Q2 2025 CSP Inc Earnings Call
Operator: Good morning everyone and welcome to the CSPI's fiscal 2025 second quarter results. At this time all participants are in a listen only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference please press star zero on your phone.
Good morning, everyone and welcome to the C. S. P is fiscal 'twenty 'twenty five second quarter results conference call.
Mike: At this time all participants are in a listen only mode and the floor will be opened for questions. Following the presentation. If anyone should require operator assistance. During the conference. Please press star zero on your phone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Mike.
Operator: Please note that this conference is being recorded.
Michael Polyviou: I will now turn the conference over to our host, Michael Polyviou.
Oh polyphase.
Speaker Change: Thank you Johnny Hello, everyone and thank you for joining us to review Cspi's fiscal 2025 second quarter financial results as well as we've been operating development.
Michael Polyviou: Hello, everyone, and thank you for joining us to review CSPI's fiscal 2025 second quarter financial results, as well as recent operating developments. The fiscal quarter ended March 31, 2025.
Speaker Change: The fiscal quarter ended March 31, 2025 today with me on the call is the logo Cspi's, Chief Executive Officer, and Gary Levine, Cspi's Chief Financial Officer.
Michael Polyviou: Today, with me on the call is Victor Dellovo, CSPI's Chief Executive Officer, and Gary Levine, CSPI's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. During the Q&A session, we ask participants to limit themselves to one question and one follow-up question, or then re-cue if you have additional questions.
Speaker Change: After Victor and Gary conclude their opening remarks, we'll then open the call for questions.
Speaker Change: A Q&A session, we ask participants to limit themselves to one question and one follow up question and then re queue. If you have additional questions.
Michael Polyviou: Statements made by CHPIS management on today's call regarding the company's business that are not historical facts may be forward-looking statements as terms 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 forward-looking statements. Forward-looking statements should not be meant as a guarantee of future performance or results. 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 company's control that may influence the accuracy of the statements and the projections upon which the segment and statements are based.
Speaker Change: Statements made by management on today's call we've already the company's business that are not historical facts may be forward looking statements as terms of identified battle securities laws.
Speaker Change: The words May will expect believe anticipate project plan intend estimate and continue.
Speaker Change: As well as similar expressions are intended to identify forward looking statements as.
Speaker Change: Forward looking statements should not be met as a guarantee future performance or results. 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 company's control that may influence the accuracy of the statements and projections the power segment.
Speaker Change: Statements are based.
Michael Polyviou: Unknown Product, and Delove. All of these factors that 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 the quarterly report on Form 10-Q filed with the Securities and Exchange Commission. The overlooking statements are based on information available at the time those statements are made and management's good faith believe as of the time with respect to future events.
Speaker Change: Factors that may affect the company's results include but are not limited to the risks and uncertainties discussed in the risk factors section of annual report on Form 10-K, and our quarterly report on Form 10-Q filed with Securities and Exchange Commission.
Speaker Change: These statements are based on information available at the time those statements are made as Ashley it's good faithfully.
Speaker Change: With respect to future events.
Michael Polyviou: All of the overlooking statements are qualified in their entirety by this cautionary statement and CSPI undertakes no obligation to publicly revise, approve, or deny those statements or update any overlooking statements, whether as a result of new information, future events, or otherwise, after the date thereof.
Speaker Change: All forward looking statements are qualified in their entirety by this cautionary statement CSPI undertakes no obligation.
Speaker Change: We will revise or update any forward looking statements whether as a result.
Speaker Change: Yeah.
Victor: Future events or otherwise after the date thereof, with that I will turn the call over to Victor <unk>, Chief Executive Officer Victor. Please go ahead.
Victor Dellovo: With that, I'll turn the call over to Victor Delove, Chief Executive Officer. Victor, please go ahead. Thanks, Michael. And good morning, everyone. Despite an unusual operating environment, our fiscal second quarter revenue was $13.1 million, met our internal budget and expectations. The results reflected a slight increase in product sales and a decline in service revenue as compared to last year's period due to a single multi-million dollar deal that wasn't repeated this quarter. Excluding that deal, we achieved solid double-digit service revenue over the prior year period. However, a six-figure, 12-month customer support contract was signed during the second fiscal quarter relating to the multi-million dollar deal that occurred last year.
Victor: Thanks, Michael and good morning, everyone.
Speaker Change: Despite an unusual operating environment, our fiscal second quarter revenue was $13 1 million met our internal budget and expectations. The results reflected a slight increase in product sales and a decline in service revenue as compared to last year's period due to a single multimillion dollar deal that wasn't repeated this quarter.
Speaker Change: Excluding that deal we achieved solid double digit service revenue over the prior year period. However, a six fig figure 12 month customer support contract was signed during the second fiscal quarter relating to the multimillion dollar deal that occurred last year.
Victor Dellovo: AT&T Protect continues to gain traction in the OT marketplace. Through the successful execution of our go-to-market strategy, we signed six new customers during the quarter. Some of these deals were small in nature, but had the potential to follow on sales, and we believe that some of these could eventually become installations of seven-figure values over the upcoming quarters. By focusing on the initial project to implement AZT Protect within the organization, improving our solution, we positioned ourselves for expanding revenue relationships within the corporation. As a result of this approach, our pipeline for AZT continues to expand, and we believe our total opportunities have increased some five-fold over the past couple of years.
Speaker Change: As you keep a check continues to gain traction in the Ot market place.
Speaker Change: Through the successful execution of our go to market strategy, we signed six new customers during the quarter. Some of these deals were small in nature, but have the potential to follow on sales and we believe that some of these could eventually become installations of <unk>.
Speaker Change: Seven forgive values over the upcoming quarters by focusing on the initial project to implement AZT protect within the organization improving our solution, we position ourselves for expanding revenue relations chips within the corporation.
Speaker Change: As a result of this approach our pipeline for as he continues to expand and we believe our total opportunities have increased some fivefold over the past couple of quarters.
Victor Dellovo: We continue to build relationships with our ACT Protect resellers. especially with the largest Rockwell Automation Distributor. During the quarter, we entered a new reseller partnership with Rexel USA, an industry leader in supplying industrial equipment throughout the United States. Rexel provides a variety of products to industrial customers across the U.S. and is a premier Rockwell automation distributor. Rexel continues the unique capabilities of ARIA recognizes the unique capabilities of ARIA AZT Protect to safeguard its customers against industrial cyber attack. It is initially working with ARIA to deploy AZT at the facilities of a large building material manufacturer in need of protection from zero-day malware, ransomware, and sophisticated cyber attacks.
Speaker Change: We continue to build relationships with our AZT protect resellers, especially with the largest rockwell automation distributor.
Speaker Change: During the quarter, we entered a new reseller partnership with Repsol USA.
Speaker Change: An industry leader in supplying industrial equipment throughout the U S. United States Brookdale provides a variety of products to industry industrial customers across the U S and as a premier Rockwell automation distributor.
Speaker Change: Red cell continues the unique capabilities of ARIA recognizes the unique capabilities of our area AZT protect to safeguard its customers against industrial cyber attacks.
Speaker Change: It is initially working with ARIA to deploy AZT at the facilities of a large building materials manufacturer in need of protection from zero day, malware ransomware and sophisticated cyber attacks.
Victor Dellovo: At the end of April, we were featured in a Rockwell webinar, which just over 100 of its customers signed up, and we are generating new business leads that will be worked with our distributors to come to fruition in the later quarter. continue to make prudent investments in marketing AZT Protect, which includes conference participation and attending regional events held by distributors to build off their existing customer relationships. all told in less than two years of the July 2023 launch. we are where we plan to be at this juncture. And currently, we are always seeking to enhance our sales team as we scale up the business, ensuring we might have the right caliber people selling AZT Protect while building brand recognitions for AZT Protect brand in the OT market.
Speaker Change: At the end of April we were featured in a Rockwell webinar, which just over 100 of its customer signed up and we are generating new business leads that will be worked with our distributors to come to fruition in the later quarters.
Speaker Change: We continue to make prudent investments in marketing AVP protect which includes conference participation and attending regional events held by distributors to build off their existing customer relationships.
Speaker Change: All told in less than two years.
Speaker Change: The July 2023 launch we.
Speaker Change: We are where we plan to be at this juncture.
Speaker Change: Concurrently we are always seeking to enhance our sales team as we scale up the business, ensuring we might have the right caliber of people selling agency protect while building brand recognitions for AZT protect brand in the Ot market.
Victor Dellovo: I strongly believe based on the current pipeline, we are gaining traction with key prospects while endearing ourselves to the current customers to grow the revenue opportunity. We are particularly excited about our new customers. signed in April with our distributor, Oryx Industries in South Africa. The contract calls for AZT Protect to protect small portions of the equipment owned and operated by one of the largest cell tower providers in the country. This agreement enables AZT Protect to be broadly deployed across the entire system over the next 18 months. This customer could generate sales in the seven figures for our company over the same period and open up new cell tower protection markets for us.
Speaker Change: I strongly believe based on the current pipeline, we are gaining traction with key prospects, while enduring ourselves to the current customers to grow the revenue opportunities.
Speaker Change: We are particularly excited about a new customers.
Speaker Change: Signed in April with our distributor or ex industries in South Africa. The contract calls for HD you protect to protect small portions of the equipment owned and operated by one of the largest cell tower providers in the country disagreement enables AZT protect to be broadly deployed across the entire system over the next.
Speaker Change: 18 months discussed about could generate sales in the seven figures for our company over the same period and open up new cell tower protection markets for us.
Victor Dellovo: A team is highly focused on this opportunity, as well as several others with similar potential as we enter the second half of the fiscal year. Oryx, which we just pondered towards the end of the quarter, is a leading provider and trailblazer of cybersecurity solutions in South Africa, and we look forward to working with them to attract other businesses that are in critical need of our services as the country is seeing an increase in cyber attacks.
Speaker Change: Our team is highly focused on this opportunity as well as several others with similar potential as we enter the second half of the fiscal year.
Speaker Change: Orix, which.
Speaker Change: We just partners towards the end of the quarter as a leading provider and trailblazer of cyber security solutions in South Africa, and we look forward to working with them to attract other businesses that are in critical need of our services as a country. We are seeing an increase in cyber attacks.
Victor Dellovo: Other parts of the business did well during the second quarter. The technology solution or TS business generated 12 million in revenue and what it continues to be profit. We are executing contracts with Cruise Lines and Ocean Freighter Liner Market and we continue to generate increased demand for our cloud-based services for companies wanting to outsource their critical needs to value-tested platforms. Earlier this quarter, we were awarded a professional and cloud consumption service project to architect, implement, and manage a Microsoft Azure migration for a Florida-based healthcare provider. which operates clinics across the state. Our mandate is to deliver the next generation cloud solution following Microsoft Azure well architected framework, ensuring seamless support for the client's enterprise workload.
Speaker Change: Other parts of the business did well during the second quarter, the technology solution or T. S business generated $12 million in revenue and was and continues to be profitable.
Speaker Change: We are executing contracts with cruise lines and ocean freight or liner liner market and we continue to generate increased demand for our cloud based services for companies wanting to outsource their critical needs to value tested platform.
Speaker Change: Earlier this quarter, we were awarded a professional.
Speaker Change: And cloud consumption service project to architect implement and manage a Microsoft Azure migration for a Florida based health care provider.
Speaker Change: Which operates clinics across the state.
Speaker Change: Our mandate is to deliver the next generation cloud solutions, following Microsoft Azure, well Architected framework, ensuring seamless support for the clients' enterprise workloads.
Victor Dellovo: We finished the quarter with more than $29 million in cash and cash equivalents. will continue to invest in our AZT products. product line. We repurchased $384,000 worth of common shares during the quarter and the Board of Directors authorized another $0.03 per share quarterly cash dividend. In summary, we entered the second half of the fiscal year with some momentum, specifically The South African AZT Protect contract and the technology solution contract to deliver critical Microsoft Azure Protect for the Florida-based healthcare providers. The second half of the fiscal year is off to a promising start. We may face challenging operating conditions, namely price increases on the products that TS purchases for resale, as well as customers may reduce spending through reduced headcount and project postponement as they realign their teams. The flexibility of our organization and the prospects for AZT Protect growth position us to maximize our opportunities.
Speaker Change: We finished the quarter with more than $29 million in cash and cash equivalents, while continuing to invest in our AZT product.
Speaker Change: Product line, we repurchased 384000 worth of common shares during the quarter and the board of directors authorized another three cents per share quarterly cash dividend.
Speaker Change: In summary, we entered the second half the fiscal year with some momentum specifically.
Speaker Change: The South African AZT.
Speaker Change: Protect contract and the technology solution contract to deliver a critical Microsoft Azure protect for the Florida based health care providers. The second half of the fiscal year is off to a promising start we may face challenging operating conditions, namely price increases on the products at T S purchases for resale as well.
Speaker Change: Well as customers may reduce spending through reduced head count and project postponement as they realign their teams the flexibility of our organization and the prospects for AZT protect growth positions us to maximize our opportunities and that is a dedicated focus.
Victor Dellovo: And that is our dedicated.
Michael Polyviou: Now I will ask Gary to provide a brief overview of the fiscal second quarter in six months financial performance.
Speaker Change: Now I will ask Gary to provide a brief overview of the fiscal second quarter and six months financial performance Gary.
Gary Levine: Gary. Thanks, Victor, for the second quarter ended March 31st, 2024. we reported. 13.1 million. as compared to 13.7 for the prior year. Service revenue represented $4.6 million of overall sales compared to $5.2 million of overall sales during the year-ago period.
Gary: Thanks Victor for.
Gary: For the second quarter ended March 31st 2024.
Speaker Change: We reported.
$13 1 million.
Speaker Change: As compared to $13 seven for the prior year.
Speaker Change: Service revenue represented $4 6 million of overall sales compared to $5 2 million of overall sales during the year ago period.
Gary Levine: Gross profit for the three months ended March 31, 2025 was $4.2 million, or 32% of sales. compared to gross profit of 6.2 million or 45.3% of sales for the quarter ended March 31st, 2025, reflecting higher component costs in the product side of the business. and there was a single multi-million dollar sales contract at a high margin recognized in the fiscal 2024 second.
Speaker Change: Gross profit for the three months ended March 31, 'twenty, 'twenty fives was $4 2 million or 32% of sales.
Speaker Change: Compared to gross profit of $6 2 million or 45, 3% of sales for the quarter ended March 31st 2025, reflecting higher component costs and the product side of the business and there was a single multi million dollar sales.
Speaker Change: <unk> had a high margin recognized in fiscal 'twenty 'twenty four second quarter.
Gary Levine: Our overall operating expenses were essentially flat with the prior period. We had a tax benefit of $683,000 due to excess tax benefit of restricted stock awards that vested in the quarter and tax credits. we expect to be utilized against our federal and state taxes. We had a loss.
Speaker Change: Our overall operating expenses were essentially flat with the prior period.
Speaker Change: We had a tax benefit of 683000.
Speaker Change: Due to excess tax benefit of restricted stock awards that vested in the quarter.
Speaker Change: And tax credits.
Speaker Change: Which we expect to be utilized against our fifth headroom and state taxes.
Speaker Change: We had a loss.
Gary Levine: for the quarter of $108,000 or 1 cent per diluted share for the fiscal second quarter. For the six months, our revenue was $28.5 million versus $29.1 million for the first six months of fiscal 2024.
Speaker Change: For the quarter of $108000 or one cent per diluted share for the fiscal second quarter.
Speaker Change: For the six months, our revenue was $28 $5 million versus $29 $1 million for the first six months of fiscal 'twenty 'twenty four.
Gary Levine: We had a net profit of $341,000 or 4 cents per diluted share of com.
Speaker Change: We had a net profit of 341000 or four cents per diluted share a common.
Gary Levine: The company continues to maintain a robust balance sheet as of March 31, 2025, and had cash in cash equivalents of over $29 million. The higher cash balance relative to our liabilities enhances the company's resource to pay a quarterly cash dividend while executing growth which includes the continued rollout and market awareness of the AZT product offering.
Speaker Change: The company continues to maintain a robust balance sheet as of March 31st 2025, and had cash and cash equivalents of over $29 million.
Speaker Change: The higher cash balance relative to our liabilities enhances the company's resource to pay a quarterly cash dividend.
Speaker Change: Wow.
Speaker Change: Except executing growth, which includes the continued rollout and market awareness of the S E T product offering.
Gary Levine: We spent $380,000 during the quarter purchasing 23,800 shares of com.
Speaker Change: We spent $380000 during the quarter purchasing.
Speaker Change: Twenty-three point 23800 shares of common.
Gary Levine: Lastly, as Victor mentioned, the Board of Directors approved a $0.03 cash dividend for shareholders of record on May 28, 2025, payable on June 11, 2025.
Speaker Change: Lastly, as Victor mentioned the board of Directors approved a three since cash dividend for shareholders of record on May 28 to 2025 payable on June 11 2025.
Operator: With that, I will turn it over to the operator for your question. Thank you very much. We will now be conducting our question and answer session. If you would like to ask a question, please press star 1 on your phone keypad. A confirmation term will indicate that your line You may press star 2 if you would like to remove your question. For any participants using speaker equipment, it might be necessary to pick up your handset before you begin. Please wait a moment whilst we poll for Thank you.
Speaker Change: With that I will turn it over to the operator for your questions.
Thank you very much we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your saying keep out now a confirmation tone will indicate that your line is Nicky you May press star two if you would like to remove your question from the queue.
Speaker Change: So any participants using speaker equipment, it might be necessary to pick up your handset before pressing the keys. Please wait a moment, whilst the poll for any questions.
Joseph Niches: Thank you. Our first question is coming from Joseph niches of Seeger and investment.
Joseph Nerges: Our first question is coming from Joseph Nerges of Seagram Investments. Joseph your line is live. Thank you. Good morning guys. got to.
Speaker Change: Your line is life. Thank you good morning, guys, Oh I've got to lead this I've got two people I got it.
Unknown Speaker: Call me, Brett David. Unknown Speaker So I've got to ask. ask questions for Brett. Well, and I think you've covered much of what he wanted to know in your remarks. He was asking for some more color on the backlog for Asia. neighborhood, you know, numbers. back on the backlog as well as the potential size of some. Do you want to elaborate any more than what you said? No, no, no, no. I, like I said, the pipeline is growing. We continue to talk to new customers and the pipeline is, the total pipeline is in different stages.
Speaker Change: Bret call me, Brett Davidson call me, He's got a dental appointment emergency no women, so I've got to ask.
Speaker Change: Ask the question for Brett.
Speaker Change: [laughter], Oh, well and I think you've covered much of what he wanted to know in your are you in your remarks Victor.
Speaker Change: He was asking for some more color on the backlog.
Speaker Change: For AZT and I'm I'm guessing that he was looking for something and then.
Speaker Change: Neighborhood of Reno numbers up.
Speaker Change: Back on the backlog as well as the potential size of some of these contracts.
Speaker Change: Do you want to elaborate anymore than what he said no no no no.
Speaker Change: Like I said the pipeline is growing we continue to talk to two new customers in the pipeline as the.
Speaker Change: The total pipeline in different stages, you know we call it out to four different stages and you know we have different different deals and they're all at different levels of of.
Victor Dellovo: You know, we cut it up to four different stages and, you know, we have different deals and they're all at different levels of, the sales process. So I'd rather just not comment on that.
Speaker Change: The sales process.
Speaker Change: So I'd, rather just not comment on that and.
Unknown Speaker: Tell Brad he can call me if he has any other questions. and the other questions. and that too. more.
Speaker Change: Somebody can call me if you if he has any other questions.
Speaker Change: And the other question. He had was on the cruise ship business. Then of course, you mentioned that to you now.
Speaker Change: Is it continuing or do we see more.
Unknown Speaker: Unknown Attendee, Michael Polyviou, Gary Levine, Michael Polyviou, Unknown Attendee, Michael So, and that's increasing or is it pretty steady? It's been steady. You know, as we continue to modify the ships, we get another one or another two. It's on their schedule. So we actually never know what's coming. It's just depending when the ships are going to be, you know, on land, dry dock, as they call it. Yeah.
Speaker Change: Not only the cruise ships, but also the freight freighters right. Hum you were you were doing but and so and that's increasing or is it.
Speaker Change: Pretty steady or.
Speaker Change: Yeah, it's been steady you know as we continue to modify the ships.
We we are we get another one or another to it it's on their schedule. So we actually never know whats coming its just depending when the ships are going to.
Speaker Change: B you know on land that's right.
Speaker Change: Doc as they call it yeah yeah.
Unknown Speaker: Well, I'll go to my quick question here. This is on a cell tower.
Speaker Change: Okay, well I'll go to my quick quick question here.
Speaker Change: This is on a cell tower contract and I'm, particularly interested in and Gary South growth comment.
Victor Dellovo: Unknown Speaker Particularly interested in Gary South Unknown Speaker in the conference. Other solutions were considered less effective. too complex to operate. I guess my question is... Do we have something unique? where we can go at or is the cell tower thing unique in itself is company. where we can go after more cell tower companies that have the same. If you want to call up that same endpoint. we know we were unique because we were unique because the amount of space we take up on the cell tower because they don't you know it's not like they have a huge computer sitting there right the amount of space and the amount of cpu power was very attractive to them because like i said those cell towers they're there they have limited uh cpu and uh storage on each cell tower so that that was a big plus we work in linux where some of other companies don't and some of the versions of software were a little dated also.
Speaker Change: And in the contract he said.
Speaker Change: Other solutions were considered less effective and too complex to operate.
Speaker Change: I guess my question is do we have something unique here, where we can go out or is the cell tower thing unique in itself. This company unique well we can go after more cell tower companies that have the same.
Roger: Roger if you want to call. It the same end point.
Speaker Change: Neat.
Speaker Change: Yeah.
Speaker Change: We know we already you know because we were a unique because the amount of space, we take up on the cell tower because they don't you know it's not like they have a huge computer sitting there right the amount of space and the amount of CPU power.
Speaker Change: Was very attractive to them because like I said those cell towers, they're there they have limited.
Speaker Change: A CPU and a storage on each cell tower, so that that was a big plus we work in Linux, where some of other companies don't.
Speaker Change: And some of the versions of software where a little dated also so.
Victor Dellovo: So that was one of the perfect customers.
Speaker Change: That was one of the perfect customers I think that's kind of why it might have moved as fast as it did just because we we we had a lot of check boxes right out of the bat on that particular one.
Victor Dellovo: I think that's kind of why it might have moved as fast as it did, just because we had a lot of checkboxes right out of the bat on that particular one. Right, so a follow-up there would be, do the other cell, do we know if other cell companies have limitations on their towers, let's say storage? We're reaching out to those different companies. You know, some of them are not calling back right at the second, but we will continue to reach out to various companies that we did some research on that is similar to the company in South Africa.
Speaker Change: Yeah.
So a follow up there would be.
Speaker Change: Do the other cells that we know of other cells.
Speaker Change: Uh huh.
Speaker Change: Limitations on their towers at let's say a storage or two.
Speaker Change: We're reaching out to those different companies.
Speaker Change: You know some of them are not calling back right. After a second but we will continue to reach out to various companies that we did some research on that is similar to the company in South Africa.
Unknown Speaker: And just one other quick thing from, I'm going back to your letter, the December letter where you talked about the cloud-based projects you had, I guess at the time, 14 at the end of the year. Is that still, do we still have a pretty...
Speaker Change: And then and just one other quick thing from here I'm going back to your letter the December letter, where you when you talked about the cloud the cloud based projects you had I guess at the time 14 at the end of the year is that still do we still have a pretty.
Unknown Speaker: Unknown Attendee, Michael Polyviou, Gary Levine, Mike Price, Unknown Attendee, Michael Polyviou, Yeah, it's it's it's definitely more than 14. It's probably in the 20s right now. I don't know the exact number. Yeah.
Sizable backlog of Oh.
Speaker Change: Our basement projects at yeah. It's it it's a it's definitely more than 14, its probably in the Twenty's right now I don't know.
Speaker Change: The exact number yeah, okay, well I'll drop back and let somebody else ask a question. Thank.
Unknown Speaker: Okay, well, I'll drop back and somebody else Thank you. Thank you very much.
Speaker Change: Thanks, Joe.
Speaker Change: Thank you very much just a reminder, that if you have any remaining questions. You can join the queue now by pressing star one on your keypad.
Operator: Just a reminder there, if you have any remaining questions, you can join the queue now by pressing star 1 on your phone keypad. Just wait a moment in case anyone else wants to ask a question. and anyone else. Any questions?
Speaker Change: Just wait a moment in case anyone else wants to ask a question.
Speaker Change: Okay.
Speaker Change: Okay.
Victor: Seeing anyone else in the case of questions. So I will now hand, it back to Victor for any closing comments.
Victor Dellovo: So I will now hand back over to Victor for any closing Thank you, Jenny. I want to thank our shareholders for their continued interest and support. We have some momentum heading into the second half of fiscal year due to some recent contracts, and I believe the increased activity we are experiencing is encouraging. With each passing quarter, the ACD For more information, visit www.fema.gov The tech name is becoming more widely known and the relationship with Rockwell ensures this will continue. Our goal is to go out there with the maximum effort, close deals, and once installed, grow the base.
Victor: Thank you Jenny I want to thank our shareholders for their continued interest and support we have some momentum heading into the second half of fiscal year due to some recent contracts and I believe the increased activity. We are experiencing is encouraging with each passing quarter the AZ to protect.
Victor: Protect name is becoming more widely known in the relationship with Rockwell ensures. This will continue our goal is to go out there with the maximum method close deals and once installed grow the base. We're fortunate to have the T. S business that generates the profit to fund the area of business and we look forward to updating you on our next progress during.
Victor Dellovo: We're fortunate to have the TS business that generates the profit to fund the ARIA business, and we look forward to updating you on our next progress during the fiscal third quarter call in August.
Victor: The fiscal third quarter call in August until then stay safe. Thank you.
Operator: Until then, stay safe. Thank you. Thank you very much.
Speaker Change: Thank you very much that does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day, we thank you for your participation.
Operator: That does conclude today's conference call.
Operator: You may disconnect your phone lines at this time and have a wonderful day.