Below is an excerpt from Suri Suriyakumar's comments during the Q3 2016 Earnings Call for ARC Document Solutions. To read the whole transcript, click here: http://seekingalpha.com/article/4018590-arc-document-solutions-arc-ceo-suri-suriyakumar-q3-2016-results-earnings-call-transcript?page=2
As you can see from our earnings release this afternoon, the third quarter was a tough one for us. As I had stated previously in our release, given our revised guidance earlier in the year and the transformation we are going through, this is not unexpected. From the beginning of the year, we have consistently maintained that we need 24 to 36 months to implement the changes required to put the company back on the growth track.
That is exactly where our focus has been making the required changes to our sales and operations teams, to accelerate our growth in our new offering, in technology services while protecting our revenues in the print segment. Revenues in the print segment of our business are continuing to shrink and we aware of that. However, our size and strength in this business, a greater focus on gaining market changes segment, will allow us to minimize the decline and generate additional sales while we build our new technology services placements.
While revenue declines in the third quarter were largely driven by our print based services, they are mainly due to the changes we've been making to transform the company. These changes have caused disruptions both in sales and operations.
Transforming from a traditional print business to a technology services business is the challenge. In the past our revenue growth has been driven largely by acquisitions. Today, we’re looking for organic growth to accelerate our revenues.
Additionally, our sales in the past were mostly transactional in nature while today they are consultative in nature. As a result, we are reconfiguring the sales organization by assigning new roles, shifting responsibilities and creating better alignment between our sales force and our product lines. These changes are having wide ranging and overall significance on our organizational structure and behavior and they are disturbing established patterns and expectations. But they are necessary for us to capitalize on our potential. With legacy services like ours, we cannot disrupt our customers without disrupting ourselves first.
Read more here: http://seekingalpha.com/article/4018590-arc-document-solutions-arc-ceo-suri-suriyakumar-q3-2016-results-earnings-call-transcript?page=2