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

Good morning. Thank you for joining us for our first quarter and 2017 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 operations and business environment in which we compete contained in our 2016 Form 10-K, our first quarter 20018 Form 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. Also, on January 1st, 2018 Spok adopted Accounting Standards Codification, ASC 606, and revenue from contracts with customers, using the modified retrospective methods applied to those contracts which were not completed as of January 1st, 2018. Unless otherwise stated, results for reporting periods beginning after January 1st, 2018 are presented under ASC 606. While prior period amounts have not been adjusted and continue to be reported in accordance with the company's historic accounting under ASC 605. Please refer to the tables provided in yesterday's press release contain revenue, net income, earnings per share and EBITDA results under both ASC 606 and 605 formats With that, I'll turn the call over to Vince.

Thank you, Mike, and good morning. We're pleased to speak with you today regarding our first quarter operating results, and what we believe is a good start to 2018. First quarter results were in line with our seasonal expectations, as we saw strong year-over-year performance in a number of key operating measures, including software revenue and average deal size, as well as wireless subscriber retention. We achieved these results as we continue to invest in our business by enhancing and upgrading our product development team and tools, as well as our sales infrastructure and management. As we have previously outlined, we believe these investments will yield significant future benefits in the form of our improved integrated communications platform, Spok Care Connect, as well as higher future bookings levels supported by our enhanced and upgraded sales team. Overall, we continue to operate profitably and as a debt-free company, while enhancing our product offerings. We executed against our capital allocation strategy by continuing to make key strategic investments in our business, while returning cash to our stockholders during the quarter in the form of dividends and share repurchases. In the first quarter, we were particularly pleased to see total revenue grow more than 2% on a year-over-year basis. This performance was driven primarily by software revenue growth of nearly 17% from the first quarter of last year. Additionally, we continue to see a more than 99% renewal rate on software maintenance contracts. Similar to our wireless revenue stream, software maintenance revenue is largely recurring revenue and that provides the company with a more stable revenue base. Now before I turn the call over to Mike and Hemant to provide additional details on our financial performance and operating activity, I want to briefly review some key results for the quarter. First, software revenue…

Thanks Vince. Let me give you a little more detail on our financial performance in the first quarter. I would again encourage you to review our first quarter 2018 Form 10-Q, which we expect to file later today, as it contains far more information about our business operations and financial performance. Then we will cover on this call, as well as specific revenue comparisons between ASC 606 and ASC 605. As Vince noted, we're pleased with our overall operating performance in the first quarter. Key drivers of our financial performance during that quarter were strong year-over-year software operations revenue. Software maintenance revenue renewal rates, which continue to exceed 99%, coupled with lower than anticipated levels of churn in both paging units and wireless revenue. Continued operating expense management has allowed us to continue to absorb the impacts of our planned investments in product research and development expenses. Overall, we believe we're off to a strong start in 2018. I will review four additional key areas which drive our first quarter financial performance that include one; a review of certain factors impacting first quarter revenue. Two; selected items which influence first quarter expense. Three; a brief review of the balance sheet and finally an update on our financial guidance for 2018. As usual if you've specific questions about these items or any of our quarterly financial results, I'll be happy to address them during the Q&A portion of this mornings call. With respect to the revenue, for the first quarter of 2018 total GAAP revenue was $43.1 million, or $42.5 million when adjusted to exclude adoption at ASC 606, compared to $41.4 million in the first quarter of 2017, or up 2.4%. We were particularly pleased with our ability to generate strong year-over-year increases in software revenue, as well as continued…

Thank you, Michael, and good morning. As you heard, our sales and maintenance team delivered software bookings in the first quarter of 2018, totaling more than $18 million. First quarter performance was down 5.6% from the prior period, but in line with our seasonal expectation as first quarter is typically lower than the more robust fourth quarter totals. Healthcare remains a key part of our growth and primary focus, making up 89% of overall bookings in the United States for the first quarter. Nearly two-thirds of that business came from hospitals that have never worked with us before. Customer confidence in our clinical communication and collaboration platform remain strong. During the quarter, we added seven healthcare customers to the more than 1,900 hospitals that use Spok Solutions. Those customers include all 30 adult and children's health organizations on the current Best Hospitals Honor Roll by U.S. News and World Report. During the first quarter, we close one of the largest deals in our history. A Canadian health services provider sign a seven digit contract to rollout Spok Mobile to its healthcare provider throughout the province. The customer choose Spok to replace another vendor because they saw that our Care Connect platform is unique and can solve multiple challenges across different areas and departments of the health system. They added that no other vendor could provide an integrated solution providing directly details on call schedules, staff contact preferences and secure messaging. The system will leverage a newly consolidated database of 55,000 employees to support the rollout and get subscriber onboard perfectly. We close another large six figure deal during the quarter over the large East Coast Health System. They expanded the Spok console to two recently acquire hospitals in order to unify communications, processes, work flows and technology. They cited our…

Thank you, Hemant. Before we open the call for your questions, I'd like to comment briefly on a couple of items first. I want to update you on our current capital allocation strategy, and I want to review our key goals and business outlook for 2018. With respect to our current capital allocation strategy, our overall goals to achieve sustainable profitable business growth while maximizing long-term stockholder values. Towards the end, the allocation of capital remains a primary focus. A multi faceted capital allocation strategy includes dividends and share repurchases, as well as key strategic investments that include augmenting our product, development, operating platform and infrastructure. It also includes the potential for acquisitions as we have discussed in the past, even though we've not been satisfied with evaluation expectations from most of the target that we reviewed, but we continue to explore M&A opportunities and conduct business due diligence as appropriate. As we've previously stated, we remain committed to continue paying our $0.125 per share quarterly dividend this year and make share repurchases as appropriate. We also continue to aggressively increase our investments in our company to benefit the future and create a long-term stockholder value. We are a company in transition, and management and our Board believes with the financial flexibility over the long term is important to the success of our strategy. We review our capital allocation cost on quarterly basis and remain comfortable that we're striking a reasonable balance of serving the long-term interest of our stakeholders. We will continue to evaluate our capital allocation strategy and communicate our plans to you with respect to dividends, potential share repurchases and other uses of capital each quarter when we report earnings. Finally, with regard to our key goals and business outlook, we believe our first quarter activities and investment have positioned us well for a successful 2018. In order to take advantage of the large opportunity in our chosen markets, our business goals for the year are simple and straight forward. They include accelerating the development of our products and services, building stronger infrastructure, aligning resources and focusing where it is more needed, and driving software revenue growth while managing wireless revenue decline. We do all this with the ultimate goal of creating long-term stockholder value and fulfilling our commitment. Wrapping up, Spok continues to build an industry leading reputation. We remain committed to our core values of putting customer first, providing solutions that matter, innovation and accountability. We believe our past results and future plans reflect as values and beliefs. At this point, I'll ask the operator to open the call up for your questions. We would ask you to limit your initial questions to one and a follow up. And then after that we will take additional questions as time allows. Operator?

[Operator Instructions] : :

Okay, operator. I'm not seeing any questions. I just want to wrap up by saying thank you everyone for joining us this morning. We very much look forward to speaking with you again after we release our second quarter results in July. Everyone have a great day.