Good day, ladies and gentlemen and welcome to the PAR Technology Corporation 2017 Fourth Quarter and Year End Financial Results. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. Chris Byrnes, Vice President of Business and Financial Relations. Sir, you may begin.

Thank you, Victor, and good afternoon, everyone. I'd like to take this opportunity to welcome you today to the call for PAR's 2017 fourth quarter and year-end financial results review. The complete disclosure of our results can be found in our press release issued today at 4 p.m., as well as in our related Form 8-K furnished to the SEC. To access the press release and the financial details, please see the Investor Relations and News section of our Web site at www.partech.com. At this time, I’d like to take care of certain issues in regards to the call today. Participants on the call should be aware that we’re recording the call this afternoon and it will be available for playback. Also, we are broadcasting the conference call via the World Wide Web. So please be advised, if you ask a question, it will be included in both our live conference and any future use of the recording. I’d like to remind participants that this conference call includes forward-looking statements that reflect management’s expectations based on currently available data. However, actual results are subject to future events and uncertainties. The information on this conference call related to projections or other forward-looking statements may be relied upon and subject to the safe harbor statement included in our earnings release this afternoon and in our annual and quarterly filings with the SEC. Joining me on the call today is PAR’s President and CEO, Dr. Donald Foley; Bryan Menar; PAR’s Chief Financial Officer; and Karen Sammon, the company's Chief of Staff. I’d now like to turn the call over to Don for the formal remarks portion of the call which will be followed by general Q&A. Don?

Thank you, Chris. Good afternoon to each of you. I will begin today by highlighting our financial results for the fourth quarter, providing an overview of our business, and by discussing our strategy for 2018. I will then turn the call over to our CFO, Bryan, who will take a closer look at the numbers. We will conclude the call as usual by taking your questions. Fourth quarter revenues were $55.5 million, a decrease of 7.8% compared to the fourth quarter of last year. This decrease is attributed to the large hardware projects for a specific tier one restaurant customer in the fourth quarter 2016. These projects were completed in the first half of 2017. I am pleased to report that sequentially revenues rose $6.6 million, a 13.5% increase from the third quarter primarily due to the higher adoption of our EverServ terminals by both our tier one and Brink customers. On a GAAP basis, we recorded a net loss of $5.3 million and $0.33 loss per share in the fourth quarter compared to net income of $1.9 million and $0.12 earnings per share in Q4 2016. Our GAAP results included a total of $5.2 million of non-operating charges dominated by a non-cash deferred tax asset adjustment of $4.5 million associated with the recently passed Tax Cuts and Jobs Act. Bryan will add additional details later on the call. On a non-GAAP basis, we reported a net loss of $59,000 in the quarter and an earnings per share of zero. We remain focused on execution while balancing expense management and simultaneously making important and necessary investments in our strategic initiatives, especially or software solutions. Brink is the cornerstone of the strategy and by far our most important initiative. In the fourth quarter, we added 522 new Brink customers and for…

Thank you, Don, and good afternoon everyone. Product revenue for the quarter was $24.5 million, down $6.5 million, a 20.8% decrease compared to Q4 2016. During the quarter, the decrease in product revenue was primarily driven by the lapping of major project inflations in Q4 2016 for our hardware solutions with our tier one customers and our restaurant retail segment. Additionally, the hardware associated with deployment of Brink PoS, decreased approximately 800,000 versus Q4 2016 as we [lapped] [ph] an active installation period with Five Guys. Service revenue for the quarter was $13.8 million, up $0.8 million, a 6.4% increase compared to Q4 2016. We continued to expand our recurring revenue base which includes both software related services and hardware support contracts. Recurring revenue for the quarter was $9.4 million, up approximately $0.6 million, a 7.1% increase compared to Q4 2016 due to an increase in software of $1 million, offset by hardware support contracts down $0.4 million. Momentum continued with our deployments of Brink and SureCheck, noting a 90% increase of software as a service compared to prior year. We exited the quarter with approximately $7.5 million of annual recurring revenue from software as a service contracts. Contract revenue from our government business was $17.2 million, up $1 million, a 5.9% increase compared to Q4 2016. This increase was driven by a $3.5 million increase in our intelligence surveillance and reconnaissance, ISR business line, partially offset by a $2.4 million decrease in our PMO business line, as we wound down a large multiyear contract earlier in 2017. Contract backlog continues to be healthy as Don noted, total backlog of over $111 million, as of December 31, 2017. In regards to margin performance for the quarter, product margins for the quarter was 26.5% compared to 25.9% in Q4 2016 as…

[Operator Instructions] Our first question comes from the line of Joe Vidich from Manalapan Oracle. You may begin.

Congratulations on the great progress with Brink. My first question has to do with SureCheck and just if you could perhaps elaborate a little bit on whether you are going to just -- what you are going to do with that business, whether you are looking to sell it or just keep it in sort of an as is mode.

Well, we are looking at all options. Obviously, we want to monetize it for our shareholders. We do have our two anchor customers provide a lot of revenue. We are still investing and I said we were reducing the investments, does not mean we are abandoning the investment. It has potential. We are seeing new competitors which is in one sense a bad time but in other sense a good time. As the market matures, there is still some real opportunity for us and we are going to use 2018 to judge what that opportunity is.

Okay. I guess, just diving a little deeper into it, my assumption is that you have got limited resources and you have got this mass of opportunity with Brink and it seems like what you are saying is that you are really -- you want to take advantage of that and in the mean time is that sort of how you look at it?

I think you nailed it.

Okay. That’s great. The other question I had is just with regard -- this quarter you guys had the professional service charges of $2.7 million, and I was wondering if you had any idea if those charges are going to start to diminish going forward or if you are able to talk a little bit more about what the status of that investigation is.

Sure. What we saw during last year, we saw the phasing of those charges during last year diminish or be reduced as each quarter progressed. Obviously, we are in farther along stages within that to be able to predict exactly where we are going to come out in regards to the go forward phasing. We are not predicting -- we are kind of predicting to be consistent what we have seen play out '17 into '18 as we get to later stages and hopefully get through this within this first half of the year. But we are not having definitive deadlines on that.

Do you think that those type of charges will continue to that level or would you expect some sort of moderation?

As I said, where we are in the process is in the latter stages, so there was heavier activity earlier last year as we did a lot of the work and using outside advisors and doing the internal investigation that we are doing for our self reporting purposes. We have gone through that phase and now we are in the latter phases. So the activity has diminished and that’s what we project as we finish out through this year.

Thank you. [Operator Instructions] And our next question comes from the line of Walter Schenker from Maz Partners. You may begin.

A couple of questions on Brink. At what point will there be more information as to which laws would change your doing business with -- if I understood the release for the fourth quarter, about two-thirds of the new orders came from laws change, is that correct?

Karen, you want to take that one?

Sure, hi, Walter. So, yes, the large number of bookings in the fourth quarter were largely related to three of our major customers. We have mentioned them in the past in the call, however, we are looking to do a formal release with each of these customers. One customer in particular is in the process of doing a rollout over the next seven months and they contributed about 70% of those bookings for the fourth quarter.

Okay. So there will be, as you continue to install through these customers further information identifying, I actually only remember one being identified. Being identified as to how they maybe?

That’s correct.

Okay. And since I have got you, historically in talking about Brink, the company has not forecast but has set targets, multiyear targets going out a number of years for what they would hope or expect, whatever the right term is, the potential for Brink installations to be. Have you changed materially those expectations?

I don’t think that -- let me handle. We grew 70% the number of new stores last year. That is something to be really proud of. Our bookings that are outstanding that have yet to be activated is at our largest number. We are really proud of the growth. I believe, Bryan, you mentioned our software as a service revenue increased almost 90%.

Correct, and AR increasing 70%

So we are very proud of those numbers and we are going to stick with giving you numbers like that as we go forward in the future.

Thank you. [Operator Instructions] Our next question comes from the line of Edward Wedbush from Wedbush Securities. You may begin.

Yes. Are you able to give any economic forecasts for the current quarter and for the current annual 2018 year?

I will repeat the policy of our board. We do not give guidance.

All right. Second question I have, is I got acquainted with the founder of your company, and I have momentarily forgotten his name. Can you bring me any update as to how he stands?

You mean Dr. John W. Sammon Jr.?

Yes.

How he stands -- help me just to what you are looking for?

Well, I am looking for his health condition and any other information about him?

He is well. He remains active on the board. He is engaged with the business and the health and growth of the business and the investments in our software as we work through our transformation. So thank you for asking. He is doing well.

I got it.

And I can tell you two things, Ed, that we have a very active board, who is Dr. Sammon, who is Dr. Dr. James Stoffel, who is Cynthia Russo, includes Doug Rauch. They are all extremely active. They all give me and our whole management team here, extraordinarily useful guidance and advise and support. And I think as a management team, including all of our board members. And Dr. John Sammon, who was my [indiscernible] advisor many years ago, I have great respect for him. It's a very active board, including Dr. John.

Well, Dr. Sammon and I got involved long time ago, a couple of decades ago perhaps, when the net worth of PAR was below $50 million. It was I think approximately $38 million and our firm and myself, we bought stock from the PAR treasury to get it up to $50 million so the company would not be suspended from listing on the New York Exchange. And that’s where the relationship between him and ourselves got started, just as an information.

Well, thank you. Thank you very much.

And I am showing no further questions at this time. I would now like to turn the call back to Mr. Don Foley for closing remarks.

Just one more time I really thank you for your time and as we go through this transition I will repeat, I have great faith in our people and I am bullish on the future. Thank you very much.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone have a great day.