Q2 2020 Earnings Call

Ladies and gentlemen, thank you for standing by and welcome to the second quarter 2020 earnings conference call at this time. All participants are in a listen-only mode after the speaker presentation. There will be a question-and-answer session to ask a question during the session. You will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press * 0. It is not my pleasure to introduce vice president of investor relations.

into your bank's Global Automotive day

It's platform in the development of new products such as our light remain fully invested as these are the critical to the long-term growth of the company.

I want to call Sanjay.

Thank you Rich and welcome to everyone on the call as you can see from our earnings press release we had a fantastic second quarter we set a record in the first half of the booking signed the two largest contracts in the company's history announced several other important strategic when and delivered Financial results, exceeded most of our guidance Matrix compared to Q2 of fiscal 2019 our total revenue grew 23% and while our gross margin woke up slightly on a non-gaap basis are operating margin improved 31%

Thank you, Andrew. Welcome to

One has recently had an impact on the overall business environment continue to make progress in areas under our control year-over-year Revenue off when he made by strong growth in our connected platform and Professional Services business. These revenue streams have left dependency on autostar compared to the license or edge products. I would connected revenue is only marginally impacted in the near-term by covid-19 because the vast majority of Revenue associated with that business is the amortisation of tetra pack from our balance sheet. The Professional Services growth is leading indicator of future growth in license and connected cloud-connected business because they return the engine work our Engineers are contracted for to bring a new car platform to sop

Existed he bataw margin improved 26% in earnings per share improved 39%

But before I comment further on a strong quarter, I'd like to take a few moments to discuss a topic that is on everyone's mind the impact of the virus on our business and how we are adjusting to it off. It says we're lucky in that across our employee base. We have had only one person positive for the disease and that calling has fully recovered. This is very good news because the first priority for me and my executive team is to ensure the health and safety of our employees. We have created a crisis response team at Leetsdale wage and and it's past with closely monitoring the situation across the world keeping employees informed on the latest development and planning for the necessary actions to protect our employees health and safety as the eventually return to working in our offices.

One the global British efforts are having a positive impact in slowing the spread. It has also resulted in a severe disruption of global economic activity forcing wage businesses to suspend operations, or at a minimum work remotely. We're fortunate that we can have a measure approach to returning to the office because the software company the transition be made to work remotely was smooth and well executed in thermal analysis show that are efficiently as a company has remained the 90% range even most of the companies working remotely are kind of operation have already resume normal activity, which is encouraging as we look to them as a blueprint for the rest of the company.

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For seven as in almost every industry and Company the slowdown in the global economy will have an impact on our business while parents delivered a strong performance for us to get you to based on the recent podcast from third parties. The AutoStart is expected to significantly contract in the near-term before beginning to recover later in the calendar years in response to the forecast. We have been proactive in adjusting our business Mark will elaborate more on the details.