Welcome to TeleTech’s First Quarter 2015 Earnings Conference Call. I would like to remind all parties that you will be in a listen-only mode until the question-and-answer session. This call is being recorded at the request of TeleTech. I would now like to turn the call over to Paul Miller, TeleTech's Senior Vice President, Treasurer and Head of Investor Relations. Thank you, sir. You may begin.

Thank you. Good morning and thanks everyone for joining us today. TeleTech is hosting this call to discuss its first quarter 2015 results ended March 31. Participating on today's call are Ken Tuchman, our Chairman and Chief Executive Officer; and Regina Paolillo, our Chief Financial and Administrative Officer. Yesterday TeleTech issued a press release announcing its financial results for the first quarter 2015. While this call will reflect items discussed within those documents, we encourage all listeners to read our first quarter report on Form 10-Q. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based upon management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinion as of the date of this call, and we undertake no obligation to revise this information as a result of new information that may become available. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those described. Such factors include but are not limited to reliance on several large clients, the risks associated with lower profitability from or the loss of one or more significant clients, execution risks associated with ramping new business or integrating acquired businesses, the possibility of asset impairments and/or restructuring charges and the potential impact on the financial results due to foreign exchange rate fluctuations. For a more detailed description of our risk factors, please review our 2014 Annual Report on Form 10-K. A replay of this conference call will be available on our website for two weeks under the Investor Relations section. I will now turn the call over to Ken Tuchman, our Chairman and Chief Executive Officer.

Thank you, Paul and good morning everybody. We had a strong first quarter and we are pleased with our growing momentum. We are gaining speed in the market and are encouraged by our full year 2015 outlook across the entire business. Today I’ll focus on three key points before turning the call over to Regina for a review of the company’s financial performance and business commentary. First, I will discuss performance highlights that illustrate the overall strength and positive trending across the business segments. Second, I’ll show how our solutions are differentiating us in the market place and driving tangible outcomes for our clients. And third, I will share how to pace the technological change is creating a growing opportunity for TeleTech. Starting with a few performance highlights. Revenue increased 7.7% year-over-year to $325.5 million in the first quarter of 2015. On a constant currency basis we reported double digit revenue growth of 10.9%. Operating income increased 7.3% to $26.1 million, with operating margins of 8%. Adjusted for restructuring charges margins were 8.3%, in line with plan which includes continuing incremental investments in sales and research and development. Diluted earnings per share was $0.38, down slightly from $0.40 in the year ago period. Adjusted EPS was $0.38 up from $0.36. In the first quarter we also provided shareholder return through our share repurchase program and the initiation of a semiannual cash dividend. The build out of our sales organization and expanded capabilities in customer experience engagement and growth is showing strength, diversity and consistency in our bookings. In the first quarter of 2015 bookings were $120 million, an increase of 14%. Over the past four quarters, bookings were $455 million, an increase of 23% over the prior 12 month period. New business signings have now exceeded $100 million for five…

Thank you, Ken. Good morning. I’ll start with a review of our first quarter 2015 consolidated results followed by our segment performance. Our first quarter 2015 consolidated GAAP revenue was $325.5 million, an increase of 7.7% over the year ago period. On a constant currency basis revenue was $335.1 million, representing a growth rate of 10.9%. Revenue from acquired companies in their first 12 months was $11 million, resulting in a first quarter organic constant currency growth rate of 7.2%. Non-GAAP EBITDA was $43.4 million or 13.3% of revenue. This compares to $41.1 million or 13.6% in the year ago period. The decline in EBITDA margin was due to an increase in R&D and the timing of variable compensation, which collectively were $2.5 million higher in the first quarter of 2015 versus the first quarter of 2014. SG&A expense declined 15.4% of revenue in the first quarter of 2015 from 16.7% in the prior year. The decline in SG&A as a percentage of revenue is representative of the improved margin we gain on accelerated revenue growth in combination with the timing of our sales and marketing investment, which are lightest in the first quarter. Our GAAP operating margin in the first quarter of 2015 was 8% versus 8.1% in the prior year. On a non-GAAP basis adjusting for restructure charges, the operating margin was 8.3%. Our first quarter GAAP based tax rate was 18% compared to 11.9% for the same period last year. The higher first quarter 2015 tax rate reflects a large prior year benefit from the release of an international tax payable. First quarter fully diluted GAAP EPS was $0.38 compared to $0.40 in the prior year period. Non-GAAP fully diluted EPS was $0.38 compared to $0.36 in the same period last year. The change in fully diluted…

Thanks Regina. As we open the call, we ask that you limit your questions to one or two at a time. Operator, you may now open the lines.

Thank you, sir. [Operator Instructions] Our first question comes from Mike Malouf of Craig-Hallum Capital Group. Sir, your line is open.

Hi, thanks. Great quarter guys. It’s nice to see the growth in the CTS business really picking up. Just had a question about the accounts receivable and not affecting cash flows. So are you guys offering better terms to clients or what’s going on there?

I would say that from time-to-time we are expanding our terms a bit, but as I said in my comments, we have an issue here of two kind of sequential quarters in ’14 and ’15 with eight days of incremental DSO in both and I think it really comes back to basics in terms of an intense focus on the systems and the processes and the day-to-day monitoring and tracking. So we’ve got lots of plans in this space to change the trajectory. This is not a change in the profile of the company’s historical ability to drive significant cash conversion from its OI. It’s really quite frankly a little bit of taking our eye off the ball and we’re committed to ensure that we start to change that immediately.

Okay, thanks. And also you touched on Cisco and Avaya doing well with the CTS above plan. Could you elaborate on that a little bit and talk about the opportunity there?

Yes. I mean as we’ve been laying the foundation, we continue to have significant opportunity around the globe with regard to the technology requirements of our clients as they drive a refresh of their infrastructure to be able to up their game in customer engagements. We do that in a premise basis. Two examples were the U.S. government contracts that we signed where we will help them architect that infrastructure for citizen engagements, procure and deploy the products, as well as then manage that environment for them. Not only including the infrastructures, but the surround application. Alongside that we see significant movement in the industry from on premise to cloud and we continue to build out both a multi tenant as well as customize and configure cloud environment for our clients, but I think at the core of this is the intensity around which the market is focused on, customer engagement anywhere, any place, any time and our clients who have large distribute customer basis in B2C and B2SMB can execute that without solid rich customer engagement technology platforms.

Okay, great. Thanks a lot.

Our next question comes from Mr. Stephen McManus of Sidoti & Co. Sir, your line is open.

Hey guys. Thanks for taking my questions.

Hi.

So my first question was just regarding the CTS group. It was defiantly encouraging to see a pickup there. I just wanted to see if you guys can talk a little bit about what were some of the initiatives put in place to improve the execution issues that impacted margins in the last few quarters and maybe what an expected normalized operating margin that we could expect moving into the remainder of the year.

Yes, so a couple of things. First of all we have integrated or CTS sales force into our GMI and recruited a new head who has demonstrated background both in Avaya, Cisco and in communications in general, that’s Jack Denault. He’s been with us now since December and that’s having a significant impact directly with the CTS sales group, but also having that within GMI and impacting the other CBUs through account planning and such. The other thing that we’ve done is to drive integration of the operations. There are layers of that operation, certainly G&A but also in the operations of the managed services and the cloud environment we’ve integrated layers of the Avaya and Cisco talent and that have given us more scale and efficiency. And last but not least, we continue to look at in this business a balance between onshore and offshore resource, which is allowing us a fairly good efficiency.

Okay great, that helps a lot. And then just touching again on the CGS group, I know you mentioned that it was mainly due to timing variability, the impact on operating margins. Should we expect that to carry into the next quarter or expect the improvement to hit pretty quickly?

Yes, you will see pretty nice sequential uptick in both the revenue NOI quarter-after-quarter. We have very good visibility from Q3 and Q4 bookings, as well as the $20 million in Q1. We are clearly about 50% through the quarter in Q2 and so as planned, as we grow this business, we have been flushing out what we would call legacy inbound commoditized business. We can always have those two things; the new business and the legacy business running off convergent in perfect timing, but we are highly confident in the comments that we made during the February call in and around this business getting to double digit revenue growth and double digit operating income as we go through this year.

Yes, the only last point I’d make is that the pipeline that we see going forward, it’s also adding to our confidence as it relates to the future potential of the business units. So it’s probably the strongest pipeline we’ve seen in CGSs history.

Okay, great. Thanks a lot guys. I appreciate it.

Thank you very much.

[Operator Instructions]. We have one more question. Our next question comes from Mr. Shlomo Rosenbaum from Stifel. Sir your line is open.

Hi, good morning. Thank you for taking for my questions. Hey Ken, can you give me a little more detail on the Café X communications investment and just how that plays into your strategy and what you’re doing there?

Sure, thanks Shlomo. We, as you know and as we have communicated over the last few years, we have been very, very focused on R&D and very focused on being able to have a platform that is built for the future versus focused on what has taken place in the previous 30 years. Café X has developed a very unique capability using WebRTC technology, which we think is the future of how voice and video will be communicated. Basically what that means is the ability to do real time communications through browsers and so from a mobile standpoint and whether it be a mobile browser or whether it be a website browser, they have built a enterprise class capability that we have now integrated into our suite of offerings that CTS is selling, as well as that Humanify is now offering, which allows us to provide routable video, as well as direct connect voice with all in high definition quality. And we are very happy with the investment. We are also excited that the company is really taken off. We are co-marketing together and its sufficed to say that almost every major financial service account that matters to us, they are already into and this is be becoming a standard in the financial services industry and we are doing everything we can to help them be successful, whether it be through our CTS distribution and our integration capabilities or whether it be through all the additional Omni-Channel capabilities that we have through our proprietary Humanify. So that was the reason for this particular investment. We sit on the board. We are one of the largest shareholders in the company and again, I’m happy to say that they are hitting their numbers and we think that they are on to something…

Okay, great, thank you. And then Regina I thought I heard you say that there was about $1 million of acquisition revenue in the quarter. I’m just comparing that with almost $13 million noted in the 10-Q and I wanted to ask you for the bridge.

Yes, so its $11 million, it’s just shy of $11 million in the quarter. The $11 million that I talked about or to be derived from the numbers I gave is different than the $13 million, because the Q requires that we put the full quarter regardless of the animalization. So differently we acquired Sofica at the end of February in ‘14 and so in my number we are not counting the period in Q1 of this year from end of February through March.

Okay, good, that’s good color. And then could you just run through the organic growth on each of the segments again, just organic constant currency.

Yes. So organic constant currency overall is – I believe it’s 8.2. Let me just get these in front of me, so I have them. Overall its 7.2; in CMS its 8.7; in CGS it’s a decline of 7.3 and really that’s the bulk of it. It’s in the period; it’s not CTS and very material in CSS.

Great, thanks so much.

Thank you.

Thank you for your questions. That is all the time we have today. This concludes the TeleTech first quarter 2015 earnings conference all. You may disconnect at this time.