Welcome to the TSS First Quarter 2022 Earnings Call. My name is Daryl and I will be your operator for today's call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the call over to John Penver. John, you may begin.

Thank you, Daryl. Good afternoon, everyone. My apologies for the late start. We had a few technical issues in getting the call moving but thank you for joining us on this call today to discuss our first quarter 2022 financial results. [Technical Difficulty]

[Operator Instructions] Please proceed.

All right. Thank you. My apologies, everybody. We've been experiencing some challenges with a change in system with our earnings call, so my apologies for the delay and listening to us. But thank you for joining us on the call today to discuss our first quarter 2022 financial results. I'm John Penver, the CFO for TSS. And joining me on the call today is Anthony Angelini, the President and Chief Executive of TSS. As I begin the call, I'd 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 this conference call. This call contains time-sensitive information as well as forward-looking statements which are only accurate as of today, May 16, 2022. TSS expressly disclaims any obligation to update, amend, supplement or otherwise review any information 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 measures. And a reconciliation of the differences between these measures with the most directly comparable financial measures are calculated in accordance with GAAP is included in today's press release. So, I'll begin the call with a review of our first quarter of 2022 results, then turn the call over to Anthony for some comments on the business and how we see 2022 shaping up. Earlier this afternoon, we released a press release announcing our financial results for the first quarter of 2022 and a copy of that release will be made available on our website at www.tssiusa.com. Overall, our revenues were very…

All right. Thank you, John. And echoing John's reply, we apologize for the delay. There were some issues with our provider that we had to work through. So I'll start my comments with -- despite some macro environment challenges, in particular, supply chain challenges, we were still able to achieve a small amount of positive adjusted EBITDA in Q1. As John mentioned, our first quarter has additional operating costs due to our audit fees and other professional fees. This has been consistent over the years. It is best to compare the first quarter year-over-year and we saw improved gross margin and improved bottom line results compared to 2021. As we see supply chain issues beginning to ease and delivery of materials becoming more predictable, we expect to see continued improvement quarter-over-quarter throughout the year. We have already seen good improvement in the second quarter. Our current expectations are to finish the year with revenue in the mid- to high $20 million range, margins in the mid- to high 20% range and adjusted EBITDA profit north of $2 million for the year with positive net income for the year as well. We are carefully navigating the current market conditions and continue to hold a large overall backlog of projects. As we look at growth opportunities, we continue to primarily focus on delivering our core business and its corresponding backlog in a very efficient manner. We do continue to look for both organic and potential M&A opportunities to diversify our customer base and expand our overall services. In the near term, we will continue to monitor the macro dynamics while focusing on maximizing profitability and cash flow. We believe as we move through the year, we will deliver increasing cash flow from operations that will further strengthen our balance sheet. We believe that our service capabilities and balance sheet are positioned both to weather any bumps in the road and give us opportunity for expansion. Demand for IT and data center infrastructure will continue to grow. The capabilities provided by the infrastructure we deliver through our services are important investments for many companies to help offset inflation challenges by increasing efficiency in operations. In general, we believe we are taking the right steps to maximize our resources and deliver positive cash flow in 2022. With that, we'll be happy to take your questions.

Okay. Thank you, Daryl. We, again, for the third time, we apologize for the delay in the call and if that impacted anyone. But we feel good about the year. We feel good about how we're navigating the marketplace. And we look forward to talking to you late summer and showing you the results we're starting to achieve. Thank you.

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