.

There are no further questions at this time.

Okay. Well thank you very much everybody for joining us this afternoon. I appreciate your time. And we will certainly look forward to updating you on Q3 results in about 90 days or so. Good afternoon.

That concludes today’s conference call. You may now disconnect.