Good morning, and welcome to Wiley's Fiscal Year Second Quarter Earnings Conference. As a reminder, this conference is being recorded. At this time, I would like to introduce Wiley's Director of Investor Relations, Brian Campbell. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for participating in our call today. Before introducing Steve Smith, President and Chief Executive Officer, I would like to just remind you that this call is being recorded and may include forward-looking statements. You should not rely on such statements as actual results may differ materially and are subject to factors that are discussed in detail in the company's 10-K and 10-Q filings with the SEC. The company does not undertake any obligations to update or revise forward-looking statements to reflect subsequent events or circumstances. For those who prefer to listen to the call over the phone, but would like to still view the slides, we recommend clicking on the gears icon located on the lower portion on the left-hand side window and selecting Live Phone. This will eliminate any delays you may experience in viewing the slide transitions as well as remove any potential background noise should you ask a question on the call. A copy of this presentation will be available on our Investor Relations page at the conclusion of the call. Thank you. I would now like to turn the call over to Steve.

Good morning. In addition to Brian, I'm joined by John Kritzmacher, Wiley's Chief Financial Officer. I'm pleased to provide you with our report on Wiley's second quarter financial performance today including commentary on our expanding solutions businesses and our expected performance for the balance of our fiscal year. Second quarter revenue rose 6% on constant currency basis driven by growth in journals, contributions from our two newly acquired Talent Solutions businesses, CrossKnowledge and Profiles International, and double-digit growth in online test preparation, education services formerly Deltak and WileyPLUS Workflow Solutions. Journal subscriptions revenue continued to increase steadily with 2% growth in the quarter. Journal performance overall was enhanced by a $10 million in revenue from a non-recurring backfile license with the large European consortium. This quarter, we reached an important milestone in our transition to digital solutions with 60% of our revenue now coming from digital products and services up from 53% a year ago. Adjusted operating income rose 10% at constant currency due to revenue growth and restructuring savings. Adjusted EPS grew 8% at constant currency to $0.90 a share, note that adjusted operating income and adjusted EPS exclude the impact of restructuring charges, impairment charges and a U.K. deferred tax benefit in the prior year. Our performance in the first half of the year closely mirrors what we have reported for the second quarter with revenue growth of 5% at constant currency and EPS up 8%. From this point forward, I will exclude the impact of foreign exchange when commenting on all variances in order to give a clear measure of our operational performance. Adjusted EPS, adjusted contribution to profit and adjusted operating income metrics exclude all prior year restructuring charges or credits, impairment charges and the aforementioned tax benefit. Research revenue rose 5% to $265 million growth…

[Operator Instructions] We will have our first question from Drew Crum, Stifel.

All right, good morning everyone. Thanks. So first question pertains to Deltak, 19% growth in the quarter had accelerated as you suggested it would from the first quarter. But, want to get a sense as to how you are thinking about the pace of growth in the second half of fiscal 2015, I guess we haven't seen the sequential growth from your fiscal fourth quarter where you had significantly fewer revenue generating program. So maybe there was a mixed issue there. But, just want to get a sense as to how you are thinking about the growth in the second half of the business?

Sure, Drew. Thanks for the question. Let me start and maybe John can jump in with any further color around that. So as we said on the first quarter call, there is a phasing in of during the course of the year of new programs as those new programs come on stream that has made a difference looking at second quarter. The first quarter, we expect to continue to benefit from the addition of new revenue generating programs through the year as those come on stream and begin to attract enrolment. And just speaking about the growth of Deltak overall and we feel encouraged about where we stand today, we have a strong pipeline, would remain you that growth in Deltak comes from a combination of growth in enrolments with existing programs. Growth of new programs in existing partners and the addition of further new partners and as we look forward to that pipeline we see conditions continuing to be very strong for growth and the uptake of the Deltak business model remains very attractive with new and existing partners.

Okay. And then returning to the topic of restructuring, I think you said about half of that was severance and other, what is the impact we should expect on the cash flow statement and kind of a follow-on are you anticipating any cost savings or subsequent revenue synergies from the action?

So Drew its John. Good morning.

Hi, John, good morning.

Breaking the part into two pieces, so first the real estate portion of this is about half of the anticipated charge of $18 million. The restructuring charges related to our exit from facilities that were enabled by the restructuring actions that were implemented across the last six quarters so that was – work that's been underway for some time and the charge comes when you have actually exited the properties. So we will be completing that in this quarter. In fact, there are three principal properties involved and we have already exited two that are involved in the charge and one will be done in a few weeks and those are Singapore, Oxford – one of our facilities in Oxford and part of our San Francisco Office. So those were in motion, essentially those are charges for net expenditures that we anticipate on those leases that might not be recovered through sub-letting. The remainder of the charge relates to severance. Severance being as Steve described principally related to our research reorganization and consolidation and since expected synergies around our operations related to books. Our expectation is that the recovery on those charges will occur by the end of our fiscal 2016. So it's again about half of the 18, in the way of severance charges and we expect to pay back on that to be pretty short.

Got it. Okay. And then just last question, as far as CrossKnowledge and Profiles are concerned, I think going into the fiscal year you were guiding to about $0.10 of dilution from all the investment spending there. How are you tracking that? It looks like the second quarter contribution to profit was down a little bit, but you are up significantly year-to-date. Just want to get a sense as to where you are relative to that prior guidance? Thanks.

Go ahead, Steve. And I will follow.

Actually Drew – so the CrossKnowledge and Profiles businesses have – we have been continuing the work to consolidate those with our other assessment business that consolidation is on track and we are now poised to launch a fully integrated Talent Solutions business for all of Wiley's acquisitions. The performance of the business in fiscal year 2015 is expected to align with our expectations including that $0.l0 dilution, which is still what we expect from a combined basis across CrossKnowledge and Profiles. And again, the pipeline is building in terms of new customers for that business and we feel great about where it is and prospects as an important engine for growth for Wiley in the future.

Okay, great. Thanks guys.

[Operator Instructions] We will go next to Daniel Moore, CJS Securities.

Good morning. Thanks for taking the question.

Hey, Dan.

Just quickly on guidance for the full year, the $10 million backfile license sale, was that contemplated or anticipated when you initially give guidance for the year?

Good morning, Dan. First, I would point out that backfile sales are part of the normal flow of our business, so to lead people on the call to believe that this is out of the flow of our business in general. That said, the reason we are calling out this particular backfile sale is unusually large. So within revenues each year there are typically a number of smaller transaction this one just individually happens to be large. That said this particular opportunity had been in works for quite a long time. And it was in our guidance, we anticipated that it would occur during this fiscal year. So yes, it was assumed in our plan for the year.

Perfect, appreciate it. And then switching back to Deltak a little bit. With the new agreement in the U.K. and Birmingham, maybe just talk about landscape in Europe where it is versus the U.S. in terms of adoption of online higher ed programs, what the competitive landscape looks like and what your expectations are for ramping that growth opportunity in the next few years?

Sure. So Dan, this is Steve. In my remarks I think I described it as a springboard for future growth. We do see further opportunities in the EMEA region, in Europe, Middle East and Africa for the online program management business model. There are not as many partners working with online private management providers in the U.K. and Europe as there are in the U.S. today. So it's fair to say the market lags a behind a little. But institutions like the University of Birmingham see – the same opportunity as U.S. universities to the extent the reach to attract new students to generate new profitable revenue streams and to leverage their brand globally by offering online education with high-quality programs with partners like Wiley and Deltak. So we have other European customers in the pipeline, we see other opportunities in the U.K. as you probably know it takes – we need to build a bit of – build a team around each partner and having the base now to build from gives us an opportunity to really explore further growth opportunities. I would say that the early opportunities are likely to also be in the U.K. but we also see opportunities in other European countries as well as in some of the countries in the Arabian Gulf area.

Got it. And then in professional development you mentioned CrossKnowledge, talk about the – how the integration process is going with Profiles and Inscape into a more seamless offering and how that is being received in the market?

So I don't want to get into too much detail around that. But, the Profiles business is built around primarily pre-higher assessment tools that were sold both direct to corporations and through a reseller network. Inscape primarily post higher assessment tools and although there is some overlap between Profiles and the Inscape portfolio and with Inscape selling its post higher assessments primarily through a reseller network. We first of all, started by looking at sales channels to make sure that we are upselling to all existing Profiles customers, the Inscape network and vice versa. We are also integrating the whole thing with our direct sales capability that came to with cross-selling. But to provide a network of different sales models and selling – our sales channel opportunities combining the global reach of CrossKnowledge, the strength of Profiles and Inscape in the U.S. and the strong reseller network that's been selling both Wiley and Inscape products for several years. And actually that's helping us to identify significant revenues synergies. We are also aligning the management of Profiles and CrossKnowledge and Inscape into a single team. And are looking at the opportunities to rollout business models that offer an end-to-end solution to corporates to help them manage their talent base and resolve the challenges of how to develop a competitive work force to today's environment.

In terms of the full cross-selling capabilities that still obviously in progress at this stage.

Yes. I think as we move into calendar year 2015 that capability will become – it will become cemented into the way that we work. But we – as you suggest, we are not all the way there yet. But we are making very good progress.

Prefect. And then just lastly, just in terms of the capital allocation, talk about the acquisition landscape for professional development and then you stepped up buybacks in Q2 absent significant acquisitions, would you likely be similarly aggressive in buying back stock in coming quarters?

As always we will continue to use our cash focusing on our main priorities, first priority is to continue to invest in organic growth wherever we can see opportunities to drive profitable revenue growth from innovation around our core and existing businesses. We will continue to use cash to make acquisitions particularly around that Talent Solutions business where we see gaps, an opportunity to round out the portfolio into a total end-to-end Talent Solutions offerings provided that we can identify targets and consummate bills at an attractive economics. And to the extent that we still have additional opportunities to deploy cash flow beyond that we will continue to focus on buyback and dividend as ways to return capital to shareholders.

Thank you, again, and we look forward to seeing at our conference in January.

Thank you.

Thanks Dan.

[Operator Instructions] It appears we have no further questions in the queue. I will turn the conference back over to Mr. Smith to offer any additional or closing remarks.

Well, we thank you for joining us on the call today. And we look forward to speaking with you again at the end of our third quarter.

That does conclude today's conference. Thank you for your participation.