Live Ventures Inc (LIVE) 2008 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Q4 and full year 2008 LiveDeal, Inc. conference call. My name is Demali and I will be your operator for today. At this time all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of today's conference. (Operator instructions). As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today's conference, Mr. John Evans with LiveDeal, Incorporated. Please proceed.

Good afternoon, I'm John Evans. Thanks for your interest in LiveDeal. With me today are the Chief Executive Officer of LiveDeal, Mr. Michael Edelhart; Gary Perschbacher, the Chief Financial Officer; [Rajeev Seshadri], Special Assistant to the CEO for Finance; and also available for questions is John Raven, who is the President of LiveDeal.

Some of the questions of the discussion today will involve forward-looking statements and I will read to you the following warnings about reliance on forward-looking statements. During the course of this presentation we may discuss LiveDeal's business outlook which contains forward-looking statements. These particular forward-looking statements and all other statements that may be made during this presentation that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Please refer to our periodic filings on Forms 10-K and 10-Q made with the SEC for more information on the risk factors that could cause actual results to differ.

Important factors that could cause actual results to differ materially from the Company's expectations include but are not limited to those factors that are disclosed under the heading risk factors and elsewhere in the Company's documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Forward-looking statements made during today's call are only made as of the date of this conference call, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events. This conference is being webcast and will be available on our website for replay following the call.

Now let me turn it over to Mike Edelhart.

Thanks, John, and thanks to everyone for taking time out to listen to our conference call today. Since the last conference call I have moved from being the interim CEO to permanent CEO here at LiveDeal, and I'm glad to be here today to talk about the fourth quarter and full year fiscal 2008 and especially excited to discuss LiveDeal's ongoing transition toward new opportunities that I and the other board members and the Company's management team see as substantial.

Traditionally, LiveDeal has been a company with a unique set of assets directed at the local Internet space. Basically, we've been the one company to combine classifieds which come from our LiveDeal side, and Internet business directory would come from the YP.com side of our business. We've used this combination to develop a significant customer and revenue base which we retain today and which produced most of the revenue in fiscal 2008.

But now, we are using these assets and our core competency [is] selling to and serving small businesses in a new way to reach out effectively to small businesses and to provide them with a suite of the Web-based customer acquisition services they desperately need. We are experts in search and directories, classifieds, website creation, website marketing, optimization and in the ever-changing array of new Internet solutions, and we understand small businesses and we understand their need to keep costs down. And we know how to deliver real money-in-the-bank results for them.

So today, LiveDeal's focus is on being the best possible partner to small and medium-sized businesses to help them efficiently target online prospects, to generate quality leads and to continually optimize for them a process to deliver high-value marketing solutions. We feel that this approach will leverage our existing assets in the most value-creating possible way and will provide us with paths of growth and profit stability and value creation on behalf of the investors.

Business results for the quarter and for the full fiscal year 2008 -- let's review them briefly. Our net revenue for the fourth quarter of fiscal 2008 was $5.7 million. This was essentially flat with the sequential third quarter of 2008, but it was down 19% as compared to the same quarter in 2007, in which we collected $7.1 million. And, we are reporting a net loss for the quarter of $277,000, due primarily to ongoing instability in our LEC channels that we talked about last time, as well.

We are not surprised to see this revenue number because we have not been aggressively adding new accounts to the traditional LEC exchange channel as we focus internally on growing our new business. That transition toward suite selling and direct selling and control of customers continued to show progress during Q4 2008. Our monthly revenue from our new lines of businesses increased each month during the quarter and represented just over 6.4% of total revenue for Q4 2008 as compared to around 2.6% of revenue for the fiscal year. It is nearly double the revenue from this new channel in Q3. And, since the close of the fiscal year, our Las Vegas premium sales segment has experienced its largest sales month ever with a little over $1 million in new customer contracts in October of 2008. This channel has grown from a monthly run rate of just under $100,000 per month in contracts sold at the very beginning of calendar 2008 and we are looking at ending the calendar year of 2008 with just about seven times that number in average monthly contract sales, a gross monthly growth rate of about 47% month over month. This line of business growing well above plan with all metrics increasing at quite substantial rates.

And in our new line of business, the average customer spend stands right now at a little more than $3500 annually compared with just over $350 annually from our traditional business, and that's rising. And, in addition, the cash collections from our premium sales channel are far more robust than in the LEC channel. We average around 18% of the first-year contract value collected as cash on the date of sale where, by comparison, LEC collections can take weeks, if not months, and have significant step-downs built into them.

I'm going to talk more about our strategy shortly, but now I would like to introduce Rajeev Seshadri. Rajeev joined LiveDeal in November as a special assistant to me for finance. Raj is going to give further detail on the operating results for the quarter. Here's a bit about Rajeev's background. He was born and raised in India, received his Bachelor's degree in engineering from IIT in India in 1972, and then from the University of Michigan, where he received an MBA in 1983 in finance and strategic marketing. He began his career as a research analyst at securities brokerage firms, and he's been a CFO and CEO of a number of companies in the Internet retail and contracting areas. He's based out here in California, brings a wealth of experience to LiveDeal that will help us become more precise and strategic in our financial planning and reporting. Rajeev?

Thank you, Mike. Net revenues in fiscal 2008 were $25.3 million compared to $26.3 million in fiscal 2007. LiveDeal's change in net revenues for fiscal 2008 was primarily due to a shift in the Company's focus away from adding new customers in its basic directory business towards focusing development on producing and selling a new suite of Internet audience acquisition services led by our live sites, LiveAdvisor and LiveClicks products.

While these sales represented only 3% of total revenue for fiscal 2008, this new channel's gross sales grew 47% per month during the 2008 fiscal year and over 700% for the year, generating more than 1000 new customer relationships with an average contract value of more than eight times that of the basic directory business. Currently, the Company has more than $2.6 million in deferred revenue in this segment, and that should be realized over the course of the contract term in fiscal 2009.

Cost of services -- this increased in fiscal 2008 as compared to fiscal 2007, due to an increase in LEC billings, which have had a higher cost than other billing channels.

Gross profit for fiscal 2008 was $20.9 million, which represents a decline from LiveDeal's $22.1 million gross profit in fiscal 2007. This decrease is attributable to lower revenues and slightly higher cost of services. Gross margin percentages were 83% in fiscal 2008 and 84% in fiscal 2007, respectively.

G&A expenses totaled $15.6 million in fiscal 2008 as compared with $12.5 million in fiscal 2007. The increase was primarily due to the following -- one, $2.3 million of increased compensation costs, including $900,000 of charges associated with the termination of our former CEO and $800,000 of increased compensation attributable to the LiveDeal acquisition occurring in mid fiscal 2007; two, $500,000 of increased depreciation and amortization expense stemming from the LiveDeal acquisition which added $2.2 million of amortizable long-lived and intangible assets and additional capitalized costs for enhancements to our website and online customer service applications; three, $400,000 of other expenses attributable to the LiveDeal acquisition occurring in mid fiscal 2007.

Sales and marketing expenses increased in fiscal 2008 compared to fiscal 2007 due to an increase of approximately $1.6 million of increased online marketing costs and $1.1 million associated with the amortization of customer acquisition cost, partially offset by a $1 million reduction in direct response mailing cost.

GAAP operating income decreased to a loss of $1.9 million in fiscal 2008 from a profit of $3.3 million in fiscal 2007, primarily driven by the revenue drop and increased operating expenses detailed earlier.

Income tax benefit for fiscal 2008 was $200,000 as compared to an income tax provision of $1.9 million in fiscal 2007. This decrease resulted primarily from LiveDeal's changes in pre-tax income and the write-off of certain deferred tax assets resulting from book tax differences in the recognition of restricted stock awards.

LiveDeal had $4.6 million of cash on hand and $11.3 million of total working capital as of September 30, 2008. As of the date of the press release, the Company has a total of $7.67 million in cash available. The Company still has no long-term debt, and shareholder equity stood at $36.4 million at the end of fiscal 2008.

Now I would like to turn to call back to Mike Edelhart.

Thanks, Raj. So we look at the overall patterns of the Company, LiveDeal's pattern in net revenue for fiscal 2008 was primarily due to a shift in the Company's focus away from adding new customers in its basic directory business toward focusing on the development of and production in a new suite of Internet audience acquisition services. These sales represented just 2.6% of total revenue for the fiscal year, but this new channel's gross sales grew heavily month per month, over 700% over the course of the year, and an average contract value more than eight times that of the basic directory business.

In addition, they produce significant deferred revenue. We have about $2.6 million in deferred revenue from this segment that should be realized over the course of the contract terms in 2009. So we feel that we're making excellent progress at refocusing LiveDeal's business toward these considerable new opportunities that we see in the local Internet advertising market.

And even with the more challenging economic environment expected in 2009, we believe that the small and medium-sized businesses that we are targeting will continue to turn to the Internet to find the customers they need. We believe our operating cash flow, growing product and partnership pipeline and a strong balance sheet will enable us to grow our business over the course of the next year even in the difficult economic environment we face.

Our 2009 plan is to achieve profitability even as we make the changes necessary to allow us to capture our new significant business opportunities and to continue to create a strong industry position in the local Internet advertising market. We believe our new business approach should allow us to capture a larger part of the local Internet business opportunity as small and medium businesses continue to migrate from traditional off-line directory advertising to the more targeted ROI-driven local Internet advertising options. And we believe that our new suite of products should continue to show promise and top- and bottom-line strength throughout 2009.

Now looking at it from the 20,000-foot level, the market opportunity in the local space is clear and sizable. As we've said on previous calls, typically consumers spend more than 80% of their income within 50 miles of home, and in the current environment that may even increase. And, research shows a growing number of all searches on the Internet are focused on looking for local companies where real business can be done. These ads dollars are increasingly shifting from less targeted advertising opportunities and traditional local media for a more performance-based, time-based, geography-based advertising that matches the [poise to] transact local customer with businesses in their community that are delivered over the Internet.

In terms of scale for local Internet online marketplace, about $12.6 billion in 2008 according to a recent report by [Burrell] Associates, and the local market has grown at a compound rate of about 48.4% between 2005 and 2008. While that growth is expected to slow as the market matures, compound growth of 15% will bring the market to more than $22 billion by 2012. Other forms of Internet advertising and commerce are projected as flat or falling over this same period, and that's one reason why I like to call local marketing one of the sweet spots on the Internet.

This is true not only in terms of the quantity of activity, but also quality. Visitors to local websites share the qualities that small businesses require most. They have trust, and they take action. An August 2008 study by the Online Publishers Association, for example, found that, one, visitors to local media sites are more likely than visitors to other sites to take action after seeing local ads from making purchases to visiting sites and even to visiting stores off-line.

Two, they found that local media sites attract valuable audiences who spend more money online than visitors to other kinds of local sites. Three, that local sites lead all others in advertising perceived trust. And then finally, that local content sites attract a higher number of influencers, the first person others come to for local recommendations. And in that local space, the traditional media, such as newspapers, radio, television have local advertising models based on the old, less targeted approach driven by getting to the greatest number of people in a geographic area with the same message. The emerging pure play Internet advertising model allows for a much more pinpoint, performance-based advertising approach that targets potential customers in the geographies served by small businesses at exactly the point where the customer is ready to buy. We believe that this newfound ability at small businesses to target the customers they are looking for and to obtain more ROI-driven results for their advertising dollar will continue to help drive local ad dollars over to the Internet and away from traditional media, and our strategy is aimed at taking advantage of that shift.

Now, one of the limitations in the new market model, however, is efficient access for these small businesses to the services that are becoming available. The new Internet capabilities are difficult and time-consuming for small-business people to master. And the folks running small businesses, particularly very small businesses, don't have the time, the resources or the background to maximize the benefit that the Internet can bring to them. They require a trusted intermediary to help them derive these Internet benefits they so deeply desire.

And that is why we feel LiveDeal's current strategy moves us toward a powerful and unique position in the local marketplace. We are a pure play local Internet partner for small businesses with a focus on leveraged sales, where we have years of experience and technology-driven fulfillment services where we are focusing our team building and development right now. As we grow our business in this new direction, we are keeping a very close eye on both business trends and costs, as this is very much the prudent thing to do, given our uncertain economic times. But we remain bullish on the growth we will get from our new positioning and products.

As I said on our last conference call, the Company has a three-pronged approach to making the transition to our new business posture. First, manage our traditional LEC listing business for maximum cash return. We continue to see the LEC business as a relatively stable source for revenue and cash with many customers but with limited upside that we need to manage purely for the greatest near-term benefit. As I said before, our small and medium business direct paid Internet services business has grown substantially on a sequential basis, and even with the current economic slowdown we hope to grow this business over the coming fiscal year. That growth will come from enhanced lead acquisition of delivery services, from a broader range of partnerships for delivering both leads and services to small businesses, by increasing the number of products that we make available to help our customers and by judicious expansion of our sales team over time.

We have planned to carefully increase the range of products associated with our premium sales business. Today our LiveClicks product allows us to help small and medium businesses optimize the search performance of any asset they have on the Internet to get the greatest number of customers aware of them, responding to them and available to them at the point of commerce. We continue to expand the partners that we use to fulfill in this search engine marketing business for our customers. In addition to our Google AdWords reseller status, which we obtained earlier during the fiscal year, in the fourth quarter we added Miva and Looksmart as fulfillment partners, and we will continue to develop more and more of these partnerships in the months ahead. It's important for us to deliver cost-efficient, ROI-driven results for our customers that will make us a must-have partner for them in the local space.

Just to review, our current premium sales services suite includes website acquisition, where we obtain website address names on behalf of our small-business clients; website development and deployment services, where we create, house and manage websites on behalf of our small-business clients; website traffic and audience development, where we provide sophisticated search engine marketing techniques access to our own websites, partner websites and other websites as fulfillment locations and other techniques to generate traffic for our small-business customers; our website analytic and performance reports for our customers to generate information for them about their activities on the Web and lead activities of their businesses; directory services, one of our traditional businesses, that continues to have value in providing both basic and enhanced locations where our customers can place information about their businesses for prospective clients; and, finally, classified services, through which we provide classified and bulk inventory commerce capabilities for our small-business clients.

In addition to increasing our product line and our internal capabilities, a third aspect of our strategy is the increase of our footprint across the Internet. We do this first through our own sites, our classified and our directory sites, which have gone through significant upgrades in their look, feel and functionality during the fourth quarter. The new features and functionality on the sites have helped us improve their usability, which has contributed to increases in traffic during the fourth quarter. In fact, since the summer, we have seen month-over-month improvements in traffic on our sites. And the recent transitioning of the directory has had important positive impacts that we think you'll see continue in the months ahead.

In fact, I'm sure you've already seen some of the early impact of these changes in Q4 2008 and since then, they have continued apace. Over the last couple of months we've brought on board some key hires in product, marketing and search. Our new VP of Product Management, Yishay Yovel; Yishay comes to us with a great deal of experience. He was the Vice President of Product Marketing at Olive Software and at BackWeb Technologies; Illuminator, which is now part of EMC; and New Dimensions, which is now part of BMC. Our new Vice President of Marketing is Pam Sziebert. She has extensive background which includes leading the marketing effort at Partner Weekly and at Cbeyond and as being one of the senior marketers at Fujitsu. At Partner Weekly, Pam worked in a small-business-oriented Internet environment, gave her direct experience that applies to our emerging businesses.

And a key member of Pam's team, as a side note, we have added [Ruben Atchison] as our director of search engine marketing. For the past two years Ruben has been the senior search engine marketing manager for MySpace, FOX Interactive, American Idol and the other Internet properties owned by Rupert Murdoch. And prior to that, he handled search marketing for hundreds of small-business customers at Precision Play Media.

Since efficiency at search marketing is a key element of our strategy, Ruben's role on the team will be critical, and he is a superbly well-qualified addition. We believe now that we have the core members of our team with the relevant experience in sales, product and marketing to make the substantial improvements that we need over the next fiscal year.

One overt sign of our transition that you can see today is our website. If you go to www.LiveDeal.com right now, it's completely different than it was just a few weeks ago. Today, our website talks about the benefits we bring to small businesses through our direct sold suite of products. Our pre-existing classified and directory sites are now coordinated subsidiary elements of this site architecture. Because of the website shift, we were able to monetize some of our old URLs just after the close of the fiscal year to provide additional resources to support our business transition. Most prominently, we announced a few weeks back that we sold our YP.com URL to YellowPages.com for $3.85 million. This asset sale derives directly from our strategy and reflects our desire to focus our directory business away from the idea of a stand-alone Yellow Pages and more in the direction of one element in a network of sites that are tied together by common content and context.

We believe, further, that this approach represents the best possible way to deliver customer acquisition services for small and medium businesses both now and in the future.

As we transition the Company and our Web assets, we also intend to much more aggressively syndicate our classifieds out to other sites so that we can begin to use their real estate as well in the services of fulfilling our obligations to our small-business customers. And, we see opportunities to use our technological skills to create an instant, hyper-vertical Internet real estate network in key areas that we intend to bring forward to help support our sales efforts. As an example of our sales activity, we are going to be focusing on the Internet audience acquisition for limo drivers in the Midwest. We can create specialized real estate available to search engines and available to our customers who are looking for limousine services in those areas as a support for our efforts.

With additional capital available and with our firm belief in our strategy, we thought it prudent to complete our pre-existing share buyback program and then to start a new one. So, as you may have seen in our filings, in November we finished our previously announced share buyback pursuant to our Board's May 25, 2007 authorization to repurchase $1 million in shares. And the Board extended that buyback to an additional $500,000. Under the Board-approved repurchase program, our share repurchases may be made from time to time in the open market, or through privately negotiated transactions, depending on market conditions, share price, trading volume and other factors. And such purchases, if any, would be made in accordance with the applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.

But, the primary message from us about share buybacks is we, as managers and as a Board, have faith in this strategy and in the direction we are taking and in the value inherent in our shares and express that through our repurchases.

That's the sum up for Q4 and the fiscal year. Now why don't I open it up for questions, John?

Yes; you can go ahead. The conference moderator will give you the instructions for asking questions.

(Operator instructions) Colin Gillis, TheStreet.

Mike, can you talk a little bit about -- is the downturn causing local advertisers to review their existing spend and be more open to online advertising? And, also, how does your strategy differ from a reach local?

Okay, two great questions. Let me take them separately, the first one first. It's fair to say that we are extremely focused on the trends that we can see from our business and from the market around us related to the economic downturn. What we are seeing so far, and I think it's fair to say it's preliminary because the situation remains rather fluid, is that the areas in traditional media -- you read lots of stories about problems in newspapers and in other traditional local media -- are suffering much more intensely than the areas we serve. We have not seen any significant slowdown, any significant pattern negative related to the kind of business that we are going.

And, our sense taken from that is in fact what you said, that these small businesses are practical in nature, but in a market like this they become exceedingly practical. And they view Internet advertising as ROI-based, efficient, low-cost, something that they need that represents a better opportunity for their business than the traditional approach. So they are becoming more open to it, they are going into it more deeply. We are finding that our initial contacts with companies are more positive than they were in the past. The questions are, how do I do this, not if I should do this. And, we would expect those trends to continue.

This genuinely represents a more cost-efficient way for small businesses to acquire customers and working with us to acquire customers without taking inordinate amounts of time away from actually running their own businesses or without having to take on substantial overhead to achieve these benefits.

In terms of how we are different than ReachLocal, I'll be the first one to say I'm probably not the deepest expert on ReachLocal's business because they are private, et cetera. But from the sense we have, there are a couple of things we do that are very different. One is, we are quite dedicated to leverage on the front end. That is, in the acquisition of leads and in selling, and in leverage on the back end where we see our approaches as different than theirs.

So we have a pure tele-sales-oriented approach, and we intend to remain dedicated to that. we believe that the lowest-cost, most highly leveraged approach to acquiring customers, bringing them into the system, is critical. ReachLocal has a much more traditional field sales force, so it's more like the old Yellow Pages sales force now applied to the Internet. Ours is not.

And the second is that we're big believers in leverage in the Internet sense. So, there have been portals -- Yellow Pages and those kinds of things, for example, is a portal. And in the case of ReachLocal, there is essentially a massive proxy network that has all of the Web sites from all of the customers that they do business with running through, directly through their system. We are believers in networks of sites in leveraging strengths of the others. We think that produces the highest trust. We think it produces the highest efficiency, and it keeps our costs down. So right now we are comfortable at levels of customer activity that we think will be uncomfortable for ReachLocal, for example, and we think we have opportunities for growth that lie outside the ones that are appropriate for their structure.

Nice job consolidating the brands in the quarter and boosting up the balance sheet.

Thank you.

Jon Hickman, MDB Capital.

Do you care to give any guidance for, like, the coming whatever period of time?

I think, you know, John, we haven't given guidance. We haven't given guidance in the past, and I think this is not the time to start. I'll turn it over to Raj. Maybe, Raj, you can give some characterizations for some of the trends you see. I'm not saying we'll never give guidance, but I think this is not the time to get specific.

Jon, I would echo Mike's comments, but I would just add the thought that our trends for our tele-sold operations that Mike described as our new strategy, they continue pretty strong and we would see pretty significant growth. They were about 6% of our overall sales as we ended the last year, and we expect that to be a significant, I would say significantly larger portion a year from today.

The directory services business, which includes our LEC billing, that continues to decline and it is very difficult to predict what it would be a year from now. There is volatility. It has been relatively stable, but it has a downward move. So you would see a product shift, but probably sales at about the same, flat or maybe slightly below the previous fiscal year. I think that's about as far as I can go at this point.

So you're telling me that all the growth that's coming from Las Vegas is going to get chewed up by the decline in the LEC billing?

At this point it looks like that. But again, I should point out --

But you are growing --

(multiple speakers) -- let me complete this thought a little bit. Our premium sales is -- we feel we are barely scratching the surface there and it could be very different from what it looks like now. So again, at this point, it's very difficult to say anything much more than that.

Let me put in one comment on that. We've talked about this a little bit in the past. We are specifically making a prediction of growth or no growth in terms of top line for the year. We do, however, feel strongly that our overall margin picture and the strength and predictability of our bottom line behavior will grow going forward, and it will grow in exactly the degree to which we focus on and successfully transition to the new business. The new business is better cash characteristics. It has greater customer control, it has greater efficiency, it has greater predictability, all characteristics that we've found are hard to achieve in the traditional LEC business.

So even if the pattern were to be relatively a flat line in terms of revenue, we believe the Company as a whole would be improved in the transition.

Okay, so looking at your -- the balance sheet, didn't you say that you had like $2 million of unrecognized revenue from your Las Vegas operations?

About $2.7 million in deferred revenue --

Yes.

-- at the end of the fiscal year.

And you can collect that over the next 12-month period; right?

That's correct. And that -- the way that Raj and Gary might want to talk to this directly -- the way we are recognizing revenue from our direct sold business right now is on a classic subscription basis. So we are selling a 12-month contract. In some cases, it may even be multi-year contracts, but we are then recognizing the revenue 1/12th per month over the course of that contract.

So that deferred revenues will all be recognized over the course of the next few months?

Exactly. And, every month that we make sales, we create additional cash, so we get about 18% of the contract value, a little over that.

So aren't you being like extremely conservative with those last comments you made?

We are being conservative with these comments. And I'll speak for myself, and then maybe Raj and Gary can speak for themselves. We see, on the one hand, a traditional business that is volatile, that has been predictably unpredictable for some time. And I want to be sure, and I believe Raj and our other managers want to be sure, that we don't over promise on behalf of a business that has those characteristics. And, on the other side, we have a developing business where every single marker in that business is positive beyond our expectations and has been at every point since at least I got here. But in a difficult economic period, we, too, don't want to simply straight-line extrapolate all good things and believe they are true. We want to be conservative and base our decisions on conservative expectations, and then do everything we can to beat them. Raj?

Yes. I think, Mike, you pretty much said that. I echo what you say.

I have a financial question. Could you tell me what the stock-based compensation expense was for the quarter, and for the whole year?

Is this Jon here?

Yes.

Jon, give me a call off-line, and we'll go over that.

That was Gary?

That was Gary.

Better yet, send me an e-mail and I'll respond to you.

Okay, I guess that's it for me; thanks.

Obviously, Jon and anyone else on the call, I'm available by e-mail and by my cell phone, which I think pretty much everybody who is on this call has, for any follow-ups or specific questions others have. We are going to keep questioning here. But if there's anything you didn't get, all the information you feel you need on this call, please follow up.

I would now like to turn the call over to John Evans for closing remarks. Please proceed.

Actually, Mike, would you like to make the final comments?

Well, I think the comment from us and management is that we are all extremely excited about the opportunities in front of us. We've been able to attract terrific talent to the Company. These talented people are glad to be here and digging in and beginning to have positive impacts on the Company. The new web site is an example of that, and it's the first of what will be many new activities you will be seeing from the Company. We are looking forward to the new fiscal year, and we believe that we are onto something here, that we have an approach that will work and a market that is large, growing and as yet undominated. And we believe that it lies with us to execute against our plan and to demonstrate to the market that the approach that we see has the value that we perceive in it.

Any other questions? Just making sure. If not, John, do you want to do the wrap?

Yes. Thank you very much, everybody, for listening to our call. It's available on our website as a replay, and transcripts will be available. So thank you very much, and we look forward to speaking with you soon. Thank you.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.