Altigen Communs Inc

Good afternoon, ladies and gentlemen, and welcome to the Altogen Communications fourth quarter and fiscal year 2021 results. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Carolyn David. Ma'am, the floor is yours.

Thank you, Operator. Hello, everyone, and welcome to Altogen Communications earnings call for the fourth quarter and full year fiscal 2021. Joining me on the call today is Jerry Fleming, President and Chief Executive Officer, Mark Allen, our Chief Technology Officer, and I'm Carolyn David, Vice President of Finance. Earlier this afternoon, we issued an earnings release reporting financial results for the period ended September 30th, 2021. This release can be found on our IR website at www.altogen.com. We have also arranged a tape replay of this call, which may be accessed by phone. This replay will be available approximately one hour after the call's completion and remain in effect for 90 days. The call can also be accessed from the investor relations section of our website. As a reminder, Today's call may contain forward looking information regarding future events and future financial performance of the company. We wish to caution you that such statements are just predictions and actual results may differ materially due to certain risks and uncertainties that pertain to our business. We refer you to the financial disclosures filed periodically by the company with the OTCQB over the counter market Specifically, the company's audited annual report for the fiscal year ended September 30, 2020, as well as the safe harbor statement in the press release the company issued today. These documents contain important risk factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. Autogen assumes no obligation to revise any forward-looking information contained in today's call. During this call, we will also be referring to certain non-GAAP financial measures. These non-GAAP measures are not superior to or a replacement for the comparable GAAP measures, but we believe these measures help investors gain a more complete understanding of results. A reconciliation of GAAP to non-GAAP measures and additional disclosures regarding these measures are included in today's press release. Now, it's my pleasure to turn the call over to Jerry Fleming, President and CEO of Altogen, for opening remarks. Jerry?

Thank you, Carolyn, and good afternoon, everyone. Thanks for joining us for today's call. So, I'm going to begin the call today with an overview of our results, focusing on the numbers for the full fiscal year. Carolyn will then present a more detailed review of both our quarterly and annual results. After Carolyn's discussion, I've asked Mark Allen, Altogen's CTO, to address the current state of various new solutions, along with their associated delivery timelines. I'll then come back with closing remarks prior to opening up the call for a Q&A session. So for our fiscal 2021 year, we reported revenue of $11 million compared to $11.8 million for fiscal 2020 year. We reported a gap net loss of $500,000 in FY21 compared to gap net income of $1.4 million in FY2020. So I'm just going to cut right to the chase here. These results are simply not acceptable. In the past several years, I think we did a fairly good job of saying what we're going to do and then doing what we said. In FY21, we did not do a good job of this. This is going to change. I want to reiterate our commitment and expectation that we will double our revenues in the next three years. And by the way, that clock started ticking on October 1st. But that being said, these are the results we delivered, and I do need to spend a few minutes discussing the reasons for our performance. In order to provide more color, I'll review our results by revenue category. So product revenue for the year. was down by approximately 300,000 versus last year, while software assurance declined by about 400K compared to the same period last year. As we discussed, these revenue streams are related to sales and support of on-premises systems, which we are no longer promoting for obvious reasons. Professional services revenue is approximately 100K lower than last year as a direct result of fewer new on-premises systems to deploy. So all of the year-over-year revenue declines are directly related to our legacy on-premises business. And in fact, those were expected as they are an inevitable byproduct of our cloud transformation strategy. Our cloud services revenue was essentially the same as we posted last fiscal year. For those of you who are class half full people, flat cloud revenues can be viewed as a positive as it demonstrates that we are maintaining our legacy base of cloud customers. However, we all know that's not good enough. The core issue is evident to everyone. Our cloud business needs to grow. Shortly, Mark and I will be discussing how we're going to do that and when we expect to start seeing contributions from our new cloud solutions. But I can assure you we're not standing still. But before we get to those details, I'm going to hand the call back to Carolyn so she can review the financials in more detail. Carolyn?

Thank you, Jerry. Total revenue for the quarter was $2.8 million, down 2% sequentially and down 6% on a year-over-year basis. As we explained last quarter, our legacy products revenue continued to decline as we have moved away from perpetual software licenses and associated software assurance revenue in favor of a cloud-first strategy. We expect this trend to continue until we start to ramp up revenue from our new products in fiscal 2022. Gross margin decreased to 1.4% compared to 77.2% last year. The decrease in gross margin was, again, primarily driven by higher amortization costs for capitalized software and to a lesser extent, a shift in our product mix. GAAP net loss was $1.2 million or $0.05 per diluted share compared to breakeven last year. GAAP net loss and diluted loss per share were negatively impacted by a non-cash tax-related expense of $1.3 million for the quarter due to expired net operating losses. On a non-GAAP basis, net income was $400,000 or $0.01 per diluted share compared to roughly $900,000 or $0.03 per diluted share in the same quarter. We continue to generate cash this quarter as we ended the year with $6.8 million in cash and cash equivalents. That's up $300,000 compared to the preceding quarter. This concludes the financial summary. I'm now going to turn the call over to Mark, who will provide an update on our product roadmap. Mark?

Thanks, Carolyn. Hi, everyone. Thank you for participating in our call today. Before I get started, I just wanted to level set. Our goal is to offer a complete suite of best-in-class integrated communication solutions leveraging Microsoft technologies. This strategy enables Altogen to uniquely address the three major market opportunities comprising enterprise communications, unified communications as a service, contact centers as a service, and customer experience as a service, since all are needed in some form or fashion in virtually every organization. In today's call, I'm going to briefly review our solutions and targeted release dates for each of these three markets previously mentioned. But first, I want to discuss our overall strategy for how we're going to achieve this. With so many new solutions we have in the product pipe or release pipeline, our strategy is to release solutions in three phases. Phase one is best-in-class baseline functionality. Our objective here is to introduce the first versions of our solutions at superior price and performance points that will drive new incremental streams for Altogen. Products we are releasing or have released are currently in phase one. This phase establishes a presence in the market and engages our partners and customers in the process. Phase two is extended functionality. This includes both enhanced functionality as well as add-on fee-based applications. Examples of this include integrations with all popular CRM platforms, real-time performance dashboards, and new desktop and mobile apps. This phase builds on phase one to further extend our reach into the enterprise. Phase three is conversational AI analytics and machine learning. After that, So after all of those, we'll be introducing new AI capabilities such as chat and text bots, conversation keyword detection, sentiment analysis. All of these solutions will enable Altogen to deliver additional value for our customers while adding to our cloud revenue and position Altogen as an innovator in the communications sector. So now for a product roadmap overview first. product is our service delivery cloud. This is the first interaction and first experience our customers and partners will have with Altogen for ordering, provisioning, and supporting Altogen products. Up to now, we have had individual portals or software supporting those aspects of our business. We have consolidated those services into one portal, moved the architecture to the cloud, and prepared for automatic provisioning and integration with Microsoft Teams Store. All of these services are being integrated seamlessly into our billing platform. And all of this will reduce the time and effort to order and install Altogen's products and solutions. Second, MaxCloud. To keep ourselves relevant and viable in our PBX market, we are introducing a geo-redundant and scalable UCaaS solution or platform as an evolution to our legacy PBX offering. The new solution is also multi-tenant reducing our overhead costs and improving speed to deployment. This new offering is also in compliance with Fiserv's banking security standards and will also be hosted inside their secure data centers. We have enhanced this with our new Core View UC or Core View Unified Communications desktop application for omnichannel communication. Third, we have exclusive distribution rights in the US and the UK with a call center as a service offering front stage. We have currently integrated this into our legacy PBX offering and are managing the integration between it and our new Max Cloud offering and Microsoft Teams. Through integration with our other products, we will be adding AI capabilities to front stage as part of the phase three deliveries. Fourth on the list is Core Interact. After a customer preview period, we released Core Interact version one in late June. This first release was to directly improve upon Microsoft's routing and queuing capabilities, historical recording, and give a customer a better way to configure these settings through our visual workflow builder. We have deployed 38 Core Interact instances with 60% of those being resale partners doing a proof of concept on planning to take it into market. Due to the tremendous feedback from our initial release of Core Interact, we are now working on a numerous integrated fee-based add-on applications to enhance Microsoft Teams via Core Interact, and a short list of those are included here. CoreView 360 is the first one for Teams. This adds CRM integration and other customer management capabilities and expanded details about incoming communication for Core Interact to a Teams user. Second, Workgroup Insights for Teams, which is a real-time performance dashboard for each Core Interact workgroup to monitor live data and promote action on SLA-based performance. And lastly, Core Attendant, Our most anticipated addition to the Core Interact and Teams, we have added a company operator console for Teams. This represents a large market who felt this was a gap in the Microsoft Team offering. We anticipated being much further along in our phase one release plans. Admittedly, we did not meet many of our projected delivery dates. I want to take a moment to update everyone as to what happened and the specific corrective actions we've taken. I'll first comment on the Microsoft APIs, which Jerry has discussed in prior calls. As you are probably aware, the critical graph APIs required to integrate with Teams came out much later than had been announced, but those are now generally available. That being said, for companies like Altogen, which are developing natively integrated Teams application, there are still some limitations with the Teams APIs, or lack thereof. The corrective action we've taken was to invest additional time and resources to re-architect around these issues. We believe all of these issues are now resolved. Second, as we've rolled out the initial release of Core Interact, we found that customers really liked the base product, but many of those customers require one or more of the advanced features and applications which were not part of the initial release prior to implementing Core Interact in their production environments. which has contributed to the delays and ability to recognize the revenue. All of these issues have been identified and are actively in development, are going through quality assurance, and will be sequentially released over the course of the next 30 to 60 days. Finally, in retrospect, we underestimated the effort to get so many solutions released in a relatively narrow window of time. This combined with the additional time and effort required to architect around some of the team's API issues simply put too much load on our development organization more or less all at once. As a result, we missed our targeted release dates. To address this situation, we implemented a comprehensive corrective action plan. First, we realigned our development organization into smaller teams, each laser focused on a specific solution set. We also assigned a number of our developers who previously worked on Altogen's legacy PBX solution to these new solutions. And in the past six months, we've also doubled the number of developers in the poll. Finally, starting immediately, we have engaged in Microsoft recommended consulting organization to review our application architecture and processes. Based on all of these changes, we're confident that we have the appropriate resources and processes in place to consistently deliver on our schedule release. We expect the phase one applications to be released either later this month through early next quarter. Phase two and phase three solutions I briefly mentioned are slated for calendar Q2 and Q3, respectively. And with that, I'll turn it back to Jerry.

Thanks, Mark. Jerry? Yep. Thank you.

Nice review. Now, I'm going to go off script here for a moment, and I'm going to go out on a limb here and say, based on that detailed review, we'll probably get an unprecedented number of downloads of the transcript, right, to follow all those releases. But suffice to say, yeah, we, I think, and I'm still off script here, we just had more things we had to come out with than we originally anticipated. But let me get back to the task at hand. Based on Mark's discussion, I do want to comment on the number of fundamental changes that we've made in our development organization, and I want to take a few minutes to talk about the impact on expenses. Over the past several months, in the next few months, many of our legacy PBX developers have or will be assigned to work on our new solutions. Those legacy PBX developers whose skills are no longer a fit with our strategic direction have been and are being transitioned out of the company. On the other hand, the significantly lower cost basis for top quality developers in Nepal has enabled us to not only more than double our development headcount there, as Mark mentioned, it also enables us to continue to expand that organization, which we're projecting by another 25% or so in this fiscal year. Now for all of that, We are projecting a net savings, not expense, but net savings of just over $500,000 in FY22 as a result of these changes and moving to a lower cost structure. At this time, I'm going to address a few topics related to our overall strategy and business progress. First, I do want to point out that we are continuing to see an excellent reception for our solutions. most of which, as Mark discussed, are in alpha or beta testing by customers and or our reseller partners. Probably the best supporting evidence is that we are now actively engaged with more than 80 partners who plan to sell the solutions Mark covered with over 100 opportunities in the sales pipeline. Now, these opportunities range from small to mid-sized businesses to large enterprises in organizations in both the US and the UK. I think that also highlights the fact that our strategy is spot on. To briefly recap, our solutions are uniquely designed to address the three significant segments of the business communications market, as Mark pointed out, UCaaS, CCaaS, and customer experience as a service. Within these segments, we're not trying to compete with everybody. We focus on Microsoft customers in general, and more specifically, those customers looking to deploy Microsoft Teams. In its simplest form, we position ourselves as the one-stop shop for customers interested in a complete Microsoft-based communications solutions. Now, whether customers want a natively integrated Teams solution, which many do, and perhaps most do, or they want a solution which leverages their investments in other Microsoft infrastructure technologies, Altogen is able to uniquely deliver on that promise. It's also important to note that a key component of our strategy is deliver solutions, not just products. We've been a product company. And perhaps with the exception of very large enterprises, most companies don't have a bunch of IT people sitting around waiting to deploy new software solutions. Instead, they rely on the vendor to deploy, integrate, train, and support those new solutions. In the Microsoft customer world, this requires expertise in Azure, Microsoft 365, Teams, SharePoint, Power BI, Bot Framework, and other Microsoft application and infrastructure technologies. As a product company, we just haven't built those skill sets. This is why we've been actively engaged with M&A firm to identify Microsoft partners who do have these skill sets. And we announced this, boy, I don't know, nine months or so ago that we've engaged with M&A firm. And after reviewing many such companies with this firm and personally meeting with more than a dozen candidates, we're now down to the short list. To the confidentiality restrictions, I can't reveal much more information than the fact that these candidates meet hand in glove the requirements I discussed. But I can say that we are actively involved in deal terms and business integration discussions. And at the point we're able to reach a definitive agreement, we will make a public disclosure. But to our close, I do have a couple more comments. Most notably, we haven't done a great job of communicating our progress, right, with our shareholder and investor community. As we roll out our new products, certainly securing strategic wins, you know, will change that. But during the process, it's a little bit more difficult, right, while we're still just doing pilots and trying to queue up opportunities. So in the meantime, we've also started a monthly investor newsletter, which we issue twice monthly, in which we feature a new Altogen product each month, which is typically hosted by Mark, and we call it Tech Talk. And we follow that that same month with a spotlight on a particular customer or reseller, generally covering that same product topic. to give you the customer's or reseller's perspective. If you haven't subscribed yet, I certainly encourage you to visit the Altagen Investor Relations webpage to sign up for that so you can start getting regular news on our progress. In addition, we are planning a virtual investor conference for the end of January. During this event, we are planning to have a few industry experts speak on topics germane to our business. We'll also plan to have guest speakers from current customers and resellers to give you their perspective on our solutions. You'll also hear from members of the Altogen executive management team who will provide details regarding our business plans and opportunities, and this will also include live demonstrations of all of our new solutions so you can put those in perspective. Please stay tuned for the announcement on that event. Finally, while we continue to believe our solutions and strategy are spot on, It's not lost on us, but our execution is not where it needs to be. The fact that we haven't done that rests squarely on my shoulders. It is my job to make sure we're hitting on all cylinders, which I fully expect we are going to do moving forward. So at this time, I'm going to turn the call back to the operator for Q&A. Operator?

Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star 1 on your phone. Please hold while we poll for questions.

Your first question is coming from Teo Ismail.

Your line is live.

Hi, Jerry. Thanks for all the color for the quarter and the year. Just was hoping to get a little bit more color on the pipeline that you mentioned earlier. What deal sizes are you guys seeing with the customers you guys are talking to? And maybe just a little bit of color around that would be helpful.

Yeah. Hey, Tela. Thanks for that. Here's what I want to avoid, honestly, is getting into a forecast review session on our earnings calls. But I'll do my best here. And You know, we do have a multitude of new products coming out, right? So when you say, what's the pipeline look like? It varies by product. Okay. So we have opportunities with our own base to migrate to the new UCAS platform, opportunities to Fiserv to migrate to the platform, opportunities to migrate to the contact center, front stage contact center. On that platform, opportunities to migrate to front stage with teams, Core Interact for teams, and the Operator Council for teams. So that becomes a really broad question and I'm happy to try to answer that. So maybe I can, that's why I gave more of a general answer on overall opportunities that we have in the pipeline that are essentially related to our team's solutions. I've been, I've been asked, I've been slapped a little bit by Fiserv to say, okay, you guys can't give a forecast on our customers, right? So I have to dial that back a little bit from where I've been on previous calls, but I'm certainly happy to report that What I will report going forward is on the PBX side, right, the new UCaaS platform with FrontStage. I'll combine that with Altogen's own performance, so I'm not calling out a particular reseller. And, yeah, we have a significant pipeline of current customers on-premise and on the cloud to migrate to that platform, as well as we've secured I think it's three or four contracts now for front stage sitting on that platform right as soon as these customers migrate and we haven't even launched it yet in a pilot phase. On the corner act side, most of the resellers I mentioned, they're coming on with us because of corner act. And so those 80 plus resellers and 100 plus opportunities are generally corner act oriented. Now they can be, as I mentioned, those can be some small SMB customers. from a customer perspective, and they can be some pretty large enterprises. I think the largest enterprise is something around 50,000 employees that we're talking to. From a reseller perspective, they can be anywhere from a couple million dollars in revenue, a couple hundred million in revenue, or a couple hundred billion in revenue, right? So it's really difficult to give you, let's say, an average, because I'm assuming that the guy that's, you know, the hundred billion is going to probably do more than the guy that's two million, right? But These are all just launching right now. So I'd like to give you more color. I don't know quite how we can do that in advance of us booking business and being able to report on results.

No, that's super helpful. I appreciate that. And just a last question from me. You mentioned the net savings of $500,000 for FY22. So is it fair to say that we should expect a pickup in profitability sequentially in the next coming quarters?

Well, it's certainly safe to say that we expect to be much more profitable in FY22 than FY21. Got it. Thanks a lot.

Yep, you bet, Tala. Thank you.

Your next question is coming from Neil Cataldi from Blueprint Capital Management.

Your line is live. Neil, your line is live. Your next question is coming from Vipu Patel.

Your line is live.

Hey, hi, hey, Jerry. Hi, this is Vipul. I have a couple of questions. My first question is related to R&D cost. And it is 35% of our sales, which is around $3.8 million compared to 22% of the sales. And I assume it is because of a lot of development around core intellect, front stage, and a lot of enhancement for Fiserv. Can you please provide what will be R&D cost next year and maybe next two to three years? That will be the first question.

Sure. Thank you for that detailed question. I may have to defer to Carolyn. Let me give you a high-level answer, then I'll defer to Carolyn. So I think the – actually, the lion's share of the R&D expense that we experienced in FY21 was related to our legacy MaxCS product. And as I mentioned during my segments, a lot of those folks are being transitioned either to work on the new solutions or if their skill sets don't match what we're doing going forward because of these Microsoft technologies, then they'll be transitioned out of the company and we expect to see the savings of $500K in that engineering department. Right now, that's the best forecast I can give you for, if you look at our engineering expense, our R&D expense for FY21 versus FY22. We don't have one beyond that. But what I can tell you is that our R&D expense as a percentage of revenue will not be as high going forward as we've seen in the past. But Caroline, would you like to add any color to that?

That's a very actual, I agree with that. Thank you. We are going to continue to invest in R&D efforts, but at the same time, we're very budget conscious, so we will continue to keep our eye on the expense line as we manage revenue here.

Is it safe to say that it will be less than 25% of sales?

As you comment, Carolyn, we don't have a percentage right now that we're targeting. other than outside of this year, right? Things change, right? It's a long time. But it's safe to say this can be lower than it has been.

Okay, thank you. And then there is one time cost of deferred tax asset, which is like, you know, tax expense of $1.2 million. Now I was looking at the balance sheet. There is still deferred tax asset of $6.5 million. Do we expect to have repeated tax expense in the future? like similar to what we have done in this year.

Well, that wasn't really a tax expense, right? And Carolyn, can you please comment on that? Because, you know, I'm not a financial person, everybody. I don't like that particular way of accounting, but, you know, we are required by the SEC, pardon me, at least by the GAAP accounting rules to do that. But Carolyn can certainly provide more color on that. And it's, you know, the real relevance to the business operations.

Sure. Thank you, Jerry. As long as we, that is a non-cash tax-related adjustment, and as long as we continue to generate profits, I think we will secure that deferred tax asset. So going forward, looking out 12 months, I don't anticipate that we will book a large adjustment, but Again, that's speaking as of this point in time. So, you know, based on a forecast and projection, we don't anticipate, you know, a large adjustment next year.

Thank you. And my last question is related to gross margin. So consistently we have seen gross margin near 75, 77 percentage. So what do we expect in next one or two years? considering that we are in 71% as of now, or maybe in the last quarter, and 72% this year. Thank you.

We don't anticipate a huge shift. However, it's too soon to make a projection. We do plan on keeping a close eye on the margin deviation over the next two quarters, but we don't anticipate a huge swing.

Maybe I could add to that, Carolyn, if it's okay with you, that a lot of the higher margin business guys was because our on-premise software sales, right? Our on-premise software sales and our software assurance are virtually 100% gross margin. But we get no growth out of that business. So as we go forward, yeah, we're going to be closer to 70%, not 75%, because we do have additional cost to deliver those services. But on the upside... the revenue numbers are a lot higher, and the gross dollars are a lot higher, right? So that's a trade-off that is going to occur, and we're perfectly happy making to generate the additional gross profit.

Okay. Thank you, Jerry and Caroline, and all the best.

Thank you.

Thank you.

Thank you. Your next question is coming from Neil Catalde from Blueprint Capital Management. Your line is live.

Hey, Jerry. Hopefully you can hear me now. Yep. Well, first off, thanks for the transparency tonight. I think you guys have done a great job of really sharing some information on what has taken so long and where this is going to potentially go in the next year or two. I think the big question investors want to know is when there will be this first inflection point, revenue will start to accelerate. That being said, you mentioned you're doubling the revenue in the next three years earlier on this call. But in the investor conference in September, your investor deck showed a 30% compounded annual growth rate over the next three years. So my first question, I just want to confirm this 30% growth rate. And, you know, I'm coming at this, you know, having built a model myself and just trying to think about, you know, is it still two, three years away or is it actually going to be you know, in the next 12 months.

Well, okay. You know, I'm from the school of horseshoes when it comes to math. And in my, sorry, Neil, in my opinion, doubling revenues in three years is the equivalent of 30%, you know, incremental growth, you know, over three years, right? So many of those are the same, that is the same commitment. And that will come from both organic expectation, both organic and inorganic growth. Now, are we going to achieve it Now, if I were to put the number out there and said, I'll do it in three years, but hey, on the side, I'll tell you, hey, Neil, I think I'd do it in two. Well, I can't tell you that right now. So what I can tell you, I'm highly confident we're going to achieve that number at that three-year mark.

Got it. Okay, that's great. And so regarding the acquisitions you mentioned, can you elaborate at all on the sizes? And I think importantly... will the deals be accreted?

Sure. Those are fair questions. Yeah, there are a little bit of range here. I would call these companies that we're looking at in the mid-single-digit millions of dollars in revenue. Employees, it depends on the company. 20 to 30, I think, is probably a good number. And absolutely, there are no company that would even make our you know, make our short list that wasn't profitable and would not be accretive, you know, obviously from a revenue perspective, it'll be immediately accretive, but also from a net income and EPS perspective. So those are all high on the list. And of course, right, that those are the financial metrics, the business metrics are, they need to meet the requirements and adding those skill sets, delivering those services that I had, you know, called out in my, my session, that our customers are looking for that we can deliver to customers that not only say, hey, great, we can sell more, but it becomes additive because we can win more deals by delivering those services. And we have stickier customers that grow. So it becomes, and our objective is a one plus one equals three with that type of organization. And those are the companies we think we've identified.

Yes, that's great. Just a couple more, if I may. I think the first question asks you to maybe elaborate a little bit more on the opportunities you reference. It sounds like some of these opportunities could be in excess of, I don't know, 15, 20,000 seats. And I'm just curious, you know, having been an investor here for a few years, we've never seen you really be able to sell into larger enterprises like that. What has changed? Is it just the value prop of the technology? And do you think that as you scale over the next few years, your products are really going to start to find a home with larger enterprises than what you've been accustomed to selling to previously?

Okay, that's fair. Let me just take that one head on. Now, you have not seen Altogen recognize a lot of revenue. I'll clarify that. You've not seen Altogen recognize a lot of revenue in the larger enterprise accounts. we do have people, including myself, that are well-experienced, and we have had successes in very large enterprise accounts. So, you know, big companies, right, that have deployed our solutions. We just didn't have the proper solutions to maintain those customers. With CornerAct and with FrontStage, we do. But, you know, I'll be honest with you. I'm happy to have, you know, a very large enterprise global customer. That's really not our target. Our target really is that mid-sized enterprise, five, 10,000 employees, right? That, um, they don't have 10,000 or let's say in some cases, 5,000 people, 50,000 employees, 5,000 people in our IT department. They've got more people running around to go support stuff, right? They're going to go build their own stuff or, you know, choose and integrate their own stuff. We're looking at more of that mid market and we can well support those people. And with our operations in the UK, with our development in Nepal, with our capabilities for support and operations in Taiwan, we can actually now support. Now that we've gone to the cloud, we can actually provide the 24-7 fellow sun support that these companies are looking for. That's one thing we've not been able to do in the past. And I'll just say that's probably our biggest downfall. We would sell something to a UK or Europe organization, and they'd call up and say, you guys are asleep. I've got a problem. You guys in California are sleeping. We just didn't have the resources to properly staff. That's changed. And so that combined with being in Azure, this makes it so much more supportable in our direction now. And we're a target enterprise, right? So, yeah, we'll sell to a small customer, but our solutions are targeting the enterprise. We know what they want. We know how to support them. And we will see the enterprises adopting new solutions because what we're delivering in terms of CRM integration and and the, let's say, contact center capabilities that aren't at the $200 price points of a 5.9 or in contact, very good products, but they can't extend outside the contact center because they're too high price for the enterprise. And we're targeting just under that in these large enterprise organizations of hundreds, if not thousands of people sitting underneath that contact center that need the capabilities, but they can't deploy them today. So that one, I guess, I'm just going to have to tell you, Neil, trust me, and we are going to penetrate that market. This is

no one's done it right now this is the wide open greenfield opportunity where we're so excited about corner act nobody has figured it out and we think we have got it that's great well um listen i mean the market cap today 40 million dollars i think uh you've got almost seven million dollars in cash on the balance sheet no debt um i think the core business you know alone it justifies this current market cap, and you're not really getting credit for any of these growth opportunities. So I appreciate the transparency tonight. I look forward to seeing how you guys can execute over the next year, and I'll be in touch.

We appreciate your support, and put it this way, we are going to execute. You can count on that. Thanks, Jared. Thank you.

Thank you. There are no further questions in the queue. I will now hand the conference back to Jeremiah Fleming for closing remarks. Please go ahead.

All right. Well, thank you, Operator. And, hey, thanks, everybody, for joining our call. I think Neil was correct. We tried to be more transparent on this call than on prior calls, and we'll try to continue that going forward. And we're certainly looking forward to providing more business metrics. I know I couldn't answer some of the questions as much as I'd like. I really want to be able to tell you guys These are the deployments. This is the backlog. And here's the average revenue per user as we roll these things out. And I can assure you we will do that as soon as we start these rollouts. I think we're real close to these deployments. We've been working on them a long time. Yep. Admittedly, we haven't hit those dates, but based on the changes Mark discussed, we're right on the cusp. So I think we're actually expecting very big things ahead. So Appreciate your support and look forward to updating everyone on the next call. Thank you, guys. Have a great Merry Christmas, happy holidays, and look forward to talking to you in January.