Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Charles Strauzer - CJS Securities.
Charles Strauzer - CJS Securities
Just a quick question for you, you've given a tremendous amount of detail and I thank you for doing that. It's always very helpful in kind of going through the model. But when I look at kind of the uses of free cash flow, Lee, and the $40 million of CapEx spend and given the distressed nature of many of the companies that are in your space that are out there, the smaller companies I should say on the printing side, perhaps would asset purchases be more advantageous given the market environment these days rather than buying new?
Lee Schram
Pardon me?
Charles Strauzer - CJS Securities
You said you wanted to ramp the digital platform with CapEx in your $40 million, basically are there some distressed assets out there that could potentially be more advantageous purchases rather than purchasing new equipment I should say?
Lee Schram
We didn't imply that everything was new in terms of what we're purchasing there. So I think what we're trying to do basically, Charlie, in the capital space is continue to follow our transformation in terms of the work that we think that we need to get done to, not only get our costs out, but also to get more efficient over time and the way we do manufacturing.
But not only in the way we do manufacturing, but also in the other areas that we think are important to continue to build the company, so e-commerce investments and other organic investments that we talked about loyalty retention, fraud and security and so on and so forth. So it's a real balanced perspective, but we didn't mean to imply that everything is necessarily new in terms of asset purchases.
Charles Strauzer - CJS Securities
So you are thinking the same way and then just if you could expand a little more on current trends with Hostopia? I know that's into an area that's being viewed as a way for businesses to kind of reduce their expenses by taking advantage of going online a little bit. Have you seen a kind of pick up in trends there at all?
Lee Schram
Love this acquisition. I just continue to be so impressed with the team. Here's the best way I would view it right now. We had another strong quarter in the first quarter, and what we're continuing to see we saw more of a ramp in the, if you remember their model is first and foremost a Telco focused model, a wholesale model where they get access to their small businesses, and we had more new business in the quarter and actually did better there than we expected in the quarter.
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