Welcome!

Agile Computing Authors: William Schmarzo, Elizabeth White, Liz McMillan, Pat Romanski, John Basso

News Feed Item

Alteva Reports First Quarter 2014 Financial Results

PHILADELPHIA, PA -- (Marketwired) -- 05/12/14 -- Alteva, Inc. ("Alteva" or the "Company") (NYSE MKT: ALTV), a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS"), today announced selected financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Financial Results Highlights

  • For the first quarter of 2014, the Company achieved Adjusted EBITDA* of $1.2 million, an improvement from $1.0 million from the same period in 2013; Adjusted EBITDA* included $2.0 million and $3.25 million of income from the Company's O-P investment for the first quarters of 2014 and 2013 respectively;
  • The Company narrowed its operating loss for the first quarter of 2014 to $(2.2) million, as compared to $(4.3) million for the same period in 2013;
  • The Company narrowed its net loss for the first quarter of 2014 to $(0.2) million, as compared to $(0.7) million for the same period in 2013;
  • For the first quarter of 2014, UC revenues increased by 7%, which includes the results of the Syracuse, NY operations that were sold in September 2013, to $4.2 million from $4.0 million for the first quarter of 2013; excluding the Syracuse operations, UC revenues increased 23% for the first quarter of 2014 as compared to the same period in 2013;
  • At the end of the first quarter 2014, there were over 40,000 users on Alteva's hosted platform, which represents an increase of 23% of the installed base compared to the end of first quarter 2013; excluding the seats associated with the divested Syracuse operations, users on Alteva's hosted platform increased 38%;
  • Gross profit margin increased to 59% in the first quarter of 2014 from 51% for the same period in 2013;
  • The Company continues to invest in its UCaaS platform technologies while strengthening its financial position; accordingly the Company has made enhancements to its service offerings to add new mobile applications that seamlessly integrate Alteva's HD voice with Microsoft's Lync Communication services, Google Apps for Business and leading cloud-based CRM applications like Salesforce.com;
  • The Company intends to continue its focus on profitable growth and we expect Adjusted EBITDA* to improve with rationalization of the business model, focused channel growth and business development.

First Quarter 2014 Results

Revenues were $7.5 million in the first quarter of 2014, a decrease of 3% from $7.7 million for the same period in 2013. Revenues increased 5% year-over-year excluding the revenue from the Syracuse operations that were sold in September 2013.

UC revenues were $4.2 million in the first quarter of 2014, an increase of 5% from $4.0 million for the same period in 2013. UC revenues in the first quarter of 2014 increased 23% on a year-over-year basis excluding the revenue from the Syracuse operations, and improved by 8% from the fourth quarter of 2013 on a similar comparison. As a percentage of consolidated revenue, the UC segment contributed approximately 56% of revenues in the first quarter of 2014 as compared with 51% for the same period in 2013. The increase in UC revenues was attributable to the addition of new clients and the increase in services to existing clients. Approximately 86% of first quarter UC revenues were from licenses and services which are expected to be recurring in nature, with the balance of revenues derived from equipment sales for UC customer implementations.

Telephone revenues were $3.3 million in the first quarter of 2014, as compared with $3.8 million for the same period in 2013. The Telephone segment contributed approximately 44% of revenues in the first quarter 2014 as compared with 49% for the same period of 2013. Telephone revenues were slightly lower year-over-year as a result of continued access line losses and decreases in revenue from pooling arrangements. These decreases were partially offset by an increase in access line rates earlier in the year and modest growth in broadband Internet services revenues.

Gross profit increased by 13% to $4.5 million in the first quarter of 2014 from $4.0 million for the same period in 2013. Gross profit as a percentage of revenues was 59% in the first quarter 2014, as compared with 51% for the same period in 2013. The improvement in gross profit primarily reflects the increase in revenues contributed by the UC segment and the Company's ability to leverage its existing infrastructure, and impact of the cost reduction initiatives, which included the sale of the Syracuse operations, and the previously disclosed workforce reduction in the Telephone segment.

Selling, general and administrative ("SG&A") expenses in the first quarter of 2014 were $5.8 million, as compared with $7.2 million for the same period in 2013. The $1.4 million, or 19%, decrease in SG&A expenses was primarily associated with a reduction in wages, including the impact from the restructuring of the Telephone segment in the second quarter of 2013, the sale of the Syracuse operations, severance charges in the first quarter of 2013, and other expense management initiatives implemented throughout the year.

Total other income for the first quarters of 2014 and 2013 was $1.9 million and $3.1 million, respectively. Other income included the income from the Company's equity investment in the O-P partnership in the first quarters of 2014 and 2013 of $2.0 million and $3.25 million, respectively. In 2013, the Company received guaranteed annual distributions of $13 million. In 2014, in accordance with to the O-P agreement, the guaranteed distribution levels stopped and the Company will receive income from the equity investment only for its ownership share of 8.108% of the O-P's net income.

For the first quarter of 2014, the Company had an income tax benefit of $58,000, or 19% of loss before income taxes, as compared to an income tax benefit of $0.5 million, or 43% of loss before income taxes, for the first quarter of 2013. The estimated effective tax rate for each period includes projections of tax expense on the expected change in our valuation allowance for deferred tax assets. The decrease in the effective tax rate is due to the expected increase in the valuation allowance for deferred tax assets reducing the overall tax benefit recorded for the period ended March 31, 2014.

For the first quarter of 2014, the Company's net loss was $(0.2) million, as compared to a net loss of $(0.7) million for the same period of 2013.

Basic and diluted net loss per share was $(0.04) for the first quarter of 2014, as compared with basic and diluted net loss per share of $(0.12) in the same period of the prior year.

O-P Partnership

On April 30, 2014, the Company announced that, in accordance with its previously announced plans, the Company has exercised the put option to sell its interest in the Orange County-Poughkeepsie Limited Partnership (the "O-P"). The gross proceeds of $50 million, which the Company received on April 30, 2014, will be used to pay taxes on the related gain, repay outstanding senior debt, fund working capital needs and support growth initiatives, including supporting Alteva's current customers and deploying solutions for new customers. After April 30, 2014, the Company will no longer have any interest in the O-P and will no longer receive any income from the O-P.

Conference Call

The Company will conduct a conference call to discuss first quarter results on Tuesday, May 13, 2014 at 10:00 a.m. eastern. Investors and other interested parties can listen to the call by dialing the participant number of 412-317-6789 or 877-317-6789 (toll free), no access code required, approximately 10 minutes prior to the start of the conference call. A simultaneous webcast of the conference call can be accessed through Alteva's website at www.alteva.com in the Investors section.

A replay of this conference call will also be available by dialing 412-317-0088 or 877-344-7529 (toll free), access code: 10045809, beginning 12:00 p.m. eastern on May 14, 2014 through 9:00 a.m. eastern June 4, 2014, and via the Company's website at www.alteva.com.

About Alteva
Alteva (NYSE MKT: ALTV) is a premier provider of hosted Unified-Communications-as-a-Service ("UCaaS") that significantly enhances business productivity and efficiency. Alteva's UCaaS solution integrates and optimizes best-in-class cloud-based technologies and business applications to deliver a comprehensive voice, video and collaboration service for the office and mobile workforce. Alteva is committed to delivering meaningful value to our customers through a consistent, high quality and unified user experience across multiple devices, platforms and operating systems. These attributes have positioned Alteva as a leading hosted communications provider and the partner of choice for a growing number of business customers nationwide and internationally. To learn more about Alteva, please visit www.alteva.com. You can also follow Alteva on Twitter @AltevaInc or LinkedIn.

*Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted to exclude non-cash stock-based compensation, severance related expense, and nonrecurring charges associated with the disposal of the Syracuse operations. A reconciliation of adjusted EBITDA to net income (loss) can be found at the end of the following tables. Adjusted EBITDA is commonly used by management and investors as an indicator of operating performance and liquidity. Adjusted EBITDA is not considered a measure of financial performance under GAAP and it should not be considered as an alternative to net income (loss), or other financial statement data presented in accordance with GAAP in our consolidated financial statements.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements, without limitation, regarding expectations, beliefs, intentions, growth, profitability, or strategies regarding the future. Alteva intends that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Alteva's actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: expectations of future profitability; general economic and business conditions, both nationally and in the geographic regions in which Alteva operates; industry capacity; demographic changes; technological changes and changes in consumer demand; the successful integration of Alteva's acquired businesses; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; legislative proposals relating to the businesses in which Alteva operates; competition; or the loss of any significant ability to attract and retain qualified personnel. Given these uncertainties, current and prospective investors should be cautioned in their reliance on such forward-looking statements. Except as required by law, Alteva disclaims any obligation to update any such factors or to publicly announce the results of any revision to any of the forward-looking statements contained herein to reflect future events or developments. A more comprehensive discussion of risks, uncertainties, financial reporting restatements, and forward-looking statements may be seen in Alteva's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.

(tables follow)


                                ALTEVA, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                  (in thousands, except per share amounts)

                                                      Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                       2014         2013
                                                   -----------  -----------

Operating revenues
  Unified Communications                           $     4,211  $     3,956
  Telephone                                              3,313        3,784
                                                   -----------  -----------

  Total operating revenues                               7,524        7,740

Operating expenses
    Cost of services and products (exclusive of
     depreciation and amortization expense)
                                                         3,052        3,789
    Selling, general and administration expenses         5,798        7,248
    Depreciation and amortization                          903        1,002
                                                   -----------  -----------

  Total operating expenses                               9,753       12,039
                                                   -----------  -----------

  Operating loss                                        (2,229)      (4,299)

Other income (expense)
  Interest expense                                        (139)        (236)
  Income from equity method investment                   2,040        3,250
  Other income, net                                         21          108
                                                   -----------  -----------

  Total other income                                     1,922        3,122
                                                   -----------  -----------

  Loss before income taxes                                (307)      (1,177)

Income tax benefit                                         (58)        (506)
                                                   -----------  -----------

  Net loss                                                (249)        (671)

Preferred dividends                                          6            6
                                                   -----------  -----------

  Loss applicable to common stock                  $      (255) $      (677)
                                                   ===========  ===========


Basic loss per common share                        $     (0.04) $     (0.12)
                                                   ===========  ===========

Diluted loss per common share                      $     (0.04) $     (0.12)
                                                   ===========  ===========

Weighted average shares of common stock used to
 calculate loss per share:

    Basic (common)                                       6,161        5,751
                                                   ===========  ===========
    Diluted (common)                                     6,161        5,751
                                                   ===========  ===========




                                ALTEVA, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                  (in thousands, except per share amounts)

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------
                                                  (Unaudited)
Assets

Current assets
  Cash and cash equivalents                      $        259  $      1,636
  Trade accounts receivable - net of allowance
   for uncollectibles - $406 and $378 at March
   31, 2014 and December 31, 2013, respectively         3,126         2,836
  Other accounts receivable                               557           480
  Equity method investment                              2,040             -
  Materials and supplies                                  225           237
  Prepaid expenses                                        817           774
  Prepaid income taxes                                    204             -
  Deferred income taxes                                   108           108
                                                 ------------  ------------
Total current assets                                    7,336         6,071
                                                 ------------  ------------

  Property, plant and equipment, net                   13,563        13,837
  Intangibles, net                                      5,644         5,856
  Seat licenses                                         1,736         1,749
  Goodwill                                              9,006         9,006
  Other assets                                            822           744
                                                 ------------  ------------
Total assets                                     $     38,107  $     37,263
                                                 ============  ============

Liabilities and Shareholders' Equity

Current liabilities
  Short-term debt                                $     10,898  $     10,126
  Accounts payable                                      1,354           944
  Advance billing and payments                            334           341
  Accrued taxes                                         1,203         1,692
  Pension and post retirement benefit
   obligations                                            267           267
  Other accrued expenses                                4,200         3,934
                                                 ------------  ------------
Total current liabilities                              18,256        17,304
                                                 ------------  ------------

  Long-term debt                                          404           297
  Deferred income taxes                                   711           649
  Pension and post retirement benefit
   obligations                                          5,929         6,007
                                                 ------------  ------------
Total liabilities                                      25,300        24,257
                                                 ------------  ------------

Commitments and contingencies

Shareholders' equity
  Preferred shares - $100 par value, authorized
   and issued shares of 5; $0.01 par value
   authorized and unissued shares of 10,000;
                                                          500           500
  Common stock - $0.01 par value, authorized
   shares of 10,000 6,862 and 6,971 shares
   issued at March 31, 2014 and December 31,
   2013, respectively
                                                           69            70
  Treasury stock - at cost, 875 and 830 common
   shares at March 31, 2014 and December 31,
   2013, respectively                                  (8,010)       (7,612)
  Additional paid in capital                           13,586        13,279
  Accumulated other comprehensive loss                 (1,288)       (1,436)
  Retained earnings                                     7,950         8,205
                                                 ------------  ------------
Total shareholders' equity                             12,807        13,006
                                                 ------------  ------------
Total liabilities and shareholders' equity       $     38,107  $     37,263
                                                 ============  ============


                                ALTEVA, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (Unaudited)
                               (in thousands)


                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
CASH FLOW FROM OPERATING ACTIVITIES

Net loss                                       $        (249) $        (671)
  Adjustments to reconcile net loss to net
   cash provided by (used in) operating
   activities:
  Depreciation and amortization                          903          1,002
  Stock based compensation expense                       306            218
  Undistributed earnings from equity
   investment                                         (2,040)             -
  Distribution in excess of income from equity
   investments included in net loss                        -         (1,424)
  Other non-cash operating activities                    113            193
Changes in assets and liabilities
  Trade accounts receivable                             (290)           364
  Other assets                                          (473)          (597)
  Accounts payable                                       410            144
  Other accruals and liabilities                        (274)         1,331
                                               -------------  -------------

Net cash (used in) provided by operating
 activities                                           (1,594)           560
                                               -------------  -------------

CASH FLOW FROM INVESTING ACTIVITIES
  Capital expenditures                                   (48)          (176)
  Proceeds from sale of assets                            33              -
  Acquired intangibles                                     -            (58)
  Purchase of seat licenses                                -           (194)
  Distribution in excess of income from equity
   investments                                             -          1,424
                                               -------------  -------------
Net cash (used in) provided by investing
 activities                                              (15)           996
                                               -------------  -------------


CASH FLOW FROM FINANCING ACTIVITIES
  Proceeds from debt                                   1,300         16,273
  Repayment of debt and capital leases                  (664)       (15,845)
  Payment of fees for acquisition of debt                  -           (119)
  Purchase of treasury stock                            (398)           (62)
  Dividends (Common and Preferred)                        (6)        (1,670)
                                               -------------  -------------

Net cash provided by (used in) financing
 activities                                              232         (1,423)
                                               -------------  -------------

Net change in cash and cash equivalents               (1,377)           133

Cash and cash equivalents at beginning of
 period                                                1,636          1,799
                                               -------------  -------------

Cash and cash equivalents at end of period     $         259  $       1,932
                                               =============  =============

Supplemental disclosure of non-cash investing
 activities:
  Acquisition of equipment under capital
   leases                                      $         242  $           -
  Seat licenses acquired but not paid          $         114  $           -


                                ALTEVA, INC.
           RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)
 AS IT IS PRESENTED ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                               (in thousands)


                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
Net loss                                       $        (249) $        (671)
Depreciation and amortization                            903          1,002
Stock-based compensation                                 306            218
Severance related charges                                170            714
Interest expense, net                                    139            236
Income tax benefit                                       (58)          (506)
                                               -------------  -------------
Adjusted EBITDA                                $       1,211  $         993
                                               =============  =============

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.