Darryll Dewan: Okay, a couple of things. One is we are – we’re excited about opening up conversations with what I call the channel. You know, there’s a variety of folks out there that are scrambling trying to do innovation work for their customers, their channel partners, and they don’t do it as well as we do, point blank. We can facilitate doing that integration work for rack integration on a customer site. We haven’t done that before. Well, recently. That’s a broad market opportunity for us.
Maj Soueidan: Okay.
Darryll Dewan: And I think what we can do is leverage our experience. It’s not an easy thing to do because when you think about the way all the equipment and componentry comes to our facility in Round Rock, it’s – it seems kind of easy, but it’s complex. You’ve got cables and racks coming and servers and technology and storage. And if you get into the security space where we’re in now in cyber, you have cyber sensors. And putting that all together and doing it in a way that is with quality and speed and very cost effectively is what we do well. And we’re going to take what we’ve learned in doing that on site. We’ve experienced on site that people who don’t know what we know are challenged. It’s complicated and it takes oftentimes longer than a customer wants.
So, we’re going to continue to focus on taking the expertise we have, leveraging it here in Round Rock in our facility, but where we take it on site is to leverage what we know from our experience here. So, the data center moves business is exciting. We’re now getting a lot more attention. We’re bidding on many more opportunities than we did a month ago. And I’m excited about that business catching on. The procurement business that John referred to is continuing. We’re excited about that. And I would say that overall as a business, we have lines of business that give us multiple routes to market that we can leverage in the marketplace, namely the rack integration business, the modular data center deployment and sustaining business, the procurement business, our configuration and services business, and the new data center move business.
You know, we don’t want to bite off more than we can chew, but this is very, very exciting for us. We’re digging into, you know, a little bit broader segment of the marketplace. So, in order for us, where we’re heading is as the demand for AI increases, so does our potential growth. And I believe, and I think you know that from all indications, the AI demand is here for a while. And we’re looking forward to fulfilling what we can.
Maj Soueidan: Okay. And I have one more question, but I’ll stop hogging the time over here and come back after some more questions.
Darryll Dewan: Okay, cool. Good to talk.
Operator: Our next question comes from the line of Sean Marconi [ph]. Could you please state your company name and go ahead, please?
Unidentified Analyst: Yeah, I’m a private investor. Hi, Darryll. Nice to meet you.
Darryll Dewan: You too, Sean. How you doing, bud?
Unidentified Analyst: Good. Really impressive year-over-year numbers. Hey, Darryll, I’m really interested to understand how you came across the opportunity of becoming the CEO at TSS?
Darryll Dewan: Candidly, thank you for the question. I was introduced to Peter Woodward, who’s our chairman, before the opportunity arise and came up and I was, we were talking about a board seat. And at that point in time, I was unable to do it because of the restrictions on the current employer or the former employer. And just, I call it serendipitously, we reconnected after I made a decision to move from my former employer onward and we focused in on the board seat and it turned into an opportunity to be an operating role as a CEO. And, I think maybe to answer your question, I am ecstatic about what we’re doing. I think, a lot of the things that we’ve done in the last year plus to reset our foundation, to prepare for growth, get our quote unquote factory ready to grow capacity.
And that’s largely on the back of Todd Marrott, who’s our Senior VP of Operations. He’s a very experienced operating guy. And we’ve revamped the company. We’ve had to rebuild the team. We’ve implemented new programs and focusing on our people and execution and all the things that you want to do is like, is it building a team and providing leadership and support? And I think, so far so good. We’re never satisfied. I’m one of those guys that’s paranoid. I’m driving my high beams on all the time. We’re looking for, the wild animals at night. You’re going to drive and jump out in front of your car and you avoid them. So, take that same concept of what we do here, keep your high beams on and look downstream. I’m pleased that we’ve got good friends in the business that have been very successful that are offering their help.
And I’m all ears to, do what we can to grow this company and become more relevant in the market. And I think we’re poised in a good spot. The integration of what we do, especially in the AI world and complex technologies is our strength. And the team here is ready and capable of growing significantly. So, that’s, how it all came about.
Unidentified Analyst: Great, Darryll. Yeah, I just found it really intriguing, on LinkedIn. You’re with Dell for just under a decade. And, that’s a long time to be with a company. And you were the vice president of global sales and field marketing. And I just find that role to be really interesting that TSS is a small, high growing company. And, I just find this intriguing.
Darryll Dewan: Well, Sean. Yeah, thanks. It is. I’m, in many, many levels, although we’ve never talked before, maybe we’ll get a chat to catch up on some stuff. But I’m a very blessed individual. I’m very grateful about all the things that have come across my way. And I’ve had an opportunity to lead a great team and to grow a business in this role. And, candidly, I walk around. You ever had one of those roles where you say, boy, if I was running this place, this is what I would do?
Unidentified Analyst: Absolutely.
Darryll Dewan: Here we are.
Unidentified Analyst: That’s awesome. Well, I’m going to jump back into the queue. And I look forward to speaking with you soon, Darryll.
Darryll Dewan: All right, man. Thanks for the call and your comments.
Unidentified Analyst: Thank you.
Operator: As a reminder, the floor is now open for your questions. [Operator Instructions]. Okay. It does appear we do have a question. If you could please state your name and your company name, and please go ahead, please.
Maj Soueidan: Hi, this is Maj Soueidan from GeoInvesting. Hey, Darryll. One last question, I’ll let you go. On your maintenance part of this, your service part of this, which is recurring to some degree, I guess. Can you give us some kind of perspective into what that looks like over the next, few years and where you want it to be and want it to be a significant part of the business? Any new kind of areas you want to focus on to maybe accelerate that revenue? Are there opportunities there to do that?
Darryll Dewan: Yeah, that’s a good question, Maj. Because this is your last question, I’m not going to take any more questions from you.
Maj Soueidan: All right.
Darryll Dewan: Our maintenance business is a result of the sustaining contracts we put together over the last number of years with a handful of customers for the modular world, MDC world. Some of those customers and some of the technology is getting long and toothed. And those customers, us, ourselves, and our OEM partner are in conversations to either refresh the technology or to take it offline, meaning it’ll be decommissioned. And our job, my job and the team’s job is to do quality work and be creative in how long we can extend those agreements and also to backfill them with new agreements. So, I think there’s, we know to the container what the renewal dates are, what the technology is, how long it is, how long it’s been deployed, and we’re working with our partner to go do the things that you would do to either upgrade or decommission.
We’re not sitting here fat, dumb, and happy going, oh, it’s going to continue without a lot of work. The best thing we can do is make sure we provide the kind of support and service we provide to those customers and also backfill them with net new customers that can spread out new revenue, recurring revenue over the next three to five years. That’s our game plan.
Maj Soueidan: All right. Thanks, Darryll.
Darryll Dewan: Hi, Maj. It’s good talking to you, bud. Thanks for your questions.
Operator: There are no further questions at this time. I would now like to turn the call over to Darryll Dewan for closing remarks.
Darryll Dewan: Yeah. Thank you, everybody, for joining. Thank you for your support. I do appreciate the calls that I get from many of you offering suggestions and help and asking questions that can clarify some of the things we talked about here. The industry we’re in right now, like I said earlier, we’re at the intersection of the computing technology change and the growing demand for AI. We’re really excited about what we see coming down the pike in terms of technology and how we can help on the integration side. 2023 was a great year. As an ex-athlete, that’s great. What are you doing for me now? So our focus has shifted to 2024 and beyond. We know that we’ve got an execution focus and a challenge ahead of us. We’re investing in operating efficiencies to go meet that challenge to scale and to provide new services.
While we’re here and where we’re heading is the demand, as the demand for AI increases, so does our potential for growth. We’ve spent a lot of time making sure that we’re good with our existing OEM customer. As I mentioned earlier, we want to do more with that customer, doing everything we can to do more. And we’re looking for new ways to find routes to market that expand beyond what we’ve got with our existing customer. So with that, I would say again, thank you. We’re pleased with what happened last year. We’ve got a lot of work to do to grow on top of that this year, which we are planning to do. If anybody has any other questions, feel free to reach out to me. Otherwise, I think we’re good for today. I appreciate everybody’s attention.
Operator: This concludes today’s call. You may now disconnect.
