Good day, ladies and gentlemen, and welcome to the Crexendo first quarter 2015 earnings conference. Today's program is being recorded. At this time, I would like to hand things over to Chief Executive Officer, Mr. Steve Mihaylo. Please go ahead, sir.

Thank you, Lisa, and good afternoon, everyone. I am Steve Mihaylo, CEO and Chairman of Crexendo. I want to welcome all of you to the Crexendo 2015 first quarter conference call. With me today are Doug Gaylor, our President and COO; Ron Vincent, our CFO; Satish Bhagavatula, our CTO and CIO; and Jeff Korn, our Chief Legal Officer. I am going to ask Jeff to read our Safe Harbor statement, after that I will give some brief general overview comments relative to the quarter. Ron will provide some granularity to the numbers. Doug will provide a business and sales update. Satish will give an update on technology. And then we will open the call up to questions. Jeff, would you please provide the Safe Harbor statement?

Thank you, Steve. I want to take this opportunity to remind listeners that this call will contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for such forward-looking statements. All statements made in this conference call other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to words like, belief, expect, anticipate, estimate, will and other similar statements of expectation identifying forward-looking statements. Investors should be aware that any forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed on the call today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended December 31, 2014, and the Form 10-Q for the period ending March 30, 2015. Crexendo does not undertake any obligation to publicly update or revise any forward-looking statements, whether result of new information, future events or otherwise. I'd now like to turn the call back to Steve. Steve?

Thank you, Jeff. This quarter has been pretty close to what I expected. I say this often, but it is a very important point in understanding our business. We are a mature company, but our telecom business is a three-and-a-half-year old startup, and we are in a growth phase. We will have challenges, but we meet them head on. Having that fighting spirit is a huge benefit to us. We are very willing to accept input from clients and adopt their technology to meet their needs. We are particularly meeting the needs of enterprise clients by quickly adapting our software to allow for specific needs quickly. This attentiveness to customer needs was why we succeeded with a large number of enterprise customer sales in Q4 as well as a large number of equipment sales during the quarter that were installed in Q4. We had a strong sales booking quarter in Q1, but were not able to get as many sales installed during Q1. And that is one reason our quarter-over-quarter revenue numbers were down slightly in Q1, as well as the fact that we still booked revenue from our stores online business that was mostly completed in Q4 2014. With that said, our Q1 backlog is up 13% over Q4. And I believe that is the most important metric to show we are in a growth mode. I am also very excited by the increasing contributions from our dealer partner channel. We continue to have qualified dealers, and we continue to grow sales from that channel. We are adding internal staff to work with the dealers to be even more responsive to the needs of our dealers and their end-user customers, as they bring them on to the Crexendo platform. I believe this is one of the most important things…

Thank you, Steve. We reported consolidated revenue for the first quarter of $1.9 million compared to $2.1 million for the first quarter of the prior year. Our Hosted Telecommunication segment contributed $1.3 million for the first quarter, up 39% compared to $955,000 contributed in the first quarter of the prior year. Our Web Services segment contributed $528,000 for the first quarter, down 53% from $1.1 million contributed in the first quarter of the prior year. Consolidated operating expenses for the first quarter decreased 14% to $3.2 million compared to $3.7 million for the first quarter of the prior year. On a GAAP basis, the company reported $1.2 million net loss for the first quarter or a loss of $0.9 per diluted common share compared to a net loss of $1.6 million or a loss of $0.15 per diluted common share for the first quarter of the prior year. Non-GAAP net loss was $676,000 for the first quarter or $0.05 loss per common diluted share compared to non-GAAP net loss of $1.4 million or $0.13 loss per diluted common share for the first quarter of the prior year. EBITDA for the first quarter was $1.3 million compared to $1.4 million for the first quarter of the prior year. Adjusted EBITDA for the first quarter was $860,000 compared to $1.3 million for the first quarter of the prior year. Total cash and cash equivalents, including restricted cash at March 31, was $2.2 million compared to $4.3 million at March 31, 2014. Cash used for operations for the period was $756,000 compared to $1.3 million for the same period of the prior year. Cash used for investing activities for the period was $4,000 compared to cash provided by investing activities of $2 million for the same period of the prior year. Cash used for financing activities was $61,000 for the period compared to cash provided by financing activities of $23,000 for the same period of prior year. With that, I will turn it back over to Doug Gaylor, our President and COO, for additional comments on operations.

Thanks Ron. We had a strong sales bookings quarter for Q1, and for the fourth straight quarter our bookings steadily increased than the previous quarter. Our new sales from both the direct channel and the partner channel increased from our strong Q4, and helped increase our current telecom backlog by 13% to $11 million. We continue to pursue and secure larger-size transactions and had numerous sales during the quarter with a 100-plus stations. I believe with the rollout of our newly released Crexendo end-points that Steve mentioned, along with enhanced ACD and feature releases, this trend should continue. In combination with increasing our sales bookings, we also saw a significant cost savings initiatives contribute nicely to our efforts to reach profitability. On the sales front, both our direct and partner channels had new sales bookings increases quarter-over-quarter. Our direct sales team is focused on larger multi-location accounts, continues to produce strong results and bigger average sales transactions. Our sales successes during the quarter saw some large call center opportunities, a large city municipality, multiple educational facilities, and a new national account. Our ability to customize reports, features and solutions for these types of clients is critical to our success and is a value-added differentiator over many of our competitors. Our direct sales concentration on specific verticals, where we have had strong success continues to add new customers in these verticals, and establishes Crexendo as the go-to-solution in these specific industries. We have shared these direct sales, channel approaches and success stories with our partner channel, and had a very productive three-day business partner conference event at the end of January, where we trained and educated our partners on how to have more success with the Crexendo solutions. I think that our focus in this regard is why our dealer program…

Thank you, Doug. Greetings everyone. I'm glad to report that we made significant improvements to our telecom services, products, and technology during Q1 to meet the demands of larger multi-location enterprise opportunities. We continue to see such opportunities in both the direct and partner channel. Our earlier Q4 efforts to streamline service cost, product directions, development priorities and resource realignment are starting to payoff greatly. I'm confident this realignment of product development and operational engineering costs on our telecom product will yield greater efficiencies and agility in meeting the demands of our ever growing customer base. As our telecom customers continue to increase, we have seen a remarkable growth in the traffic and stress on our infrastructure. Our efforts to sunset underperforming carriers while consolidating our VoIP origination and termination has proven to be beneficial on all fronts. This initiative has yield greater efficiencies, improved quality, and enormous cost reduction, thus helping with our overall service margins. In Q1, successful deployment of larger multi-location enterprises and call center applications demonstrated that our infrastructures is scalable and that it can withstand the continued growth of the Crexendo base both in volume and complexity of each customer deployment. A notable accomplishment that I would like to report is the great overall performance and uptime of our cloud infrastructure. We are very pleased with the results we have seen and hope to continue the great trend going forward. We are currently evaluating potential vendors and solutions to realize our geo-redundant load-balanced cloud architecture and strategy over the next three years. This continuous analysis, monitoring and evaluation process enables us to be the best in the cloud service provider. On our product development side, we continue to rollout new updates every six weeks. During Q1 of 2015 much of the emphasis on telecom product…

Thank you, Satish. Lisa, we're open for questions at this point. All right, Lisa, it looks like there are no questions. I would like to just add a few closing comments. Obviously, now we're to the point where most of the revenue is telecom, so we should get a quarter-to-quarter comparison that makes sense. Comparing to the previous year is still going to be a bit distorted, because of our extended term payments on the old business, but that is mostly collected in the fourth quarter of last year and a little bit more in the first quarter of this year. Going forward, there's two things you need to look at. You need to look at our use of cash, which can down by about 45% quarter-over-quarter. So we're making good progress in that area. It's a combination of starting to see very nice gross margins, lowering expenses, and even more of a laser focus on cash usage. The other metric that you need to be looking at is our backlog. And as Doug pointed out, it grew by 39% -- or I should say, 13%; sales grew 39% quarter-over-quarter, which is quite amazing when you consider the fact that there were still quite a few extended payment terms in there. The long and the short of it is we're ready to really put their accelerator to the paddle here. We're adding more inside and outside sales people, more dealer partners, and we're also looking at customer acquisitions as well as strategic acquisitions. I remain as committed as before and I will be increasing the sales price of my 10b5-1 plan on Friday once we are out in the quite period. So all of these are an indication of my support of the company and I intend to support the company as long as it takes, but I think we're getting closer and closer each quarter. And I appreciate everyone's support and look forward to talking to you next quarter. With that, I'm going to say, thank you very much for being here. And we'll talk to you next quarter. Thank you, Lisa.

Thank you. Once again, ladies and gentlemen, that does conclude today's conference. Thank you all for your participation.