EasyLink Services International Corporation (ESIC) F3Q10 (Qtr End 04/30/2010) Earnings Call June 4, 2010, 8:30 a.m. EDT Executives Andrew Kaminsky – Investor Relations Thomas Stallings - Chief Executive Officer Glen Shipley - Vice President, Chief Financial Officer and Secretary Presentation Operator
Also note that all dollar figures and percentages are approximations and that the detailed reconciliations of GAAP to adjusted results can be found in the press release we issued yesterday that is posted on our Web site. After we review the third quarter results, we will open the lines for questions.At this time, I would like to turn the conference call over to Tom. Thomas Stallings Thank you, Andrew. Good morning and thank you for joining us today. I am going to provide an overview of our third quarter accomplishments and financial results, comment on our 2010 outlook and then Glen will make some brief remarks before we take any questions that you may have. As many of you may have read, last month we redeemed our series E preferred shares. Glen will discuss the redemption in greater detail later in the call. However, I would note the continued support of Easylink demonstrated by SunTrust and our lender group as evidenced by their funding of an additional $5 million under the accordion feature of our term note, which was used to redeem the series E preferred. Turning to the quarterly overview, we are very pleased with our third quarter results and continue to be enthusiastic about the rest of our fiscal year. Our sales and marketing team have continued to aggressively market our products and services around the world and are focusing our efforts on building our pipeline in a number of sectors such as healthcare and financial services. Additionally, we are taking advantage of the sale and consolidation of some of our larger EDI competitors and refocused our efforts on winning over new accounts. During the third quarter we added twenty-one new names to our roster of premier clients with key customer wins at Commerzbank AG, Union Bank of California, Faurecia Services Group, Mizuno USA and Mrs. Fields Companies to name a few. These twenty-one new accounts represent $815,000 in additional annual recurring revenue.
As we mentioned last quarter, our continued focus on superior customer service has allowed us to expand our presence within our existing larger accounts with additional annual billings of $735,000 This further demonstrates our status as a trusted partner providing tangible value to our client’s businesses.In order to build upon our product offerings, we signed a strategic agreement to become a private label reseller with DataMotion. This agreement will allow us to accelerate our deployment of a secure e-mail solution that automates the transmission of encrypted information without requiring additional capital investments by us or our clients. As we have said previously, our software-as-a-service model is very compelling to companies as they strive to create more efficient operations and drive additional profitability within their own organizations. The continual increase in compliance and the necessity for security grow on a daily basis throughout the global enterprise. As a result, the value proposition of our products and services increase and become more integral for our clients to cost effectively and securely communicate with their customers, employees and trading partners. Read the rest of this transcript for free on seekingalpha.com