CynergisTek (CTEK) 11 Nov 192019 Q3 Earnings call transcript

Good day, and welcome to the CynergisTek Third Quarter 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Bryan Flynn, CynergisTek Investor Relations. Please go ahead, Sir.

Operator. you, Thank welcome call. to CynergisTek's quarter third I everyone earnings XXXX want to

Joining Mr. Chief company and the us from today includes Officer; Mr. Chief and Caleb Paul Officer. Anthony, Financial Executive President Barlow,

that could regarding to the are begin that forward-looking among and actual call would remind on presentation, Before a results to risks differ some including and uncertainties we made those formal statements webcast, others subject number financial results like of and I from the cause to maybe everyone future described those and conference prospects the industry call. materially in

Certain to the or or will company's update forward-looking statements or of disclaims a no be in CynergisTek uncertainties filings. expressly detail under alter of events is its greater these future risks as new information, SEC obligation otherwise. whether and obligation described result such are and in any

CEO, to At this call the time, over turn I like Barlow. Caleb to our would

everyone. morning, Good

with on start we imperatives to Before series laid I observations I the state along I the after the of that and and where go-forward a the out Strategy held last I my strategy wanted Webcast, out point XXX CEO first the my days privacy remarks today, us healthcare in five discussed security strategic back get that market curve. would of on job. a growth week

are close XXXX. our which remediation from revenue down lower in a grow of client years. to was which slightly adding to Turning due was previous services and the growth clients. discussed project, service This continue a saw third getting have our revenue customers Professional by to XX% completion we to we quarter, professional the largest XX year-over-year, before, new offerings in also compared down We as consulting our is started managed revenue as year-to-date. we large to

in last that XXX-day turn a this quarter week, stated there be will addressed few and we for the impacted need year. that webcast to on are impact the revenue As challenges

with a This the that's departures, have We takes in marketing pipeline. combined problem, resulted is distractions during challenge. the speed. sales later, about rebuild organization fixable to a have Multiple it divesture but half go-to-market and time sales operating at including the the

The the leader. sales an first addition of step is experienced

I of thorough start the and One first topnotch leader, player. in was for are sales on a things narrowing did industry search we a

reputation, of announcement hope the looking a speaks for We that of has on the experience an also in but tuned are network, security before to has healthcare. have and this year. the We this. importantly, language leader the contact, on end industry, Stay most the the

underway series and have on Paul is reduction cost on potential later right-size We position efforts going cost into organization a are more a challenge, us for already to call. savings targeted go the and detail growth. of to the

skill and strengthen team. our did We up

are investing professional for people. in our We development

We have we scale, at to enable our looking board. of focused recruiting on how and us improve are skills capabilities we that the will also

One acquisition and is accretive. we expand will that of ways by and the our capabilities acquisition, in are we are grow interested

Backbone compliance the healthcare privacy and diverse with out on They customer Backbone close two acquisition security we are also growing to quarter, This of in base a contracts X,XXX non-healthcare, the company Minnesota. able Minneapolis, healthcare and multi-year brings even critical and are the Fortune companies including market. Consultants. European Backbone for practice of based and privacy or largest It extends IT compliance of regulation one the Sarbanes-Oxley. and medical GDPR manufacturers readiness, with extends in our vendors, business auditing in U.S. Europe. capabilities doing is device which EHR in the the although our

They for that controlled system mandated have to are EPCS the certification of substances DEA of team auditors conduct Backbone qualified certified audits. is the a prescription audits. provider electronic information

every revenue for anytime because requirements at the reoccurring compelling features substance altered, most or you growth has the be rate XXXX this customers is audit They see with about years, of XXXX. to One the from they've to a two whichever having this than controlled of related is annual certification relationships a growth or rate compound done to first. have incredible XX% revenue business, generate functionality of shown XX%. greater their Historically, prescription solid XX-plus is to renewal certification with

pipeline. Backbone, opportunities to count total So, which for with on additional cross-selling our we customer the addition and brings XXX nationwide, sales of our approximately expanding bring

expand overhead, Finally, well delivering and all, to onboard came with experts. the and billable, talented, of our no knowledge, Most but XX services. acquisition capabilities, almost allowing new wealth to their These of people are privacy skilled information cross-train employed as as one bring a immediately allowed security in importantly, our skills us us will employees billable. Backbone

organizations, evaluated target also we the XXXX couple new risk an I Report, HVAC the mention how high for words want our LogicGate. breached Now, vendor. to medium Remember CynergisTek's Annual category and last announcement and to the by of vendors According XX% fell healthcare with clients. about was a vendors risk partner, represent a security week to into growing our third-party

Now, of the plans it have their and challenge deal upon just network. our risks, we that and a records down imagine then the a developing interviewing is comprehensive which security and mutually-agreed suppliers. managed Vendor clients, the chasing service, risk a remediation to but we hospital, identifying with vendors, between for medical across client are their now have, approach imagine big and hundreds of access management vendors, many

productivity offering. and improve one of hires, of Whysall, effort the our been Information Director recent for Carrie Former Senior Security Ascension more to has Services this an of the leading

This Now, could to risk. tracking easier moved allow also our activate between risk CynergisTek remediate close remediation clients risks. risks we retiring risk efficiencies With own our can assessments, we vendor partnership we risk operations by finding service, of automation gap as closing to we [ph] LogicGate, easy of garner will new quickly she that Combined help for to mitigation that developed make unique in-house and the capabilities, with enhanced the and management team LogicGate, and identify managed and our to offers activities. it partnership. and Their remediating solution. capabilities and and comprehensive solution such with clients can identified her third-party

we for outcome simply to no longer our developers our the team's we our improve and need increase own clients, maintain So, for own productivity put, products. software

build the you we need how once the recommend why get need Now, about to we're the Webcast, details and opportunity are the insight to haven't in we direction highly to again, do. our insight services. market if the into give should had to demand there. the I and The for you impediments into listen you XXX-day webcast in CEO give address. some market strategic going team we healthcare to will the imperatives The The you

new rich. we five laid revenue imperatives are can will give capture, Addressing that the close ones top what strategic do we adjacencies that it what, the I you out both the a Finally, those the are today to is webcast opportunities the in and priority.

I can work think start of that work have now hard a we done. getting and strategy here it the we

healthcare over from the also cybersecurity the some top Black unbiased XXX want have share survey provider industry. in news servicing week, the security seen, professionals independent and as advisors Research to Market last I new from industry, healthcare released of X,XXX an consultants you Book not just organizations and CynergisTek identified might

at well, Deloitte, Group, larger Now, Security. even KPMG, EY, HCI stopping and grounds old this Digital like Solutions, beat my IBM out to Secure much organizations

I'd Paul the a Paul, like ahead. QX With give to call summary that, hand financials. to over go of to

includes operations. Caleb. unless Thanks, is to discontinued I for mention specifically I'm about security business The that financial only information provide the continuing

for Security $X.X QX for by services revenue million the million, consulting quarter revenue versus this XXXX XXXX, managed to XX%. $X.X Professional third million, was increase to $X down million. XX% decreased decreased revenue an $X.X services breaking of

growth QX XXXX drop largest As back largest professional their million saw rate they of that versus 'XX result -- client QX this initiated contract QX a in XXXX. efforts was stated, services XXX%. and a our our We at this large of drove peaked were of the remediation portion benefit from $X.X above previously Caleb completing in in biggest 'XX QX of the of XXXX

client down revenue to $XXX,XXX, to the expect year. from this the we quarter, This about work was finish next early and

to the the that lumpiness We business expect continue. comes the with also side of

in revenue the Backbone into XX-plus this growth Heading percent we over from of to QX, quarter, anticipate add QX. flat we core and come offerings CynergisTek expect

as expect to we Although, make changes organizations, addition core XXXX of the looking offerings we a XXXX. to but sales see and marketing into Backbone, are going growth for slow consideration for start with the double-digit revenue we into taking

for XX% third compared XX% were the to Gross in XXXX quarter margins XXXX.

an approximate ramping reflective we in professionals systems costs declines margin associated last new mentioned gross managed impact. our up the in of of new quarter, As implementation to business, with margin added cybersecurity the attracting which the services, support the to are X% investment

biggest do expect the impact of We drop business to the services to and grow from as quarter. addition Backbone revenue, consulting the of Additionally, XX% cost approximately gross we our some professional next in and revenue the the reductions. margin had over targeted few this quarters improve margins

as the in and sales them to do rebuild in and $XXX,XXX XXXX and expect resources team. at marketing marketing of we due sales sales some expense QX less decreased this maintain salaries strength, redeploy better the we into to from costs and in and to our side Sales related support look team and turnover increase and We full marketing business.

CEO, non-recurring million those cover related expenses along the $X.X some activities. and continue of shortly. see QX the G&A new transition with to of costs expense the increased to due severance-related will our additional to transition this impact will onboarding

and with complete expenses the of initiated see year expect these targeted associated expense. CEO of next within offset We the partially the transition we administrative QX, costs as we removal reductions, cost the to on addition impact general Backbone. some by in When decrease dual this we

support XXXX expect to in in from to little transition We're To of we services give to but operating areas with earlier maintain this approximately expenses, divestiture $X.X coming initiative QX information organization. costs year, company. completed management business some be see year, severance about additional some added effort with of for we XX% approximately the million as we reduced the $XXX,XXX. We the to now identified cost have and then this estimate pure-play a reduction will able a the impact support more do complete did roles We total security the operating expenses. the right-size which to savings this this information

the or for the income, The $X.X $XX.X compared was for to breakeven loss 'XX, of on consideration diluted before or 'XX. had tax to million business, of acquisition, was to the for business, sale or the the quarter the the from million quarter be sale funds loss for the cash end and XXXX. expect liability million $X.XX NPS third X% Backbone cash revenues of million Non-GAAP EBITDA escrow $X.X the and equivalents and of driven adjusted around the third our compared $X.X balance taking negative $X.X by of of basic million Non-GAAP cash company gain 'XX of million NPS approximate adjusted into per X% share revenues receipt year. at $X our we

perspective to Backbone earn release XX% that earnings that financial $X.X three earnings million margin The couple year-over-year full complete for we're financials EBITDA at next be found came XX% out for take months looking full to to trailing generated from are It revenue. reconciliation targets but growth this XX and can of will is months the the financials out approximately GAAP business. years, to a for and non-GAAP double-digit Backbone's indication of the from today. a in looking conversion GAAP, information impact, initial the The revenue in earlier

to maximum totaled outs earn totaled additional cash Backbone of and and $X CynergisTek million million $X.X three-year includes stock. million. in common paid million, consideration period over in initial the $X The The $X.X

ensure execute the results, monitoring updated keep marketing investments and in to position current reduction on long-term will you to we our progress and cash and costs potential we can the our our are strategy, our Given area. and sales in [indiscernible] plan we acquisitions, this overhead to in make continue constantly we in

the the concludes open floor questions. Operator, for prepared QX. financials remarks please This and for the

ahead. Craig-Hallum Capital Thank question Instructions] you. from Please our go Matt now will Group. We from first take [Operator Hewitt

Your is open. line

at all for the Thanks was That Yes. Matt pretty This on color in is savings. Hewitt Lucas Craig-Hallum. here Baranowski helpful. for the of cost

gave, some there or you that initiatives savings total Just that from one that figure of kind cost maybe some going? of of mean, the the question though, there savings, is you that the $X.X on other have is million top other amount I

to we going year. severance-related QX get total That's into the cost. and that's that's identified is the the been severance -- on in are additional focused as There some savings reflected still move we COG that

million $X.X on could then Backbone Consultants basis? And to I there us you. guess, preferably about thank fast the you was trailing growing how XX-month trailing a in anything that acquisition, is Okay, XX-month turning revenue, tell

point. that at have this number don't I

some three and know at still are were We percent over do of least working years, but the timing on at looking they year-over-year we growth. the through cutoff, specifics XX-plus the last

any Okay, beyond then, the recently great. there announced that service just that potential finally, one expand is for And with to LogicGate, maybe offering? partnership

we couple a that looking good actually of we to very actually things of good is but the are I use it, That's are question, at areas. solution that is and different think maybe one that we chance in a able evaluating, a very there

Okay, all I That's great. had.

Thank you.

Please ROTH now Gibson will William for take next ahead, Capital Partners. from We question from go Sir.

Your line open. is

the your when to how book or LogicGate, with that book has worked Thank perspective? regards revenue do from that you this cost you. or share, revenue In does deal, the work? a how Is you added an you to

case Yes, this ways, we different a in a to way -– I using us. going is the looking cost tool mean for that for in of couple be primary just the are the

the as some So, goods maybe cost may types that sold support we be and There service runs as a is our wrapped business. through going where sold. goods and just will maybe this it be where of there but managed services, their will cost customers cost arrangements, core will situations or into one our referral fees or up to show managed we of the customers to and the of service other sell the

and one large backlog, else backlog of the look the how in in was remediation completion that customer, Yes. does to area? nothing And there regards or

keep Well, of staffing, ultimately identify above, all client's in process of can we own to of company dealing enter and thing that that's solutions, own where implementation we that work all challenges that the services, challenge mid the have. purchase any products, are in the is and Oftentimes anytime or a their we remediation budgeting prioritization. the involve and the might go that

as or As stealing and see shut conversation importantly, historically this and not occur the which you away more dynamic more those actually is to in more of that have significantly. we down breaches to forced breaches that to what being being patients, space, changes seen people institutions just move in data, can my imagine opinion, from budgeting able

stop but be Alabama actually with this the month Call up Strategy they last in a hospitals seeing were we three because patients, on week, ransomware, and locked mentioned saw access couldn't their had like pay couldn't they I schedule, records, clinic in ransom, last forced to their California see to sounds history doors. great the of They couldn't the that access just without doors. too having liability was it they to they closed patients the and patient shut continuing

why of of shift business is start nobody this So, the to terms people it how see in has that's the think going end in my but I fix to to lumpy, day, of real all. we opinion, a and budget, see here more more we're money the destructive if at attack these is

about may not from they involve to really it's that us. services or going what are may and So, fix, prioritizing

where regarding And sense you. up any aiming for cash non-GAAP basis? just flow ended XXXX, Thank breakeven? one Are we question, adjusted last up on of you

We're things still sales and we're got still Bill. of at working that looking We marketing of side. some a those through from the projections, lot

that provide really yet. not we're to ready So

you. Thank

Thank you.

Please We go Taylor from will now Investment Ross ahead. take our from next ARS question Partners.

people how can Thank and you. on bit little Gentlemen, I hit to on new opportunities. colors was looking a and wrap more the the with the and quickly the up and they marketing for run ability ground bring still sales

are we or short? and more are or we're think people we two sets skill do sales short you of looking XX salespeople kind what for, Additionally,

question. great Ross, Hey,

what Let here. me just say parse can I

jobs, work the As good typically talk lot when about put imagine, going of that's sales close in terms those you they got on team. I because to good people So, to scenarios we're going paid, in other get can we've how rebuild have can and then that right? way, sales not the a end people but year, background, lot a publicly of yet in the

the imagine speak know, need you here well, -- that can to as that not evolving in understand security we have skills As language, that market. healthcare expertise but only the you

here really news really and put the soon out we for as I good a across right is started the people door. as big initiative So, I looking the in the team came

and I think at. we've got opportunities, get to looking We them close a good slate the of moving. people fence, just we're over got those bring them

it's in. period, of to terms in up the bring level vary to ramp a the going skill lot we're Now, going by

and some right that pups networks there started You'll round get that with some of out. obviously as mix see to away, well highly then younger skilled a come people as maybe

of is and get we're back running what the we're the to of about people, half up right terms looking at of number, In eight sales XX that to to realm do now.

work as position, value-added of the an a result, a it this year. investor, to grow more would see competent, you be surrounded I would like -- helps made have the what that I to And that this as the situation it guys that to I'd and think helpful company that is, by say focused bringing board ideas company lot a shareholder, can more to around was think for I'm by board that as the you love get it I earlier there's of this the like sold of Okay, in to allowed you where missteps people exceptionally you. it the a great able saving, cool. and writing like, long-term business lot to you've and And the I make sale on excitement put while a to right you kind that but basically you're sounds got Caleb, be of around say, lot we because if and frustrated energy,

to we're to can do you that, hope you. we do. when I'm and I able So, see excited Thank do what

and the focused Ross. know, as you, Thank go-forward. you Understood, our I'm conversations, from on

think, I the you're doing with appreciate the call putting of quite and effort shareholders. week, and honesty last honestly I and information Yes, and out good, that the amount appreciate you're I guys made you the to

I and you think we we'll to base for -- us here efforts. your that's strong in start a should hopefully, reward somewhere with build

Appreciate that.

Thank you.

take go from [ph]. from now next FinTech question will Please our Jeff ahead. Bash We

Your line is open. now

morning. good Hi, Caleb. Hi,

Jeff. Hey,

Hi, Jeff.

concerned you customers major a the of and see of health is national I'd scheme, priority how the way, see that it beyond be I where if cybersecurity. insurance if more company so, expanding curious care? risk kind survival of some be and would health is a about company's much horizons

Well, that's healthcare has Jeff, pressure sign that soon. to been a and think reimbursement good look question, there's in environment going very for and there in down anytime if this I that's and general, years, slow we no at

Now, landscapes, cost of to this any face a is one a of the industry. the key to there, largest me relative the data say, only of the it double attracted the and this interesting the let's grow. other one I difficult what's is a the most and where speaking, of more think in adjacencies, here about threat generally breach part energy posture healthcare of continue financial the immature market, company, good breach services, other of or we security where industry, right? than has much looking is cost is really in also is it, one not it, markets is in that operating things the of it's The news and out about Healthcare can at let's

are on more But regulatory a what's other it fascinating market, markets healthcare lot pressure that because also where actually looks headed. of about like is the this

mirrors which Regulation; people to If European because signs We're been start both going more Privacy GDPR, see to appear type other you've do most but not adjacencies see see the to all we in pressure Consumer in to is Europe, to been the ignoring start it California do, and markets. go regulatory to we're the to healthcare, again, you're have start of of up. GDPR Act going into and relay we around work that only assessments here, the going upfront, going following the

is watching. major I if is that's perspective, this occur, of to all plenty think good we're pivots, start when there's and my mean, from see other the opportunities something So, walked but we're going least on a to the have always to healthcare, I news warning we a yes, going market, in areas more they're to bunch of I of the lot that this. think to the look in at through a more and call, like of going a we there's but start adjacencies, there and half dozen

look, things audit, So, in shore only to now if a do of gaps, and do, you offerings us acquiring to big adding this really continue and part stronghold big like I to EPCS and want stretch to healthcare, That we've of to really audits, by those in which go up healthcare, ability Backbone, Sarbanes-Oxley were will, what our the mean, in ability our start that into is arms I also up. a adjacencies. in but those our grow gives short some the not in

thanks. Okay,

you there took through on I care, site Now, Web a focus you particularly help certainly Backbone of no diversification the if in is really outside terms turned and have the look focus? choose that the see the and lay, whereas financial make you or suggest Is large if healthcare well-positioned which a three out. to how site, health on. a Backbone, revenues that area mean, customers of sort went opportunity to there's of coincidental, at mentioned Web so so where evidence, companies read forth the I

out you completely is any the percentage know put these is at without Web Web there, site guys the them, this highly to healthcare site the reputation, of a credence mean where they in Web honestly my I wouldn't relative three do if what offending right a an So, there, consultants. do real site, their Do bit afterthought, Their Paul? built Their kind friends non-healthcare versus things of I of list Backbone? different laundry they off for of put businesses. I regarded there's how operated

specific. I don't know the

their is but have definitely of of mean, relative also they're a liked and what fact in about of doing, what One doing earlier for healthcare-related, it all consulting, go to adjacencies, I biggest is kinds large device where two vendors. manufacturer, what and -- of work. They're part most is and right? a in this directly business assessment are in their doing some of they EHR clients I medical security your question, healthcare they're of they work their provide Yes, auditing, lot

but So, slightly to we little don't some but a some bit There areas still government. markets to and what doing they're of very do. to with are this of totally we're healthcare, healthcare, that in kind from that want also away again, goes adjacent back anybody and scare are but experimenting similar, outside where I my walking point they're local healthcare, work state about

to information Who's it's around something what analogous very get security and it? once actual you to like underneath that? it? you is. what totally although provision actually it What what access also How camera captured heads in a we have does like know, they're audit, today, your video around some with data are your storage the the the scratching are record, private collection Well, "What work see things medical we the you auditing just on, kind doing do would healthcare site body-worn So, mean," you from of like to body-worn Web You'll storing you're from got a and to disconnected that the turns have world you cameras. sounds treat certain in doing it? of out on probably this that states, it privacy,

little that mostly a and our too arms, legs far up a because move it related I So, opportunity it of things to a but in healthcare again, or from the adjacencies, bit us like bit, our does giving us base? stretch away shorts lot an

Good.

you all a at in of I'm the whether if more there, salespeople? pricing, -- service little some other see hiring any sales know, than industry market you issues of good is get the in part surprised the I'm what would just larger problems words, competitive color sales departures our being but elements slowing it offerings exactly aren't interested more demanding, perhaps question, nice, Next you be growth,

me there's let through I parse think unpack -- of think because that. so let and I -- through kind go me there's that,

some services-focused, sales first are we more left, voluntarily So, the some fit. terms little and and hired are actual of of them had of this people departures, who all, wasn't people a product-focused in that

go. addition that, let were some that, there to In frankly, we

So, mix there's there's a of there. bit just -- understand a

the of to this, had direction, I many if pressure, pay bigger per pressure; what bear? the place worth. hasn't work it to it them regional are they're underneath, mean, they're just isn't market remember, the I is you, pricing haven't been these what pricing have I'm They can't people, them get go so se, piece an dig willing I'll you I've I a second tell downward that of much look in, them. at XXX to that seen can't The is questioning if there and pressure, hospitals market focus. hire to in but area for pressure, really question it even days will want just time the I and that located to in areas, they My

look our at pricing see I really to an there, in depth. So, and want we opportunity

really it's So think good I question. a

quarter precise quarter it have I I'll and a Ask again a think next answer me more and to it, of lot after for a you.

In it's we're it serious become certainly at reimbursements a going but where watch. -- something, there absolutely overall I pressure, that least institutions terms healthcare that not see seeing think of market yes, at issues mean, yet. to I maybe is challenging. certainly scale, don't more yet, don't there we're I are may

the significantly. changes completely That things change data will the exploitation to ever seeing we're you see On the impact. hand, someone from point trust, then right remember, healthcare where the institutions, dialog to we them other where attacks having manipulating data, at forbid, these God being a and more and institutions seeing actually start are moving break even kinetic in

pressure of what's bear, part is bring market a about in the on more the they are you the this bad see like, but to going just kind that. increase should this dimensional, space. guys this offerings to do, and to in right? put it's and we of three So, interesting market, market continue is And they also it's pressures then budgets what not this right, If

actually some terms Now, offerings, in The our testing other on we Ben Strategy scenario the of falling he there offerings testing, of we lastly Gaming, full-scale we lot lot multifaceted have as penetration expertise a reboot that's needs what's in lot behind Call, that. going think an go Denkers, demand our and are you of to what we our penetration do. pay that offering a act there brought absolutely where than People a to where advisory more area, more a more we're is that willing into has a changes make. and and attack for total we today reboot. pattern. are outlined in called a this in can we news good It's and business Red I are to wanted in think don't literally

looking We at got sure up. other areas offerings them just are of short we our to make

example, in Strategy Call, threat our things need is one into awareness bring to the for So, about other some the of of the talked level I assessments.

we're of So, what those are doing. examples

your from company share and I that like has Investment And Okay, on. last I'd different got disappointment Partners and ARS hear a where perspective, question. answer into which to itself great. the leads my comment

others You it's and with in have acquisition position extremely a under for come bucks three be to radar made the them to horrible IBM, in have level, Backbone, of stock across and this you already, just an acquisitions. looks stock like great a you may it's price on issuing may acquisition, or background at a

itself recall, terms wondering, financing do because in entirely if what's was of almost being your on by acquired CynergisTek in beginning that, you the you'll for use of Auxilio general where So I'm XXXX? and comment to able stand debt debt

key, hitting challenge. a you're think and I both opportunity

services On not there of fit the there companies are even opportunity part variety fit though no and you is in, like remember, side, company. this a of the what out accretive. a do have market, there about and of that overhead, they something, segment they pick love are we're we're not Also out basically that integrate but small, there only quickly, it's we when companies Backbone, can can quickly, in up you them I and company, buy that do

all the We I and developers, build to So, so there's integrating plans I'm development I job, consultants. in just and former timeframes I mean, much got my and here, not have think integration easier checklists methodology. and products of would because

question Paul the come of phone, solutions with You how and then of pay how having figure comes board, arise, on exactly working as those us that on opportunities focused out is, grow. I hit it. you do to Now, the waters, problem. to for those with all and keenly the with I'm together well lots it? best tricky folks continue as conversations navigate like to up allow to you the are

other than all keenly looking of options different problem, yes, I benefit that's I'm So, the saying, of at a look, that will aware non-answer realize shareholders. we're and the our

thanks. Okay,

So that's go to else it me. from We'll someone now.

Thank you, Sir.

take [Operator Fisher Instructions] ahead. our Avi Please now Cast next We'll question from you. Thank go Advisers. Long from

line open. is Your

for flat you core break mentioned revenues down Can that remainder it professional please the the services you year. be managed Thank of would service? and between you. Paul,

assume general don't guidance, but level last we in would give going what similar probably it's experienced of though I be We to that to Avi, quarter. usually

So, continue to to range? XX% XX% should in managed grow the services

Yes.

about the my cash asked the of around question Jeff $X the issues in risks balance. million Okay.

I you companies deciding won't there. -- you same other I competition, from dig see So, if from curious in-source or or see it other what mostly see wondering of do pursuing some to into competition, curious form that. customers I'm clients the am I'm you

of I don't it makes in want hand, there's right? the competition part bit this, of Strategy of of out edge this interesting, the what a the where of to is one of a picture segment kind Call where on drew a but on of market kind the not just -- bulk in of that. traditional competition. market, with and which Avi. interesting, ton not really of the frothy I there's sits, It's We're over-rotate it's on

big the firms regional four have just as Now, as well both kind consulting still players. wrong, we don't get me competition mom-and-pop small of from

into institutions. one The every these can hospitals, worst thing happen other almost mind one have of unlike when of is challenge to in incident is you that not you keep industry, in in that these walk the cybersecurity

all the they are of security, to want they on constantly what on relative information have spend other they balancing them So, they what spend want people's to lives. save initiatives to

first the dynamic. that's So,

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