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CSG Systems International (CSGS)
Q3 2013 Earnings Call
October 29, 2013 5:00 pm ET
Liz Bauer - Senior Vice President of Investor Relations and Strategic Communications
Peter E. Kalan - Chief Executive Officer, President and Director
Randy R. Wiese - Chief Financial Officer and Executive Vice President
Mark Sue - RBC Capital Markets, LLC, Research Division
Matthew Van Vliet - Stifel, Nicolaus & Co., Inc., Research Division
Paul B. Thomas - Goldman Sachs Group Inc., Research Division
Sterling P. Auty - JP Morgan Chase & Co, Research Division
Previous Statements by CSGS
» CSG Systems International Management Discusses Q2 2013 Results - Earnings Call Transcript
» CSG Systems International Management Discusses Q1 2013 Results - Earnings Call Transcript
» CSG Systems International Management Discusses 2012 Results - Earnings Call Transcript
Thank you, George, and thanks to everyone for joining us. Today's discussion will contain a number of forward-looking statements. These will include, but are not limited to, statements regarding our projected financial results, our ability to meet our clients' needs through our products, services and performance, and our ability to successfully integrate and manage acquired businesses in order to achieve their expected strategic, operating and financial goals. While these statements reflect our best current judgment, they are subject to risks and uncertainties that could cause our actual results to differ materially.
Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release any revision to these forward-looking statements in light of new or future events.
In addition to factors noted during this call, a more comprehensive discussion of our risk factors can be found in today's press release, as well as our most recently filed 10-K and 10-Q, which are all available in the Investor Relations section of our website.
Also, we will discuss certain financial information that is not prepared in accordance with GAAP. We believe that these non-GAAP financial measures, when reviewed in conjunction with our GAAP financial measures, provide investors with greater transparency to the information used by our management team in our financial and operational decision-making.
For more information regarding our use of non-GAAP financial measures, we refer you to today's earning's release and non-GAAP reconciliation tables on our website, which will also be furnished to the SEC on the Form 8-K.
With me today on the phone are Peter Kalan, our Chief Executive Officer; and Randy Wiese, our Chief Financial Officer.
With that, I'd now like to turn the call over to Peter.
Peter E. Kalan
Thanks, Liz, and thanks to everyone for joining us on today's call.
We had another solid quarter in both revenues and earnings, demonstrating the strength of our business model and our focus on execution. We continue to see strong activity and momentum building in 2 areas that we believe are important to the company's long-term growth: our content monetization platform, which enables providers to compete in an all-digital world; and the expansion of our managed services offerings to our clients around the globe.
Two weeks ago, I had the pleasure of spending time with our European, Middle Eastern and African clients at our EMEA client conference. The conference provided these leaders with the opportunity to discuss their business challenges with us and their peers, as well as brainstorm on new ways to innovate for the future. As we've seen in other regions in the world, our clients are focused on several key issues that need to be addressed in order for them to continue to innovate and win the battle for their customers' loyalty and share of wallet. The first issue that many operators are saying is that their core lines of business, whether that be voice, messaging or video, are challenged to grow. This can be attributed to many factors including new competitors, the rapid rise of the always on, connected mobile world, or just the challenging business environment.
As a result, providers are looking for ways to reduce the investment in these declining or no-growth areas. Many told me that they're not willing to invest in systems that support declining or no-growth businesses, and are redirecting those dollars towards new areas of growth. Others expressed openness to a new way of running functions that were previously considered core by outsourcing those functions to achieve improved operations and cost efficiencies.
Another shared that they are looking at a more staged approach to their investments, in which new services are being developed and treated as a separate stand-alone business in order to provide maximum flexibility to the market and not be encumbered by the processes, technologies and government structures associated with their legacy businesses.
I believe this all bodes well for CSG. While operators around the world spend north of 5% of revenue on their billing and back-office platforms, we have a proven reputation in helping some of the world's leading communication service providers optimize and standardize their existing platforms while continuing to provide a high quality service.
We have a process and a mindset aimed at identifying ways to manage and reduce the costs of system ownership, while continuing to move the business forward. Our 30-year approach to managed services is based on delivering not only enhanced technological and service results, but also an improved bottom line for our clients.
In the U.S., operators have embraced the managed services to offering over the years, and we're doing this for many of the industry's leaders. Overseas, this is a fairly new concept that operators are showing more interest in. This past quarter, we signed 2 more managed services contracts, this time with existing clients: one in EMEA, and one in our Americas region. These contracts expand our relationship from a come-in-and-fix-issues project arrangement, to a multi-year commitment in which we help optimize the operational functionality and efficiencies through our maintenance and management of our solutions. This provides us with a tremendous opportunity to do what we do best: get broader and deeper in our clients' operations by helping them solve problems.