Q : What gives you confidence that POS sales trends will improve in the coming quarters? A : Ramesh Srinivasan, President & CEO: Our confidence is based on the pipeline of sales opportunities, which is 22% higher for POS compared to last year. We are working on significant POS sales opportunities, and Q1 was the low point, with improvements expected in the coming quarters.

Q : Can you discuss the focus on new customer acquisition and any changes in sales strategy? A : Ramesh Srinivasan, President & CEO: We are focusing on ensuring full territory coverage and expanding the sales team, especially in hotels and resorts. There is room for growth with the current sales team, and we are working on creating more referenceable customers with the newer versions of our products.

Q : How should we think about gross margins and professional services growth moving forward? A : Dave Wood, CFO: Gross margins are expected to continue expanding incrementally, likely growing a point or two from the current 62-63%. Professional services growth should align with top-line revenue growth, around 15-20%, once onetime anomalies are accounted for.

Q : Can you clarify the 70% year-over-year increase mentioned in the call? A : Ramesh Srinivasan, President & CEO: The 70% increase refers to sales of PMS and related modules in Q3 compared to last year, excluding Book4Time. This is due to additional signings with new customers who didn't have our PMS products before.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .