Welcome to the TSS Third Quarter 2019 Earnings Call. My name is Adrianne, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note this conference is being recorded. I will now turn the call over to John Penver. John, you may begin.

Thank you, Adrianne. Good afternoon, everyone and thank you for joining us on TSS conference call to discuss our third quarter 2019 financial results. I'm John Penver, the Chief Financial Officer for TSS and joining me today on this call is Anthony Angelini, the President and the Chief Executive Officer of TSS. As we begin the call, I would like to remind everyone to take note of the cautionary language regarding forward-looking statements contained in the press release that 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, November 14, 2019. TSS expressly disclaims any obligations to update, amend, supplement or otherwise review any information or forward-looking statements made on this conference call or the replay to reflect events or circumstances that may arise after the date indicated, except as otherwise required by applicable law. For a list of the risks and uncertainties, which may affect future performance, please refer to the company's periodic filings with the Securities and Exchange Commission. In addition, we will be referring to non-GAAP financial measures. A reconciliation of the differences between these measures with the most directly comparable financial measures calculated in accordance with GAAP is also included in today's press release. I will begin the call with a review of our third quarter results and then turn the call over to Anthony for his comments on the business and the changes we see coming. Now earlier today, we released a press release announcing our financial results for the third quarter of 2019, and a copy of that release is available on our website at www.tssiusa.com. Our third quarter results were very similar to our overall results in…

Right. Thank you, John. While the third quarter looked a lot like he second quarter results, the numbers really don’t tell you about the transformations we are taking within the business to expand our service offerings to help us grow our range of services and diversify our customer base. We have experienced a number of delays to deployment projects from our channel partner and in its end customers over the last several quarters that was primarily around the modular business. This impacts both of our operating segments as it delayed the integration of the product and the subsequent deployment activities. Despite these events that were mostly beyond our control, because of the work we have done over the last couple of years to control our overhead and fixed costs we have been able to lower the breakeven point for the company and therefore we are pleased that we were able to still achieve positive adjusted EBITDA for the 14th straight quarter despite lower than anticipated revenue levels. As John indicated, we recorded the first revenue from our reseller activities in September. The initial project started later than we anticipated due to a delay of some components. We are confident that this will drive substantial growth in revenue in our fourth quarter. As I quoted in our press release, we expect our fourth quarter revenue to be higher than the first three quarters combined as our reseller program ramped up. In addition, we expect the adjusted EBITDA to nearly double the first three quarters in 2019 combined. I indicated on our last call that the majority of our services are provided as value add on predominantly consigned material. We handle over $1 billion of hardware product a year, that is almost all conscientious. Our reseller activities will involve that, but some…

Thank you. [Operator Instructions] And our first question comes from Ian Castle. Your line is open.

Hi, thank you. I have a couple of questions. The first one pertains to the reseller program. I was just curious kind of how that reseller program came about, yes, just curious about that?

Sure. Well, we've been working a number of different groups within our primary OEMs and what we've been able to do is, provide value added services in doing integration and deployments, et cetera, and now what we're doing with them is aggregating multiple partners into an overall solution that gets sold to an end-user. So that step in that process now has us procuring both hardware, software, and professional services aggregating that together and then putting that in an overall solution and selling that to an ultimate end-user.

Okay, and does the reseller program, has that pulled you into additional verticals with that customer or I'm just curious how that ties into the overall strategy?

Yes, so there's a number of benefits that comes out of this. So first off, from before our core services we attach our core service offering to each of those deals and in addition we now have relationships and establishing relationships every day with multiple other OEM partners, both in the hardware, software and professional services. And so we have opportunity with that group to develop because now we've got a master agreement with them we've got the ability to go and grow other opportunities with them that are third party based.

Okay and the last question I have is, so when you mentioned in your opening remarks, you hired a VP of Business Development, I wonder if you can give us a little bit more color into his role and what areas he will be addressing?

Sure, so as we've embarked on this process we obviously want to have a lot of focus on how do we maximize these other relationships that we're growing into, so there's really kind of three tenets that Matt [indiscernible] the individual we hired, that Matt's going to focus on. One is, as we develop these third party relationships through this OEM program, he is going to drive the additional revenue opportunities with those groups. In addition, we're still looking at other third-party OEMs, so he'll be focusing on that, and then as we look at potential M&A relationships to expand our service offering or diversify our customer base, he is going to be in that space. So those are kind of those three tenets. Karen [ph] is focused on continuing to develop the Dell opportunities and the growth in opportunities we have there. It is just that we saw so much in front of us, it was a great opportunity, luckily we were able to bring Matt on board and I feel like we have really strengthened our team and we've got a good opportunity to really exploit all those tenets.

Okay, excellent. Thank you.

All right, thank you, Ian.

[Operator Instructions] And we have no further questions. I will turn the call back over to Anthony Angelini for final comments.

So I really appreciate everybody joining this call. We've got a good attendance on the call that we can see, so that's good to see and I appreciate any question and really look forward to what we're doing in the fourth quarter and into 2020. So it is going to be an exciting time at TSS. So well, thank you very much and we will talk to you again in 2020.

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