Ladies and gentlemen, thank you for standing by. Welcome to the Sonus Networks Fourth Quarter 2015 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. As a reminder, this conference is being recorded Tuesday, February 16, 2016. I would now like to turn the conference over to Mark Greenquist, CFO of Sonus Networks. Please go ahead, sir. Mark T. Greenquist - CFO, CAO & Treasurer: Thanks. Good morning, everyone. Welcome to Sonus Networks Fourth Quarter and Full-Year 2015 Financial Results Conference Call. Joining me on the call today is Ray Dolan, President and Chief Executive Officer. Today's press release and supplementary data have been posted to our IR website at sonus.net and submitted to the SEC. A recording of this call and the transcript will be available on our IR website after the call. During our prepared remarks, we will be referring to a presentation with supporting information. Please take a moment to locate these documents as well on our IR website. As shown on slide 2, please note that during this call, we will be making forward-looking statements regarding items such as future market opportunities and the company's financial outlook. Actual events or financial results may differ materially from these forward-looking statements, and are subject to various risks and uncertainties, including without limitation, economic conditions, market acceptance of our products and services, the timing of customer purchasing decisions and revenue recognition, difficulties leveraging market opportunities, the impact of restructuring activities, and our ability to realize the benefits of acquisitions. A discussion of these and other factors that may affect future results is contained in our most recent Form 10-Q filed with the SEC and in today's earnings release, both of which are available on our website. While we…

Thank you. One moment please for the first question. And our first question comes from the line of Jess Lubert with Wells Fargo Securities. Please proceed with your question.

Hi, guys. Mark T. Greenquist - CFO, CAO & Treasurer: Hi, Jess.

Thanks for taking my question. A couple of quick ones if I may? Maybe just first I didn't hear the breakout of growth versus legacy. Can you give us a sense of how the two segments performed and as we think about 2016, what your expectations are for the growth versus legacy portfolios? Mark T. Greenquist - CFO, CAO & Treasurer: Sure. The gross revenue in total was $43.5 million, and legacy in the quarter was $32.8 million. So those were both up or – yeah, they were both up year-over-year and – well, the growth was up year-over-year and sequentially the legacy was up sequentially but down slightly year-over-year. And I don't think our view has changed on those going forward. I mean, if you look at the revenue that we did for the year, $250 million round numbers and as you know, roughly half – roughly $100 million of that is services, and then there's about $150 million a product and the growth related product is going to be roughly $100 million of that and legacy is $50 million. And we think the growth related product is going to be growing around 20% and maybe a little bit higher but probably around 20%. We think the legacy is going to shrink probably at least 10%, maybe a little bit more. So that's, again, when we talked in the third quarter, that's how we got to the mid-single digit total revenue growth year-over-year.

Okay. And then I was also hoping you could give us the enterprise versus carrier split and maybe touch upon some of the bookings momentum you're seeing there, how that kind of flows through on both the enterprise and carrier side? Mark T. Greenquist - CFO, CAO & Treasurer: Yeah, enterprise was 19% of revenue or product revenue in the fourth quarter and that was right on what the annual average was. Obviously in the fourth quarter, we see probably more budget flush there from the service providers so it does tend to be sometimes a little bit more weighted toward service provider, but this year it was at 19%. The enterprise was actually up a little bit from last year's 15% in the fourth quarter and it was right on the annual average.

And then maybe just last one for me as the first quarter in a while you haven't had a 10% customer. Was that expected? And when we think about the full-year forecast, can you help us understand to what degree that may also be more dependent on a higher volume of smaller deals like we saw in Q4? Or some of the VoLTE, voice over Wi-Fi, WebRTC opportunities you mentioned, some of those might drive a 10% customer in 2016? Mark T. Greenquist - CFO, CAO & Treasurer: Like we said in the fourth quarter, there was one customer that's historically been a 10% customer that was like very, very, very close but just didn't quite make it over the threshold. And then when you look at the mix of deals and the customer needs and everything in the fourth quarter, I mean it was very similar to what we would've expected and also experienced in the past even in the fourth quarter of 2014. So I don't think your characterization or your – maybe it's your concern that, hey, what is dependent upon a large number smaller deals is right. It's actually the various characteristics of the revenue mix were quite similar, and I do think that we'll probably have a 10% customer in the first quarter just based on what we're seeing so far. Ray, I think, wanted to add something there. No? Okay. Raymond P. Dolan - President, Chief Executive Officer & Director: That's good. Mark T. Greenquist - CFO, CAO & Treasurer: Thanks, Jess. Anything else, Jess? I'm sorry, Melody, go ahead.

That's okay. I apologize. Our next question comes from the line of Paul Silverstein with Cowan. Please proceed with your question. Paul Silverstein - Cowen & Co. LLC: Thanks. Good morning, Mark. Good morning, Ray. Mark T. Greenquist - CFO, CAO & Treasurer: Hey, Paul. Paul Silverstein - Cowen & Co. LLC: Hey, Mark. Picking up on Jess' line of questioning, the $43.5 million you cited for growth, was that a total or was that product? My apologies. Mark T. Greenquist - CFO, CAO & Treasurer: It's total. Paul Silverstein - Cowen & Co. LLC: Total. Can you give us a split between products and services? Mark T. Greenquist - CFO, CAO & Treasurer: The product growth revenue was $31.1 million and the legacy product with $16.7 million and then the services growth was $12.4 million and the legacy was $16.2 million I think it is, $16.1 million or $16.2 million depending on rounding. Paul Silverstein - Cowen & Co. LLC: I appreciate that. Would it be possible to get the enterprise split on a broad services basis the way you used to do it or you've been doing it? Mark T. Greenquist - CFO, CAO & Treasurer: Yeah, I mean – I don't have the services, Paul, I'm sorry. I mean, on a product revenue basis, the enterprise was 19%. If you look at it, enterprise on a growth product basis was a little bit higher, 21%, which is not surprising since the legacy revenue is almost all service provider. Paul Silverstein - Cowen & Co. LLC: And that enterprise growth, the 21%, that's enterprise growth products or that's enterprise growth total? Mark T. Greenquist - CFO, CAO & Treasurer: No, enterprise growth product revenue. Paul Silverstein - Cowen & Co. LLC: Product. You don't have the total enterprise?…

Thank you for your question. Our next question comes from the line of Dmitry Netis with William Blair. Please proceed with your question. Dmitry G. Netis - William Blair & Co. LLC: Dmitry Netis. Hi. Good morning, gentlemen. Mark T. Greenquist - CFO, CAO & Treasurer: Hey. How are you? Dmitry G. Netis - William Blair & Co. LLC: Good. Nice to see your steady progress. Mark T. Greenquist - CFO, CAO & Treasurer: Thanks, Dmitry. Dmitry G. Netis - William Blair & Co. LLC: A couple of questions. On the 7K, I'm just curious, is that about – how do we think about the mix of 7K versus the rest of the Session Border Control of products out there? Is it about 50%? Is it over? Has it hit over 50% threshold yet? Can you give us a sense of where that product line is tracking right now? Raymond P. Dolan - President, Chief Executive Officer & Director: Yeah, Dmitry, this is Ray. I'll approach it without putting specific numbers on it, but it definitely is our flagship. And from a service provider point of view, since it scales so well, it is the – I think it is the product of choice at least in the core network architecture. As you get to the edge of enterprise deployments, the 5K suite competes with that because it's so efficient in lower session density areas as well as the 1K/2K but the 7K is probably more than half of our SBC revenue. Dmitry G. Netis - William Blair & Co. LLC: Total? Not just service provider? Raymond P. Dolan - President, Chief Executive Officer & Director: Yeah, total. Dmitry G. Netis - William Blair & Co. LLC: Okay. All right. That's helpful. Thank you. And then as I look at…

Thank you for your question. Our next question comes from the line of Mike Latimore with Northland Capital Markets. Please proceed with your question.

Thanks. Very nice quarter there. Raymond P. Dolan - President, Chief Executive Officer & Director: Hey, Mike.

I guess, Ray, you mentioned there was a couple opportunity's in VoLTE interconnect has there been any decisions there yet of Tier 1 carriers? If not, do you expect a decision this year? Raymond P. Dolan - President, Chief Executive Officer & Director: We do expect some decisions this year, Mike, but I have nothing to announce with you today.

Got it. And that'll be generally with Tier 1 carriers or a mix? Raymond P. Dolan - President, Chief Executive Officer & Director: I think, yeah, Tier 1s as well as Tier 2s, definitely.

And then on the SBC 7K how important is video in terms of the carriers decisions there? Is a kind of a checkbox sort of thing or is it key to their decision around the 7K? Raymond P. Dolan - President, Chief Executive Officer & Director: I think it's evolved it went from a checkbox say a year ago to – my senses is that it's changing right now to more than that but people are exploring video growth strategies, you saw Cisco pick off Acano, for example, as the architecture is clearly moving heavy tele presence architecture to more of a web-based architecture for video, we expect those trends to accelerate so I think the 7K selection went from 2014 early 2015 checkbox to now one more that is strategic to their video growth strategies.

Got it. And just curious I know you have some cable operator customers can you give us some perspective on how big the cable sector is overall the percent of bookings to revenue or how important there? Raymond P. Dolan - President, Chief Executive Officer & Director: Great question, Mike. The cable industry is very important to our growth strategy. When I joined Sonus five years ago, we had zero cable revenue, we simply missed the access opportunity for the triple-play piece that cable was looking at. But the good news is we started investing about four years ago. We have been working with and selected and driving revenue from a number of North American cable operators, we're starting to see that go global. The bottom line is the cable industry is evolving very quickly from media companies to network access companies with some of their own media running over the top of their own pipe. And I would expect over the next 24 months, they're going to migrate from a DOCSIS model to an IP model they're just trying to figure out how. It's not an easy turnaround to do but the economics of doing it are very, very compelling and when they do that, they'll not only interconnect on an IP basis with the Telcos, which has been a great opportunity for us in North America but they'll move to access technologies over IP and they'll probably drive the majority of energy behind voice over Wi-Fi, which is another place that we're collaborating with them as well because they don't really, at this point in time, own traditional mobility networks. So all of those areas are very, very important for us from the standpoint of our growth opportunity, very exciting.

I'm curious on the enterprise business, how important is Microsoft Skype for Business, does it drive half of the enterprise business? Less than half? Raymond P. Dolan - President, Chief Executive Officer & Director: It's probably a little less than half, some of our enterprise business is large architecture multinational Fortune 40 banks, Fortune 50 banks, that kind of thing but we are seeing a nice migration amongst those large players to moving to UC seats a couple of our large banks of hundreds and thousands of seats that are moving into that Skype for Business environment it's a great opportunity for us to migrate them. We've been with those banks running contact centers for number of years and it's a great opportunity for us to help them move their edge works as well.

Last question, I guess, WebRTC, are you seeing interests initially here coming out of the context in our market or just kind of more broadly? Raymond P. Dolan - President, Chief Executive Officer & Director: I'd say it's both. We are seeing initial uptake in the contact center that is the traditional ATTP to SIP architecture but is broadening as well.

Thanks. Raymond P. Dolan - President, Chief Executive Officer & Director: Thanks, Mike. Mark T. Greenquist - CFO, CAO & Treasurer: Thanks, Mike.

Thank you. Your next question comes from the line of Greg Mesniaeff with Drexel Hamilton. Please proceed with your question.

Thank you. Mark T. Greenquist - CFO, CAO & Treasurer: Hey, Greg.

How are you? Mark T. Greenquist - CFO, CAO & Treasurer: Good. How are you doing?

Good. Good. I noticed the DSO levels came down again in the fourth quarter into the low 60s days range. Is that a good range to be modeling going forward, or is it conceivable that perhaps that we could see even a better situation unfold down the road? Mark T. Greenquist - CFO, CAO & Treasurer: I wouldn't say that it's going to get a lot better. In fact, for your modeling purposes, I'd suggest you float back up to like 70 or 75 days. I just think we had very, very good collections in the fourth quarter. And just to put that into context, I mean, remember we had very good bookings in the third quarter, so the revenue was pretty linear or more linear than it normally would be in the fourth quarter, and that's the main determinant of what our DSOs are going to be at the end of a particular quarter. So the revenue came in earlier, we collected it earlier, therefore we had less receivables at the end of the year than we otherwise would. I think you're going to – we're going to continue to have decent collections in the first quarter, but you're just not going to see the usual very large collections in the first quarter coming off of higher fourth quarter revenue and as a result, higher end-of-year receivables. So I actually think the DSOs in all likelihood will float back up a little bit higher. I don't think they're going to improve more, but in the end, again, it all depends on the linearity of the revenue in any particular quarter, and the fourth quarter was just really well set up to allow us to do that.

Got you. Thank you. That's very helpful. Mark T. Greenquist - CFO, CAO & Treasurer: Any other questions, Greg?

Oh, I'm sorry. We do have our next question coming from the line of Ryan Hutchinson with Guggenheim. Please proceed with your question.

Hey. Good morning, guys. This is Nate on for Ryan. Raymond P. Dolan - President, Chief Executive Officer & Director: Oh, hey, Nate.

Hey. Can you give us any updates on progress in terms of deploying software-based SBCs, specifically at the edge? Raymond P. Dolan - President, Chief Executive Officer & Director: Yeah, Nate, your question is – well, we've been virtualized at the edge for a number of years, but most of the time in the edge of networks it's still carrying some TDM legacy, which requires hardware instances, and that's as a result carrying the day right now at the edge of access networks. The 1K, 2K is a great workhorse in both of those environments, and is – they've been very effective products for us in those environments. We do expect that to change over time as TDM goes away, but it may take another year or two or three, and if it does, we'll continue to sell hardware based products. But we're seeing folks exploring software-based SBCs at the edge of networks, just not deploying them yet. I hope that answers your question.

Okay. Yes. So generally speaking, you've seen more explorations on the edge than in the core, correct? Raymond P. Dolan - President, Chief Executive Officer & Director: I would say we've seen people exploring them in both places because with all of these functions now being virtualized, it's a great opportunity for people to look at what's the right stack for the cloud going forward. It doesn't need to be precisely the way it was before. They can reorganize in the core of these networks, and we're working with all of the over-the-top cloud players to build a new Agile stack for resilient cloud and a secure cloud. So we're seeing the exact same opportunity to explore software-based in the core as we were on the edge.

Okay. And now that the core business is definitely stable, can you give us your thoughts on any areas where you're looking to augment the portfolio with M&A? Raymond P. Dolan - President, Chief Executive Officer & Director: Well, Nate, we're not going to get out ahead of our skis on that area, but if you just look at what our strategic areas of focus are, those are the areas that we're going to focus both organically in and inorganically in.

Yeah, thank you. Raymond P. Dolan - President, Chief Executive Officer & Director: Okay. Thanks.

Thank you for your question. Our next question comes from the line of Steve Cohen with Provo Partners (48:24). Please proceed with your question. Raymond P. Dolan - President, Chief Executive Officer & Director: Hey, Steve (48:31).

Recognizing that you can't talk a lot about the Verizon, can you indicate whether you would be sharing that opportunity with others or if there's some exclusivity there? And then going beyond just the Verizon, I note that you're counting on second half of the year revenue being about 54% of total based on midpoints of your guidance, which is up a couple percentage points from what you had been doing for most years. Is that WebRTC driven or there are other factors that you hope are going to drive that? Thanks. Raymond P. Dolan - President, Chief Executive Officer & Director: Yeah, thanks, Steve (49:10). First, no we can't get any deeper into the Verizon opportunity, so I'll just leave that question hanging. I apologize for that. Second, with regard to your second half ratios, I'd have to go back and calculate. I don't see that as some pattern in our revenue. What it really is is us giving you our best visibility into the first half and then calling the ball on the second half about flat year-over-year based on what we see as the market evolves. We'll give you more color on the second half as the year plays out and the math will just be what the math is. Mark T. Greenquist - CFO, CAO & Treasurer: Yeah, I don't think the second half at 54% of total is unusual. I think what was more unusual was the percentage of second half revenue as a percentage of total in 2015. I mean that was extremely high. I think it's actually coming back to something that I would consider to be more normal. I mean obviously 2014 was a little bit more front-end loaded, but I actually think that the quarterly pattern that were sort of calling for in 2016 is pretty much right straight down the middle.

Yeah, I wasn't looking at the 2015. I was looking at the 2012 to 2014 when it was down to 51%, 52% versus the 54% that you're now expecting and just wondering if that is just the way the arithmetic plays out or are there some specific opportunities that you're anticipating in the second half of the year. Raymond P. Dolan - President, Chief Executive Officer & Director: It's arithmetic, Steven (50:47).

Thanks. Raymond P. Dolan - President, Chief Executive Officer & Director: Thank you. Melody?

We have no further questions at this time. Raymond P. Dolan - President, Chief Executive Officer & Director: Okay.

We have no one queued up at this time. I'll turn it back to you for closing remarks. Raymond P. Dolan - President, Chief Executive Officer & Director: Okay. Thank you. Mark T. Greenquist - CFO, CAO & Treasurer: Thank you very much, Melody, and thank you for everyone that's attending this morning. If you're in the Northeast, let's get continue to warm weather. Thanks for your support to Sonus. We look forward to reporting our progress throughout 2016. Have a good day, everyone.