Apologies all. There were some technical difficulties with our initial webcast. We will begin the call now. Good morning and welcome to the Creative Realities Third Quarter 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. After the company’s remarks, there will be a question-and-answer session. [Operator Instructions] Alternatively, questions can be submitted during the call via e-mail to IR at cri.com. This call will be recorded and a copy will be available on our website at cri.com following completion of the call. The call today, you'll be hearing from myself, Will Logan, Chief Financial Officer, and I'll be joined by Rick Mills, Chief Executive Officer. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. The words anticipates, beliefs, expects, intends, plans, estimates, projects, should, may, propose and similar expressions or the negative versions of such words or expression as it relate to us or our management are intended to identify forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in our quarterly financial statements on Form 10-Q and in our Annual Report on Form 10-K filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in our public filings. It is now my pleasure to introduce Rick Mills, CEO of Creative Realities.

Thanks, Will. Sorry everybody but the technical difficulty. First and foremost, good morning to everyone. Thanks for joining the call. We exited the third quarter with a tremendous amount of optimism and momentum. As I've discussed on our past two earnings calls. We've moved the impact of the COVID-19 pandemic on the digital signage industry and CRI would be significant. Several of our key verticals have been severely impacted by the pandemic. Specifically, our movie theater, and stadium arena verticals have been hit hard. However, the good news is activity has resumed in our other verticals such as retail, C-store, and quick serve restaurants. And while these verticals have not bounced back to 100% pre-pandemic levels, there is activity and engagement. I believe we have seen the worst of the pandemic and not only survived we are beginning to thrive. Our Thermal Mirror product has become an entire suite of products with a new name, Safe Space Solutions. It's one platform with many use cases. We adopted the best practices globally. That's Q&A screening along with temperature taking and we implemented them in our solution. We added mobile capability for Q&A screen. We add screen of employee badges for identification. And finally, we added in a touch enabled tablet for Q&A screening, which has become a must have product in the nursing home and retirement community environment. I do want to take a moment to thank our software partner in this endeavor, Ron Lovak and his entire team in reality, they've been an outstanding partner. As we previously announced, three of the major distributors of technology products as Ingram micro, Tech Data and Synnex. They picked up the entire Safe Space solution product line, including our SaaS subscription offerings to customers. And now we have added a fourth distributor in…

Thanks, Rick. I'll now summarize our financial results for the three months ended September 30, 2020 compared to 2019. Regarding our third quarter 2020 results, we note that MD&A section of our quarterly report on Form 10-Q provides unaudited 2020 and 2019 quarterly financial information derived from the company's annual and quarterly financial statements. We've also provided a reconciliation of GAAP net income to non-GAAP quarterly EBITDA and adjusted EBITDA for the current and previous four quarters therein. Starting with revenue, gross profit and gross margin. Our revenues were $5.1 million for the three months ended September 30 2020, a decrease of $1.6 million or 24% as compared to the same period in 2019. Hardware revenues were $2.8 million for the three months ended September 30, 2020, an increase of $0.8 million or 40% as compared to the same quarter in the prior year, driven by the introduction of the Thermal Mirror product. Gross margin on hardware revenue was 34% the third quarter as compared to 27 during the same period in 2019 due to the shift and mix of hardware revenues from displays to the Thermal Mirror product which generates higher gross profit. Services and other revenues were $2.3 million for the three months ended September 30 2020, a decrease of $2.4 million or 52%, compared to the same period in 2019. This was driven primarily by reduction insulation services of $1.5 million year-over-year, combined with the general reduction other software managed service revenue due to customer closures in response to the COVID-19 pandemic. Gross Margin on services and other revenues 65.4% in the quarter ended September 30, 2020 as compared to 58.9 in the same period in 2019, driven by the less labor intensive services and offerings related to the Thermal Mirror product. Managed services revenue, which includes…

Thanks, Will. Appreciate the update. As you can tell folks on the call, I am very bullish on our business and expect to return to a growth mode throughout 2021. We believe that we have weathered the worst of the COVID-19 pandemic with respect to its impact on our business, and are optimistic about our opportunities with our core digital signage business and the immediate opportunities for the Safe Space Solutions product line. CRI has remained open, flexible and transparent business partner to our vendors and customers. And we believe this flexibility and responsiveness during this crisis will contribute to our success as businesses reopen in the marketplace stabilizes. We believe the long-term opportunity for both the digital signage industry and CRI remain bright. And we look forward to supporting our customers in their pursuit to reopen as we move forward together. We stated on our previous call this year and we continue to believe that this pandemic will be and is an accelerator for digital change that was already underway. As we pick up the pace and enter the new year, we believe it will just simply move much faster. We are firmly committed to our long-term vision of being one of the go to enterprise providers of these digital solutions in the U.S. We continue to expect industry consolidation in the digital signage space. We have seen and heard from several of our peer companies, and understand the challenges that many of our smaller competitors have and are facing in these difficult times. And last, as I always do, I want to compliment the team that I work with every day at CRI. As I stated previously, the last few quarters have been some of the most challenging of my career. However, I have witnessed the effort our team has put in to pivot our business in order to alter our market offerings to stay relevant for new and existing customers. I and CRI are grateful for your efforts and your commitment. Thanks. And I'm going turn it back over to Will, we will now open the phone lines in order to respond to any questions.

Yes. [Operator Instructions] Here we have a couple of questions that have come in with the email. We'll start there. Brian Kinsler from Alliance Global has asked you mentioned the pickup and expected installations for the digital signage business. Can you comment on what industries are the driver of this demand?

Great question Brian. Two industries specifically we're seeing rapid expansion in the C-store space. And then also entertainment venues while not fully engaged today in terms of signing POs, they're in advanced planning stages of large deployments to re-engage their customers as they flow back into entertainment spaces. So those are really the two that we're seeing primary drivers in. And then the third one, I would probably articulate QSR space, a lot of emphasis on Drive Thru, and a lot of emphasis on in-store tax in the QSR. space.

Is there any context you can provide to the backlog of quarters that you discussed that we'll be working from and any dollar value that you would share around opportunities?

Well, we tend to look at each installation each. We call it a screen/ player combination. And as it relates to our revenue, each screen/player combination equates to about 3,000 in revenue as a onetime installation, and then of course, there's the recurring fast and it leaves behind. Today, so with each, each screen player being in 3,000, today, we have a backlog or are in discussions, significant advanced discussions for over 15,000 new screens to be deployed in 2021. So, I think folks can do the math.

Great. And then are you seeing are we seeing any pricing differences in signage products today and moving forward versus what we have typically seen pre pandemic?

Not really have not seen much of any price degradation. We are seeing screens come on board with more advanced features. But the actual price points tend to stay the same. We transitioned from 46 inch to 49 inch glass over a three year period, but the price effectively stayed about the same. Now we're seeing a transition from 49 inch glass to 50 inch glass price is going to be about the same.

Great, those were the questions via the email inbox. We will now look to the phones to see if there anyone that has raised their hand. It appears that there are no other questions at this time have responded to all questions. Let me conclude today's call by thanking all of our shareholders, clients, partners and employees for their continuing efforts, commitment and support during these unprecedented times. This now concludes the Creative Realities third quarter 2020 earnings call.