Good morning and welcome to Spok's first quarter investor call. Today's call is being recorded. Online today, we have Vince Kelly, President and Chief Executive Officer; Shawn Endsley, Chief Financial Officer; and Colin Balmforth, President of the Operating Company. At this time, for opening comments, I will turn the call over to Mr. Endsley. Please go ahead, sir.

Good morning. Thank you for joining us for our first quarter investor update. Before we discuss our operating results, I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Spok's future financial and business performance. Such statements may include estimates of revenue, expenses and income, as well as other predictive statements or plans, which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results. Spok's actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainties. Please review the risk factors section relating to our operations and the business environment in which we compete contained in our 2014 Form 10-K, our first quarter Form 10-Q, which we expect to file later today, and related documents filed with the Securities and Exchange Commission. Please note that Spok assumes no obligation to update any forward-looking statements from past or present filings and conference calls. With that, I'll turn the call over to Vince.

Thanks, Shawn, and good morning. We're pleased to speak with you today regarding our first quarter operating results and what we believe was another outstanding quarter for Spok. We made further progress toward our goal of becoming a consistently growing business and long-term provider of critical communication solutions. Our software sales momentum continues and our paging revenue decline has been slowing. We are not yet at the point where on an annual year-over-year basis our software growth overcomes our paging revenue erosion, but we are on plan and tracking with our strategy. In the first quarter of this year on a consolidated basis, we met or exceeded our internal expectations, consistent with our previously provided financial guidance for 2015. The accomplishments included strong performances from our sales team. We achieved record-high first quarter bookings, software revenue increased from the year-earlier quarter and our backlog and sales pipeline remain very strong at March 31. In addition, wireless trends continue to improve, as our annual paid return reached its best level in more than a decade, and we ended the quarter ahead of our operating goals for total revenue, gross placements and average revenue per unit. Overall, we met or exceeded the majority of our operating goals, enhanced our product offerings, expanded our market reach, strengthened our balance sheet and again returning capital to stockholders in the form of cash dividends and share repurchases. Shawn and Colin will provide details on our financial performance and operating activity shortly, but first I want to review some other key results for the first quarter. Number one, software bookings increased 4.8% to $17.7 million from the year-earlier quarter, setting a record high for first quarter bookings. Software revenue rose to 10.7% to $17.4 million from the first quarter of 2014, while the backlog totaled $40.6…

Thanks, Vince. Before I discuss the financial highlights for the first quarter, I would again encourage you to review our first quarter Form 10-Q, which we'd expect to file later today as it contains far more information about our business operations and financial performance than we will cover on this call. As Vince noted, we are pleased with our overall operating performance for the first quarter, increased software revenue and bookings compared to the year earlier quarter coupled with improving wireless trends enabled us to maintain positive cash flows and a strong balance sheet. We also continue to make steady progress toward our long-term business goals. Overall, we believe we are off to a very good start to 2015. This morning I will review four key areas that influenced our first quarter financial performance. They include: number one, factors related to first quarter revenue; number two, selected items that influenced first quarter expenses; number three, a brief review of balance sheet including deferred tax assets; and number four, an update on our financial guidance for 2015. As usual if you have specific questions about these items or any of our quarterly financial results, I will be glad to address them during the Q&A. With respect to revenue for the first quarter consolidated revenue totaled $48.1 million. Of the total, software revenue increased 10.7% from the year earlier quarter to $17.4 million, while wireless revenue declined 10.7% to $30.7 million. Our software revenue represented 36.2% of our total revenue in the first quarter 2015, as opposed to 31.5% of total revenue in the first quarter 2014, reflecting the success of our continued transition. First quarter software revenue reflected increases in both operations and maintenance revenue compared to the first quarter of 2014. As I have noted on previous calls, software operations…

Thank you, Shawn, and good morning. The first quarter was a positive start to the New Year. Our sales and marketing teams helped us close Q1 with a record first quarter software bookings of $17.7 million. As mentioned earlier, this represents a 4.8% increase over Q1 in 2014, and includes a 99.7% renewal rate for maintenance. A testament to the value our customers place in our support services and ongoing product developments. The trust these long-term customers place is us is further demonstrated when they return to Spok for upgrades to their existing applications, when they add new products and expanded portfolios of communication solutions. For example, a large health system in the Southern U.S. needed to give the switchboard operators of several of their locations, a call accounting solution to track call volumes and operator performance metrics. Already a customer for our paging solution, this healthcare provider selected our console solution, because of the strength of our existing partnership, the dependability of our solutions and the functionality that will help them grow. Another large West Coast health system, a long time customer of our console, paging and encrypted texting solutions is consolidating multiple datacenter locations into a single site. With the complexity of this type of project, they hired our consulting services team to work with them, as they define infrastructure requirements and begin planning this larger undertaking. In addition, a mid-sized hospital on the East Coast purchased our web directory and on-call solutions to support their existing Spok console and paging products. This customer has outgrown the in-house tools developed for these functions and needed an alternative quickly, because operators were tasked with handling a larger volume of requests on top of their daily responsibilities. They selected Spok to take advantage of the integration with their existing infrastructure…

Before we take your questions I want to comment briefly on the couple of items that maybe of interest. First, I want to update you on our current capital allocation strategy. And second, I want to review our key goals and business outlook for 2015. With respect to our current capital allocation strategy, our overall goal is to achieve sustainable business growth, while maximizing long-term stockholder value. Towards that end, the allocation of capital will continue to be a primary area of focus for us. As most of you know we have spent substantial time over the past few years evaluating many acquisition opportunities to enhance our portfolio of software solutions. As such, we have reserved capital for one of more such acquisitions. To date, we have not yet identified the candidate that meets our acquisition criteria primarily due to what we see as an unacceptable private market valuation expectation. None the less, we remain optimistic in continue to review viable candidates that will be a good strategic fit. However, as we've discussed in the past, we will remain disciplined in our approach. With regard to other uses of capital, we expect to continue paying our quarterly dividend of $12.5 per share or $0.50 annually for the foreseeable future based on our current projections for operating cash flow. In addition, we may buy back additional shares of our common stock from time to time into our share repurchase program depending on the stock price and market condition. As I noted earlier, we repurchased 27,467 shares of common stock during the first quarter for approximately $0.5 million. As a result approximately $14.5 million remain authorized for purchase under the buyback plan, which extends through yearend 2015. Additionally, we plan to return a total of $26 million in capital to shareholders in…

[Operator Instructions] We'll go first to Josh Paulson from Claragh Mountain Investments.

As Shawn mentioned, you guys have made a strong push for your software solutions at various conferences earlier in the year and continuing through July. Can you comment further on some of the feedback you receive from the sales team attending these conferences? In general, I'm looking for the kind of comments in three areas: one, for your actions to your solutions from potential customers; two, volume of qualified leads resulting from the conference; and three, expectations on the number of lead conversions and when you might close on some of those resulting in new customers?

Well, three questions then. The last two, the volume of qualified base and expectations has one the lead conversion, we don't disclose that information. We track it internally, but it's something we've chosen to disclose yet. In terms of just general feedback from our solutions in the marketplace, attending these conferences, obviously it's been very strong. We continue to expand our bookings on a year-over-year basis. We're very pleased with that. We're certainly ahead of plan there. We're also ahead of plan on our revenue for both our software and wireless goals and the fact that our customers are renewing our software maintenance at over 99% rate means that the solutions are extremely sticky. So we have a very broad integrated suite of software solutions. While we have some competitors on a point-to-point basis, we don't have anybody else out there right now that does the full depth and breadth of what we do and it's been very positively shown in feedbacks from customers that are attending these conferences. Colin or Hemant, I don't know if you guys want to comment on that as well.

Yes, while we don't release the actual numbers, Josh, the increase in marketing qualified leads that we've seen year-over-year has been very nice to see. And in fact, I can't share the metric for Q1 '14 to Q1 '15, we're seeing an increase of marketing qualified leads or MQLs of 33.9%. So that's a great sign. And we're getting right positive reaction at each of these events. I'll update you as a team on HIMMS for Q2, since that's in this period.

And we'll take a follow-up question from Josh Paulson.

Yes, just following up, you guys also mentioned your public safety sector grew significantly compared to Q1 2014. Can you comment, and maybe you can't disclose this as well, but how many customers you currently have in public safety, or at least maybe how many new accounts you added this quarter? And approximately how much is software operation revenue that accounted for?

Well, obviously, as you just pointed out, we don't disclose the breakout by customer for our software business yet. We're taking a look at the full disclosure that we make in our 10-Q and over time we'll be expanding our software disclosure, but we don't break that out yet. So I don't want to start today, because we're not prepared for that. Colin, do you want to add anything to that?

I'll just reiterate that we did see some excellent growth and that this has been a trend actually that's been occurring since, I would say, around the tail end of Q2 last year. So we've seen tremendous expansion in public safety and our E9-1-1 business in particular for Q1 this year as well.

And there are no further questions at this time. End of Q&A

Well, thank you very much for joining us this morning. We look forward to speaking with you again after we release our second quarter results. Everyone have a great day.

This does conclude today's conference. We thank you for your participation. You may now disconnect.