Q3 2021 CynergisTek Inc Earnings Call

Good day and welcome to the synergistic third quarter 2021 earnings call today's call is being recorded and I'd now like to turn the conference over to Bryan Flynn. Please go ahead Sir.

Welcome to synergistic 2021 third quarter earnings conference call, but those do not know my name is Brian Flynn Vice President of Investor Relations for the company. It is good to be back with synergistic and I look forward to re engaging with all of our investors in the coming weeks joining me today from the company are Mac, Mcmillan, President and Chief Executive Officer, and Paul <unk>.

Chief Financial Officer.

Before we begin the formal presentation I'd like to remind everyone that some statements made on the call and webcast, including those regarding future financial results and industry prospects. Among others are forward looking these forward looking statements can be identified by the use of forward looking terminology such as believes expects anticipates would could intends may.

Will or similar expressions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in today's conference certain of these risks and uncertainties are or will be described in greater detail in the company's SEC filings given the risks and uncertainties listeners should not place undue reliance on any forward looking statement.

And she had recognized that statements are predictions of future results, which may not occur as anticipated sooner.

Synergistic is under no obligation and expressly disclaims any such obligations to update or alter its forward looking statements whether as a result of new information future events or otherwise at this time I'd like to turn the call over to Mac Mcmillan our CEO.

Thank you, Brian and it's nice to be able to say that again and I'm sure. Our investor community are also glad to know your back as well.

Welcome everyone to our Q3 earnings call. It has only been a short time since we spoke last at our annual shareholders meeting, which was held a little later than usual. This year. Many of you were not able to make that meeting. So today I will cover both the summary of that discussion with updates along with some more recent developments. Thank.

Thank you again for joining us on our call. This afternoon evening. This marks four months since I returned as CEO and a lot has occurred we have made quite a few changes. We are very excited about where we're headed the team is suggesting is starting to show results and while I realize we still have a ways to go I can't wait to get to next year.

Since my return we have been focusing in four key areas first supporting sales and getting fully staffed enabled and aligned to effectively engage with market opportunities second expanding the mission of the delivery organization to go beyond project delivery and into driving new and expanded business.

Third reassessing and prioritizing those competencies needed to support growth of the business and fourth revisiting our long term strategy strategy.

This is incredibly important because we have to know where we're headed what is the priority weed out those things that are not creating value are contributing to growth and make sure everyone involved is committed to winning.

You noticed I did not say on board because I am not just eliminate those.

So those who work directly for the company, but everyone involved to include our investors. Several of you have pitched pitched in to assist.

Let you know that I greatly appreciate that.

Support for sales has been a hands on experience engaging with each rep on deal strategies participating a client meetings and sharing successful strategies for selling so that's new.

To help this new team get grounded.

Moving and focused on closing bigger deals we have reemphasize. The three main core elements of organic growth and sales, adding new customers, maintaining strong renewal rates and penetration and expansion of services into existing clients.

We have re emphasized our fourth pillar of growth prioritizing multiyear managed services as well.

This quarter, we saw improvements in each of these areas. We also reorganized our sales team deemphasizing dedicated service focused sales and re emphasizing selling our complete portfolio of services broadly across all regions.

Part of that reorganization was focused on providing opportunities for newer reps to be mentored by more experienced reps and to improve client experience by ensuring better continuity.

We are re emphasizing the health care core business revitalizing our partner and managed services programs.

<unk>, our new strategic partnerships and enhanced services to grow inside and outside of health care and ensuring that our investment in early mover status with CMC and the government space translates to successes earlier.

Early results of these efforts have resulted in a pipe and pipeline growth.

Now includes opportunities across all of our business lines. In Q3, Q3, we saw a 76% increase in opportunities create totaling over $20 million compared to the previous four quarter average over a third of these were non health care in an adjacent market opportunities. We also closed.

56 deals in Q3, a 24% increase from the previous four quarter average.

Bookings came in at a little more than $4 4 million, which was below our target. So clearly we still have work to do but we're seeing things turn around and we're staying focused on execution and growth.

We have begun aligning our market marketing efforts more closely with our sales focus to optimize pipeline generation and ensure that our enhanced services and the messaging around resiliency are being effectively communicated.

Building resiliency has always been at the core center, just ex ethos and having the market evolve in this direction is very natural for us as.

As reported in our annual report, 64% of health care organizations are below a passing grades and security.

Any austin falling behind our victim to cyber attacks, many not as prepared as they should be or lacking the resiliency to bounce back to normal operations quickly and efficiently and.

In health care. This has become particularly concerned because the cost is not just financial as identified in the latest pony minus two study of over 300 health care executives that group said ransomware attacks have been especially impactful leading to extended stays in the hospital delayed procedures and poor.

Our outcomes increases in patient transfers and the diversions increased complications for medical procedures and most alarmingly an increase in mortality rates.

Those the score higher in our annual report, mostly our multiyear clients have benefited from the work we've done with them to ensure that they're focused on preparedness rehearsed and are continuously validating that there are people processes and technology are working effectively as expected and while they are not immune to attacks for insulet.

They tend to fare better than their peers, who are not.

That is how you build resiliency the protections and muscle memory that allow organizations to react in a timely and effective manner to mitigate whatever the risk situation is thrown at them.

This has never been more important as the industry is now realizing the dramatic impact that ransomware alone is happening, but it is beginning to articulate that fact out loud as upon them on report of tests.

Everyone should know by now, but it is not about whether you will be attacked or even whether an attacker will find a way. Yes. It is about what you. What you have done to make yourself less of a target or victim and how ready you are you will be when that happens.

That is what resilience is the ability to anticipate withstand recover from and adapt to adverse conditions stresses attacks or compromises on systems that rely on cyber resources in short, it's the ability to meet cyber incidents head on and prevail operationally.

We have met with and spoken to many of our clients as well as some new organizations, who have told us that they liked this evolved focus on resiliency and believe it is the direction all of us need to go in.

The mission is simple how do we make the business stronger safer and more resilient when faced with a constant threat.

I'd like to share some recent sales highlights and accomplishments that demonstrate some of our early successes first off we added multiple new logos in Q3, new clients 17 to be exact our best quarter. Yet. This year. These logos come from a very diverse set of organizations representing healthcare technology.

Financial insurance hospitality and other business sectors.

We are a combination of both managed services as well as consulting contracts in August we rolled out a newly revised partner program with its emphasis on resilience we call. It the resilience partner program, our RVP and by quarter end, we had already added six new RP p/e multiple multiyear clients.

For health care and to an adjacent markets. This program is the successor to the cat our previous Capstone managed service and provides a wider array of services strategic partner contributions and greater flexibility in design scheduling the clients can take advantage of to create the right level of support for their <unk>.

Unique program.

This along with our training and renewed emphasis on partner relationships I believe contributed to our renewal rate for existing managed service clients climbing back over 80% in Q3 on.

On the consulting services side, we also reported some recent growth in our technical testing certification and privacy services and have already seen over 200% growth in the number of these contracts.

Our health care and adjacent market sectors year over year. This was partially attributable to an increase in diversity in services offered and enhancements to our testing programs such as continuous adversary detection.

These are areas that are traditionally lagged behind mainstream managed cyber security services, and we're trying to change that with our new approach and focus on resilience.

Our government sector business was also very active this quarter. Despite continued delays by D O D.

First off we added one division of a fortune 100 company.

Real giant in the tech world to either assessor for CMC. This is just the first of many divisions owned by this company that are doing business with the D O D and that we hope to be able to do work with.

We added nine other new C. M M C deals, bringing our total to 12 for the quarter and added more opportunities to the pipeline that continues to grow we even saw CMC opportunities within health care institutions, which provide a care under various EOD related programs starting to appear we had two wins in this <unk>.

<unk> in Q3.

I want to stop here briefly and address a question that I'm sure all of you.

Have about CMC given the guidance that was issued last last week by the D O D.

Initiatives by the federal government can and often are delayed or go through multiple changes prior to official approval and implementation.

You may have seen the announcement by D. O D regarding the changes to CMC program that essentially reduce the categories of CMC certification from five to three.

In brief level, one is now permitted to self assess and some percentage of level. Two will also self assess nothing has been released regarding level. Three are all loaded as expected. These organizations will have to be assessed breast vod through.

Students give cat why.

Well, we don't know exactly what this will translate to we know there will be less assessment work overall from early communications with prospects and customers. We've heard that most feel they will still require an independent assessment based on the work they do for the D O D.

What this could mean for all of us potentially is a very different opportunity moving forward, meaning we would expect more opportunity in the GAAP analysis remediation stages and fewer certifications, we expect delays in Q4 and early 2022.

D O D works through this process, both the D O D and the C. M. M C. A b in their public addresses have reassure everyone that the program is going forward, but there will be changes, obviously, we will be paying close attention to what is communicated by D. O D and determining how this impacts our pursuit of this business going.

Forward, but we fortuitously had already made several decisions to reduce spend on CMC due to concerns with the delays we were seeing as I returned and the uncertainty in the program.

We repurposed all dedicated CMC operational positions to cross functional positions to eliminate any unbelievable resources, we eliminated the dedicated C. M C sales positions and redirected all territory reps to begin selling CMC to broaden our reach and theyre selling opportunities.

We curtailed marketing spend and CMC specific events.

That said I do expect that some version of CMC will continue as the D. O D understands all too well it has to attend to it supply chain risks.

Even if the final outcome is a voluntary self assessment model much like PCI DSS is for the payment card industry. Many organizations will still need help in the short term our approach will be to focus on what we do best with regulatory requirements. We will help to educate provide GAAP analysis support remediation.

And be prepared to conduct certifications for those who still need or desire right. Now we have multiple contracts for C. M C sport.

<unk> of opportunities and we are focused on adding more.

We are enhancing our strong sales and customer centric culture through an organizational restructuring of both sales both sales and operations groups focused on ensuring that they play a more proactive role in strengthening client engagement and being more effective in communicating client needs and support our business development and sales.

These adjustments give us better visibility and connectivity to the business with managers and sales reps focused on selling and delivering projects regional sales and consulting directors focused on account management and business leaders focused on driving the business based on what clients need in the market input.

We also address the role that the executive team plays in building better resilience for the company, providing leadership and driving business.

I believe we have I believe we have much stronger management team now with people, who know the business know the market and understand how to better position our services and solutions.

We've lost some of our senior health care experience over the last two years. These folks most of them shareholders themselves have moved on to new positions with new organizations that they remain friends to the company, who can and are helping us in multiple ways. Several have offered their support and we need to be roles and are contributing others have.

Literally referred business to us we're engaged us directly from their new institution, asking us to provide services to their clients. This is a real testament to the connection they have a synergistic and their support.

We definitely missed these folks but they are departures also represented an opportunity when thinking about what we would need moving forward because companies are constantly changing.

We knew we needed to replace some of that health care expertise and we were pleased to announce the hiring of Tim Mcmahon, our chief operating officer.

He is a long time veteran of leading successful service organizations and health care and other markets I won't repeat what was in Tim's vial recently sent out when he joined but what is exciting is this experience we're growing both small and large organist service organizations, Tim like myself is already having an impact.

Pact on sales through as many contacts in the industry.

Then thinkers, formerly responsible for delivery operations.

I'm the senior cyber thought leader position as Chief Innovation officer responsible for developing new strategies services business lines and strategic partnerships.

This is a role that Ben is particularly suited for as he can evaluate partners and solutions that best fit what we do or that will align smartly to create opportunity together, Tim and Ben along with Paul Our CFO will form the nucleus of the lease of the leadership team with me as CEO to drive the business tour.

And schools.

Heard me say earlier that Brian Flynn is back. This is Brian is a very capable bright and articulate young man with many skills, but chief among them is his ability to analyze the business problem research effectively and present recommendations. It makes sound business sense. He will take on an expanded role in corporate development and Investor Relations.

Ryan has already hit the ground running and making improvements in drug and diving in to make sure things on the investor side or an order you'll be reaching out to many of you shortly if he hasn't already.

We have the Craig Hallum conference coming up in a little under a week and both Paul and Brian will be joining me there.

Let's turn now to our last topic, we launched a formal process to update and revise our short and long term strategic plan working collaboratively with the board given all the change that has occurred the new conditions to the staff et cetera, I'm actually quite pleased with the progress thus far although this is not yet complete.

I wanted to provide some early highlights.

We believe the need for our core products and services is bigger now than it has ever been and that all markets, but particularly health care are in real need of quality cyber security services and products. We know also that is becoming increasingly more complex to balance the needs of the business the risk from cyber.

The increasing cost of regulations, the shortcomings in cyber insurance any unplanned incidents that occur.

We also know that it takes both services and the right technologies to be successful and we have seen what great. What happens when great service companies combined with the right software products that enhance what they do it greatly increases their value for all stakeholders.

So our strategy will include elements designed to increase organic growth in our services with new sales expansions and strong renewals or new or P. P. With its more dynamic design functionality and increased service elements will be a huge contributor to our growth enhancing our service offerings with software and tools.

From strategic partners will allow us to bring innovation to some of our services and increased value and increased value for clients and we will look to increase the number of those strategic partnerships that bring technology or solutions to enhance our services or enable us to create new ones, we are exploring strategic opportunities for <unk>.

Roger acquisition with other cyber security service providers <unk> software solutions that will represent an increase in revenues or a turnkey service solution opportunity in the possibility of creating our own solution to solve what we see as a hobbling problem in managing risk, namely in that organization.

<unk> have a fractured view of what it was.

Their enterprise risk is there.

This challenge plagues every C. So a CIO who are trying to manage thousands of threats coming at them.

<unk> as a security tools that they can choose from to implement and companies like ours that come in and conduct assessments and tests, leaving them with hundreds of things to remediate.

Being able to deliver a consolidated and focused view of the risk and organization faces will improve prioritization of remediation efforts lower overall risk better informed security spend and make them more effective in anticipating and addressing threat, thereby building resilience being.

Being able to provide first class service offerings and solutions can increase our value improve our margins and create a stronger company. We believe this is a solid but ambitious direction that enables growth and improves our company value.

With that I'll turn it over to Paul.

Thanks Mac.

Mac mentioned Q3 bookings were $4 4 million compared to $3 8 million last year.

Bookings year to date totaled $13 million compared to $10 $10 5 million last year.

As a result, our pre sold revenue continues to grow increasing by an additional half a billion to $18 $4 million.

Balance sheet continues to remain strong with $5 1 million in cash and only <unk> 3 billion in debt. After the August forgiveness of the PPP loan.

We did take down an additional $1 4 million from our $5 million ATM under our shelf registration.

<unk> 762000 shares at an average price of $1 88 per share, bringing the total raised to three and a half million.

Given our recent progress towards returning to growth we have suspended the ATM and are now taking the steps necessary to cancel the equity distribution agreement.

We're still waiting on a tax refund from the carry back should be available losses for 2020 of approximately $1 4 million timing for this is to be determined based on the speed at which the IRS issues refunds.

Addressing the Q3 standard financial disclosures revenue was $3 8 million compared to $4 5 million in Q3 2020.

The decrease from prior year was due to lower revenue from managed services, which reduced 5 million to $2 2 million due to the impact from COVID-19 pandemic, along with a couple of customers delaying the start ups services do tool selection issues related to one of the third party applications that we support and we do expect this to be resolved.

And the next few months.

Salting and professional services revenue.

Creased point 2 million to $1 6 million when compared to Q3 2020.

Underperformance in the backbone business unit.

Towards the end of Q3, though in the beginning of Q4, we've seen this start to rebound if.

If not for these unforeseen impacts we would have expected approximately 500000 additional revenue for the quarter.

But all signs from the increase in bookings and backlog point to improved performance as we enter Q4 and into 2022.

Gross margin was 48% for Q3 2021 or an adjusted 35% when excluding the benefit from the employee retention credits. This is comparable to last year.

SG&A expenses increased to $3 7 million for Q3 2021 compared to $2 8 billion for the same period in 2020.

This increase was primarily due to the severance related costs associated with the departure of our former CEO.

And an increase in sales marketing and travel costs now that we're back on the road and looking to drive growth.

This increase was partially offset by the benefit.

From the employee retention tax credits.

Non-GAAP adjusted EBITDA loss was <unk> 6 million for Q3, 2021 compared to <unk> 8 million last year.

The full financials and reconciliation of GAAP to non-GAAP can be found in the earnings release that came out today.

This concludes the financials and the prepared remarks for Q3, operator, please open the floor for questions.

Thank you to ask a question. Please press star one on your telephone keypad and if you're using a speaker phone. Please make sure you mean conference turned off to buy your signal to reach our equipment.

Wanted to ask a question, we'll pause for a moment to allow everyone an opportunity to signal for questions.

And we'll go first to Matt Hewitt, Craig Hallum Capital Group.

Good afternoon, gentlemen, thank you for providing the update and for all the progress and it sounds like you've undertaken since he came back Mack.

I don't think you manage that.

A handful of questions here first up.

Regarding well regarding some of the priority issues that I think hospitals are likely dealing with right now and it's more so because of the pandemic I think everyone.

Is likely acknowledging that they need to address cyber security, but how do they handle that while at the same time dealing with the ebbs and flows of Covid cases or are they being forced to do these in tandem.

Alright, you don't normally man I would answer that question, but I'm going to let.

Paul answer that question today, because he was just at a finance conference and I think he had.

In Canada, there was an interesting session that he sat through.

That provided a very interesting answer for that question. So Paul why don't you answer that.

Yeah as it specifically relates and.

Just make sure I answer what you're looking for a map at least from the insurance, what we what I heard from the team.

One the first thing they're dealing with is the fact that they've they've struggled to get a renewal.

The process going theres been a number of requirements that the insurance carriers have put on the health care institutions to EBIT start the process and most of that is going to be around two two factor.

Not dedication type of efforts.

So it if they're able to even get the renewal discussion going what they're looking at significant increases anywhere between 100% to 300%.

And then on top of that they're also looking at increase retention rates.

It is well and many of them now that are starting to evaluate whether or not they start to self insure.

We had one of the hospitals that I, specifically talked to they determined that they had gone through a breach recently, which was part of the cost for for some of the issues they were dealing with.

But what they found was that the losses that they incurred were about three times their their previous annual premium.

And so as a result.

They get into their planning they did end up renewing for this next year, but as you're getting it to their planning for next year.

They have every intention of actively looking at self insuring.

Potential solution.

But our southern right.

Yeah.

Yeah. So it's a matter it was interesting that that part of what precipitated that discussion was of course the question of where it is we're just cyber security fit in your priority list.

And the answer that I thought was really interesting that came out of that this is from all the the finance folks.

In health care was it was it cyber security was if it wasn't the number one issue. It was right next to the number one issue at every hospital no matter, what their size or regardless of what they're they're dealing with and I think the short answer.

To your question with respect to how are they balancing that with all the other things that theyre doing it. It's just one of their priorities and they recognize that it's not one that they can they can avoid any longer and it's one that if they don't address it exacerbates all the other problems that theyre, having a challenges that they're having.

And it makes it even harder for them to deal with situations like the pant like a pandemic or rolling out some new capability.

Or whatever it is they're trying to do it and security has just has just impacted that everybody. So pronounced pronounced Lee that that it is it is a priority for every single one of them.

Got it okay.

Last quarter, you provided a backlog metric I think it was $4 7 million last quarter and I know you you gave us the bookings this quarter do you have a current backlog that she can provide.

Yeah, we provided it was $18 5 million.

But I'm sorry, if I missed that okay. So that's a significant jump.

Okay.

And then increase.

Yeah.

Okay I must have the wrong number I was looking at it from before.

[laughter].

No it's not wrong number Matt your Youre looking at the one that excludes a cancellation option. So.

Okay performance I'll get you the other numbers were.

Finishing up here okay.

Okay got it and then.

Thank you for the update on the CMC side little frustrating I'm sure given the investment and the time that you spent there and it doesn't sound like it's it it's just you're moving the goal line, maybe but on the health care side, where it sounds like you have re prioritized that business in <unk>.

Maybe some of the adjacent markets I thought it was interesting when you talked about part of your strategic discussion internally is looking at ways to partner or combined with software and or tools. How critical do you think that is to kind of meeting your expectations.

From a growth and and profile for the company.

Well I think I.

I think is really critical because it's because it's critical to what our clients are wanting.

And needing today right I mean, they're dealing with an incredibly complex environment with a threat that just continues to come at them and as unrelenting list.

They're dealing with literally scores of security tools or solutions that they are implementing now with very small staff that they're trying to figure out and they're trying to get trying to connect the dots between what each one of those systems is telling them.

And then all of the assessments and other other work that they do or that's done for them and all of this is just it's just fragmented right Theres no theres no one place where this all comes together in one of the things that we're trying to do is is used technology that allows us to to not necessarily just on.

Automate what we do but take the output from what we do and put it into <unk> into a format that that is easily.

Transferable, if you will into a consistent view that maybe at some point, we get to get to a place where we can actually show them. What all of their risk is across the spectrum and you know this is what your vendor risk as this is what's your what's your high priorities from your risk assessment or this is what your what what's your.

From my assessment identified for you. This is what's your penetration testing continues to to show as your top 10 risks and this is this is what what your vendor management services.

Service is telling you or your top risks with your third party. So that so that that C. So are that C. I O that sitting there trying to manage all of this stuff actually at some point can actually see it all in a way that enables them to make better decisions in terms of how do I prioritize resources, how do I.

How what kind of people do I need to go.

To go after and asked for them, how do I spend the dollars that I'm getting getting for security, which are still clearly you know way behind right. I mean, you look at the latest latest numbers in health care is still hovering somewhere around 5% of their it budget spent on security while other industries are spending upwards of.

15% of their of their it budgets and so it's you know this is a this is a we're trying to get to a point, where we can make everything we do for that client.

Have more meaning and be more connected to everything else that they're that they're trying to look at so these strategic partnerships, whether there is whether it's a tool that we use to integrate into one of our solutions or whether it's just a strategic partner that we work with to be able to to combine what.

They're doing with what we're doing to give the customer.

Better outcome, you know I think that's really ultimately what's going to make the difference for any of these customers not just in healthcare, but in any industry that doesn't have a very sophisticate doesn't have large sophisticated security organizations that do that kind of work for them that they're relying on.

Their partners to help them with.

Okay.

Maybe one last one here and I'll hop back into the queue.

You know you you've I think theres been nine different to wins or expansions that have been press released since you came back in many of those would appear at least from those releases that they're much larger I mean, you're talking about multiple facilities or.

<unk> in many cases are you seeing deal sizes get larger I feel like previously you know there are a couple of years ago. It might be a one facility in your average deal size might be.

Kind of low to mid six figures or how does that has that changed at all given this environment.

I know and I don't have the I can't really do the comparison for you is it I know that it.

From the deals that we were there.

We were looking at that it just closed just prior.

So that certainly the deals are getting bigger and and the sales team is getting is getting is becoming more and more comfortable and focused on on those long term larger deals. They're also getting better at going back in and again and penetrating those accounts and.

Increasing the size of those deals so a lot of those deals originally maybe where the core hospital or the core system.

But then they had all these other ancillary facilities and now the teams going back in Scoop and those up in AR and in addition to that contract which is that expansion. So in fact, we had one one of our contracts not too long ago actually the expansion to to accommodate their ancillary facilities actually was.

Larger than the core contract [laughter], so so that was pretty impressive.

But yes, they're there the team is absolutely focused on.

On approaching these things from a long term enterprise level managed service approach and that just gets you to a bigger contract gets you to the bigger contract, but what longer running running room and it and it allows you to continue to add services like I mean, I know just in the last couple of days a lot of the.

The the.

Opportunities are the proposals that I've seen have all been have been add ons to an existing cap, which just or is it an existing RP, that's just making those those hum.

Service agreements with those contracts those those clients that much larger.

That's great to add a little.

Add a little color to that Matt we did take a look at that and we have seen an.

An increase kind of back to around the 2017 2018 levels. It was really we had kind of a dropbox throughout.

Deep towards the end of 18, and 19 and now we're kind of come back up to where we were back in those other days and then they.

Comparative number $16 million.

Take the backlog okay.

Perfect Alright, thank you so much.

Yep.

Yep. Thank you Matt.

Yes.

And with no other questions in the queue I will now turn the call back over to Mac Mcmillan for any closing comments.

Thank you operator again I want to first thank everyone, who has reached out and expressed their support for this team and our company I want to also thank you for the support you show through your continued investment I want to welcome both Tim and Brian to the C Tech family I want to reiterate we are a great company. It is a great and his great.

Bones as they say was incredibly talented staff.

We live and work in a time when what we do is critically important to the people. We serve the health care Task Force has said that health care cyber security is in critical condition with nearly 90% of hospitals reporting major breaches, they're still spending approximately 5% of their it budgets on cyber security.

Third of other industry spend the average cost of a breach has risen to over $9 million and the cyber insurers are making it harder to get covered limiting what they will cover and raising rates to the point that organizations are questioning the value of such insurance all of these factors are building resilience.

All of these factors are making building resilience and an organization that much more important they arent there aren't enough of us to go around to meet all that need we have reset our sights on execution and growth and are pursuing the emerging opportunities that are in the market is self care emerges from the pandemic returns to normal off.

<unk>, we want to build and deliver services that help our clients solve the cyber security privacy and compliance challenges. They face we want to maintain our first among peers reputation as a trusted partner. Our board is actively involved in helping to shape. The direction of the company and we are and will be engaging at all levels staff.

Management Board and Investor to redefine that Pat our near term goal simply stated is to return this company to double digit growth. Our long term goal is to create greater value for all of our stakeholders investors employees and clients. So to reiterate what I said at the beginning it's been a very busy for months.

<unk> was a lot of changes and adjustments, but there are many positive signs of a turnaround in the industry the market and our execution renewing the vision and we are excited about the future.

As always please reach out to us if you have a question or a suggestion or just wanted to talk about the business and for all the veterans out there happy veterans day and for all the Marines out there happy belated birthday. Thank you.

Yeah.

Hum.

This concludes today's call.

Thank you for your participation.

You may now disconnect.

Okay.

[music].

Okay.

[music].