TSS, Inc.
Q1 2021 Earnings Call Transcript

Published: 17 May 2021

[Operator:]

Welcome to the TSS First Quarter 2021 Earnings Call. My name is Darrell and I'll be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to John Penver. John, you may begin.

[John Penver:]

Thank you, Darrell. Good afternoon, everyone. Thank you for joining us on TSS’ conference call to discuss our first quarter 2021 financial results. I'm John Penver, the Chief Financial Officer for TSS. Joining me today on the call is Anthony Angelini, the President and Chief Executive of TSS. As we begin the call, I would like to remind everyone to take note of the cautionary language regarding forward-looking statements that is contained in the press release we issued today. That same language applies to comments and statements made on today's conference call. This call will contain time sensitive information, as well as forward-looking statements, which are only accurate as of today, May 17, 2021.

[Anthony Angelini:]

Thanks, John and thank you all for joining the call. We continue to work to make progress on many fronts and believe as we move through 2021, we will see those benefits. As our business has many services that we provide to deliver and maintain IT infrastructure, we continue to look to evolve those services to many of the changes within the IT infrastructure market. At point in time, we'll see fluctuations in revenue and profits on a quarterly basis. These are related to timing of product releases, potential supply, chain constraints, changing corporate strategies, and a number of other variables. We do believe in our capabilities and are working diligently to further position them to grow consistently. Our first quarter was lower due primarily to the ongoing fluctuations within the Reseller aspect of our business. As we previously discussed, we look at this Reseller business as both incremental and opportunistic. Our core business is performing at consistent levels, albeit at lower growth levels than we have believed we would see. We believe many of these levels will increase as we move through the back half of the year as timings of deployment projects and timing of product deliveries improve. As far as diversifying our business further, we continue to look for service and customer extensions that can help us grow at a faster clip. As things begin to loosen up and COVID protocols lightened, we believe we will be able to reduce cycle time and increase the activity and most importantly reduce the close times. The ability to engage with customers outside of just video and other communication methods are important to our model. We believe as we move through the balance of the year, we will be able to ramp up our results and end the year with comparable results to last year and hold some optimistic goals to do better than that. Finally, we made some changes to our Board recently, Dan Phelps has resigned after over eight years on the board. Jerry Gallagher, who has been with the company for decades, did not seek reelection and will leave the Board at our annual general meeting next month. We have added Dick Metzler effective last month and he is up for election at our AGM. I'd like to thank Dan and Jerry for their service to the company, their support and guidance has been extremely helpful. I look forward to working with Dick and gaining much from his perspectives and experience. With that, we'll open the call to questions.

[Operator:]

[Anthony Angelini:]

All right. Thank you, Darrell. Well, we appreciate those that have participated in this call and continue to support the company. And we will next discuss our call at the end of our second quarter and when we report our results. Thank you.

[Operator:]

And thank you, ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.