Q4 2023 CSP Inc Earnings Call

First Speaker: Greetings and welcome to C. S P ice fourth quarter and fiscal year 2023 conference call.

Greetings and welcome to CSPI's fourth quarter and fiscal year 2023 conference call.

At this time, all participants are on a listen-only mode and a question and answer session will follow the formal presentation.

Speaker Change #2: At this time all participants are in a listen only mode.

Speaker Change #2: And answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. Please note this.

Speaker Change #2: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Speaker Change #2: Please note this conference is being recorded.

I will now turn the conference over to your host, Michael Poliviu, IR at EVC Group. Sir, the floor is yours.

Speaker Change #2: I'll now turn the conference over to your host Michael <unk>.

Speaker Change #4: I R E V secret Sir the floor is yours.

Thank you, Alec. Hello, everyone, and thank you for joining us to review CSPI's fiscal 2023 full-year results, which ended September 30, 2020.

Speaker Change #5: Thank you Alex Hello, everyone and thank you for joining us to review Cspi's fiscal 2023 full year results, which ended September 32023.

With me on the call today is Victor DeLobo, CSPI's Chief Executive Officer, and Gary Levine, CSPI's Chief Financial Officer.

Speaker Change #4: With me on the call today is Victor into level, Cspi's, Chief Executive Officer, and Gary Levine Cspi's Chief Financial Officer. Thank you.

After Victor and Gary conclude their opening remarks, we will then open the call.

Speaker Change #6: Victor and Gary conclude your opening remarks, we will then open the call for questions.

Statements made by CSPI's management on today's call regarding the company's business that are not historical facts may be overlooked in statements as a term is identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions are intended to identify overlooked in statements. Overlooked statements should not be read as a guarantee of future performance or result.

Speaker Change #7: Statements made by management on.

Speaker Change #7: Today's call regarding the company's business that are not historical facts may be forward looking statements as Germany is identified in federal Securities laws. The words May will expect believe anticipate project plan.

Speaker Change #7: You continue as well as similar expressions are intended to identify forward looking statements.

Speaker Change #7: Looking statements should not be read as a guarantee of future performance or results.

company cautions you that these statements reflect current expectations about the

Speaker Change #7: The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties risks and other influences many of which are beyond the companys control.

performance or events in our subject. Several uncertainties, risks, and other influences, many of which are beyond the competence of control, that may influence the accuracy of the statements and the projections upon which the segmented statement.

Speaker Change #7: The accuracy of the statements and projections upon which the statements.

Statements are based.

Factors that may affect the company's results include, but are not limited to the risks and uncertainties discussed in the risk factor section of the annual report on Form 10-K and the quarterly report on Form 10-Q , filed with the Securities Regulatory Commission.

As of May affect the company's results include but are not limited to the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K, and our quarterly reports on Form 10-Q filed with Securities and Exchange Commission.

Forward look at statements are based on the information available at the time those statements are made and management's good faith belief as of a time with respect to future events. All forward look at statements are qualified in their entirety by this cost understatement as CSPI and it takes no obligation to publish, revise, or update.

Speaker Change #7: Although these statements are based on information available at the time those statements are made and management's good faith belief as of the time with respect to future events.

Speaker Change #7: All forward looking statements are qualified in their entirety by this cautionary statement.

Speaker Change #7: <unk> takes no obligation to publicly revise or update any forward looking statements, whether as a result of new information future events or otherwise after the date thereof.

payments, whether as a result of new information, future events, or otherwise, after the date thereof.

With that, I'll turn it over to Victor DeLobo, Chief Executive Officer. Victor, please go ahead.

Victor <unk>: With that I'll turn it over to Victor <unk> Chief Executive Officer. Please go ahead.

Thanks, Michael, and good morning, everyone. Earlier this morning, we announced our fiscal 2023 full-year results, and I'm pleased to report we achieved revenue growth of 19% compared to fiscal 2022. I believe our strong performance is due to several factors, including the sustained contribution of the technology solution business, our ability to successfully convert a sizable portion of our backlog to revenue, and our proactive decision to leverage our strong balance sheet to finance large customer orders.

Victor: Thanks, Michael and good morning, everyone earlier. This morning, we announced our fiscal 2023 full year results I am pleased to report we achieved revenue growth of 19% compared to fiscal 2022, I believe our strong performance is due to several factors, including the sustained contribution of a technology solution business our bill.

Victor: To successfully converted a sizeable portion of our backlog to revenue and our.

Victor: Our proactive decision to leverage our strong balance sheet to finance large customer orders.

Furthermore, we reported gross margin percentage of 34% and grew EPS well over 100% from prior year. All significant accomplishments that raises our confidence level that we can continue executing our strategy of transitioning the business to higher margin products and services.

Victor: Furthermore, we reported gross margin percentage of 34% and grew EPS well over 100% from prior year also dipped again accomplishments that raises our confidence level that we can't continue executing our strategy of transitioning the business to higher margin products and services.

Moreover, we are continuing to experience positive momentum to kick off the 2020-2024 as we already achieve significant achievements in the technology solution and high-performance product.

Moreover.

We are continuing to experience positive momentum to kick off the <unk> 'twenty 'twenty 'twenty 'twenty four as we already achieved significant achievements in the technology solution in high performance product businesses.

First, let me address the backlog issue, and then I will provide an overview of the TS business and then spend a few minutes highlighting some of our recent and exciting developments within the HPP business.

Victor: First let me address the backlog issue and then I will provide an overview of the Ts business and then spend a few minutes highlighting some of our recent and exciting developments within the H B P business.

As many of you already know, we entered fiscal 2023 with a level of uncertainty due to well-documented supply chain issues that impacted global economies.

Victor: As many of you already know we entered fiscal 2023 with a level of uncertainty due to well documented supply chain issues that impacted global economies specific to C. S. P. I the inability to receive key components from suppliers kept us from shipping orders to our new customers raising our backlog to near Rec.

Specific to CSPI, the inability to receive key components from suppliers kept us from shipping orders to our new customers, raising our backlog to near-record levels and dampering our revenue opportunities.

Victor: Good levels in tampering our revenue opportunities.

However, as the supply chain issue began to ease up during the year, we started receiving some of these key components that were able to ship finished goods and reduce the backlog to a more normalized pre-pandemic level of approximately 7.6%.

Victor: However, as the supply chain issue began to ease up during the year. We started receiving some of these key components and we're able to ship finished goods and reduced our backlog to a more normalized pre pandemic level of approximately $7 6 million I applaud the team's ability to remain engaged with our customers throughout this period I believe.

I applaud the team's ability to remain engaged with the customers throughout this period. I believe our client's loyalty demonstrates the value.

Victor: Clients loyalty demonstrates the value.

bring to them because they recognize that the product.

Victor: We bring to them because they recognize that the products and solutions are the most effective cost efficient answers to their critical needs.

the most effective cost-efficient answers to the

Our performance throughout the fiscal 2023 was driven by continued performance of our technology solution, or TS business.

Victor: Our performance throughout the fiscal 2023 was driven by continued performance of our technology solution or T. S business, which grew compared to fiscal 2022. The success continues to be driven by our customers increase use of implementation installation and training capabilities regarding the ucas it turned a corner.

Success continues to be driven by a customer's increased use of implementation, installation, and training.

Regarding the UCAS, it turned a corner in the second half of fiscal 2023, and it is now a profit.

Victor: In the second half of fiscal 'twenty 23, and is now a profitable business. We believe will continue to see positive developments within the ucas as we move forward through fiscal 2024.

I believe we'll continue to see positive developments within the UCAS as we move forward.

Now turning to our high performance products in HPP business. We recorded total revenue of 6.9 million for the fiscal year compared to 3.8 million in fiscal 2022. The results were within our expectations. However, the level of optimism within the business is high and increasingly growing following the recent launch of AZT Protect. AZT's advancement allows us to offer our customers a giant leap forward in the evolution of cybersecurity solutions. AZT.

Victor: Now turning to our high performance products and H P P business.

Victor: We recorded total revenue of $6 9 million for the fiscal year compared to $3 8 million in fiscal 'twenty 'twenty. Two the results were within our expectations. However, the level of optimism within the business is high and increasingly growing following the recent launch of AZT protect Azt's advanced me allows us to offer a.

Victor: Customers a giant leap forward in the evolution of cyber security solutions Azt's performance surpasses.

What's available on the market today, and it's a new generation of endpoint applications, cyber security protection designed for both critical operational technology and IT environments, the unique patent solution.

Victor: What's available on the market today, and it's a new generation of endpoint application Cyber security protection design for both critical operational technology and I T environments. The unique patented solution protects a lineup.

Organization then points from a full spectrum of cyber attacks and intrusion techniques, including most advanced zero-day attacks, malware, ransomware, supply chain vulnerabilities, even those threats that are completely unknown to security.

Victor: Organisations endpoints from a full spectrum of cyber attacks and they choose and techniques, including most events zero day attacks malware ransomware supply chain vulnerabilities, even those threats that are completely unknown to security teams.

By deploying artificial intelligence capabilities, AZT halts attacks before damage occurs, ensuring seamless operations without disruption or downtime. It lowers the risk code base of security vulnerabilities exploits on endpoints devices applications to near zero without the need of constant patching.

Victor: By deploying artificial intelligence capabilities easy tea house attacks before damage occurs and sharing seamless operations without disruption or downtime. It lowers the risk code base of security vulnerabilities exploits on endpoints devices applications to near zero without the need of constant patching.

Updates.

Developed internally, we knew AZP was going to be a game changer for the HGP business. So the team has significantly targeted several high-profile conferences and seminars to raise awareness of AZP.

Developed internally, we knew as if he was going to be a game changer for the ACP business. So the team has significantly targeted several high profile conferences and seminars to raise awareness of AZT, including the 18th annual API Cyber Security Conference, which was held in Houston earlier, this month for oil and natural gas.

including the 18th Annual API Cybersecurity Conference, which was held in Houston earlier this month for oil and natural gas industry. The Rockwell Automation Conference, which was also held last month in Boston, was the world's premier industrial automation and digital transformation.

Victor: Gas industry. The Rockwell automation conference, which was also held last month in Boston was the world's premier industry industrial automation and digital transformation event.

The ICS Cybersecurity Conference, which was held in Atlanta in October , is the largest, longest-running event series focused on industrial cybersecurity.

Victor: The debt I see our cyber security conference, which was held in Atlanta in October is the largest longest running event series focus on industrial cyber security.

Since 2000, the conference has gathered ICS cybersecurity stake.

Victor: Since 2000, the conference has gathered Ics cyber security stakeholders across various industries and attracts operational and control engineers I T government vendors and academics.

across various industries and attracts operational and control.

IT, government, vendors, and academics.

And then finally, the Manusek U.S. Summit, which was held in October in Chicago. Manusek is the premier conference for cybersecurity and manufacturing, addressing sectors drives towards digital and automation and how imperative it is to balance it with security.

Victor: And then finally the man you said U S summit, which was held in October and Chicago.

Victor: <unk> is the Premier conference for cyber security and manufacturing addressing sectors drives towards digital and automation and how imperative it is to balance it with security.

We know this is a crowded field, so a visible onsite presence at these and other events was critical and allowed the team to engage and communicate with key influences and prospective clients, including Fortune 500.

Victor: We know this is a crowded field so a visible onsite president at these and other events. It was critical and allowed the team to engage and communicate with key influences and prospective clients, including Fortune 500 companies.

The in-person feedback is quite positive. And the comment we often hear from them is, we see the need for something like AZ.

Victor: The impressive feedback is quite positive in our comment we often hear from them is we see the need for something like a Z T south.

Thus going to the end of fiscal 2023, we received orders from a fortune 500 chemical manufacturing to protect its critical production application from all forms of attack.

Victor: Subsequent to the end of fiscal 'twenty three we received orders from a fortune 500 chemical manufacturing to protect its critical production application from all forms of attack.

enabling production lines to continue running without disruption. We also received an order from a Western intelligence agency to protect its critical intelligence gathering and analysis operations from cyber security attacks. This new contract builds on ARIA's cyber security proven track record and proven security solutions for military and intelligence agencies around the world.

Victor: Enabling production lines to continue running without disruption. We also received an order from a western intelligence agency to protect its critical intelligence gathering and analysis operations from cyber security attacks. This new.

Victor: Contract builds on ARIA cybersecurity proven track record and proven security solutions for military and intelligence agencies around the world.

Additionally, we launched our AZT Protect solution in Australia via partnership with Logitech, a leading local managed security service provider. By adding AZT Protect to its portfolio, Logitech can offer a groundbreaking service protecting critical applications and operational technology in IT environments such as manufacturing, mining, and government.

Victor: <unk>, we launched our AZT protect solution in Australia via partnership with Logitech, leading local managed security service provider by adding AZT protect to its portfolio of largest they can't offer a groundbreaking service protecting critical applications and operational technology and I T environments, such as manufacturing mining in.

Government.

To summarize, we gathered strong growth in our fiscal 2023 and positioned the company for even greater success in the coming years. Although the TS business has been the growth driver over the past few years, the emergence of AZT offers

To summarize we gathered strong growth in our fiscal 2023 and position the company for even greater success in the coming years, although the T. S business has been the growth driver over the past few years the emergence of AZ T offers.

offering has changed the dynamics and gives us two businesses that can grow side by side and provide consistent growth with significant upside.

Victor: Offering has changed the dynamics and gives us two businesses that can grow side by side and provide consistent growth with significant upside potential with.

With that, I will now ask Gary to provide a brief overview of the fiscal year's financial performance.

Speaker Change #10: With that I will now ask Gary to provide a brief overview of the fiscal year's financial performance.

Thank you Victor.

For the fourth quarter ended September 30 we reported revenue of 15.3 million compared to 16.7 million in the year ago fiscal fourth quarter.

For the fourth quarter ended September 30, we reported revenue of $15 3 million compared to $16 7 million in the year ago fiscal fourth quarter.

We reported a significant revenue increase of 66% in last year's Q4 as we began to work down the record backlog. So the compare Comparability represented

Speaker Change #10: We reported a significant revenue increase of 66% in last year's Q4, as we begin to work down the record backlog so the compare.

Speaker Change #10: Comparability represented a high bar.

For Q4, growth profit was $5.2 million.

Speaker Change #10: For Q4 gross profit was $5 $2 million.

for 33.8% respect.

Or 33, 8% respectively.

We also lowered compared to the year ago period.

Were also lower compared to the year ago period.

However, whereas the supply chain was responsible for some of the choppiness, we achieved significant annual growth in fiscal 2023 compared to fiscal 2022, as we reported revenue of $6.4 million, a 19% increase compared to $54.4 million in the fiscal year ago.

Speaker Change #10: However, whereas the supply chain was responsible for some of the Choppiness, we achieved significant annual growth in fiscal 2023 compared to fiscal 2022, as we reported revenue of $6 $4 million or 19%.

Increase compared to 54.4.

$4 million in the fiscal year ago.

Victor: As Victor mentioned this performance is due to the continued success.

As Victor mentioned, this performance is due to the continued success of converting some of the older backlog, allowing us to deliver product to our customers.

Victor: Some of the older backlog, allowing us to deliver product to our customers.

We reported gross profits of $21.9 million or 34% of sales compared to 18.8 million or 35% of sales in fiscal 2022.

Victor: We reported gross profit of $21 $9 million or 34% of sales compared to $18 8 million or 35% of sales in fiscal 2022.

The slight decrease in gross margin compared to the year ago period was anticipated and due to the business mix and the lower margin products that had been in backlog.

Victor: The slight decrease in gross margin compared to the year ago period was anticipated and due to the business mix and the lower margin products that had been in backlog.

Victor: We continue to believe our annual gross margin will expand his ambition as the business transitions to a higher margin product and services.

We continue to believe our annual gross margin will expand as the business transitions to a higher margin product and service.

For the fourth quarter, our engineering and development expense was $700,000 down $150,000 from the year ago fiscal quarter with a reduction in outside contractors and not filling some open positions.

Victor: For the fourth quarter, our engineering and development expense was $700000 down $150000 from the year ago fiscal quarter with a reduction in outside contractors and not filling some open positions.

Our SG&A cost for the fourth quarter was $4.8 million. So.

Victor: Our SG&A costs for the fourth quarter was $4 8 million similar to last year.

For the full fiscal year, our engineering and development expense for the fiscal year was $3.1 million, relatively flat with comparison to the year ago.

For the.

Full fiscal year, our engineering and development expense for the fiscal year was $3 $1 million relatively flat with comparison to the year ago period.

Our SG&A expenses in fiscal 23 were $16.9 million compared to $15.8 million in fiscal 2022.

Victor: Our SG&A expenses in fiscal 'twenty, three were $16 9 million compared to $15 8 million in fiscal 2022.

Due to increased variable compensation for bonuses.

Victor: Due to increased variable comp.

Victor: Asian for bonuses and sales commissions for sales higher sales as well as payroll and initial costs associated with unveiling in launching of the a Z T which includes conferences participation and hiring several salespeople.

Sales commissions for sales, higher sales, as well as payroll and initial costs associated with unveiling and launching of the AZT, which includes conferences, participation, and hiring several sales.

We reported net income of $5.2 million, or $1.09 per diluted share for the fiscal year September 30, 2023, compared to net income of $1.9 million, or $0.42 per diluted share, for the fiscal year ended September 30, 2022.

Victor: We reported net income of five.

Victor: $5 2 million or one point $1.09 per diluted share for the fiscal year September 32023, compared to net income of 1.9 million or 42 cents per diluted share for the fiscal year ended September 32022.

Victor: During the quarter during the last quarter of the fiscal year 2023. The company received an employment retention credit E. R. C of $2 1 million net of expenses.

During the last quarter of the fiscal year 2023, the company received an Employment Retention Credit, ERC, of $2.1 million net of expenses.

The ERC was not available in fiscal 2022.

Victor: E. R. C was not available in fiscal 'twenty to 'twenty two.

Victor: We had a tax benefit.

$0.5 million due to the release of the valuation allowance against our company's deferred tax asset.

Victor: Point $5 million due to the release of the valuation allowance against our company's deferred tax assets.

Included in the net income is stock compensation, a non-cash expense of $1.1 million.

Victor: Included in the net income is stock compensation and noncash expense of $1.1 million.

Victor: The company had cash and cash equivalents of $25 $2 million as of September 32023, compared to cash and cash equivalents of $24 million as of September 30th 2022.

The company had cash and cash equivalents of $25.2 million as of September 30th, 2023, compared to cash and cash equivalents of $24 million as of September 30th, 2022.

The cash and cash equivalents are considerably higher compared to cash and cash equivalents of $13.8 million for the quarter ended June 30, 2023, as significant cash flows were generated through the payment of receivable.

Victor: Cash and cash equivalents are considerably higher compared to cash and cash equivalents of $13 8 million for the quarter ended June 32023, as significant cash flows were generated through the payment of receivables.

including payment from financing sales provided to customers prior to fiscal year 2023.

Victor: Including payment from financing sales provided to customers prior to fiscal year 2023.

We believe this robust financial position allowed us to successfully implement this approach.

Victor: We believe this robust financial position allowed us to successfully implement this approach it.

it yielded positive results and we will entertain certain options if it meets our strictest criteria.

Victor: It yielded positive results and we will entertain certain options if it meets our strict criteria.

I also want to highlight that the Board of Directors approved a quarterly dividend of four cents per share payable on January 9, 2024, to shareholders of record on the close of business of December 22, 2023.

Victor: I also want to highlight that the board of directors approved a quarterly dividend of <unk> <unk> per share payable on January nine 2024 to shareholders of record on the close of business on December 22nd.

2023.

With that, I will turn it over to the operator to take your questions.

With that I will turn it over to the operator to take your questions.

Thanks Keith.

Thank you. At this time, we will be conducting our question and answer session.

At this time, we will be conducting our question and answer session.

If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate

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Victor: One moment, please while we poll for questions.

Thank you.

Our first question is coming from Joseph Nerges with Seagram Investments. Your line is live.

Our first question is coming from.

Speaker Change #11: Joseph Americas with secret investments your line is life.

Speaker Change #12: Good morning, guys. How are you today tomorrow and Germany's yeah, Okay, I see you must've hook up the market today, because the market and the stock is down like three points [laughter]. So I evidently it's in your in your press release, but let me explain what I think is going on with the big drop in our backlog people think that the.

Good morning, Joe. Morning, Joe. Okay, I see you must have shook up the market today.

So evidently it's in your press release. Let me explain what I think is going on.

With the big drop in the backlog, people think that obviously sales aren't there going forward. That's the concern. Yet in your press release you issued, you said that you thought there was...

Speaker Change #12: That obviously sales aren't there going forward.

Speaker Change #13: That's the kind of concern you had in your press release.

Speaker Change #13: <unk> you said that you thought there was a.

Speaker Change #13: Technology solutions, which of course is the bulk of our sales right now.

expecting a major contribution this year in 24, you're looking for good business with new customers and...

Speaker Change #13: Backing a major contribution there here in 'twenty for your European for good business with new customers and expanding existing customers. It is is that is that.

Is that what you're trying to convey, that you're expecting expanding technical service, technology solutions?

Speaker Change #13: What you're trying to convey that to you expected expanding technical service techs.

Speaker Change #13: <unk> technology solutions business segment.

Yeah, that's correct, Joe. We budgeted for significant growth in 2024. So so in effect

Speaker Change #14: Yeah, that's correct, Joe we budgeted for a significant growth in 2024.

So in effect.

dropping the backlog from last year to this year is not really going to cause a problem as far as what you were expecting for 24 growth, at least in that segment of the

Drop in our backlog from last year to this year is not really are going to cause a problem as far as what you were expecting for 'twenty for growth.

Speaker Change #14: Growth at least in that segment of the Oh not division going forward.

uh... uh... i'm not division going forward that's correct the backlog in effect you know crap crap

Speaker Change #14: Correct the backlog in effect.

Speaker Change #14: Granted it's down what was it 20 I forget what it was last year was $20 million or something like that that are that.

I forget what it was last year, it was $20 million or something like that, that we had because we couldn't get a lot of the orders.

Speaker Change #14: We had you know because of the we couldnt get the.

Speaker Change #14: A lot of the orders through the supply channel.

That's number one. So, we're really not concerned. The backlog may be low, but the business is not. It's back to pre-pandemic levels. Basically, we were just trying to talk about where the backlog was, where it is, because now it's not a factor any longer moving forward. It's pretty much business as usual for 95% of the products that we sell, and we're probably not going to be discussing it any further moving forward.

Speaker Change #14: So that's that's number one so we're really not concerned the backlog might be little bit.

Speaker Change #14: Right, it's back to pre Dimmock pre pandemic levels. You know basically we were just trying not to just you know talk about where the backlog was where it is because now it's not a factor any longer moving forwards, it's pretty much business as usual for 95% of the products that we.

Speaker Change #14: So and you know, we're probably not gonna be discussing it any further moving forward and a point I guess I'm asking is even though.

back to pre-pandemic levels, it has no effect on what you think. What we think is going to be business 24. We think it's...

Speaker Change #14: It's back to pre pandemic levels. It has no effect on what you think what we think is going to be business and 24, we think it could.

Speaker Change #14: To grow to grow the business and at least in a T S.

Yeah.

Correct Okay.

On the, of course, the AZT product, that's dynamic product, and I don't think people realize how much that.

On the course to ACP product that that's that's dynamic product and I don't think people realize how how much that.

Speaker Change #14: Who contribute to the future of this of this company and you said you added salespeople.

and they're responsible for bringing in.

Speaker Change #15: And they're responsible for bringing in new business or are we talking about new business beyond the two press releases.

We're talking about new business beyond the two press releases that were issued, one on the chemical company, one on the intelligence.

Speaker Change #15: One on the chemical company and one on the.

Western Intelligence agency business.

We have additional customers beyond that? Well, the pipeline, they're growing the pipeline right now, Joe. Okay. So, we have...

Do we have.

With me on that well.

Speaker Change #16: Well Theres a pipeline the pipe, they're there they're growing the pipeline right now Joe Okay. So we have a lot and and and.

When we're talking about the pipeline, are we talking about customers that are testing it?

Speaker Change #17: What we're talking about the pipeline are we talking about customers that are testing it.

Speaker Change #17: The product they're for sale.

Speaker Change #17: I assume some customers some of them some of them are doing P. O sees already still large fortune 500 companies are the largest companies out there. So the sales cycle might be a little longer but they're in there quite engaged right from the beginning a lot of them. We met him at the show, we talk to them and within a week or two they wanted to.

Some some of them some of them are doing POC's already. They're large fortune 500 companies They're the largest companies out there So the sales cycle might be a little longer But they're in they're quite engaged right from the beginning a lot of them We met him at the show we talked to him and within a week or two they wanted to to discuss

To discuss.

the product further, and some of them are already looking to set up a POC, either, you know, testing, yeah, yeah, proof of concept, but with the holidays, you know, some of it's getting pushed a little bit to the first quarter just because of Thanksgiving and Christmas, but they're quite engaged right from day one when we met them at the shows. Okay, great, well, that's understandable, just the time of year we're at right now.

The product further and some of them are already looking to set up a P. O C. Either you know.

Speaker Change #17: Testing, yeah, yeah proof of concept, but with the holidays you know some of it's getting pushed a little bit to the first quarter, just because of Thanksgiving and Christmas, but they're quite engaged right from day, one when we met them at the shows.

Okay great.

Understandable.

Time of year, we're at right now.

Talking about.

Now of course, two press releases issued.

Speaker Change #17: Never talked about the size of the contract and I assume that you know.

Speaker Change #17: Most of these people are gonna be paying on a monthly basis that that's the type of.

That's the type of over.

Speaker Change #17: Over a period of a number of years and they contracted out.

that correctly, we're talking about not up front payment for their software.

Speaker Change #17: That correctly, we're talking about not upfront payment for software mostly.

Uh huh.

Uh huh.

Now, the first C units that we put in there were just to buy it.

Yeah, no that there the first C. D units that we put in there were just to buy it outright and then you know as we expand these companies are so large Joe that you know 170 locations in and it was whether we boil the ocean and try to take all set.

outright. And then, you know, as we expand, these companies are so large, Joe.

that you know 170 locations and it was whether we boil the ocean and try to take all 170 down and that would take about a year to two years they said to get that.

Speaker Change #17: Hundred and 70 down and that would take about a year to two years, they said to get that processed or do we start seeding it and one or two of their locations and expand from there like you know one of the government agencies were already talking to several different locations. Some of them had some you know money left over and they wanted to.

Processed or do we start seeding it in one or two of their locations and expand from there like, you know One of the government agencies were already talking to seven different locations Someone's had some you know money left over and they wanted to you know, cut peels right away. So, you know right now It's about customer engagement Getting them to test it buy it, you know and evangelize when we need, you know references moving forward But

Speaker Change #17: You know cut pills right away. So you know right now its about customer engagement I'm getting them to test it buy it you know and evangelize why do we need you know references moving forward.

Some of them.

In both cases, they're rolling out the App.

software.

The software.

And it's.

Let's put it that way. You said that one case, you're talking about 170 plants.

It was worth that way.

Speaker Change #17: Instead of one case, you talked about 170 plants well.

Unfortunately, we have to talk to all 170 plants because they all have separate budgets. So we're going to knock one down at a time. But to get our product inside their environment, saying it's running, it's working, was one of the most important factors and we did it quickly, with less than 60 days from beginning to end.

Speaker Change #17: You can write unfortunately, unfortunately, we have to talk to all of 170 plants because they all have seven separate budgets. So you know we're going to knock one down at a time, but to get to get our product inside their environment, saying, it's it's running it's working was you know one of the most important <unk>.

Speaker Change #17: Actors and we did it quickly right with less than 60 days from beginning to end, so I guess going back in and then.

Speaker Change #17: From an idea from a charge standpoint, I'm, assuming we bill on the basis of how many items are being now how many devices are being protected or the case would you call endpoints the more endpoints, we protect the higher the bill.

idea from a charge standpoint I'm assuming we bill on the basis of how many items are being how many devices are being protected or in the case what you call end point

The more endpoints we protect, the higher the bill. Correct. Okay, so as we roll it out little by little, supposedly the bill will increase.

Speaker Change #18: Correct, Okay. So as we roll it out a little by little.

No.

The bill increasing little by little let's put it that way.

Spanning within their divisions.

Yeah.

Yes, some some some departments will have to purchase it outright and you know Some of them will want to pay on a monthly basis or yearly basis most likely, right? You know a three-year deal and paid it each and every year

Yeah. So some some some departments will have to purchase it outright and you know some of them will want to pay on a monthly basis or a yearly basis, most likely right.

Speaker Change #18: I had a three year deal and paid it each and every year when it comes to in cases, it just depends on how the departments decide.

Speaker Change #18: Some cases, its the departments will make the decision of whether they want to buy or lease basically pretty much yes. Okay.

the departments will make the decision on whether they want to buy or lease, basically. Pretty much, yes.

Speaker Change #18: On the cash I assume the cash a lot of the cash that we have as is.

short-term treasury bills or how do we have that going Jerry is that you have a fair amount and you're rolling over a short-term treasury

Speaker Change #19: Short term treasury bills or how do we have that go on that.

Speaker Change #19: Do you have a fair amount you're rolling over in short term treasuries or.

Yeah, we roll them over and save that and stay in some money market funds. But yeah, we're rolling them over short term.

Speaker Change #20: Yeah, we roll them over and say that and stay in some money market funds, but yeah, we're rolling them over short term.

Okay.

And Logitech, how are they doing it now that I realize that you just...

And lots of deck, how hard they are doing now I realize that.

P are on that.

The Australian partner.

Australian partner, have they been able to...

Hey been able to.

I have the same let's say initial success that we're having as far as the interest in Australia, yeah, they're generating opportunities that we're working.

the same, let's say, initial success that we're having as far as interest in Australia? Yeah, they're generating opportunities that we're working.

Speaker Change #20: With them hand in hand, okay.

That's all I've got right now. It sounds like it would be great to place an end across the AZT product that's changed HPP dramatically.

Speaker Change #20: Alright, that's all I've got right now it sounds like a great price and of course, the ATP product has changed.

Speaker Change #20: P dramatically from where I'm sitting though.

Yeah, we're excited. You know, all the feedback has been positive. No one has said, oh, I don't see the value in this. I don't understand it. We're definitely changing people's, you know, the way they look at securing endpoints in the application.

Speaker Change #20: Yeah. We're excited you know all the feedback is is it's been positive no. One has said Oh I don't see the value in this I don't understand it we're definitely changing peoples you know the way they look at securing endpoints and the application.

So, the conversations are happening frequently, and they're getting it. Yeah, and just one more question. You know, Australia is an example, but there's got to be additional countries out there that are demanding the same kind of reporting requirements that are being required by the U.S. and Australia. So, is there an opportunity now to establish?

Speaker Change #20: So it is the conversations are happening frequently and they're getting it and just one more question.

Speaker Change #20: Australia as an example, but there should be there's got to be additional countries out there that are demanding the same kind of reporting requirements that are being required by the U S and Australia. So is there an opportunity now to establish how can I say, it's a similar operations from from managed security.

How can I say it? Similar operations from managed security service providers in these other countries, like UK.

Speaker Change #21: Service providers in these other countries like U. K example, so of course, Germany. Yeah of course, you're always just the size of our organization kind of you know.

Of course, yeah of course Joe, it's just the size of our organization kind of, you know.

Prohibits us, you know moving as fast as we would like to write, you know, it's as I said, you know TS has been

Speaker Change #21: Prohibits us from you know moving as fast as we would like to write you know it's as I said you know T. S has been.

It's been doing so well that it paid for all the development of this new product, but in, you know...

Speaker Change #21: It's been doing so well that it paid for all the development of this new product, but and you know.

The HPP is truly a startup organization, right? With a new product that.

Speaker Change #21: The H B P is truly a startup organization right with the new product. That's that you know we believe is game changing but yeah. It's just the size right now, but where we're working as hard and is as efficient as we possibly can to try to talk to as many people and like I said, we've rolled it out and we did as many shows that we.

that, you know, we believe is game-changing. But yeah, it's just the size right now, but we're working as hard and as efficient as we possibly can to try to talk to as many people. And like I said, we've rolled it out and we did as many shows that we could get ourselves into. And the feedback was really, really good. And like I said, we have 50 opportunities that we're working right now, just from those couple of shows that we did, you know, over the last couple of months.

Speaker Change #21: Could get ourselves into and the feedback was really really good and I like I said, we have 50 opportunities that we're working right now just from those couple of shows that we did.

Speaker Change #22: You know over the last couple of months 50 opportunities that would yeah over 50, yeah over 50 Yep over 50.

Yeah, over 50. Yeah, over 50. Over 50. How many people do we have in the UK? I know we have a very, very small sales force over there. We still have a couple people over there.

Speaker Change #21: Why do we have how many people do we have in the U K I know, we have a very very small sales force over there.

Speaker Change #21: I have a couple of people over there and yeah, we do.

yeah are they up to snuff on this hey uh i'm really they really are kind of like technology solution type

Yeah.

Up to snuff wrong there.

Speaker Change #23: They really are kind of like technology solutions. Our sales people that are correct as opposed to H P. P salespeople correct, but they're familiar with the product and yeah. They all are we cross trained all of our salespeople on a Z T. So they're able to sell at least ask the right questions and then engage the a D. A.

salespeople. Is that not correct? As opposed to HPP salespeople? Correct. But they're familiar with the product. Yeah, we cross-trained all our salespeople on AZT so they're able to to at least ask the right questions and then engage the the engineers on the AZT side when there's an opportunity. And some of those opportunities that we're working right now came from the TS side.

Speaker Change #23: G&A is on the AZ T side, when there's an opportunity in some of those opportunities that we're working right now came from the T S side.

Alright, well thanks a lot guys, it's really exciting going forward and I appreciate the

Speaker Change #24: I'm sure all right well. Thanks, a lot guys I was just really exciting going forward and I appreciate the time. Thanks.

Yeah.

Thank you.

Our next question is coming from Mike Price, who is an investor. Sir, your line is open.

Our next question is coming from Mike price, who is an investor Sir Your line is life Oh. Good morning. Thanks for the time to ask some questions are can you give us an idea of how big you think the market opportunity is for S. E T.

Good morning. Thanks for the time to ask some questions. Can you give us an idea of how big you think the market opportunity is for AZT?

Multibillion.

Okay. And that being said, you know, it's nice that you're having conversations with 50 potential customers, but going back two quarters ago, you said that a problem CSPI has is a lack of name recognition.

Okay and that being said you know, it's nice that you're having conversations with with 50 potential customers, but going back two quarters ago, you said that the problem C. S. P. I has as a lack of name recognition in last quarter. After the introduction of a C. T. I asked the question of not having name recognition is it.

and last quarter after the introduction of the of easy t i ask the question of not having written name recognition is it not

Speaker Change #24: What better and more efficient to partner with somebody that does have name recognition and your response was that you've only been in the market for 30 days. So but the question now is do potential customers more than 50, no C. S P I and potential competitors and potential partners.

better and more efficient to partner with somebody that does have name recognition and your response was that you've only been in the market for 30 days so but the question now

Do potential customers more than 50 know CSPI and potential competitors and potential partners?

Speaker Change #24: Is it not more efficient because a lot of times.

Is it not more efficient because a lot of times the best product

The best product.

doesn't even get seat in the market because it's not the fastest introduced to the market.

Doesn't even get seed in the market because it's not the fastest introduced to the market.

I agree with that and we are talking to and we have signed some of the largest security

Speaker Change #24: I agree with that and we are talking to and we have signed some of the largest security.

resellers and integrators in the market space, and we started working opportunities with them. We definitely, you know, we use as much marketing money with all the shows, and then we targeted, you know, the top 20 or 30.

Speaker Change #24: Resellers and integrators in the market space and we started working opportunities with them. We are we definitely.

Speaker Change #24: You know we use as much marketing money with all the shows and then we target as you know the top 20 or 30 security focused resellers integrators, and we started talking to all of them. Some of them. We met at the shows that while we were there they saw the need and actually some of them reach out to us.

security focused resellers, integrators. And we started talking to all them. Some of them we met at the shows while we were there.

They saw the need, and actually some of them reached out to us directly on large, large opportunities they had in the healthcare industry, protecting Microsoft OS systems and Android that were working in conjunction with them. So we are trying to get our name and using the reputation from these large security resellers, you know.

Speaker Change #24: Correct Lee I'm, a large large opportunities they had in the health care industry are protecting Microsoft Huawei systems in Android that we're working in conjunction with them. So we are trying to get our name and using our reputation from these large security resellers as fast as possible.

but they have a stringent, you know, they don't take on every single security partner. So we have, I think, been fortunate that two of the largest ones already signed, you know, contracts with us to represent AZT and ARIA.

Speaker Change #24: But they have a stringent you know they don't take on every single security partner. So we have I think been fortunate that two of the largest ones already signed contracts with us to represent a Z T N area.

Okay.

Okay. Last quarter, I asked, and I think Joe Nergist asked also about using funds to buy shares. And prior to today, the stock had doubled. Did you buy any shares during the quarter?

Last quarter, I asked and I think Joe near just asked also about <unk>.

Speaker Change #24: Using funds to buy shares and prior to today. The stock had doubled did you buy any shares during the quarter.

No no.

okay with what's happening today's is not provide an opportunity with twenty five million in cash

Okay, well with what's happening today is there's not provided opportunity with $25 million in cash.

I mean, the stock's down 25% today.

Speaker Change #24: I mean, the stocks down 25% today I mean is this.

And the thought process.

It is in the thought process, we talked about it this morning.

Gary and I. Yeah. Okay. And the final question I have, prior to today, it's great, since the last conference call, that the stock price has doubled, but what shows today is the, you know, small float in the illiquidity. You know, I couldn't sell a measurable number of shares to take a profit, and Victor, you couldn't, and Joe Nergis certainly couldn't. So the question is, you know, the market cap here is, what, $90 million.

Gary and I Oh.

Okay and the final question I have prior to today, it's great since the last conference call that the stock price has doubled but what shows today.

Speaker Change #25: Is the you know small float in the illiquidity, you know I couldn't sell a measure measurable number of shares to take a profit and Victor you couldn't didn't Joe nurtured certainly couldn't.

Speaker Change #25: So the question is you know the market cap here is what $90 million.

And looking at somebody like Adregos, who I assume is a competitor, recently raised $200 million with a $1.7 billion valuation. It seems like a big discrepancy between a CSPI and somebody like that where CSPI supposedly has, you know, a revolutionary product and you think it's as good or better than anything out there. Can you address that and how we close the gap?

Speaker Change #25: Looking at somebody like a dray goes who I assume it's a competitor recently raised $200 million with a 1.7 billion dollar valuation it seems like a big discrepancy between the C. S. P. A and somebody like that where C. S. P. I supposedly has.

Speaker Change #25: Though a revolutionary product and you think its as good or better than anything out there.

Speaker Change #25: Can you address that and how we close the gap.

You know, we actually, we saw, you know, we talked to Dry Ghost while they were at the show too, you know, and the thing is, they're truly not a competitor. We will compliment what they do. They have gaps. Um, and our product would actually compliment with them. So there's, you know.

Speaker Change #26: You know we actually we saw as you know we talked to dry goes while they were at the show to you know and the thing is then that truly not a competitor we will complement what they do they have gaps.

Speaker Change #26: And our product would actually complement with them. So there's you know.

We would love to talk to companies like that. There's really no one out there that's doing exactly what we're doing on the application the way we're doing it at the BIOS core level.

Speaker Change #26: We would love to talk to companies like that there's really no one out there that's doing exactly what we're doing on the application and the way we're doing it at the Bios core level.

Speaker Change #27: Okay. So if you're not exactly like it that seems that C. S. P. A C. S. P. I N E Z T should have more value. If in fact, the market is aware of it with a multibillion dollar market opportunity.

Okay, so if you're not exactly like it, that seems that CSPA, CSPI and AZT should have more value if in fact the market is aware of it with a multi-billion dollar market opportunity.

I mean, what am I missing here?

Speaker Change #27: I mean, what am I missing here.

Am I missing here.

You're not, but like, you know, the product was released in the July and we're evangelizing and rolling it out as fast as possible.

You're not but like you know the product wasn't released end of July and we're evangelizing and in rolling it out as fast as possible.

Yeah.

Okay, all right. And Dragos has been doing it for years, you know.

Okay, Alright, and triangles who's been doing it for.

Yes, you know.

So, you know, they've been at it a little longer than we have when it comes to this product. No, no, no. I appreciate the fact that they've been doing it longer, but I'm talking about the discrepancy in the valuation. Sure, it might take you a while to get in there, but you're valued at $90 million and they've got a valuation of $1.7 billion. I mean, that's a huge discrepancy.

So I you know they've been they've been at it a little longer than we have when it comes to this this problem no no no I. Appreciate I appreciate the fact that they've been doing it longer but I'm talking about the discrepancy in the valuation it sure it might take you a while to get in there, but your valued at $90 million in there got a valuation of 1 billion seven I mean, that's a huge.

Discrepancy so.

Okay. Well, it looks cheap to me here. It looks awfully cheap at 17 and a half. So, okay, I appreciate your time. Keep up the work. Thank you. Have a great day. Bye.

Okay.

Well it looks cheap to me here it looks awfully cheap at 17 and a half so okay. I appreciate your time keep up the work. Thank.

Speaker Change #28: Thank you have a great day bye.

Speaker Change #29: Thank you. Our next question is coming from breast Davidson, who is a private investor.

Thank you. Our next question is coming from Bresh Davidson, who is a private investor. Your line is live.

In his life.

Good morning, I'm going to wrap up.

Okay.

Hum.

The EZT thing, so, you know, you can sell it, you can do it on a subscription model.

The easy thing. So you know can sell it you can do it on a subscription model.

Um, how long does it take to roll this out? So, so you sign a contract tomorrow? Um, what's involved in rolling this out to him?

Speaker Change #30: How long does it take to roll this out so so you sign a contract tomorrow.

Speaker Change #29: What's involved in rolling this out to a customer.

What makes our product, which I've spoken in the past about, is we can be rolled out.

Speaker Change #29: While it makes our product, which I've I've spoken in the past about it is we can be rolled out very very quickly you know we've done a thousand endpoints in less than an hour. There's some a little tweaking after the fact, but you know the way we were.

very, very quickly. We've done 1,000 endpoints in less than an hour. There's a little tweaking after the fact, but the way we.

we roll our product out is like a driver. It goes on the system, then it expands, and then it goes and looks out at all the applications. You ask a few questions, and it starts protecting immediately. You know, within that hour timeframe, you're up and running. And there's a little tweaking that goes on, but very, very minor. You know, when we rolled out the last couple, you know, it was a couple hundred end points, and it was done in less than 30 minutes. You know, we built it.

Speaker Change #29: We roll a product out is like a driver it goes on the system than a expands and then it goes and it looks out at all the applications. You asked a few questions and then started protecting immediately you know within that what's you know that our timeframe, you're up and running and there's a little tweaking that goes on but very very minor.

Speaker Change #29: You know when we rolled out the last couple you know you know it was a couple of hundred endpoints and I you know it was done in less than 30 minutes.

Speaker Change #29: You know we built it in conjunction with.

customers feedback. And that was the biggest thing, especially when we developed it for the OT space that you cannot have downtime in manufacturing facilities at all. And that's the difference with our product. You roll it out. It does not need a

Speaker Change #29: Customers feedback and that was the biggest thing, especially when we developed it for the O T space that you cannot have downtime and manufacturing facilities at all and that's that's the difference without product you roll it out it does not need to reboot and that's really really big competitor.

And that's really, really big compared to all the other products that kind of do what we do, but not really, you need a reboot takes a long time. It takes months to roll out and ours is done very, very quickly and efficiently.

Speaker Change #29: All the other products that kind of do what we do but not really you need to reboot. It takes a long time it takes months to roll out and ours has done very very quickly inefficiently.

And that adds tremendous expense in a manufacturing environment.

Speaker Change #29: And that adds tremendous expense in a manufacturing environment.

Yeah, I can see where it would be a big advantage. Yeah, see, that's the difference. A lot of times with other products, you would have to have those systems be taken down. And the way we roll it out, the system does not have to be taken down. It could still be working and doing what it needs to do in conjunction with us, you know, implementing our product inside that environment. No downtime. So that ends.

They can see whether it would be a big advantage yeah. That's a deal with a lot of times with other products you would have to have those systems speed be taking down and.

Speaker Change #29: And the way we roll it out the system does not have to be taken down it could still be working and doing what it needs to do in conjunction with US you know implementing our product inside that environment no downtime.

Speaker Change #29: So that ends up affecting the <unk>.

the value proposition here because that's kind of like a hidden expense and competitive price.

Uh huh.

The value proposition here, because that's kind of like a hit the expense and competitor right.

So, you know, if you're rolling this out on to, you know, let's say it's a business with 10 sites.

So you know if you're rolling this out on top.

Speaker Change #29: So you know, let's say, it's a business with 10 sites.

I mean, is this something that the physical location matters? So you're going to do.

Speaker Change #31: Is this something that the physical location matters, so you're going to do.

one site at a time, or does this depend on what their IT infrastructure, how that's set up, and you can literally just blanket 10 locations at once? We could do 10 locations at once. We could do 100 locations at once. It does not matter. All we need is just access what they want us to do it, or we could walk it through. The one rollout that we did with that government agency at that one location, we were not

Speaker Change #31: One site you know at a time or does it depend on what the right infrastructure, how that's set up and you could literally just blanket 10 locations at once.

Speaker Change #32: We could do 10 locations at once we could do 100 locations at once it does not matter. All we need is just you know access what they want us to do it or we could walk walk it through the one rollout that we deal with that government agency at that one location we were not.

um able to um you know have any access to that whatsoever it's closed environment and we just walked them through it and they within you know less than an hour they were up and running and they had never touched the product.

Speaker Change #32: Able to you don't have any access to that whatsoever, it's closed environment.

Speaker Change #32: And we just walk them through it and they were within you know less than an hour. They were often running and they had never touch the product in their life.

Now, when you say you walked them through it, was this, you know, physical on site or was this? No, no, we weren't. No, just over the phone. We weren't. We had no access to the site, nor did we have access to their systems. So, you guys don't even have to be physically present.

Speaker Change #33: Now when you say you walk them through it was this you know physical on site or was this no no. We weren't nope just over the phone we werent, we had no access to the site Oh do we have access to their systems.

Speaker Change #33: So you guys don't even have to be physically present took to walk them through correct got it.

So then all of the time sucked up in this process is all going to be in the sales cycle.

So then all of the time sucked up in this process is all going to be in the sales cycle.

Speaker Change #33: On the sales cycle. So once you get the dotted line, you're you're ready to go it can it can roll this out.

So once you get the dotted line, you're ready to go and can roll this out.

As fast as they want it rolled out, we can help them.

Hum.

SaaS is they don't want it rolled out we can help them.

Speaker Change #33: So I mean, the press releases in the past.

past few weeks have been great. You know, with with 50 of these things in the in the cycle, I mean, is

Speaker Change #33: Last few weeks have been great.

Speaker Change #33: You know with with 50 of these things in the in the cycle I mean is.

Is this something we can anticipate on maybe a more frequent basis that these things are going to be rolling out announcing these new relationships?

Speaker Change #33: Is this something we can anticipate maybe a more frequent basis that these things are going to be rolling out announcing these new relationships.

Yeah, the significant ones I'm going to say, you know, we're evangelizing as much as we can we're trying to get people to to see the Announcements, you know some of these larger ones that we're working on. I'm definitely, you know, we announcing those As soon as they hit

Speaker Change #33: The significant ones I'm going to say you know, we're we're evangelizing as much as we can we're trying to get people to to see the announcements you know some of these larger ones that we're working on I'm definitely you know be announcing those.

Speaker Change #33: As soon as they hit.

Got it. And the last thing I just want to touch on, I know that the cruise ship thing was still winding back up. Is that.

Speaker Change #33: Got it and then the last thing I just wanted to touch on I know that the cruise ship thing was still.

Speaker Change #33: Winding back up is that.

Has there been any headway making, getting that, getting those jobs started back up? Yeah, we started doing, we started doing some cruise line work again, a little in a little different aspect. They're doing a NAC solution. So we're starting to roll out at different locations for the network access control. So yeah, that business started picking up again and, you know, we had people in Japan this week on, on some boats.

Speaker Change #33: Has there been any headway, you're making getting that I'm getting.

Speaker Change #33: Those are jobs started bathroom [laughter] yeah.

Yeah, we started doing.

We started doing some cruise line work again, a little in a little different aspect, they're doing a knack solution. So we're starting to roll out at different locations for the network access control. So yeah that business started picking up again and you know we had people in Japan. This week on on some boats and.

So yeah, they gave us a nice schedule in the past and that schedule hasn't come up. It's more like, hey, I need you here in two weeks or three weeks. It's sporadic where the other ones were like, here's the next 12 ships, here's the next 12 dates. This is when we need you. It was easy to plan for and that's not happening. So we're doing business with them. It's just not as organized as it once was.

Speaker Change #33: So yeah, it's it's not it.

Speaker Change #33: They gave us a nice schedule in the past and that schedule hasn't.

Speaker Change #33: Now come up it's more like Hey, I need you here in two weeks or three weeks, it's sporadic where the other ones were like here's the next 12 ships here in the next 12 dates. This is when we need you. It was easy to plan for and that's not happening. So we're doing business with them. It's just not as organized as it was once was.

Yeah.

And maybe one more follow-up question. So the AZT thing, you know, I saw the Western Intelligence, and we're talking about manufacturing, and you also mentioned healthcare. Are there any other areas that kind of jump out where this would be a really good fit?

And maybe one more follow up question. So so the easy T think I saw that.

Speaker Change #33: The Western intelligence and we're talking about manufacturing and you also mentioned health care Hum.

Speaker Change #33: Are there any other areas that kind of jump out where this would be a really good fit.

It's really anywhere, right? Because when we first rolled out the announcement, it was, we focused because we worked with, I told you some large manufacturing companies. So we focus on the OT space, zero downtime. When we rolled that out, we rolled it out into the Windows world at first, and then we rolled it out into the Linux world. So we have both.

Speaker Change #34: It's really anywhere right because when we first rolled out the announcement. It was we focus because we worked with the I told you. Some large manufacturing companies. So we focus on the Ot space zero downtime when we roll that out we rolled it out into the Windows World at first and then do we rolled it out.

Speaker Change #33: Into the Linux World. So we have both.

No.

different type of operating systems that we can support. And one of our key factors compared to anybody who thinks they play in this space is that we go all the way back to XP in the early versions of Linux, right? Most companies are only doing one or two versions back. We're supporting all the way back.

Different type of operating systems that we we can support and you know one of our key key factors compare to anybody who thinks they play in our space is that we go all the way back to XP in the early versions of Linux right. Most companies are only doing one or two versions back we're supporting all the way back.

Like I said, to XP. So that's definitely a game changer for us, especially in the OT space, because a lot of these manufacturers don't update or upgrade their systems, because again, I mentioned, you know, zero downtime. And now, you know, the latest version that we're rolling out right now is for the IT environment.

Speaker Change #33: So like I said to X P. So that's definitely a game changer for us, especially in the Ot space because a lot of these manufacturers don't update upgrade their systems, because again I mentioned, you know zero downtime and now you know the latest version that where we're rolling out right now is for the I T environment.

to where, you know, it allows, you know, patching, we can schedule things. So we're rolling that out, you know, as we speak. You probably see it, and I'm announcing it now, but you'll see an announcement that we're also rolling out a full IT.

Speaker Change #33: To where you know allows you know patching, we can schedule things. So we're rolling that out you know as we speak you'll probably see it and I'm not saying it now, but you'll see an announcement that were also rolling out a full I T.

product lines version of AZT.

Speaker Change #33: Product line version of a Z T.

And that would be for, like, data centers and yeah, so that's going to be a significant number of points that you guys could could hit.

Speaker Change #33: And that would be for like data centers and mhm.

Speaker Change #35: Got it yeah. So that's gonna be a significant number of points that you guys could get hit.

Correct, correct. And you know, we're talking to some financial institutions right now. We're also going to talk to our managed service customers that we're supporting right now about, you know, potentially...

Speaker Change #36: Correct, correct and you know we're talking to some financial institutions right. Now we're also going to talk to all our managed service customers that where we're supporting right now about you know potentially.

increasing their monthly spend by rolling out AZT on their IT servers to protect their application at the core level.

Speaker Change #36: Increasing their monthly spend by rolling out easy T. On there I T servers, you know to protect their application at the core level.

Speaker Change #37: That's quite a few endpoints.

Yeah, quite a few endpoints. Yeah, we're going to talk to every one of our managed service customers. You know, some of them will say yes, some of them will say no, just depends on budgets. But, you know, that's what's going on right now with this conversation is happening as we speak with some of our larger MSP customers. Nice. Well, thanks so much for the caller and look forward to continued success.

Speaker Change #37: Yeah quite a few endpoints yeah, we're going to talk to every one of our managed service customers. You know some of them will say, yes. Some of them will say no just depends on budgets, but you know that's that's what's going on right now with this conversation is happening as we speak with some of our larger.

S B customers.

All right well, thanks, so much for the color and.

Speaker Change #37: Look forward to continued success there.

Speaker Change #37: Thanks have a good one happy holidays.

Thank you.

Thank you. Ladies and gentlemen, if there will be any final questions or comments, please indicate so now by pressing star 1 on your telephone keypad.

Thank you.

Decent gentlemen, if there will be any final questions or comments. Please indicate so now by pressing star one on your telephone keypad.

Thank you.

We have a question from Paul Scolardi, who is a private investor.

We have a question from Paul <unk>, who is a private investor.

<unk> life.

Hello, gentlemen, I have several questions. The first one is.

Hello, gentlemen, I have several questions. The first one is you have a revolutionary unique product.

Speaker Change #38: You have a revolutionary unique product.

in this AZT, you're a smaller, unknown company, and why not go partner with a Dragos or even like a Palo Alto or one of these big cyber security companies?

Speaker Change #38: In this age E T.

Speaker Change #38: There are smaller unknown company.

Speaker Change #38: And why not go partner with the drag goes or even like a.

Speaker Change #38: Palo Alto or one of these big cyber security companies that have the relationships.

have the relationships that can get this revolutionary product out there quicker than you can on your own. That's my first.

Speaker Change #38: That can get this revolutionary product out there quicker than you can on your own that's my first question.

Yeah.

Um, that's I think I mentioned it earlier, you know, we are talking to, you know, all types of, you know

That's I think I mentioned it earlier you know we are talking to you know all types of you know the manufacturers' right people, who are in that space I can't mention who we're talking to now, but there's quite a few conversations going on with companies that are in that security space.

the manufacturers, right? People who are in that space. I can't mention who we're talking to now, but there's quite a few conversations going on with companies that are in that security space that we would compliment. We would go side by side with, we don't compete with, and we would enhance the overall security performance.

Speaker Change #38: That we would complement we would go side by side with we don't compete with and we would enhance the overall security performance.

you know, in every potential environment. So yeah, those conversations are going on right now.

Speaker Change #39: You know and every potential environment. So those conversations are going on right now.

Okay, and I assume if something happens, we're gonna hear about it, correct? You will hear about every exciting news that comes across.

Speaker Change #39: Okay, and I assume if something happens we're going to hear about it correct.

Speaker Change #40: You will hear about every exciting news that comes across.

the board. I hope you guys see that I'm trying to share all the information as it comes across as soon as possible.

Speaker Change #40: The board I I Hope you guys see that I'm trying to share all the information as it comes across as as a as soon as possible.

Well, yeah, I mean, if I if I may be brutally honest and with all respect, you have done an excellent job, I think, with press releases up until today. And I think why we're seeing the reaction in the stock.

Speaker Change #41: Well, yeah, I mean, if I.

Speaker Change #42: If I may be brutally honest and with all respect you have done an excellent job I think with press releases up until today and I think why we're seeing the reaction in the stock right. Now is because you did a poor job of it.

Right now is because you did a poor job of explaining the excitement that you have now on the call and the opportunity like the reseller contracts, the going into that this can go into the networks all network endpoints. Also, the massive camp. You did a poor job on the press release.

Speaker Change #42: Explaining the excitement that you have now on the call and the opportunity like the reseller contracts.

Speaker Change #43: Going into this thing go into the networks All network endpoints also the mass appeal you did a poor job on the press release.

capturing all the excitement on AZT. So my question is.

Speaker Change #44: Capturing the excitement on easy. So my question is the number one part of your job is execution and Youre doing a great job at that without question, but you also have a responsibility to shareholders and the fact that you're a small company with a very small float and.

The number one part of your job is execution, and you're doing a great job at that without question. But you also have a responsibility to shareholders in the fact that you're a small company with a very small float, and that nobody knows about this company, this story, or this opportunity. I like to say you're at the Super Bowl, and nobody knows that you're playing.

Speaker Change #44: Nobody knows about this company this story or this opportunity I like to say Youre at the Super Bowl and nobody knows that you play. So what is your strategy to enhance shareholder value since the core press release today. The stock shareholders are suffering for what is a massive opportunity like right now the stock is at.

So, you know, what is your strategy to enhance shareholder value since, you know, with the poor press week today, the shareholders are suffering for what's a massive opportunity. Like right now, the stock is at one time sales plus cash. It's profitable. It pays a dividend. It has a great balance sheet and it has a really massive opportunity.

Speaker Change #44: One time sales plus cash it's profitable and it has a great balance sheet and it has a really massive opportunity in front of it. So how are you going to get the story to wall Street, there's massive opportunity number one is I hope we're going to hear about every contracts like why didn't we hear about all these reseller contracts.

in front of it. So how are you gonna get the story and connect to Wall Street, this massive opportunity? Number one is I hope we're gonna hear about every contract. So why didn't we hear about all these resellers?

And if you look in the news lately, you've got utilities are being attacked, water utilities, electric utilities, China attacks in the last 24 hours. There's massive highlight on operational technology cybersecurity. You have a unique radical product. Nobody knows about it. So shareholders will suffer until that connection is made. So I wanna know what you're gonna do different.

Speaker Change #44: And if you look in the news lately you've got utilities.

Speaker Change #44: Water utilities electric utilities, China attacks.

Speaker Change #44: The last 24 hours there is massive.

Speaker Change #45: Highlight on operational technology Cyber security you have a unique radical product nobody knows about it so shareholders will suffer until that connection with me. So I want to know what are you gonna do different and.

going forward to get this story connected to Wall Street for enhanced shareholder value. Because it's a great story, but nobody knows.

Speaker Change #45: Going forward to get this storage and that did.

Speaker Change #45: Wall Street for enhanced shareholder value, because it's a great story, but nobody knows about it.

Yeah, I think we talked about that this whole conversation, right? You know, we're doing events. I'm talking to partners. We're talking to, you know, distribution lines where, you know, you know, as I have said, you know, the shareholders, I think, you know, their expectations sometimes may be a little bit.

Speaker Change #45: Yeah, I think we talked about that this whole conversation right. You know we're doing events I'm talking to partners. We're talking to you know distribution lines, where you know you know as I have said you know the shareholders.

Speaker Change #45: Thank you know their expectation, sometimes maybe a little bit.

Out of whack offline where you know, they want a dividend. They want it to be increased They want us to have earnings for share and they want us to you know, self-fund a startup, right? So it's it's you know at this stage of the game, we you know enhanced our marketing budget by 10x

Speaker Change #45: Out of whack offline, where you know they want a dividend they want it to be increase they want us to have earnings per share and they want us to you know sell find a startup right. So it's it's you know at this stage of the game, we enhanced our marketing budget by 10 X you know that we normally did we hired salespeople there.

you know, that we normally did. We hired salespeople that are industry leader salespeople that, you know, um, frankly cost a lot, right? But we figured we'd get better quality. We able to get into the oil and gas. Talk to these some of these large manufacturers and companies, oil gas companies directly that they had relationships in the past.

Speaker Change #45: That are industry leaders salespeople that you know.

Speaker Change #45: Frankly cost a lot right, but we we figured we'd get better quality, we able to get into the oil and gas talk to these some of these large manufacturers and companies are oil gas companies directly that they had relationships in the past and yeah. You know that's what we're doing right now so and we're using the largest resell.

Um, and yeah, you know, that's what we're doing right now. So, and we're using the largest resellers in the security space with those conversations, but as I mentioned.

Speaker Change #45: It was in the security space with those conversations, but as I mentioned.

These companies get, you know, their doors get knocked on constantly on small security companies, right? I think there's over 6,000 small security companies out there wanting them to represent them. So we have to go through.

These companies get.

You know their doors getting knocked on constantly on small security companies right I think there's over 6000 small security companies out there wanting them to represent them. So we have to go through.

you know, 100 page, you know, form that we have to fill out, why we're different, just the whole, the whole thing, you know, us, you know, and they don't want to pick up a product that the company is going to be out of business in a year or two, because they're not funded correctly. There's a lot that goes into it. It's not just about ringing the doorbell saying, you know, would you want to buy some cookies? I'm here. So there's a lot that goes into that. No, my question more was your communication with the street.

Speaker Change #45: You know 100 page you know a forum that we have to fill out why would different just the whole. The whole thing you know US you know and they don't want to pick up a product that the company is going to be out of business in a year or two because they're they're not fun to correctly theres a lot that goes into it it's not just about ringing the doorbell, saying you know would you want to buy some cookie.

Speaker Change #46: I'm here. So there's a lot that goes on that was that my my question more was your communication with the street in getting the story that's execution Youre doing a great job there like I'm talking about why didn't you know doing press releases you got some good new resellers, we don't know about that you have.

you know getting the story out that's execution you're doing a great job there like i'm talking about why do you know

doing press releases, like you got some good new resellers. We don't know about that. You have 50 opportunities. Yeah, but these are hot off the presses, right? We had a call immediately while these are, literally the ink's still drying on some of these things. So you'll see things rolling out, but we were having this press conference today and I knew a lot of this would be coming out today. And you'll see a lot of things coming out in the next two or three, four weeks.

Speaker Change #47: But these are hot off the presses right. We had a call immediately beef. While these are literally the ink still drawing on some of these things so you'll see things rolling out, but you know we were having this press conference today and I know a lot of this would be coming out today and you know you'll see a lot of things coming out in the next two or three or four weeks and semi.

and hopefully some exciting news on some opportunities that are closing.

Speaker Change #47: Hopefully some exciting news on some of the opportunities that are close to closing.

Okay. Yeah. And I think that's where, you know, taking on a strategic investor, even with, with a big name,

Speaker Change #48: Okay, Yeah, and I think that's where you get.

Speaker Change #48: Taking on a strategic investor event.

Where the big name.

And it sounds like you're talking to those. I think that would be a great way.

It.

It sounds like you're talking to those I think that would be a great way as.

Speaker Change #48: As well to give you guys the name and the resources to rapidly expand this because you have such a low structure, you're selling software, it's not going to take a lot of sales that can work for another company to drop a lot of NPS and the bottom line last question.

If you have such a low structure, you're selling software, it's not gonna take a lot of sales like it would for another company to drop a lot of EPS from the bottom line. Last question, obviously it's a small equity structure. At some point in the future, would you consider a forward stock split so funds can have the ability to buy more shares and maybe it's not, you know, whatever the right time is to think about something. Is that something that you consider? Yeah, we've talked about that at the board level, you know, at every meeting, you know, what our options are. So yeah, we would.

Speaker Change #48: Obviously, it's a small equity structure at some point in the future would you consider afford software so fun.

Well have the ability.

Buy more shares than maybe if not you know whatever the right timing to think about something is that something that you consider.

Yeah, we've talked about that at the board level, you know, at every meeting, you know, what our options are. So yeah, we would consider everything. And that's one of the things that we've talked about.

Speaker Change #49: Yeah, we've talked about that at the board level you know at every meeting you know what our options are so yeah, we would consider everything and that's one of the things that we've talked about.

Right. Yeah. Okay. Great job on the execution. And honestly, on the press release up until today, I think he did a poor job of getting the AZT opportunity in the press release today. But that's that's not fatal, because it's what's more important is that the opportunity is there. And it's super exciting. So I just hope the communication

Right Yeah, Okay.

Great job on the execution and honestly on the press release up until today I think he did a poor job of getting the agency opportunity in the press release today, but that's not fatal because it's what's more important is that the opportunity is there and it's super exciting. So I just hope that communication.

Is gonna be.

Very clear.

I think consistent communication is important these small cap companies want to run if you want to run it like a private company nobody's going to know you're at the Super Bowl. So great job on execution and I hope, we're going to hear a lot more uneasy team for really correct.

the lack of excitement in the press release today, but you corrected that in a lot of ways on the call, but now people have to get the story out so Wall Street connects with it. So thank you very much. Fair enough. Thanks for your feedback. Appreciate it. Thank you. Our next question is coming from John Crotty, who is an investor. Your line is live. Hi, thank you for taking my call. I gotta tell you, I really enjoy.

Speaker Change #49: In the press release today, but you can't you correctly that in a lot of ways on the call, but we not now people have to get the story out to Wall Street.

Thank you very much.

Fair enough, thanks for your feedback, appreciate it.

Fair enough. Thanks for your feedback I appreciate it.

Uh huh.

Thank you. Our next question is coming from John Crotty who is an investor. Your line is

Thank you. Our next question is coming from John Crawford, who is an investor Your line is life.

Hi, thank you for taking my call. And I got to tell you, I really enjoyed that last back and forth with you and Paul, because those were some of my questions that I like to just kind of turn and talk on a more technical side. Now, as Paul mentioned, there's a lot of headline news out there with all the cyber attacks, especially with China, Taiwan, Ukraine, Russia.

John Crawford: Hi, Thank you for taking my call and I got to tell you I really enjoyed that lost that back and forth with you and Paul because those were some of my questions that I like to just kind of.

John Crawford: And talking to more technical side now.

John Crawford: As Paul mentioned, there's a lot of headline news out there with all the cyber attacks, especially with China Co Pi.

One Ukraine, Russia.

What interested me the most was the fact, the way they're breaking through the firewalls. They're having a harder time coming through. I'm speaking more technical now, but I think.

What interested me the most was the fact the way they are breaking through the firewall is having a hard time coming through on a speaking more technical now, but I think.

you guys are sitting in a potential sweet spot. If I understand this properly, AZT is deployed on the other side of the firewall where it's listening all the time as employees are now being the lead target for producing the cyber threats, whether it's through a UBS or through a personal computer plugged into the network. And I'm saying that because I noticed you saying the word air-gapped quite a lot. And to me, that means it's almost like it's a self-contained network without a direct link or constant link to the internet.

John Crawford: You guys are sitting in a potential sweet spot if I understand this properly AZ T is deployed on the other side of the firewall, which listening all the time its employees are now being the lead target for producing the cyber threats, whether it's through a U b S.

John Crawford: Personal computer plugged into the network.

Speaker Change #51: And I'm, saying that because I noticed you were saying the word air gapped quite a lot and to me that means it's almost like it's a self contained network without a direct link of constant linked to the internet.

I'm just hoping you can maybe explain more to the rest of the world because that's a real serious way of breaking in now and I believe that's how we've seen some certain nuclear reactions go down. If you could clarify that and give me a little more understanding. Thank you so much.

Speaker Change #52: I'm just hoping you can maybe explain more of it to the rest of the world because that's a real serious way of breaking in now and I believe that's how we've seen some certain nuclear reactions go down if you could clarify that and give me a little more understanding. Thank you. So much okay I'll do my best on the on the technical side. So do we.

Okay, I'll do my best on the on the technical side. So where we reside is on the in the servers, right on, on the core of the servers, where

Speaker Change #53: We reside is on the in the servers right on on the core of the servers where.

we you know it's a driver that gets installed and it's it's about 40 meg very very small uses one or two percent cpu utilization and what happens is once that gets installed and expands

Speaker Change #53: We you know it's a driver that gets installed and it's about 40, Meg very very small uses one or 2% CPU utilization and what happens is once that gets installed and expands.

and it looks at every single application. Now, we're talking to some customers right now that are testing it on literally over 1,000 systems.

Speaker Change #53: And it looks at every single application now we're talking to some customers right now.

Speaker Change #53: That are testing it on literally over 1000 systems that are running 1100 applications at one time.

that are running 1,100 applications at one time.

and we it goes out it looks at all 1100 applications and then it that's

Speaker Change #53: And we it goes out it looks at all 1100 applications.

Speaker Change #53: And then it is that it's the person has looks at and says is that a viable application. Yes. It is this is where we're at at that point.

And it's the person has looked at it and says is it a viable application? Yes, it is. This is where we're at at that point It's not going to allow anything else besides what's installed

Speaker Change #53: It's not going to allow anything else besides what installs to be exits executed on that so if someone tries to get in and you know because the biggest thing is when end users open up with the executable right and then all of a sudden than they are inside the system and then everything goes haywire at that point. So we're at the very.

to be executed on that. So if someone tries to get in.

Um, and you know, because the biggest thing is when end users open up the executables, right? And then all of a sudden, then they're inside the system and then everything goes haywire at that point. So we're at the very beginning on the core and you know, and that's where we start protecting and that's where we're looking at all the applications and how we protect all those applications.

Speaker Change #53: Beginning on the core and you know and that's where we start protecting and that's where we're looking at all the applications and how we protect all of those applications and then after that that's where you know it's the perfect picture at that point and you know we stopped everything you know immediately at that stage.

And after that, that's where, you know, it's the perfect picture at that point. And, you know, we stopped everything, you know, immediately at, at that, that stage.

Okay, and that makes sense. Is that sitting on the NVIDIA chip or is it just a software install with the driver?

Speaker Change #54: Okay and that makes sense is that sitting them into video chip or was it just a software installed with the driver.

It's just a software install on the driver. It's about 40 megs.

Speaker Change #55: It's just a software you saw on the dry right. So there's about 40 Meg.

Oh, oh, small. Okay. Thank you. That's very, very good for me. Yeah.

Speaker Change #56: Oh, Oh, Oh, well, okay. Thank you that's very very efficiently.

Yeah.

And one last question. I'm sorry, with the AI attached to it, is it self-learning? Does it retain or does it learn or how does that happen?

Yeah and this is one last question I'm, sorry, it would be a I attached to it is itself learning does it retain or does it learn or how does that happen.

Well, yeah, it looks at it and then it looks at what the customer's environment and what's correct for that customer. And that's what the perfect model is. And then everything else that is not there, that's when it's it stops it. And then, you know, we can write code against it that will allow certain things to come through after the fact. If we seem it, this is the correct new environment, what it should look like.

Speaker Change #57: Well, yeah, it looks at it and then it looks at what the customers' environment and what's correct for that customer and that's what the perfect model is and then everything else that is not that that's when it's that it stops. It and then you know we can write code against it that will allow certain things to come through after the fact, if we see.

Speaker Change #58: Do you know what this is the correct new environment and what it should look like.

Okay, so you're starting at a static perfect world and what's different from this tomorrow or the next hour. Thank you. That makes total sense. Thank you very much.

Speaker Change #59: Okay. So youre starting at a static perfect world what's different from the smaller the next dollar. Thank you that makes total sense. Thank you very much.

Problem.

Okay.

Thank you. Our final question today is coming from Brett Davidson, who is an investor. Sir, your line is live.

Thank you.

Our final question today is coming from Brett Davidson.

Speaker Change #60: Who is an investor Sir your line is life.

Back again, I just want to hop on a soapbox here for a minute.

Back again.

Just wanted to hop on a soapbox here for a minute.

I understand the sentiments of some of the other callers and, you know, everybody would love to see the shares share price just skyrocket and this to become an, you know, overnight success and but.

Speaker Change #60: I understand the sentiment of some of the other colors and you know everybody would love to see the chairs share price just skyrocket.

Speaker Change #60: And this to become an overnight success.

And but.

You know.

I think patience is probably.

Speaker Change #60: A pretty good idea at this point.

I would love to see this rapidly adopted and, you know, I think you guys are, I guess, your nose to the grindstone trying to push this forward. But, you know, at the same time, I have realistic expectations that it's not going to happen overnight. So, I'll, I'll step back down and thanks again. And we'll talk to you next quarter. Thanks. Thanks.

Yeah.

I would love to see just rapidly adopted and you know I think you guys are I.

Speaker Change #60: I guess your nose to the grindstone trying to trying.

Speaker Change #60: Trying to push this forward, but you know at the same time I have realistic expectations that going up.

Speaker Change #60: Not going to happen overnight so.

Speaker Change #61: I'll step back down and thanks, again, and we'll talk to you next quarter.

Thanks, Brett Thanks, Brett.

Thank you.

As we have reached the end of our question and answer session, I will now turn the call back over to Mr. de Lovo for any closing remarks.

As we have reached the end of our question and answer session. I will now turn the call back over to Mr de Novo for any closing remarks.

Thank you. As always, I want to thank our shareholders for the continuing interest and support. Our success throughout the fiscal 2023 has given us momentum heading into fiscal 2024, as we're already off to a good start with recent AZT client engagements. CSPI has always had a good reputation within the industry. The launch of AZT strengthens this view, and I believe will allow us to engage and sit at the table with Fortune 500 companies.

Thank you as always I want to thank our shareholders for their continued interest and support our success throughout the fiscal 'twenty three has given us momentum heading into fiscal 'twenty 'twenty four as we're already off to a good start with recent AZT client engagements CSPI has always had a good reputation within the industry the launch of <unk>.

Speaker Change #61: Z T strengthens this view and I believe will allow us to engage and sit at the table with fortune 500 companies, Gary and I look forward to sharing our progress in fiscal 'twenty 'twenty four first quarter in February until then be well stay safe and enjoy the holiday season. Thank you.

Gary and I look forward to sharing our progress in fiscal 2024 first quarter in February . Until then, be well, stay safe, and enjoy the holiday season.

Thank you.

Oh.

Thank you, ladies and gentlemen. This does conclude today's conference and you may disconnect your lines at this time and we thank you for your participation.

Thank you ladies and gentlemen, this does conclude today's conference and you may disconnect. Your lines at this time and we thank you for your participation.

Yeah.