CynergisTek (CTEK)

Bryan Flynn Investor Relations
Caleb Barlow President and Chief Executive Officer
Paul Anthony Chief Financial Officer
Matt Hewitt Craig-Hallum Capital Group
Jeff Bash Fintech
Michael Potter Monarch Capital Group
William Bremer Vanquish Capital Partners
Call transcript
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Good day, and welcome to the CynergisTek First Quarter 2020 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Bryan Flynn, CynergisTek, Investor Relations. Please go ahead, sir.

Bryan Flynn

Thank you, operator. everyone First welcome Call. XXXX to want to Quarter CynergisTek’s Earnings I

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

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

Certain our to turn the risks Caleb or uncertainties company’s call update I’d forward-looking statements, or be disclaims a no will in CynergisTek of time, like filings. to expressly these under alter of events is its are in CEO, future or as new information, SEC obligation otherwise. to whether detail obligations and result this such greater At the and described any over Barlow.

Caleb Barlow

and Bryan, It’s month we good everyone. you, Thank a talked. only since been afternoon,

So giving more COVID-XX the around business. impact you on and by the let insights pandemic it’s some having me start our

institutions a contributing revenues are elective many on crisis For of public procedures having directly this well hold, doing well impact it’s cash versed this put perfect health and crisis many to front been the public is crisis on navigate low. we’re our to the and everything running are that storm, sure crisis, and help reserves financial the can of America’s you’re hospitals. clients all on a we them clients, have I’m But at well lines is down our further. at as in health the

increased threats of and multiple the UK’s all as and FBI Security, and cyber security security the this, Homeland to and the physical of NSA, public to of cybersecurity national Department take government the likelihood the with look are warning cybersecurity add sentiment. To of infrastructure hospitals, and agency, Interpol, both vulnerabilities including to the security agencies, increased along advantage community, information center

dramatically, adoption The security telehealth of forcing perspective. to play many from curve has our a accelerated catch-up clients

New added new at each same but vulnerabilities being exactly care are network time. commercial-grade personnel to streamlining both introducing potential day, the also and devices the

landscape change impact many only The health care as the mid-March. our began clients to the continues of feel pandemic of to

personal operationally payment course, out clients' was pushing and operational. its is month included ventilators. volumes. planning in our contract is and involved for support services. start and first us Well for dates a impact, the It core surge potential terms, impact add chain with preparations patient for the approaches manifesting modifications and later supply of of extensive coming both building for financially. focus, preparing customers capacity This protective Early to Our added in inventory the equipment levels to even

recovery. as and Now strategy evaluate business of have aspects risk the this we long-term mid operations, the the increasing risk threefold a to the the short, to across we our address

absolutely So in here term, support to our the clients. short are we

and security on to continue the and a reduced were as will trusted their needs. headcount for where privacy focus with possible, team deliver Our practical. act sales We’ve advisers expenses maintaining

customers. our our supporting keeping the to Given required, and is incredibly nature team intact important work the skills our of

work a remotely to and frankly, steps we’re remote, learning still work I XXX% necessary tools, Now am our and, remote deploy which procedures proud to speed efficient. taken And many environment. the culture of shift make we’ve though it are, more they Even also and even of the team at innovating. frankly, the we’re

the safety team focused well-being can also of continue crisis Now and when those on learnings travel this the will we even I’m once again. passes. ensuring

focus pipeline is with into opportunities. rebuilt within after security remember, Now going working the learning assessment on new closely expanded team clients with our expand delivery enablement our an ways and to able sales footprint team, identified to new correlate and we our risk the the offerings by teams service been sales our you well. as They’ve to

a reoccurring the by base have revenue continue solid managed services growing we announced this focus we large two contracts and evidenced as quarter, base sales new We on to of during our with will revenue the team.

started seen moving request and second of delivery even our decline year. the QX However, in have as we slight out the to into a utilization engagements clients half have

deliver short-term expertise the the during guidance to crisis. and Our our to is goal, clients to exceptional again, in continue

understand as sales effort making their lines and to needs delivery Where services we’re both well financial product their security our as in and to Our are necessary, teams delivery their with concerns. balance to adjustments needs. working time an them communication constant and in

to the set for the XX% already payments. aside midterm, however, have financial managed we’ve So deals into slip make including how money, seen is in businesses both they’re right clear. well are contract scrutinize public impacting utilization idea starting and all delay and last, not clients we funds or budgets, now, distribution We Yes, have spend. and health like of pandemic losing started this will own of know QX, hospitals, decisions financial and QX government Clients and clients, the the has they’re to well-being. to their of as long change approximately no aid services the have their that terms responsibility as requesting own our

and within a We constantly will of remain looking in but opportunities there course, for our to share way. market, for our disciplined gain are clients

are efficient executive both and temporary the be flexible more organization support reorganized includes more leaner, coming a ranks. performance. reductions, back of will We’ve recently out reorganization adapt These also reduction to The workforce, permanent and company’s our of and to improve mix the office, of the a this. business and primarily

to they and fundamentals the are And resources as our In the teams term, on our and continue supporting driving the long sales focus of business strong. we delivery are will business the clients.

And period out move to we goals, towards continues in and imperatives our care priority. impairments still rest XXX-day we’re to webcast. only the that of of recognizing managing continue get it as timing laid security a may five those this towards change can CEO there. uncertainty, are Those Now assured, still while be we we business. health key the of the when But privacy

We’re close continue leads, deals. is our getting we still and to strong, pipeline still

focused of once just on pipeline, that scrubbing much the We’re so or other the the taking side get the working are more fundamentals and positioned on costs unnecessary any well inefficiencies out quarantine. we we

Paul will Paul, the a to to of summary ahead. financials. the call now go I give QX hand over

Paul Anthony

financial includes get for QX like financial responses. was COVID-XX in business the around only. specifics XXXX if start Thanks, with mainly standard Security into million, last work to impact to I’d information, security expectations financial it professional lower more services is and our the initial then The disclosures Caleb. the in completed revenue quarter most with for of from customers $X.X contracts had large who revenue the QX line and of decreased million to by consulting approximately that year. non-recurring the and due $X.X remediation and

QX XX% managed down acquired $X.X XXXX an year consulting versus million, QX Professional for over XXXX, Breaking $X them. quarter, revenue contributed million a increase XXXX, in was to Backbone and in X%. for was the the Consultants, services of services $X.X XX% which revenue increase million. decreased

QX for XX% compared in XXXX was margin to Gross XX% XXXX.

go-forward for on due and up recently that a quarter, the the as compared attracting labor some of will the in labor to cyber total to marketing a we We the in costs saw were in in reduction reductions to and ramping due security in and margins though, staff reduction and percent consulting XXXX of services. QX costs we additional revenue a the improve with investment employees million new the services, expenses flat and basis. costs an period did professional XXXX. Although associated $X.X at costs retaining increase some same enacted end see at of Sales

increased This professional to the period $X.X XXXX to G&A comp, million million costs for million million $X.X and $X.X backbone in the costs stock-based then additional compared fees due QX $X.X for recruiting increase million expense in related additional XXXX. was $X.X additional to in in same and costs. to primarily

I’ll taken to reconciliation EBITDA GAAP year-end at information non-GAAP be QX, that to XX% The found in revenues release full discuss out. earnings compared have loss the XXXX the Both XXXX. G&A QX or for $X.X and adjusted for came into Non-GAAP was shortly. of can expenses, $X.X we steps million reduce of which to financials and million

health As on industry care we’ve discussed provider space. business to in short has basis. care The health developing in this and long-term impact the uncertain concentration a past, and a daily the our of is side still

new seeing opportunities uncertainty now, we challenges. face steps these right as a mentioned, we prospective are think themselves to clients many these pullback and when lot and respond react to As customers. from there’s that well number of To present taken developments, existing some we’ve us of positions Caleb a

The these funds we maintain the to through uncertain times was first needed critical support secure step to resources. critical necessary took and business the

started As to tighten. this crisis significantly market developed, the credit

we were investor Fortunately, month. announced with which last work an we to obtain an to equity able existing commitment,

as to appreciate also Additionally, the were impacted, being funds Protection Program. customers our how Paycheck secured started we through we

each the employees travel, provide and month save how that Second, $XXX,XXX on year temporary compensation, have will between our discretionary partnered depending and with to we some made and spending develops. $XXX,XXX an adjustments to opportunity

to that in month gross will saw Next, us we targeted this well approximately $XXX,XXX and $XX,XXX reductions has and as and reduced margins QX we $XXX,XXX impacted save charges made projected per expense addresses This permanent in as that reductions result the of reaction negatively QX go-forward expense and a that onetime QX. approximately in utilization pandemic. will the

position the signs we and questions. the from also built This concludes open see Finally, reduce to customers. QX to floor if for the further company remarks plans please contingency and out financials the continue to we for better industry Operator, XXXX. prepared negative expenses our have the


[Operator Capital Instructions] Group. with Hewitt Craig-Hallum question come will first from Our Matt

Matt Hewitt

for a few me. Just

so you that expectation on or again? puts XX% on be First revenues a you’ve comment up QX, got increase more seeing push-outs year-over-year, in quarter, some takes. that contracts. the quarter? to obviously, Is would or but your did off, should it Or some growing start you’d QX you strong new regarding Backbone, and anticipate – second we where do see

Paul Anthony

Yes, and our is that’s QX now. be anticipation definitely right QX going to

Matt Hewitt

Okay. gross the gross steps taken steps given margins margin, there, expand should that some taken, in then in that And – far you’ve the quarter? as you’ve as second and QX, will XX%

Paul Anthony

we’re again, margins high mid-to really XXs But start second targeting would even driving the towards QX to expect gross quarter. that back to We range. QX and in improve

Matt Hewitt

the housekeeping What million in is high current the balance? a okay. And XXs, maybe $X.X loan. since Mid-to exited items. key. the the cash investment position? as cash So direct then But as well couple you is is What PPP then, current quarter, number that your the

Paul Anthony

tap commitment. So didn’t the we – didn’t equity we initially

latest the taken as We of bring cash of cash the from program. now. in month, in. million in no was excess did we’re currently, million $X.X there And right in, So $X mentioned, we PPP as

Matt Hewitt

Okay. one Great. And a for question, you, then maybe last high-level Caleb. item more

alter does you? have that opportunity increased interest So And that information types Obviously, of companies Thank that hack any treatments about intent our vaccines yesterday, were been but been increased of for increased of it’s general, outside foreign either from of interest there you. the in or where health you? trying some stealing there’s an for pharma an risk, several companies? to talking the whatever potentially how type an cybersecurity there’s opportunity those data, or what reason, companies, to setting, countries, articles does whatever, create have of you with seen represent an or into for hospital care the

Caleb Barlow

the of health is – public this you led think same a financial crisis, term and a to the So industries. in many care crisis, storm, a best perfect comments in health Well, right? to time, truly have describe I has which the which this is led kind way we crisis has used at this,

of that right? health that, a You care. also couple there’s reasons a cybersecurity have manifest looming particularly crisis And for in

certainly, interest nation-state research level actors. around there’s from COVID-XX One,

changed with and You where business the the forget, at that reports, are a that’s talk in people have fact right? interesting changed. too. matter business are don’t also reading business, bad an the that’s dealing too, whether they about no criminal, their this, human the also entire completely dynamics. Their organized of they more it’s world likely that’s guys or And quarantine, news causing You has adversary, are, some threat home, business are has the nation-state landscape of

in traveling, in aren’t were interested they right? in past are past has pursuing different, been that’s cyber, making there you travel places than hotels The say, let’s because aren’t or the anymore I traveling, are If actor were in when money right? targets tourism, on or past the an going the and people or after people they’re mean even whether those physical well, physical kinetic, or focused,

to see shift. natural a it’s So

are businesses vulnerabilities. analogy going home. get There’s like you new of never folks I think is to the lot revenue castle. ever thing evacuated do is locked a the a should from give want a in metaphor, you’ve up I I the so here’s and princess be can next, everybody you opportunities course, what to anticipated wall, the the medeval looking crown And archers tower base a security the on there’s make the give but castle, fast And information, are bad you’ve on, But medeval new were just right? But where mean, jewel imagine and got I’ll they other do guys. got and their the also castle you. for one working they would no hands that here. people new are many

operating from defenses and in at of hospitals, Everybody You yourself. the we’re needed to but literally most get those an not to to that to of beginning just told it risk now firewalls run do and only this that’s everyone That’s happened, those off outside we what but industry. people during understand. creates and defend what get operational forest, the crisis, outside only absolutely traditional frankly, enormous is defenses,

opportunity? it we’re us It’s the Because executing or that’s got through changes what crisis, going particularly there’s laser-focused marketplace, and customers matter create when that on. also to it a you’ve navigate in opportunity. Sure. creates could are just financial well So that risks a of anytime

Matt Hewitt

Thank great. much. very you Understand


on, Moving Jeff go Bash we’ll Fintech. with to

Jeff Bash

homes happening just just add effect what a you with databases on work that, the so where all setting me security I size people’s what’s main to if have the in now some access provider think Let about at and information place, they’ll therefore, forth it you service really, home telecom Caleb. points cyber so in comment increases yesterday that came does said, a said companies that up are across the at And many enterprise access to and on over major basically is company. enterprise immensely. that risk that

Caleb Barlow

shared a Look, in a Zoom my I that’s else just don’t myself my probably as children unusual, shore right. in there’s in I on of people People lot race And of go of I and obviously defences. meetings and absolutely in lot computers, been right because in workstation think I going own house. by house, even my four taken networks within on what these now, mean, on You’re do everything in right? from going mean, protections have – cases, a now we’re to a house. lot are I isolate I’ve needed to to my a corporate think ways, quickly it connected shared those could all even to as up home be possible. But

Jeff Bash



a revenue million $X.X Backbone QX, absent fell the Another questions. Backbone like off non year ago. in Paul, of seems really from cliff the it my in revenue a

contracts percentage ended versus Now drops. pandemic to completing is due two up what of the that that related roughly

Paul Anthony

mean it those a over of two almost Those two were reduction $X.X was function million clients I clients. quarter-over-quarter. in entirely

at we’re least not seeing to specific at revenue point, a drop So in related COVID. this

the We’re seeing more or in clarity an point to buckets on not on add going at just what’s until get we marketplace. those increase this

Jeff Bash

margin gross this, to a thinking in little Are gross you then been And good Hewitt. The you going of high of or that hire more of high when now the startled you terms quarter Matt past, XXs to so other In I’ve reference because the your your that a the next XXs last so was could on question XX%. get side pay here margins? I answer and having at of forth, all the structure quality again see expenses actually to folks. in

Paul Anthony

do growth believe that we possible. would the With hope I receive, to that’s

I monthly push the number into start think mid get into changes to the to recently the we to as higher that given think of have we’ve made opportunity that growth I and so. high, that numbers we get we levels to back revenue the

Jeff Bash

then from be judicious services closing, That’s publicity for answering hospitals I’d the demand how And last little I been medical who do my given friend hard horribly grossly diagnosis, that get can’t laying the the had have question, the this. of levels comment. mean, more been the conclusion about to get enormous has in know I’m it. excellent. be on. mismanaged escape is you and mismanaged, way, surgery that, Caleb curious I We’ve that elective the people moment a a is I guess, And conclusion increased step this escaping you time and off at either. say, having people that going all a and have on hey, who people because professional government, the this everything, back include have can’t a pandemic by and what’s for surgery cancer of But

Caleb Barlow

now, different or right the ground. data Well, gear limited which absolutely you. the look, crisis think you not than decision judge normal what for is There make to I say have myself, I but You’ve is government, into can different decision including think that have making, information very I leader, on shift here’s and any making, the a probably got is with which to to decisions place right? really time

jog to that is later do there trying ever day be got willing playbook nobody’s even because You’ve landscape your go no in for, decisions and is back to through been to before. you’re and what and able migrate pivot own a a on

we the it’s is lot that And – think like. there struggle execute that. articulate really how resources and what don’t derisked know and every long that not to you need honestly, at, can lot of how what try to we during now we do what today I decision of because and Jeff, better count as and judgment on derisk think, make do is ask of types But through I maintain this. a here, look don’t possible. calls as know much to of think, with what going make a to can team, the We reality a What people navigating going constantly bottom mile this through I a last. side, evaluating how those day we’re the my we to more of think necessarily know the to is I of only that’s the you ask this but look tons I other comes than word out ourselves most my And is part

Jeff Bash

Well, Even am I in whole suffer ship with fact I the I in in New anywhere. wouldn’t the be now, I Fed to there. up seems the the it York, the hospitals back that’s that idea think at do full should frustrated to hospital have that got because disappointing case we living because And worse to the was am It’s the it. aren’t. state. they and And of hospitals be beginning gear in me the And say overwhelmed. this with a second don’t hospitals so the to

Caleb Barlow

about this here, a is procedures going at to No, aid way, of soon as some mean, itself point sort I pick some there’s and yes. about end things it probably a and lot right? back I will dialogue turn care but what up. on, hospitals There’s a elective think health not will point, backlog are yet. also, don’t to be story sector. of some back going those these to mean, restaurant And the of on, as turn back at of the that giving we know

the their what what to down big really we see get are business think extra $XX comes in – their going spend as account, question on? they when bank going it it I for they to the to our to are

needed be constantly going need of you totally what cybersecurity is two whether bank, I the landscape today two worry that things is, remind that meaning, what one, to hospital is to a important ago. how you threat in totally than different dialogue. about or months changed, worry And The to a about you’re people has

Thanks, And going and to the surface. And something attack And chance of the have attacked also places then move people from not, is out likely the that what second well, has The thing if Anything it, worse All realize happens. they you’re happening. around be Jeff. completely protecting see else? right. faster we’ll your better themselves changed.

Jeff Bash

Thank No. you.


to go we’ll next, Capital Potter And Michael Monarch with Group.

Michael Potter

health you that they risks the that everybody us can – horse, I had have to before. hospitals, I the many are. there beat become get cannot areas Obviously, have to dead covered these need but of as you assuming have a does or expanding? pipeline assume of a do theme, quotes I on as increased well. I’m be once funding recognizes Not Officer their hospitals same guess the the in more available? But lot appropriate to Chief there’s a networks to the person give these dialogue. weren’t expanded. changed, Have know plan our Technology our that it potential to place, Is

Caleb Barlow


let has a some things color little face meet face, the that the sales so imagine, out So to someone that mean, can’t to and do, can launch. as you of you give would a in you clients, on physical take especially salesperson them doing. things with changed into go you completely me I we’re

all would the do normal do. you can’t You things

impressed a both as well that a subject we of need sales changed the with get can as in However, more hasn’t how will dialogue people to continue clients pretty been than ever. matter having or thing the one say because whether creativity the of expertise our of I’ve it’s dialogue, dialogue that information willingness I front is

to And happen versus a that’s going just in now more video face-to-face. conference likely

by encouraged to And airplanes, that’s of stick. actually fairly and cost-effective at mean, lot well. been more people same always than it’s getting So you it. is normally that and efficient in a the I’m actually probably level I no, has cadence going see but some frankly, going pretty on

I of first it. the So think piece that’s

coming of is having clients, out our dialogues really look is piece cybersecurity second business the that a are the including think evaluate one remember, of big lot that posture one these of our at will in go been a with the and changes parts occurring, to the other And the we I company. what like I’ve going looking today, of is we side. is few this that the

And but executive we assessment, that and advice what talk in through workshop also manifests not integral guidance learned. where only an them and we’ve

biggest talking find is guidance. at myself because What really did has completely months explaining everything relook have I about things changed. the now we ago, six it you of One to

You’ve work they got all normally connected these from your to weren’t that to have connected vendors home. network, because

whole staff, You’re you taking your administrative put them at home.

You’re care doing use health records those the consumer-grade products things using – But you’ve not tools work you on health you’re normal you up. to meetings, with care that what to not got in go that’s like shore Zoom had would do. because

Now I people challenge the other really twofold. the out – what on got in One, this need we’ve is figure to side. think you’ve

– I idea got confident think I’d are. we got risks really we’ve good be a the because we’ve where of that know

lead to back is But show their of budgets because that’s willingness but once a get crisis financial got And got they up open – they problems. realize I conversion these have somewhat be second to they’ve shore this of people there’s question then out of in kind those think and the up mode. delayed, that

will out percentage this, health some in but the after in dialogue how all see interesting aren’t hey, large going is and There’s there to other it’s go chance a also crisis. this changes there’s this landscape. kinds we telling care of restaurants reasonable no The of unfolds, that,

right? companies predictions the are we’ll that are up consolidation, of solvent, systems that of that lot the The will see that lots solvent are aren’t. a likely buy ones health the And

the lot are is differences what if we in occur dealing thinking to happens, of for which systems. right are larger consolidation, a think mechanisms the that we’re what So likely do required we’re now the about as services, or the is that with delivery

issues So XXX% And strange these not where little extra way, exactly a opportunity look, now. gives utilized an think really and do having in doing that’s time homework. us we’re in to what our right a we’re through

Michael Potter


we officers changed. the though back a very and So Has at are hospitals these begin health aggressively? they dialogue technical tackle landscape many question the the knowledgeable, quickly I do the know – to of open having over to this with which worked started And up, and that when to lot they’re networks has right? of years, that a guess we’ve is area things and an have going for

Caleb Barlow

Yes. I buy not have that I this as help of broader even the the – groups have to well. is not dialogue us have as we are they’re remember, any timing to but It’s Not but want engaging there’s over And over that in certainly our per is. to attack, to going also It a individually. we’re some a actually whole industry se, only people dialogue what community as lot as think also right? third us work clients, vendor broader dialogue, not going have an the the and well right? they their to control say But to control have that with actor are just trying scale, to we it’s with play, on it’s also directly having what bad only I’ve incumbent And they what guys. dialogue. frankly, clients on that calling one-on-one have been to we’re the a of

starting could a all impact XXXX, in have in particularly And very in – It’s that this. massive as to ransomware, largely stopped. things That example, big on back happening. health an what’s can care. these you change creep of We has increases saw really in and

part, few exceptions, to hasn’t a the on right right at for attacks have of look the laboratories. whole lot been of there most most hospitals, news, pivoted now, you just now If it with seems to

deal hey, And about because draws what think just around, to even it a arm? And people I how hospital, in how attention it. there lot of drive questions we’re can that to do my things. a more need with So research do do getting I

Michael Potter

guys. thanks Okay,


William hear we’ll next, from Partners. Vanquish Bremer And Capital with

William Bremer

question. first The

now. what needed time? like I’ll at team, to is but would service what to potential service right in wish, offerings, stop add you our your personnel, our over not And else terms Looking there of your offerings had this just you

Caleb Barlow

mean, one pivot let talk I’m on give past things about I’ll talked kind is teaming, I intimate underway. me not on we’ve from to of call, call. going you the is just open detail say, the Well, that every in so to about an the the But competitors red penetration well testing of

to are also what can little sophisticated we variety We of a that there more more in be deliver to ways continue we that sophisticated think clients. our a

But capabilities even, only the bring also not bear, needs than small to technical needs in dialogue. and very are in of the the hospital, reporting frankly, that but larger of recognizing system the of might a the what the regional different we

So that the the a And we’ve training to come out do we those other is bit and only team make a of time areas focused. that as are now go. whole side the of keenly all we’re little lot ready to that research, sure got

William Bremer

our been so you. say, year-to-date, how let’s secondly, speak? we situation? Got I’m do curious, and act how just of have say, to And handle do And as any we clients attacked that would

Caleb Barlow

everything attacked. Yes. you response. from with deal I are is talk or security happens. we’ve have really helping even and with recognize anyone mean, yes, been what what can done them their all the with get feel policy, day clients be us robust for them to to posture the that job we help as in about our We most a in A regulators absolutely would I engage, good have have attacked have But attacked what that we can or function never of clients time. it

to good those to people. we things the says, our from at help a a I’m talk about for down things with win never And in looks or would just another I is happening for when every incidents regulator client, recommendations, good a a win recommendations clients Obviously here. our quantities but that and what the because first That’s happen sit us. preventing big day bad at respond I looks to do the like place. regulator something we how clients. obviously those happen good anything and at okay, to looks that did, But day, specific or us can’t

William Bremer

thank you color. the And understanding. I completely for Now


Goodman And next, Be to we’ll go Ben Holdings. Good with

Unidentified Analyst

have government device federal on interest one that things two if service. reduce has telemedicine. positioned medical have around going? this can are any better done you lines, the changing that? services or in like any into so if Thanks. whether And that’s thing I’m questions. give along they’ve regulations same services, kind the for you One, to situation us wondering curious if And do in Good that afternoon. your is insight that in eased some any management see I I’m restrictions the you you seeing of Or where worse? for up

Caleb Barlow


combination for of heard companies would them touching piece. into inventory patients. hospital, devices X,XXX, use let’s to are figure use network with in and environments many X,XXX with plug get might where the are. scan really gigantic they’re the, devices, the IT start those because because It’s just people Traditional – kind have a both IoT things medical probably a you’ve in let’s they’re things. you of to devices, into So you and the these connected you the devices bring shadow and of are of the very connected and of tools of to and Medical to problem challenges which can’t device Medical difficult they network. out them a

over. can can’t win you you go topline And

bringing we literally. So uncommon scenarios. figure that patching And not find running one I we’ve in these which good are these XP. companies of to to crane the they finding can mean, really requires XX-year-old it’s helping MRI because deal got how continue so I with the it devices, them. isolate to mean got a not out uncommon at upgrade a

a is business start It of as we think key this will get that of areas newer of So I has interest of pick whole up we’re the level. really be in services. one that outside to It’s terms And one three just our take a put them hands let’s It’s and manage mass looking. – that for rate it off problem way. this for a your it for their flat for we’ll years. And typical CIO. big very

again? question would sorry, remind first was your what – Now me, what

Unidentified Analyst

Well, telemedicine.

earlier, and off the two, that you’re government has deal likelihood, probably taking changes number to going were some pandemic a are on making before just of to eased telemedicine this with the stick already one, federal like was restrictions all that. happens. you in the Number saying So

on securing that you and growth opportunity, take if wondering traction telemedicine in got if area as significant so that just you’ve that. forth, is I’m So see any and what your

Caleb Barlow

it, slow for a clinicians to piece And and getting is finding and the the in same paid was completely way happen, to in of approved, deliberately. constraints probably very here’s devices was two I telemedicine, It’s the people it slowly going Telemedicine that’s do addition to and understand. But roll. huge get going think very opportunity. think doing reasons way right? One a of methodologies about, happen lot those was but were ways to technology that, The a there right? And this and this, to the didn’t it that for don’t doing right? securely,

So had handled by have you or that the constraints do the And patient meeting in a you. phone could over get same also reimbursed wasn’t Webex way. you a or what around

paid absolutely come the like about So regulators weeks. in years, two, and the get just of don’t in of XX acceleration all happened to you things, your by it an innovation sudden, temporarily, security four worry say of when my up office. in we in and get a showed X two privacy And estimation somebody constraints

as needed a I’ll Now right? security absolutely happen, professional. absolutely this to and say This

to accelerate It and safer. was the right make this decision-making things

appropriate that likely consumer-grade those and provisions. of that, clear shore is systems with protect and have comes security now to used, systems of get going what be to We Now think full temporary. been I the there’s of off clearly all the up very and is this, systems this about that on need kind are

opportunity acceptable certainly their has we’re area as from of be perspective. in there’s of indications security yes, from reimbursements a It’s where to discussions. regulators of what out an to having in as course, an well privacy come new and a lot as there. well the of both And of this as part world, So this terms

Unidentified Analyst

Thank you.


for today’s thank conference. conclude everyone participation. to their does We’d That like

disconnect. You now may