Good day, and welcome to Spok's Fourth Quarter and Year End 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 2016 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 Factors section relating to our operation and the business environment in which we compete contained in our 2016 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.

Thanks, Shawn, and good morning. We're pleased to speak with you today about our fourth quarter and full year 2016 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 continue to make key strategic investments in our business to enhance and upgrade our operating platforms and sales infrastructure, and continue our transition from a telecom-based wireless company to an industry-leading software provider, with the goal of delivering industry-leading unified critical communications solutions. We believe that the investments that we have made, and will continue to make, in our systems and people position us well for the future. With respect to our fourth quarter of 2016, we saw strong performance in a number of key operating areas. Noteworthy in the fourth quarter, were continued improvements in wireless retention trends, as well as solid software bookings levels. Spok 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 loss was declined to a near historical low for both the quarter and the full year. While our paging units and wireless revenue continue to decline, as expected, we are very pleased by a much slower-than-anticipated rate of quarterly and year-over-year reductions. Our performance in the fourth quarter was consistent with our expectations and the trends we typically experienced during the year. We were particularly pleased to see software bookings improve from both the prior year's quarter and prior year -- and prior quarter, and our backlog levels remain consistent over the same time periods. Overall, we continue to operate profitably, enhance our product offerings and…

Thanks, Vince. Before I review our financial highlights for the fourth quarter and full year 2016, I would again encourage you to review our 2016 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 2016, along with the progress we made toward meeting our long-term business goals. Revenue contribution from both software and wireless, combined with the 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 $125.8 million at December 31, 2016, and continue to operate as a debt-free company at year end. As a result of this performance, we believe we are well positioned for 2017. In the interest of time today, I will not review our fourth quarter and full year income statement on a line-by-line basis, since much of that information is contained in our news release and several filings. However, to the extent you have specific questions about our quarterly financial results, I would be glad to address them during the Q&A portion of this call. Rather, I want to focus instead, this morning, on 4 specific areas. These include: Number one, a review of certain factors that impacted fourth quarter revenue; number 2, a review of selected items that impacted fourth quarter expenses; number 3, a brief review of deferred tax assets and the status of our valuation allowance, along with other balance sheet items; and number 4, our financial guidance for 2017. With respect to revenue for the…

Thank you, Shawn, and good morning. During the fourth quarter of 2016, our sales and marketing team delivered software bookings of $20 million. This represents a 7.3% increase over the third quarter and an 8.2% increase over the fourth quarter in 2015. Our maintenance renewal rate remains in excess of 99%. We also welcomed 4 dozen new customers to the Spok family in the fourth quarter, primarily in the Healthcare and Government sectors. Healthcare is an important part of our growth and is our largest segment, comprising of 84.5% of overall bookings in the U.S. for fourth quarter and 80.2% for the year. We are actively pursuing new customer accounts to expand our market presence. And more than 1/4 of our fourth quarter healthcare bookings were hospitals and health systems that have never worked with us before. For example, among the new customers joining Spok in fourth quarter, was a small regional health system in the Midwest looking to automate their code call processes for better patient care. This customer was searching for a comprehensive solution that would integrate with their existing environment. We will be helping them replace many manual processes around launching and tracking codes -- code calls to provide faster care for patients in life-threatening situations where every minute counts. There is also a lot of activity with our current customers looking to upgrade and expand their systems. A hospital located on an island in the Atlantic chose us to help them automate a manual environment with integrated technology to streamline their compact central operations, event notifications and mobile communication across the hospital. This customer's leadership team selected Spok to continue building out their infrastructure, because we offer a unified and one technology partnership. And a final example is a health system in the upper Midwest looking…

Thank you, Hemant. With respect to our key goals and business outlook, a little over 1 year ago, we undertook our project Catapult Plan, which marks a shift in our strategic direction for Healthcare, our largest customer segment. Catapult was initially created as a 5-year plan that signaled a very intentional move from offering our customers point solutions or single product solutions for call center software, alarm management and secured messaging to offering them a single, integrated platform called Spok Care Connect. We made the decision to focus on the Spok Care Connect platform for several reasons: number 1, customer needs. Our healthcare customers were telling us they needed a more unified approach to communications across their enterprise. Number 2, market opportunity. Industry analysts confirmed to us that there is a multibillion-dollar opportunity for this type of enterprise offering in our largest market, United States health care. Number 3, business simplification. We've been offering our customers too many different products in multiple versions on several different platforms and this makes supporting them effectively a challenge. We needed to develop and simplify our product offerings and to create an efficient way to develop and offer our solution. And number 4, competitive positioning. We concluded that a single integrated platform for healthcare communications, Spok Care Connect, would address our customers' needs and create a competitive advantage for Spok. For the past year, we've invested in additional talent, resources and tools to implement our Catapult Plan. We recruited experts for product strategy and development, created additional work teams and devised a plan to map our existing products to the newly envisioned platform. We recruited people with experience in enterprise healthcare sales, while providing training and certification for our existing teams to increase their focus on the new approach. We've added clinical expertise to…

[Operator Instructions] And there are no questions at this time.

Okay. Everyone is probably following the Snap IPO or something this morning. But look folks, thanks for joining us this morning. We look forward to speaking with you again after we release our first quarter results in April. And everyone, have a great day.

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