Streamline Health Solutions Inc (STRM) 2005 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the third-quarter financial review. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (OPERATOR INSTRUCTIONS). This conference call is being recorded. I would now like to turn the conference over to your host, Mr. Paul Bridge, Chief Financial Officer. Please begin, sir.

Good morning, everyone. I am Paul Bridge, the Chief Financial Officer of LanVision Systems Inc.; thank you for joining us. With me today to discuss the quarterly operating results are Brian Patsy, President and Chief Executive Officer, and Bill Geers, our Chief Operating Officer. Brian, Bill and I will be available to answer questions during the question-and-answer session. LanVision has arranged for the webcast of this conference call to be recorded and will be available at our website listed in the quarterly press release for the next 30 days.

Before I begin our discussions I would like to read the Safe Harbor statement. Statements made by LanVision that are not historical facts are forward-looking statements that are subject to risks and uncertainties. LanVision's future financial performance could differ materially from expectations of management and of results reported now or in the past.

Factors that could cause LanVision's financial performance to so differ include but are not limited to timing of the signing of expected contracts during any particular quarter; the impact of comparative products and pricing' product development; reliance on strategic alliances; availability of products procured from third-party vendors; the healthcare regulatory environment; fluctuations in operating results and other risks detailed from time to time in LanVision's filings with the U.S. Securities and Exchange Commission.

Yesterday morning LanVision released the third-quarter financial results. I would like to highlight the more significant aspects of our quarter and year-to-date. Revenues increased 25% to 3.2 million for the quarter and 28% to 9.9 million year-to-date. Of particular note, our system sales for the quarter and year-to-date increased significantly as we added new clients and expanded our presence in our existing clients.

Our services, maintenance and support and application hosting services revenues continue to grow albeit at a more moderate rate. The gross margin of our system sales increased significantly as the mix of our software versus hardware and third-party software components increased significantly in the current year. The operating margins on our services, maintenance and support and the application hosting services continue to remain strong in the 60% plus or minus range.

Our selling, general and administrative and research and development expenses have increased because of the planned reinvestment of our current year operating margins back into the sales and development staff to expand our direct sales capabilities and development new products in order to grow our revenues in 2005 and beyond.

The operating loss year-to-date is in line with our plans and slightly lower than last year because of our reinvestment in our infrastructure as noted. Our year-to-date interest expense decreased significantly with the retirement of the very high interest rate debt in July of last year. Our current backlog stands at approximately 3.6 million with 2.2 million from our existing customers and 1.4 million from our resellers.

In addition, we anticipate application hosting revenues for the rest of the current full year to be approximately $775,000. Please note that our backlog does not include recurring maintenance revenues which should exceed $5 million this year. We continue to monitor our expenses, cash balances and receivables carefully to ensure that they are on plan vis-a-vis our revenues.

Now I would like to turn the call over to Brian Patsy who will discuss in greater detail some of the significant factors that affected the quarter and the prospects for the remainder of the year.

Thank you, Paul, and good morning, everybody. Today I will comment on our Q3 financial results and then discuss milestones achieved during our third quarter, our sales and marketing activities including our pipeline of qualified sales leads, an update on our business development activities, a preliminary overview of our focus and plans for growth next year and finally guidance for the remainder of our fiscal year. After my comments Bill Geers, our Chief Operating Officer, will provide an update on our operations. After Bill completes his remarks, we will conduct our question-and-answer session.

Here are some of the Q3 financial highlights. As Paul discussed, our top-line revenue of 3.2 million for our third quarter was 25% ahead of Q3 revenues of our prior year, but below management's revenue expectations for the quarter. Our year-to-date revenue was $9.9 million or approximately 28% ahead of last year's nine-month performance. The revenue shortfall was primarily due to an unexpected delay in obtaining customer board approval for a large software systems sale in Q3 which had subsequently been approved. Accordingly we are confident that this contract will be executed before the end of our fiscal year.

As provided in previous earnings call guidance, we anticipated approximately 25% revenue growth this year. Upon the expected signing of this large systems sale along with other anticipated sales we are still on track for that accomplishment.

Even though our year-to-date revenues are slightly behind management's expectations, they are still $2.2 million ahead or 28% ahead of last year and our high margin system sales are dramatically ahead of last year. In fact, coupled with actual expenses running below our budgeted expense plan has resulted in our operating results for the first nine months of our fiscal year to be in line with management's expectation. If we achieve our annual revenue target as discussed previously we will exceed our operating income target for the year. I will provide additional guidance regarding the remainder of our year later in my remarks.

Let me take a moment to discuss our sales and marketing activities including comments on our expectations for Q4. As planned, a portion of our increased revenues to date have been reinvested in our operations to expand our sales staff after years of severe restrictions due to our prior debt covenants and repayment obligations. This investment in sales infrastructure is beginning to pay dividends.

For example, our year-to-date high margin system sales are $2.3 million compared to $500,000 last year. Our pipeline of qualified sales leads has grown fourfold since the beginning of our fiscal year and currently stands at approximately 39 million in potential software revenue and 57 million in potential total revenue. As a result of our robust pipeline of qualified sales leads as well as a number of transactions in Q4 in which we are vendor of choice or in contract negotiations, we are confident we will achieve our revenue target for the year.

On the marketing front, during our third quarter we participated an exhibit in the American Health Information Management Association conference in San Diego, California. We made a significant investment in this important national conference for medical record professionals and staffed a large booth on the exhibit floor.

I am pleased to report that we enjoyed great success in promoting the financial benefits of our workflow in document management solutions and developed a significant number of qualified sales leads. Keep in mind that one of our most significant sales this fiscal year to Sarasota Memorial Hospital was a byproduct of a sales lead from last year's conference.

At this point I'd like to discuss our business development activities and priorities. As has been discussed in previous earnings calls, we have added a highly qualified and experienced Executive Director of Business Development in the first quarter of our fiscal year. That investment is also beginning to pay dividends by bringing focus to the development of our existing strategic business partners and the expansion to new strategic partners.

Although I am not at liberty to discuss specific potential new strategic partner activities, I will share our goals on how we expect to expand our business development relationship for the remainder of the year and into our next fiscal year. One, our goal is to expand our current relationship with IDX across other business divisions. We have several mutual IDX Streamline Health customers that are pursuing integration of our workflow and document management solutions with additional IDX solutions beyond our current integration with Carecast.

Two, we intend to expand clinical information system distribution partners. With the recent announcement of the pending purchase of IDX by GE Healthcare, we are aggressively pursuing integration of our enterprise workflow and document management solutions with the GE centricity solution utilized by any existing installed base customers.

Three, we are targeting the ambulatory market and the Regional Health Information Organization, or RHIO. We believe our technology and ability to establish a repository of historical health information can assist our customers in affordably establishing RHIOs throughout their respective regions. We continue to analyze the evolving standards around the continuity of care record, the HL7 clinical document architecture and the HIPAA claims attachment so that we can enable our clients to meet these document workflow requirements across the continuum of care.

Four, we are focusing on registration eforms. We believe the integration of eforms technology with our workflow and document management technology can create greater process efficiencies for healthcare organizations.

Five, we intend to expand our solutions through potential new health information management outsourcing partners. Our codingANYware coding workflow solution is utilized by numerous coding outsourcers today. We believe we can further grow our application hosting services by pursuing synergistic relationships with additional health information management departmental outsourcers.

Six, we have targeted providing additional workflow solutions for revenue cycle management including business process outsourcing. Just as with coding and health information management outsourcing, we believe our application hosting services can complement existing business process outsourcers, particularly those providing revenue cycle management services.

And finally, seven, our goal to expand our portfolio workflow solutions into human resources and supply chain management. We currently have plans to integrate our workflow and document management solutions with several prominent human resource and supply chain management software providers such as Lawson and PeopleSoft which are installed in our customer base.

At this point I'd like to comment on our growth this year and provide a brief overview of our focus and plans for growth next year. As I have discussed in prior earnings calls, our plans this year call for significant growth in our revenues and a major investment in our sales, business development, product management, consulting services and software development infrastructure. Our plans for this fiscal year call for approximately a 40% increase in personnel.

Although we do not anticipate the same degree of expansion of personnel next year, our business plan still calls for revenue growth in the same range as the 25% growth we expect to achieve this year. Our plans also call for continued improvement in our operating income (indiscernible) our operating income growth next year is in excess of our anticipated revenue growth percentage.

Though our focus this year has been on adding infrastructure to sell and deliver new workflow software solutions, our focus next year will be to expand our consulting services competency in order to provide the business analysis, return on investment benefits and implementation of best practices methodologies to improve key business processes in healthcare organizations particularly in the areas of revenue cycle management, supply chain management and human resources.

Next year we will also be enhancing our technology platform and architecture to embrace portal technology in order to take advantage of emerging healthcare opportunities such as physician portals. Our long-term vision is to be the leading provider of enterprise solutions utilizing the following five integrated technologies -- document workflow, document management, seamless integration tools, portal technology and eforms technology.

Let me conclude my remarks by providing some further guidance regarding our expectations for the remainder of our fiscal year. As discussed in previous earnings calls, we traditionally book approximately 60% of our annual revenues in the second half of our fiscal year with the largest portion in our fourth quarter. Closely following that trend, this year we again expect to book approximately 55 to 60% of our total annual revenues in the second half of our fiscal year. Accordingly, we anticipate record fourth-quarter revenues and operating income and we believe that we will meet or exceed our revenue and operating income expectations for the year.

Although we have made significant investments in personnel in the area of sales and research and development, we continue to monitor our expenses closely to ensure we meet or exceed our operating plan. In our next earnings call to discuss our year-end results I will provide further details regarding our business plan for fiscal year 2006 and further guidance regarding our revenue, margin and operating income expectations. This concludes my formal remarks. I would like to turn the call over to Bill Geers, our Chief Operating Officer, for his update.

Good morning, everyone. It's my pleasure to be with you today to present an operations update. My comments will be brief and they focus on our infrastructure progress in three areas -- sales and marketing, research and development and, finally, consulting services. During our August conference call I announced in our second quarter our total companywide headcount had grown from 83 to 89. In the third quarter our total number of employees grew to 95.

We continue to be pleased with the high-quality personnel that we've been able to hire in 2005. Within our sales and marketing group, as previously discussed, at the beginning of this fiscal year we announced that we expected to increase our operating expenses by approximately $1 million in 2005. We believe that the actual increase will be in line with this projection. In Brian's comments he mentioned that we are encouraged by our strong pipeline. To that point it is worth noting that the two newest members of our sales team have already begun to contribute to our success in this area.

With respect to our research and development team, as announced previously, our 2005 investment will exceed our 2004 investment by more than $1 million. This investment is necessary to ensure that we capitalize on our vision of delivering business process improvement within healthcare through the implementation of solutions based on the five integrated technologies that Brian addressed in his comments this morning.

Here are some research and development highlights as of the end of our third quarter. We continue to be encouraged by the skill set and work ethic of the associates that we have added to our team in 2005. We are optimistic with respect to the contributions that we can expect from them in the balance of this fiscal year and beyond. Secondly, our headcount now stands at 41 which is up from 35 at the end of the second quarter as we were successful in hiring two business analysts and four developers in the third quarter.

As far as the fourth quarter is concerned, we plan to add an additional quality assurance analyst. Of the six people that we hired in the third quarter -- I'm sorry, one of the six people that we hired in the third quarter is a technical manager. This particular individual brings to us a breadth of technical and development expertise with those technologies that are the bases of our future architecture. He is also very knowledgeable in the area of software development lifecycle process and has proven leadership skills.

In addition, under the leadership of our manager of quality who joined us in March of this year, we continue to demonstrate significant progress in the area of process improvement throughout all phases of our product lifecycle from the requirements phase through products sunset. Our commitment to quality through process improvement is having a positive impact on our effectiveness and efficiency.

Finally, in our last conference call Brian indicated that by January of 2007 that we want to increase our total workflow portfolio by 12 new offerings. With respect to that objective, we were in various stages of development of the first six offerings one of which is now successfully installed in production at a client site. We expect the development of three more of these workflows to be completed by our next conference call.

That brings us to the consulting services group. By way of reminder, our consulting services team owns responsibility for the successful implementation and support of our solution. To ensure our ability to successfully support our clients we added an additional level two support engineer in our third quarter. With this addition the current consulting services headcount now stands at 21. It is worth noting that our consulting services group continues to receive high marks from our clients with respect to the quality of our implementation and the day-to-day support of our solutions.

In summary, we are pleased with the progress that we have made through our first three quarters with respect to the strengthening of our infrastructure in these three critical areas -- sales and marketing, research development and consulting services. We expect the additional headcount will allow us to further demonstrate our commitment to our top four business priorities which are -- client satisfaction, product quality, to be market-driven and growth oriented and, finally, to achieve our financial plan.

That concludes my formal comments. I'd like to now turn the call over to Paul Bridge for the question-and-answer session.

Thank you, Brian and Bill. Operator, may be please have the first question?

(OPERATOR INSTRUCTIONS). William Dunn.

A couple of housekeeping issues. Is BlueChip -- have they been selling their stock and to what degree have they sold?

It is my understanding that they've sold their shares.

So that's behind us. On the last conference call you were looking ahead to the third quarter and you thought that IDX would contribute as much as seven to nine sales and then perhaps three to four in the fourth quarter? And it seems like they came through with none as I understand it.

Let me clarify that. There were seven to nine opportunities in the pipeline, the qualified sales pipeline. We did not anticipate to close seven to nine deals this year. We do anticipate to close -- we did anticipate to close three to four deals by the end of our fiscal year.

So it sounds like they dropped the ball a bit. Is this because they took their eye off things with the GE news?

Actually, Bill, they didn't drop the ball. To the contrary, they're on the ball and there's probably, in my opinion, additional pressure to close those deals as a result of the GE healthcare announcement. So the opportunities are still there and they're still very relevant.

All right. I think that you provided a forecast earlier in this call. It seems to suggest that the application hosting software sales would be flat from third to fourth quarter? Is that correct?

From third to fourth quarter, that's relatively correct, yes.

Okay. So no new customers are expected to come in through that period and no growth with the existing base?

I wouldn't say that, Bill. The point on application hosting is that we could get a new customer, but by the time we go through the implementation cycle, which can take a couple months, up to six months depending on the size of the implementation. And then of course the revenues are a subscription fee that starts at the end of the implementation, we indeed could be signing up hosted customers but not enjoying the revenue for several months or even a couple of quarters.

That's it for me for now; I may be back later.

Dan Veru, Palisade Capital.

Good morning, Brian. What is the total installed base of customers that you have in terms of numbers of hospitals? And when you look at that number, what percentage of -- looking at it from a revenue perspective, what portion of gross revenues would you consider now as a percentage of the recurring revenues?

I don't have the exact numbers in front of me, Dan, but the number of total sites that we have either installed or in process is in the range of 50 to 60 total locations. And typically in terms of recurring revenue which includes of course the application hosting, the maintenance and services, it generally runs over 50% of our total revenues.

Is that a good gauge to use on a going forward basis as the Company continues to mature or would you expect that to climb as a percentage of gross revenue?

We expect it to climb as a percentage of gross revenues. Obviously it depends on the mix of direct sales that are locally installed versus application hosting, but our maintenance revenues, because of our planned 25% growth this year with six month one-year lag go up significantly. And also our application hosting revenues will continue to climb. So as a percentage of our overall business we do expect it to climb and we hope it does because that's predictable revenue that we enjoy. And as the percentage is in excess of 50%, it may be as high as 60% and climbing.

Perhaps for the next conference call if you get more granular with that that would be useful from a modeling standpoint.

Yes, indeed I do anticipate in the year-end call to give some guidance relative to our business plan and some general guidance in terms of the mix of our reoccurring versus direct revenues in the various buckets. I'll give some guidance along those lines and also in terms of our operating margins on those particular buckets.

It sounds -- just switching over in your earlier comments that you made that you are at the very beginnings of making some inroads with General Electric. Was that a result of the IDX acquisition or had you been having conversations with them prior to that announcement?

Let me say this, we, as you can obviously imagine, are not involved in the quiet period of that acquisition at all nor should we be. It's obvious that we've had a long-term relationship to with IDX. To answer your question specifically, we have had engagements and dialogue with GE Healthcare prior to the potential acquisition of IDX, but we are not at the table, as you can imagine as well, in terms of that particular acquisition. So having said that, we were pursuing GE Healthcare as independently of the acquisition.

And as I've said in previous earnings calls, we're optimistic that we can participate once that deal is finalized in a relationship with GE, but there's no guarantees of that of course. Furthermore, we have decided to aggressively pursue GE Centricity customers within our installed base. We have a very large installed base of prestigious customers, some of which have GE software installed and we're not going to wait; we're going to go out and pursue those customers and try to get implementation of the integration of our software with the GE Centricity which I think will serve us well going forward in terms of a potential relationship with GE.

And then just one final more of a comment. I think the Company is at a stage now where you and the rest of the management team should be much more proactive with investors beyond what the quarterly conference calls entail. And this has been very good and probably your most comprehensive in terms of strategy and business opportunity, but this is becoming a terrific story that many people have not had access to. There are things you can do to be more proactive to get the story in the business opportunities out I think that would be helpful for all shareholders.

Dan, thank you for your input and I do agree with you. I will be making a much more concerted effort to get out and tell the story now. As you probably know, I have been focused for the last year on growing the revenues and working with our Executive Director of Sales, Dan O'Brien, and getting out in front of our existing customers and potential new customers to ensure that we achieve our targeted revenue and operating income. We're well underway to doing that and now I can allocate much more of my time to telling the story to Wall Street and I will do so. You have my word.

Thank you.

Mark Cahill.

Good morning, gentlemen. First question, name change? What's the status of that?

First of all, it would require Board action as well as shareholder approval at an annual meeting. It is also somewhat of an expensive proposition to do and we've been focused on controlling expenses and on growing the business. So we look at it from time to time but I don't believe that there is any plan at the present time. But we will probably readdress sometime between now and the May 25th or 26th annual meeting of shareholders.

Okay. In this yesterday's news release you referred to the delayed deals and LanVision was the center of choice. That doesn't sound like an IDX deal. Am I right?

Actually that was probably a misstatement it is an IDX deal and LanVision obviously -- or Streamline Health is a participant in those. But when we work with IDX collaboratively, sometimes we're behind the scenes and it's just strictly IDX with our software bundle and sometimes we are actively involved in the sales process as Streamline Health and this is the latter example where we were actively involved as Streamline Health.

Right. Can you give a breakdown of the pipeline numbers that you gave? Is that just for the fourth quarter or is it for the first and second?

The pipeline numbers that I shared with you were total pipeline numbers over multiple quarters. That involves more than Q4.

And that includes the IDX deals that are in the hopper?

Yes, I can give you some general idea of what we anticipate in Q4. We have three to four IDX deals in the pipeline for Q4. Now I want to caution and qualify that that doesn't always mean that those will close in Q4, but we do have them forecasted for Q4. We have three new direct deals and six direct add-on deals to our existing installed base and two IDX add-on deals. Now when I say that, I also need to qualify some of these deals are smaller, for example add-on deals can be just small dollar amounts, they aren't necessarily typically large new sales so that is the total breakdown of the Q4 forecast and I can't go into any more detail than that.

Okay. Can give us an update on the status of the IBM streamlined portal product where it stands and when you think you could bring it out?

Certainly, I'll let Bill comment on that from a product development perspective.

Yes, actually that is actually in development and we will be introducing that in -- by I would say, late Q1 to early Q2 of 2006.

Will that be a beta version or the final version?

I'm sorry, that will be a beta version. So we are in the process now of actually discussing that with several clients really to make our final beta selection.

And the demand prospects for that?

Very high. We are very excited about expanding our scope and our ability to sell new solutions into the healthcare market. Physician portals and portals in general seem to be at the forefront of the mind share of many CIOs. Clearly in some respects we've told our existing customers to be patient and that we'll be rolling this out in the first half of next year. But there's a high degree of excitement there and they can't wait to get their hands on this technology which I think bodes well for us going forward next year.

Right. Partnerships, you mentioned in your comments PeopleSoft and Lawson I believe. Are those new partners or is that just something you're expanding your relationship with?

It's similar to my comments regarding GE Healthcare. We don't necessarily see an opportunity to partner to the degree that we've partnered with IDX, but we aren't sitting around waiting for things to happen. As we're going into our existing customer base to find opportunities to integrate with GE Centricity, we are also taking that same aggressive approach within our customer base to find opportunities to integrate our technology with Lawson, PeopleSoft and others.

So rather than -- it's kind of like possession is nine tenths of the law, that we want to go in and form an integrated solution in our installed base that will give us leverage for Dan O'Brien and our sales team to go out and say we've done this and this technology works very well in these environments. Maybe down the road we can get the attention of third-party vendors to actually form a more tightly coupled relationship, but we're going to go ahead and do that in our installed base anyway.

With respect to your expanding your distribution, you wanted to add on new partners and I believe you were working on about eight. Are you getting any closer?

Yes, we are and, again, I'm not at liberty to discuss the details, but we do anticipate some announcements in the next quarter or two.

Okay. With respect to Promedica, Flower Hospital is the third of the ten clients within that group, and I think in the press release you implied that the remaining seven will implement streamlined solutions next year. All seven for 2006, does that sound right?

Not necessarily all seven in 2006. The three hospitals we have is the Toledo Hospital, Children's Hospital and Flower is now in the process of implementation. And we are just discussing the implementation of the remainder over a period of a couple of years. I don't think they could handle the big bang, if you will, in terms of doing them all in one large lump.

Right. Okay. My last question with respect to the maintenance and service fees arrangement that you had with your old partner Siemens and you are displacing them with some customers and that old fee is actually tripling I believe. Am I right?

Yes, that's correct, Mark. I've discussed in previous earnings calls the dynamics of that and specifically we still have an existing arrangement and agreement in place with Siemens; however, as I've discussed previously, they are in the process of building and selling their own document management solution. The reason that we still have an existing agreement in place is to support our mutual customers and there are 12. We have aggressively gone after those 12 to try to entice some of them to work directly with Streamline Health as opposed to working through Siemens. And our argument for that is the quality of support going directly to the supplier as opposed to through an intermediary.

We have been successful and we have announced one customer, mutual customer which was Oregon Health that has come over directly. There are others that we are pursuing that I can't divulge at this point, but the bottom line is the reason for that was that we receive a maintenance revenue through our existing contract from Siemens that range around 6% of the total software value. By going direct to us we believe they'll get better support following our help desk directly with the current versions of our products implemented. And secondly, our maintenance revenues will triple from 6% to approximately 18%. So that's why this is a good deal for us and I think a good deal or our mutual customers.

Two add-on questions. How quickly does that happen and what's the IDX maintenance service arrangement you have?

Two good questions. First of all, it can happen very quickly in the Siemens installed base simply because we already have our product installed through the Siemen's implementation team. So actually there's more (indiscernible) than just tripling the maintenance. By upgrading some of these mutual customers to our latest software and oh, by the way, none of our existing 12 mutual customers have our latest software which is problematic for our customers, we get the implementation revenues and the professional services revenues that go along with that upgrade in addition to tripling the maintenance.

And secondly, regarding IDX, it's good news as well. IDX had the vision to understand that they are not as qualified to implement our technology as we are so they have deferred the implementation revenues and process to Streamline Health directly. So we get all the implementation revenues and consulting revenues from our IDX insulation as well as well of the maintenance. They understand that their customers will be better served if they call us directly to our health (indiscernible).

So every time we make or announce an IDX transaction it isn't just the software value, it's really a double benefit in terms -- a triple benefit in terms of we get all the maintenance revenues less a small basically see that we pay IDX for administrative purposes and we get all the professional services revenues as well. We love IDX transactions as you can imagine.

That's it for me. Thank you.

Alan Shore (ph), AFA Financial.

I was a little late in hearing your comments. Did you mention anything about codingANYware, Brian?

No, I did not, but it's a good topic to discuss. We last year and going into our year actually appointed a full-time resource to sell codingANYware standalone; that resource was also responsible for working with our distribution partners which are the coding outsourcers. As we got into about midyear we realized that most of the opportunities that we have for coating anywhere are in two buckets. One is the coding outsourcers and we've been very successful in (indiscernible) them up. And we provide codingANYware through our hosted services.

And two, as an add-on to existing large system sales. What we did not anticipate was that there wasn't much of a market for a standalone codingANYware solution in the market. So as a result we did adjust midyear and we folded codingANYware back into our direct selling organization. It is now on the list of many workflow solutions that we sell on an enterprise basis back into our installed base and potential future customer base.

So it is not a standalone offering. I mean, it's available standalone, but we don't have resources dedicated to selling it standalone. So as we move forward, Alan, you're going to not see codingANYware as a separate line item, but as an on the truck, if you will, solution that's provided along with a lot of our other large system sales.

And then finally, I would agree with Dan Veru that getting more exposure out to Wall Street probably this year makes a lot of sense considering the performance that you've had over the last 12 months.

Thank you for that comment and we agree. We have a heck of a story to tell now. We're very excited not only about this year's performance through the end of our Q4, but also we're very, very excited about next year's possibilities as well.

Great. Thanks, gentlemen.

I'm showing no more questions, sir.

I thank everyone for joining us and wish to advise you that the fourth quarter and the fiscal year earnings release is currently scheduled for release on Wednesday, March 29, 2006 and a corresponding conference call is currently scheduled for Thursday, March 30, 2006 that 10 AM Eastern time. We thank you for joining us and we look forward to the next call. Operator, this concludes our conference call.

Thank you, sir. Ladies and gentlemen, this concludes the conference, you may now disconnect. Good day.