Q2 2020 TransAct Technologies Inc Earnings Call
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Oh, yes.
Yeah, Dan welcome to the.
Second quarter two.
This conference is being recorded.
Let's turn the conference over.
Please go ahead Sir.
Thank you good afternoon, hoping to transact technologies second quarter 2020, or so they will be discussing results press release issued after those.
Joining us.
Today from the company, our chairman and CEO, our children and President and CFO became much.
This call will discuss what's called the operating strategies.
Well I wish on these initiatives are detailed on the second quarter financial results.
Then open up the call.
Participants for questions. As a reminder, this conference call contain statements about future events and expectations that you're looking in nature.
And on this call may be deemed as forward looking an actual results may differ materially.
What's the risk inherent in the business and the company. Please refer to the companies that you probably wouldn't it.
Okay and 10-Q.
And that takes no obligation to revise or update any forward looking statements to reflect events or circumstances that occur after the call.
Today's call looks ask include non-GAAP financial measures within the Iraqi regulation G. when required reconciliation of all non-GAAP financial measures most directly comparable financial measure calculated.
And presented in accordance with gas can be found in today's press release as wells in the company's website.
Let me turn it over to bar.
Thank you Mark. Thank you everybody joining us on the call today, let me just start by about 20 minutes ago, We lost power in the building that we are in that we're building the copper it's called from so we're on cell phone should get a little policy, we apologize, but we have no electricity as Connecticut.
Just had very hard with their store.
But before I begin I'd like to say a few work that thanks.
First I think which went back employees.
Well I pads wouldn't door, the most unfortunate spread to the virus and the cup changes we had to make a transact.
You did not cause as far as horrible virus, yet you've stayed committed to the work we needed to get done and you made the necessary adjustments with working from home to keep us going.
No word conveying you went up.
Second I'd like to thank our shareholders.
Nobody understands the impact on your portfolio as much as I do I spent a fair amount it might have been my own money. This year buying in my options not handing back any stock to pay the taxes.
Which I did about $10 a share and doing outright purchases at transact stock.
Well I know what you feel like I think you'd be your commitment to transact.
And finally, I want to bank our board.
I've been diligent in your approach to your role and holding less as a management team accountable you have gotten it in a way that gave us confidence in what we're doing and one that gave us a lot of respect.
Thank you.
Now onto the business or the conference call.
Second quarter performance was relatively solid given the significant challenges presented to watch and our customer base by the cold that 19 pandemic.
The quickly summarize our second quarter total net revenue declined 53% year over year, the 5.3 billion and exceeded our revenue expectations, a four and a half the $5 million.
We recorded an operating loss of 2.7 million and adjusted EBITDA loss of 2.3 million, which also exceeded our internal projection for the second quarter.
We delivered quarterly gross profit margin at 43.3% reset.
Quite that much slower revenue.
And he P.S. lots for the first quarter with 25 cents per share.
Of course, Steve will go wouldn't it be much detail later in the call.
As Youre all aware the covert 19 pandemic continues to create challenges of countries pounds businesses and families around the world.
I'd like to provide insight into different markets, we serve to give context aware of this much this trending in the second half the 2020.
The global Casino and gaming markets were very challenged during Q2 and is recurring recovering at different rates depending on the region.
The Asian Casino market, which has now grown to include many more countries than the cow experienced diminished traffic due to the virus outbreak.
Well, many casinos have reopened the impact with the spread to the virus has curtailed travel and visas and the certain areas.
However, new opportunities, there's still a rising and we're very encouraged that a few new casino openings are still scheduled to occur this year and act.
Europe also experienced significant shutdowns early in Q2, and we're starting to see opportunities are ripe for this geographic market.
The growth of sports betting terminal still exist and we even see the potential for a new jurisdiction to open for casinos that represents a very good size opportunity for trend that.
In the U.S., all casinos will close for the first half or the second quarter with many starting to opened in late May in early June.
As we headed into the third quarter, approximately 85% of the casinos across the U.S. and now open for gaming <unk>.
So with limited capacity and most non gaming attractions remaining close.
We did experience a growth in order to the U.S. casino market as we entered the month of June which has continued into the third quarter of this year.
Industry data has been encouraging would report that show spend per visit mature at least upsetting limitations in capacity.
In addition, one casino analyst I read Jonas come true with formally Suntrust.
Recently issued a report is what he calls gaming is going back to gambling.
Basically what he is saying is in the past casinos blue their revenues in play by adding new bars restaurants, a nightclub which drove higher traffic.
Most of them close the skin casinos lots to grow their business by focusing on the gaming floor, which can only be good for transact.
He said attracting slot players back into casinos with new games will be a focused at the local casinos around the U.S. and is and he is projecting local casinos to start to get back to 2019 Capex spending levels early in 2021.
Capex will not be sent them venue, but on the gaming floor I believe this could be positive for transact.
Now onto our ethics central platform, which was created to help casinos drive more activity real time promotions and incentives.
Once the consumers back into casino, our real time Epicentral system can be board players and incentivize them to come back again.
We've just begun to market our epic central against the issue a flavor of getting that promotion and kiosk and happy the way to combine that could cause social dispensing issues.
Each slot machine and casino can be turned into a p. up using epic central and eliminate the issue of lines that kiosks.
Players would go directly to slot machine to collect their coupons and rewards.
Even if casinos open they are continually challenge with new sanitation requirement and our technology can you kind of stuff there as well.
During the quarter, we announced the launch of that ethics mantra clean to play a revolutionary casino product that provides real time printed food that a slot machine has been cleaned that advice and ready for flight.
Epic Central clean could play built on acres for fine owes clean machine product, which should correct when each gaming machines clay and.
Instantly dispatches the staff member the satisfies the game.
One sanitized centralization of complete ethnic center cleans the play causes the gaming machines that print the clean to play certification ticket, which the casino cleaning staff member then places on the machine or directly over the machines built looks after.
Before the next play can begin the cleaning voucher will be removed from the slot machine, allowing casino gas to see that the slot machine that certified as clean.
Well I players will look to machines with the cleans the play ticket could be getting their play.
Moving onto our foodservice technology market for FSP. The second quarter was an extremely challenging time for many restaurant and food service companies as the entire industry working new plans procedures and policies to keep their employees and customers healthy and safe.
Different verticals or the food service industry have fared better than others.
Casual restaurants, and those restaurants without woke up because I agree and take out systems would drive throughs had been the hardest hit.
Most restaurants have been open but are experiencing lower traffic based on limited ceding requirements.
The other hand convenience stores and grocery stores have rebounded much faster.
They expand their fresh food offerings and consumer behaviors change could pick up any then.
Looking at the second quarter results I was truly encouraged by the 100% growth in our recurring revenue from our foodservice technology market compared for the second quarter of 2019.
Please remember the recurring revenue for FSC markets include software license fees surface and label cells.
As we ended the second quarter 2020, we now have 3501, both the hot terminals running on our system and our recurring revenue for the second quarter was $659000.
Despite the shutdowns and much slower traffic at our customers locations that occurred in the second quarter 2020, I was very pleased to report or annual revenue per terminal averaged approximately 753 that $753.
As challenging as the quarter was we're beginning to see an uptick in orders from new and existing customers in our foodservice Tech.
What do you mean portion of FSP could potentially exceed $1 billion in the third quarter at first but transact.
Part of our growing excitement is a large labels or whatever we received from our largest bohac customer convenience store chain.
We will execute during the second half a twentytwenty.
They have also began to order terminals once again.
Additionally, we have previously announced corporate approval for both <unk> at a large Canadians fast food franchise chain with over a thousand locations.
Cobot Force these franchise owners to pause there activity that they are now up and running evaluating like all of our solution and placing orders once again.
The Ohio is resonating with customers large and small and we're excited about the trend traction we are receiving with small and mid market operators and most recent announcement covered 10 customers totaling 70 quarterly ball hot terminals and included fast casual foodservice and convenient store concepts showcasing the flex.
The goal to get Transacts industry, leading for high solution.
And I do want to remind you we announced just a few weeks back an order for 1200 BOE us systems for a kiosk operator inside grocery stores.
Our goal was to have all 1200 terminals installed by the end of year, which will then add to our growing recurring revenue base.
As we look at the remainder of 2020 and beyond investing in our technology is paramount to enhancing what position in the foodservice technology market.
Our most recent addition to the ball lots Aleutian suite is both <unk> employee wellness.
Hi employee wellness off your safe and secure digital process with its mobile app to conduct wellness screenings that will either greenlight employees that can work or identify employees that messed must go home to recover.
Moreover, boho employee wellness can be included as part of the broader and broader well how cold it readiness and prevention program, along the cobot related checklist digital menus and clean to eat label.
Well, how cold it readiness and prevention program and shores and ensures employee safety, while reinforcing new and updated standard operating procedures with digital accuracy and accountability.
Operators can reopen and operate in the safest cleanup and most compliant white possible.
And we plan to announce a major product launch in late fall this year, which we believe will showcase our leadership position with restaurant in foodservice operators with a week and technology.
With that I'd like to turn the call over to Steve.
50, Who'll review, our second quarter results and our liquidity position after which I'll make some summary remarks before opening the call for questions and answers Steve.
Like part good afternoon, everyone.
Before I get into the details of our second quarter results I'd like to highlight the steps we've taken to decrease or operating expenses to manage our liquidity.
Her last earnings call. One day, we discussed the typically made in late March as co. The first caused most of our customers to shutter the businesses.
Went from accelerating spending to support the growth of our Boeheim solution to halting all new spending and executing the detail creates a reduced expenses.
During the first core lower operating a manufacturing overhead expenses by approximately $700000 come to rather than we projected internally for the first quarter.
That early in Q2, we took additional steps that we estimate it will reduce our total expense run rate by 1.1 million compared to the first quarter.
I'm pleased to report that we ended up nicely exceeding that estimate the total savings of approximately 1.7 million sequentially consisting of savings in operating expenses of 1.2 million and manufacturing overhead expenses other happily.
You should also mill there was a cheaper $1.7 million of Q2 cities, even with adding back the payroll costs for our furloughed employees, who we were happy to be able to return to work for both the May and June as a result, as we've seen the proceeds from the Paycheck protection program administered by Dsps.
We also temporary removed the kind of person salary reduction we put in place in April for most our employees, except for senior management in order to fully take advantage of the PDP program.
As a reminder, we received almost 2.2 million or PPP funds in early may never used to pay payroll cost and help fund our facility Lucerne utilities pretty weak period ending June 30.
But we're still awaiting finalization of the TPP because getting this rules and application process based on our use of the loan proceeds we believe a substantial personal loans will be forget.
Because we finished phone using the PDP patients by the end of June and July He took additional expense reduction actions, which included reducing our workforce by approximately 20% through a combination of employee terminations and temporary furloughs, which we expect to continue to get in 2020.
Reinstituting, a 10% across the board salary reduction for offset hourly and salaried noncommissioned employees to at least you have to 2020.
And continue the elimination of all discretionary spending such as trade shows marketing and promotional activities traveled entertainment expenses trailing et cetera wherever possible.
We expect these additional measures to reduce or operating expenses and manufacturing overhead spend by approximately 400 $500000 per quarter compared to Q2.
So we won't likely see the full impact with the expense was actually Q3, two severance others on the crews, but expenses, we expect to occur.
Now turning to our second quarter results.
Net sales were 5.3 million, which was down 53% from 11.4 billion into second quarter last year.
Looking at her second quarter sales by market or foodservice technology market RFS team was up 7% to 1.2 million from 1.1 during the second quarter of last year.
I reference to hardware sales declined 32% for 545000, we ended the quarter the 3501 paid terminals installed.
Hardware revenues were down largely due to lower sales of our 9700 terminal to mcdonalds as their stores experience the impact of cold and they too.
Our recurring epics T cells, including software and service subscriptions as well as well its consumable label sales came in at 659000 in Q2, which was more than doubled the 324000, we reported a year ago period.
The large increasing their recurring revenue demonstrates that our boeheim initiatives had begun to gain traction that are building a recurring revenue stream as our installed base of terminals gross.
Casino and gaming sales were 1.4 million a decline of 76% from the second quarter late team as we began to experience, but full effect of casino closures from Kobe team I guess, you have ticket critter purchases in the quarter.
Breaking this down further our domestic revenues were down 72% and from the prior year at our international revenues were down 82%.
Pls automation the banking sales were down 71% for 481000 to second quarter 2020 on significantly lower sales of our it's again 9000 appeal, let's put into Mcdonald's due to the impact of co bid on that business.
Continues to have robust right through and take out activity.
Looking at contract sales virtually no activity occurred in the quarter due to colder 19 pandemic resulted in regard to lose I've just 8000 over the quarter.
So we continue to deemphasize Printrex sales, we expect to receive additional orders from our legacy customers and the industry recovers from the impact of colder than 18.
As we exit the lottery bucket, we made a file sharing that $817000 a lottery printers and the second quarter 2020, there we don't expect any future lottery printer sales beyond that.
Finally, transact services group or TSG sales were down 44% year over year to 1.4 million as we continue to experience the claims and sales of legacy spare parts and consumable products such as HP inkjet cartridges appeal as paper roles that we no longer focus on.
Moving down the income statement, our second quarter gross margin was 43.3%.
Which compares to 50.3% in the prior year period as our gross margin was negatively impacted by the overall sales declined in the quarter.
Total operating expenses for the second quarter, 220 were $5 million, which was down 1.2 million or 19% sequentially from the first quarter.
Down 7% year over year.
As we outlined on our last call you took a number of steps to lower our expense structure from the first quarter run rate in response to the effective cope with my team can tend to kind of our business.
Selling and marketing expenses were down $670000 worth 32% year over year to 1.4 million.
The sharp declines is primarily attributed to the elimination of a significant portion of all trade shows and other trade marketing programs as well as employee furloughs and terminations in April.
<unk> expenses were up 51000, or 2% year over year to 2.2 million or additional legal accounting and other professional fees, mostly related to new issues consultations and disclosures related to Kobe team, which was largely offset by a bit on travel.
Expenses and a reduction other discretionary expenses.
Engineering design and product development expenses were up 252000, or 23% year over year to 1.4 million.
Continued bowl how software development projects that we decided to continue even in light of because if they can pick them up.
We incurred an operating loss for the second quarter 2.7 billion or 51.8 person that sales compared to operating income of 309000 or 2.7 person that so from a year ago period.
I've explained how the Q what earnings call. They can be coordination usually high effective tax rate of 33.2% in the second quarter, which is well above the corporate statutory rate of 21% and resulted in a tax benefit of 921000 or the second quarter 2020.
As a reminder, that additional provision where the cares act gets companies be goes to carry back federal net operating losses.
Cares Act allows companies that generate a net operating loss in 2020 to carry back five years, we see the cash refund based on prior tax payments.
Since we expect to incur a net operating loss in 22, and we expect not to pay any kinda like impacts in the years, they carry back or anticipated 2020, and allow us to an earlier years when you pay the corporate tax rate of 34%.
Let me see with a cash refunds sometime in the middle of 2021.
Depending on the amount of our 2020 in a while the cash refund could be substantial that provides additional boost to our liquidity when do you see because people.
And on the bottom line, we recorded a net loss of 1.9 billion or 25 per cent per diluted share in the second quarter 2020, which compares to net income of 186000 or two cents per diluted share in the year Coker.
Adjusted EBITDA for the second quarter 2020 was a negative 2.3, Emily which compares the positive 616000 in the second quarter last year.
Finally, turning to the balance sheet. We ended the June quarter is a 3.1 billion cash to 22 million of dedicated to the PPP alone.
And just 6000 of outstanding borrowings under our credit facility.
So we traditionally have not giving financial guidance for the spirit of transparency given to continuing problems 18 couldn't dynamic we want it could again provide investors with an understanding of where the business has trended in the third quarter.
Our sales expectation for your baby as the year and insight into our projected liquidity.
Our total sales for July were approximately 1.4 billion.
Based on their average daily bookings so far we expect our estimated Q2 sales to be around $5.5 million to $6 million.
We believe our customers businesses will gradually improve as the impact from a cold in 19 diminishes over time.
And as a result, we expect our sales slowly build sequentially each quarter as we move through Q4 going into 2021.
Based on our projections, we believe that the liquidity measures we have taken combined with available borrowings under our credit facility will provide us with enough runway for at least the next 12 months that enable us to endure through these challenging times.
In summary, we continued to make prudent decisions. During these unprecedented parents and believe we have the up the operating discipline to manage through the current volatility in our business. It would come up on the other side ready to grow again.
At this point I joined the call back to work. Thank you Steve.
Well done the outlook for 2020, you made the challenged but we are clearly optimistic about the momentum we are seeing in the restaurant industry and with the up tick in order activity.
It's interesting our foodservice technology industry.
Market will now will drive our revenue growth.
We're confident in the resilience of our business and employees and believe we will come out on the other side of these times even stronger.
At this point I'd like to open up the calls to questions.
[noise] count and if you want my takeaway question pick up by pressing Star mine on your telephone keypad Imperium thing and Speakerphone. Please make sure. Your mute function has turned off some of my or second altering Franklin then.
Again that its star why not feeling like Cascade question.
And while I should just a moment.
Once again that is star minor people might ask a question.
And well take our first question from Mitchell sacks, with Grand Slam LLC.
Hey, guys how are you.
They mentioned that.
Good so with respect to the convenience store market you know I see in Europe should I was a 711 is you know it probably makes sense when your customers.
Your thoughts on those Speedway acquisition and second comment there would be just kinda talk about how you mentioned one of your large customers was getting active again would it be safe to assume that would be them.
Yeah. So the good news Mitch I got a couple of stories in their first of all.
We are seeing the orders to start return from our large convenience to our customer and as we all know that they had planned on rolling out a 10000 terminals.
And so while we lost the last call it six months.
Four five months as they were starting to roll up terminals in January February that stopped in March April May and June.
Clearly, we are starting to see that come back.
The other really good news niche is that.
We just we see a very large labeled order from them and we're trying to understand what that means in they kinda monthly run rate for how many terminals we have out there.
Because as we had previously explained to the shareholders. We believe between labels and software and service, we would be somewhere around $1700 per terminal per year in recurring revenue.
Based on the latest label order that we received they could be significantly more.
So we're getting ready to ship will work closely with there they have a kind of a master distributor, but does this for them.
And then we'll pay close attention to the sell through rate just see what a real number would be because not only do we think we're going to have 10000 units out there by the time. They finished the rollout, but as you said they bought speedway and we do expect that they will roll out there fresh food initiative that Speedway also.
Which will add between around 3900 more stores to their population so that would put us close to 14000 stores.
And also with a higher potential average revenue per unit that could be pretty significant match and and so over the next couple of months, we'll be paying close attention to the order rate of the terminals.
But also the sell through rate of the labels.
There's one thing that I also would like to mention in regards to our C. stuewe our market. We clearly we have been focused in C stores in grocery stores, because they're they stayed open and they're they're trying to get aggressive with or fresh food initiatives.
And I had our sales force give me a list of all the C stores that were now doing business with with both.
It adds up to 22 different companies.
Some of them they've got all their business some of them. They just started rolling out and trial and yet but are paying for.
There's one or two that are using my role 9700, and we are working with them to convert them over to the boho terminal.
But I was pretty impressed with the fact that 22, a C stores in the country or actually using our Bohac technology.
And so that that shows that the effort that we put in the finding where business could be close instead of going to a restaurant chains that was struggling to open up the can only be a 25, where 50% capacity where the C stores, we're aware that money with that they were that they were growing with their fresh food.
Clearly, we see that and the same thing on the on the grocery side. We now have two major tier suppliers or tee up operators in grocery stores that are using our technology.
One is already installed and one is going to be installed by the end of this year, although clearly add 12 product more terminals to our system, but more importantly, as a good amount or recurring revenue with that so going into next year. Once we get all these terminals shipped in the C store and market and get this news suit.
Grocery store company up and running.
Clearly our recurring revenue next year is gonna be growing and growing a lot compared to even this year and we're growing by 100% right now.
So we are becoming a bit more excited given the challenges that we faced in April and May.
And then in your in your nodes that you talk about the business environment, the uncertain, but the fact that you're starting to she.
Orders moving he just kind of walk us through or talk us through you know what you're seeing from your potential customers.
We'd have to break it out between the casino market and then the food service technology market.
The casino market, we did see an up tick in orders in June and that flowed through into July and niche July is normally our lightest month in a quarter, especially casinos in the casino market because our slot manufacturers. The last month of the quarter I tried to get as many slot machines out the doors. They can so normally the first.
Last month as a quarter, it's very quiet well that was a lot different this year. So clearly we saw a fair amount of orders that came through and shipped so we remain optimistic there I also think that Barry Jonas from truest.
East you know he he's looking and talking to casinos and mainly focused on the locals market, which is about 95% of the casinos in the U.S. and.
And he is starting to hear good things about the capital budgets coming back in 2021 now that's clearly positive for US you know we have 50% of the market. So whatever happens we're going to get 50% of so we're excited there you know we hope we do see some openings that are coming across the world and will.
Working like Hell to get those openings, but we are starting to see the order flow go through more I can tell you that when you look at the orders that came in April and May and then look at June now granted April and May well horrible.
The orders that came in the June three X what we got in either April or May. So that was very positive. What's got me really positive, though niche is really foods service technology.
We are seeing customers, we've got many trials going on right now.
Where new customers are wanting to trials or technology with a with the potential of Rollouts.
So we are seeing the deal flow pick up again.
And that's positive for us as we build up our deal backlog right. So we can close more orders.
Oh, so we are seeing that and our existing customers. We're seeing the clearly that they're starting to buy more terminals and put more terminals out which is what they said they were going to do on the rollouts, but we're also seeing the label sales pick up which is telling us that their volume.
Business is going up because the more that they have to print means the more that they're selling so we aren't seeing that niche and we saw that in June with.
Some fair amount of good label waters, and clearly now with the new water for a more convenient store customer which was very significant.
We are starting to get a good feel all the uptick in the label business for our FSP business, but if you think about it Mitch you know the last couple of years. It was casino running the business and lets get Eplus tee up and running and let's get the technology launch and lets go close orders.
The growth that we're now going to see from a horrible Q2 into Q3 and Q4 and Q1 of next year is going to come from food service technology, because we've got the orders we've got the customers that's starting to roll them out again, and we've got that recurring revenue growth.
This fight a horrible Q2, we grew our recurring revenue business like 100%.
We will.
Versus last year really that's what we're looking at again in Q3, we have a chance to eclipse a million dollars and recurring revenue in Q2, great first time and the company's history.
So the growth that you're going to see from us as we all get out of US right. None of US wanted this to happen right. None of US predicted that this would happen, but as we come out of this mess and God knows more people should wear masks.
We are start we will see FSP drives the grocer transact.
Awesome. Thank you very much.
You got it.
Well now take our next question, Jeff Bernstein with Cowen.
Hey, guys congratulations on a I'm doing a great Uh huh.
Through the value of breath here it was.
Really quite a quarter two classes of what you guys were able to do so I. It's another positive surprise to me it sounded like on the balance.
You have to deal with long term debt of $2.17 million and and I thought I heard you. So that most of that is the TPP loan or government loan and only 300000 or so is out under your line of credit is that right.
No Jeff the whole the whole about that shows up on that line item is off the PPP. Yeah. We have we have really no debt.
All PPP Ah, Okay, and then and then how much is out onto your line of credit.
$6000.
6000, and that's just.
Yeah, well at that.
Wow Okay.
Uh huh.
And pretty much free cash for that that is really a magic trick or congratulations that's awesome.
All right. So oh, there's some fuel isn't flowing attack here to go through this and and you cut expenses significantly I guess, we can talk offline a little bit more of just how that that models out because obviously some of the some of the cities or in the run rate in Q.
To sum it sounds as new et cetera.
But it but it sounds like you really get in this down to a to where we're going to you know have had some pretty good some flexibility to be able to get through this.
Yes.
Right now is with the resurgence of the FSP business again.
You know the talk the talk in the restaurant market today right now.
Hearing it across the board.
Is that.
The restaurants now in the technology.
When you add a person you add a liability now you added potential person that could come to work sick and technology doesn't get sick.
So we are seeing.
Some real good.
Requests for how technology can help them out and if you think about if you break the restaurant into three will enter three things the front or the house has the technology. They have their Pos they have the kiosks and whatever else the middle to how has the financial package has their inventory package the back of the houses nothing and what we.
We are starting to hear from from the restaurants is how can you help me the wellness.
Program that we develop.
Develop because the restaurant company called US and said I've got a problem I laid off my waiters and waitresses I'm now opening again and there are they they want to come back to work and if they don't feel well they know they got to stay home, but they're not going to make money so their at risk.
The restaurant of having an employee show up now feel your out but that employees need the money.
So how can we use our check list out 'cause right you got a checklist out how could we use that to help them now there its complexity in that you got all the medical records laws that have to protect the individual from who sees their medical records. So we went to work and figure out how to do they.
And in another week will be finished with the technology. We've launched it this week and another week, we should have a pretty much finished and we've got a customer O ready to trial. It because this is a technology solution. What a lot of restaurants are doing is they're making their employees coolatta.
Question here, they fill it out by hand.
They entered to some manager right say 10 people come to work how did they seem to get to know answers what it did they see that there was did they take the temperature they not take the temperature. This is now going to be all automated we will immediately give them an exception report to say John go came to work he's got a fever send them home.
So what we are hearing in the marketplace and let me tell you I'm being interviewed I think I've got my third interview coming up from trade magazines that want to talk about how technology is going to help restaurants open and stay open and keep their customers say and keep their employees, saying so.
We are seeing that so the question is though Jeff as we start seeing this all open up again, you know how do we take advantage of it.
And it sounds like still so this is going to seamlessly also integrate with any kind of testing program than anybody dozens and they'll go well you got this not yeah. There you can't come back to you got to test and here, we're going to set you up immediately would be prosper or whatever it is so all that kind of thought.
Yeah, but the big question is that they walk in the door. How do we had is the restaurant make sure that the employees healthy enough to come to work. That's the big question, that's going through their minds and right now there's no true integrated solution like we believe that that we put like with the one that we've put together.
Yeah, and it married claims Gord checklist.
So so between food service and the claim to play casinos than you would from that guys would be highly motivated and kind of knocking down the door to get this stuff in place is it just that they were a you know.
Now, they're ready to start doing things after they have applied Tony pits gossiping, and that's where we were in the last couple of months and now. It's finally like ours, how do we go forward or where are these people in decision making yeah.
You know I think I, just I think I've said it a couple of different times I believe that look what went on.
As restaurants and could see knows how to figure out what they were going to do going forward. So put technology you up to the side what they needed to do with figure out how my opening how can I open how do I space. My you know my counters hattaway space My tables.
Where do you know how to why do QR codes. So I don't have to have menus today to figure that all out and they did right. So the open now what they're saying is okay now how can I use technology. So.
I believe it's exactly what I thought would happen, which is okay I'm close I'm going to open what's the first four or five things I got it do let's get through that lets open.
Now, let's go find some solutions that will make this a lot more efficient unproductive.
Casinos are a little different stuff I think casinos I think we're we're a little I head of opening up and like a couple of casinos got in trouble because they opened up and people were second their employees were sick and they had to go back and shut down and then there is no Bob.
Our top so loud in Vegas.
You can play a bar top machine right now so I think the industry is now starting to figure out Okay got it take it serious can shut down again, what technology cannot use so I think the casino industry is just getting to the point, where I think the restaurant in the convenience store in Sri was about four weeks about which is a.
You got to start again, we've got to look at technology I think the casino industry is just getting there.
Gotcha Okay.
Well listen thanks to both you guys and the team for a job well done in a really tough environment. So please. Thank you. Please let everybody know that your shareholders are grateful.
Thank you. Thank you.
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And well pause for just going on that.
Oh, that's out there no further telephone questions I'd like to turn the conference back over to our presenters for any additional for closing remarks.
Yeah. So again like I started the call by with a bunch of thank you. So I. Thank our employees. They think our shareholders I think our board.
Clearly nobody was expecting something like we're going through.
And I just really appreciate the support that we got from all three.
Always shareholders and our board and we're working very hard on your behalf shareholders.
And we have a path forward and the good news is we're starting to see the markets open and that recurring revenue short does help so thanks, everybody for being on the call and we'll talk to you in a couple of months Bye bye.
And once again that does conclude today's conference only paying off in your participation you may now disconnect.
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