Good afternoon, and welcome to the Inpixon Earnings Conference Call for the Fiscal Year Ended December 31, 2017. [Operator Instructions]. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A replay of the call will be available approximately one hour after the end of the call through April 15, 2018. I would now like to turn the conference over to Scott Arnold, Managing Director of CORE IR, the company's Investor Relations firm. Please go ahead, sir.

Thank you, Austin. Thank you for joining today's conference call to discuss Inpixon's corporate developments and financial results for the fiscal year ended December 31, 2017. With us today are Nadir Ali, the company's CEO; and Wendy Loundermon, VP, Finance. At 4:05 p.m. Eastern time today, Inpixon released financial results for the fiscal year ended December 31, 2017. If you have not received Inpixon's earnings release, please visit the Investors page at www.inpixon.com. During the course of this conference call, the company will be making forward-looking statements. The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. This includes any projections of earnings, revenues, cash or other statements relating to the company's future financial results; any statements about plans, strategies or objectives of management for future operations; any statements concerning proposed new products; any statements regarding anticipated new relationships or agreements; any statements regarding expectations for the success of the company's products in the U.S. and international markets; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this conference call and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Some of these risks are described in the section of today's press release titled Cautionary Note on Forward-Looking Statements, and in the public periodic reports the company files with the Securities and Exchange Commission. Investors or potential investors should read these risks. Inpixon assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. In addition, to supplement the GAAP numbers, the company has provided non-GAAP adjusted net loss and net loss per share information in addition to non-GAAP adjusted EBITDA information. The company believes that these non-GAAP numbers provide meaningful supplemental information and are helpful in assessing our historical and future performance. A table reconciling the GAAP information to the non-GAAP information is included in the company's financial release. I will now turn the call over to Nadir Ali, Inpixon CEO.

Thanks, Scott, and good afternoon, everyone. Welcome to our 2017 fiscal year-end earnings call and corporate update, and thank you for joining us. 2017 was a challenging year for Inpixon. Our ability to fulfill orders was impacted by capital constraints and supplier credit challenges, resulting in a decline in revenues. In addition, our balance sheet made it difficult for customers to have confidence in buying our products and services. That has now changed. We have worked hard to overcome the challenges faced in 2017, and today, we believe we have a more solid footing with an increase in capital and an invigorated strategic plan to return to revenue growth and advance towards achieving the full potential that Inpixon represents. I am mindful of the impact these challenges and the steps we've taken to rectify them have had on all our stakeholders, and it is my hope through our call today that I leave you with a clear perspective about our plans for the future and what we believe our execution of those plans will represent in terms of creating shareholder value. One of these steps we took in this process was the reverse split we implemented in the first quarter of 2018. As a shareholder myself, I can understand that may have been frustrating for our shareholders. However, it was a necessary action, which not only allowed us to regain compliance with the NASDAQ minimum bid price requirement but was also a critical component of a plan that led to another important step, the successful completion of capital-raising transactions in which we realized over $21 million in gross proceeds before deductions of commissions and expenses payable. We believe that these recent corporate actions will provide us with the stability that's required for our customer base to regain their confidence in…

Thank you, Nadir. Total revenues for the year ended December 31, 2017, were $45.1 million compared to $53.2 million for the comparable period in the prior year. This decrease of $8.1 million, or approximately 15.2%, is primarily associated with the decline in revenues earned by the Infrastructure segment. Revenues earned by the Indoor Positioning Analytics segment for the year ended December 31, 2017, were $3.9 million compared to $4.9 million for the prior year period. Revenues earned by the Infrastructure segment were $41.2 million for the year ended December 31, 2017, as compared to $48.3 million for the prior year period. Revenues declined due to the ongoing capital constraints and supplier credit challenges the company faced throughout the year. Gross profit for the year ended December 31, 2017, was $10.8 million compared to $14.9 million in 2016. The gross profit margin for the year ended December 31, 2017, was 24% compared to 28% for the prior year period. This decrease in margin is a result of lower margin infrastructure sales from the Integrio acquisition. Indoor Positioning Analytics gross margins for the year ended December 31, 2017, and December 31, 2016, were 67% and 69%, respectively. Gross margins for the Infrastructure segment for the year ended December 31, 2017 and 2016, were 20% and 24%, respectively. GAAP net loss attributable to stockholders for the year ended December 31, 2017, was $35 million compared to $27.1 million for the comparable period in the prior year. GAAP net loss per share for 2017 was $137.79 per share compared to a net loss per share of $468.26 per share for 2016. The increase in net loss was primarily attributable to capital constraints and supplier credit challenges; decrease in gross profit as a result of lower margin infrastructure sales; higher interest expense; increases in operating…

Thanks, Wendy. The indoor location market is estimated to grow from $7 billion in 2017 to $40 billion by 2021 at a compound annual growth rate of 37.4%. We are especially excited that we have announced several initiatives, like AWS, the AI, VUI and blockchain enhancements that in effect have given as an enhanced technology road map to build out our IPA business. I am confident that with our recent infusion of capital, executing on our game plan will put us in a position to achieve the results we envision. Our company has unique industry-leading products with real world practical value across our segment offerings. I understand that ultimately, it's results that matter, and we've developed a plan with the expectation to deliver. We are excited about our path and the opportunities we are presented with in 2018 and look forward to sharing more progress with you in the coming year. With that, Austin, we're ready to open up the call to questions.

[Operator Instructions]. And our first question will come from [indiscernible].

The question I have for you is related to the capital raise. You don't see a lot of people investing $21 million into a company unless they see something, and I know you can't speak for the institutional investors that participated in your round, but could you talk a little bit about some of the feedback perhaps that you received from some of these investors who invested in you and were willing to, obviously, write a check for -- combined check for over $21 million?

Yes, sure, thank you for the question. Yes, absolutely, to respond to that, I think it's definitely a indication of the confidence that folks have in our business plan and the state that we're in and where we're headed. I think there's also a value story here, right, given where the market cap has been for the company that many folks have expressed is disconnect from where the company's at even with the combination of the VAR and the IPA business. But certainly, there's a lot of interest in where we could go. And I think that -- the technology that we have and the uniqueness, competitive advantage we have in the marketplace, and the size -- we talked about the size here on the call today, about a $40 billion market opportunity. We really have an opportunity to be the dominant player in the space, and we were just handicapped this past year with our ability to execute on that, given our capital constraints and the issues with the VAR business. So we're turning that around. We've been able to address the capital issue. And that'll allow us to fix the VAR business as well as, we've mentioned here today, looking at the sale or spinoff. So as these businesses can separate and focus on their business plans, I think it'll be really exciting to see what happens, and I think that's what investors were seeing in making the investment, right. There's definitely good value there, and they believe in the business plan we presented them.

This concludes our question-and-answer session. I would like to turn the conference back over to Nadir Ali for any closing remarks.

Thank you, Austin. Thank you again for your support and interest in Inpixon and, of course, for your time today. We'll continue to keep you updated on our progress. Thanks for joining us.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.