Gary Levine: Correct. Yeah. Exactly.
Unidentified Participant: Okay. And I asked this question each of the last two conference calls about buying stock. Did you buy back any stock last quarter?
Victor Dellovo: No, the company did not. I personally bought some stock again last quarter.
Unidentified Participant: I saw you bought it. It was down $5, it couldn’t have been better timing. And again, we had the same issue today with the stock down almost $3 and down more earlier. And with the roadway that you paint for us, it still seems like a good use of shareholders’ cash. Appreciate the increase in the dividend, but it seems like a good use of cash going forward. It seems like there’s quite the runway here. One final question. Any thoughts about changing the name of the company? I mean the company is definitely going towards cybersecurity, ARIA Cybersecurity?
Victor Dellovo: That’s why we have ARIA Cybersecurity under the umbrella of CSPi because they still have the other business, the TS business.
Unidentified Participant: Okay. Appreciate it. Thank you very much.
Victor Dellovo: Yeah.
Operator: Your next question for today is coming from Sergio Heiber with Heiber Research.
Sergio Heiber: Good morning, guys, and congratulations on the progress that you’re making. I’m wondering about — I understand that you can’t disclose the customer without the customer’s permission, but why can’t you disclose the amount of the contracts?
Victor Dellovo: Because we normally — we don’t give — we never have given exact amounts of contracts and what they are. We’ll disclose the next quarter when we actually recognize it.
Sergio Heiber: It’s difficult for investors to put a price on the stock without knowing how much the contracts are. And that’s why I ask. And you’re not giving any guidance. Are there plans to provide guidance in the future?
Victor Dellovo: Potentially, but not right now.
Sergio Heiber: Is the reason that you’re not giving out the amount of the contracts because of competition? Not to give away to the competition what the product sells for?
Victor Dellovo: That’s part of it, yes.
Sergio Heiber: Okay. And then I have a question from a reader from my Seeking Alpha article. And I figured I’ll pose it to you. I don’t know how to answer this question, and I don’t know if it’s a fair question. But the companies and the enterprises that you’re selling the AZT product are large and entities that have their own IT department. Why would they be customers of you instead of developing the product for their IP?
Victor Dellovo: They want to develop a security product through their own IT? Okay, that’s possible I guess. With enough money, time and expertise, anybody could potentially do it. But if he’s asking if they have their own IT department or if someone who doesn’t have their own security department, could we help manage that for them, the answer is yes. But whether you have your own IT department or not, you still need some type of product to do the inspection in the protection and the detection and everything else that goes along with that. But I’m a little confused on what he’s asking.
Sergio Heiber: Look, I couldn’t answer the question either. And it came from more than one person. Basically, I don’t think that the average person, including me, understands the complexity of security and there’s so many products out there, and we’re trying to figure out how do we know that there is nothing else like this product and how disruptive it is. How can we judge that? I’ve asked experts in the field and they can’t answer the question. And I think investors are trying to figure that out.
Victor Dellovo: I think I’ve mentioned on calls, it’s a crowded space. Everybody knows the big boys. The Palo Altos, you name it. Then there’s a second tier which I don’t know exactly the number, but a couple of years it was over 2,000 other security companies of all sizes. Of course, it’s a crowded space, how do you separate yourselves? That’s a challenge that we have to deal with every day. Winning this contract, that’s going to be our biggest selling tool. Because when you looked at the company we sold to, they tested everything. They have the resources. God knows it took us over 18 months to close this deal. They have the option and everybody out there security-wise was knocking on their door. They had the option to look at many, many products.
And for them to choose our product after the literally over year testing, that’s kind of how where we believe our product does fit a need. It’s not just from — of course, some of the people on the phone have heard this, we think our baby is beautiful, but it may not be. But having these customers test the product, look at it and it fills a need, especially with the later XP Windows, the older versions. These — all these other companies are really not supporting the old versions of Linux and Windows. Not only we can do the current ones, but we can go all the way back. And as — I suggest everybody who’s on the call, go back to the webinar that we did. It really breaks down the value of the product, why we’re different, and how we complement other existing products.
I think Jim LaBonty mentioned on the webinar that if you look at like a Clarity or a Crowd Striker, they have — they’re necessary, but there’s a void. And we can fill that void. Now you can use us exclusively if you want, that’s beautiful and we’ll take it, or we can complement the existing products that are out there to fill a gap. There’s some products that they’ll detect, but they won’t prevent. And that’s kind of where we step in and we do zero day attack on zero day. Not oh my god, I’ve got to go patch it, give me a week or two days or five days or six months to go patch it. Our biggest issue is we need to get the message out, and we’re doing everything we possibly can to talk to as many customers and to evangelize that message. Give us a chance to show our product, do a POC, beat it up and let us show you the performance of the product.
Sergio Heiber: Thank you for that. I think you guys are making great progress considering the product hasn’t been out a year yet. When will we start seeing revenue from AZT?
Victor Dellovo: Next quarter.
Sergio Heiber: And is that the pharmaceutical contract?
Victor Dellovo: Yeah. And we’re hoping that there’ll be other customers that will fall into place. But there’s like two more — like I told you, you’re going to hear a big bang from the pharmaceutical because the way we sold it to them is that onetime deal. And then all the other customers, we want to sell them as a monthly recurring revenue to build up that model.
Sergio Heiber: Excellent. And will there be upfront fees on the recurring revenue?
Victor Dellovo: Well, it just depends. If they want us to do the install, then we’re going to charge professional services for that. And then you’ll do a monthly fee and per endpoint, and that will include the maintenance in that monthly fee too, so they’ll get all the latest and greatest updates that we have.
Sergio Heiber: All right, guys. Thank you, Gary and Victor for continued success.
Gary Levine: Thank you.
Victor Dellovo: Have a great day. Thanks.
Operator: We have time for two more questioners. Your next question is coming from Paul Scolardi, a private investor.
Unidentified Participant: How are you doing, gentlemen? Awesome job on the quarter. Awesome job with the press releases. I want to start off by saying that.
Victor Dellovo: Thank you.
Unidentified Participant: Can you hear me?
Victor Dellovo: Yes, I can hear you perfectly.
Unidentified Participant: Yeah. I kind of feel bad that you have to deal with these rookie questions from shareholders because it’s common knowledge that smaller companies cannot release either the name of larger company deals or the amounts for strategic reasons. But I, as a shareholder, and most shareholders, appreciate that you’re still giving great full press releases once you get these deals to keep the Street informed. I say great job with the press releases. And also, if the prior caller would have listened to that awesome webinar with the ex-Pfizer executive, he said the differentiation of the AZT product out in the marketplace. That webinar was awesome information. I think first, some of the shareholders, you need to do a little more research before you waste the executive time with these questions.
Now for a few questions, and I’ll be brief because you guys did an awesome job. We’re seeing on a macro level in recent weeks, headlines coming out about China, Iran, Russia that they’re going to attack the infrastructure. We saw in recent months that water infrastructure in the United States was actually attacked. This seems to be brewing as an emerging scary theme, that one, doesn’t this place even more massive importance and imminence on the AZT product? And are those type of headlines, do you see them as being a, as obviously a selling point? And do you think they’re going to raise awareness for these companies to start seeking to protect their OT environment?
