Welcome to the TSS Second Quarter 2021 Earnings Call. My name is Darrell and I'll be your operator for today's call. At this time, all participants are in 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. You may begin.

Thank you, Darryl. Good afternoon, everyone. Thank you for joining us on TSS' conference call to discuss our second quarter 2021 financial results. I'm John Penver, the Chief Financial Officer for TSS. And joining me today on the 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, August 16, 2021. TSS expressly disclaims any obligation to update, amend, supplement or otherwise review any information or forward-looking statements made on this conference call or 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 difference between those measures with the most directly comparable financial measures calculated in accordance with GAAP is included in today's press release. So I'll begin the call with a review of our second quarter 2021 results. And then I will turn the call over to Anthony for his comments on the business and changes we see coming. Earlier today, we released a press release announcing our financial results for the second quarter of 2021. A copy of that release will be made available on our website at www.tssiusa.com. Similar to our first quarter, our second quarter of 2021 was a little slower than 2020.…

All right. Thank you, John. As I mentioned on our last call, we expected the first half of the year to be lower on the revenue side as we work through supply chain delays and the lingering effect of COVID on deployments. I also said we expect and are seeing significant turnaround in Q3 and especially Q4. Therefore, we expect to end the year with revenue in the mid-to-high $20 million range and adjusted EBITDA at $1 million and probably a bit higher. This represents a second half of at least $1.6 million of adjusted EBITDA. As John mentioned, there are a number of moving parts in our various revenue streams. The reseller business is still difficult to predict, and we are working on getting more consistent volume. In fact, we see a large increase in reseller activity for the back half of the year. The deals are generally fairly large, and we are getting better visibility. Our facilities business is still feeling some effect from both supply chain challenges and deployment schedules. We are seeing improvement toward the end of the year and rolling into 2022. Our integration business definitely has felt the impact of supply chain challenges as one component delays the whole project. We are working diligently on timing of deliveries of parts to better predict revenue recognition, and it does seem the supply chain disruptions are easing. There are a number of trends that we believe will begin to improve our revenue opportunities, primarily 5G and the related business with the telecom industry. We have also made significant progress regarding the cost structure within our integration business. And through the first half of this year, we have made an $800,000 reduction in our operating expenses year-over-year. These reductions have improved our margins and resulted in improved…

[Operator Instructions] And we do have a question from [Maj Swidan]. Go ahead. Go ahead with your question.

Just a quick question. I mean maybe I missed it because I joined in a little late. You ended here the conversation talking about some of your -- looking at some strategic alternatives within the business, I guess, partnerships and acquisitions, maybe. Could you kind of expand upon what you're looking at maybe potentially for the Company and what it would mean for the Company and what areas you're looking at doing those things in?

Yes. In general, we're taking our services block that we have right now, which is very stable and obviously, subject to some of the recent events, but in general, growing at a good clip. We're looking at now how do we extend those services in some other areas that will allow us to kind of, I'll call it, go to where the puck is going as opposed to where the puck has been. And so we are pretty focused on looking at some opportunities and have some stuff in the pipeline that looks promising that we can extend our service capability with some good synergies that tied to our core base.

And do you think that would make -- some of these moves make a big dent in your diversification of customers?

Sorry. Yes, yes. Obviously, that's part of the mix and the whole thing is how do we diversify our customer base a little bit more and again, move the whole thing forward. Yes. So the answer is yes. But we're trying not to do. We have a good capability in what we're doing today. So we're trying to extend that as the market and services evolve. So we're looking forward as opposed to, let's call it, not a roll up, more of a how do we extend our services to the next place and diversify the customer base. Yes. By the way, all with the idea of how do we have kind of developed more of a reseller base or I mean a recurring base of revenue that will -- so we can sell once and reap many, if you will.

[Operator Instructions] And we don't have any more questions at this time. I'll turn the call back to Anthony Angelini.

Okay. Thank you, Darryl. Well, we've been through an interesting 18 months. We feel like this -- we're going to have a blockbuster second half of the year, and that will roll us into 2022 pretty favorably. We feel like timing has affected things, both from COVID and supply chain issues, but we're feeling very good about how we look over the next basically a year. So with that, we'll look forward to talking to you all in November.

And thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect. Speakers, please stand by for your post conference.