Black Box Corporation (NASDAQ:BBOX) Q2 2018 Earnings Conference Call - Final Transcript
Oct 31, 2017 • 05:00 pm ET
Good day ladies and gentlemen, and welcome to the Black Box Corporation Second Quarter Fiscal 2018 Financial Results Call. At this time, all participants are in a listen-only mode. (Operator Instructions)
I would now like to introduce your host for today's conference, Mr. Ron Basso, EVP. Sir, please go ahead.
Thank you, very much. Good evening, and welcome to Black Box Corporation's second quarter of fiscal 2018 earnings conference call. With me today are E.C. Sykes, our President and CEO; and Dave Russo, our SVP and CFO. Earlier today, we announced our second quarter fiscal 2018 results by issuing a press release and furnishing it to the SEC on a Form 8-K. We also posted this press release in the Investor Relations section of our website at blackbox.com. In addition to commentary from E.C. and Dave, we have a brief slide presentation supplementing the call. Those slides are also available in the IR section of our website. For those of you 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 schedule 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. Since our last call, we launched the next phase of our transformation journey. Our strategy for growth in intelligent digital edge ecosystem. We are positioning the company to take advantage of this market shift and the transformation we begun six quarters ago is enabling this move. We're very excited about this strategy for many reasons, including that our existing market position and skillsets align very well with this emerging growing market.
We've begun to discuss this important development with some of our constituencies and it has been received well. I believe this is due to the fact that the clients see the connection between our legacy capabilities and our ability to assist in their digital strategy. I will share more on our digital edge story following today's review of our results.
Before I turn the call over to Dave, I'd like to make a few remarks regarding our second quarter results. You might recall that on our last earnings call, I noted our first quarter results were impacted by three separate events. First, our European products group had order management and fulfilment challenges resulting from the cost reduction actions to centralize the European supply chain and back office.
Second, we recognized additional OpEx on our ERP consolidation project that was planned to be deferred. This was not a cost overrun. It was recognizing costs in the current period rather than future periods. The third event involved the timings of bookings and resulting revenue in our commercial services business. We are starting to see very early signs of progress at