Welcome to the Spok's Fourth Quarter Investor Call. Today's call is being recorded. On line today we have Vince Kelly. President and Chief Executive Officer; Shawn Endsley, Chief Financial Officer and Hemant Goel, President of the Company's operating company. 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 fourth quarter and 2015 year-end investor update. Before we discuss our operating results I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Spok'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. Spok's actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based on assumptions that the Company believes to be reasonable, they are subject to risks and uncertainties. Please review the risk factor section relating to our operations and the business environment in which we compete contained in our 2015 Form 10-K which we expect to file later today and related documents filed with the Securities and Exchange Commission. Please note that Spok 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.

Thank you, Shawn and good morning. We're pleased to speak with you today about our fourth quarter and 2015 operating results. We're encouraged by our performance as we met or exceeded the majority of our key operating metrics for both the quarter and the full year. We achieved these results as we continued to make key investments in our business to enhance and upgrade our operating platforms and sales infrastructure. We believe that these investments in our systems and people position us well for the future. We saw double-digit increase in our fourth quarter software revenue from the prior quarter. Higher fourth quarter and full-year software revenue is due in part to a continuing trend of very strong renewal rates on software maintenance contracts which provides a stable recurring and profitable revenue stream for Spok. Demand remains strong in our domestic markets for upgrades and installations of call center solutions in healthcare applications. Additionally we posted solid results for our wireless products and services in the fourth quarter and for the full year. Gross disconnects improved on both a quarterly and annual basis. As a result, annual net pager losses declined to a near historical low. Overall we continued to operate profitably, enhance our product offerings and further strengthen our balance sheet. Our ability to generate healthy cash flow levels allowed us to execute against our capital allocation strategy, make key strategic investments and return the majority of our cash flow to our stockholders in excess of our commitment to return $26 million. Shawn and Hemant will provide details of our financial performance and operating activity shortly but first I want to review some of our key results for the fourth quarter and 2015. Number one, continued demand for our software solutions and wireless services resulted in consolidated revenues of…

Thanks, Vince. Before I review our financial highlights for the fourth quarter and 2015 I would again encourage you to review our 2015 Form 10-K which we expect to file later today since it contains far more information about our business operations and financial performance than we will cover on this conference call. As Vince noted, we were pleased with our overall operating performance for the fourth quarter and 2015, along with the substantial progress we made toward meeting our long-term business goals. Revenue contribution from both software and wireless combined with focused expense management helped maintain solid operating cash flow, EBITDA and operating margins for the quarter as we continue to invest in our business for long-term growth. We also strengthened our balance sheet recording a cash balance of $111.3 million at December 31st, 2015 and continued to operate as a debt-free Company at year-end. As a result of this performance, we believe we're well positioned for another successful year in 2016. In the interest of time today, I will not review our fourth quarter income statement on a line-by-line basis since much of that information is contained in our news release schedules and federal filings. However, to the extent you have specific questions about our quarterly financial results, I would be glad to address them during the Q and A portion of this call. Rather, I want to focus instead this morning on four specific areas. These include number one, a review of certain factors that impacted fourth quarter revenue; number two, a review of selected items that impacted fourth quarter expenses; number three, a brief review of deferred tax assets and the status of our valuation allowance along with other balance sheet items and number four, our financial guidance for 2016. With respect to revenue for the…

Thank you, Shawn and good morning. Our sales and marketing teams delivered software bookings of $18.5 million, up 10.5% from Q3, while annual software bookings are down 5.7% over 2014. The annual bookings in 2014 reflected significant federal government activity that was not replicated in 2015. However, our new customer bookings, along with another quarter of 99% maintenance renewal, are driving healthy maintenance revenue numbers. Secure text messaging remains one of our best performing solutions with sales up 42% over 2014. In Q4 we welcomed more than two dozen new customers to the Spok family and more than 170 for the full year. Healthcare bookings overall in the U.S. are up 4.9% over 2014 and new customer bookings are up 88% for the year. These are hospitals and health systems that have never worked with us before. These new Spok family members join a prestigious list of customers that includes all of U.S. News and World Reports 2015-2016 Best Hospitals Honor Roll. The 15 of those hospitals and 12 children's hospitals rely on our solutions to help them provide the best care. Our healthcare customers are an important part of our future growth as they continue to expand their enterprise communications and add more of our services and solutions. We also maintain a number of strategic partnerships with companies that have complementary products and services and work together to offer customers joint solutions. For example, a healthcare system on the East Coast was upgrading their communication network at multiple locations. Working with that network vendor we're able to concurrently provide console software upgrades for several of their hospitals and a new installation of another preparing this customer to expand with additional applications such as secure texting. Our customers also recognize the value of their partnership with us and our ability…

Thank you, Hemant. Before we take your questions, I want to comment briefly on several items regarding our expectations for 2016. These items include our expectations regarding profitability, an update on our capital allocate strategy and a review of our business outlook and key initiatives for 2016. First, with respect to our current goals for profitability, our target is to continue to maintain our profitability and generate positive operating cash flow as we invest for the future. We understand that our operating margins will be impacted both by declines in our wireless revenue and by the investments we're making for future growth. In 2015 we were focused on investments in our software solutions capability while maintaining our valuable wireless revenue stream. Last year we took steps to strengthen our leadership team as Hemant became President of Spok's Operating Company and more recently with the addition of industry veteran, Don Soucy, as Executive Vice President of Global Sales. This year we're undertaking a significant program to enhance our product development solution delivery capability which will result in an increase in R&D and other expenditures throughout 2016 and future periods while we position the Company to be an industry leader and long-term player in the critical communications space. We believe these investments will pay dividends in future periods as we continue on a path toward sustainable growth. Next, turning into our capital allocate strategy, in 2015 we returned $28.3 million into our stockholders in the form of dividends and common stock repurchases. This represented the majority of our cash flow and exceeded the commitment of $26 million we made to you at the beginning of 2015. The allocation of capital will continue to be a primary area of focus for us this year as the Company expects to generate strong operating cash…

Okay, it looks like there are no questions, so I just want to thank everybody for joining us this morning. We look forward to speaking with you again after we release our first quarter results in April. Everyone have a great day and thank you.

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