Good morning, and welcome to USA Mobility's first quarter investor call. Today's call is being recorded. Online today, we have Vince Kelly, President and Chief Executive Officer; Shawn Endsley, Chief Financial Officer; and MyLe Chang, Controller of USA Mobility. Also from the company's Software subsidiary, Amcom Software, we have Colin Balmforth, President; and Lynn Danko, Chief Financial Officer. At this time for opening comments, I will turn the call over to Mr. Endsley. Please go ahead, sir.

Good morning. Thank you for joining us for our first quarter investor update. Before we discuss our operating results, I want to remind everyone that today's conference call may include forward-looking statements that is subject to risks and uncertainties relating to USA Mobility's future financial and business performance. Such statements may include estimates of revenue, expenses and income as well as other predictive statements or plans which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results. USA Mobility's actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainties. Please review the risk factors section relating to our operations and the business environment in which we compete contained in our 2012 Form 10-K, our first quarter Form 10-Q, which we expect to file later today, and related company documents filed with the Securities and Exchange Commission. Please note that USA Mobility assumes no obligation to update any forward-looking statements from past or present filings and conference calls. With that, I'll turn the call over to Vince.

Thanks, Shawn, and good morning. We're pleased to speak with you today regarding our first quarter operating results and what we believe was an outstanding quarter for both our Wireless and Software businesses. We've continued the strong operating performance and momentum that we established in the second half of 2012. On the Wireless side, we again ended the quarter ahead of our key operating goals for total revenue, operating cash flow, average revenue per unit or ARPU, and operating expenses. In addition, our Wireless sales force once again exceeded our plan for subscribers including gross additions, while our annual rate of subscriber churn improved to its best level in the company's history. Our Software business also achieved excellent results for the quarter with increased revenue, record first quarter bookings, revenue backlog near an all-time high and a growing pipeline of prospective accounts. Overall, we were able to maintain strong consolidated cash flow margins, operate profitably while reducing expenses and once again, return capital to our stockholders. Shawn will discuss our financial results in more detail in a few minutes. But first I want to review some of the key accomplishments we achieved during the quarter. Number one. Subscriber and revenue trends in our Wireless business continued to improve in the first quarter with rates of paging unit and revenue erosion below or near historically low levels. Our annual rate of subscriber erosion improved to 8.5%, the lowest loss rate in the company's history while our annual rate of revenue erosion fell to 12.4%, also among the best in many years. These impressive results were due in part to another excellent performance by our Wireless sales team which continued to outperform our goals for gross replacements while again reducing gross disconnect. We were especially pleased to see the continuation of these…

Thanks, Vince. Before I review our operating and financial results, I would encourage you to review our first quarter Form 10-Q, which we expect to file later today, since it contains significantly more information about our first quarter business operations and financial performance, than we will be able to cover on this call. As Vince noted, we are pleased with our first quarter financial results and the continued progress we made toward meeting our long-term operating and strategic goals. Both our Wireless and Software businesses performed exceptionally well during the quarter, getting us off to a solid start in 2013 and continuing the momentum we saw in late 2012. Record low rate of subscriber churn and revenue erosion combined with reduced operating expenses and a stable ARPU, contributed to strong cash flows and continued high margins in our Wireless business. At the same time, our Software business reported increased revenue and bookings from the year-earlier quarter while the year-end backlog remained near its all-time high. Looking first at our Wireless business. We are particularly pleased with the continued improvement in both subscriber and revenue trends as erosion rates once again either achieved or approached historic lows. With respect to our customer base, we ended the quarter with 1,480,000 units in service, a net decrease of 35,000 units compared to a decline of 51,000 units in the first quarter of 2012. The quarterly rate of net unit loss improved to 2.3% from 3% in the year-earlier quarter. While our annual rate of net unit loss improved to a record low 8.5% from 11.5% a year ago. To put the improved annual rate of subscriber erosion in broader perspective, the 8.5% rate in the first quarter compares to 19.5% and 21.8% in the first quarters of 2010 and 2009, respectively. Lower gross…

Thanks, Shawn. Before we take your questions, I want to comment briefly on a few other items that may be of interest. First, I'll provide a quick update on our recent sales and marketing activities in the first quarter. Second, I'll briefly review our current capital allocation strategy. And finally, I'll comment on our business strategy and outlook for 2013. With respect to sales and marketing activities, both our Wireless and Software businesses continue to aggressively pursue new business opportunities during the first quarter. On the Wireless side, we were especially pleased to see continued improvement in subscriber revenue trends while our Wireless sales team clearly delivered results and put in a tremendous amount of work to get those results. There are several other fundamental reasons why we've been able to consistently achieve a significant level of gross placements in each quarter, and while we expect the pace of paging unit erosion will continue to improve. From this [ph] key factors are these: Number one. Pager remains relevant especially for the healthcare sector where our customers continue to recognize the value of paging as a highly reliable and cost-effective form of wireless communications. This is particularly true for first responders and emergency personnel who work in mission-critical roles for their organization. Number two. Paging is less expensive. Calls remain the key advantage for paging. Despite the added functionality and popularity of smart phones and other wireless devices, our customers understand there's still nothing even close to paging from a cost-effectiveness perspective. In short, not everyone requires a smartphone to do their job. And hospitals, along with nearly all other organizations, operate within a limited budget. Number three. Paging is reliable. Paging survival for architecture provides advantages over broadband and WiFi during times of local, regional and national disasters. By comparison,…

[Operator Instructions]

Okay, well, it looks like we did such a good job in our prepared comments that -- oh, here we go, we got one question.

We will go to David Wells with Hanson Wells Partners.

Just a few quick questions for you. As I look at the Amcom backlog from Q1, a little bit soft sequentially, and so I was just curious if there was any contracts that were kind of on the bubble that may have rolled into Q2 that would have caused the kind of modest sequential decline there?

Lynn and Colin, do you guys want to take that one?

This is Colin, good morning, David. I just think it's just timing.

And then as I look at the Amcom guidance for the year, it, certainly, encouraging to see kind of the implying EBITDA margin guidance starting to march back upward but certainly, meaningfully below still where margins were prior to the acquisition. And so I'm just trying to get a sense of the timing of where you feel like we'll begin to see some cost levers from the investments that you've made in that business. And certainly, seeing the revenue pick up here in '13, is it the right time but do you really start to leverage that cost base in '13 or is that more of a '14 or '15 event where you'll see more kind of mid-teens or low-20s type EBITDA margin of that business?

We really start to lever some margin more in the out years, David. We're not really running Amcom right now to get -- cash some margin. If we were, obviously, it would be very simple because most of the cost of the software business is headcount. We had to do the typical build versus buy analysis when we're looking to add functionality and add products and solutions. And a lot of times, lately just because of the cost out there with the client companies, we've been opting to develop, so we've added to our development staff. We've also added the staff in the management ranks as I mentioned upfront not just with Colin and Lynn, but other critical areas of the company. We're really building Amcom right now to be a good, in fact, a great long-term company in the software business in the unified communications space. We've also expanded somewhat in our international, so the goal right now is not to get a lot cash on margin out but at the end of the day, and this is my belief, any business, the long-term goal is to generate cash and return that capital to stockholders. It's just a question of how you do it. We were phenomenal at it that USA Mobility on the Wireless side but at some point, wireless gets small and we'd end our ability to do that and that's why we acquired Amcom. We think over the long term, making a little bit of investment in Amcom while we're still returning capital to shareholders, to our Wireless results, is the right way to go, that's the best way to get the best long-term shareholder value to be able to reward our shareholders, the 22 million shares that are near and dear to my heart that I think about every day, what can we do that's best for them over the long term. And I believe right now it's to continuing to reward them with a dividend that we pay on a returning basis but also to invest in Amcom. So at some point when Amcom is at scale, if you will, it has a meaningful cash flow margin and we continue the same track record that we've had these past 8 years since we formed the company.

That's very helpful. As you think about the share repurchase, is that kind of an opportunistic approach or do you put a program out and tick away at it as the quarters go along or how are you thinking about the balance of the year?

We -- our history on share repurchases has been to be opportunistic because I talked about kind of the $9 or so average repurchase price we have but if you really kind of feel that way, a lot of that was repurchased back in 2008. So when we repurchased it, since then, we haven't had to pay the dividend on it. So we really had a great return on our share repurchases and it's a pet peeve with me that I think a lot of companies don't do a good job on share repurchases. I think in general, this is a blanket statement, I just rather see dividends, than share repurchases, but there are times when for whatever reasons, you're underappreciated and not understood and there's good things going on in your business and it makes sense to buy the stock back. So you think that's a little long-winded explanation compared to what you're looking for. But that gives you a little bit of insight into the philosophy. Okay, well, that looks like that was the last question we have. I mean, what I'm saying, and we really look forward to talking to you after we release our second quarter earnings. We can't wait. There's good things going on in this company, and we are very committed to returning capital to our shareholders over the long term but we're also very committed to growing the business and investing in our Software segment. We think it's the right balance, we think it is the right formula to create long-term shareholder value and we thank you for your support, and have a great day.

This does conclude today's conference. Thank you for your participation.