Agilysys Inc. (NASDAQ:AGYS) Q1 2021 Earnings Conference Call - Final Transcript

Good Day, ladies and gentlemen and welcome to the Agilysys Fiscal 2021 First Quarter Conference Call. [Operator Instructions]

I would now like to turn the conference over to Jessica Hennessy, Senior Manager Corporate Strategy and Investor Relations at Agilysys. You may begin.

Thank you, Liz, and good afternoon, everybody. Thank you for joining the Agilysys fiscal 2021 first quarter conference call. We will get started in just a minute with management's comments.

But before doing so, let me read the safe harbor language. Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance.

Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause results to differ materially. Important factors that could cause actual results to differ materially from these in the forward-looking statements include the effect of the COVID-19 pandemic on our business and the success of any measures we have taken or may take in the future in response to the COVID-19 pandemic. And the risks set forth in the Company's reports on Form 10-K and 10-Q and other reports filed with the Securities and Exchange Commission.

With that, I would now like to turn the call over to Mr. Ramesh Srinivasan, President and CEO of Agilysys. Ramesh, please go ahead.

Thank you, Jessica, and good afternoon, good evening, everyone. Welcome to our fiscal 2021 first quarter earnings call. Joining Jessica and me on the call today is Dave Wood, our Chief Financial Officer.

I'm participating in this call from my home base in Las Vegas, while Dave and Jessica are in Atlanta. We hope all of you and your families and colleagues are doing well and staying healthy. I first want to assure you that we have taken every step possible to keep our employees safe and healthy. We've also done our very best using our growing product research and development strength to help our customers with social distancing enabling and other product enhancements and innovation to enable and ensure the safety and comfort of guests visiting their properties.

Before our update, as a reminder, please note that unlike many other organizations, we use the terms revenue and sales to indicate two different business metrics. Revenue is of course recognized revenue based on normal revenue recognition rules, which are standard across public enterprise software companies. We use the term sales, however, to refer to new sale agreements signed with current and new customers for products and services. We measure such sales in terms of net annual contract value of sale agreement signed. We also tend to use the sales, selling activity and bookings to all refer to the same thing, net annual contract value sales. There is a time lag involved in progression from sales to revenue. Some happen relatively quickly, while others, especially those involving subscription based