Transcript of Year End Results Conference Call

Participants
Terri MacInnis, Director of Investor Relations
Randall K. Fields, Chairman and Chief Executive Officer
John R. Merrill, Chief Financial Officer
Jane Hoffer, Chief Operating Officer

Listen to the conference call

Presentation

Operator
Greetings, ladies and gentlemen and welcome to the Park City Group Year End Results Conference Call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Terri MacInnis, Director of Investor Relations. Thank you, Ms. MacInnis, you may begin.

Terri MacInnis – Park City Group, Inc. – Director of Investor Relations
Good afternoon, everyone. Thank you for joining us today for our discussion of Park City Group’s financial results for the fiscal year ended June 2008. I’m Terri MacInnis, Director of Investor Relations of Bibicoff & MacInnis. Joining me this afternoon from Park City Group is Randy Fields, Chairman and CEO; John Merrill, CFO; and Jane Hoffer, COO.

Before we begin, let me remind you that the information presented and discussed today includes forward-looking statements which are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties related to such statements are detailed in our SEC filings.

Today’s call is being recorded and archived. A replay of the call will be available on the investor relations section of the Park City Group website, www.parkcitygroup.com.

On today’s call, Randy Fields will provide some prepared remarks and will then turn the call over to John Merrill. Afterwards, we will open up the call for your questions, which you may direct to either Randy, John, or Jane.

Now, it is my pleasure to turn the call over to Randy Fields, Chief Executive Officer.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
I want to thank everybody for taking time out this afternoon. I know it’s an important day in the market and the world to listen to our year end conference call. Really the topics that we’ll cover today, I suspect, involved not just last year but equally importantly what’s going on in terms of our acquisition of Prescient so we’re fully prepared to talk about that as well. But to kick things off, let me turn it over to our CFO, John Merrill, who’ll give us an outline of what happened in the prior fiscal year. He’ll turn it back to me and I’ll sort of give you what I consider to be the managerial highlights.

John R. Merrill – Park City Group, Inc. – Chief Financial Officer
Thanks, Randy and good afternoon, everyone.

Fiscal 2008 was an exciting year for Park City Group operationally, strategically, and financially. Let me begin my comment by addressing Park City Group’s fiscal 2008 year end results. The year ended June 30, 2008. Our financial results certainly provided a balanced outcome given the challenging macroeconomic conditions both domestically and abroad. Therefore, I’ll take a few moments to focus on some key results that were realized during our last year’s performance. The year ended June 30, 2008, the company reported revenues increased 29% to $3.35 million as compared with $2.59 million for the same period in 2007. When income for patent activities is included which cannot be included in GAAP revenue, total revenue in patent income for the year ended June 30, 2008 was $3.95 million, an increase of 53% over the same period in 2007. Also note that the company experienced significant double and triple digit growth in all of our revenue streams expect for maintenance revenues which were down approximately 4% for fiscal 2008. Growth in subscription revenues, professional services revenues, and license fees for the year end June 30, 2008 was up at 127%, 26%, and 110%, respectively, when compared to revenue results for the same period in 2007.

Shifting to our operating expenditures for fiscal 2008, operating expenses were $6.8 million for the year ended June 30, 2008, an increase of 21% when compared to the $5.6 million in the same period in 2007. Increases in operating expenses were the result of the completion of three major projects in fiscal 2007 in which those R&D costs that were capitalized in June 30, 2007 in accordance with FAS 86 for approximately $341,000 were recognized as cost of services and product support expense in the same period in 2008, new hires and recruitment fees for three developers and higher database consulting and architecture fees, $247,000 in legal fees associated with patent defense, higher commissions and other sales compensation based on contractual obligations, and increases in public and investor relation fees. When comparing normalized expenses which includes the qualified capitalization of certain cost during development and associated amortization of those cost, the normalized operating expenses for the year ended June 30, 2008 were $6.3 million when compared to $5.6 million in the same period in 2007, a normalized annual increase of 8.6%.

On a GAAP basis, sequential operating expenses for the fourth quarter of fiscal 2008 are down approximately $239,000 or 14% when compared to Q3 of fiscal 2008. This sequential reduction in operating expenses with the result of lower professional fees, a reduction in total G&A cost, and reduced sales and marketing cost for fourth quarter when compared to third quarter of fiscal 2008.

Moving on to a key metric used by management. From management’s prospective, EBITDA and non GAAP metric is an important indicator for us. Management uses an adjusted EBITDA approach to self-evaluate its operating performance. EBITDA is defined and measured as operating income or loss from operations plus income from patent activities which cannot be included in GAAP revenue and, of course, the addition of depreciation amortization. In the year ended June 30, 2008, EBITDA loss improved $247,000 or 10% total loss of $2.39 million when compared to EBITDA loss of $2.64 million for the year ended in fiscal 2007. On a GAAP basis, the company reported a net loss of $2.87 million for the year ended June 30, 2008 when compared to a net loss of over $3 million for fiscal 2007 or 5% improvement. After dividend to preferred shareholders, Park City Group reported a net loss of applicable to common shareholders of $3.2 million or a loss of $0.35 per share in 2008, when compared to a $3 million loss or $0.34 loss per share for the same period of 2007.

At this point, I will turn the call back over to Randy to discuss and answer any other questions.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Thank you, John.

A little commentary on last year, what went right, what didn’t go as well as we had planned. I think the most interesting statistic that internally we’ve look at is that over the two years that we sought to go from a licensing base model to a reoccurring revenue model, we got to the point that last year more than half of our revenues could be characterized as subscription or recurring. The goal is, I think those of you who have been shareholders for some time know we want to get to the maximum level of sustainable recurring revenue that we possibly can, obviously, as quickly as we can. We’ll talk about that in a minute in terms of what the acquisition at Prescient does to that business model and we think it has an extremely high impact that shareholder should be very pleased with. So we’ve made very significant progress in that regard. We certainly achieved our goals in terms of the sorts of customers that we we’re focused on. To those of you who remember in previous calls, we shifted our focus from working with relatively smaller retail retailers to the largest retailers for our new Supply Chain Profit Link offering. I would say that on balance we had pretty good success not as much as we would like, I will explain that in a minute, and that each of those customers that we’ve taken on from the Supply Chain Profit Link prospective have the opportunity to produce individually very, very significant ongoing recurring revenue streams.

I would say that on the (inaudible) side of what we didn’t accomplish last year, I think we fell short in my estimation of our ability to appropriately, administratively, and technologically on board our customers, the time delay from when a customer says they want to get started with us until we’re actually able to get their data integrated, schedule meetings, contractual things, that sort of stuff, continues to dog us. I think over time and especially given the Prescient capability, I think we’ll see that improve. It’s certainly something that last year as we look back on last fiscal year, it was a source of ongoing frustration.

I think the other things that went well last year in particular, we achieved with every customer that we have looked at on a category basis, we have been successful at finding very significant economic opportunity. I was impressed with the fact that in many cases on the trial basis of our Supply Chain Profit Link offering, we were looking at categories that range from the highly perishable areas of things like ground meat or produce or bakery items, all the way through to detergent and cat litter and frozen items and the dairy case, so we’ve now have the, I think, interesting opportunity to see how broadly the Supply Chain Profit Link offering could apply and compared to where we were a year ago, I have certainly increased confidence that the ability that the team and our technology has to uncover increase sales opportunities, decreased out of stocks, reduction in shrink; in other words, terrific economic opportunity for our retail customers and our supplier customers is substantially enhanced over where I guess it would’ve been at this point in time.

I think as we take a look at the current situation in the market and in particular what Prescient bring to us, we believe there is a very interesting opportunity here to continue doing just what we’re doing with the Supply Chain Profit Link offering. I think one doesn’t have to be a rocket scientist to take a look at the economic environment and recognize that supermarkets, although there are very defensive, that is to say people still have to eat, are obviously concerned with their inventory levels, are concerned with maximizing the sales that they can get from their inventory, and certainly are interested in reducing their cost. That speaks to the core of our business. Our business is helping retailers and their suppliers improve their profitability through efficiencies on their inventory and labor side. So the fact of the matter is, I think we’re actually well positioned in the current economic environment and to this point in time, we haven’t seen any impact from retailers unwilling to talk with us about what the opportunities in fact might be.

Looking ahead, our company is about to change very significantly and if you could bear us a few minutes of discussion to talk about what that new company is going to look like. The acquisition of Prescient does a number of things that benefit the Park City Group shareholders and significantly benefit both of the employees of the company as we come together. Let me speak to those, because I think that the ultimate impact for the shareholders should be beneficial to say the least. We get an immediate positive impact to our EBITDA. When you put two the companies together, there are a number of redundancies that have already been taken care of and eliminated. There are public company expenses on both sides that are obviously not going to be needed for Prescient going forward. There is a series of relatively high costings that become absorbed simply between the two businesses and better distributed and the combined volumes of the business. If you simply look historically and put the two numbers together, our run rate goes from something below $4 million a year to now on a combined basis last year over $12 million of revenue. Interestingly, if you take a look at what that does to our plan to become a recurring revenue business, of that $12 million, nearly 73%, looking back last year, was a recurring revenue base. So basically with one bold stroke, we moved the business to where we could’ve been in two to three years on our own, but this moves the timeline in very, very quickly.

In addition, given the strategy of approaching the largest supermarket chains in the US, the combination of these two businesses will now have business relationships with seven of the top 10 U.S. retailers. We get a tremendous strengthening of our management team, Jane and her team has already done the integration work. There is a very well thought out, carefully designed integration plan which is in the process of being executed even prior to the completion of the transaction. For example, Jane has been named as the Chief Operating Officer now of both businesses. The various management slots of the two companies have now been combined and it’s about a 50/50 split of Park City Group people and Prescient people who are in the key management roles. I think there is an interesting… for those of you who I talked to before, often in an acquisition it’s very easy to see what I call the upsides, but frequently, companies when a deal is done fail to see whether or not the downside, the weaknesses of each of the two businesses, is one that becomes multiplicative or one that disappears as a result of the combination. And in our case, the negatives I think are highly complementary and basically will be eliminated through the combination of the two businesses. Park City Group for those of you who have been following us know that we’ve been spending a substantial amount of money and effort in order to build the infrastructural teams necessary to on board client, get this kind of work, I’ve talked about it delayed us last year, but think of it as infrastructural source of people on the data processing side and on the services side to get our customers up and running as quickly as we can. The fact of the matter is Prescient has a fabulous team of people and a terrific technology base that will very substantially expedite the process that we’ve struggled with. Adversely, our prescient has found over time that the purchasers of the kinds of services that they offer, we’ll talk about those in a minute, have changed from sort of technical purchasers and lower level business purchasers to the sea level kinds of people that exist in the retail world and it turns out Park City Group, as you know, is a company that is from the director level and from the management level very well connected to sea level individuals in the retail industry. So we bring access to the customer base and then finally if… not finally but certainly in addition, if you take a look at the total customer base from a cross selling and up selling capability, the real excitement begins. We go from having, in the case of Park City Group, a dozen or two retail customers to now several dozens, almost 50 retailers that are potential targets for what we do and they’re already doing business with one of the two firms and from fewer than 50 to more than 600 suppliers supplying retail. So we suddenly have, I hate to use the term, but it’s true, we really do now have critical mass. So not only is there an immediate EBITDA change of a very positive nature, by virtue of simply the cost cutting opportunities that frankly have already taken placed, the rest of which will take place as the transaction closes and the public company costs evaporate, and a few leases run out etc., but not only are there millions of dollars of EBITDA improvement from cost cutting but we believe that the cross selling opportunities between the two businesses is the Faberge egg that we found in that little Easter basket as we approached the acquisition.

So, we are very very excited about the opportunity. This is I think a case where there are some tremendous synergies, again using an overused term, between the two businesses. But I think it’s important to note that we’ve already begun the integration process and the kinds of numbers and cost cutting, etc. will begin to show up in the quarter that we’ve just entered as you look at it on a pro forma basis.

So I’m honored to have Jane join the team and her team. We have spent an enormous amount of time already integrating the sales organizations, the customer service organizations, (inaudible) organizations and frankly, at this point, with far fewer hiccups or problems that I think either of us could have anticipated.

So, I think with that, let me open it up at this point to questions and Jane is here to add any commentary you like to ask from her perspective, but I think that we’re all going to be excited by what the Prescient opportunity brings to the table.

Operator
Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. One moment please while we pool for questions.

Our first question comes from the line of Nick Falcone (ph) with Southland Investment. Please go ahead.

Nick Falcone (ph) – Southland Investment
This question is for anyone. What milestone should we look for to measure your progress?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Thank you. If somebody hadn’t asked that question I probably would have sort of teed it up. I think, let me describe timelines and milestones together. During this first quarter, it’s mostly going to show up as cost reductions. In other words, in the quarter that ends in December, I think you’ll begin to see very significant reductions in run costs of the businesses that will be the first milestone. In the second quarter, we’re staying on our fiscal year of June 30 by the way, in the second quarter which would end in March, I would anticipate that you’ll begin to see some increases on the subscription revenue side. I think you’ll see a few successes on the cross selling side of the business which we’ll note as they occur and again continued reduction in expenses. By the final quarter of the fiscal year, the second quarter of the calendar year 2009, we should be hitting on all cylinders. In other words, we’re really allowing ourselves about six months or so for full integration. These are two different businesses that are being brought together and I think before we can be hitting on all cylinders, we should allow ourselves about six months. So, I think for the year that we’re in, you will definitely have a milestone of a significantly changed EBITDA compared to the prior year. I think you’ll be able to measure that quart by quarter and we would expect to see growth in the subscription business, between the two businesses, I think beginning in the quarter that ends in March; in other words, the second quarter from now.

Nick Falcone (ph) – Southland Investment
Okay. Thank you very much.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
You bet.

Operator
Thank you. Our next question is from the line of Howard Halpern with Taglich Brothers. Please go ahead.

Howard Halpern – Taglich Brothers
Good afternoon, guys.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Hi, Howard.

Howard Halpern – Taglich Brothers
Hi. I’ll start prior to the acquisition and look at the current year end. In the deferred revenue, that jumped up to $480,000. How much of that deferred revenue is from the subscription, the Supply Chain Profit Link?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
About 70%, Howard.

Howard Halpern – Taglich Brothers
70%, okay.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
And that will also happen in the quarter that we’ve just entered as well.

Howard Halpern – Taglich Brothers
Okay. So that provides… of that 70% of that 480,000, how many actual paying categories do you have?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Let’s seem. The total, we don’t break it down publicly by paying categories yet. I think we probably begin to that soon.

Howard Halpern – Taglich Brothers
Okay.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
But, the number of categories that we are looking at continues to grow. The number of retailers that we’re working with paid and trial continues to grow. And the piece that’s going slower that we would like is the on boarding of the customer and this has dogged us from the beginning and it’s causing me to lose what few remaining hairs I have. This is from the moment the retailers say, “Yes. Great. I like this. You show me substantial opportunity. Let’s get going.” until we get the contracts signed, get all the data flowing, etc. is still taking four to five months and I personally cannot understand why that can’t be shortened to two or three months from where we are. Jane and her team are used to doing this in that period of time. This is their business of Scan-Based Trading and frankly, we need some help in this. We just obviously aren’t getting any better at it, but I think Jane can help. Peace (ph), Howard, but I think people should be focused on in the current environment and it will take a little bit of shift in the marketing strategy between our companies but this is a very interesting world for a service that we now perform as a joint company that’s called Scan-Based Trading. And I’m going to turn it over to Jane because it think once you see what this potentially does for our retailer in the current credit world, you can see why we want to shift some emphasis to this part of the product suite.

Howard Halpern – Taglich Brothers
Okay, I’ll be interested to hear that.

Jane Hoffer – Park City Group, Inc. – Chief Operating Officer
Hi, Howard, this is Jane.

Howard Halpern – Taglich Brothers
Hi.

Jane Hoffer – Park City Group, Inc. – Chief Operating Officer
Hi. One of the solution offerings that have been a majority of the revenues and quite frankly, its considerable amount of profitability of Prescient has been the offering that Randy mentioned called Scan-Based Trading. And what Scan-Based Trading enables and Prescient provides is really the financial transaction engine that allows the movement of inventory from the books of the retailer to that of the supplier. Supplier being the one that holds the inventory until it actually scans that register. So Prescient provides the solution that actually monitors the daily transactions. It determines whether or not it’s a legitimate transaction for a product at the store, looks at what the agreed upon price that should be paid to the supplier for that transaction, and actually generate the transaction to adjudicate and create the receivables and payable transactions for both the retailer and the supplier, where the trusted third party to do this by many as Randy mentioned earlier many of the largest grocery retailers who have this programs and we transact about $100 million worth of product at retail cost, not at retail price to the consumer, through our engine every month, a very substantial amount of inventories that have been transferred in that process. So in this economic time where retailers are trying to reduce the amount of inventory that is tied up, their working capital tied up in inventory as they look at the credit crunch and so on. This is a tremendous opportunity for us to be positioning Scan-Based Trading as something that helps eliminate or alleviate that inventory cost for retailers. Many of the retailers that we’re targeting and that we’re working with, Super Value being the largest, as you know has a very high debt burden based upon the buyout that they’ve done of Albertsons. So this is critical in their list of things to do to transferring and to reduce their inventory investment.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
If you were to think of the 5, 6, 7, 8, or 10 supermarket chains that have been purchased by private equity and combined the two offerings of Park City Group and Prescient, you get a very interesting product combination that has the following characteristics. As we help a customer go to Scan-Based Trading on the retail side, we’ll relieved their inventory burden shifted primarily to the supplier, you couple that with Supply Chain Profit Link which has been truly brilliant in identifying out-of-stock and lost sales opportunities. So now, you put those two things together and what you can to a supplier is, yes, the burden of the inventory is shifting to you, but we’re going to help both you and the retailer identify out-of-stock and lost sales opportunities so that you will get higher sales and in fact from your P&L perspective, you should see substantial improvement. Meanwhile, the credit squeeze opportunity should help push retailers in our direction.

Howard Halpern – Taglich Brothers
Okay. I mean, this might be a question that’s too soon to answer, but I know in the past you’ve talked about the retailer and then the supplier, you know, that type of relationship. Now, on the supplier, especially maybe the smaller type supplier, is that going to get kind of tweaked a little bit now because of the credit crunch on more of the supplier end of the business or is that really too soon to tell?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
I think there’re inherently two different questions on what you asked. So let me try and answer both. If the question is are suppliers reluctant to pay for anything because of the economic situation? The answer is yes, but the truth is they always are reluctant to pay just as retailers are. But at the end of the day, the power lies with the retail trade and to the extent that we demonstrate as we have economic value to the supplier by reducing out-of-stocks, increasing his sales, its pretty easily cost justified. It might be a little tough at first to swallow but once they see what we can do, then it’s an easier pill to swallow.

Howard Halpern – Taglich Brothers
This should also help with the Source Interlink relationship that you’ve been developing also?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Bingo, they already do business. Prescient been doing business with Source, the whole magazine thing, I think I mentioned, is one of those, its not a technological problems so much as its what I call a political problem because it has a very complex supply chain. We continue to talk with all of the participants and it’s moving slowly but ever.

Howard Halpern – Taglich Brothers
Okay. I guess…

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
But in our direction, but this definitely helps. In fact it’s interesting. We were having a conversation with one of the foreign national distributors in the magazine world about two months ago and they literally said, “You know what probably help you guys move this along, there’s company called Prescient. Why don’t you just buy them and then we’ll all have more confidence that you can get the retail data.” I said, “Well, that’s a good idea. We’ll file it on under gee whiz.”

Howard Halpern – Taglich Brothers
Okay. I was doing a little bit of my homework on here one I guess, I don’t know if it’s a concern or just let you answer the question was the first six months of Prescient’s revenues and EBITDA sort of dipped in the same point the last year.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Yes.

Howard Halpern – Taglich Brothers
Was that a one off or if you can just provide an explanation maybe.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
It’s basically a one off. They had a large account called AutoZone and frankly, we neutrally considered that to be an off strategy and the reason was that the real low hanging fruit here in the world is in the supermarket industry which is highly defensive and the suppliers to the supermarket world. And although it was a large account, it paid well, this is just not a strategy that’s well executed in that domain. So kind of it’s a one time and as the loss of that account runs through the P&L; on the other hand, they’re now making up for it in terms of other new business. So the year-over-year comps by the first quarter of the new calendar year and we can’t tell you which fiscal year that will fall in for Prescient will start to show positive comps again.

Howard Halpern – Taglich Brothers
Okay. And one final question and this, I guess, maybe goes under the category of milestone as we look at. One year out after everything is closed and you’re one combined unit, what type of operating margins would you hope that you can achieve?

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Well, the business model really hasn’t change, so if you make the assumption that this is a largely fixed cost business, low variable, the way do it and once we’re over breakeven, you’re looking at 80%+ contribution margins and its fair to say that you will see expenses fall over the next two fiscal years and John uses a word that I like, call it mechanically. In another words, we had a number of personnel redundancies, so last month there was about 20% to 23% headcount reduction across the two businesses that’s already been done. There is another $0.75 million of public company expenses that Prescient has historically had once this deal is closed. That $0.75 million goes away. There are leases that run out on facilities over the next two years that are just again just mechanical because of multiple locations that become redundant. Data center cost get consolidated. Maintenance of certain kinds of software that were redundant and so on and so forth. In other words, the tough decisions in terms of integration and cost reduction have already been made and frankly executed. The rest is just the run offs, so you could expect interestingly over the next two years even as we anticipate a revenue growth primarily from internal cross selling, we are anticipating internally that expenses will continue to fall.

Howard Halpern – Taglich Brothers
Okay. Well, I’ll look forward to the completion of the…

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Yes, so I mean you pretty much figure that the run rate of the two businesses combined last year is already down very significantly. And that we’re now talking about a business that has better scale, better economies, and let me again, in interest of full disclosure, give you the tough part of this. As I look at this in terms of my own feelings about the difficulty of integrating the businesses, they have gone far smoother and this is mostly a testament to Jane and her planning work and what she has executed and put together a wonderful plan for integration. The two teams worked together very well. I think the remaining piece which is problematic, we have no answer for it, is something that’s as simple as what’s the name.

Howard Halpern – Taglich Brothers
Okay.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
And we recognize and here is the interesting problem, both Park City Group and Prescient have brand equity. And yet we want this ultimately to be perceived as one business, one point of contact, one account manager, and so on and so forth. And the question is how do you say, by the way, you’ve been doing business with me as Prescient, we do this amazing Scan-Based Trading for you, but why don’t we take a really deep look at whether or not you’ve got an out-of-stock problem or shrink problem, if we can’t improve your sales and that product is called Supply Chain Profit Link and it’s offered by, is it our sister company, Park City Group, how’s that explained. So we think there is one of those I just hate to have to deal with is, the naming problem from a marketing prospective. We have no good answers about that whatsoever.

Howard Halpern – Taglich Brothers
Maybe just the first three initials of Park City and make it Prescient, PCG Prescient, something like that.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Something, yes.

Howard Halpern – Taglich Brothers
Okay.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Somebody said it can’t be Park City Prescient because that becomes PCP, which …

Howard Halpern – Taglich Brothers
No.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Not such a good idea.

Howard Halpern – Taglich Brothers
Okay. Well, I look forward to the completion and keep up the good work.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Okay. Thanks, Howard.

Any other additional questions?

Operator
As a reminder, if you would like to ask a question, please press *1 on your telephone keypad.

There are no further questions in the queue at this time. I’d like to turn it back over to Mr. Fields for any closing comments.

Randall K. Fields – Park City Group, Inc. – Chairman and Chief Executive Officer
Again, I appreciate given the difficult day this has been and an interesting week of taking your time out this afternoon. I think you all know how to reach me. Feel free to shoot me an email or give me a call and we’ll get back to you as soon as we can. We’re excited about how this is going. I think if there’s one last thing that I want to emphasize is we are not waiting for a deal closing per se, for the proxy, and the whole SEC process which could take another month or two months, we don’t know. We don’t have any control over that. We are fully integrating these businesses today, new bosses have been assigned, the redundant personnel are already gone, and the magic scalpel with which John has been so effective at keeping cost down in Park City Group is being applied across the business, so this is happening. This is not a futurist thing; this is a right now thing.

Well, thank you all for taking your time. Talk to you soon.

Operator
Thank you. Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.


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