Mastech Digital, Inc

Greetings, and welcome to the MazTek Digital, Inc. Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jenna Ford Lacey, Manager of Legal Affairs for MazTech Digital, Inc. Thank you. You may begin.

Thank you, Operator, and welcome to MazTech Digital's third quarter 2022 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.maztechdigital.com. With me on the call today are Vivek Gupta, MazTech Digital's Chief Executive Officer, and Jack Cronin, our Chief Financial Officer. I would like to remind everyone that statements made during this call that are not historical facts are forward-looking statements. These forward-looking statements include our financial growth and liquidity projections, as well as statements about our plans, strategies, intentions, and beliefs concerning the business, cash flows, costs, and the markets in which we operate. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements, including those listed in the company's 2021 Annual Report on Form 10-K, Files of the Securities and Exchange Commission, and available on its website at www.sec.gov. Additionally, management has elected to provide certain non-GAAP financial measures to supplement our financial results presented on a GAAP basis. Specifically, we will provide non-GAAP net income and non-GAAP diluted earnings per share data, which we believe will provide greater transparency with respect to the key metrics used by management in operating the business. Reconciliations of these non-GAAP financial measures to their comparable GAAP measures are included in our earnings announcement, which can be obtained from our website at www.maztechdigital.com. As a reminder, we will not be providing guidance during this call, nor will we provide guidance in any subsequent one-on-one meetings or calls. I will now turn the call over to Vivek for his comments on several recent noteworthy events.

Thank you, Jenna. Good morning, everyone. First, let me address the press release that was issued last night related to a change in leadership in our data and analytics services business segment. Ganesan Venkateshwaran resigned yesterday from the company as the CEO of the data and analytics services segment. Our board accepted his resignation with immediate effect. I will serve as the chief executive of the DNA services business until Ganesan's successor is in place. Secondly, as mentioned in this morning's third quarter earnings release, we experienced a cybersecurity breach involving a single employee email account, and which indirectly impacted two MassTech InfoTrellis clients. Our IT team identified the point of entry, decommissioned the affected laptop and email address, and changed logins and passcodes for this email account. To be doubly sure and as good business practice, we also engaged external advisors, to validate our findings and remedial action steps. As part of this engagement, these experts are assisting us with forensic analysis to determine whether any personally identifiable information also known as PII was compromised as a result of this breach. For any PII data determined to have been compromised, these advisors will be assisting us in determining the appropriate compliance steps required with respect to such PII data. We have accrued a pre-tax loss reserve of $450,000 in the third quarter 2022 related to this event, which reserve includes the costs of engaging our external advisors, as well as an estimate of other potential losses relating to the breach. Finally, in third quarter 2022, we made a decision to close our underperforming operations in Singapore and Ireland. and to rationalize our operating cost structure in the UK. Accordingly, we reserved $120,000 of severance expense related to these actions. Let me now turn the call over to Jack for a detailed review of our third quarter 2022 financial results.