Cynergistek, Inc. (NYSE MKT:CTEK) Q1 2020 Earnings Conference Call - Final Transcript
May 14, 2020 • 04:30 pm ET
Good day and welcome to the CynergisTek First Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Bryan Flynn, CynergisTek, Investor Relations. Please go ahead, sir.
Thank you, operator. I want to welcome everyone to CynergisTek's first quarter 2020 earnings call. Joining us today from the company includes Mr. Caleb Barlow, President and Chief Executive Officer; and Mr. Paul Anthony, Chief Financial Officer.
Before we begin the formal presentation, I'd like to remind everyone that some statements made on the call and webcast including those regarding future financial results and industry prospects, among others are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the conference call. Certain of these risks and uncertainties are or will be described in greater detail in the company's SEC filings.
CynergisTek is under no obligation and expressly disclaims any such obligations to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
At this time, I'd like to turn the call over to our CEO, Caleb Barlow.
William Caleb Barlow
Thank you, Bryan, and good afternoon, everyone. It's only been a month since we talked. So let me start by giving you some more insights around the COVID-19 pandemic and the impact it's having on our business. For our clients, on the front lines of this crisis, this is well a perfect storm, and we're doing everything we can to help them navigate further. I'm sure you're all well versed in the public health crisis and the impact that it's having on America's hospitals.
But the public health crisis is directly contributing to a financial crisis at many of our clients as elective procedures have been put on hold, revenues are down and cash reserves at many institutions are well running low. To add to this, the information and security community, along with multiple government agencies, including Interpol, the NSA, the Department of Homeland Security, cybersecurity and infrastructure security agency, the FBI and the UK's national cybersecurity center are all warning of the likelihood of increased security threats to hospitals, both cyber and physical as narrative wells look to take advantage of increased vulnerabilities and public sentiment.
The telehealth adoption curve has accelerated dramatically, forcing many of our clients to play catch-up from a security perspective. New personnel and commercial-grade devices are being added to the network each day, both streamlining care but also introducing new potential vulnerabilities at exactly the same time. The health care landscape continues to change as many of our clients only began to feel the impact of the pandemic mid-March. Our clients first focus, of course, was operational. Early planning and preparations involved preparing the supply chain and added inventory levels for personal protective equipment and of course ventilators. It included building approaches to add capacity for potential surge in patient volumes.
Well, a month later in our climb