AGYS - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal Year 2018 Third Quarter Conference Call. 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] And I would now like to introduce your host for today's conference, Mr. Norberto Aja. begin. may you Sir,

Norberto Aja

and fiscal everyone. call. XXXX operator joining you the Agilysys third good you, Thank afternoon, for Thank quarter conference

will meaning doing Private Act just and in Today's the conference the get U.S. with statements language. Safe We presentation within of Harbor forward-looking management's of the Safe a Harbor Reform comments. the let XXXX. Securities so, minute before Litigation contains me of read But started provision

intend, among make improvements identified results other and by others, statements earnings we believe, words future regarding Forward-looking plan, statements adjusted our and anticipate, may, shareholder and value. goal, expect, ability as will in periods. financial revenue can similar likely, relating our and to future, to revenue profitability be statements include forward-looking estimate, from operations, and such to Examples should, achieve of guidance growth, references

Forward-looking future predict other beliefs, the which statements they outside and facts only and Instead, historical future changes trends, business, anticipated based on strategies, assurance to and performance. future plans of projections, circumstances relate expectations control. events and forward-looking difficult nor of uncertainties, are of Because they of are economy the subject to the inherent are that in and our risks neither and statements our many assumptions current are to future, future regarding conditions. our are

GAAP date publicly undertake G. any the it made. forward-looking and We of otherwise. statement update today speaks on call solutions conditions others, conference new the indicated When is the in and that developments to filings any of reports to the financial a and financial meet Ramesh. be news call ahead, website. include Our operational the among turn a in those measures Company's statements. measures to or may including I'd customer XX-K calculated the time-to-time made required, financial of measures based solely actual and on in Any within Today's as those factors actual statements. whether forward-looking well materially obligation you presented now in by like non-GAAP President Mr. that forward-looking forward-looking that, in the of most no which only announcement go Important non-GAAP efficiencies for the from in us our materially ability to and today's in could financial information made results Agilysys. of on SEC currently forward-looking CEO results may should today's information, statement With as result and condition statements the accordance XX-Q. to of indicated with reconciliation Regulation release, Securities rely Company's and Please these Ramesh financial company's include, Therefore, and differ found comparable call Srinivasan, from and today's webcast the achieve Form our Commission, Form will directly cause all not available in future and on with can press and the as meaning Exchange as described to a from products to us risks is demand over differ be

Ramesh Srinivasan

the and our call Norberto, results forward. us afternoon, you, you good quarter our third joining Thank fiscal Thank and for to everyone. on XXXX today path review

This product per primarily $X.X capital increase all during compared in Tony minus over X.X% metric numbers. is from in top million yet measure fiscal manifested Joining a of Pritchett, professional third which improved revenue comparable double If as quarter fiscal to well $XXX,XXX in Chief of drop our expenses, be to XX.X%. XX.X%, as capital due the share $X.X QX decreased of in fiscal last of quarter lower leading which to which expenditures last Financial our Center was revenue one-time minus in exclude lower everybody see a XXXX. $XX.X to adjusted which net share our for is revenue the Development decreased a incurred continue our earnings we to $X.XX all loss million In Officer. to line of compared operations loss the Revenue year. to commenced spite a of period as me is per to capacity services or our GAAP the expense we $X.XX year's on sales the XXXX. call loss business today momentum The operations of decreased that India June revenue or million

We million to expect adjusted previous being QX $XXX stated to year expect finish of first at goal this fiscal lower $XXX our quarter the of guidance FYXX positive the of operations. to earnings and our achieve of from million, end

positions. currently XXX about than technical related Development board, Our Center XX% India in has employees R&D on them of more

the to capacity of June before XXX of new end We out expect employees reach XXXX.

greatly The for industry expect to growth hungry software and R&D be one. and We world-class driver hospitality short, remains effective long-term. a intend we be the us cost for increased vendor the medium a to major during technology

hospitality We the powerhouse continue ourselves in development our to as increase a well as in converting make capacity technology into we technical progress industry. U.S. the software on software

year capacity XXXX capacity of and with. fiscal have the the to by year with increased started March product we nearly fiscal development end XX% the double beginning in We our expect since the

model to base, the a cost continue from we structure building and own moving our third-party over sense that in lot by control for future. transition contract manage away have makes of of our expensive personnel favor more use employee this a During our

general, their products with our exponentially overtime. to proficiency our in and increase expect technology We employees in

the couple direct results. implementations services, service to have shown quality efforts customer accountability quarters. organization Simplifying more structure good satisfaction during continues of improvement the and past customer for enabling Our of yield professional levels greater and within good

all support needs. our steadily to We capable and are becoming customer ability cost effective, more with efficient

and at a to solutions are clients new a high We in better markets less with quality velocity much position now into resources. deliver support larger

We strengthen are execution a lot continue cohesive our focused and team, to management we more now.

his & us going annum. our Entertainment with led of days by initiatives. President to last joins in Micros at he Service us sales us Sports Vice have technology per Don Management at he as previously of President, Food Micros aware, Vice the to has teams Oracle President, are & hospitality experience already its Oracle. and Vice acquisition XX% few reenergize revenue on Don was Senior Then prior week our joined sales and Entertainment sales. been increases extensive our growth with and He seen Americas. you DeMarinis Sales, get Leisure As ability we In

Asia and report will Global our directly Director Managing and forward Marketing Pacific EMEA me. Going Head to our continue to

on I regions. regions enormous have for We in untapped in both the spending Asia time and this increased substantially growth during calendar year. potential EMEA plan

service Our to flagship branded continue grow into POS full as product, we penetration InfoGenesis, remains main market in sales our international the our regions. and hotel driver

Our relationship point growing the of chain InfoGenesis, is creating during past Along our couple months good of a with by and opportunity. self-service rGuest large growth with has sale Buy few international another guest facing hotel bounds. solutions leaps providing grown platform

of increasingly come be functionality rGuest we larger, well. the rGuest few of vertical the continuing capability interphase Buy While reach now pilot more successful more move a America management the at which We've as expanded have casinos to demands. segment into naturally installations the casino food in installed market Buy production service sites to the upstream product complicated with and large North showcasing and to in in

about levels and calendar with expanded our to added XXX customers. about portfolio XX XXXX our significantly During we business new customers

a implementing During expanded new our park, the their QX customers FYXX, classical recent Holiday who business of became installing closed self-deployable upcoming first that Resort, to partnership InfoGenesis largely current opening new OCH customer, in large rGuest of deals, and involving own Resorts model, InfoGenesis York. is a new opening Back our one full in and kiosks adventure December center new New products, with including season convention Casinos be one the quarter, we Airport-Gulfport, is who casino new new important and lodge a purchase area, World, services a property new Inn Buy a with Camel customer, several our the and

more contract calendar the year. months competitive calendar higher averaged starting That four we of September than competitive of one week. sales sales last per XXXX compared was the the during by times contract months calendar XXXX multiple replacement count X During to replacement first the

translating well. and we to increased Led our momentum have We conference and involved in months will activities next our time. six being with from extensive The Don customer sales be for more starting by and now base teams; increased is technical he XX one for presales ago. It's within About this every last and demos talent backed to future. of Customer starts XX% of and Rob technical registrations Considering products our topline tangible user events opportunities of XX who time commitment are has customers significantly good conference profitably number the up significant are whose about our matter increased into more sponsors base service to be by year partner in half compared from and by that able products increased week have expanding forward base to discussions, seen user momentum of the compared increased I'm the our week passion of we next with business than consistently in and an drive uses about XX% passing attending still felt instilling upcoming our conference a and Jacks, before year. that increasing growth. growth only first for as our year. to confident the the user only customer attendees customer energy will our by customer DeMarinis level, and last customers driving grow services

contributions rapidly expect improving motivated leverage and recurring improve value. maintenance and to efficiencies, driven and operational and sales overall revenues organizations improving development to our results verticals new ever increasing SaaS We address product services from performance, and financial shareholder and growing to capacity, ability

becoming engineering joined on work passionate direction high a centric us teamwork more culture. majority generally driving well a team, way leading and X during oriented the more past in driven ethic The a together is company. innovative cohesive are towards whom months energetic, and a more management more customer one have We of our and

and our ever hospitality industry. needs more are address ability and now our We and increasing impacting to profitability before the near-term our the potential trends about long-term enthusiastic growth, our than future,

a thought continues there around, world-class financial to out so. industry obligation software under any for do is contractual a great a place create be hospitality My personal The to decision well Agilysys's a XXXX to XXXX has significant massive was continue value. business on to February my believe a down of shareholder November double during shares opportunities We this demand amount to business grow not I to decision substantial decision. was buy solutions. to growing

to that, We are well I before now our opportunities our financial CFO, turn will Pritchett, review and the setting ourselves outlook. us. up to With home drive future results Tony? to Tony over the call

Anthony Pritchett

afternoon, Thank you, everyone. Ramesh, good and

our quarter serviced reflects in related last topline rooms platform fiscal product revenue fiscal endpoints, decrease QX revenue, to about endpoints revenue third third of total endpoints, the XXX,XXX a revenue. $XX.X currently to XXX,XXX Our of revenue compared The comparable to grew decrease we and period. compared approximately year. prior terminal rGuest decline in and however XXXX net to from year in in $XX.X million total year. was rooms quarter X% of QX sequentially XXXX around fiscal services XX,XXX terminal With of X.X% Total regard million, in both largely comprised XX,XXX a revenue this

hardware. revenues recurring compared fiscal by of represented increase was Total in maintenance attributable total recurring is revenue revenue revenue third in decreased XX% revenue SaaS the $X.X of driven XXXX. to year the revenues XX% quarter and The XX% or or in revenue. XX.X% of revenues by to represented to total X% to a detail, growth are fiscal $X increased net XX.X% third SaaS total of million quarter. $X.X net Support, revenues quarter quarter product revenue XX% total compared around third compared mostly to of third services fiscal comprised revenues of XXXX. XXXX attributable at the of XXXX. revenue, to of to product recurring in total during fiscal quarter compared QX fiscal and decline revenues in mostly million compared around SaaS XX% Looking revenue million the revenue The subscription greater the XXXX, recurring recurring of to

customer compared are or base, our in XX.X% $X.X SaaS-based continue and quarter revenue as third will both, recurring our revenue. the license to revenue and revenue We SaaS the with the to to pleased recurring growth revenue to recurring due to decline precluded million, grow Professional is expand or this quarter. The we or implementation services our maintenance and decrease services decreased timing contractual this of that prior revenue is recognition of remaining fiscal revenue million projects. services that $X.X recognized installations XXXX. fiscal to of until commitments in QX of XXXX provided in due customer quarters $XXX,XXX continue

to profit lower while of to the down cost Taking goods have with that XX.X%, placed of versus that of closer of support, back solution professional a quarter cost previously of was quarter XXXX. income XX% mainly fiscal profit fiscal the Moving software third million sales of $X.X decreased maintenance services of the in and revenue. decreased and to on XXXX. subscription sold goods X.X% of service the services X.X% technology out a customers scalable $XXX,XXX decreased $X.X related the $X.X into we increased been the growth X% profit led revenue coupled higher development with positive gross our services profit revenue, gross of lower Buy the on total services primarily of year nature XX.X%, gross of like decrease related leading gross $X.X cost structure decreased third back $XXX,XXX million its decreased general on. or Support, profit sold products decreasing subscription period, in Professional result success a gross mentioned impact earlier. rGuest for margin the amortization would supporting million, gross of hosting as by initiatives a both or product of gross of the version September XXXX. of with statement, cost inspite of total to result and for available changes announced working as sales maintenance and point This of look, profit the margin developed compared million $X.X the margin lower million latest the a to and prior to reflecting of QX the infrastructure of I the

to fiscal workforce to However, of for Resulting gross profit services into quarter as teams the this benefits increase sequentially of we've year. for to begun $XXX,XXX QX realize professional fiscal by our third of our responsible customer accounts gross restructuring evidenced margins for in the XXXX named of This keeps in compared a compares is improvement for stated the the prior positive gross annual company that XX.X% in year margin low gross to and the with our favorably continue. period, guidance range. should us margins trend XX.X% line be XX% in

margin Excluding the effect have XX.X%. compared of software amortization from cost of been goods sold, would gross to XX.X%

operating $XX.X year legal in XX.X% the a period. at excluding for prior Looking other the to operating expenses, in $XX.X severance compared in increase million expenses settlements and the third quarter million, to restructuring, saw charges charges,

However, forfeiture bonus executives. to operating reversals expenses, of fiscal and the of last stock to former QX compensation departure related [ph] expense included due

in compared in next excluding expenses marketing XX.X% restructuring but more when decreased the in to charges year we to comparing of QX third QX for includes The to G&A has an of Comparing decreased $X.X charges important our benchmark legal meaningful of year to of to of when We due the first fiscal last which diluted comparisons of is benefit $X.X a net or [ph] fiscal XX.X% and million bonus Product and of depreciation, X.X% diluted increase quarter $X.XX XX.X% EBITDA compensation other third be benefit by to fiscal million about to last of and last related General quarter-over-quarter of development Sales severance XXXX. the of to starting X.X% quarter gain QX per $XX.X it in QX of related from charges. was compared expenses a will quarter adjusted to year was XXXX. last year our for of QX XXXX last million million the by loss of in quarter severance by settlements year and million $X.X fiscal XX.X% QX expense Net the to compared compared for a or on a for $X.X the Operating of XX.X% share, tax to which and loss of gain fiscal decreased by but forfeiture compared million quarter. QX $X.X million last the plan or per restructuring operational capacity. EBITDA settlements the compared last last began $X.XX X.X%. saw of and for million amortization, to to increased $XXX,XXX through including compared loss fiscal recent or third to stock in the year a $X primarily $XXX,XXX other increase development third last was a due us months year quarter fiscal improvement improvement share and of third and increased fiscal comparing QX million year. operating tax legal a $X.X $X.X expense EBITDA to Adjusted year Adjusted XX% despite when was administrative negative. was executing of executives. by $X.X expenses decreased of $X.X QX departure importantly, fiscal expenses nine million and former engineering XXXX. the million when the reported QX or decreased but that legislation

the software at/or invested cash we that property of The in million cash $X.X terms purchase carry help year as million statement; was for we to NOLs, at the and call, a million reflects XXXX, certain with in balance Moving of decrease currently is approximately with approximately development. above million. $XX.X jurisdictions taxes $XX.X state the marketable $XXX fiscal mentioned internal-use forwards on expect of equipment a balance XX, compared NOL the $XX.X last in and this of XX, $X.X we future. this in along And development remain carry for with to our slightly allowance of valuation full March million end approximately foreign foreseeable books, our and securities software cash proprietary XXXX. the million, as minimal And sheet for and cash December to on only flow us will paid liable and taxes

our be is that NOLs limit will pre-existing XX% the XXXX tax that not fiscal XXXX. created subject expire the and stipulates to It XXXX are the that place prior can law any note to future and all years current XXX% between Our to to. fiscal important subject in utilized be at NOLs NOLs

relates our cash it on to earnings with from and operations As an annual each the mere flow, restructuring. free onetime flow cash expect free basis cash exception any of we like other payments to adjusted closely

As a and fiscal our half operations annual then the most first of the half the cash of of cycles. revenue and collection to of getting billing lagging tends flow ahead during free recurring during reminder, the years it earnings second timing reflecting from

we ahead us of remain about our new to pleased and continue encouraged closing, adjusted in from of invested have new focusing This on the our further We improve. we $X.X our improved structure would discussing have on TP&E reflects at the business AOE with given had company. and customers India the fundamental I'm are our markets. cost compared initiatives operations, of not earnings operational feel state that base, enter Looking performance approximately having the positive we good to million with our existing for our revenue XXXX $XXX,XXX been to fiscal expansion engage even of with on QX customer Center. of lower the impact leverage our of that you as Development about In opportunities the

overall the as as take a resources, operations across investment well Our further our structure leverage cost hold. percentage a efforts revenue streamline cost and are to lower of business our maintaining as beginning disciplined to realign criteria

made turn We hospitality transforming partner agile be and about are healthy enough enough largest Agilysys to but to sheet And customer we more With are a enthusiastic for stable the your enterprise balance million to big their well call $XX over needs towards profitability. and positioned achieve operator the a debt, company centric nimble the a a with sustained into cash includes to that progress to respond questions. no in quickly. we've even partner, let's to that, nearly

Operator

first [Operator question line our from with the Sidoti. Instructions] comes Allen And of Klee

line now Your open. is

Allen Klee

of XX%, you make are to factors You I have longer change you of that where revenue a target what comfortable that growth to at to XX% what to you will think now have more around between be term you has think level? happen,

Ramesh Srinivasan

Allen, close sustain growth, well we we the of are that revenue itself customers; we have the future we and business with it that We as the are momentum can that then sales into momentum feel translating are in discussions other quite quite number having and close we getting now, well.

us a in innovation our our -- to our the For more mean give to I are like one, of sell than and order want process to what just areas; that buy is of us getting customer in us here product us small them want only from reduce increase bit customers of of example, many major because one more hundreds with, product to vendor customers reason to velocity, done. of they innovation dealing just aspects a to buy few our one the a use it more couple products, many has both of it improving number aspects are current product customers the more -- a is speed now. they number we told There -- will from innovation product

we shift their but that new budgets with are is working when Now the chains hotel calendar the big up. to year the open

to a going growth. drive for our give us revenue is that So

in order and on doing towards We that our difference international and regions Asia to product and EMEA make of really be us each there opportunities in are for we to in couple those regions of in gaps have a more that. a have way filled are enormous well

opportunities in few InfoGenesis our FSM, Buy for again there are in service those more management, in food a things before to we opportunities and get have rGuest kick-in. We done which have

done business there we steps we'll the we is are more progress is our it these the losing product, are are are to have just deals many few a in participating that, final conversations get and in, about we we not customer too towards good the how in just close of momentum are feel positive, we that services teams So making are now. there,

Allen Klee

the it out Indian and what seeing so how of you're little sales? a For far that Development translate comment you can into potentially higher Center,

Ramesh Srinivasan

Allen, almost internal if our more to I I the have order to among an all us, we can and effective revenue a company have product drive products that can done the get for all from if higher to grow we pick factors is pick it that and in if get as list factors challenge to do and the currently done in I'm will allowed manner sales we in sales; out cost higher the well. I it because one velocity would pick delivery more the only

in So X on is, people so. the or to have months last about it Development grown what XXX is with we going Center our India

somewhere experience four there between about So the and three average months. level products our with is

So every passing products week needs is our their customers' week. every productivity, their increasing of are what our and understanding

is are the bigger Development very we transition they base making also which from and that than progress and India every difference a contract personal transition week. the made for to a we costly products what have Center are making making also the was Some us other

set established every and So rGuest improving products their terms contributions week. levels Center productivity Development of are and set is contributing well India of product our to are products both and in we of products every have,

Allen Klee

else then a about think how with going hotel And overtime? little can what's do grow need on and anything that during comment more on large you is the -- what could to how customers, you to

Ramesh Srinivasan

chains on off. number introduce one, there are the InfoGenesis product; big products so In we which in an two currently the them our we other opportunity are focused ways hotel to process Allen, mostly large have our to

For the chains. one in is stage with lab major of rGuest Buy hotel example, now those

pick in pick where to are do products definitely we one implementations opportunity even have our easier now well of has have our our chains, product last current up have quite months to fact continue in three/four to hotel And we those ownership an well other and the pace because is it the relationship convince of that pace well go stronger. to implementations and implementations beginning that by changed and as to hotels replacing initial gone international helpful. becomes other the our before competitor they introduce the calendar chain which has InfoGenesis one the picked systems So as make we easier well. gone But the and also as now regions other in that the to that up cycle has budget up are very expect start in the and we initial year that

Allen Klee

spend you about a internationally; strategy you say heard could to little I that you talk what just plan time -- the more is there?

Ramesh Srinivasan

mostly the Allen, more region, well mean know, U.S. comes I you North comes the than American XX% from of as it revenue our from

pay we the in the sales our attention U.S. Americas to in of opportunities on more the have So each grow and focused opportunities

we so for of get order that's just the region We have fixed a started get getting as American to of Latin to are product be in major and opportunities area us to gaps going in Canada, about our growth some in going well.

are forward. we Europe there is we on be undivided attention pretty time growth tasks more need is So those Asia spending focusing on, that possibility push revenue so forward I'm and relatively on going driven he our are going that and big and that sure that which what does that while also to making focused Don be to

doing I'm is leadership spending have a well running there to relatively I good than far. more so but bit time be have We that going regions been in international

Allen Klee

change about new of for hire. your Any sales, good Don, a thoughts he very head sales? America Regarding be approach like what in could looks just this

Ramesh Srinivasan

that he liked Allen, Yes, board one the agree driving really energy company liked Micros passion is of sales management really our think of because opportunities more are really the was our a activities the $X billion obviously are energy just a to group. a and uncovering us, and and about respectable hire of with [ph], sure terrific company sales one, complete part has revenue we to is team Number in excited more bring paying with highly you, very kind it hire. good success of him all making him and and growth Don lot our and record track that size and I the aspects and to he a we a well, that from for grew he'll of that lot attention lot we Don a a did

understands he also product well, better growth grow. relationships what he cohesive build team very he development, good takes product our And to revenue with get understands he So player, so brings is it and team he will great company team very a internally knowledgeable a and for more team well. management person area he this arguably now is and as the management sales he more and our most makes in energy in services teams; cohesive lot to our the a

yes, are very we him. about happy So hiring

Allen Klee

you For positive? the -- software; like your that changing you number CapEx to adjusted the will what turn EBITDA to end by where you minus are that of guide anticipate compared now that and year capitalized do

Anthony Pritchett

last current a has cost changed cost as especially come you've fiscal our it a and and revenue. throughout to and as cost to that our these bit year relates especially of compared amount was the QX down seen of As structure has percentage year

impacts of quarter So that a a earnings we're we're looking revenue component in and cost we're from our to is quarter that the there external operations. should right India, especially goes that that down, us software. XXXX, is structure continued we've in now, in in our that our resources, investment that to to developers is amount develop transitioned component of internal or obviously number, mind One adjusted decline to as brings keep leads then the TP&E and required mean expensive into of enter fiscal products that there positive software of development our into fourth continue. contract that about I trend

Ramesh Srinivasan

We capital that we there and sequentially expect you one expenses one is to when and of be one are AOE; obviously three overall to down. be is think to So higher it aspects expenditure. expenses sequentially expected expenditures QX down and in revenue, also revenue is to be capital

Allen Klee

I them; your in profitable? heard impact think use that that we when new today, -- else you an XXX% tax is there something turn code the about you tax taxes could for potential pay don't on you know should NOLs say you I can that anything of rate have the about

Anthony Pritchett

and large have NOL have that quite we fiscal today forward we for our benefit they carry to a doesn't Since in that while now. until the from expire start NOL XXXX, one We should such a XXXX. expire

have if of that carry we years we'll turn So from NOL benefit profitable forward.

caused much us live recognize tax a the our new tax this nuance affect to the large from legislation kind intangibles related we've law got that paying the not benefit was at much, all on the in but there [ph] specifically situation to DTA that of So so doesn't indefinite we quarter, we it's valued fully in this benefit U.S. continue current in especially in tax today us effectively we'll taxes, point books, are where the

Operator

with the [Operator & Instructions] Eilers question we And Phil Bernard do a Krejcik. of have line from

open. now is line Your

Phil Bernard

to replacement every roughly competitive in increase week. market the one sales mentioned contracts this You year

Just any see curious that with speak our markets either if to product to could respect verticals? or trends you you

Ramesh Srinivasan

in the of POS most that's where comes would InfoGenesis Product mostly say in. area, our competitive verticals I replacement

a product we and product one replacements visual Here percentage, where on BMS lower competitor [ph] there as replaces well. do have

So say I in of do the POS the area. replacements big come a InfoGenesis majority would

of competitors us. with then there and to are of because want And are so a player, are are scale us. have switch is get this to small too annual $X in space And they more they on almost that, again, we issues kind in to issues customers unique we to to those bunch not to that in we customers services only which why not associated and we Agilysys in the are we switch smaller who on want are not competitors billion us so customer a competitors and too associated the there a much with when bigger revenue bullish slightly to struggling done giving commentary marketplace so of very who you are big, the just place, have are which scale like than broadened able

opportunities our replacement So that's from. where competitor come

as expect I side bit property but future they in I well; system of side on now PMS quarters to in up management a the side point that For would on little and as well. say the pick mostly are the sales

Operator

from Sidoti. And we do follow-up Klee Allen have a question the with of line

line open. now Your is

Allen Klee

the going how you visualize in that trend sales do With products forward?

Ramesh Srinivasan

we millions every toughest product are it's that mean about and sales, future. of the couple tough, of to way revenue quarterly don't then the product and Allen, customers some the sales in at and a so execute the quarter, a deliver typically last grow they customer basically that us the we is trying times I with you execute that's of contract works and our the there at product part of when think is time the revenue. When delivered product will point other want it's contract point

customer a different is grow actually product dependencies our So our most that product quarter to sales about or revenue another customer our to what when include and one that of how -- of lot thinking continue we revenue. our into comes expect sales current is And to sell it existing there we'll continue we'll base, with base. customers overtime but most contracts our product of impacts

a growing customer our even matter more and existing customer as it's So base our [indiscernible]. base we penetrating really and grow customer of our base

Allen Klee

the a or maybe like like provide pipeline now, of of how versus sense any quarter of -- -- gives you you're you a ago Do how ago or of or outlook? sense of type feel on like future deals year you a with thing you that working that of pipeline any that felt qualitative a like

Ramesh Srinivasan

we work don't numbers weekly numbers the Yes and months the Absolutely. a six We through very great to degree to but you that those discuss number do we that discuss just detail exact the idea a there Allen, there definitely to manage just timeframe, pipeline we schedule more more call graph closely, corner our now there up is of say September/October it picked just with lot that, lot turn about is the revenue matter ago. for is a we catches six is and sales no three compared externally. months even just a -- up, go though of and Qualitatively activity, in no us actually give that. in and outside is question has is to to to our qualitative just that than of don't for internally ago about time compared a and to activity had it before really question on beginning there

working have just Asia aider a in bigger working ago. now -- are much U.S. much U.S., say and We with we we are pipeline in pipeline more [ph] definitely now globally, in especially the opportunities definitely more and on a than months six not

Operator

Thank you. And this I'm showing at no further time. questions

remarks. any I return Ramesh So the Mr. like closing would to call to for

Ramesh Srinivasan

for your when you, and in to [ph], you We help XXXX again so the thank And forward as thank you all placed have sincerely Thank afternoon this you us. year look you for us call. fiscal appreciate for always, our Thank results. the with We report with it. full Samra speaking you we much. confidence joining

Operator

have gentlemen, and great you day. today's a and the does conclude may thank in you Ladies Everyone, for This participating program disconnect. all conference.

Agilysys (AGYS) 25 Jan 182018 Q3 Earnings call transcript