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Daegis: Script Of July 28, 2015 Earnings Conference Call

The following excerpt is from the company's SEC filing.

Transcript of

Daegis, Inc.

Fiscal Year 2015 Fourth Quarter Earnings Call


Tim Bacci Chief Executive Officer

Susan Conner Chief Financial Officer



Welcome to the Daegis, Inc. Fiscal 2015 Fourth Quarter and Year End Conference call. During todays presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for your questions. Leading todays call is Daegis CEO, Tim Bacci; and CFO and COO Susan Conner.

The Companys earnings release was issued at 4:00 p.m. Eastern today and is available in the press release section of the companys website at A recording of todays call will be available for replay on the Investor Relations section of the Companys website.

Before we begin the presentation, Daegis would like to remind you that the comments made on todays call may include projections or other forward-looking statements regarding the future operations, opportunities or financial performance of the Company within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

These statements involve a high degree of known and unknown risks and uncertainties, and actual results and circumstances may differ materially from those discussed. Please refer to the risk factors and other disclosures contained in Daegis most recent reports on Forms 10-K, 10-Q, and 8-K filed with the Securities and Exchange Commission for a more detailed discussion of the factors that could materially affect results. The forward-looking statements made during todays conference call are based on the information available as of today, July 28, 2015, and Daegis assumes no obligation to update such statements to reflect events or circumstances after todays date.

In addition to reporting financial results in accordance with the Generally Accepted Accounting Principles, or GAAP, Daegis reports non-GAAP financial results. In the press release is a complete reconciliation of the non-GAAP financial measures to the applicable GAAP measures. Although not a substitute for GAAP presentation, the Company feels the non-GAAP information allows for meaningful year-over-year comparisons and more clearly identifies the actual operating results for the Company. Daegis uses the non-GAAP information internally to monitor its financial performance.

Ill now introduce Daegis CEO, Tim Bacci.

Tim Bacci Chief Executive Officer

Good afternoon and thanks for joining us. Recall on our June 3

conference call, we provided a brief updated specifically pertaining to the cost reductions that were completed and as well as an update on our overall strategy going forward. We also preannounced our revenue for the fourth quarter of $6.1 million as a reminder that represented a 7% increase from our Q3 revenue of $5.7 million. Concurrent with our refocus as an enterprise software company with the Archive as the foundation of our broader information governance initiative, we look at both historical and future use cases that would further enhance the value of our offerings.

The AXS-One Archive is arguably one of only a few true robust enterprise class archives in terms of functionality, ability to host multiple forms of structured and unstructured content and overall scalability. 20% of the Fortune 100 have our Archive installed, these are obviously large companies and household names in financial services, insurance, manufacturing, etc.

On looking back, most of these relationships came through channel partners on the storage side with companies like EMC and StorageTek, the latter was subsequentially acquired by Sun Microsystems. Archiving as a software application sitting on top of storage platforms and arrays is a compelling use case for the OEM storage providers, it requires the same enterprise class offering referenced above. With that, on our fiscal Q3 earnings call last February, we alluding to a couple of significant partnerships that were in the works at the time. Shortly thereafter, there was press releases put forth in Q4 announcing relationships with the storage divisions of both Cisco and Oracle.

These are not simply certification referral agreements. Rather, these are true partnerships to the extent that we are working with the global sales teams with both as their sole archiving provider. This involves training, marketing collateral, and jointly approaching potential customers, so clearly there is a commitment by everyone involved. As we execute on to our go to market plans, expectations with that will begin to see revenue generation with these partners in the latter half of the fiscal year.

Additionally, we announced the partnership with CloudRecover in Sydney, Australia, the first of several service provider relationships that we will be working on. CloudRecover will be hosting and managing a version of our multi-tenant cloud based archive and we will be servicing the Asia-Pac region. Through additional partnerships and process there will be more announcements forthcoming.

As we look forward, we need to do the necessary development work to ensure that the AXS-One Archive remains compatible with newer and emerging technologies such as cloud and object based storage. We also have to be positioned to take advantage of other broad use cases such as analytics, data and email migrations.

So back to our June Investor...