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Executives

Jason Tienor - Chief Executive Officer

Gene Mushrush - Chief Financial Officer

Analysts

Mark Sullivan - Mount Vernon Associates

Collin Royster - American Capital Partners

Joe Pierce - Plymouth Rock Financial

Telkonet, Inc.(OTCQB:TKOI) Q1 2013 Earnings Conference Call May 15, 2013 4:30 PM ET

Operator

Good afternoon and welcome to Telkonet’s First Quarter 2013 Financial Results Conference Call and webcast. As a reminder, today’s conference is being recorded.

Before I turn the call over to Jason Tienor, Telkonet’s Chief Executive Officer, I will like to read the following statements. Certain statements included in this conference call my constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the company’s ability to obtain a new contract and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors could affect the company's financial results, can be found in the company's SEC financial filings including today’s 10-Q and reports Form 8-K filed within the Securities and Exchange Commission.

Telkonet is under no obligation to update terms discussed today to reflect subsequent development.

Now, I would like to turn the call over to Jason Tienor, Telkonet’s President and CEO to discuss the results. Thank you sir, you may begin.

Jason Tienor

Thank you very much operator. And thank you all for joining us today for Telkonet’s 2013 Q1 earnings call. Since we spoke at the short time ago on the 2012 earnings call, we will try to keep today’s call brief and wrap-up with answering any questions you might have.

We will begin today with Telkonet’s CFO, Gene Mushrush providing first quarter earnings summary. Gene?

Gene Mushrush

Thank you, Jason. Ladies and gentlemen good afternoon and thank you for joining us. Today I will be presenting our first quarter 2013 financial summary. For the quarter ended March 31, 2013, Telkonet’s reported revenues of $3.1 million an increase of 62% compared to $1.9 million for the quarter ended March 31, 2102.

We posted gross margins of $1.4 million compared to $1 million for the same period prior year. The gross margin percentage of 46% is below our historical averages as a result of installation costs and a decline in incurring revenues, which capture a greater margin percentage versus non-recurring revenues. However, management is confident that revenue decline is only short-term and won’t be recovered by year-end.

Operating expenses for the quarter ended March 31, 2013 were $1.8 million compared to $1.7 million for the quarter ended March 31, 2012. For the quarters ended March 31, 2013 and 2012, we reported operating losses of $395,000 and $697,000 respectively. We reported net losses of $412,000 and $729.000 at March 31 2013 and 2012 respectively. Both operating and net results improved 45% year-over-year. The current quarter’s net loss is attributable to sales and marketing overhead associated with top-line growth initiatives installation cost incurred on projects not completed during the quarter and smaller than anticipated recurring revenues. Telkonet had negative adjust with the EBITDA a non-GAAP measure of $329,000 and $589,000 for the quarters ended March 31, 2013 and 2012 respectively.

We reported $1.2 million in cash and equivalent at March 31, 2013 compared to $540,000 in the prior year and improvement of approximately 122%. In January 2013, $382,000 of operating cash was used as collateral to meet performance bound requirement related to a federally funded contract. Project installation began in March 2013, and monies will remain as restricted cash until project completion estimated to be in September of 2013.

Cash provided by operating activities during the first quarter was $471,000 compared to cash used in operations of $395,000 during the first quarter of 2012. This is a cash flow improvement of $870,000. Compared to prior year, we improved our current ratio a short-term liquidity measurement from 0.64 to 0.96 for the quarter ended March 31, 2013. We recorded a working capital deficit measured as current asset plus current liabilities of $165,000 at March 31, 2013 compared to a deficit of $1.4 million one year ago. And finally, our debt to equity ratio at March 31, 2013 a measurement of our financial leverage remain consistent at 0.58.

In closing, despite seasonal headwinds associated with our first quarter, we closed with greater than $3 million in revenue for the fourth consecutive quarter. As we entered the of fiscal year, we will complete a multi-site EcoSmart project benefiting the Department of Homeland Security and start a significant energy service companies sponsored secondary education project. An update to our 2012 earnings call last month, we are currently in negotiations with a commercial lender for a traditional line of credit.

As you recall, these funds will be utilized for short-term capital needs such as bonding requirements, the line would allow us to execute multiple projects concurrently without impeding operating cash.

Once again, thank you for your interest and to the shareholders specifically and thank you for your continued support. I will now turn the call back to Telkonet’s President and Chief Executive Officer Jason Tienor.

Jason Tienor

Thank you, Gene.

As I mentioned earlier, since we spoke a short time ago on the year end earnings call, I will be limiting my remarks to commenting on our most recent activities and forward focus and end with answering any questions, you might have.

As our last year has shown, we have been able to resolve many of the issues that have held the company’s back and fast and we have created a solid foundation on which to build moving forward. Due to this both of our divisions experienced tremendous growth during the first quarter of 2013 in many ways.

Beginning with EcoSmart, we thought the execution of a landmark strategic OEM partnership with the countries fastest growing package terminal conditioner or PTEC manufacturer which allows to introduce Telkonet’s energy management solutions to our target market much sooner in the sales cycle. We also executed our largest individual educational contract as Gene mentioned closing $540,000 contract with (inaudible) partner to install three buildings of a new higher learning institution under our comprehensive before this contract.

Primary to our core focus of beginning a world leader in energy management, we redoubled our effort to expand EcoCentral, our EcoCentral cloud based management platform from simply competing with other reporting tools to becoming a true resources as a virtual engineer for our customers. In doing so, we help contain costs for reducing the physical engineering needs within a property.

In addition, by enabling participation in an enhanced energy control capabilities like demand response, EcoCentral has become EcoSmart core differentiating factor. In continuing to expand our EcoSmart suite, we received the first delivery of our EcoGuard and EcoSwitch products. The EcoGuard is our energy management device controlling power to outlets, while the EcoSwitch is a energy efficient light switch controlling the flow of electricity to a rooms lighting.

To introduce the state-of-the-art component, we set-up a working demonstration room at a potential customer site, which allows us to exhibit the capabilities and functionalities of these products within a room’s environment. These demonstrations are setting the standard to what the next generation of connected and managed hospitality environment will look like.

With our recent strategic partnership agreements with Control (inaudible) systems, Islandaire and others. We continue to drive our product innovation deeper and expand our markets wider than ever before. There is a company that is becoming deft at recognizing opportunities within our marketplace. We also increased our investment in research and development, so that we are consistently delivering the newest and most cost effective energy management technology to our customers.

During the past quarter, we deliver expensive growth in our key performance indicator including more than 10,000 EcoSmart unit sold in greater than $67,000 per project closed on average revenue for Q1. In addition to the 52% year-over-year revenue growth we are finalizing greater than 18%, 200% and 700% market growth in hospitality education and military year-over-year respectively.

EthoStream, our high-speed internet access network in the nations largest such cap budget network continue to trend positively beginning with closing of a HISA upgrade deal with more than $0.5 million continuing the rapid growth of our network. In addition, EthoStream’s key performance indicators continue to improve including HISA network growth of approximately 10% year-over-year and network traffic growth of 16% year-over-year.

And lastly, we have seen more than $0.5 million quarterly segment growth for HISA year-over-year. As a company, we continue to strengthen both our operations and our competitive position within the market. In our strategic long-term planning initiatives, we have been able to negotiate the elderly retirement of our long-term note with dynamic ratings and extend the term of that note for additional two years.

In addition, to the expense of Q1 growth covered by Gene in his summary, several additional financial metrics continue to improve including ending Q1 with $1.2 million in cash on hand and $1.7 million in receivables. We continue to pay down our overall debt with some additional $300,000 or 5% retired during the quarter. And we saw the year-over-year revenue growth of $1.2 million or 62% in the Q1 EBITDA improvement of $250,000 or 44%. We continue to focus on the improvement of these key metrics and expect to see additional improvements throughout the year resulting in a record 2013.

In summary, the first quarter demonstrated the substantial growth prospect available for Telkonet this year. Our impressive revenue growth enabled Telkonet to invest more heavily in our future performance including our expanding our direct sales force, market penetration, investing heavily into marketing activities to facilitate ongoing pipeline growth increasing our R&D activities to strategically expand our platform and once again expanding our corporate assets and building the company infrastructure to accommodate this new growth.

In addition, we have increased our Investor Relations activity taking advantage of our 2012 performance in new investor interest within the company. While these costs, may have dragged on Telkonet’s Q1 profitability, we chose to do so strategically to facilitate increased top-line revenues and continue to increase shareholder value moving forward. As you can see, we are not content to grow incrementally and continue to invest in our success and evolve a strategic plan to accelerate our growth moving forward.

With that, I would like to hand it back to the conference operator and we will be happy to answer any questions, you might have. Operator?

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Thank you. Our first question comes from the line of Mark Sullivan with Mount Vernon Associates. Please proceed with your question.

Mark Sullivan - Mount Vernon Associates

Hi, Jason. How are you?

Jason Tienor

Great, Mark. How are you doing?

Mark Sullivan - Mount Vernon Associates

Good. Thanks. With this quarter anomaly, do you feel or is it something we can expect going forward?

Jason Tienor

Now, this is exactly what we would expect going forward. In fact, I think the history over the last four quarters that we have created has provided a little bit of insight into what the company’s operations and performance moving forward should look like.

Mark Sullivan - Mount Vernon Associates

I mean the 62% was the Q, year ago anomaly?

Jason Tienor

I think that’s more of an indication of what the Q a year ago was an anomaly and how light that quarter was. But, the change in the first quarter performance even though that we recognized, normally recognized seasonality, I think is a indicator of the business that we are seeing this year. So while we expect to see a continued increases quarter-over-quarter, I will say that 62% is going to be a bit of a stretch to attain every quarter.

Mark Sullivan - Mount Vernon Associates

Right. So, sequentially maybe 25%, 30% sequentially?

Jason Tienor

I think that’s a great goal for the company absolutely.

Mark Sullivan - Mount Vernon Associates

What kind of limitations are you experiencing right now, what do you feel? I mean, what are your hindrances?

Jason Tienor

Probably one of the biggest hindrances as Gene mentioned with regard to binding and picking up larger projects as we have – as for a number of constraints placed on the company that we typically didn’t have as we move through some of our growing pains of us. Obviously, placing a bit of our cash in escrow to acquire balance of these projects, places us in a bit more of a constrained position, have been able to execute on the number those at any given time places you in a fairly difficult constrained position. So, obviously, we are moving through those. We found alternatives measures and dealing with them. So we have been able to undertake a couple of different project same already about this year. So we are looking forward to not only being able to participate in those larger projects but obviously not have them impact our normal operations.

Mark Sullivan - Mount Vernon Associates

Do you think that looking more into strategic alliances would leverage the technology a little bit better in your favor as you move forward and going through this growth occur?

Jason Tienor

What type of strategic alliances, would you mean Mark?

Mark Sullivan - Mount Vernon Associates

Financial partnering to leverage your technology.

Jason Tienor

Financial partnering, I just Gene –

Mark Sullivan - Mount Vernon Associates

In the state, out of the state, strategic alliances with people that maybe you are currently doing business with?

Jason Tienor

Absolutely, absolutely. I think to clarify you mentioned financial, I think Gene has mentioned during his presentation and working through the completion of a traditional line of credit that’s going to allow it (inaudible) outside of that as I mentioned during my presentation relationships like those with Islandaire that we have just completed during Q1, are instrumental in seeing that type of growth that you are referring to.

While Islandaire is a key tech manufacturer, key tech manufacturers themselves are just keeping request to implement this type of technology earlier in the cycle rather than being in add-on later in the sales cycle. So our ability to speak to customers whom we have no knowledge of, our ability to utilize Islandaire is a significant partner in reaching out to those customers – generated a tremendous amount of interest ready, I can say that we have had and are having other conversations along those same lines. But understand that these type of relationships don’t develop overnight and do require some type of time put together.

Mark Sullivan - Mount Vernon Associates

Money (inaudible) treated best, if you are putting up those kind of numbers, sequentially year-over-year I would think people in the space or people that want to grow or kind of jump on our (inaudible) would be very interested in talking to you on many different fronts in order to growth the company just as fast as possible. I think Jason, you have done a great job but. You can’t keep adding employees and try to ramp on your own, I think at some point the technology is going to warrant some kind of leveraging, springboard if you will.

Jason Tienor

No, I couldn’t agree with you more Mark and in fact pressed into doing something like that is a type of relationships that we have and have grown with as suppose over the course of the last 12 to 18 months is a great indication of those types of growth ramps that we are seeing. As I mentioned, when we are able to start moving our average contract size from 25 to the 50 to the $100,000 and more a lot of those relationships are through performance contracting opportunities with that of course, and being able to be credible with organizations like that and become a key part through the efficiency initiatives that sell to their customers is the type of springboard that we are describing.

Mark Sullivan - Mount Vernon Associates

If your contract gets bigger, are you applying in the competitive environment also becoming more intense?

Jason Tienor

The competitive environment doesn’t necessarily becoming more intense but its shifting one thing that I think we mentioned on the 10-K call is, the largest competitor within the hospitality space was actually acquired less than a year ago by one of our largest SOs that we detail with. You see the landscape shift as people start to determine that there are different markets that this technology fits into.

Mark Sullivan - Mount Vernon Associates

All right, guys. And keep up good work. Thanks.

Jason Tienor

Thanks Mark. Have a great afternoon.

Operator

Thank you. Our next question comes from the line of (Ed Stein), a Private Investor. Please proceed with your question.

Unidentified Analyst

Hi, Jason.

Jason Tienor

Hi, Ed.

Unidentified Analyst

Great quarter. One kind of good question and then want a little bit more detail. The first one is, how are the backlog looking for the rest of the year?

Jason Tienor

The backlogs are looking very good as we mentioned earlier with the ramping of the first quarter typically the reason for the seasonality is because the first quarter is when we start to projects go through our key process, winning of RFPs and move on that next step. And as we saw a lot of projects ramp more quickly during the first quarter, so we are seeing them catch hold in the second and third. The other nice thing was with regard to backlog is, because of the types of relationships we have specifically as I mentioned with (escrow). We are finding a lot of projects that have a much longer horizon. We are able to forecast beyond and simply this year and out into next and we even have backlog generating for 2015.

Unidentified Analyst

Oh, great. Like something like was that (motel 6) that could be over several years, right?

Jason Tienor

Correct. Those types of relationships are rolled out on an individual property basis obviously, they’re not going to try to tackle 100s or even 1000s of properties at any given time. So, locking into those type of relationship is key to us having some insight into what the future forecast would look like.

Unidentified Analyst

Got you. Okay, here is a little more detail that I don't think we’ve discussed on any of the previous conference calls, which is, what is the nature of R&D? Do we have in-house engineers? Do we do things when a customer said could you do this and this, how is it evolving because it does seem like over the last few years, you keep adding technologies and getting patterns?

Jason Tienor

Absolutely. What we do is, we do all of our research and development and engineering in-house, while our contract manufacturing is done outside of the company, all the plans, designs and layouts are done by our own engineers. So, both from a hardware and a software side, all of those engineers are here in-house in Milwaukee. It truly depends on the development roadmap as to what position do we add on an ongoing basis. A lot of our effort over the last two years was perfecting the ZigBee technology and how we utilize within our hybrid platform and then now over the last six to nine months, it’s been spanning out our software basis, our cloud management platform in integrating that into the hardware that we have on site.

Lastly, the – the last thing that we’ve been working on from hardware side as I mentioned that EcoGuard and EcoSwitch which allowed us to provide comprehensive energy management control across all types of energy consumption within the room, hiding, plug load and HVAC just allowing our customers to save energy in all areas. All of that development is done internally and we required resources from a firmer design, from a hardware design specification, documentation from a software documenting the software creation was all in-house.

Unidentified Analyst

Okay. And which, we do, can we do to get that?

Jason Tienor

What we do need to, we look into get the patent research on the technology we are utilizing to determine what’s out there and we are not infringing anybody else’s patent and move through the appropriate filings in order to determine if we can secure patients for own technology absolutely. The first and foremost even prior to that is ensuring that we have a market for those technologies and, and one thing that we do, do and all of our design and development is that consent communications with our customers in order to determine less features and, and applications are important to them.

Unidentified Analyst

Great, okay. Thank you very much.

Jason Tienor

Well, thank you. You have a great day.

Unidentified Analyst

You too.

Operator

Thank you. Our next question comes from the line of Collin Royster with the American Capital Partners. Please proceed with your question.

Collin Royster - American Capital Partners

Hi Jason.

Jason Tienor

Hi Collin.

Collin Royster - American Capital Partners

Two quick things. Up went back in and saw the numbers, the revenues of 2.9, 3.5 and 3.1 for the every quarters of 12, this kind of alludes to the fellow that asked question about revenue growth. Also the $9.5 million in the last three quarters of 2012, can you give us any more specific guidance or percentages of on a $9.5 million?

Jason Tienor

So one thing that we’ve been trying not to do Collin this provide guidance and to try to meet specific guidance because with the company as limited as our revenue numbers are. You can see some pretty dramatic swings from quarter to quarter as a percentage, you know 15% to 30% is very, very simple across at the end of the quarter. So, rather than providing guidance but we do that providing the maximum performance of the company keen in the quarter recording on that success is that, is where we need to be right now.

Collin Royster - American Capital Partners

Okay. The working capital doubt that was pointed out, do you think it will go working capital plus win this year thus it came from what 1.5 down the key point 2?

Gene Mushrush

This is Gene Mushrush, Chief Financial Officer, at the but Collin that the answer to that would be at the very least at the end of the third quarter 930 or 13.

Collin Royster - American Capital Partners

Right. Lastly, Jason, I just want to say thank you for, for Mushrush that to ask of letting us know when this report would be coming out, it’s been very beneficial to the stock price and it’s helpful from a focus standpoint and I just want to say thank you and a great quarter.

Jason Tienor

I appreciate that very much, Collin. I feel the same way as a brokerage you save like I hope that you continue to bring new, new potential investors to tell and, and educate them on what we’re doing today and what our technology is today because obviously you’re not the same company that just the three years to go on and we like the new interest.

Collin Royster - American Capital Partners

Our 70% of the volume in the last four days.

Jason Tienor

Thank you very much.

Collin Royster - American Capital Partners

(inaudible)

Jason Tienor

Have a good…

Collin Royster - American Capital Partners

Thank you guys.

Jason Tienor

Thank you.

Operator

Thank you. (Operator Instructions) Thank you. Our next question comes from the line of Joe Pierce with Plymouth Rock Financial. Please proceed with your question.

Joe Pierce - Plymouth Rock Financial

Great, job Jason, teller performance.

Jason Tienor

Thank you Joe.

Joe Pierce - Plymouth Rock Financial

Are you talk about the, how much that (inaudible) before?

Jason Tienor

How much of the first quarter, I apologize, Gene is here with me as well how much for the first quarter was relevant. How much was rolled before?

Gene Mushrush

That’s been difficult question to quantify still in that obviously as the way that we booked revenue in order to have the services booked as revenue, they have to be substantially completed and singed off. So, you’re correct in assuming that there is a significant amount of growth that was undertaken in the fourth quarter, that was not able to rebook until the first quarter but I really don't have that that figure at hands, is that something that you would like to know we definitely can….

Joe Pierce - Plymouth Rock Financial

No, that’s fine, I feel that was a big number.

Jason Tienor

Joe, as the same thing, it’s interesting that you bring up, point up because the same thing applies here for the first quarter excuse me and going back to Collin’s question, we have a significant amount of work underway as Gene mentioned for the military base that we working on that we are unable to recognize revenue for during the first quarter because they were not completed with their timeframe. So, you do have a crossing over those boundaries.

Joe Pierce - Plymouth Rock Financial

Sure. And that’s great that you do, still need you to grow. Second question its not really the, you mentioned that you spend a lot more money on Investor Relations?

Jason Tienor

I want to make sure that I quantify because when you state a lot nice, we could be talking about two clearly different things. We are definitely spending more money on Investor Relations and in that manner what we were doing is we were attending quite a few different investor presentation this year than we ever have. The reason that we’re doing that Joe was because we believe that the company has proven that it can stand on its own two feet .

We are profitable enterprise and our story and our technology are real and they demonstrated that through a top line revenue growth and the success that we had with the number of large groups. So, now I see an IR are doing is going out to get that story out, not only are we attending investor presentations but I can tell you that probably spend half of the first quarter on the road myself and having individual meetings with investors and institutions as well as the analyst getting the story out to making sure that people understand, we talk one of us, start watching us and see the advancement that we’re making throughout the year this year.

Joe Pierce - Plymouth Rock Financial

Well, the best part of that is you are improving.

Jason Tienor

Correct.

Joe Pierce - Plymouth Rock Financial

Thanks, again, you did a great quarter.

Jason Tienor

Thank you very much.

Joe Pierce - Plymouth Rock Financial

Yeah.

Operator

Thank you. Our next question comes from the line of (inaudible) Aegis Capital. Please proceed with your question.

Unidentified Analyst

Okay, thank you. I was going to ask you about Investor Relations too. You have had an indications that (inaudible) research report on you?

Jason Tienor

We’ve been speaking with the number of different groups Mike in that very same pain. Unfortunately, one of the biggest difficulties in working with the analyst regarded in resource report is very often the paper reports, and this is not something that we would like to move ahead with -- we don't feel that gives us the creditability that we’re looking for.

So, what we’ve been doing is having numerous conversations with traditional analyst and making them aware who we are and why we are providing them with our press releases or to keep them abreast of our improvements. And we have been seeing a lot interest and we’ve been seen a lot more industry pick up of our new releases as well as being quoted in a industry periodicals. So, we’ve seen a lot of growth and I think it seemed a share price as well as you can see we’ve grown 100% year on – this year. So, what we’re doing obviously is working the performance of the company as working but as (inaudible) mentioned earlier, obviously we want to pick up the phase. We’re not happy with where we are from the growth rate right now, we want to continue to increase that phase moving forward and obviously see it reflective in the share price.

Unidentified Analyst

Okay. I agree with you. Please don't tell everybody to report, also have you run across the companies that are in roughly similar businesses that maybe get benefit from those?

Jason Tienor

All I can say in that regard Mike is that we have numerous conversations around strategic relationships on a continual basis, the opportunity that we’ve had move free with Islandaire, is just reminiscence of one of a number of different opportunities that we have and speak to on a regular basis. So, let me talk about M&A, I don't want to allude to or anything that might be or may not be taking place in that avenue but as we mentioned earlier, strategic relationships are key to hockey stick like growth that we’re looking for so obviously there are primary interest in itself.

Unidentified Analyst

Okay. One last thing. I assume you’re getting to the snowball affect where one only base recommend you, if you are another only base, one compel chain recommends you to another its just, I mean probably there is lot easier to fill this application in the first that were at some quite actually sales to take up quite a bit to even the manpower in place or the management revenue to grow or your business substantially without adding all that much to G&A?

Jason Tienor

That’s a difficult question at a number of levels only because obviously as your business picks up, you’re going to have the grow as a company to facilitate that business whether it be sales, whether it be executive or simply whether it be procurement and fulfillment. So, we already seemed significant growth here during Q1 wrapping for the entire year of 2013 because of the pipeline that we have in place and that’s a great thing. It’s a great (comment) to have, been able to grow again something that’s salesman has not been able to do in quite sometime.

So, we’re positioning ourselves for the business that we see ahead of us. That being said in response to snowball question, we absolutely see that affect, we have a lot of incoming interest, a lot more incoming sales interest coming into the company and we ever have. So, by having potential sales coming to us requiring very little upfront activity across on our behalf is obviously leveraging higher profit margins and greater efficiencies as well. So, I guess that it’s a great promise to have in and that’s why we’re here in order to deal with that.

Unidentified Analyst

Okay. Thanks.

Jason Tienor

Thank you. Thank you.

Operator

Thank you. Our next question comes from the line of (Bryan Hatch), a Private Investor. Please proceed with your question.

Unidentified Analyst

Congratulations on a great quarter. I just want to ask after simple question, do you think this is a chance it might be EBITDA positive for the year?

Jason Tienor

Thanks for, for the call Bryan and with regard to EBITDA positive for the years that’s absolutely my intension. We concentrate on two core things and obviously our board is very, very active with us at this point and we’re very appreciative about but the first and foremost thing that is a goal for this year is significant top-line growth obvious increases to revenue and we’re working very diligently at that and what we’ve done in Q1, is positioned ourselves to be able to fulfill our top-line revenue demand.

This second goal for the company is obviously to do that with the significant profitability over the year. So, while, we’re working a very fine line of what we want to end the year with cash and how profitable we want to be versus how fast that we think we can growing our top-line you know at the end of the years, the goal have to be profitable as well as the significant growth. So absolutely.

Unidentified Analyst

I hope, you get your wish. Thank you.

Jason Tienor

Thank you, Bryan.

Operator

Thank you, Mr. Tienor. There are no further questions at this time. I would like to turn the floor back over to you for closing comments.

Jason Tienor

Well, I just like to thank everybody for joining us again this afternoon and for your very insightful questions, please feel free to contact both Gene or myself at any time if there is any additional information if you would like to know and we look forward to speaking with you again on the second quarter. Hope everybody has a great afternoon.

Operator

Thank you. This concludes today’s teleconference. You may disconnect your lines at this time and thank you for your participation.

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