CSP (CSPI) 9 Aug 232023 Q3 Earnings call transcript

Good morning, and welcome to CSPI's Third Quarter Fiscal Year 2023 Conference Call. At this time, all participants are in a listen-only mode and a question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Michael Polyviou. Sir, the floor is yours.

Ali. you, Thank thank fiscal and XX, joining to us Hello, third you quarter CSPI's XXXX June results, review everyone, for which XXXX. ended CSPI's Gary on is Officer. me call Chief Dellovo, Executive With Officer; CSPI's Levine, the and Chief Financial Victor today conclude and remarks, opening call Gary open we questions. After then the their Victor will for

words are the by may The be facts are CSPI's call will, term statements. Statements Securities forward-looking historical identified may, on made Federal regarding the similar to intended anticipate, intend, statements as believe, not today's management company's is in identify as expressions business project, that and estimate expect, forward-looking well Laws. plan, as continue

other segment risks the may of several that company's as events the looking guarantee The which performance statements of these and are should future to and of current based. are that future you accuracy results. statements influences, subject about control, the expectations influence performance beyond be Forward and reflect statements or are many the read statements a upon or cautions company's not projections company uncertainties, which and

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

of the or statements, whether publicly thereof. CSPI new no result the to those Forward-looking the of available forward-looking or respect cautionary made revise with update and statement, are statements time qualified management's their a events future date statements in and statements on any otherwise information, future faith events. this the are based as undertakes time are entirety at All to by after as good obligation belief information forward-looking

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

Thanks, revenue we XX%. for good as everyone. morning, business grew reported Michael, Today, momentum our continued and

to I our the Our performance Technology results Solutions the and our strategy continued past dedicate to couple over this was of segment significant years. business believe the by driven resources reaffirm outperformance of

business the tax performed earnings. expected an details and Our to and increase other as topic mix his the and lines tax going is remarks. the during quarter, more during product provide Gary segments on treatment led in to business

to kept greater the had quarter customer. was as revenue, than to contributor the a months momentum the issues conversion portion on which the us backlog major completed XX shipping of A the for continued from orders in good for books the supply key of been components the chain to

products solutions effective, Our customers extremely and continue our and backlog this their of most cost-efficient are answers finally the critical to needs, pleased revenue. to remain to because loyal are to move we

them backlog the and options. our I keep the quarters not worth have that our few engaged lost this is customers of over a and to is to revenue, to importance of which chain the throughout and we order, remainder supply time team business. reflects It convert the noting issue, services believe prolonged single our products supply of to focus lines next this with the Our is constantly older our abreast

to the of some results. Turning segment's

Our $XX.X fiscal the $XX.X compared business quarter. TS third in to revenue million million totaled year ago

capabilities. As driven be increased implementation, to customers' this use evidenced year-over-year by our and installation of segment dramatic the by increase, training our continues

Our HPP year the revenue was $XXX,XXX fiscal line compared ago approximately expectations in $X.X to million, with quarter. our in and third

recent continues solution the years. pipeline upcoming ARIA's positively remains to high, will in base overall and customer developments ARIA grow quarters the in segment HPP impact the and While the

be and a industry reason within fiscal our calling third quarter the this launch, the will us enthusiasm lot It growth beyond. often feedback we we excited. Zero PROTECT, early and into Perhaps was developing something believe move achievement XXXX is newest HPP, our do, fiscal we be have been as it our Trust organization, internally, High-Performance driver the product major It AZT. ARIA internally and which generated a as business we for Product, during biggest are has gives that to we of

patent and us greater technology leading for reaffirms is and from will that a garnered gives belief customers The interest our it be CSPI. AI-driven confidence advanced game-changer that

have AZT stream customers adoption prior our a of company. and to for the going revenue ARIA monthly We product to a of quite we the few it's reliable line envision of launch and accelerate generate

believe we in significantly and will be expand through of reliability PROTECT gross fiscal our As converts our this line well orders, from revenue and consistency quarter TS beyond. as XXXX by we margins for the fiscal and the buzz complemented the positioning and move expectations fiscal product the generated fourth being from business, AZT to primarily XXXX, business success, to HPP us

We believe CSPI to we unique among can that's ability develop identify space, other product in our a and this and companies separate larger from especially where players on they move evaluate the funds it unlimited still the and AZT. analyze the skills even quickly with with to limited something opportunity technical to need develop companies Other dollars. lack may development like need would

describing to are about few AZT. so excited why So moments like a I'd spend we

our First, giant on advancement cybersecurity market anything the customers of surpasses AZT's today. AZT's solutions. allows forward the in evolution available us a leap performance to offer

designed threats and protects cybersecurity protection new the the full most solution tax including of completely advanced to techniques, vulnerabilities, supply attacks, a unique security organization intrusion It's critical that generation from those The are all teams. endpoint even zero-day malware, unknown chain operational for patented environment. endpoints ransomware, of spectrum cybersecurity technology

cybersecurity the endpoint devices capabilities, constant need It intelligence damage update. patching occurs. risk tax near-zero or for By artificial any of deploying It before operations to without seamless the on applications cost of exploits ensuring downtime. is disruptions vulnerabilities, AZT lowers without

industries, finance, excellent energy. including an for a wide manufacturing, banking is utilities, and of AZT range believes solution team care Our and logistics, pharmaceuticals, health

and actively international other We opportunities. and various we transactions global to are our as up order maximize the marketing investments markets with address and sales to currently markets ramping negotiate these key in

no the and operational into of This entered networks have Rapid longer transformation OT kept the one is we traditionally been these from isolated boundaries such the quarter, is IT Australia. in third case. fiscal the air-gapped and outside between agreements technology. During blurring world. digital

OT prevented by on of challenges probable the CSPI's for The latest The AZT. networks cyberattacks faced solutions product represents customers. by differentiated are and value-enhanced offering most best

going significant As think I for company. it's growth driver be mentioned before, a our to we

To have year. summarize, we the generated our launch is AZT fiscal during The underway. substantial months nine of growth of first

quite are the We excited ahead. about opportunities

financial Gary a With I will the overview now brief provide that, quarter third ask fiscal of performance. to

Thanks, Victor.

increase our mentioned growth in $XX.X quarter, year in million, million to $XX.X the third Victor achieved some We reported the we fiscal his delivered compared successfully fiscal quarter. compared ago XX% we finished third have backlog third of quarter remarks, products in As customers. as year's fiscal to revenue last to older opening converted significant a and

We fiscal gross compared or million of year third profit or XX.X% reported the sales $X.X to $X.X in quarter. XX.X% of ago of million sales

is function quarterly gross revenue mix. due in a reminder, business a the As anticipated to

to excuse However, margin transacts our -- will me. -- to business products gross we continue believe the transitions, annual higher-margin expand as transaction

was the and to development were unveiled. $XXX,XXX were costs, AZT recently in due outside compared quarter earlier, consultants, development and as of expenses engineering costs The third the primarily ago higher the fiscal for the higher only product, which, period. personnel mentioned Our ago which $XXX,XXX included year year to approximately

fiscal expenses of for from as in due payroll unveiling bonuses, variable year $X.X associated $X.X third AZT. sales in to costs quarter and QX well higher compensation were and SG&A million to sales commissions compared initial with million Our launching increase ago the as in the the

valuation that of jurisdiction the and tax the more be from deferred primarily determined quarter, likely $X.X allowance substantially against We million of asset. is analysis US tax utilized. will it tax for for benefit the than -- performed Our that was the all release the not the deferred in third the asset an

diluted XXXX quarter. million The XXth, million of equivalents $XX.X of income cash $X.XX to in diluted $X.X third cash $XX.X earnings with share of quarter equivalents cash or $XXX,XXX the as income net fiscal of of for $X.XX reported million per and XX, as share of of company as We third net had June earnings XXXX. the for compared XXXX, per compared fiscal a of September a and

sheet The increased by rates as of sales. the level is the and product we preferable year orders primarily our implemented customer leverage strategy lower finance created large strong last as well interest and amount due receivables balance to to certain

flow However, through QX, been a cash provided financing XXXX. of during the repayment a full the in significant generated to fiscal has and payment early of customer receivables

also positive the want to that business $X.XX We to the a similar yielded I on XX, that believe successful XX, our quarterly implementation this September on also results, approach of of August has entertain highlight and will Directors the shareholders criteria. XXXX. share, strictest record dividend per payable XXXX, it approved of of Board meets on close of we opportunities

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

session you. this be Thank conducting will you. a Thank At time, question-and-answer Instructions] we [Operator

first is is Price, Mike an coming question Our from who Investor.

line Your is live.

way a Congratulations larger this you a and any on CSP quarter. can Has great Previously, bigger seems morning. that had own? with there than recognition, you. revolutionary Thank like in Good its you with has that as the problem AZT. been it faster product, CSP call to a have a and name it, you discussions on anybody said the get market

we approached, we Not to as table. build at. look would on ago, always currently. we're days it Right always, customer then, be so is XX we than everything base. If to less just something And now, it would able looking a announced be the were

And the -- the quarter. payment you taking the the bring fourth $XX over repayment Does in million? Okay. the of is said back that that place receivable cash

to close that. Pretty

payables. Yes. based to Yes, $XX million. is pretty changing on constantly close constantly but close. It's moving, It's that it

Right. Understand.

with a short-term even are, You've where Short-term that I earning fair held-to-maturity basis? categorized cash rates $X.X a assume on million return as rates. they interest is

Yes.

have the invested And current what annual than cash a company a that million short-term at a looking an with cash lower of pre-COVID. the dividend That equivalents, quite about the cash dividend with I'm repurchase. question cap the covers it question is market is in Because the on also, bit $XX goes probably back you to share basis. rates. Okay. and having a $XX And million at

previous $XXX,XXX. you just authorized in I you the Have completed? think anything the shares repurchased? think about I any What quarter don't quarter. been did

A very number. small

you shares. front with like the Victor, I I get we a good is the your bought to confidence repurchase that window, shareholders but some runway the should the in of have, like of your company. it this whenever It illiquidity shares, the wallet. as shows And which last hundred Well, in seems same. you I few up appreciate the AZT stock, able the PROTECT using in by do possible. seems Okay. out be noticed opening the shareholders, mean, this a of certainly to can that by of use isn't this cash future funds?

we're now, AZT. Right advisement, we'll take under reviewing that and with Board. investing that in constantly just the Well, we're the

And so advice. -- but we'll your take

they but they Yes, an deals make model, customers, you in like we're their that those on based to get in fluctuation, don't million. down cash life having times, instead And $XX these is doing are because want At a some interest that with easier our favor doing pricing too, reasons at institutions. finance yearly multiyear. a we're as budgets goes it see, may which of our little why larger are rate, just budgets is definitely preferral larger the self-financing that these -- of

manufacturers the without So there. reseller business, place rates have get lines us big having large equipment, the out having with then allow buy orders us. and dollar out and get financing, the credit lines at credit that of for allows go multimillion cash to to especially these distributors to important the having us cash to is to that the that And too,

because may why may get. some that -- these in it it sometimes what that And little helps said, we we was these purchase that's with have lines credit -- that the big I or distributors. of kind cash us it to all, not of second products the a color cases, Maybe the important that there have with we to allows finance need is cash. So to then deals like of

there year, see fiscal Why? or that at And the days long? that what, in you the I little to frustrating it end understand, till question days. reason takes full XX days so is, I usually have a full, mean, Is the report. XX It's XX you a anybody it's But results. mid-December. Last comment of to I don't a take see

manufacturer. amount the between the a amount in closing on the we is it got us the of it takes have of on lot if quarter large or Mike, well depends have lot moving done. in things that time. our many -- lot a the dependent to is a the one of A spend quarter. of the of spend have a of time good we to the cutoff related and is the just are by we And then as to audit. products parts go that what And not And -- as time shipped determining in is if time a audit having the we've significant

Okay. your All time. right. I appreciate

trying are up. it move We to

the end Appreciate your time lot. looking and and a forward year. great of to quarter the Thanks

Thanks, Mike.

you. Thank

Thank you.

is with Investments. question Joseph Nerges coming from next Our Segren

Your line is live.

and the Congratulations a for wholeheartedly. morning, in agree today's initially, a you press you used on AZT of point press the introduction release, product, a software. I Well, game-changer two Good revolutionary. in you quarter guys. for release, term the potential with great used great named and And this is our you words product that, -- PROTECT

review on website. I Let the did me one recommend thing.

you much put the so know color extensive this a just an agree I there's potential me, extensive. current if and there there's that to investor you I for really I them And product. -- website on a but really with it's because have website, review on really of investor, it product go call. hard mean, lot to the You a detail or this new don't conference any advise on to in convey write-up

should So into. that people look that's something

I appreciate it, Joe.

I about -- -- talking there's where on are good of last and -- we candidates press there assuming talked of overseas. talked in we similar last Australian parts especially your talking the we you potentially call managed headway the even for expanding or But service last any signed. area to? I'm on about Have currently potential the European conference just You Have lot was that about a you're providers that? made the MSP -- know UK, that any we're now. release

time just but the application signed resources, reseller agreement. we they on to make product our in commitment, now catalog. going put right? and talking have not But not them, they're just to their We're sure want It's to a

just conversations We the people committed we're going So to line up are to it. make to on, they that going to be sure not are catalog. sell their another but want just sign on

should discussions when you. more you now -- Yes. future. I with don't if -- a But lot great got -- should That's -- this We've Well, they and this product of for I that. recognize agree I've the the them AZT I PROTECT we with if potential available mean, -- introduced, is there be in got just serious this mean

few There's just they're US Yes, talking and yes. a lot -- there's the a that. in well. I'll leave as quite that going to, it we're

we Do we over many an you have? partners partners the off have have we -- approximately, have how how Do many do signed years? channel -- the channel

say or five in probably would security. six are that I specialized selling

-- talking you're to like as Yes. you And mentioned. you just then more, just

Yes. Yes.

year looking right. All or -- either year? this for E-XD, Have are currently still we royalties we possibly any next fiscal and on

QX. it's I'm liquid, be It's thinking to but going

Okay.

QX. Okay,

It could saying year. into QX. more of comfortable roll I'm Yes, next QX QX, but

Okay.

attention industry -- and to think -- But mentioned talking industries, added presentation. And the leaders. leaders bit, little your you're pharmaceuticals, this energy. a about release you we mentioned considerable just transportation, like the specific I current in in You about industry from you press are

Okay.

Yes.

of them are utilities, just pretty big. some are we the some I you're of talking -- assume, When So most in cutting this are large. with them on and case, pretty base

So --

big, to. all we've they're the talking Yes, that ones been

Cool. Well, right. All that's great.

So a is the there market huge.

of that OT technology are the oil, gas, a operational we're the they space, now. OT area, right those a talking have The of that lot Yes. companies where lot to manufacturing, --

-- So

previous buying would the for product chance. stock revolutionary follow-up money getting which game-changing is and in buyback. is stock purpose, your it And doing talking Okay. I than well, question this than potential the But to we're about utilizing here, potential time about sales, one it And marketing a new suggest When selling have think one put a understand some certainly you stock sales, Great. when when for get time that deals. you the just -- a -- way. to and you it buy stock opportunist less the an less

Now I to the have don't realize, is open market we buy. -- hard

we have little days, volume. very Some

on just than But we you again, we're you almost fact So limited have if combination company us look the of available a technology are onetime what sales, to of be less really for at that and now could what do. level. that the I that's mean, you unheard at to

guys quarter, from lot. on early Great So hear again, December you hoping in to this. a Thanks thanks I'm Great. again. again and

Thanks, Joe.

prediction afterwards, I'm company was so perspective they of as a copier. was going product ago, and a released as successful before that this to there my and Haloid if company, point. Xerox. other PROTECT company successful I Corporation. product from name a same I someday here. and Xerox We is the change potential their Many One long there. product, answer down give we Well, small named be. new may have you to if it to going a not that was was it Cybersecurity ARIA that think the changed -- mean I Haloid they could predict name the it the AZT a our leave from you. years was history one I And

it. I'm the changing the company you. of name thanks Again lot. So for a Appreciate

Joe. Thanks, right. All

Thank you.

next coming an Davidson, question Our is Brett who from is Investor.

live. Your line is

guys going new can for answer is to you the me be? what ticker Maybe

ARIA. Yes.

any from to all ship on. different like want I touch Was cruise Yes. It items of business? sounds got there quarter revenue kinds the that might I work. this

some, were Limited. There Limited. though.

But still winding up? that's

there. point. this busy But with keeping while Yes, is prioritizing to just ready. -- They're we're projects well, moving it's projects now. in doing at decisions stuff other pace. make other They're a right still we're engineers turtle's slow We're this talks. But at different We're yes. the they're but

So -- maybe not sometime probably QX, in

peak No, still was we various there'll revenue there, just -- are not a at cruise it's once. be some revenue for same getting projects it's the But the -- there's lines. it in

So normal it's the levels. back kind accelerating more just of of to beginning like

There's Yes. -- We We're on have to hoping. just map. them map. have road a we have road execute the

get I'm now? need supply when for we ARIA like it. half know before Got What time it look nine to -- what it? that The hardware. get looking at Or like chain, that you months can are stuff I pretty not you Or was you need does period? the

ARIA that for manufacturers, goes weeks we're certain PROTECT side of it. in product piece instantaneous AZT with to of of hardware it's lines, TS along it, cases, then software, of in pretty weeks. still. manufacturers, house, lines now on in same the product for the anywhere all the some quick. probably of piece So that the And say, It's in -- ARIA is six the For it's And the I right? then from would four nine it's some eight months the it.

-- they of it's lot varies. switching the but want -- process. So big some are, a it's just still to don't it the across name of products players, lengthy A I who board, whether

or we're it dates it's is, XXXX, the of getting not, Some cases. believe in some

Oh, no.

Yes. in But weeks. we In backlog models, some switches, can some four get bad. other pretty cases, the in of the larger is different

we flushing in old, based continue and it backlog a backlog better. definitely of to some on the the just it's finally for we're It's hoping product was But the books. that us. what, putting it But that close that and revenue which some -- out, flushed getting good in. so came we year And is manufacturers, to cases. -- that it's getting worse, So not varies line

that also is now distributor, hardware? Or they services? strictly are Australian the And

they're Yes. company, security both a strictly interested. They're so

product. customers of ADR, And on talking a AZT We have new the MDR. we to opportunities are the both the release few on

directing reselling you? they So customers are are Or the they just to ARIA?

help it, be but the supporting technical side. would reselling -- it They on we're

I'm it. that's significant The all one from that Got assuming cash accurate? customer. back coming flow, so Is

in. customer, flow clower a but Majority -- customers cash the it's from probably different coming there are

it's there run to big one hit? potential shot, kind the like one again Or of mean, I customer, one a with is them? this So a through

We years. for have been doing five

it doing five years. for been We've

years. five for it doing been we've So

for then -- signed a order took we So -year and different deal over just spread multimillion with a years. another customer five give that deal and it a dollar

other there fees And guys they it's is of it. I basis, been done a Got are these Or it requests other the these this you popping customers? part using are -- how mean, regular heard are products? for sales pitch before in develop? from that because as Or up this on or

do -- Well, but we've they for but some the could the with, it we probably smaller or just wanted it. we been But do customers cut -- were a year of probably could of give three business the in really five large last a order, not budgets year-by-year-by-year. the lot purchase doing that to market decade, pricing, it they the more but they on weren't a

got So one a them, when than -- And with they we customer, X. the doing of requesting money is kept deals phenomenal ended it. they're more they then risk up and the

he's couple So when requested last And to want we our do a for to it. no then customer, approximate yes, us. this. They're they're a customers you we're took and problem." do And like, is, we deal that Hey, customer the we'll like, creditworthy able we're it, other this like, --

now? over written so delivery financing? delivery is And is delivered for this it product product any Or is it's of the all the -- for of the of of all product life

it. product -- the upfront they're that No, that support with And using gets is that the then goes along it delivered and

XX So and XX year, long-term deal, has you it year, delivery? approached you like need I finance guys we sign anybody extended that? an nothing that? this mean we'll this So do as Or next like to through a

could it Like for X to not kind IVE projects, It's it a that's it usually networking the could project based it storage looks. It's product on be just -- of how be project. a wireless they're be could years. a ED or or project-by-project, good

for we gear, X equipment, upgrade was time. then for we them did the they a need we priced to the deal orders their we just customers one that this a And this all for of with just -- did another couple year -- so at dollars of the did on of deal threeyears. One this new million

them do time any all a upfront? over of delivered is multiyear But it equipment involve frame? Or

it get No, all they upfront.

mean, do commit I stream that to though? have out, see Or over And that nobody pitch recurring possibly guys something? years a a or far where could scenario like you to three you to sales wants five

a how wants we that's the then to payments We commit. nobody three And on of it the unusual, Xtheree-year do Five or new -- one is do or then either payments, we it. it's maintenance No, deal, equal equal obsolete, when just roll frame try into to And we'll -- depends. depending try kind project opportunity. deals. the five to gets maybe them renewed, because becoming is a gear but

comment Got can't Mike. one all it. directed are any want CPA up audit add just graduate ramping is see a I operating because shortage. the shortage, huge I sooner of huge at those accounting firms There to shorthanded.

So if I be would can be somehow shocked shortened. process that

amount a than a Yes. close, is different right? audit close. way then is The quite to does close that work year-end compared one quarterly thing that quarterly of firm significant our And the

looking or in the takes put to QX. because So that's the it to and time. point, cutoff Gary's orders is two to wait getting the so with to weeks manufacturers have cutoff least state. either at in sure we are time invoice correct takes the And we or the in distribution, QX at And product extra why have the that make the work or

sure into work revenue a quarter. goes to the a all lot into correct the that year-end goes tedious more close So that there's make

heavy. like mean, way, that is I recognition. Yes. there revenue Yes,

Yes, them rules that I become it. to -- it's obtuse stuff. so Got the difficult have recognition the know follow revenue that

Exactly.

on been sales out yet QX? looking we're Or AZT And the still any there book last thing, product? have that like

QX.

the right. Mike Well, All it. the pretty taking one question. answer thanks time much entertaining. to was -- This guys. for again, Joe Got so thanks and

care. take You

here I degrees, SUNY As XX and comfortable sit Buffalo.

one. good a Have

care. take Yeah,

Thank question from Investments. Segren have Joseph from Nerges Instructions] you. We [Operator a

Your line is love

this association Cybersecurity on in there's Logitech. The the there fill Systems. article particular it, wants Australian company the to And out question. with Manufacturers' nice a Australian ARIA. article Legacy name on of If is company. Brett the That's is OT the title of Just the for he

and you'll And puts Google Logitech his article. Cybersecurity in so if search, he that ARIA find

if product. for they nice our a Southwell, it's So -- Gary by Manager, commentary to and anybody, article on want that just it particular General look up,

right. All guys. Thanks,

Q - Joseph Nerges Thanks.

have Will with Wealth Lauber We a Visionary Advisors. from question

Your live. line is

getting there guys clarify Yes. Can of if works? you what international is sales you're guys -- sales, what just for the any you And Or that international get Hawkeye, just sure how now. guess, do kind that I revenue?

Yes. slowing coming of down, we're Will. -- it's -- transactions on. of Well, lot the program. close to been pretty gone hasn't getting a the it's have that There's end really There

So we've few is little believe very going thousand we there's had available. -- that mean hundred dollars I just be a to

planes to country Okay. while, some. anymore? now some I advanced aren't other of Because guys you every starting that more that get people about see they get the But once getting in a something buying some are starting to -- international the

because orders That's many what not coming there's that through. we believe

interest when I this you starting And first guess, product or kind when like new now you looking of with Okay. years can describe started year like or later with something the new is back compared like you're a to of of this this that? level line, ARIA -- I ago, product, guess even couple what a out product

Well, the feedback companies couple it of rolled hired doing. lot than positive. potential the AZT out, of piece to we've little a doing already. just other We've of different some are it, customers we all but of salespeople. been But has a We're new things talked a the

already it. what were pricing how customers. doing, are hearing in We going large well. doing of for after asked demos interested very the talking we're they're we're first So couple The They've to meeting. a

asking just we asking they know -- feedback. for out, we're So them We're enthusiastic. rolled it we're

The it's And is and so really honest. ugly, they good, good this any at bad stage. hasn't are been being ugly, which the brutally and

name that we there. right, out than our We're with some energy going getting the taking and in resources have, the it's So about more put to have just past. marketing we

there. we're approaching put like name attention. on think, a XX profits it's them out against and inside I growth. it And hired the over to we is another to think way it, the to is people I that this just salespeople And already those segment last getting like that money we're and And I said, focus product time -- and going taking hopefully different. days, said, a the it, some two and I our reinvesting continue generating some doing revenue this couple needs -- we're new start

game So now. kind short-term plan the that's of right

cycle. space? So potential imply all the cycle are in sales might to large product? very that And you this cybersecurity Usually, that longer how What expect said would you these a is to customers. standard sales compare the

can different don't this companies year can I in minutes, we're roll manner, to because instead out In a that inside to do the a be trying there's infrastructure do sales the -- So it say, that. to If but would some POC budget we all hoping get quick company-wide of the companies, out POC to larger fast, correctly, to within their right? it to a and on roll to would minimum we're to divisions implemented close of hit line take, XX it focus then is trying long adoption be this. and product a get be do going not move product time able Big right?

a made lot So next it's focus then being And decisions we which division to can to on companies, inside it is or medium-sized at it department so adopted we're out are look focus a adopt your the quicker. product roll already a way, getting the as trying evangelize easier organization. some that and to

particular long how cycle because. So new. I can't It's average you the on is product give because sales this too

six been on is it cycle, to It two cycle would and six could product SIEM I sales the ADR the that quicker, the sales say, would and MDR. On probably has be we is months, four I but average say, have, months. the months

So that them. point for to be would safe customers the bucket good clear mean, it I of possible or? in drop say, about somewhat safe the the that going is say would of is with be I the a probably points one to price mean

be a to cause those think budget, It's harm pharmaceutical to going dollars it's looking make don't But every are would assembly to dollar throughout believe love organization. and that of evil. one that. they their would organization to put it is or securing say list lot lines, everybody were got But number the I a right the I a security is security to adopt compared at to if I on manufacturing. now. necessary their And whether sure to we

Well All right. Okay. thank very much. you

Have a good one.

Thank you.

we this have. any will back I may time, no he in at more to As closing Mr. for have it queue Dellovo comments questions hand

you. Thank

of the our backlog, thank We the which, As I demonstrates had continued to always, our customers' committed converting and support. for I orders. shareholders to are success older some interest their fulfilling we believe, in quarter want

XXXX full fiscal the Goodbye. XX safe, in well, enjoy year and fourth this progress the summer. stay cause our the later then, Our quarter the forward today reputation only look sharing to we introduction our will product within the the I and be move operating AZT results help of industry is rest as continues rise, Gary and and stronger to year. ending September forward. Until and of

Bye.

Thank you. call. conference This today's concludes

lines a at your disconnect you may and participation. this time day. wonderful your for thank We have You