Black Box Corporation (NASDAQ:BBOX) Q3 2017 Earnings Conference Call - Final Transcript
Jan 31, 2017 • 05:00 pm ET
Good day, ladies and gentlemen. And welcome to the Black Box Corporate Third Quarter Fiscal 2017 Financial Results Conference Call. (Operator Instructions). As a reminder, this conference may be recorded. I would like to introduce your host for today's conference, Mr. Ron Basso, Executive Vice President. You may begin.
Thank you. Good evening, and welcome to Black Box Corporation's third quarter of fiscal 2017 earnings conference call. With me today are E.C. Sykes, our President and CEO, Anthony Massetti, our Senior Vice President and CFO, and Tim Huffmyer, our Vice President of Finance.
Earlier today, we announced our third quarter fiscal 2017 results by issuing a press release and furnishing it to the Securities and Exchange Commission on Form 8-K. We also posted this press release in the Investor Relations section of our website, blackbox.com. In addition to commentary from E.C., Anthony and Tim, we have a brief slide presentation supplementing the call. Those slides are also available in the Investor Relations section of our website. For those of who are accessing the webcast, the slides will present on your screen.
(Forward-Looking Cautionary Statements).
On this call and as presented in today's press release, we will discuss some non-GAAP financial measures. Please refer to the schedules that accompanied the press release for a reconciliation of these non-GAAP financial measurements to most directly comparable GAAP financial measurements and other supplemental information.
Now I'd like to turn the call over to E.C.
Thanks Ron. Good evening and thank you for joining us. In the third quarter of fiscal 2017, Black Box continued to make progress on our journey to transform the Company. Although our financial results were mixed, we continued to improve our management systems. This enabled progress in areas within our operational control, such as working capital, cash generation, debt reduction, and operating expense management. Our Q3 total revenue was expected to be impacted in the short term, as a result of the adjustments we've made to our commercial services and product sales organizations. These adjustments were designed to better position us in the market.
In addition, we continued to address the issues of the UCC market decline. The revenue results for Q3 were below our internal forecasts and are disappointing. As we discussed in last quarter's call, it will take some time for improved revenue results to flow through the financials, given our typical nine-month to 18-month sales cycle. Our lower operating expenses in the quarter reflected our recent reorganization and continued actions to leverage the benefits of our consolidated business structure. Although the structural decreases in our core OpEx were not enough to overcome the Q3 revenue shortfall, we continue to strengthen the balance sheet resulting in solid positive cash flow, continuing improvement of our working capital, and decreasing long-term debt.
Overall, I'm pleased with the progress and the structural changes that we are making to reshape how we operate and deliver value to our clients. I'll show more after our financial update from Anthony and Tim. First, we will