Unidentified Analyst: Great. Nice results, guys.
John Dillon: All right. Thank you.
Operator: [Operator Instructions] Our next question comes from Jeff Martin with Roth Capital Partners, LLC. Please go ahead.
Jeff Martin: Thanks. Good evening, guys. John wanted to get a sense on the $3 million expense reduction effort. Will there be offsetting growth initiatives next year that you’ll be investing in? Just thinking about it from a modeling point of view.
John Dillon: I wouldn’t say that we’re going to go into any meaningful adjacent verticals, although I think that’s a possibility in the future. Right now, I’m making sure that we’re ship shaped and that we can sail through the hazards and the seas ahead. We’re not cutting back on initiatives to develop and expand the business, but we want to make sure that everything that we’ve got working now is working well, sort of like running on an engine that has all the cylinders firing and nice, smooth camshafts, so everything is efficient. And then from there, I think, that’s a springboard into other initiatives from a growth standpoint. And I will make one other comment, Jeff, is that I think the TAM for FST is enormous.
I think it’s underpenetrated at this point. There are competitors out there, but we believe that it’s very substantial. And right now, we don’t have a headroom problem in any sort of fashion that I’m concerned about. So sky is the limit there, and we just need to demonstrate that we can go there, we can win and we can expand our participation in that opportunity.
Jeff Martin: Yes, great. And then in terms of the top 1,000 organizations you’ve identified, how are you parsing those out? How do you assign them to different parts of the sales organization? And do you have structured teams for that? Just curious kind of maybe a little more of a look under the hood in terms of the sales and marketing engine that you’ve taken the lead generation focus with and kind of reconfigured?
John Dillon: So, really diving in and looking at what’s in the TAM, the total addressable market, and then what product we have and then where should we sell it and without any guidance, we’ll take a call from anybody we will sell them something. We have customers that have one terminal, we have customers that have 1,000 terminals and the question is if we have a long sales cycle and we have a product that offers benefits for larger organizations it would not be fully appreciated at the low end of the market in terms of the amount of spend, and the amount of required features and capabilities of the technology, it’s sort of, we might be considered overkill or let’s just say, there are other products that are maybe cheaper that do less, but is sufficient for the opportunity for a single mom-and-pop operation or something like that.
So, what I did was I had the team saying, well, let’s look at what’s the serviceable part of the TAM. Where should we go and where should we sell? And I said, why don’t we do an exercise and look at the different sub-verticals within FST, and that was like convenience, foodservice management, restaurants, grocery stores and convenience stores. And we said, let’s focus on – let’s take a look and see how many people, how many organizations out there if we won the business, could we sell them 50 units? Let’s just draw a line there and see how big the TAM is. And it turns out that if you look at the number of opportunities or the number of units that you could sell, if you won 100% of everybody over 50 units versus everybody else, it turns out that, that’s about two thirds of the market opportunity.
