Chuck Piluso: I think there’s – if we were to look at things on a per month basis, I believe we’ll start seeing changes if it was December, but for the most part, I think that it will be the first you know, first, second and third quarter. I think it will take us two to three quarters to get to where we really want to be on it and having everything matched out. Chuck Paolillo just took over, all the service delivery just you know, a month or so ago and working through that with the staff. So I would say it will take some time you know on that. When you’re talking about sales funnel, sales organization, we’re going to be adding to the organization that’s an increased expense. But we want to ensure that we’re not burning cash, we want to be able to grow from, you know, a profitable baseline on it.
But in adding – individuals that are going to focus on expanding our channel partner program, that will get expensive for a little while. But what ends up happening is to these managed service providers that become channel partners, which today is a primary way that CloudFirst sells. They have the customer base. So if their client is looking for cloud, where in their given those proposals, and on top of that we’re handling the leads, in most cases directly, sometimes we pass them out to the channel partners. But we need to increase from the 50 active channel partners we have today, we need to double that. And we’re going to be hiring to be able to do that. So on the – sales funnel, it continues to grow, some fall off. And when we say fall off, it just means they’re just not ready at that point, we have – we’ll consider a definition for a qualified prospect.
And there’s, all sorts of ratings within sales force that Hal Schwartz is the President of CloudFirst has put in place. And that’s actually being rolled out across both. It’s at Nexus already, but its needs to now roll out to Flagship and Flagship folks are, you know, anxious to have that all combined as well. So we can really take a close look for forecasting purposes. In the future, we hope to give some guidance. And as we start nailing this down a little bit more with sales force, and pulling that together, I think we may be able to do that. So sales force will grow, they’ll be focused on managed service providers, channel partners are timeframe, basically, I would say two to three quarters to really see that that change. So I’m talking about improved in EBITDA margins is one thing, but I believe we’ll start seeing this gross profit margin start to improve possibly in two quarters.
Unidentified Analyst: Well, thank you, that gives me a lot of good context. I appreciate the insight and all the transformative growth opportunity and strategy sort of makes sense. That’s my question. Thanks so much.
Chuck Piluso: Thanks Ryan.
Operator: Your next question is a follow up question coming from Matt Galinko.
Matthew Galinko: Hi, thanks. Hello, again. With respect to the changes you talked about today, are we going to see any one time cash or non-cash in the fourth quarter or sometime in the early part of 2023?
Chuck Piluso: Are you referring to cash because we’re – to raise capital or you’re talking about, let’s say, a large equipment sale, which you’re referring to?
Matthew Galinko: Oh I’m talking about the realignment of Flagship strategy, management and the organizational structure are there any costs related to that?
Chuck Piluso: Not that we’ve identified at this point, we have not identified any situations that would cost us cash today.
Matthew Galinko: Okay, great. And then anything you could share about the end markets that you’re seeing, changes or increased decreased traction with, where are you seeing activity?