Jim Kempton: I think all we can say is that we expect any of the revenue associated with the Verizon contract would be ending by the end of this month, so by the end of November. So like we would see absolutely no revenue in December associated with that contract.
Josh Nichols: Okay. So I guess if you were doing like $4 million a quarter. Right? You’d get, presumably like two thirds of that recognized if you were going through November this year is at a ballpark approximately, right?
Jim Kempton: Yes, that’s an approximation.
Josh Nichols: Great. Thanks, guys. I appreciate it. Feel better, Bill.
Bill Smith: Thank you.
Operator: The next question will come from Jim McIlree with Dawson James. Please go ahead.
James McIlree: Yes, thanks. Jim, can you just repeat what you said? The quarterly decline in revenue you’re expecting in Q4?
Jim Kempton: It would be 18% to 23%.
James McIlree: Great. Thank you. And so the two big components. Well, the big component is Verizon, but then you have the ViewSpot. Also, is CommSuite relatively flat?
Jim Kempton: We have modeled a slight decline in CommSuite.
James McIlree: Okay. And I think Josh was asking this also, so it sounds like November at Verizon is kind of trailing down to zero or do we get a cliff at the end of the month with Verizon?
Bill Smith: You get a cliff.
Jim McIlree: Get a cliff, great. Okay. Thank you. And can you talk about any plans for further cost cutting in order to bring margins back up to what you’d like to get them to or is it going to be a function of scaling with AT&T and eventually T-Mobile that gets your margins to improve back to prior levels?
Bill Smith: It’s clearly a function of scaling at AT&T, and we would be very happy to get some added help from T-Mobile as well. So I think there’s reason to be hopeful for that, the whole subject that we talked about, the importance of Family Safety in the world that we live in now is so profound. And I don’t think there’s any of us that are not impacted by some of the horrific events that we see around us on a daily, weekly, monthly basis. And for carriers who really want to attract the family subs, there’s not a better way than giving them some peace of mind by distributing a really top notch Family Safety application to get that mission done. I believe that all carriers going forward as part of their corporate responsibility will be looking to really invest and to grow this space. We all need a little help right now, and I think that’s how I really view this.
Jim Kempton: And Jim, if I could add one more piece to your question, one of the things that we are able to look at, once Verizon goes away, some of this will actually fall off, not in the fourth quarter, but in the first quarter. But taking some of those ring costs, those legacy ring costs that we’ve had related to Verizon and be able to eliminate those. So that’s the other thing. We will be able to take down cost of sales associated with some of those legacy ring costs that the third party cost.
James McIlree: And any chance you can put a range on what those costs might be?
Jim Kempton: No, I feel like we don’t give guidance beyond one quarter ahead.
James McIlree: Is it fair to think of those ring costs ending shortly after November?
Jim Kempton: Yes, they would fall off. Yes, shortly after that. But again, some may go into the first quarter, but end quickly in the first quarter.
James McIlree: Got it. And my last one is, Bill, with this SafePath global initiative, or product that you’re developing, is that taking incremental R&D dollars to do that, or are you redeploying R&D dollars from other projects, or can you help understand the costs involved with developing and marketing that?
Bill Smith: Go ahead, Jim, answer it.
Jim Kempton: It’s really a redeployment Jim. So, because now, as Bill had said in his prepared remarks, now that we are beyond the AT&T migration, we are able to redeploy those resources to things such as SafePath global.
