Original Source: FD (FAIR DISCLOSURE) WIRE
OPERATOR: Good day everyone and welcome to the Descartes Systems Group first quarter fiscal year 2005 financial results conference call. As a reminder today's call is being recorded. At this time I would like to turn the conference over to the director of Investor Relations Chaya Cooperberg. Ms. Cooperberg, please go ahead.
CHAYA COOPERBERG, DIRECTOR IR, THE DESCARTES SYSTEMS GROUP, INC: Thank you and good morning, everyone. Joining me on the call today are Art Mesher, Executive Vice President Strategic Development, and Member of the Office of the CEO, and Brandon Nussey, Chief Financial Officer and Member of the Office of the CEO. I trust that everyone has received a copy of the press release that was issued today just after 7am. This call is being recorded by the Descartes Systems Group and is copyrighted material. It cannot be recorded or rebroadcast without Descartes' express permission. Your participation implies consent to this taping. If you do not agree please disconnect your line. Portions of today's call other than historical performance include forward-looking statements made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements related to Descartes's operating performance, financial results and conditions, cash flow and use of cash, alignment of operating expenses with visible and recurring revenues, expense reduction initiatives, particular verticals of strength or focus for Descartes, the pursuit of outstanding accounts receivable, anticipated cost savings, timing for the recording of restructuring charges and the amount of these charges, and other matters that may constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes to differ materially from the anticipated results, performance or achievements implied by such forward-looking statements.
Such factors include but are not limited to the ability to achieve cost reductions on a timely basis, the ability to collect any specific accounts receivable or paying regulatory approvals, Descartes's history of losses, operating results which may fluctuate significantly from period to period, the ability to attract and retain key personnel, additional impairment charges required by applicable accounting principals, global, economic, market and political conditions, adoption and acceptance of Descartes's technology and pricing model by customers, increased competition and exposure through international operations, errors or defect in Descartes's products, the ability to adapt to emerging technologies, the ability to successfully secure and protect patents, trademarks and other proprietary rights, infringement of third-party intellectual property rights, currency fluctuations and the factors discussed in the section entitled risk factors and documents filed with the Securities and Exchange Commission, the Ontario Securities Commission, and other securities commissions across Canada.
None of the statements or the statements made in the conference call today should be construed as a solicitation to purchase common shares in the company. Our call today will focus on the results of the first quarter. We have previously released our final audited fiscal 2004 results and fully disclosed the adjustments made from the preliminary unaudited results released in March 2004. We will not be discussing fiscal 2004 results on this call. In addition, in light of litigation or potential litigation we do not intend to comment today on matters that might adversely affect our positions in any such litigation.
With that let me turn the call over to Art Mesher.
ART MESHER, EVP & OFFICE OF CEO, THE DESCARTES SYSTEMS GROUP, INC: Thanks, Chaya, and thank you all for joining us today. First I'd like to extend a special thanks to all our stakeholders who have called in and contacted us, our customers, partners, and shareholders that have been supportive and the words of encouragement that they've given Brandon and myself and our company, we're really grateful for their patience and their support. In today's discussion Brandon is going to review the unaudited results of the first quarter fiscal 2005 and provide an update on the restructuring activities. Then I'll come back on and comment further about how we will run worldwide operations going forward.
I'll turn the call over to Brandon for a review of this quarter's results and then we'll followup with some comments before we open the call up to Q&A.
BRANDON NUSSEY, CFO & OFFICE OF CEO, THE DESCARTES SYSTEMS GROUP, INC: Thank you, Art. My comments will focus on the unaudited financial results for the first quarter. I'll begin with a review of the statement of operations and then turn to the balance sheet and cash flows followed by a review of the restructuring activities we have undertaken. Revenues for the first quarter are inline with our preliminary estimate of 13.3 to $13.6 million that we provided on May 10, 2004. Total revenues for the quarter were 13.3 million. Of the 13.3 million services revenue contributed …