Good day, ladies and gentlemen. And welcome to the Park City Group’s Third Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Dave Mossberg, Investor Relations Representative. Please begin.

Thank you, [Sway] (ph). Before we begin, we will be referring to today’s earnings release, which can be downloaded from the Investor Relations page of the company’s website at parkcitygroup.com. This conference call could contain forward-looking statements about Park City Group within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical fact. Such forward-looking statements are based upon the current belief and expectation of Park City Group’s management and are subject to risk and uncertainties, which could cause actual results to differ from the forward-looking statements. Such risks are more fully discussed in the company’s filings with the Securities and Exchange Commission. The information set forth herein should be considered in light of such risk. Park City Group does not assume any obligation to update the information contained in this conference call. Throughout today’s conference call, we may be referring to both GAAP and non-GAAP financial results, including the terms free cash flow, EBITDA, adjusted EBITDA, net debt, net income loss and earnings per share, which are non-GAAP terms. We believe these non-GAAP terms are useful financial measure for our company primarily because of the significant non-cash charges in our operating statement. There is a reconciliation of non-GAAP results in earnings release and on the Investor Relations section of the website. Our speakers today will be Randy Fields, Park City Group’s Chairman and CEO; and Ed Clissold, Park City Group’s CFO. Ed?

Thanks, Dave. Good afternoon, everyone, and thank you for joining us on the call today. My remarks will cover our consolidated operating results for our third quarter ended March 31. I will also comment on certain cash flow and balance sheet items, and then I will turn the call over to Randy for his comments. For the third quarter ended March 31, 2014, we are pleased to be able to report that subscription revenue increased 24% to $2.5 million, which was a record for the company. Other revenue was $599,000 for the third quarter, which is a decrease from the $1 million we posted during the same period last year. We have some legacy customers that still purchase licenses on a one-off basis and together with our decision to transition to a subscription-based recurring revenue model make comparisons in the other revenue category less important due to its relative size. Overall, we expect contribution from other revenue will remain at approximately 20% to 30% of our overall revenue. As a result, going forward total revenue comparisons should more closely mirror that of subscription revenue intermixed with the occasional lumpiness of one-time license sales and consulting agreements. Overall, total revenue increased 1% to $3.1 million. Moving on to operating expenses, as we said last quarter, in anticipation of the expected acceleration in growth, we have increased investment in sales, marketing and account management staff levels during the first half of the year. This increase in staffing is reflected in the $723,000 increase in operating expenses. By comparison total operating expenses were $3.5 million versus $2.8 million last year. At the end of March, our headcount was 63, which is up six from the end of June. With these additions, we feel that current staffing levels are adequate to support our anticipated…

Ed, thank you. Appreciate it. Obviously, we’re terribly proud and the team has done an unbelievably good job this quarter, hence the 24% year-over-year increase. As Ed mentioned that’s both a record rate of growth as well as record levels. We have been suggesting for some time that as the years go on, we would anticipate continued acceleration of our growth. And obviously, we’re very pleased that that is now coming true at the revenue line. Few things in terms of strategic initiatives that went on over the course of not just the quarter but frankly I’ll be talking about year-to-date. Extremely importantly as we mentioned a couple of years ago that we would be shifting our focus from small and medium-sized retailers to larger retailers, meaning that we will go from people with a few hundred doors or stores as one would call them to several thousand. Doing that has had a salutary impact obviously on our revenue and our growth rate. And we anticipate over the next several years that would continue to be true. I think what I would like to do given that there are new people on the call is give you some terms of ours as we use them in our conversation. It’s easier to understand. We refer to our business model as hub and spoke. And hub is normally the retailer or wholesaler who engages us. That’s the hub. The spoke would then be a supplier that does business with that hub and a connection is the data exchange for which we are actually paid. So connections will exceed the number of suppliers if you will or vendors, virtue of fact that the vendor could be connected to multiple retailers or wholesalers. So it’s important to understand when we talk about connection that…

(Operator Instructions) And our first question comes from Robert Kecseg from Las Colinas Capital. Please go ahead.

Hi, Randy.

Hi, Bob.

So finally on the guy that goes back away with the hubs and spokes, could you just talk about how many hubs we had? And I know that was back in the regional days, maybe hasn’t changed that much, but what do we have for the hub count now for up to this point?

Bob, we just stopped talking in the core business about connections, hubs, and spokes for a very good reason. The difference in our revenue generation per hub, per spoke, per everything is so significantly different than it was that you end up in these [tiering of] (ph) averages. So we deliberately stayed from it. We are continuing to add hubs both large, small, and medium, that’s continuing. And so the number is going up, I am deliberately vague and I apologize, but I am afraid of giving numbers because averages and modeling just absolutely will not work. If I thought I were a meaningful number, we would still get it. The number of connections continues to go up. We paid more per connections. The number of hubs is going up and the number of suppliers is going up. All those numbers are continuing to grow.

And on the national retailer that you mentioned, you said that there is an acceleration of checkup getting suppliers connected, is that kind of might...

Yeah. Let me clarify that. We have several tests with several national retailers. In the case of this very large retailer that is doing the test, that test continues. It is expanding. We’re hoping for rollout decision soon, but we’re not in control of that. The results are really, really, really good as our view of it. But equally, importantly, that same company is now in the process of talking to us about two or three other tests to get going. So that’s one of the things you expect with large companies is, they don’t jump into a growth fee, but at some point or some of like stopping a locomotive, once they get going, they go very well and the one very large national account that we’ve been working with now, nearly two years, I think its exemplary of that. It’s going extremely well. So, all is good on the western front as they say.

Okay. Great. Thank you.

Okay. Thank you, Bob.

Thank you. (Operator Instructions) And our next question comes from Quinn Goldman from Park City Capital. Please go ahead.

Quinn.

Just wanted kind of get your perspective, I think, you mentioned kind of ReposiTrak ramping up over the next couple of years. Can you speak a little bit to how you are going to monetize that and I know its tough kind of with this test pilot you’re working on, but just how you envision that that transition happening maybe with that potential customer and just kind of the long-term opportunity there?

It’s not a test of ReposiTrak and I -- you cut out in the very beginning Quinn. The test we’re talking about is not ReposiTrak. It’s something else, did I misunderstand?

Okay. Well, can you clarify that a big great.

Okay.

I guess, I’m just wondering the monetization of ReposiTrak.

Yeah. Nobody is testing ReposiTrak at this point, everybody is doing ReposiTrak whose in ReposiTrak and the pipeline of suppliers that we've been given to, as we call it, get on the system or on-board as our term of art is in the thousands. So we have a mountain to claim, that is for sure. And we’re feeling very good about how that's going because it’s both accelerating just exactly as we had expected. But more importantly the technology is getting better and more usable and the factors that people are concerned about of regulation, reputation and financial risks are continuing to bring people to the table. So, I’m feeling very good at the moment about ReposiTrak. Remembering at the moment is just a customer. At some future date, if it makes a business sense for us, we do have an option to acquire 74%, 75-ish kind of percent for fixed price $200,000 and that could happen. But should it just remain a customer we both have a fixed and variable fee that will grow as that business grow. So no matter what is ReposiTrak continues to get bigger and better, if you will, we have a seat at the table. In terms of the other test I was talking about are tests would these large national retailers. Maybe the best metric is to how we're doing? Is not at the level of that retailer but one of the suppliers who is part of test got so excited about their results with that retailer that they’ve taken us to another retailer, one of the best-known names in retailing, certainty in the United States and they’re initiating our service through them with that new retail. So it is gone very well. We have been -- again, I could not be more proud of the team. We’re generating terrific economic results and the hope, obviously, is overtime as those results continue our business, our revenue grows as our customers revenue grows.

Okay. Great. Perfect. Thanks, guys.

Thanks Quinn.

Thank you. And I’m showing further question in queue. I’d like to turn the call back over to Mr. Randy Fields for any closing remarks.

Nothing much to say other than, obviously, we feel terrific about the quarter, about the year. We’ve said in the beginning of the year, this would be a record year. Obviously, that looks very good from where we are. We anticipate year-over-year. We’ll see a continued acceleration of our topline for some period of time and most importantly, for everyone our team continues to execute to a fairly well. So ReposiTrak going well, the core business is doing very well and at the moment your CEO couldn’t be happy about how we’re performing. So, thank you guys for the support and talk to you soon.

Ladies and gentlemen, thank you for your participation in today’s conference. This does conclude today’s program. You may all disconnect. Everyone have a great day.