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ePlus Inc (NASDAQ:PLUS)
Q1 2021 Earnings Call
Aug 5, 2020, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentleman. Welcome to the ePlus Earnings Results Conference Call. As a reminder, this conference call is being recorded.

I would like to introduce your host for today's conference, Mr. Kley Parkhurst, SVP. Sir, you may begin.

Kley Parkhurst -- Senior Vice President and Assistant Secretary

Thank you for joining us today. On the call is Mark Marron, CEO and President; Elaine Marion, CFO; Darren Raiguel, COO and President of ePlus Technology; and Erica Stoecker, General Counsel. I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates and projections. Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon in our periodic filings with the Securities and Exchange Commission, including our Form 10-K for the year ended March 31st, 2020 and our Form 10-Q for the period ending June 30th, 2020 when filed.

The company undertakes no responsibility to update any of these forward-looking statement in light of new information or future events. In addition, during the call, we may make reference to non-GAAP financial measures and we've included a GAAP financial reconciliation in our earnings release, which was posted on the Investor Information section of our website at www.eplus.com.

I'd now like to turn the call over to Mark Marron. Mark?

Mark Marron -- Director, President and Chief Executive Officer

Thank you, Kley, and thank you, everyone, for participating in today's call to discuss our fiscal 2021 first quarter results. ePlus performed well in a dynamic business environment, our solutions portfolio is positioned to support our customers' needs in critical areas including cloud collaboration software, data center and security. Our strategy to bolster our recurring and annuity-type revenues has continued to gain market share and provides a more consistent baseline of revenue and profitability for ePlus.

We focused on mid-sized to enterprise customers with good credit quality, and we believe we have minimal exposure to the most at-risk industry verticals like retail, hospitality and travel. We believe our 30-plus years of providing leasing through our financing segment has provided us with risk management knowledge and experience to successfully navigate through economic downturns.

We have remained fully operational during the pandemic shifting much of our business to accommodate work-from-home mandates and take it appropriate precautions for health and safety of all of our employees. I want to commend the entire ePlus team for pulling together and showing tremendous dedication to our company and its values. As a result, we were able to expeditiously serve our customers and effectively support their critical IT needs.

The key measure of our success in the quarter was a 6.4% increase in gross profit and a strong consolidated gross margin of 27.8%, driven by a very favorable business mix in the quarter, including a larger component of third-party maintenance services and subscription sales. Services revenue increased 4.4% while we do not expect this quarter's uncharacteristically high margin level to be replicated in future quarters. It is consistent with our history of achieving industry-leading gross margins as compared to our peers.

Taking a closer look at first quarter results, while Technology segment net sales declined 7.4% to $341.2 million, our adjusted gross billings held stable at $546 million. This conversion rate, several hundred basis points higher than usual, was based on a significant increase in demand for third-party maintenance, software assurance, and subscriptions in the first quarter.

Turning to our financing business. Revenue grew 8% over last year, reflecting the benefit of post-contract earnings as we extended the term of some lease agreements. We think our financing activities will continue to increase in importance as leasing is a great alternative, which facilitates customers ability to upgrade and secure their IT infrastructure, while minimizing upfront cash requirements.

There is no question that COVID-19 has been challenging to us, our customers, and our business partners. However, it has also solidified relationships with many of our customers by showcasing our ability to nimbly execute complex projects in a timely manner. Many customers are trying to improve remote workforce enablement with collaboration capabilities while providing secure remote access for their data being access from home. Some are dealing with data center capacity issues due to the influx of remote workers are also looking for ways to contain costs while looking at leverage the full benefits of the cloud.

In some cases, they have no budget allocated for the solutions they need now due to the pandemic.

Let me give you a few examples of how ePlus has assisted our customers navigate this new environment. One customer's current infrastructure could not support the workload generated by their employees working from home. They had to improve their network capacity and upgrade their security posture and protocols needed for the move to remote work.

This was an unbudgeted expense that needed to be done in a timely fashion. We were able to leverage the power of our two business segments, by providing the technology and services they needed along with the flexible instalment purchase of Agreement provided by our finance team. This solved the customers budget constraint and they were able to get the technology they needed to address their critical business needs.

Another customer had multiple disparate systems running in parallel and wanted to consolidate all communications platforms under a single solution. While this goal had been in their plans, COVID-19 created additional challenges that required accelerating their timeline. They wanted to leverage the resiliency and flexibility of the cloud, while maintaining control and accessibility of an on-premise solution and choose a multi-year commitment through a cloud-based collaboration solution. This solution allow their IT team to manage this cloud-based solution remotely and not be on site, while providing their users access to an enterprise level collaboration platform from home.

In summary, these solutions provided an enhanced user experience, better network capacity and security and allowed all employees to seamlessly work across the company. Also, we are helping our customers do more with fewer internal resources given the value proposition of our outsourced offerings like staffing and managed services, which can often be more cost effective. This is a win-win, allowing us to save our customers significant costs during periods of economic uncertainty while yielding incremental gross margins for ePlus.

It also positions us as part of our customers teams giving us visibility on emerging needs and the ability to sell additional services. Security continues to be an important offering and long-term growth driver, accounting for nearly 20% of our adjusted gross billings. We continue to see strong demand for our security solutions, and this offering remains a key differentiator for ePlus at a time when it is increasingly and overall in importance.

Finally, we will continue to use our strong balance sheet to seek strategic acquisitions and make organic investments to build out our geographic footprint and solution offerings. We think this challenging economic environment may present opportunities that we are well positioned to execute, given our historical experience of successfully integrating acquisitions.

I will now turn the call over to our CFO, Elaine Marion, who will provide a detailed review of our first quarter results. Elaine?

Elaine Marion -- Chief Financial Officer

Thank you, Mark, and thank you, everyone, for joining us today. Starting with our overall financial performance in the first quarter of fiscal 2021, consolidated net sales amounted to $355 million, 6.9% below the $381.4 million reported in last year's first quarter, mainly due to an increase in sales of third-party maintenance, services and software subscriptions, which are recorded on a net basis.

For our technology segment, revenue was $341.2 million compared to $368.5 million in last year's first quarter. The 7.4% decline was primarily due to an increase in sales recorded on a net basis. Service revenues increased 4.4% to $47.8 million due to an increased demand for managed services. Adjusted gross billings amounted to $546.4 million, modestly lower than last year's $548.4 million.

The adjusted gross billings to net sales adjustment was 37.5% compared to 32.8% in the first quarter of 2020 for the same reason net sales decreased. Our financing segment revenue of $13.8 million increased 7.6%, mainly due to an increase in post-contract earnings from term extensions of certain lease schedule. As a reminder, results for this business can be uneven and difficult to predict. Consolidated gross profit increased 6.4% to $98.6 million from $92.6 million. We reported a consolidated gross margin of 27.8%, which widened 350 basis points from last year's first quarter and was a high point in our history driven by gross margin improvements in both segments.

Gross profit for the technology segment increased 6.1% to $86.8 million and gross margin of 25.4,% increased 320 basis points. Technology product margin increased 350 basis points to 23.5% primarily due to an increase in sales of third-party maintenance, services, and subscription licenses, which are recorded net. Services margins increased 20 basis points to 37.6%, primarily due to our managed services. The financing segment's gross profit increased 8.2%, slightly ahead of revenue growth.

Operating expenses increased 5.3% to $73.6 million, mainly due to an increase in salaries and benefits, reflecting higher variable compensation tied to gross profit growth and higher replacement cost from turnover. Offsetting these increases were lower healthcare expenses, travel and entertainment, and professional fees.

Our total headcount at the end of June 2020 amounted to 1,536, essentially flat with last year. As a result of the improved gross profit, operating income increased 9.8% to $25 million compared to $22.8 million last year. Our effective tax rate for the quarter increased to 30.8% higher than last year, 28.7%, primarily due to an adjustment to the federal benefit from state taxes. For the year, we expect our tax rate to be approximately 29%. Our consolidated net earnings amounted to $17.4 million or $1.30 per diluted share compared to $16.2 million last year or $1.20 per diluted share, a 7.2% and 8.3% increase respectively.

Non-GAAP diluted earnings per share increased 4.9% to $1.51 per diluted share compared to $1.44 per diluted share year-over-year. Our diluted share count totaled $13.4 million for the quarter compared to $13.5 million for the first quarter of fiscal 2020.

Now, looking at our end markets in our technology segment, technology and telecom, media and entertainment continue to be our two largest customer end markets on a trailing 12-month basis accounted for 21% and 19% of technology segment net sales respectively. SLED, healthcare and financial services accounted for 16%, 15% and 13% respectively with the remaining 16% coming from a variety of other client types.

Our balance sheet continues to be strong with shareholders' equity of more than $500 million. We ended the quarter with cash and cash equivalents of $144.4 million, up $58 million from the end of March, primarily due to a decrease in working capital needs in our technology segment and an increase in non-recourse debt. We also have approximately $185 million in our financing portfolio, a portion of which may be monetized by funding transactions with third-party financial institutions.

Inventory levels increased to $93.3 million. As we've discussed in the past, our inventory levels vary depending on specific customer projects under way. Our cash conversion cycle at the end of the first quarter was 30 days, up from 24 days in the year ago quarter, but down from 37 days in the March period. The change from last quarter was primarily due to a decline in our days sales outstanding, offset by an increase in days inventory outstanding. As for capital allocation, we continue to monitor the effect of COVID-19 on our business and use of cash. However, we will continue to evaluate opportunities for investments, including organically in our solutions to align with customer demand, acquisitions and share repurchases. We believe COVID-19 had a small downward effect on demand in the first quarter of fiscal year 2021 as this pandemic is unprecedented. We are uncertain as to how it will affect demand in fiscal 2021.

As you are aware, we focus on innovative solutions for medium and large commercial businesses as well as state, local and higher education,customers and we'll continue to monitor and adjust for the pandemic's impact on our business. Most of our employees are working from home, except certain roles, which have continued to be in our configuration centers and on-site at certain customer locations, and those who have voluntarily returned to our recently reopened headquarters.

I am proud of what our employees have accomplished since the pandemic began. I would like to thank them for all their dedication and resilience. In addition, thanks to our vendor partners who have continued to work diligently in assisting us with supporting our customers.

I will now turn the call back over to Mark. Mark?

Mark Marron -- Director, President and Chief Executive Officer

Thanks, Elaine. Our fiscal 2021 first quarter results demonstrate the relevance of our key focus and the important role that ePlus plays in supporting customers as they navigate a rapidly changing business landscape. We effectively managed through a difficult business environment in the first quarter and are prepared to meet the challenges ahead. Thanks to our large and diversified customer base, which has limited exposure to those industries hardest hit by the pandemic, our strong financial position and, most importantly, the collaborative culture that defines ePlus, all of this gives us confidence in our long-term growth potential.

Operator, I would now like to open the call for questions.

Questions and Answers:

Mark Marron -- Director, President and Chief Executive Officer

[Operator Instructions] Our first question is from Maggie Nolan with William Blair. Your line is open.

Ted Starck-King -- William Blair -- Analyst

Hi, Mark and Elaine, it's Ted on for Maggie. Can you talk about the demand environment for products and services as the quarter progressed into July and August here as well? Has the demand for our products trough do you think and is it reasonable to expect continuation of growth for the services kind of at the same level we saw during the first quarter?

Mark Marron -- Director, President and Chief Executive Officer

So, first of all, hey, Ted. How are you? And tell Maggie we said congrats on the birth of her daughter. Okay?

Ted Starck-King -- William Blair -- Analyst

Yeah, will do.

Mark Marron -- Director, President and Chief Executive Officer

All right. So, a couple of different things. I think when we talked about last quarter, we had talked about that April was kind of in line. So I'll talk about this quarter and then I'll try to give you a little bit going into this quarter, meaning July through September quarter for us. So, April was kind of line with expectations. Overall, the quarter kind of wound up that we thought the way it would. We had a little bit of slowdown at the end of the quarter, some of the projects slowed down, couldn't get on site with some of the services. So even though we had growth of 4.4% on our services overall, there were some opportunities that we couldn't get on site.

The demand that we saw was a little different than -- I won't say different than normal, we were in the right focus area, so everything was really around workforce enablement -- remote workforce enablement that includes collaboration, communication, lot of companies didn't have data center capacity, believe it or not, for all of remote users that they were dealing with, a lot of companies were looking at security solutions in terms of kind of secure access as people were trying to access data from their home and a lot of folks were moving quickly to the cloud. So, for the quarter, it was kind of in line with expectations a little slow going into the end of the quarter, it would be for Q1.

For Q2, it's kind of along the same line, so I can only speak to July, it was kind of in line of where we expected. We still have good visibility into our pipeline overall. Services is a little challenging for a couple of different reasons, one, getting on site, some of the schools not being able to get on site for example, staffing, some of the folks have slowed down a little bit on staffing. But with that said, we've seen pickups in other areas on services with our consultative services and customers looking at our annuity services, but that would be it at a high level.

Ted Starck-King -- William Blair -- Analyst

Okay, great. That's really helpful. Can you talk about the higher education in the same local market exposure there and just kind of what you're seeing from a budget standpoint, just given everything that's going on within those end markets.

Mark Marron -- Director, President and Chief Executive Officer

Yeah. Not a problem. So, if I look at the different verticals. But I'll start with state and local and education. So, state and local was actually flat for us for the quarter. Our K-12 was actually down, and that's really, we don't play in the commodity space, Ted, in the K-12, so a lot of the Chromebooks, laptops, that's not really our space. So it's more of the, I'll call it, the higher margin infrastructure place, so that was down a little bit, but higher ed was up. So, net-net, or overall SLED state, local and education was up year-over-year.

I think the one that's kind of, I won't say obvious, healthcare was down for us. And I think that's due to a lot of things that I think everybody would realize as it relates to what they were dealing with overall in terms of just dealing with the patients, no elective surgeries, quite honestly, we were just trying to do anything we could help our healthcare customers kind of get through this pandemic anyway we could, but SLED was up overall for us year-over-year and state and local was flat, K-12 was down, higher ed was up.

Ted Starck-King -- William Blair -- Analyst

Great. Wanted to ask about the mix of the services mix in particular. I know, the margin picked up this quarter. Can you talk about just kind of the mix of staffing and professional services in this type of environment? I know you had been seeing a little bit of a trend toward staffing and increasingly that as a percentage of revenue, have we kind of hit from a mix standpoint that the peak mix of staffing within the services?

Mark Marron -- Director, President and Chief Executive Officer

No, I don't think we've hit the peak, Ted. I think what you have going on right now is a lot of folks are trying to double down in terms of focusing on what they need to enable their remote workers to do whatever their job is. So, they are investing in, like I said, the communication and collaboration tool, security, datacenter, and network capacity tools, trying to leverage the cloud. A lot of customers are trying to leverage our financing capabilities, so as they've had some projects that are unexpected budgets, trying to get some short-term relief.

As it relates to services, we don't break it out by the individual pieces, as I think, but I can tell you the consultative side of our services is really picking up as we are providing solutions that customers need whether datacenter and cloud related security and risk-related; staffing is down a little bit, but I believe as we move forward, I think as customers -- as COVID hopefully starts to lessen and that's what I'm hoping for in the future even though it's very uncertain, I think you may see a pickup in staffing as that comes back. And there is a little pressure on our professional services mainly for the reason that I mentioned earlier about being able to get on site.

Ted Starck-King -- William Blair -- Analyst

Very good. And just if I could sort of in the last question here. What was the organic growth this quarter? Thank you.

Mark Marron -- Director, President and Chief Executive Officer

Do you know at the top of your head?

Elaine Marion -- Chief Financial Officer

It was primarily organic. There was little contribution from the acquisition.

Ted Starck-King -- William Blair -- Analyst

Thank you.

Mark Marron -- Director, President and Chief Executive Officer

All right. Take care. Ted.

Operator

Our next question is from Greg Burns with Sidoti & Company. Your line is open.

Greg Burns -- Sidoti & Company -- Analyst

Afternoon.

Mark Marron -- Director, President and Chief Executive Officer

Hey, Greg.

Greg Burns -- Sidoti & Company -- Analyst

I will follow-up on the last question. I wanted to get maybe your view on kind of the sustainability of the current trend, so I would assume there was an initial rush to kind of set businesses up to support remote working and other things. So, I just wanted to see if maybe you felt like you had this initial push and then maybe we see a falloff or maybe this is just accelerating longer-term trends. So it's more sustainable, but what's your view on that and how the market is kind of reacting in the environment?

Mark Marron -- Director, President and Chief Executive Officer

Yeah, Greg, that's a tough one only for one reason. With only uncertainty with COVID, none of us have a crystal ball unfortunately. So I think the longer the spikes and kids staying out of school, I think it's going to be tougher and tougher to predict. But if I were to go with some of the industry experts what they're talking about, you would expect cloud spend to be up by a decent amount, you'd expect security spend to be up by a decent amount.

I think a lot of customer have kind of -- multiple collaboration and communication systems in place that they're probably going to want to convert into one kind of solution. So, I think there'll be opportunities for us there. And I think there'll be consultative opportunities for us to help customers whether it's with data center capacity issues, whether it's cloud cost optimization, I think you'll see a lot of folks as they rapidly gone for the cloud. There are 2 things that I think will happen is, one, I think to spend at some point is going to, they're going to get the bill and have a little sticker shock and two, I think moving that quickly, there may be some security risk that they're taking that they're going to have to address.

Greg Burns -- Sidoti & Company -- Analyst

Okay. And then, in terms of the gross margin, I know it's going to be driven heavily by mix and like you mentioned, this is a record quarter but how should we think about just going forward? Has it stepped up to another kind of tier or another level structurally going forward or should we model somewhere in between kind of where it was historically and where it was this quarter or how should we think about maybe the mix of the business in the gross margin going forward?

Mark Marron -- Director, President and Chief Executive Officer

Yeah, couple of things. One, did we say record quarter? I don't remember that, Greg. So maybe you did, but I'm not sure we did, OK? When I look at it, this one to be really tough to replicate. There is a couple of things into it. We had a very high gross to net. So there were a lot of customers that were renewing maintenance for an incremental year just from a budget perspective. We also had a big uptick in subscription sales, which were taken on a net basis. We also had an uptick in our services margins, I think it was 20 basis points. So, I think those three contributed to it, but this is significantly higher than our traditional norm. And I don't believe this is something that's the new norm.

Now with that said, we're pretty excited about where our margins has been going as we talked about on prior calls. So, over time, if our services or annuity services and consultative continue to build, I would expect it to trend up over time. But this is not the norm. This is more an exception based on what happened this quarter.

Greg Burns -- Sidoti & Company -- Analyst

Okay. Then lastly, just looking at the financing business, I know you always mentioned that it's going to be lumpy and very transactional base. But it seems to be pretty consistently over the last year-and-a-half or so kind of at these levels and these transactions have continued. So, are you investing more in the business? Like why has it grown structurally, and this is again by kind of a new normal for this business where it's may be operating at a higher level than where it has been historically and that's sustainable. And then in terms of the incremental debt you've taken on, the non-recourse and I think actually recourse debt was up last quarter, is that tied to kind of growing your bulk of leasing business, what is that related to? Thank you.

Mark Marron -- Director, President and Chief Executive Officer

Okay. I'll let you want to do [Indecipherable] on non-recourse. But just look at a high level, we've made investments in our leasing over the years. We believe we've got a pretty good team that's done a really nice job. But what's not going to change, Greg, it's going to be lumpy. There is many large deals or transactions that come in quarter-over-quarter, year-over-year, some happen, some don't. So, I think that will continue. The other thing that comes into play now, when you get into a tight credit market like we are in some of the funding from banks and things along those lines. And also there is credit things that we have to think through with deals that maybe in the past, we would have took, let's say, in the retail space that now may not take.

So there is a lot of variables that go into that. But I would -- I don't think we're ever on a path just yet with our financing team where it's stable. It's going to be lumpy as we continue. And I think, quite honestly, we've got a tough compare in Q2 compared to last year with our leasing numbers or finance numbers.

Elaine Marion -- Chief Financial Officer

And Greg, to address the non-recourse debt, it's really related to the increase in the portfolio. So, it correlates to that. In terms of the non-recourse increase, that is related to the Wells Fargo facility, we had $35 million outstanding on that line as of -- actually as of 3/31 and we carried it through 6/30, we have since repaid that, but it was outstanding as of 6/30.

Greg Burns -- Sidoti & Company -- Analyst

Okay, great. Thank you.

Elaine Marion -- Chief Financial Officer

Sure.

Mark Marron -- Director, President and Chief Executive Officer

Thanks, Greg.

Operator

Our next question is from Kurt Swartz, Kurt, If you could also provide your company name. Your line is open.

Kurt Swartz -- Stifel -- Analyst

Yes, this is Kurt Swartz from Stifel. And I'm on for Matt Sheerin today. How are you all?

Mark Marron -- Director, President and Chief Executive Officer

Hey, Kurt.

Elaine Marion -- Chief Financial Officer

Hey, Kurt.

Kurt Swartz -- Stifel -- Analyst

So,I'm hoping you can maybe provide a little bit more color on some of the OpEx dynamics during the quarter and whether there are any COVID-related costs included in those numbers as well as how we should sort of think about the current OpEx levels on a forward-looking basis?

Mark Marron -- Director, President and Chief Executive Officer

Okay. So a couple of different things, one, I think OpEx, it's probably at a good run rate in terms of this past quarter for work from a modeling perspective, a couple of different things happened in the quarter. One, we had higher GP, so the variable in terms of commission was higher as it relates to the GP. We had made some investments in higher end, what I'd call, solutions and services talent that I think increased our salaries as well even though headcount effectively was flat, there were a few things as it relates to our utilization rates with services that fell in SG&A versus COGS trying to think of what else from a salaries and benefits. Anything else?

Elaine Marion -- Chief Financial Officer

Probably -- yeah, nothing else from the salaries and benefits, but to address the COVID question as it relates to costs, we had immaterial costs related to COVID. We did buy some additional equipment for folks that were at home, but it was pretty immaterial, some PPE costs, things like that, but nothing material that you would notice in the quarter.

Mark Marron -- Director, President and Chief Executive Officer

Yeah, Kurt. One other quick thing, just overall, we had lower travel and entertainment as well. So that kind of effected the quarter. And if you look at it sequentially, what was nice about our number sequentially our GP, our gross profit was up about $6.7 million and our SG&A overall was down about $0.5 million. So, in terms of trending, that was a nice trend. But I would think this quarter it is a nice one to model off.

Kurt Swartz -- Stifel -- Analyst

Understood. Thank you. And then I guess sort of sticking with the COVID theme. Were there any supply constraints to speak of during the quarter or any other supply chain issues that you had to sort of navigate?

Mark Marron -- Director, President and Chief Executive Officer

No, nothing much. There were few things shipping at the end that kind of affected our numbers, but I wouldn't say it's anything material. Some of the cycles were a little bit longer, but nothing that I would call dramatic or material, Kurt.

Kurt Swartz -- Stifel -- Analyst

Got it. And then, I guess, just overall as maybe as you're looking at fiscal year '21 or I guess maybe in the next 12 months, have you, I guess maybe internally discussed any sort of assumptions for IT spending over the next 12 months or how you're exactly looking at the spending environment currently on a forward basis?

Mark Marron -- Director, President and Chief Executive Officer

No, Kurt, that's a hard one look as COVID continues the uncertainty makes it tougher. I think everybody to kind of project and predict what's going to happen. We kind of track things by customer, by vertical, by different functional area, if you think about the different verticals. The nice thing there is we're not exposed in some of the hardest hit regions like retail, in oil and gas and hospitality. But also even if you think about some of the verticals that were up year-over-year or trailing 12 months, it's not just those verticals, it's the customers that they are selling to that we have to kind of factor in, so it gets very tough to kind of predict where things are going to go. I will tell you, we feel pretty good about this quarter, it was a solid quarter in contributions from both of our segments. We like to all the profitability metrics in terms of GP, gross margin, operating income, EPS were all very positive for us. But predicting going the rest of the year in the future be really tough with what's going on in the market.

Kurt Swartz -- Stifel -- Analyst

Understood. And then maybe one more, if I could. You touched on it a little bit during the prepared remarks, but the inventories levels were a bit elevated in the quarter, and I know you said that sort of fluctuates based on projects in the pipeline and whatnot. So, if you could maybe provide any additional color there, that'd be helpful.

Elaine Marion -- Chief Financial Officer

Yeah. The inventory had increased to $93 million at the end of the quarter, about $40 million or so, and it was really related to many different customers, there were a couple of larger customers that had multiple projects under way that we're working on, but that should get relieved here over the next couple of quarters.

Kurt Swartz -- Stifel -- Analyst

Understood. Thank you so much.

Elaine Marion -- Chief Financial Officer

You're welcome.

Mark Marron -- Director, President and Chief Executive Officer

Take care, Kurt.

Operator

[Operator Instructions] And ladies and gentlemen, this does conclude our Q&A period. I'll now turn things back over to Mark Marron for any closing remarks.

Mark Marron -- Director, President and Chief Executive Officer

Okay. Thank you, everyone, for taking the time to listen to our call today. We look forward to seeing you on Investor roadshows in the future, hopefully I should say. And then if not, speak to you at next Q2 quarterly earnings. Take care and be safe.

Operator

[Operator Closing Remarks]

Duration: 33 minutes

Call participants:

Kley Parkhurst -- Senior Vice President and Assistant Secretary

Mark Marron -- Director, President and Chief Executive Officer

Elaine Marion -- Chief Financial Officer

Ted Starck-King -- William Blair -- Analyst

Greg Burns -- Sidoti & Company -- Analyst

Kurt Swartz -- Stifel -- Analyst

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