Wireless Ronin Technologies, Inc. (RNIN) Q1 2010 Earnings Conference Call May 6, 2010 4:30 PM ET Executives Linda Hofflander – Chief Marketing Officer James Granger – CEO Darin McAreavey – VP and CFO Scott Koller – President and COO Analysts Jay Meier – Feltl and Company Jim Goss – Barrington Research Calvin Hori – Hori Capital Dwayne Kennedy [ph] Jack Fred [ph] – Discovery Investment Presentation Operator
In addition, our comments may contain certain non-GAAP financial measures including non-GAAP operating loss per share. For additional information, including a reconciliation from GAAP results to non-GAAP measures, how the non-GAAP measures provide useful information and why we use non-GAAP measures, please see the reconciliation section of our press release, which appears on our website at www.wirelessronin.com.Now, I’d like to turn the call over to Jim. Jim? James Granger Good afternoon everyone and thank you for joining us on today’s call to discuss Wireless Ronin 2010 first quarter results. Today’s update will be brief since our fourth quarter 2009 earnings call was just recently held in mid-March. During the past several quarters, we have discussed how our position in the digital signage industry and how we have been preparing Wireless Ronin for growth. We have been investing time and effort into our infrastructure and business and we believe this will pay off in the long run. Our recurring, hosting and support revenue for the first quarter affirms our efforts with a three-fold increase on a year-over-year basis. We believe this validates our business model and that we are making the right moves for creating a strong foundation upon which our customers can rely. There is no doubt that a large commitment from our customers is what we need, but our clients have to be in a position to make those commitments to a large scale deployment. All companies, including Wireless Ronin are recovering from the poor economy. So we will continue to invest in our RoninCast software to ensure we will be the best and be the best and be able to meet the demands of our customers and our prospects. We believe that in addition to our continuing work to improve Wireless Ronin, the recent passage of the Healthcare Reform Act, which includes a provision regarding menu labeling, will drive higher adoption rate for digital signage over the long run.
The provision of the act requires certain restaurants and retail food establishments in the food service industry to display calorie information. When the final regulations interpreting the provisions have been determined, we believe the food service industry will turn to digital media at these solutions to quickly become 100% compliant with the new law.Our recently published white paper outlines how digital signage is being adopted as a solution to comply with these new regulations. There has been great interest on the part of many of our customers in this much anticipated provision. Now before I turn the call over to Darin, I wanted to mention the recent change we announced in our executive management team. As you may have read in our press release on April 21st, Scott Koller has been promoted to President and Chief Operating Officer. I will remain the company’s Chief Executive Officer and of course, a member of the Board of Directors. Scott’s promotion represents a natural progression and he has assumed the responsibility for the company’s sales, project management, operations and development organizations over time. It confers a title consistent with the responsibility Scott has substantially discharged as Executive Vice President and COO. Scott has been running significant business functions based on his extensive knowledge of our employees, our customers, our investors and the industry. I am very pleased to have Scott in this role as we focus together on topline sales growth and manage scalable resource expenses to match revenues. I would now like to turn the call over to Darin McAreavey for an update on our financials for the first quarter of 2010. Darin McAreavey Thanks Jim and good afternoon. The company reported revenue of $1.1 million for the first quarter of 2010, a 25% decrease from $1.4 million in the first quarter of 2009. As of March 31, 2010 the company had received purchase orders totaling approximately $1.1 million, for which did not recognize revenue. Read the rest of this transcript for free on seekingalpha.com