Good day and welcome to the USA Technologies Firth Quarter Fiscal 2013 Earnings Conference Call. Today’s conference call is being recorded. At this time, I would like to turn the call over to Veronica Rosa, Vice President of Investor Relations. Please go ahead.

Thank you and good morning. Before beginning today’s call, I would like to remind our listeners that all statements other than statements of historical fact included in this call are forward-looking statements. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business, financial market and economic conditions. A detailed discussion of risks and uncertainties that could cause actual events to differ materially for such forward-looking statements is included in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2012. USA Technologies’ financial results for the quarter ended September 30, 2012 will be reported in our Form 10-Q that we intend to file with the SEC by its due date. Listeners are cautioned not to place undue reliance on any such forward-looking statements which reflect management’s view only as of the date they are made. USA Technologies undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. This call will also include discussion of certain non-GAAP financial measures that we believe are useful for understanding our ongoing operations. These non-GAAP financial measures are supplemental to and not a substitute for GAAP financial measures such as net income or loss. Details of these items and a reconciliation of these non-GAAP financial measures to GAAP can be found in our press release issued this morning and on the investor relations page of our website www.usatech.com. On our call this morning are Steve Herbert, Chairman and CEO of the USA Technologies, and Dave DeMedio, Chief Financial Officer. At this time, I’d like to introduce Steve Herbert, Chairman and CEO. Please go ahead, Steve.

Thank you, Ronnie and good morning, everyone. Since reporting the first quarter of our fiscal year, we’re going to try to keep today’s call a bit shorter than the detailed review of the business we provided in our September call that covered fiscal year 2012 as well as an expanded view of our priorities for fiscal ‘13. What I’d like to do this morning is recap some of the major points we set forth in that call including our targets for the year as well as the progress and work underway as we strive to achieve those goals. Dave will then discuss the first quarter financials in greater detail. Of course we’ll both be available for questions at the conclusion of our formal remarks. To continue our efforts to increase transparency for the first time last quarter we introduced a number of targets for fiscal 2013 to help investors track our progress. These included the following. New connections of 60,000 in the fiscal year bringing our ePort Connect service base to 224,000 connections. Revenue growth of over 30% bringing total revenues to approximately $38 million for the year based on a mix of recurring revenues of about 80%. Continued strong gross margins in the 40% range non-GAAP net income for the second fiscal quarter and full year and cash generated from operations of approximately $4 million to $5 million to be used along with cash on hand and our credit line to support USATs growth. These targets I believe not only speak to the progress we’ve made in aggressively turning this business around from one year ago, but they highlight a great potential inherent in our business as we continue to penetrate this small ticket unattended retail market, a market that’s in the early stages of cashless adoption. We believe…

Thank you, Steve. Total revenues for the first quarter of fiscal 2013 was $8.4 million grew 25%, up from $6.7 million for the same period a year ago. 82% of revenues were recurring in nature for the first quarter, with license and transaction fees coming in of $6.9 million compared to $5.4 million a year ago, a 27% increase. Compared with the June 2012 quarter, license and transaction fees grew by over $500,000 as the Q3 and Q4 of fiscal ‘12 connections again the generate monthly fees and transitions in Q1 of fiscal ‘13. As I mentioned before, it generally takes 30 to 60 days in some cases with the ePort Connect into a JumpStart fees to begin to hit top line. License and transaction fees are filled primarily by connections to our ePort Connect Service specifically the monthly service and to their JumpStart fees from those connections and processing dollars that relate to our ePort Connect service platform. As of September 30, total connections to our ePort Connect service grow to 174,000. Net new connections in the first quarter totaled 10,000 compared to a similar count in Q1 of fiscal ‘12 and versus 16,000 last quarter. As Steve indicated we had anticipated Q1 would be down sequentially about year-to-year, as the sales cycle has typically been the strongest in our business as of fiscal year plays out. That said kiosks specifically connections that come from our ePort FCK and then less than anticipated for the first quarter. ePort versus JumpStart regular sales therefore represented 93% of new connections in the quarter. In contract the average of ratio of approximately 80% ePort devices, 20% kiosks software in fiscal 2012 and for fiscal 2013 in total we are working towards the 70-30 mix. As Steve indicated the largest contributor to kiosk…

Thank you David. Before we go to Q&A. I want to thank all of you for dialing in this morning and for your continued interest in USA Technologies. We remain optimistic regarding USAT’s future and the expectations for growth and cash generation we’ve set forth for fiscal 2013. More importantly we’re making stronger head-weight for these targets by executing a very balanced strategy that’s tuned to where our customers and partners believe are the greatest needs and opportunities in this rapidly emerging market space. Our financial turnaround remains on track with non-GAAP profitability expected for our December 31 quarter. We’re ensuring that we continue to drive steady increases and connections in customers and to expand our service base. And also we’re laying a foundation for product and service differentiation and additional value per connection that is fundamental to our long-term vision as a market leading provider of cashless payment and M2M telemetry solutions for the unattended small ticket market. We think our first quarter results should have showed progress in this balanced approach to our work and we look forward to updating you on the business again after the second quarter. And with that, we’d be happy to take your questions at this point. Operator, can you please open the call and provide instructions for our question-and-answer session. Thank you.

Yes, thank you sir. (Operator Instructions). Okay. Our first question is from Naston Hargle from Torrey Hill Capitals. Sir, you may begin. Naston Hargle – Torrey Hill Capitals: Hi, congratulations on a good quarter.

Thank you very much. Naston Hargle – Torrey Hill Capitals: I’m trying to understand you referring to 82% recurring sales, can you give us a little bit more insight what recurring sales entails and whether we can expect our number to stay as high as it is?

Sir, thank you for your question, this is David. Recurring revenue is the revenue under the line item in our statement of operations, license and transaction fee revenue. That’s driven by our service fee and monthly jump start fee revenue that we charge per connection. We have a 174,000 to connect, we have 174,000 connections as of the quarter end. So, I’ve provided that – those connections, we continue to add to those connections, that line items should continue to grow in the future and it’s recurring in nature. Hopefully that answers your question. So, not only should we stay at the current level but it continues to grow as we add connections. Naston Hargle – Torrey Hill Capitals: Understood. And also when you were mentioning kiosk sales, you were mentioning that they require less hardware, does that mean that there far more profitable or are they smaller in nature? How do they compare for you?

This is Steve Herbert, on the kiosk side in many cases, kind of in the majority of cases at the heart of every kiosk is a computer. And what we’ve done is we’ve developed software which we call our ePort STKV you can read it better on our website. And essentially what that is, is it’s a software version of an ePort. So, a capital investment is not necessarily required as it relates to connecting to the ePort connect service as opposed to say a vending machine where they need a piece of hardware to do that that was actually our point. The second part of your question was about profitability, and I would say in general, without getting too detailed, in general, the profitability of a kiosk connection in somewhat comparable to that of another connection to our insurers. Naston Hargle – Torrey Hill Capitals: Understood, oh, thank you very much. Congratulations on a good quarter.

Thank you for your questions.

Okay. Our next question is from Matt McCormick from BGB Securities, sir you may begin. Matt McCormick – BGB Securities: Hi, good morning. A follow-up I guess on the kiosk question, you did say that they were slightly disappointing because of AMI moving that facility. I guess, what strategy are you going to employ to I guess reaccelerate the adoption on the kiosk side and it’s solely reliant on AMI?

Matt, its Steve Herbert, thanks for the question. The AMI is clearly our largest customer in that space but definitely not our only customer. So, our basic strategy with AMI is to make sure that we get back on track with them as they bring up their new manufacturing facility which I think they’ve done. So, there isn’t much we can do there in terms of the strategy with AMI other than be supportive of them as they make their transition from one location to another. And we think that should be okay. With respect to your other question, are you solely reliant upon AMI, definitely not in the kiosk market, that’s a very dynamic market and in fact we have a number of very interesting customers that fall into the kiosk space, Starbucks being one of them. So, we have – where we definitely have more than one customer and we have lots of prospects, I think we just introduced – we just made an announcement on a very interesting kiosk opportunity with Eaton Industries with electric car charging kiosks. So, that’s we see that as a significant growth opportunity for our company outside of vending, where we’ve historically done very well. Matt McCormick – BGB Securities: Okay. And then, that’s helpful. And the comment was made that there were – gross margins suffered slightly because they were less activation fees. Is there something abnormal in this quarter going on there, and what are you – you’re shipping more and seeing a delay in the actual activations I guess, what’s the dynamic there.

Matt, this is Dave, that’s coming off in the quarter, in the June quarter where we had 16,000 connections. So, 16,000 compared to the net – we had less activation fees at a high margin. And higher margin helped us to achieve slightly over 40% in Q4 of fiscal ‘12. We expected – we expect as we continue to move forward, activation fees to be more aligned with total connections and growth. So, we expect that number to be back in the slightly over 40% range. Matt McCormick – BGB Securities: Okay. And then, my last question I guess, refers – relates to the Isis, I guess the pilot. Looking at that from the outside, I guess, what milestones should we kind of look for as you were allowed that part of shipping to say?

Well, that’s a great – that’s a great question. One of the places that you can look for milestones I think is you really keep an eye, keep an eye on Isis in the news, plug it into your alerts. And I think what you’ll find is they’ll have increasing levels of activity, as they – as they perceive with what they call their soft launch in Salt Lake City and in Austin. I don’t know that we will be making very many public statements in that regard, I think most things will come, most things will come out of that. But net-net, what you would see if you were on the ground in those cities would be a number of thousands of locations, USA report customers that have that capability. Matt McCormick – BGB Securities: Okay. Just a follow-up to the 60,000 new connections this year, are you expecting a material amount of that coming from that relationship?

I wouldn’t say so. It’s – they’re – we will have a number of thousands of connections to come from that but I wouldn’t call that material in the context of the 60,000. Matt McCormick – BGB Securities: Okay.

But it is, it is going to be helpful and we’ll provide some terrific learnings for us in for our customers regarding the potential of mobile payment. Matt McCormick – BGB Securities: All right, thank you.

Sure.

(Operator Instructions). Okay. I’m showing no further questions. Ladies and gentlemen that concludes today’s conference. Thank you for joining. You may now disconnect.