The Roper Technologies' Second Quarter 2016 Financial Results Conference Call will now begin. I will now turn the call over to John Humphrey, Chief Financial Officer. John Humphrey - Chief Financial Officer & Executive Vice President: Thank you, Matt, and thank you all for joining us this morning as we discuss our second quarter financial results. Earlier this morning, we issued a press release announcing our results. Press release also includes replay information for today's call. We have slides to accompany today's call, which are available through the webcast and also on our website at www.ropertech.com. If we please turn to slide two, we begin with our Safe Harbor statement. During the course of today's call, we will make forward-looking statements, which are subject to risks and uncertainties as described on this page and as further detailed in on our SEC filings. You should listen to today's call in the context of that information. Next slide. Today, we will be discussing our results for the quarter primarily on an adjusted non-GAAP basis. A full reconciliation between GAAP and adjusted measures is in our press release this morning and also as a part of this presentation on our website. For the second quarter, the difference between our GAAP results and adjusted results consist of two items. First, the $2.5 million purchase accounting adjustment to acquire deferred revenue or software acquisitions that we've made. This represents revenue that those companies would have recognized, if not for our acquisition. Second, a small inventory step up expense, related to the acquisition of RF IDeas last year in the fourth quarter. Now, if you please turn to slide four, I'll turn the call over to Brian Jellison, Chairman, President and Chief Executive Officer. After his remarks, we'll take questions from our telephone participants. Brian? Brian…

Thank you. We will now go to our question-and-answer portion of the call. We will take our first question from Deane Dray with RBC Capital Markets.

Thanks. Good morning, everyone. Brian D. Jellison - Chairman, President & Chief Executive Officer: Hey. Good morning, Deane.

Hey, Brian or John, I was hoping, you could start with bridging the guidance for third quarter and fourth quarter, just looks like the guidance cut here this morning is weighing higher obviously on the third quarter, down 12% versus consensus, but you're not as severe in the fourth quarter. And maybe is there some seasonality, is it the comps getting easier, better visibility on these product launches, but just some color there on the difference here, assumptions in the third quarter and fourth quarter? John Humphrey - Chief Financial Officer & Executive Vice President: Yeah, Deane. So, you did touch on it. So one of the things that we're expecting for this year is maybe not historically strong from a seasonality perspective but stronger than what we saw last year. And that's not just on the Energy businesses, but also on some of the other Industrial businesses that have some more seasonal activity as customers flush out some of their budgets. So we do expect that for the fourth quarter and that's why, you see slightly higher in the fourth quarter than the third quarter as we look forward to this. My answer must have left everyone dumbfounded. Are we still live on the call here?

Yes, you're still live. John Humphrey - Chief Financial Officer & Executive Vice President: Okay. Brian D. Jellison - Chairman, President & Chief Executive Officer: All right. Next question. John Humphrey - Chief Financial Officer & Executive Vice President: So next question, Matt.

We will now hear from Robert McCarthy with Stifel, Nicolaus & Company. Robert McCarthy - Stifel, Nicolaus & Co., Inc.: Deane must have dropped the mic. Good morning, everyone. How're you doing? Brian D. Jellison - Chairman, President & Chief Executive Officer: Hey. John Humphrey - Chief Financial Officer & Executive Vice President: He must have. And well, if he comes back we'll insert him back into the queue. Robert McCarthy - Stifel, Nicolaus & Co., Inc.: Okay. In any event, maybe you can talk about the Medical business in terms of maybe amplifying your comments around the product launches, the favorable compares to MHA. And then what drives to 6% organic growth versus the 9% organic growth kind of for the back half? Brian D. Jellison - Chairman, President & Chief Executive Officer: So we had – give Neil Hunn a chance – he's responsible for the Medical and software businesses there an opportunity to explain. The pipeline is growing candidly more rapidly than we could have even hoped for. And he can tell you a little bit about what these new launches at Sunquest are designed to do, so Neil with that fire away.

Good morning. Yeah, the second half is – have strength across the board. I'll break it down by product and software. On the product side, there's new products at Verathon that continue to gain traction. On the software side, a number of – I think we've talked about before, a number of faster-growing software businesses turned organic, Strata, Data Innovations, SoftWriters, SHP. And then with the second half really at MHA, we see likely, well they are easier comps and then the market conditions around new customer adds give us an opportunity to do better in the second half than the first half. Brian D. Jellison - Chairman, President & Chief Executive Officer: But I think people are more interested with Sunquest, so let's just talk about the launch of the new – you've got four major offerings and then you've got mid-teens in terms of enhancements and upgrades at Matt's group are putting in place that we're already starting to solicit revenue. So you might explain what those things do.

Well, Sunquest, very excited about Sunquest. The reality of the Sunquest is we have worked very hard for the last 18 months on a series of new products. We've talked about those number of new products that are being brand new or material upgrades or enhancement increases being in the high-teens. We're on track for all of that. We've just come off a great user conference at Sunquest, where the customers were excited about the roadmap and what was happening. We've seen a pretty meaningful increase in the pipeline, the sales pipeline, the sales funnel activities that you'd expect to see coming behind a large number of new products. We'd like to see that pipeline convert in the second half. We expect it to convert in the second half. So, we'll see bookings momentum and then that will give us the momentum heading into 2017 for Sunquest that we've talked about in the past. Robert McCarthy - Stifel, Nicolaus & Co., Inc.: And switching gears to M&A capital redeployment. I think the messaging maybe up until this call has been a little more muted in kind of the second quarter given where public valuations are for a lot of companies, given where the cost of funds is. Maybe can you just talk about – do you think it's a difficult environment to transact deals, just given political uncertainly, a tentatively rising stock market, with an improving valuations and public fundamentals kind of bleeding into private fundamentals? And then kind of perhaps some of your companies thinking about the alternative route for initial public offerings. Could you just talk about how you look at this environment, and how do you think Roper's going to be able to transact in this environment and what kind of cadence you guys can transact in?…

We will now hear from Joe Giordano with Cowen & Company. Joseph Giordano - Cowen & Co. LLC: Hey, guys. Thanks for taking my questions here. When you – I don't want to beat on Sunquest too much, you've really talked about it, but can you kind of get into a little bit more detail what these new products are actually? Like what actually are they, how are they expanding the platform and maybe talk a bit about the competitive dynamics in that market versus you guys and that bit of concern, how that's been progressing over the last maybe 12 months or something like that? Brian D. Jellison - Chairman, President & Chief Executive Officer: Yeah, it's a great question Joe. So Neil, why don't you kind of explain these four core products and then all the enhancements.

Sure. Well, I appreciate the opportunity. So let me give you a 30 seconds on the importance of what Sunquest does for our customers. So Sunquest customers are the largest, most complicated laboratories in the United States. These are laboratories that do millions of tests a year. And what our software does is automate from start to finish the laboratory processes. So you get super high quality results at low cost to operate the labs. So what Sunquest, the new – the turn of products ready at Sunquest is to extend that capability that's been steeped in the blood side or the fluid side of the lab and extend it to the other parts of laboratory. So first is a major product that is the integration of the pathologies inside a hospital. So it integrates the blood and to the tissue, to the molecular genetics, very important product for us and for our customers as they deliver medicine inside of their institutions. The second one is a completely refreshed view about how do you collect samples at the bed side. It's mobile enabled, it's integrated into a nurse workflow, important in terms of getting the draws correct, at the right location, with the right patient and get it to the laboratory as quickly as possible. The third category of new products is helping the hospitals extend their reach into the communities, importantly in the changing reimbursement landscape in U.S. healthcare, hospitals want the laboratory samples that are in the community, meaning where the physicians that feeds patients into their hospitals, they want the blood tests that are collected and all the laboratory tests that are collected in the physicians' offices to be routed into the hospitals or laboratory not just to drive volume in laboratory but to get the clinical…

Our next question comes from Joe Ritchie with Goldman Sachs. Joe Ritchie - Goldman Sachs & Co.: Thank you. Good morning guys. John Humphrey - Chief Financial Officer & Executive Vice President: Good morning Joe. Joe Ritchie - Goldman Sachs & Co.: So, my first question's on the portfolio. Brian, clearly Energy's surprised to the downside, Industrial remains weak. But – and you guys are continuing to evolve as a technology company. I'm just wondering whether any of the end-market dynamics have kind of changed your view about the portfolio, wonder if there's any potential divestitures that you guys are considering. Brian D. Jellison - Chairman, President & Chief Executive Officer: No. I'd say the answer is no. You know what, we went into the year thinking that we'd be down about $100 million on oil and gas, which comes in a little bit into Industrial, mostly into Energy. I'm sorry, thought we'd be down about $75 million, now we're going to be down $100 million. So, that $25 million extra negative situation on revenue is disappointing because it comes in at 50% or frankly 60% contribution. So, it's a big EPS number. It doesn't really diminish our cash performance by much at all. And, those businesses at the moment are just a free shot on goal for 2017 and 2018. They're on the books for well – extremely low basis. So, the only way if you were going to do something with them, you'd want to do either a straight spin or a sponsored spin or you'd want to do an RMT with somebody. It'd be safe to say that our phone's been ringing off the hook with people who want to do those kind of things. But we actually think there are substantial upside in those business, just…

Our next participant is Christopher Glynn with Oppenheimer. Christopher Glynn - Oppenheimer & Co., Inc. (Broker): Thanks. Good morning. John Humphrey - Chief Financial Officer & Executive Vice President: Morning. Christopher Glynn - Oppenheimer & Co., Inc. (Broker): If we look at the tolling and traffic timing, maybe dive into that a little bit more. I think you called out another $25 million or so second half headwind. I guess that's a mix of Riyadh and non-Riyadh pieces, but – is just a – does this project strength into the first half of in 2017, is that the best way to think about that? Brian D. Jellison - Chairman, President & Chief Executive Officer: Well, there is no question about this. John Humphrey - Chief Financial Officer & Executive Vice President: Yeah. Brian D. Jellison - Chairman, President & Chief Executive Officer: I mean, yeah that – the decision process – I mean look that decision's made, it's done, we've started, but we would have expected it to be in the thirties of millions of dollars and totally offset some of the issues with Puerto Rico. It's going to be above $10 million. How much above that is hard to say. If you'd really – they're doing a massive transit system over there. They've got lots of priorities. They're extremely happy with our performance. We're happy with the relationship. It's going to be extremely valuable over a long period of time, but in the short run, we're going to likely get at least $20 million less than we expected in the beginning of the year. And we've got somewhat less in the quarter. In this quarter and all of our numbers issues are really just around the severity of the upstream being far worse than we thought and the toll…

Next we will hear from Richard Eastman with Robert W. Baird. Richard Eastman - Robert W. Baird & Co., Inc. (Broker): Yes, good morning. Brian D. Jellison - Chairman, President & Chief Executive Officer: Hey, good morning. Richard Eastman - Robert W. Baird & Co., Inc. (Broker): Brian or John, could you just speak for a second, the order number that you've put up there, what was the core order number in the quarter? John Humphrey - Chief Financial Officer & Executive Vice President: Organically, orders were up 2%. Richard Eastman - Robert W. Baird & Co., Inc. (Broker): Plus 2%, okay. And then, the assumption would be that that's pretty much driven by Med-Scientific is that reasonable core order? John Humphrey - Chief Financial Officer & Executive Vice President: So the core – so the organic orders, I wanted to give that to you by segment. So, in the Medical segment it was plus 2%. In RF it was plus 9%. It was plus 2% in Industrial and minus 11% in Energy. Richard Eastman - Robert W. Baird & Co., Inc. (Broker): Energy, okay. All right, I see. Okay. And then, also within the Med-Scientific piece of the business, could you just maybe sift through the core revenue growth, local currency was plus 4%. How did the Medical products do versus the software and SaaS business? Is it – I was just trying to pick up on the cadence there. The software and SaaS business effectively much better in the second half, how was it relative to the 4% core growth this quarter? John Humphrey - Chief Financial Officer & Executive Vice President: Yeah. So, the Medical products was up, I know it was in the 9% or 10% range, with the medical, software and services up I think…

That will end our question-and-answer session for this call. We now return back to John Humphrey for any closing remarks. John Humphrey - Chief Financial Officer & Executive Vice President: Thank you, Matt and thank you all this morning. And we look forward to talking to you again in October.

That concludes today's conference. Thank you for your participation. You may now disconnect.