Box, Inc. (NYSE:BOX) Q1 2016 Earnings Conference Call - Final Transcript
Jun 10, 2015 • 05:00 pm ET
First question is from Greg burns with Sidoti. Please go ahead.
Thanks. When we look at the full year guidance for 1% revenue growth, can you just give us your expectations on how that segments have between commercial, government and maybe the solutions practices? It sounds like government's a little soft given the backlog declined, but any kind of color you could give there will be helpful.
Sure. Absolutely. Greg. So, let me start with our international operations. Primarily products but in aggregate, our guidance has a basically a flat year-over-year number, international with some of the uncertainties over there. You know, we have some countries where we're seeing strength and others where there's weakness. So at this point, we have a flat year in international. North America products, we're expecting 6% organic growth in FY16.
And if you look at our services -- North America services business, on the fed side, right now, we have a flat year-over-year number. And in commercial services, it's up approximately 4%, with all that really coming from our solution practices, contribution of about $10 million or 10% growth, another $15 million related to a large managed services client and the core being essentially flat year-to-year.
Okay. When you think about the solutions practices, it sounds like they're going to be projecting them to be up 10% this year, a little slowdown from my guess what they posted in 19% fiscal '15. So is there anything going on there?
Well, it's really primarily driven that slowdown is around our dash business, wireless practice. In the last calendar year, you know, we got out of the gates really well with that business, had great momentum going in. We expanded into the third party care carriers, during the year if you recall. What we really saw is the Tier 1 spending the carriers really turned off the valve in the second half of the year as it relates to funding for dash.
And so while it finished with a very strong year-over-year revenue wise, we have seen decreases in both pipeline and backlog related to that spending, fundamentally from the carriers. We do expect that to normalize back -- in the back half of this calendar year and that's what's built into sort of have modest -- more modest growth in our dash business in, you know, a little over 10% in our Cisco practice.
Got you. Okay. Do you -- how do you feel your -- you're positioned for the cloud. I know that's really where a lot of the market growth is coming from. Have you kind of sorted out how Black Box fits in there from a channel perspective?
Yeah. So, you know, we've talked about our sort of our lack of progress in that area. You are familiar with the realignment of our sales team and how we're going to market In North America. But just for clarity, we have really large -- a large enterprise sales team, focused vertically. And