ARC Document Solutions, Inc. (NYSE:ARC) Q3 2018 Earnings Conference Call - Final Transcript
Nov 07, 2018 • 05:00 pm ET
Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to the ARC Q3 2018 Earnings Report Conference Call. (Operator Instructions)
David Stickney, VP of IR, you may begin.
Thank you, Josh, and welcome, everyone. On the call with me today are Suri Suriyakumar, our Chairman, President and CEO; Dilo Wijesuriya, our COO; and Jorge Avalos, our CFO.
Our third quarter results for 2018 were publicized earlier today in a press release. The press release and other company materials are available from our IR pages on ARC Document Solutions' website at ir.e-arc.com.
(Forward-Looking Cautionary Statements)
I'll now turn the call over to our Chairman, President and CEO, Suri Suriyakumar. Suri?
Thank you, David, and good afternoon. We are pleased to report another successful quarter and continued progress towards our strategic objectives. As many of you know, our goal has been to protect and even grow our print sales as we develop solutions and a new customer base for our technology services. To many, pursuing growth in what is considered a dying industry may have seemed counterintuitive, but with our long experience in the industry and deep insight into the markets we serve, the potential was obvious despite its inherent challenges. It was this potential that drove our investments in the new equipment that improved the quality of our print offerings while lowering our production costs. Once in place, these resources allowed us to compete more aggressively for traditional print business and enhance our market share.
The size and scope of our service center network drives economies of scale that our smaller competition cannot match. And when coupled with advancements in our existing print technology, ARC has delivered four quarters of sales improvement in print and two quarters of growth in CDIM. We continue to show incremental progress with the changing MPS market. Today, customers have more options than ever before with regard to the equipment and the technology they use to manage their print networks and workflows. To that end, we have added features to Abacus, our print management solution, and released an upgrade that makes it much easier to leverage the cloud, drive work to our service centers for high-volume work, which is unsuited for the average office, and cross-sell a number of other services. These improvements to print services side of our business are not just onetime efforts but instead build on a legacy of innovative thinking that has kept us in the forefront of our industry for decades.
With the year of improvement in the print sales under our belts, we think these efforts and their results are sustainable in the near future and will provide us with continuing opportunity to grow our base in technology. The year-over-year increase in AIM and other technology sales for the quarter is a clear step in the right direction. Our customer base is growing, and we have established a customer council to help us align the needs of