Fiserv (NASDAQ:FISV) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Thomas J. Hirsch – EVP, CFO and Treasurer: David, can I ask you a question before you ask us a question?
David Togut – Evercore Partners: Sure.
Thomas J. Hirsch – EVP, CFO and Treasurer: Did you hear me talk about guidance?
David Togut – Evercore Partners: I apologize because I was actually joining the call late from another call that was occurring at the same time.
Thomas J. Hirsch – EVP, CFO and Treasurer: We heard that there was some music being played during the guidance. So, what I’d like to do if it’s okay, is go back and re-read the guidance section and then we’ll come back to you on the question, if that’s okay. Thank you. So as for guidance, our 2013 growth remains on track including the adjustment for the Club Solutions disposition. We still expect full-year adjusted revenue to increase by more than 10% and that adjusted internal revenue will grow 3% to 4%. Importantly, we expect to see sequential gains in revenue growth throughout the year. We expect adjusted EPS to grow in a range of 15% to 19% or $5.84 to $6.03 per share, which reflects a $0.04 per share impact from the divestiture and that, operating margin will expand between 10 basis points and 50 basis points for the full year. We expect free cash flow per share to increase by at least 18% or greater than $6.55 per share, which has also been adjusted slightly as a result of the divestiture. We feel great about our start to the year and are well positioned to achieve our full year guidance. The Open Solutions integration is going well and we see additional opportunities to unlock value beyond what we identified at the time of the acquisition. We expect the combination of sequential quarterly growth and meaningful strategic progress to provide momentum this year and into 2014. Last, but never least, we thank our 21,000 associates around the world who are committed to enabling success for our clients each and every day. So thank you for allowing us to re-go through that. So David, are you still on?
David Togut – Evercore Partners: Yes. I am, Jeff. Just to start if off, again I apologize if you addressed this in your opening remarks, but staying with 3% to 4% organic growth outlook for the year despite sort of a flattish start in Q1. What gives you so much conviction that you can get up to that level particularly after a disappointing fourth quarter as well?
Jeffery W. Yabuki – President and CEO: That’s a great question. Let me go through that. We have five or six areas we see that are going to drive our growth for the remainder of the year. The first is really around onboarding our significant bill payment wins and you could see that start to show up in the transaction volume in both bill payment and in e-bill this quarter. As I mentioned, we had TD that went online towards the end of the first quarter, and we actually have large installs coming in each quarter of the year from wins last year, as well as actually a couple from the prior year. So, we are quite excited to have those go live. And then of course as we announced at the end of last year we have wells going on in the first quarter ’14 but that will continue that momentum forward. The second area is really continuing strength in payments. As we’ve talked about we had strong results in debit. So, in the card business we are seeing some acceleration in our CashEdge oriented products. We talked about Instant Payments and Popmoney. And as I mentioned, we do expect and have a high degree of confidence that our Payment segment growth will average 4% to 8% for the remainder of the year well within our long-term outlook. The next item is really around digital. As I mentioned we had good success 90 new mobile sales in the quarter. We still have several 100 institutions in backlog. The growth in ASP subscribers has been higher than we thought it would be and continues to be strong over 1 million at the end of the quarter. We actually have a couple of large online banking customers coming online in the middle of the year those are deals that at least one of we’ve been working on for about 16 months large hosted deals so that will come online and we will start recognizing revenue from there. We also have a new ASP tablet offering that will go live in the middle of the year. Next item is really around current sales. We had a great sales start to the year 25% increase year-over-year and we expect that that will actually turn into revenues sooner, because it’s first quarter sales. Then we’ve got the headwinds that Tom referenced that we identified coming into the year that we knew would work against us. We’ll see that start to dissipate late in the year. So, for all of those reasons, we have a good degree of confidence. Then lastly a little bit tangential, but important, Open Solutions will continue to come on line as we move through the year and we expect to see some more license revenue come in there and we also expect to see some revenue synergies come on line. So, those are the reasons why we’re confident. We know that the fourth quarter last year was not where we wanted it to be, but it was really license revenue based and that part of that was the compare issue that actually impacted us both the last year in the Q4, but Q4 of ’11 was so strong that we actually had bleed into Q1 of 2012 and that worked against us. So, we do have a high degree of confidence. It’s largely around recurring revenue. Our plans this year do not show big ramps in license revenue and so for those reasons we’re actually highly confident in our results for the remainder of the year.
David Togut – Evercore Partners: As a follow-up, what are the largest drivers of the $60 million operational effectiveness target, excluding the Open Solutions cost takeout?
Thomas J. Hirsch – EVP, CFO and Treasurer: Yes. I think, David, overall – this is Tom. I think we continue to make progress in our globalization initiatives as you all know. We continue to drive improvements in our operational structure around our data center infrastructure. Those are probably some of the bigger items that we have there and we have some good pathway over the next several years also. But Open will be an important focus area and I think you may have missed this, but as Jeff indicated earlier the initial view of the synergy benefit, you know we have visibility more, as we sit here today we have to finalize that, but I think we’ve identified more as the work has gotten and do a lot of detail, so we’re pleased about that also.
David Togut – Evercore Partners: Just a quick housekeeping question Tom. Do you have quarter-end share count?
Thomas J. Hirsch – EVP, CFO and Treasurer: Yeah, 133.2 David.
Open Revenues & Sales
David Koning – Baird: My first question is just on the Open revenues and sales, I think this quarter you said acquisition revenues came in about $55 million, should that ramp through the year including – I would guess first of all you just pro rata that into Q2, and it might suggest $80 million or so of (rather than strictures) and still have a full quarter, but is there any real seasonality? I think you said you expect some growth in that through the year.
Thomas J. Hirsch – EVP, CFO and Treasurer: Absolutely Dave, this is Tom. First of all to your point it was a partial quarter, so you do have to do that annualization. Secondly, we are continuing to make a lot of momentum as far as the business goes. As Jeff highlighted, we had five new DNA sales in the quarter the pipeline continues to grow, so we anticipated sequential improvement in that business as the year goes on, as we settle with the integration with the clients and the prospects, et cetera. So, we’re on track, but we did anticipate that with that quarter-over-quarter lift both from a revenue standpoint, and then clearly the synergy benefits, which are going to kick in, largely in the second half of the year and that was factored into our plan.
Jeffery W. Yabuki – President and CEO: I would say the only other – to your question on seasonality Dave. There is some seasonality in that business in that – it tend to be a little bit more license heavy then rest of Fiserv, and therefore their sales to existing clients typically were biased towards the end of the year as institutions have a better handle on their budgets so we would expect to see that as well.
David Koning – Baird: And just my second question is interest expense. I think that was 41 million in Q1. I know there were some moving parts with Open and that being pretty high during that small part of Q1 and Open coming on par with through the quarter. How do you kind of see interest expense normalizing over the next couple of quarters?
Jeffery W. Yabuki – President and CEO: Dave, I don’t we are going to – your question was on interest expense, right, Dave, you led out a little bit early on.
David Koning – Baird: Just kind of wondering after Q1 which had a few moving parts just kind of how we should see that progress through the rest of the year?
Jeffery W. Yabuki – President and CEO: I don’t think it might be slightly down as we continue to pay off little debt but I think it is going to be pretty close to sequentially down very slightly as we through the rest of the year.
David Koning – Baird: Juggling a lot of stuff under your belt that stand up for good growth the rest of the year.
Jeffery W. Yabuki – President and CEO: Thanks.