Good day, ladies and gentlemen, and welcome to the Jack Henry & Associates Third Quarter 2015 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. And as a reminder, this call is being recorded. I would now like to turn the call over to Kevin Williams, CFO. Please begin. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Thank you, Latoya. Good morning. Thank you again for joining us for the Jack Henry & Associates Third Quarter Fiscal 2015 Earnings Call. I'm Kevin Williams, CFO of the company; and on the call with me today is Jack Prim, our CEO. The agenda for the call this morning will be as we normally do, Jack will start out with some thoughts about the business, the performance for the quarter and some other comments he has prepared, then I will provide some additional thoughts and comments regarding the press release we put out yesterday after market close, and then we will open the call up for Q&A as we always do. I need to remind you that remarks or responses to questions concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements or deal with expectations about the future. Like any statement about the future, these are subject to a number of factors which could cause actual results or events to differ materially from those which we anticipate due to a number of risks and uncertainties, and the company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release and the sections in our 10-K entitled Risk Factors and Forward-Looking Statements. With that, I'll now turn the…

Yes, sir. And the first question is from Peter Heckmann of Avondale. Your line is open.

Hi. Good morning, gentlemen. Thanks for the additional color on the rev rec issues. Kevin, were there any one-time items in the quarter? Any significant term fees or insurance recoveries? Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: There was no insurance recoveries, Pete. There were some one-time term fees and I'm going to have to dig that out. I apologize; I don't have that right at my fingertips. Let's see, yeah, de-conversion fees for the quarter were pretty significant, they were about $9 million.

And how did that compare with the prior year? Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Last year, we had $1 million in the quarter. So yeah, it's a pretty significant increase in one-time de-conversion fees this quarter, Pete.

Okay. Okay. That's helpful. And then... Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: And I will tell you that was spread pretty evenly between BP and our electronic payments and quite a bit over and even in the item processing.

Okay. Okay. And then we've seen a little bit of an uptick in M&A recently. And I know you have very, very low customer concentration, but any, anything to call out there in terms of M&A that's ongoing that – wins or losses? John F. Prim - Chairman & Chief Executive Officer: No, Pete, it's pretty much same environment that we've been in for quite some time at this point. Nothing noteworthy.

Okay. And then just lastly on the payments side, can you break up the individual components of payments that got you that 9% year-over-year increase? Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: I'd – boy, Pete, I apologize. I don't have that. Let me – let's take another question, let me research that, and I'll see if I can come back to you.

All right. Thanks. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Thanks, Pete.

Thank you. And the next question is from Dave Koning of Baird. Your line is open. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Yeah. Hey, thanks, guys. And I guess my first question just on the accounting, does this make you guys think about changing the way you do contracts so that you can do individual modules so that you can deliver them recognized right away rather than have multi-deliverables that you can't recognize for several quarters? John F. Prim - Chairman & Chief Executive Officer: Yeah, Dave, I wish it was that simple. We'd love to do that, but that really would not solve the problem. Part of the process of this evaluation is they look at any contracts that were signed on or about the time of that contract to see if you're doing exactly that, which I think they would perceive as an effort to try to get around the recognition interpretations. So I'll be honest with you, one of my frustrations is I have yet to get a straight answer to the question of what's the appropriate method of handling a situation when we know and the customer knows that there's one of these modules, one or more of these modules that they want to implement on a delayed basis, plan to do it that way from the start. We've yet to get any kind of reasonable guidance as to how to address that problem in an appropriate manner. So unfortunately unbundling the items would not help the situation. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Okay. So does that mean then there will be a permanent kind of bigger deferred revenue, this $172 million number, that's going to always kind of be out there and thus kind…

Thank you. The next question is from Tim Willi of Wells Fargo. Your line is open. Tim, please check to see if your line is on mute.

I'm sorry. Can you hear me now?

Yes, sir.

I'm sorry. I apologize. Just wanted to talk about maybe the tone of business during the quarter if we could a bit, just any trends that you saw, changes in behavior or priorities, anything around win rates versus loss rates that maybe you could address? If there's just anything to point out there, obviously the quarter was solid so that says something in and of itself, but just any observations you had about the marketplace? John F. Prim - Chairman & Chief Executive Officer: Yeah, Tim, business as usual. All three brands, Banking, Credit Union, ProfitStars, all of them were over 100% of their sales quote for the quarter and are over 100% on a year-to-date basis. I can't say that there was anything new or different in what customers were looking at or interested in. Again, it's not any one item that they're looking at. Core system sales remain strong. Complementary sales are very solid. Nothing really new in the competitive dynamic than we've seen in the past so it's really just another quarter of business as usual.

If I could just ask a follow-up, there's been a lot of attention and probably more to come around cyber-security and all these types of issues. In terms of your solutions, whether the proprietary or partnerships, or how would you, I guess, address that if we saw in the next year or two banks have to really, because of regulatory mandates, pressure from regulators, have to address that? I mean are you positioned from a product front, are these lucrative products for you to help address those issues? Or is that something that would be outside of your scope in terms of services and products? John F. Prim - Chairman & Chief Executive Officer: Yes, no, I would say that for the most part, Tim, it would be within scope. We have a number of solutions that have been gaining traction and we think will continue to, and some of those go back to the Gladiator acquisition that we did in, was that 2005, Tim? And some of the solutions for enterprise security monitoring that we built using that platform and that management team to build out some additional security capabilities, that's been gaining traction. We mentioned that we started July 1 with a new hosted network services offering. Again that's doing well. Again, it's in its infancy but we're seeing good results and good uptake and interest there. I think that will only increase not only as a result of the increased focus of examiners in and around security, but the competition for talent with network and engineering-related backgrounds. So in addition to all the people that we're trying to hire that type of talent before, you've now got the federal government who's trying to beef up their cyber-security infrastructure, I'm sure companies like Target and Home Depot and others that have seen in that business some of the security challenges, they're all beefing up. So in a company like Jack Henry where we are a technology company rated one of the top 100 companies to work for in IT by Computerworld magazine, the challenges we have recruiting technical talent, I can't even imagine what it must be like for a community bank or a credit union who has a staff of two people to be able to recruit that same type of talent. So I think a lot of these factors are going to help drive uptake of some of the solutions like the hosted network services where we can take that server infrastructure and all monitoring, patching, management of those types of services out of the financial institution. So we feel like we're well-positioned with our security solutions as that tension increases.

Great. Thanks very much. That's all I had, guys. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Thanks, Tim.

Thank you. The next question is from Brett Huff of Stephens, Inc. Your line is open.

Good morning, guys. John F. Prim - Chairman & Chief Executive Officer: Good morning. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Good morning, Brett.

The outsourcing growth was really good at 18%. Anything to – is that a – anything to call out there on that number? John F. Prim - Chairman & Chief Executive Officer: Well, Brett, it was solid just from normal business. As Kevin mentioned earlier there was certainly some benefit there from early termination fees, but I think it would have still been 10% or better without any benefit of early termination fees. So it just continues to be a combination of the fact that on the banking side 95% of all of our new deals that we do these days opt for outsourced delivery; that number's probably 60-plus percent year-to-date on the credit union side. We continue to see interest in moving from in-house processing to outsourcing by our existing in-house customers, which as we talked about the revenue uptake that takes place there. So it's just all the factors that have been impacting that business continue to be in place.

And the second question is on the new offering, and I'm forgetting what you're calling it, you just mentioned it in the last question where you're doing more of the infrastructure outsourcing for banks. John F. Prim - Chairman & Chief Executive Officer: Right.

I think last quarter you all said that early conversation, betas, a few servers of the total server pool at a particular bank might be being tested, et cetera. What's the specific update on those betas? Or do we just have more betas? Or do we have somebody fully outsourcing at this point? Any update on that? John F. Prim - Chairman & Chief Executive Officer: Yeah. And so just – we refer to that as Hosted Network Services or HNS as we refer to it around the office. And no, we're well beyond the beta stage at this point, Brett. I think to date we've signed either 13 or 15 customers that are looking to give us some or all of their network infrastructure. It's a combination of both. It's going very well. It is a complex sales cycle. I mean, you're dealing with many, many items in and around complex network related terminology, what products are they running that may or may not be Jack Henry products that we need to bring into our environment if we're going to host that server infrastructure for them. Telecommunications, a lot of factors that enter into that, so it tends to be not an easy short sales cycle just because there's a lot of research that has to be done to make that sale but it's going very well and as expected, it's not just a case of replacing the hardware infrastructures. We're typically finding that they take additional monitoring related services that are higher margin services that improve the overall profitability on the deal. If you look at a typical institution, if they've got 50 servers, the odds are that they didn't buy all 50 of those servers at one time. You know they started out with 10 and they added some products or they needed more capacity. And so they've got this server infrastructure in various stages of its lifecycle. So in some cases it will be less likely that they'll just rip out everything and give us all 50 of those servers at once. They might give us 10 and when the refresh cycle comes up on the next batch give us those. But we're pleased with the, what we're seeing in terms of the contract values and the recurring revenue and the uptake of those solutions at this point.

That's helpful. And then just last thing. On the refresh status on the various pieces of the cores on real-time. I know some of them are all full real-time now and you're cycling through sort of modules on the other. Can you just give us an update on that? Just there's been a lot of questions that we've gotten on that just given the increased focus on the market just from your competitors. John F. Prim - Chairman & Chief Executive Officer: Yes. So all of those projects, and there are a lot of different projects. I mean, real-time is one of probably 10 different things that might be going on with any product at any given time. But all the projects continue to track well. We're still talking different deliverables for these various projects, Dave (sic) [Brett], that will still extend into the future a number of years. But we're bringing those products to market incrementally as new enhancements are made. Let's for example take real-time that you asked about specifically. We introduced last year, and this is primarily on the SilverLake product because the Episys Credit Union processing system as you know is already fully real-time and has been since its inception; but SilverLake being more of a traditional banking developed system, we're moving it to the real-time operating environment. We released the first set of real-time capabilities last year. In this year's current release, we're extending that further, and sort of the final stages will be wrapped up related to that specific project in next year's release. But substantially the types of capabilities that customers are going to be most interested in related to real-time will be done by the end of this year. But I use that as an example because a number of these, many…

And this is – I guess the key that I'm getting at is this is just coming out, and as a user of SilverLake I'm just going to get this real-time capability as a matter of course, right? There's no change in my business process, et cetera? John F. Prim - Chairman & Chief Executive Officer: You will get the change as a matter of course. No price changes and frankly no requirement to implement it. If you're perfectly happy with the current method of processing and don't feel that you have a need for real-time, you will not be required and we won't flip a switch and now everything's processing real-time. It'll be up to the bank whether they do it that way or not, or – but the point is if they wake up five years from now and decide, oh wow, this real-time thing has become important, it'll be ready when they are.

Great. That's what I needed. Thank you. John F. Prim - Chairman & Chief Executive Officer: Thank you. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Thanks, Brett.

Thank you. The next question is from Glenn Greene of Oppenheimer. Your line is open. Glenn E. Greene - Oppenheimer & Co., Inc. (Broker): Thanks. Good morning. Just a number of clarifications on the restatement to begin with, because I'm – we're getting a lot of questions; I know a lot of people are confused. But just to level set us all, for fiscal 2015, just to be clear, it sounds like you're talking $252-ish million all in, given the year-to-date restated numbers and, Kevin, you sort of talked about $0.68 for the fourth quarter. So just to make sure that's sort of what we're thinking about for fiscal 2015. And then I'll follow up related to 2016. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Yes. Glenn E. Greene - Oppenheimer & Co., Inc. (Broker): Okay. So 2016 now, following up on David Koning's questions consensus is directionally $290 million. So that would be sort 15% or so EPS growth, or 18% if you backed out the term fee grow-over from this quarter. And I think what David was trying to get at is your revenue base is something like $50 million to $55 million lower on a full-year basis, but you're sort of implying your growth rate will be stronger going into next year. I don't know if that's due to the restatement or some other sort of core factor. And then on an absolute basis our revenue numbers and EPS numbers are kind of in the ballpark? Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Glenn, actually I made myself a note that if I didn't get questioned I was going to go back and clarify that exact point. Because after I said that I actually got an IM from my Controller and she slapped…

Thank you. We have a follow-up question from Dave Koning of Baird. Your line is open. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Yeah. Hey, guys. I don't know if this would be possible, but if you have Q1 and Q2 restated numbers too, just so we can get our models set for all the quarters? Or do you just have the year-to-date and Q3? Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: I do not have those at my finger-tips, Dave, but what I think I can do and I'll have to also make sure I can do this per SEC Counsel, but what I might do is be able to put those out on our JHA website. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Yeah... Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: And that way, and once I put them out there then if I can do that, then I would also be able to just e-mail them to you all to put in your models. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Yeah. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: So let me confirm. I'm actually going to feed in here in just a few minutes. We're actually here meeting for a quarterly board meeting for the next two days. I'll run that by him and make sure he is okay with that. And if he is, then we will put something out there. David J. Koning - Robert W. Baird & Co., Inc. (Broker): Okay. That's good. And then just one other question; are there going to be lumpy quarters when certain – elements come on? Is it going to create some lumpiness that goes up a lot in…

There are no further questions at this time. I'll turn the call back over for closing remarks. Kevin D. Williams - CFO, Treasurer & Head-Investor Relations: Thanks, Latoya. Again, we want to thank you all for joining us today to review our third quarter fiscal 2015 results. We're pleased with the results from our ongoing operations and the efforts of all of our associates to take care of our customers. We're looking forward to finalizing this detailed revenue recognition review and getting current with our SEC filings. But as Jack mentioned in the opening, despite these efforts our executives, managers and all of our associates have continued to focus on what is best for our customers and our shareholders. With that, I want to thank you again; and Latoya will you please provide the replay number?

Yes. Ladies and gentlemen, the replay number for this call will be 1-800-585-8367. And the passcode is 33663566. And once again that number is 1-800-585-8367. The passcode is 33663566. That concludes today's conference. You may now disconnect. Good day.