Welcome to the TSS First Quarter 2020 Earnings Call. My name is Darrell, 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 that, this conference is being recorded. I will now turn the call over to John Penver. John, you may begin.

Thank you, Darrell. Good afternoon, everyone, and thank you for joining us on TSS' conference call to discuss our first quarter 2020 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 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 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 18, 2020. 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’ll begin the call with a review of our first quarter 2020 results and then turn the call over to Anthony for his comments on the business and the changes we see coming. So earlier today, we released a press release containing -- announcing our financial results for the first quarter of 2020, and a copy of that release is available on our website at www.tssiusa.com. Our first quarter was mixed performance for TSS, compared to the first…

Okay. Thank you, John. As John explained, our first quarter included the increased cost traditional in our first quarter including our audit and other costs for our filings. In addition to the increase in staff related costs as we ramp up for additional reseller and other third-party business and furthermore because of the COVID-19 impacted field deployments at the end of the quarter, as well as in the supply chain of our systems integration business. So those – those – so we've basically had three areas that impacted the quarter which were the normal incremental costs as well as some increased staff costs as John mentioned, and then the impact of COVID-19. Our second quarter however, will benefit from these delays and looks to be strong despite our additional costs to manage social distancing in our production facility, along with additional costs for PPE to maintain a safe facility for our employees. As we look at the back half of the year, we're hesitant to provide guidance until we better understand the effects of the pandemic and reopening of the country, and the net effect on the IT industry in regards to that. However, we feel confident we can maintain profitability in the back half of the year, as we get better visibility later in June. I believe John's covered the rest and will now open the call for questions.

[Operator Instruction] And we have a question from Yaron Naymark from First Main Capital [ph]. Go ahead.

Hey, guys. Thanks for all the color, thanks for all the color. I guess so you – I think you said that we should expect profitability for Q2, as well as the back half, just curious, what the underlying assumption on that is for the reseller business, as well as the core legacy business? Thanks.

Sure. I'll take a shot at it and John you can chime in. The reseller business is, as we explained previously, it's new and it's kind of choppy. So, we don't have a lot of visibility in advance to particular programs, generally they're 30 to 45 days out that we know we're going to be looped into a reseller program. So we've taken a cut at things we know, and some of which we do know through the end of the year, but there's also, we expect to have additional ones into the program. So we're being a little conservative on the back half of the year, and the second quarter we've got good visibility to everything that's going to happen between now and the end of June. And our core business will – some of the negative effects that we saw at the end of the first quarter in regards to deployments and supply chain issues basically been resolved. So we'll pick up some of that shortfall from the first quarter in the second quarter. Beyond that, we're just cautious as kind of the rest of the world is, as to what things are going to look like, as we go through the summer months and through the summer months and into I’m sorry somebody was trying to get in my door. As we go through the summer months and into the fourth quarter. We're monitoring the situation, I think we'll have a better picture as we get towards the end of June, as to how July and August will look, and then hopefully, as we get to September, October, November, countries opened up, things pick back up, et cetera. But we're all in that situation of trying to estimate what -- what that's going to look like. And John, I don’t know if you want to--?

No, I think you had it -- I mean, I think the comment I'd add to that is that short-term visibility is fairly solid. As Anthony said, we now have certain reseller programs that are due to take place in the second quarter that will help the results. And I think just with overall uncertainty around the pandemic, understanding the longer term demand picture is a little unclear. So, in the short-term, we've been busy with work for public clients. But over the long-term, just how long does it going to take for things to return to something resembling normal. So, our visibility is a little more impaired the further out you get.

Got it. Thanks.

[Operator Instructions] And we have no more questions at this time.

Okay. Well, thank you all very much for attending today. We'll keep things posted. We are still open for business and pushing everything through that we can. So, everybody stay safe and hopefully, hopefully, the COVID situation winds itself down as we exit through the summer.

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