Good morning, and welcome to the Spok's Second Quarter Investor Call. Today's call is being recorded. On line today we have Vince Kelly, President and Chief Executive Officer; Michael Wallace, Chief Financial Officer; and Hemant Goel, President, Spok Operating Company. At this time for opening comments, I would like to turn the call over to Mr. Wallace. Please go ahead, sir.

Thank you and good morning. Thank you for joining us for our second quarter 2017 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 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 2016 Form 10-K, our second quarter 10-Q, 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, Mike, and good morning. We are pleased to speak with you today regarding our second quarter operating results and what we believe was a solid performance for Spok. We continue to see the benefits from investments that we're making to enhance and upgrade our product development team and tool as well as our sales infrastructure and management. We believe these investments will yield significant future benefits with respect to our integrated communications platform Spok Care Connect, our enhanced and upgraded sales team and our growth potential. During the quarter, we saw a strong performance in a number of key operating metrics, and made further progress towards transitioning Spok to a long-term growth model by delivering industry leading clinical communications solutions. In general, our performance in the second quarter was consistent with our expectations and the seasonal trends we typically experienced during the year. We were particularly pleased as we saw a continued reduction in the decline of our paging units and wireless revenue to record low levels. Software revenue was up more than 7% from the prior quarter and in line with the prior year performance. We believe we're well positioned for the second half of the year as software bookings exceeded 20 million and we're up 3% from the prior quarter while our backlog was up nearly 7.2% over the same period. Software maintenance revenue was another area of strong performance due a more than 99% revenue renewal rate on maintenance contracts. Similar to Spok's wireless revenue stream, software maintenance revenue is a recurring revenue stream that provides the Company with a more stabled revenue and margin base. This quarter more than 84% of our revenue streams were recurring in nature when you consider our solid wireless base and software maintenance contracts. The strong revenue base provides us…

Thanks, Vince. Before I review our financial highlights for the second quarter of 2017, I would again encourage you to review our second quarter form 10-Q which we expect to file later today since it contains far information about our business and operations and financial performance that we will cover on this call. As Vince noted, we were pleased with our overall operating performance for the second quarter and remained focused on executing against our business plan, as we enter the second half of the year. In addition to the substantial progress we made towards meeting our long-term business goals, we saw a solid sequential improvement in a number of key operating metrics. Revenue contribution from both software and wireless combined with focused expense management helped to increase our quarterly operating cash flow, EBITDA and operating margins for the quarter, as we continue to invest in our business for long-term growth. We are also maintained our already strong balance sheet and continue to operate as the debt free company at quarter end. In the interest of time today I will not review our second quarter performance on a line by line basis since most of that information is contained in our news release, schedules and federal filings. If you have specific questions about our quarterly financial results, I would be glad to address those during the Q&A portion of this call. Instead, I would like to focus this morning on four key areas that I feel will give you a better idea of the drivers of our second quarter performance. These include a review of certain factors that impacted second quarter revenue, a review of selected items that impact the second quarter expenses, a brief review of certain balance sheet items and finally our financial guidance for the remainder of…

Thank you and good morning. As previously outlined, our sales and marketing team delivered software bookings in the second quarter totaling $20.4 million, this performance was up on both the sequential and year-over-year basis. Our momentum continues and we believe our strategy is resonating with our customers. Market recognition for the value of our enterprise healthcare communications platform is increasing, demonstrated by the level of conversations we have had with several customers and prospects, the volume of activity we see on our websites, and most notably, by the stories behind our quarterly bookings. During the quarter, we welcomed more than three dozen new customers to the Spok family, primarily in the healthcare and government sectors. Healthcare remains a key part of our growth, comprising 88% of overall bookings in the U.S. for Q2, nearly a quarter of that business came from new hospitals and health systems that had never worked with us before. Among our new customers this quarter is an urban hospital in the north east. This hospital is part of our health system that is working to standardize their communication technology among all member hospitals. They have children Spok Care Connect because of our diverse capabilities. Spok will support the vital communications infrastructure including contacts center operations, automated caller sources, emergency notifications and code calls. Another new customer this quarter a mid-sized hospital in the eastern United States is looking to eliminate paper binders of on-call schedules and contact information. With Spok solution, they will be able to streamline and automate much of their code whole process to save previous precious time during emergencies when patients lives there are taking every second counts, to be affective emergency communications must be dependable and reliable and area that is becoming a top priority for many hospital leader. We are seeing…

Thanks, Hemant. Before we open the line up for your questions, I like to comment briefly on a couple of items first. I want to update you on our current capital allocation strategy and I also want to review our key goals and business outlook for 2017. With respect to our current capital allocation strategy, our overall goal to achieve sustainable business growth while maximizing long-term stockholder value through our multifaceted capital allocation plan that includes dividends and share repurchases, key strategic investments to improve our operating platform and infrastructure, and potential acquisitions that could provide additional revenue streams and broaden our portfolio solutions. We expect to continue paying our quarterly dividend of $0.125 per share or $0.50 annually for the foreseeable future. Additionally, during the second quarter, we executed against our previously announced $10 million share repurchase authorization. So to the midpoint of 2017, Spok has returned more than $20 million to our stockholders including the special dividend that was declared in December 2016 and paid in January of 2017. Next, as part of our capital allocation strategy, we're continuing our investments in product strategy and development where we believe we can generate attractive returns for stockholders as we pivot to a growth model in our software solutions sales. As usual, we'll continue to maintain ample liquidity to support our working capital needs. Last, we've not yet executed on the acquisition component of our strategy for a variety of reasons; however, we continue to review candidates that could be a good fit for our platform and solutions portfolio. We remain disciplined in our approach to ensure that any acquisition demonstrates both synergistic and strategic value for Spok. In the meantime, we'll continue to weigh increases in our internal R&D expenditures against M&A opportunities. Finally, with regard to our key goals and business outlook, we believe our first half activities and investments have positioned us well for a successful 2017. In order to take advantage of the large opportunity in our chosen markets, our business goals for the year are simple and straight forward. Number one, accelerating development of our products and services. Number two, building a stronger infrastructure. Number three, aligning resources and focusing where most needed. Number four, increasing Spok's long-term growth potential. We would do all of this with the ultimate goal of creating long-term stockholder value and fulfilling our commitments. Wrapping up, Spok continues to build an industry leading reputation. We remain committed to our core value of putting customer first, providing solutions that matter, innovation and accountability. We believe our past results and future plans reflect those values and beliefs. So, at this point, I'll ask the operator to open the line up for your questions, and we'd ask you to limit your initial questions to one and a follow-up and after than we'll circle back and take additional questions as time allows. Operator?

Thank you, sir. [Operator Instructions] And so there's….

Okay, I don't see any questions in the queue. So, look, thanks a lot for joining us this morning. We look forward to speaking with you again after release our third quarter results in October. Everyone have a great day.

That does conclude our conference for today. We thank you for your participation.