Creative Realities Inc (CREX) 2007 Q2 法說會逐字稿

Good morning. My name is Amanda and I will be your conference operator today. At this time I would like to welcome everyone to the Wireless Ronin 2007 Second Quarter earnings Conference Call. (OPERATOR INSTRUCTIONS.) I would now like to turn the call over to Mr. Al Galgano, Investor Relations. Please go ahead, sir.

Thanks you, Amanda. Thank you and welcome, everyone, to Wireless Ronin's 2007 second quarter earnings conference call. I'm Al Galgano of Investor Relations for Wireless Ronin Technologies. Joining me on today's call are Jeff Mack, Chairman, President and Chief Executive Officer, and John Witham, Executive Vice President and Chief Financial Officer.

After brief comments from management, we will open up the call to your questions. For the question and answer session, we will be joined by Scott Koller, Executive Vice President of Sales and Marketing.

But, before we begin today's call, I need to remind you that the information presented and discussed today includes forward-looking statements which are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.

Our actual results in future periods may differ materially, and you should not (inaudible) undue certainty to our forward-looking statements. Risks and uncertainties that could cause our actual results to differ from those expressed or implied for forward-looking statements include those set forth in the cautionary statement we filed on 8K earlier today.

In addition, our comments will contain certain non-GAAP financial measures, including adjusted operating loss. 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 non-GAAP reconciliation section of our press release which appears on our website at www.wirelessronin.com.

Thank you for your attention, and now I'd like to turn the call over to Jeff. Jeff?

Thanks, Al, and good morning, everyone. And thanks for joining us today.

Today we're released to report Wireless Ronin Technology's 2007 second quarter results. During today's call I will highlight a few of our accomplishments during the quarter and John will recap the financials. I'll conclude by commenting on our outlook for the remainder of the year.

While we remain steadily focused on day to day execution and our long-term goals, we're pleased with the Company's performance during the second quarter. We achieved a number of additional milestones and were able to translate momentum generated in prior periods to the top line growth.

For the 2007 quarter, the Company reported record sales of approximately $3.1 million, compared to sales of $333,000 during the same period last year. As we explained in prior conference calls, there is considerable amount of variability in our sales cycles which makes quarter to quarter sales revenue a challenge to predict. Nevertheless, we remain confident in the sales momentum generated thus far in 2007, the contract activity created during the second quarter and the overall continued demand for RoninCast.

Turning to the bottom line, we reported a net loss for the second quarter of $980,000 or $0.09 per basic and diluted share, compared to a net loss of $2.2 million or $2.80 per basic and diluted share during the same period last year.

We completed a number of initiatives during the quarter that will improve our ability to compete and grow. As you know, we successfully completed our follow-on stock offering in June and have begun putting our cash to work.

As we announced on August 1st, we have entered into an agreement to acquire McGill Digital Solutions, a provider of customer interactive software solutions primarily used in e-learning and digital signage applications. We believe McGill's capabilities will give us the ability to add value to Ronin's cash and differentiate our product offering.

In addition, it will help us expand our reach into the automotive market, a sector where McGill has a particular strength. For example, McGill currently has approximately 2,800 software installations across approximately 2,400 Chrysler dealerships located throughout Canada and the U.S. More on this relationship later in the call.

We've moved our headquarters to an expanded location in the Twin Cities. Not only does this move give us room to grow, this new facility will add horsepower to our marketing efforts by enhancing our ability to showcase RoninCast to prospective customers.

So, here are some of the highlights from the quarter. Our relationship with Reuters continues to grow. The InfoPoint project continues to roll out and we are now controlling the Reuters network in over eight countries, including France, German, Italy and Singapore.

In addition, we will be taking over the control of the Reuters Canary Wharf [Jumbo Trial] located in London. Due to its visibility, the Canary Wharf applications is a testimony to Reuters confidence in RoninCast. All of the Reuters applications are controlled from our network operations center, or NOC, in Minneapolis, which provides complete global network hosting and management capabilities. As discussed later -- as discussed last quarter, our NOC will be integral to our growing recurring revenue streams and to our gross margin over time.

Last quarter we discussed our initial entry into the Quick Serve Restaurant, or QSR industry. During the quarter we completed a test of Wendy's franchise -- a Wendy's franchise. And our discussion with Wendy's continues at the corporate level. Currently, our largest opportunity in the QSR industry is with Kentucky Fried Chicken, which is part of the Yum Brand. We've installed an electronic menu board at Kentucky Fried Chicken in Louisville, Kentucky, where Yum Brands' headquarters is located. We will also be installing two more additional sites over the next four weeks. KFC alone, through corporate owned and franchise locations, has 5,400 restaurants.

Similar to Reuters InfoPoint program, the hardware we are using for electronic mini boards is supplied through our strategic partner and reseller, Richardson Electronics. Our relationship continues to grow with Richardson as we are now jointly working together in a variety of new opportunities.

Our potential partnership with [PartnerTech] continues to develop. This is highlighted by my recent visit to PartnerTech's headquarters in Taiwan to meet with their management team. PartnerTech, as we explained in our last conference call, is an Asian-based hardware manufacturer. We are confident that we will solidify our relationship in the very near future. An agreement with PartnerTech would give us the presence and reach required to take advantage of the large Asian market.

Our interaction with PartnerTech has also led to a preliminary relationship with another Asian-based company known as Global Star, a manufacturer of professional gaming machines. Currently, they have more than 25,000 gaming machines located throughout Asia. They're interested in LTD screens in their games for advertising throughout their network. We believe the relationship with Global Star and PartnerTech would provide a significant additional expansion opportunity for RoninCast in the Asian-Pacific region.

We've been advised by [NewSight] Corporation, our largest customer during the first six months of 2007, that NewSight has reprioritized various elements of its planned digital signage system implementations. In particular, NewSight has delayed the rollout of network installations in the large, upscale malls and the launched installation and operation of digital signage networks in physicians' offices throughout the U.S.

As a (inaudible) digital signage priorities to their site, we have entered into an agreement to provide digital signage to a large grocery store chain in the Mid-Atlantic region. In particular, we'll retrofit their existing network and newly configure approximately 75 stores. NewSight's plans to upgrade certain equipment purchased from us during the second quarter of 2007 for these installations.

Despite the addition of the grocery store chain installations, NewSight's reprioritization of pending projects will negatively affect our [2000] revenue from NewSight, provided those contracts are not reinstated prior to year-end.

We have solidified a relationship with Checkpoint Systems. This month we entered into a partnership agreement with Checkpoint, and have participated with Checkpoint in presentations to three large retailers. The advantage of the Checkpoint and Wireless Ronin relationship is significant. Checkpoint customers are able to leverage their existing security signage into a dual platform that can continue to perform its loss prevention functions while also providing digital signage technology.

Lastly, an update on Sealy. As previously discussed, Sealy's award-winning Sealy Touch application engages customers and helps with their mattress selection process for installation Sealy is finalizing its analysis POS data that it has neglected over the last six months. Although this information is proprietary, we can say the initial subjective and objective research is extremely positive. At this point, we are still in position to install a number of Sealy touch units in 2007.

As evidenced by our growing pipeline, we are currently involved in numerous RFPs and (inaudible) with a number of prospects in industries ranging from cable communications companies to consumer goods manufacturers. We look forward to announcing additional progress in these spots in the future as we're able to.

So, we're pleased to see an increase in customer adoption of digital signage, expansion in our sales opportunities, and continued validation of our technology. In fact, during the second quarter we received top awards at the Digital Signal Expo by our work with clients Zia and Canterbury Park Racetrack and Card Club.

Through our key (inaudible) relationships, as well as our expanded direct sales force, we've worked hard to build a diverse sales channel that's beginning to pay off.

Now, I'd like to turn it over to John Witham to go over the financial results in more detail.

Thanks, Jeff.

As Jeff noted, we reported second quarter 2007 total sales of approximately $3.1 million in comparison with $333,000 in the second quarter of 2006, and $196,000 in the first quarter this year. On the bottom line, we experienced a $980,000 net loss in the second quarter 2007 compared to a $2.2 million net loss in the second quarter of 2006. The decrease in the net loss from a year ago quarter was primarily attributed to the increase in sales activity during the quarter, and the decrease in interest expense offset by increases in operating expenses. Net loss was also primarily offset by $279,000 interest income from cash investment.

In the second quarter of 2007 we've recorded a basic and diluted net loss -- diluted loss per share of $0.09 compared to a basic and diluted loss per share of $2.80 last year. While our sales performance and other factors decreased net loss during the quarter, per share net loss was further reduced by the number -- increased number of outstanding commons shares as a result of our initial public and follow-on offerings in November of 2006 and June of 2007.

For the first half of 2007, we recorded sales of $3.3 million in comparison to $934,000 during the six months of 2006. Net loss for the first six months of 2007 was approximately $4 million, or $0.40 per basic and diluted share, compared to $4.2 million or $5.27 per basic and diluted share last year.

Gross margin for the quarter was approximately 39% during the quarter compared to approximately 38% during the same period last year. The margin was impacted negatively as the result of the staffing up of our network operations center, or NOC. And we anticipate that hosting more units form our clients will benefit our gross margin. We continue to track toward the goal of an annual gross margin of approximately 40%.

Total operating costs for the first [sic] quarter were $2.4 million, an increase of $1.1 million from the second quarter of 2006 and an $854,000 decrease from the first quarter of 2007. Year-over-year increase was primarily due to issues (inaudible) staffing, investments in additional sales and marketing to support growth, and increased legal and professional fees due to becoming a public company.

Last quarter we discussed the additional expense incurred to (inaudible) our sales force and build our NOC to meet the increased demand for digital signage, investments that preceded anticipated sales. As we expected, our sales activity during the second quarter was sufficient to bring the situation back into parity.

You may have also noted in our earnings release a reconciliation between GAAP and non-GAAP operating loss. We included this to highlight how we are looking at profitability for the Company. It is similar to EBITDA, but adjusted for certain one-time items and the FAS-123 expense for stock-based compensation.

Turing to the balance sheet I'd like to highlight our cash position. At the end of June, 2007 cash and cash equivalents, in combination with marketable securities, totaled $38.9 million compared to $15.5 million at December 31, 2006. The increase was primarily due to the successful completion of our follow-on stock offering in June of 2007.

Now, I'd like to turn the call back over to Jeff for closing comments.

Thank you, John.

As I commented at the top of the call, we continue to focus on cultivating and capitalizing on a robust multi-channel sales pipeline, deploying capital strategically in day to day execution. Currently, our pipeline, which accounts for proposals made to prospective companies, includes nearly $100 million after deducting current purchase order and other agreement activity. And an opportunity pipeline which includes additional expansion opportunities in those accounts of approximately $300 million.

As we look out to the rest of the year, we expect to see acceleration of pipeline momentum and continued shortening of the sales cycle. We maintain our 2007 revenue guidance range of 18 to 21 million, even with the delay at Lucite because of our continued focus on other customer opportunities.

To reiterate, we believe that Wireless Ronin embodies several strengths to give us an edge in the market -- an unparallel technology platform that combines our proprietary wireless delivery system, centralized contact control, our ability to accommodate any network and hardware environment, the flexibility to deliver both enterprise and hosted solutions, turnkey wireless and wired delivery, a highly efficient sales model supported by a strategic network of resellers in a recently expanded direct sales force, a clean flexible balance sheet and a highly scaleable business model.

And we are particularly enthusiastic about McGill and bringing its capabilities into the Wireless Ronin fold. Beyond giving us the potential to expand RoninCast into other applications for our clients and strengthening the potential ROI of our systems, McGill will enhance the reach of RoninCast within the automotive industry.

The acquisition makes strategic sense on many fronts. We believe that the combination of RoninCast's and McGill's best practices, processes and unique applications for content design will create a digital signage platform that is truly second to none.

They also possess a unique business model centered around e-learning and e-performance which are powerful additions to our platform. The addition of McGill will significantly extend our overall pallet of marketing services for our clients. Wireless Ronin's broader sales and marketing resources will help deepen McGill's market penetration.

McGill's strong and experienced management team complements our own. And we expect this acquisition to be mildly accretive over the initial 12 months.

As we've mentioned before, the digital signage industry is fragmented and we'll continue to look for sound, highly strategic opportunities like McGill to extend our capabilities and reach within various industries.

That concludes our prepared remarks. Before we open it up for questions we'd like to extent an invitation to each of you to join us at our Open House to showcase our new headquarters facility in Minnetonka, Minnesota, just outside of Minneapolis. The event is on August 21st from 4:00 to 8:00. To add your name to the attendee list, please RSVP by sending an email to rsvp@wirelessronin.com. We're looking forward to seeing all of you there.

We now have time to take your questions and would like to open it up.

(OPERATOR INSTRUCTIONS.) Darren Aftahi with ThinkEquity.

Good morning, guys.

Hi, Darren.

A couple questions. So, if we look at the $17.1 million of contracts and '07 installations you guys mention in the press release, is just the NewSight grocery store contract embedded in that number, or does it include other NewSight projects?

Scott?

That number still has the cardiologists and the [parameds] and mall projects embedded in there because there's still agreements and still contracts and are still on schedule to be rolled out. The timing of that has been delayed only. So, they're still active agreements and/or contracts.

So then, two separate questions. Can you give us some color on what gives you confidence in other vertical markets to potentially replace the delayed NewSight revenue -- the potential delay to NewSight revenue?

And then also, on the grocery store chain, it's 75 stores, but can you give us a sense of a number of instances or screens that are actually being retrofitted plus new installations?

Yes. The grocery store network is installed in the install stores already. And then there's a retrofit. They have to turn it over to communicating with RoninCast. There's not much additional hardware in that. The hardware comes into the new installations. And it is a fairly large footprint of 15 to 20 screens per store.

And is that a wired or wireless deployment?

Both. Wireless is only in one part of the store. The rest of it will be wired.

Okay. And then one last question and I'll let somebody ask some stuff. Your revenue guidance, does that --would you be adjusting that once the McGill acquisition closes, assuming, based on the 8K that it's a diminimus amount of revenue. But, would there be any adjustments to guidance once that deal closes?

No, Darren. At this point, I don't think so. In our guidance for this year we have not included McGill. But, we'll take a look at it. That's probably more of a 2008 event.

Okay. Thanks, guys.

Thank you.

[Jeff Ausher] with JPM Asset Management.

Hey, guys. Good quarter.

Thank you.

Just a couple questions. And it's JMP Asset Management. But -- it's alphabet soup. But, with the KFC, basically at this point I think you guys -- again, I jumped on the call late -- I think you said in Kentucky. What's the actual cost to KFC for the (inaudible) and then can you refresh my memory on the running cash cost to them on a monthly or--.

Yes. We're not positioned I think competitively where I want to disclose that. I can tell you that typically in this restaurant it would include three to four screens indoors and potentially outdoors. But, as far as cost of the hardware and the software, for obvious reasons I don't really want to disclose that.

All right. Let me ask it another way. How are they looking at the ROI on those deployments? I know that you guys pointed out between company owned and franchise locations it's a green field opportunity. But, how is this selling process occurring to them as far as an ROI on whatever those costs may be?

(Inaudible) answer. I'll turn that over to Scott, too, since he's actually meeting with them today.

Yes. I'm actually in route as we speak.

The ROI is pretty simple and it falls in a couple buckets. There is a hard cost of putting in a traditional static mini board, and it's quite expensive. And those mini boards will get turned over ever two, three or four years, depending on the change in product line. There's an extremely high cost in upgrading the menu board.

Again, the big advantage on digital signage for them is there's a large cost to update the mini board. In addition, the indoor and the outdoor mini board represent close to 100% of their marketing opportunities in that their cost to update those with fresh material is very expensive if you're doing it in a static component, compared to being able to send it out over a network and update it.

The ROI is fairly easy to manage. They have a large reoccurring cost of keeping those mini boards updated (inaudible) and then they have another cost of putting a new one in. So, the ROI is pretty simple.

And I can't say anything else with it -- about the test, but the response by the consumer has been very good. And the mini board has been very dynamic and the -- we're very excited. Because ROI is pretty easy to measure when you think about the total cost of in-store POP and the total cost of that mini board, when it's new, when it's retrofitted, when it's updated and then when it's replaced. It's a pretty easy ROI to measure.

I think also the ability to integrate their POS data so that they're updating those price points as they occur. Right now they can't do that. It's not possible without using a static mini board without a significant cost. So, that's a relatively easy application if you look at the impact of digital signage versus static signage and looking at the ROI.

Okay. I appreciate that, guys. What -- did you break out what Reuters and NewSight were as a percent of the $3.1 million?

That's really a question I can turn over to John.

I'm trying to think of what--.

I mean, I'm sure it's more than 10%. It'll be disclosed in the Q.

(Inaudible.) What you'll see in the revenue section of the Q when we publish the Q, there's one large customer in there and you can obviously put those two together (inaudible). That would be NewSight. But other than that, Reuters is not (inaudible).

Okay. And do you know offhand what NewSight was in the quarter?

(Inaudible), it was over $2 million.

Okay. So, it was roughly 67% of revenue?

Yes.

Okay. And then as far as McGill, I think you guys said you addressed that, Jeff, in '08, the potential revenue contribution. But, can you give us what their run rate was at the time of the acquisition?

No, we've not disclosed that yet so I really can't. We'll take a look at what we want to disclose on that after the acquisition is completed.

No problem.

But at this point, we've just got into an agreement for the acquisition so I really can't go beyond that.

Okay. But, your 18 to 21 does not include any McGill.

It does not include any McGill.

Great. Great. And then last question, just on a fully diluted share base, in absolute terms, net of treasury, what would that be? Launch and options included.

Again, we have comments here about (inaudible) [14.260 million] shares and then in warrants and options we have about 3.5 million.

Great. Okay, guys. Look forward to hearing an update at the end of Q3.

Very good. Thank you very much.

Thanks.

[Arthur Friedman] of [Friedman Asset Management].

Yes. Hi, guys. Nice quarter. My question has to do with identifying new business opportunities and with the signs themselves. I don't know if you're aware, but Sonic Corporation, which is the nation's largest drive-in restaurant chain, and they have about 3,200 locations in the U.S. and Mexico. They're having problems with their signs, with lighting malfunctions and electrical shortages, and also related to (inaudible) situations.

And I have a two-part question. One is, have you guys had any problems with your signs in terms of lighting malfunctions and electrical shortages? And then second, based on what you talked about earlier, have you looked at this an opportunity to talk to Sonic since it's related, for example -- you mentioned you had similar field, areas, in terms of a business opportunity, that you could come in and help them out?

Well, let me take that question. First of all, as it relates to -- we have not had any issues with any of our deployments to date that we've not been able to address through our customer service.

In the case of our hardware, we use Richardson. Richardson in the case of QSR has developed the hardware requirements that we need indoor and outdoor to address those very issues. We know that -- and we've always said from the point we put this company together that we're going to have to provide a stable visual sign of the approximately that can be relied upon. And we've looked at building -- and not only in the hardware side of it -- a robust hardware application though we've focused on software requirements of it, should a screen or a viewer not play (inaudible) go up in redundancy and the ability to always provide a communications source that our digital clients are looking for. So, we've not run into it.

We do think QSR -- and I said that earlier -- is a great opportunity. We've talked about that. I know that one of the analysts is really focused on it. Beside Sonic and -- there are just multiple QSR opportunities in this country. And it's an area that's really not been addressed through digital signage and we think that it is a great opportunity for companies like ours to be able to take advantage of it.

But, when we approach -- whether it be QSR or any other industry -- we approach it in the context of a stable, robust hardware and software application, that not only meets their requirements but, over time, will hopefully exceed their expectations.

Thank you very much.

Thank you.

[Kevin Reedy] with Morgan Joseph.

Good morning, Gents. And let me offer my congrats on a nice job in the quarter.

Thank you very much.

Jeff, I was wondering if you wouldn't mind giving me sort of a top-down market view on outlook for growth and the competitive environment as you've seen it sort of become a little bit -- I guess the overall digital signage market become more attractive over the past six months?

Sure. The data points that are out there -- I saw a publication yesterday that predicted, again -- quote-unquote, digital signage to go to $14.6 billion by the year 2011.

I think that what's happening today is digital signage and the opportunities that we've been addressing for the last four years in particular are starting to be addressed more importantly by our clients. The RFPs that our [Qs] are looking at today are RFPs that have Qs designed around very specific digital signage applications that would indicate that they've done their research, these clients and these potential customers to understand the impact of what that is.

The upside to that is, we think, that that opportunity in digital signage that we've talked about for four years is now starting to swing in that hockey stick approach. If you -- it's never been, I think, a matter of would digital signage be accepted. It was a matter of when would it really be evolving as we and every other digital signage company, competitors out there, has been focused on.

We know that over the last couple years there's been an influx and a rapid deployment by the (inaudible) manufacturers to complement our opportunities with the hardware application that makes sense. They've built up large inventories in anticipation of it, just like our anticipation that it would happen. Good news is there's a better technology out there to support it. It's at a lesser price than it was a couple years ago.

So, to make a long story short, you've got a more educated customer. You've got a market that I think is expanding every day. When you look beyond the initial opportunity that we saw of digital replacing static POP, it's in a variety of sectors today. I think it's got a huge opportunity for all of us in this business to take advantage of the areas where we think we excel.

On the competitive front, it's still fragmented. It's still, I think, controlled by a handful of us that really have demonstrated our ability over the time that the digital signage has been evolving. There's lots of new players that have come in and out of the market. But, I think those of us that are focused on the stability of our software, a software that meets and exceeds expectations, and a solution that addresses -- there's some pretty involved RFPs in our queues -- there's opportunity here for all of us to be able to grow significantly in the future.

Can you give me a little more color on the deal that you struck with PartnerTech and how there might be or might -- or how there is an overlap with Richardson?

Okay. We haven't struck a deal with PartnerTech, as I said. We went over there. They've talked to us here. We believe that there's an opportunity if we wanted to get into the Asian markets, and we'll pursue that opportunity until we don't realize that benefit.

But -- and there really is no overlap with Richardson. In the case of PartnerTech when we talk about hardware, their main focus is in POS. They really are an opportunity provider for Asian opportunities in other markets that they're involved with. But, they don't really overlap with Richardson and the hardware that they deploy.

Okay.

And we have time for just one more question after this, okay?

Okay.

May I continue, or--?

Yes. And then one more after this, Amanda.

Yes, okay. Then the question really -- my last question boils down to guidance and your outlook for '08. You're talking 18 to 21 for the year. Can you give me some insight on how that shakes out between the third and fourth quarter? And then the correlating expenses related to that? And given this NewSight push, what's that do to your '08 sort of view?

Well, two things. We've never given forward guidance, so--. And I think to be fair to all other investors, we're not going to start that right now until we better understand that ourselves.

What we are comfortable with is that we have the (inaudible) agreements in place. Even with the NewSight -- and we have proposals in place. that, they give us comfort today that we can still provide that guidance whereas, how it flows in, whether it be in the third or the fourth quarter is not something that I want to disclose. But, I will stress that we've built an infrastructure obviously to grow this Company incrementally. And whether it's all in one quarter or it spreads out over two quarters, we have the ability from a management and an infrastructure perspective to be able to accommodate that. We will update '08 in November. And as we know more of those contracts are materialized, but that's the best I can say for the balance of this year.

Great. Well, thanks very much, gentlemen, for taking the questions. And congrats again.

Thank you very much. Appreciate that.

Your last question comes from Jim Goss with Barrington Research.

Thanks for squeezing me in.

Hi, Jim.

Hi. Let's see. Well, one thing I was wondering about was when do you -- you commented that you were having discussions at a corporate level. It seemed your initial discussions were at a franchisee level, so just wondering how that evolved.

And with the Yum Brands, you're starting with KFC. I think they have a lot of multi-brand units, which seems like they might lend themselves especially well to digital signage. So, wondered if you might talk about that. And then finally, with NewSight, the change in their priorities, does that relate to a capacity issue on their side or how exactly did that evolve, that they cannot do both?

Well, first of all, when we get into NewSight, I (inaudible) because that's something (inaudible). I'm not particularly in tune to why they did that. As I said, they just reprioritized. It's not abnormal to delay installations. We've seen that with other companies other than NewSight. So, I don't think it's extraordinarily unusual (inaudible) brought in some new opportunities. And beyond that, there's not much I can say about it.

I think in the case of Wendy's, we're excited to now get to the corporate level. We said that the last time, that we conducted the franchise test and that opened up some opportunities for us to work with Wendy's on the corporate side.

And obviously, our focus right now is with KFC. But, we're looking to go beyond the KFC opportunity, but I don't think that dilutes that opportunity. If you look at what we think in the context of KFC and the QSR, Yum Brand, they own a lot of restaurants. And we hope that we're successful and, if we are successful with KFC, that they'll give us the opportunity to look at those other restaurants as well.

Okay. Thank you.

Thank you.

Okay, Amanda. We'll wrap up the call now. I'd like to thank everyone for his or her participation on today's call. Please remember that today's call has been recorded and will be archived in the Investor section of our website at www.wirelessronin.com. Also, this call will be available for replay for a period of two weeks. Again, the dial-in information from domestic and international locations can be found on our website. Thank you and goodbye.

This concludes today's Wireless Ronin 2007 second quarter earnings conference call. You may now disconnect.