Exhibit

“We are encouraged with our performance in the first quarter of 2017 and believe that it provides a solid base for the remainder of the year,” said Vincent D. Kelly, chief executive officer. “We posted the largest first quarter software bookings result in our history and saw strong year-over-year performance in a number of other key operating measures, including average deal size, number of new logo deals, backlog levels, as well as wireless subscriber retention. We achieved these results, as we increased our investment in our business by enhancing and upgrading our product development team and tools, as well as our sales infrastructure and management. As we have previously outlined, while these investments will lower our margins over the next several years, we believe this effort will yield significant future benefits in the form of our improved, integrated communication platform, Spok Care Connect®, as well as higher future bookings levels, and ultimately margins, supported by our enhanced and upgraded sales team. Overall, we continued to operate profitably, enhance our product offerings, and operate as a debt-free company. We also executed against our capital allocation strategy, by continuing to make key strategic investments in our business while returning cash to our stockholders during the quarter in the form of dividends.”

Kelly said first quarter bookings of $19.8 million included record highs for both operations and maintenance, while the software backlog of $40.6 million at March 31^st was up more than 10 percent from the prior year quarter. “We will continue to focus on generating activity through the remainder of the year and are encouraged as bookings included sales to both new and current customers, with existing customers adding products and applications to expand their portfolio of communications solutions. Customer demand remained strongest for upgrades to call center solutions, healthcare applications to increase patient safety, and improved nursing workflows.” Kelly added: “We continue to see growing demand for our software solutions for smartphone communications, secure texting, emergency management, and clinical alerting.”

Kelly noted that in addition to the Company’s quarterly financial performance, progress was made in several other areas, including product development, sales strategy and key strategic partnership agreements. “Spok continues to build an industry-leading reputation, and is generating sales momentum at the conferences we attend,” commented Kelly. “During the quarter, we generated tremendous activity from tradeshows and positioned Spok as a thought-leader in our industry. At the American Organization of Nurse Executives (AONE) conference, our chief nursing officer hosted a focus group to discuss nursing challenges in the current healthcare environment. We also continue to benefit from the leads generated at the 2017 HIMSS Annual Conference that we attended in late February. Our sales teams intend to carry the momentum generated at these conferences and tradeshows throughout 2017. The combination of Spok’s strong team, solid financial base and industry-leading products and services, positions us to capture the opportunity in our chosen markets and stimulate sustainable growth.”

result, annual net pager losses declined to an historical low of 5.4 percent, on a twelve-month trailing basis, and were 1.8 percent in the first quarter, in-line with the prior-year quarter,” continued Kelly. “Overall, wireless sales efforts continued to focus primarily on our core market segments of Healthcare, Government and Large Enterprise, which represented approximately 92.3 percent of our subscriber base and 90.5 percent of our paging revenue at quarter end. Healthcare comprised 79.7 percent of our subscriber base, and continued to be our best performing market segment with the highest rate of gross placements and lowest rate of unit disconnects.”

Spok returned capital to stockholders, totaling $7.7 million, in the first quarter of 2017. During the period, the Company paid $2.6 million in regular quarterly dividends and $5.1 million in the special dividend that was declared in December 2016 and paid in January 2017. Kelly added, “Throughout 2017, we will remain focused on returning value to our shareholders through our capital allocation strategy, which includes dividends and key strategic investments in our products and business that will create sustainable growth. We continue to evaluate our capital allocation strategy on a quarterly basis and will communicate our plans to you with respect to dividends, potential share repurchases and other uses of capital.”

Late in the first quarter, Spok announced that Michael W. Wallace had joined the Company as its new CFO. He succeeded Shawn E. Endsley in that position, who has continued with the company in the role of Chief Accounting Officer. Wallace brings with him a proven ability to manage the finance function in a rapidly growing and changing environment and implementing strategies for improving revenue and profitability. “I am excited to welcome Mike to Spok’s management team, where he has already had an immediate impact as we continue our transition from a telecom-based wireless company to a software provider that delivers industry-leading unified healthcare communications solutions,” said Kelly. “We are particularly impressed with Mike’s deep experience in medical diagnostic services, software development, digital/interactive marketing and regulatory compliance.”

Commenting on the Company’s previously provided financial guidance for 2017, Wallace noted: “We are pleased that quarterly results were consistent with our expectations and we are maintaining the 2017 guidance range that we provided last quarter.” With regard to financial guidance for 2017, Wallace reiterated that the Company expects total revenue to range from $161 million to $177 million, operating expenses (excluding depreciation, amortization and accretion) to range from $153 million to $159 million, and capital expenditures to range from $8 million to $12 million.

The Company plans to host a conference call for investors to discuss its 2017 first quarter results at 10:00 a.m. ET on Thursday, April 27, 2017. Dial-in numbers for the call are 719-325-2126 or 800-210-9006. The pass code for the call is 6321677. A replay of the call will be available from 1:00 p.m. ET on April 27, 2017 until 1:00 p.m. ET on Thursday, May 11, 2017. To listen to the replay, please register at http://tinyurl.com/spokQ1earningsreplay. Please cut and paste this address into your browser, enter the registration information, and you will be given access to the replay.

Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Springfield, Va., is proud to be the global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Care Connect® platform to enhance workflows for clinicians, support administrative compliance, and provide a better experience for patients. Our customers send over 100 million messages each month through their Spok® solutions. When seconds count, count on Spok. For more information, visit spok.com or follow @spoktweets on Twitter.

Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding Spok’s future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause Spok’s actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, continued demand for our software products and services, our ability to develop additional software solutions for our customers and manage our development as a global organization, the ability to manage operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, competition from other software providers, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in our periodic reports and other filings with the Securities and Exchange Commission. Although Spok believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Spok disclaims any intent or obligation to update any forward-looking statements.



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)

	For the three months ended
	3/31/2017			3/31/2016
Revenue:
Wireless	$	25,860		$	28,172
Software	15,584			17,216
Total revenue	41,444			45,388
Operating expenses:
Cost of revenue	7,036			8,017
Research and development	4,105			2,908
Service, rental and maintenance	8,066			8,305
Selling and marketing	5,922			6,529
General and administrative	11,710			10,506
Depreciation, amortization and accretion	3,223			3,323
Total operating expenses	40,062			39,588
% of total revenue	96.7		%	87.2		%
Operating income	1,382			5,800
% of total revenue	3.3		%	12.8		%
Interest income	122			49
Other income	(30		)	254
Income before income tax expense	1,474			6,103
Income tax benefit (expense)	(620		)	(2,659		)
Net income	$	854		$	3,444
Basic and diluted net income per common share	$	0.04		$	0.17
Basic weighted average common shares outstanding	20,530,739			20,706,082
Diluted weighted average common shares outstanding	20,585,542			20,706,082
Key statistics:
Units in service	1,091			1,153
Average revenue per unit (ARPU)	$	7.56		$	7.77
Bookings	$	19,788		$	15,106
Backlog	$	40,555		$	36,766

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)

	For the three months ended
	3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Revenue:
Wireless	$	25,860		$	26,535		$	27,024		$	27,859		$	28,172		$	28,727		$	29,375		$	30,222
Software	15,584			17,649			18,331			16,776			17,216			18,612			16,806			17,747
Total revenue	41,444			44,184			45,355			44,635			45,388			47,339			46,181			47,969
Operating expenses:
Cost of revenue	7,036			7,482			7,639			7,513			8,017			8,035			7,871			9,131
Research and development	4,105			3,702			3,645			3,211			2,908			2,608			2,525			2,579
Service, rental and maintenance	8,066			7,989			8,253			8,187			8,305			8,416			8,590			8,425
Selling and marketing	5,922			5,855			5,955			6,429			6,529			7,036			6,572			6,790
General and administrative	11,710			9,839			10,593			10,439			10,510			10,276			10,410			10,472
Severance	—			1,438			12			—			(4		)	1,056			141			1,504
Depreciation, amortization and accretion	3,223			3,176			3,229			3,235			3,323			3,362			3,413			3,448
Total operating expenses	40,062			39,481			39,326			39,014			39,588			40,789			39,522			42,349
% of total revenue	96.7		%	89.4		%	86.7		%	87.4		%	87.2		%	86.2		%	85.6		%	88.3		%
Operating income	1,382			4,703			6,029			5,621			5,800			6,550			6,659			5,620
% of total revenue	3.3		%	10.6		%	13.3		%	12.6		%	12.8		%	13.8		%	14.4		%	11.7		%
Interest income (expense), net	122			99			67			61			49			13			1			3
Other income, net	(30		)	100			85			104			254			71			784			264
Income before income tax expense	1,474			4,902			6,181			5,786			6,103			6,634			7,444			5,887
Income tax benefit (expense)	(620		)	(1,876		)	(2,123		)	(2,334		)	(2,659		)	62,098			(3,222		)	(2,512		)
Net income	$	854		$	3,026		$	4,058		$	3,452		$	3,444		$	68,732		$	4,222		$	3,375
Basic and diluted net income per common share	$	0.04		$	0.15		$	0.20		$	0.17		$	0.17		$	3.28		$	0.20		$	0.16
Basic weighted average common shares outstanding	20,530,739			20,529,958			20,541,275			20,568,058			20,706,082			20,949,484			21,324,068			21,700,566
Diluted weighted average common shares outstanding	20,585,542			20,529,958			20,541,275			20,568,058			20,706,082			20,949,484			21,324,068			21,700,566
Key statistics:
Units in service	1,091			1,111			1,124			1,144			1,153			1,173			1,192			1,211
Average revenue per unit (ARPU)	$	7.56		$	7.59		$	7.63		$	7.71		$	7.77		$	7.79		$	7.82		$	7.86
Bookings	$	19,788		$	20,025		$	18,659		$	20,063		$	15,106		$	18,511		$	16,746		$	21,027
Backlog	$	40,555		$	38,295		$	38,812		$	39,475		$	36,766		$	38,650		$	41,639		$	43,524

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)

	3/31/2017		12/31/2016
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	118,947	$	125,816
Accounts receivable, net	24,079		23,666
Prepaid expenses and other	4,650		4,384
Inventory	1,841		1,996
Total current assets	149,517		155,862
Non-current assets:
Property and equipment, net	13,600		12,818
Goodwill	133,031		133,031
Intangible assets, net	9,796		10,803
Deferred income tax assets, net	72,802		73,068
Other non-current assets	2,519		2,505
Total non-current assets	231,748		232,225
Total assets	$	381,265	$	388,087
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,976	$	1,909
Accrued compensation and benefits	11,080		13,268
Accrued dividends payable	11		5,140
Accrued taxes	4,047		4,132
Deferred revenue	30,663		29,145
Other current liabilities	2,560		2,733
Total current liabilities	50,337		56,327
Non-current liabilities:
Deferred revenue	749		752
Other long-term liabilities	8,774		8,921
Total non-current liabilities	9,523		9,673
Total liabilities	59,860		66,000
Commitments and contingencies
Stockholders' equity:
Preferred stock	—		—
Common stock	2		2
Additional paid-in capital	105,766		104,810
Retained earnings	215,637		217,275
Total stockholders' equity	321,405		322,087
Total liabilities and stockholders' equity	$	381,265	$	388,087

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)

	For the three months ended
	3/31/2017			3/31/2016
Cash flows provided by operating activities:
Net income	$	854		$	3,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	3,223			3,323
Deferred income tax expense	279			2,327
Stock based compensation	955			637
Provision for doubtful accounts, service credits and other	223			238
Adjustment of non-cash transaction taxes	(122		)	(81		)
Changes in assets and liabilities:
Accounts receivable	(636		)	1,322
Prepaid expenses and other assets	(146		)	595
Accounts payable, accrued liabilities and other	(2,473		)	(2,653		)
Deferred revenue	1,515			367
Net cash provided by operating activities	3,672			9,519
Cash flows used in investing activities:
Purchase of property and equipment, net of proceeds from disposals of property and equipment	(2,851		)	(1,445		)
Net cash used in investing activities	(2,851		)	(1,445		)
Cash flows used in financing activities:
Cash distributions to stockholders	(7,694		)	(2,580		)
Purchase of common stock (including commissions), net of proceeds from issuance of common stock	4			(4,905		)
Net cash used in financing activities	(7,690		)	(7,485		)
Net decrease in cash and cash equivalents	(6,869		)	589
Cash and cash equivalents, beginning of period	125,816			111,332
Cash and cash equivalents, end of period	$	118,947		$	111,921
Supplemental disclosure:
Income taxes paid	$	180		$	352

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
CONSOLIDATED REVENUE
SUPPLEMENTAL INFORMATION (a)
(Unaudited and in thousands)

	For the three months ended
	3/31/2017		12/31/2016		9/30/2016		6/30/2016		3/31/2016		12/31/2015		9/30/2015		6/30/2015
Revenue
Paging	$	24,972	$	25,441	$	25,944	$	26,564	$	27,101	$	27,637	$	28,196	$	28,782
Non-paging	888		1,094		1,080		1,295		1,071		1,090		1,179		1,440
Total wireless revenue	$	25,860	$	26,535	$	27,024	$	27,859	$	28,172	$	28,727	$	29,375	$	30,222

Subscription	543		551		560		503		498		471		392		419
License	1,171		1,594		1,842		1,691		1,593		2,733		1,457		3,011
Services	3,354		4,500		5,578		4,202		4,315		4,610		4,600		4,609
Equipment	973		1,402		1,091		1,250		1,729		1,764		1,434		1,301
Operations revenue	$	6,041	$	8,047	$	9,071	$	7,646	$	8,135	$	9,578	$	7,883	$	9,340

Maintenance revenue	$	9,543	$	9,602	$	9,260	$	9,130	$	9,081	$	9,034	$	8,923	$	8,407
Total software revenue	$	15,584	$	17,649	$	18,331	$	16,776	$	17,216	$	18,612	$	16,806	$	17,747

Total revenue	$	41,444	$	44,184	$	45,355	$	44,635	$	45,388	$	47,339	$	46,181	$	47,969

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
CONSOLIDATED OPERATING EXPENSES
SUPPLEMENTAL INFORMATION (a)
(Unaudited and in thousands)

	For the three months ended
	3/31/2017		12/31/2016			9/30/2016		6/30/2016		3/31/2016			12/31/2015			9/30/2015		6/30/2015
Cost of revenue
Payroll and related	$	4,489	$	4,612		$	4,468	$	4,406	$	4,634		$	4,414		$	4,277	$	4,274
Cost of sales	1,910		2,309			2,480		2,227		2,673			2,902			2,549		3,801
Stock based compensation	58		(108		)	57		58		49			33			33		34
Other	579		669			634		822		661			686			1,012		1,022
Total cost of revenue	7,036		7,482			7,639		7,513		8,017			8,035			7,871		9,131
Research and development
Payroll and related	3,396		3,198			2,940		2,478		2,325			2,025			1,889		1,936
Outside services	516		511			569		580		428			480			516		491
Stock based compensation	55		(82		)	46		48		40			21			21		21
Other	138		75			90		105		115			82			99		131
Total research and development	4,105		3,702			3,645		3,211		2,908			2,608			2,525		2,579
Service, rental and maintenance
Payroll and related	2,670		2,689			2,641		2,647		2,747			2,790			2,723		2,619
Site rent	3,620		3,618			3,626		3,668		3,660			3,664			3,763		3,783
Telecommunications	1,069		1,088			1,152		1,117		1,213			1,269			1,377		1,271
Stock based compensation	20		(29		)	15		15		13			7			7		7
Other	687		623			819		740		672			686			720		745
Total service, rental and maintenance	8,066		7,989			8,253		8,187		8,305			8,416			8,590		8,425
Selling and marketing
Payroll and related	3,103		3,575			3,502		3,510		3,666			3,780			3,664		3,732
Commissions	1,202		1,248			1,317		1,559		1,525			1,754			1,858		1,792
Stock based compensation	101		(131		)	75		75		48			(7		)	16		51
Other	1,516		1,163			1,061		1,285		1,290			1,509			1,034		1,215
Total selling and marketing	5,922		5,855			5,955		6,429		6,529			7,036			6,572		6,790
General and administrative
Payroll and related	4,442		4,542			4,142		4,306		4,392			4,029			4,320		4,611
Stock based compensation	721		(863		)	507		534		488			316			316		548
Facility rent	819		817			848		810		839			856			868		841
Outside services	2,287		2,277			1,946		1,921		1,726			1,783			1,864		1,728
Taxes, licenses and permits	989		976			1,164		1,060		1,055			1,132			1,068		1,150
Other	2,452		2,090			1,986		1,808		2,010			2,160			1,974		1,594
Total general and administrative	11,710		9,839			10,593		10,439		10,510			10,276			10,410		10,472
Severance	—		1,438			12		—		(4		)	1,056			141		1,504
Depreciation, amortization and accretion	3,223		3,176			3,229		3,235		3,323			3,362			3,413		3,448
Operating expenses	$	40,062	$	39,481		$	39,326	$	39,014	$	39,588		$	40,789		$	39,522	$	42,349
Capital expenditures	$	2,851	$	1,878		$	1,396	$	1,537	$	1,445		$	2,024		$	1,318	$	1,992

(a) Slight variations in totals are due to rounding.



SPOK HOLDINGS, INC.
UNITS IN SERVICE ACTIVITY, MARKET SEGMENT, CHURN
AND AVERAGE REVENUE PER UNIT (ARPU) (a)
(Unaudited and in thousands)

	For the three months ended
	3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Paging units in service
Beginning units in service (000's)	1,111			1,124			1,144			1,153			1,173			1,192			1,211			1,230
Gross placements	28			36			34			39			28			31			36			40
Gross disconnects	(48		)	(49		)	(54		)	(48		)	(48		)	(50		)	(55		)	(59		)
Net change	(20		)	(13		)	(20		)	(9		)	(20		)	(19		)	(19		)	(19		)
Ending units in service	1,091			1,111			1,124			1,144			1,153			1,173			1,192			1,211
End of period units in service % of total (b)
Healthcare	79.7		%	79.3		%	78.6		%	78.2		%	77.5		%	77.0		%	76.3		%	75.9		%
Government	6.4		%	6.5		%	6.7		%	6.8		%	6.9		%	7.2		%	7.2		%	7.3		%
Large enterprise	6.1		%	6.2		%	6.5		%	6.6		%	6.9		%	6.9		%	7.1		%	7.3		%
Other(b)	7.7		%	8.0		%	8.2		%	8.3		%	8.7		%	9.0		%	9.3		%	9.5		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Account size ending units in service (000's)
1 to 100 units	102			106			110			114			118			123			128			134
101 to 1,000 units	214			217			222			228			238			243			250			256
>1,000 units	775			788			792			802			797			807			814			821
Total	1,091			1,111			1,124			1,144			1,153			1,173			1,192			1,211
Account size net loss rate(c)
1 to 100 units	(3.4		)%	(3.9		)%	(3.5		)%	(4.0		)%	(4.3		)%	(3.9		)%	(4.4		)%	(3.4		)%
101 to 1,000 units	(1.3		)%	(2.3		)%	(2.6		)%	(4.0		)%	(2.0		)%	(2.9		)%	(2.4		)%	(3.8		)%
>1,000 units	(1.7		)%	(0.5		)%	(1.2		)%	0.6		%	(1.2		)%	(0.9		)%	(0.8		)%	(0.6		)%
Total	(1.8		)%	(1.2		)%	(1.7		)%	(0.8		)%	(1.7		)%	(1.6		)%	(1.5		)%	(1.6		)%
Account size ARPU
1 to 100 units	$	12.22		$	12.25		$	12.34		$	12.48		$	12.57		$	12.52		$	12.49		$	12.57
101 to 1,000 units	8.66			8.63			8.64			8.65			8.70			8.65			8.69			8.72
>1,000 units	6.64			6.67			6.68			6.75			6.77			6.79			6.80			6.81
Total	$	7.56		$	7.59		$	7.63		$	7.71		$	7.77		$	7.79		$	7.82		$	7.86

(a) Slight variations in totals are due to rounding.
(b) Other includes hospitality, resort and indirect units
(c) Net loss rate is net current period placements and disconnected units in service divided by prior period ending units in service.



SPOK HOLDINGS, INC.
RECONCILIATION FROM NET INCOME TO EBITDA (a)
(Unaudited and in thousands)

	For the three months ended
	3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Reconciliation of net income to EBITDA (b) (c):
Net income	$	854		$	3,026		$	4,058		$	3,452		$	3,444		$	68,732		$	4,222		$	3,375
Plus (less): Income tax expense (benefit)	620			1,876			2,123			2,334			2,659			(62,098		)	3,222			2,512
Less: Other income	30			(100		)	(85		)	(104		)	(254		)	(71		)	(784		)	(264		)
Plus (less): Interest expense (income)	(122		)	(99		)	(67		)	(61		)	(49		)	(13		)	(1		)	(3		)
Operating income	1,382			4,703			6,029			5,621			5,800			6,550			6,659			5,620
Plus: depreciation, amortization and accretion	3,223			3,176			3,229			3,235			3,323			3,362			3,413			3,448
EBITDA (as defined by the Company)	4,605			7,879			9,258			8,856			9,123			9,912			10,072			9,068
Less: Purchases of property and equipment	(2,851		)	(1,878		)	(1,396		)	(1,537		)	(1,445		)	(2,024		)	(1,318		)	(1,992		)
Plus: Severance	—			1,438			12			—			(4		)	1,056			141			1,504
Adjusted OCF (as defined by the Company)	$	1,754		$	7,439		$	7,874		$	7,319		$	7,674		$	8,944		$	8,895		$	8,580

(a) Slight variations in totals are due to rounding.
(b) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only.
(c) EBITDA is the starting point for calculation of operating cash flow for purposes of the Company’s short term and long term incentive plans. Management and the Board of Directors also rely on EBITDA for purposes of determining the Company’s capital allocation policies.


•	Software bookings of $19.8 million, compared to $15.1 million in the prior year quarter. First quarter 2017 bookings included $9.5 million of operations bookings and $10.3 million of maintenance renewals, compared to $5.6 million of operations bookings and $9.5 million of maintenance renewals in the first quarter of 2016.


•	Software backlog totaled $40.6 million at March 31, 2017, compared to $38.3 million at December 31, 2016, and $36.8 million in the year earlier period.


•	Of the $15.6 million in software revenue for the first quarter, $6.0 million was operations revenue and $9.6 million was maintenance revenue, compared to $8.1 million and $9.1 million, respectively, of the $17.2 million in software revenue in the first quarter of 2016.


•	The renewal rate for software maintenance in the first quarter of 2017 was greater than 99 percent.


•	The quarterly rate of paging unit erosion was 1.8 percent in the first quarter of 2017, compared to 1.7 percent in the year-earlier quarter. Net paging unit losses were 20,000 in the first quarter of 2017, consistent with net paging losses in the first quarter of 2016. Paging units in service at March 31, 2017 totaled 1,091,000, compared to 1,153,000 at the end of the prior year period.


•	The quarterly rate of wireless revenue erosion was 2.5 percent in the first quarter of 2017 versus 1.9 percent in the year-earlier quarter.


•	Total paging ARPU (average revenue per unit) was $7.56 in the first quarter of 2017, compared to $7.59 in the prior quarter and $7.77 in the year-earlier quarter.


•	Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $36.8 million in the first quarter of 2017, compared to $36.3 million in the year-earlier quarter, and $36.3 million in the prior quarter.


•	Capital expenses were $2.9 million in the first quarter of 2017, compared to $1.4 million in the year-earlier quarter.


•	The number of full-time equivalent employees at March 31, 2017 totaled 599, compared to 587 at year-end 2016 and 595 at March 31, 2016.



		Exhibit 99.1
NEWS RELEASE



Al Galgano
952-567-0295
Al.Galgano@spok.com



Spok.com



Spok.com


•	Capital returned to stockholders in the first quarter of 2017 totaled $7.7 million, in the form of $2.6 million from the regular quarterly dividend and $5.1 million from the special dividend that was declared in December 2016 and paid in January 2017.


•	The Company’s cash balance at March 31, 2017 was $118.9 million, compared to $111.9 million at March 31, 2016, and $125.8 million at the prior year-end.