Premiere Global Services Q1 2010 Earnings Call Transcript

Premiere Global Services Q1 2010 Earnings Call Transcript
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Premiere Global Services (PGI)

Q1 2010 Earnings Call

April 22, 2010 05:00 p.m. ET

Executives

Sean O'Brien - SVP, Strategic Planning, IR

Boland Jones - Chairman and CEO

Ted Schrafft - President

David Trine - CFO

Analysts

Shyam Patil - Raymond James

Mike Latimore - Northland Securities

Tavis McCourt - Morgan Keegan

Sri Anantha - Oppenheimer

Presentation

Operator

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Good day everyone, and welcome to the Premiere Global Incorporated fourth quarter and fiscal 2009 conference call. Today's call is being recorded. This call is also being simultaneously broadcast over the Internet.

You can go to our website, www.pgi.com and go to our press section. Alternatively, you may listen to the rebroadcast from your telephone beginning at 8 pm Eastern Time today through midnight, Friday, March the 5th.

The replay numbers are 1888-203-1112. Again, that's (888) 203-1112 within the United States and Canada, or at 1719-457-0820. Again, that's (719) 457-0820 worldwide. The confirmation codes to access the replay is 3997824. Again, that's 3997824. (Operator Instructions)

At this time, I would like to turn the conference over to the Senior Vice President of Strategic Planning and Investor Relations for Premiere Global Services, Mr. Sean O'Brien. Mr. O'Brien, please go ahead sir.

Sean O'Brien

Thank you, and good afternoon everyone. If you've not received a copy of our first quarter earnings release, please visit our website at pgi.com where it is available in our Investor Relations section.

Joining me on the call today are Boland Jones, Chairman and CEO of Premiere Global Services; Ted Schrafft, President of PGI, and David Trine, our CFO. Following some brief comments by management, we'll open the call to your questions.

But before I turn the call over to Boland, I'd like to remind everyone that statements made in this conference call other than those concerning historical information should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Our actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those we identified in our annual report on Form 10-K for the year ended December 31, 2009, and our other filings with the SEC.

In addition, during this call, we will present non-GAAP financial measures of our business. Please consult both our press release and Form 8(k) filings of this afternoon for reconciliation of these non-GAAP financial measures to the most comparable GAAP measures. These materials are also available on our website at pgi.com.

At this point, I'd like to turn the call over to Boland.

Boland Jones

Thanks, Sean and good afternoon everyone. This is Boland Jones, Chairman and Chief Executive Officer of Premiere Global Services. Welcome, and thanks everyone for joining our first quarter 2010 earnings call.

I'm super pleased to announce a good quarter performance by our company this afternoon. Despite continuing pressure from high global unemployment and lower business activity, we have achieved our financial targets for this first quarter while also advancing a number of our key strategic initiatives.

In the first quarter we grew consolidated net revenues by nearly $2 million from the fourth quarter of 2009 despite headwinds from a strengthening dollar. We also drove a 130 basis point sequential improvement in our gross margin in this first quarter and we realized the full benefit of the restructuring initiatives we completed just last year.

Importantly, the first quarter marked a return to a more normal seasonal usage trend in our customer base, which we believe confirms that our business trends troughed last September, as we indicated to each of you on our last call. Today, we have a healthy pipeline of new business opportunities and we continue to win and ramp meaningful new customer accounts, which we believe underscores the value of our meeting and collaboration solutions during all economic times, good or bad.

We're encouraged by the improving trend in our customer base and our new business momentum. But we continue to believe it will definitely take a broader sustained pick up in global business activity and employment to get our revenue growth back to its historic double digit levels. Regardless, we continue to implement our plans and strategies to position PGI for accelerated growth and profitability.

I'm extremely pleased and very proud at the progress our team has made during the year in turning challenges of our current economic environment into opportunities for PGI. As result of our efforts, we entered 2010 with a more streamlined organization and with a focused and simplified strategy of becoming the best meetings company in the world. It's an exciting time for PGI, and it's an exciting for our industry.

In our decades of experience in this space I cannot remember a time when collaboration was more visible and more important than anytime it is today. Collaboration has moved beyond just a cost effective alternative to business travel.

It's becoming a critical part of day-to-day business culture, as companies become increasingly aware that their very competitiveness relies on their ability to unlock and seamlessly share the information expertise held by the individuals and knowledge workers across organizations. To take full advantage of this heightened enterprise attention to collaboration and to further our market lead, we remain focused on a few key market strategies.

First, we're continuing our transition to a more consultative solutions based sales approach. Our conversation with enterprises today revolve around some of the most critical business decisions; how them make their people more productive, more efficient, more connected, how they speed up critical processes like innovation, how they get their products to market faster and ultimately how they accelerate their time to revenue.

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