Q3 2019 Earnings Call
Good afternoon, everyone and welcome to Limelight networks, Q3, 2019 earnings conference call and webcast.
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Two.
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At this time I'd like to turn the call, let's go over to Mr., Dan Bansal, Chief Accounting Officer, Sir. Please go ahead.
Good afternoon, and thank you for joining the limelight Networks' third quarter 2019 Financial result results Conference call. This call is being recorded on October 16th 2019, and will be archived on our website for approximately 10 days.
Let me start by quickly covering the safe harbor, we'd like to remind everyone that we will we will be making forward looking statements on this call.
Forward looking statements are all statements that are not strictly statements of historical fact, such as our outlook for 2019 and beyond our priorities our expectations, our operational plans the business strategies secular trends and product and feature functionality announcement.
Actual results could differ materially from those contemplated by our forward looking statements and reported results should not be considered as an indication of future performance.
For more information please refer to the risk factors discussed in our periodic filings, including our most recent annual report on Form 10-K .
Forward looking statements on this call are based on information available to US as of today's date and we disclaim any obligation to update any forward looking statements, except as required required by law.
Joining me on the call today, or Bob Lento, Our Chief Executive Officer in Sajid Malhotra, our Chief Financial Officer, we will be available during the Q and eight session at the end the prepared remarks from Bob inside of it.
I'd now like to turn the call over to Bob Lento.
Thanks, Dan and good afternoon. This was an X one quarter, we made great progress on multiple priorities during the quarter and set the foundation for a strong second half across many operational and financial measures.
Before getting into the third quarter details I'd first like to thank everyone, who were tendered [laughter]. Our recent analyst day at our new corporate headquarters in Scottsdale, as well as those who joined us on the phone or webcast.
It was a deeper dive into how we see the industry and how our strategy aligns with industry trends based on the feedback received we believe it was a success.
If you Miss the event you can do the presentation, which is posted on our website.
Now onto a third quarter results revenue was up 4% year over year to $51.3 million, which was our highest third quarter revenue ever.
And our second highest revenue in any quarter.
GAAP net loss was $2.8 million non-GAAP net income was $600000 and adjusted EBITDA was $5.8 million. We're very pleased with these results. We made some tough strategic decisions last year, which negatively impacted revenue in the short term, but position does better.
For a long term financial success in the third quarter, our financial results began to show the benefits of those decisions as we returned to year over year revenue growth.
We expect this growth to continue in the coming quarters with increasing strength in the fourth quarter, where many of our new deals in initiatives are expected to have a more substantial impact.
During the third quarter, we delivered record traffic, which is almost 20% higher than our previous record set in the second quarter. This year. We're excited about this momentum in our business and expected to continue in the fourth quarter and beyond.
Customer acquisition accelerated in the third quarter with numerous new logos and across all regions.
I'm also pleased that our customer churn count in the third quarter was down 25% for the third quarter 2018 levels.
The decline in customer churn is consistent with our high levels of customer satisfaction.
Evidenced by the results of our recently completed annual customer survey a generates our net promoter score.
As discussed during our analyst day, the strong demand, we're seeing as a result of a number of factors, including the new sizable O.G.P. offerings on the horizon.
As we now know based on public announcement Apple is set to launch Apple TV plus the November 1st did he plans to launch Disney plus on November 12, and others are slated for 2020.
These are exciting events for the industry and we're pleased to be part of most if not all of these major services.
We're also pleased with our progress in edge services, which leverages our infrastructure in software to address our customers' needs at the edge for low latency and kind of activity.
There are several initiatives that are underway that we believe in add important capabilities that our customers care about.
Let me describe a few that I believe are both important to our shareholders and our customers.
The first use cases, why might real time streaming which is the industry's first global scalable sub second live video streaming solution that is natively supported by major browsers and devices.
Real time streaming is a long term opportunity for us and we're pleased that this new offering clearly establishes limelight has the industry leader in sub second global delivery.
Our partnership with Ericsson is another Great example, where we are the exclusive provider of content delivery capabilities for its global scale edge club platform.
During the third quarter, we made good progress in executing our plan with Ericsson, we started the quarter with 19 existing Ericsson locations and we expect that number to double in the next few months.
All of these new locations will be next generation products, which are new builds by Ericsson within a service provider utilizing our software and hardware specs.
As important as it provides limelight with a low capex model for expanding capacity closer to the edge within service provider networks in locations that were previously hard for us to reach.
We're very pleased with its accelerating momentum in our Ericsson partnership the relationship continues to build and we're pleased with the execution in progress we're making together.
Another Great example is our new Serverless compute capabilities also known as function as a service. This offering will provide a platform for our customers to deploy their own application functions into our network agile occasions and run them on demand, we expect to be able to provide the service in the first half of 2020.
As discussed at length during our analyst day, we believe our platform aligns well with the requirements for Ed services, we continue to evolve our edge platform through the third quarter working to expand our ecosystem of partners and build out additional offerings for our customers.
And the third quarter, we continued to gain traction in the marketplace as we close the number of new edge service deals and have a strong and growing pipeline.
Year to date revenue from our edge services related offerings.
Increase.
60% from 28 team.
And we expect the full year revenue from edge services to approximately double over the prior year.
With these new service offerings, we expect to see continued acceleration in terms of dollars and as a percentage of prior period amount in 2020 and beyond.
In addition to the capacity added through new Ericsson locations, we continued to focus on expanding our capacity through software enhancements and expansion of our network into new locations that are important to our customers and support key initiatives.
During the third quarter, we completed the rollout of enhancements to our network software that were designed to drive increased performance and throughput.
This project has been in development for the past two years and we're excited about its completion.
The new software has increased throughput on our servers by over 30% and added over 12 Terabits per second of edge server capacity on our network without any additional capex spend.
As reported last quarter. We began 2019 were 28 terabits per second a bed server capacity [noise].
As a result of our initiatives. We now believe that will more than doubled this capacity by the ended the year to around 60 Terabits per second.
Well, we're still in the planning stage for next year. We currently expect to increase our capacity in 2020 by an even higher amount than 2019, well, reducing capex on a year over year basis.
We believe this will be important in order to address conserve the strong demand we see in the marketplace.
We expect these efforts to have a positive impact on our customers and drive revenue growth in the future.
In summary, this was an excellent quarter for limelight, we're very pleased that we returned to a growth trajectory in the third quarter with year over year and sequential revenue growth.
We expect this growth to accelerate and believe our third quarter results are a precursor to a record performance in the fourth quarter, which we are confident we will deliver.
As I look forward I see an exciting time in our industry, we're focused focusing our R&D and investment dollars in video delivery were low latency in high quality matter and to further strengthening our edge platform.
We believe we are ideally positioned and well suited to take advantage of the trends in the industry and we expect this will translate into sustainable above market returns.
I would like to express my gratitude for the hard work of our global team and the momentum they together have generated this year.
In addition to all the initiatives I've already talked about we also completed the complex project of moving our headquarter location into a new facility that will be our home for the next 10 years.
Im more confident than ever at 29 team will be our best year on many fronts and will serve as a foundation for an even better 2020.
With that ill turn the call over decided to discuss the third quarter financial performance in greater detail and our guidance for 2019.
Thanks, Bob and good afternoon.
Third quarter results, we're very pleased to report I returned to topline growth and improving profitability.
We believe we must feel significant year over year and sequential growth in the fourth quarter and further improvements in the operating line.
Revenue in the third quarter is $51.3 million.
4% year over year end up 12% sequentially.
On a year over year basis, we have sold through the contract renegotiation and our strategic customer decisions from the third quarter of last year.
Sequentially, we have reported a highest revenue growth rate in over a decade and it may be the highest in the industry.
At $51.3 million, the third quarter is within $1 million off a highest ever revenue quarter. The business is growing strong momentum.
International customers accounted for 36% of total revenue in Q3 compared to 38% a year ago.
This is based on where the customer is built on the other had international traffic is approximately 47% of quarter traffic.
Approximately 14% of a third quarter revenue was in non U.S. dollar denominated currencies.
Foreign exchange headwinds in the quarter amounted to approximately $200000.
Our top 20 customers accounted for approximately 74% effect on revenue.
With the second and third quarters seasonally being the lowest volume and therefore lower revenue quarters, we're particularly pleased with the reported revenue growth we have seen in each sequential quarter in 2019.
During the third quarter, we delivered a record amount a better bites also in the quarter, we had the highest beat traffic and had multiple days with the most better by delivered in our history.
We believe we will continue to set new traffic delivery records for the foreseeable future as we see healthy demand for a video based Ed services.
Moving on to expenses, we have been deploying capital throughout the year do expanded network capacity in order to deliver against the expectations of a steep ramp in traffic.
The increase in co location in bandwidth costs and depreciation expense is related to the near doubling off a network to almost 50 terabyte Spurs take enough capacity.
We expect gross margins to continue to improve as traffic ramp in locations babies. The height of UBS often off a newly deployed capacity. We are in a race to serve the customers and the timing may not match perfectly, but the trend is healthy and the outcome should feel continuous improvement.
Operating expenses decreased $700000 was sales and marketing expenses increased due to expanded headcount.
On a GAAP basis, we lost two cents per basic share this quarter compared to six and lost last quarter and breakeven last year.
non-GAAP EPS was once again this quarter compared to a loss of three cents last quarter and a positive piece and last year.
Adjusted EBITDA was $5.8 million for the third quarter 2019.
We had cash and marketable securities of $18.1 million at the end of the third quarter, we used approximately $2 million in cash from operations.
In the quarter due to timing of payment as accounts receivable increased by over $5 million.
We spent $7.7 million and capital expenditures in the third quarter, bringing the total for the year to $24.2 million.
Cash usage was also slightly elevated due to capitalize and expense items related to our headquarter move.
We ended the third quarter DSL was 55 days compared to 52 days at the end of last year within our expected range of 50 to 55 days.
Our balance sheet remains strong and be remained debt free.
As of September Thirtyth, we had approximately 116.5 million shares outstanding.
Total employee count at the end of the quarter was 609 up 58 from the end of third quarter last year and up 15 from the end of last quarter.
He believed that third quarter represents a turning point for the business.
We have worked through the strategic customer decisions made in 2018 as shown in our year over year and sequential revenue gain.
We are seeing momentum on multiple fronts that will lead to what we believe will be industry, leading revenue growth in the fourth quarter.
The business is more video and Ed services centric than it ever has been NBC. This trend continue to grow.
We have positioned ourselves to take advantage off the continued creation and adoption of OLTP services.
Yes.
Well as the entry of new participants in this into this market.
As these ODP providers this various vendors along with our existing customers. We continue to receive feedback that we are performing as well if not better than any other winner.
Limelight is increasingly being recognized as a high quality and capable partner and not just a low price vendor.
Relationship It up partners is another key component of our CDN expansion and edge compute growth strategies.
We continue to work with Ericsson to expand directly into telecom providers and content provider networks.
This partnership has now gained some renewed traction and is moving into right direction.
Our daughter pop comp is approaching 120.
We're also working on ways to expand our product offering with another partner Newstar to help our customers would beat US protection and then expanding suite of real time security solutions.
Our edge product is growing at a healthy rate and expected to double from prior year amount.
We are experiencing hyper growth supported by strong pipeline with existing and new customers.
Our security solutions are also growing at a very good rate.
Together these two adjacencies with fractional incremental costs and a lot of use of our existing infrastructure are adding to our overall growth rate.
The organic development of these businesses will serve us well for years to come.
With this in mind, we are leaving guidance for our revenue and operating result unchanged.
Menu is expected in the range of $200 million to $210 million.
GAAP loss to be around 10 cents per share and non-GAAP EPS to be around breakeven.
We had when to deploy more capital to support the demand we see in 2020 and on and now expect capex for the year to be approximately $30 million.
Headquarter move impacted our capex and opex for the year.
Our cost of adding a terabyte of capacity is amongst the lowest in the industry and we see more improvements in that arena.
Looking at competitive industry analog our capex is the lowest for the revenue delivered and our profitability far in excess of other companies our size. The business is getting better on multiple fronts and as we projected at the start of the year, we continue to see significant sequential improvement throughout 2019.
Ending at the high node and 2019 is also very promising for a 2020 performance I'm very pleased with the investments we're making.
Leave the deep discount in valuation compared to our industry averages creates a unique opportunity for our shareholders. We're working hard to achieve even higher levels of performance and get closer to a long term goal with that we'll open the call up for your questions operator.
Ladies and gentlemen at this time will begin the question and answer session. If he would like to ask your question. Please press Star then one.
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Our first question today comes from Robert Magic from Raymond James. Please go ahead with your question.
Hey, guys. Congrats on the results this quarter.
Just wanted to ask your question.
About per Gram ability at the analyst day, you highlighted your early progress towards offering a full apiay configuration and program ability can you just give us the latest update where we stand with that initiative.
And perhaps more broadly it would love to hear your pin how important I think those capabilities are to gain share out long term in CDN.
This is Bob let me take the kind of the first part of that so we think.
Providing.
Opportunities for our customers to have access to our data and also give them the ability to manage their traffic.
It is important we started building out.
And improving our suite of a pie.
Earlier this year.
It's one of the major initiatives, we have 420 20.
So were on a path.
To providing what we believe will be best in class.
In terms of extensibility of the network and we believe that for a lot of our customers, that's becoming increasingly more important.
They look for ways to better understand.
Quality and consumer preference.
The more data that we can provide to them to better position they are.
I understand the quality.
And the and the experience that their consumers are having with their product.
And with our service. So we think it's important we're making.
We made a lot of progress this year, but theres more to do and it is one of our top.
Four priorities going into next year.
Appreciate it and just maybe one more from me.
On T.T. can you just walk us through the potential size of the incremental near term opportunity for you. There and then and then maybe just walk us through what's driving your conviction level that you can win that amount of business and hit your Q4 guide.
So look there's only so much capacity that exist in the world.
Obviously, we and our competitors are trying to add more every day.
But as new initiatives come into the market, especially those that have incremental content. So not just shifting people watching.
A.
Hey title on Netflix to a title on somebody else.
That's sort of better for us because Netflix runs their own network and we.
We do not participate in that.
And in most of the others. We do so that is a shift that's good for us but in addition to that the exciting thing is the number of new entrance that are coming to market with new content. So if you look at what what apples doing and others, it's not only.
Shifting from one.
Viewing experience for the other but bringing fresh.
New innovative content to market and so.
We see the trend for that being very healthy.
And we're confident in our ability to participate in delivering.
For a variety of of important customers around the world.
And Robert I would just kind of add right on one hand, I mean that is a lot of capacity in the marketplace, but I think that is very different from quality capacity that is required to deliver video centric solutions and Europe . The choice that we made some time ago to focus our business on video and video center.
Solutions makes that much of a difference today when we get in front of our customers and I really talking about why it's so important for their customer experience to be perfect. Because they've spent a lot of time on content acquisition and customer acquisition comes at a very high premium and.
You really don't want to go ahead and have anything less than perfect. You know delivery capability and so I think there's only a handful of us that can do well, there's others that have capacity, but just having capacity does not equally well for some of the vendors that are looking for quality and so we feel very fortunate that we took the steps that we did some time.
The goal to position us well today and and then you know kind of the next step I mean I.
I know, what we have signed up for right. So even at the low end of our guidance.
Suggesting you know 15% higher.
Revenue sequentially I mean, we're talking about a 35% growth rate year over year numbers that we have not seen in our history right. So we've been five 810% in all of US on me talking about a 35% growth rate, which I think if we deliver and that I'm talking about at the low end up our guidance if I'm looking at analyst numbers I don't think the then.
But he held suggesting those kind of numbers so that happens only one of two with either with taking share in the market.
Right or we are growing faster you you know and as the market is bring they're getting a much larger share of federal and and I think we're giving you. This guidance based on our belief and based on the early conversations we're having and based on the predictions were seeing that we should be able to deliver these results.
Appreciate it thanks, a lot of the color.
Thanks.
Our next question comes from Lee Crowl from B. Riley FBR. Please go with your question.
Hey, great. Thanks for taking my questions and congrats on a well executed corner.
Real quick just on gross margin.
Completely appreciate the.
The commentary around building capacity and then from under utilization.
Related to seasonality, but ahead of a nice ramp.
But could you maybe just talk kind of the gross margin profile of some of the newer products and maybe.
How those either.
Aid in terms of utilization and maybe pricing and how gross margin will be impacted as you have some new.
Edge and another lines of revenue contributing to the topline.
Yeah, I think the that you've seen kind of the worst behind US right. When we reported our gross margin in the fourth quarter end the first quarter in mid high Thirtys I mean that both kind of the low point for the company. Since then when we began to see the opportunity that'd be so I'd be build ahead of it.
And we had capacity and we had network empiric again, all the settlement that we had to do with the network providers. The cost is up you have to build in advance of getting the revenue and you have some underutilized capacity. So we fully expect the base business to steer step up in its gross margins over the coming quarters and again I.
I'd like to look at a business and maybe on the progress we are making but I'm also equally limited in terms of the competitive and logs and saw the profitability profile of the company is much better now that we have at least two public companies our size, which reported results in terms of baby are and I think we will see an uptick in our gross margins and then.
Again.
Suggestions from the analyst community. So just kind of a different trend for a peer group, but there is room over there and then the news adjacency that been talking about whether it is you know the edge services. The video based services. The the margin profile of those businesses is better and I think that helps the overall corporate.
Margin as we move forward the security services business and our partnership with Newstar, the Ericsson related businesses and all the businesses I mean I continue to.
Expect.
Long term improvement in gross margin that should show up on a consistent basis again.
I've said this before not every quarter not perfectly but the trend is intact and I think we should continue to benefit from it.
Got it and then just on Capex.
Trying to understand obviously theres a lot opportunities for you guys. So the incremental bump in 5 million to the 30 million guide is that a pull forward from 2020.
For your comments that you expected to be down or is there kind of summit in additional opportunities you saw and just made the decision to.
Spend the money now as as some of the opportunities come to fruition from customers.
Yes, so there's really three parts the why we believe capex will come down.
Next year versus this year, a despite putting in more capacity a.
We're not doing another corporate headquarter move.
So while we're not saying that I think akamine there last quarter. So there has been 100 million, where we didn't do that.
Well, we did spend.
An amount that sort of in the Fiveish million range. So thats, obviously, when you're only spending 20 or 30, it's pretty significant we're not going to repeat that next years that first thing second thing, yes, we are pulling forward some capacity.
Spend into this year based on what we see happening towards the.
Ended this quarter and into next year.
And then lastly, the cost of us, adding a terabit capacity next year will be much lower than it was.
In the first few quarters. This year for example.
Before we put in that new software enhancement and so the throughput that we're getting from the services dramatically higher. So you need less servers are a bit of capacity purchased and and that's a big piece of Capex. So I think theres several factors there little bit of pull forward a big different.
In the cost of adding a terabit.
And then no obviously not a repeatable headquarter move and we will see some you know ongoing benefits from the investments we make an R&D to continuing to make the infrastructure, we have better and more efficient and pushed more.
And make that more productive and I think capex should go down back to the range that we've suggested it should be in that 10% to 12% of revenue range.
And so thats kind of the goal.
Got it thanks for the insight.
Once again.
Glad to see the momentum back in the business.
Thank you leave thankfully.
Our next question comes from John Carbonneau from Cowen and company. Please you how was your question.
Great. Thanks for taking the questions was the record traffic you saw in the quarter, a fairly broad based or was it more driven by one or two larger customers or events and what do you view as the biggest risks to not hitting at least the low end of 2019 revenue guidance. Thank you.
So in terms of traffic in the quarter the good news.
It is not based on one or two or even three customers traffic accelerating at.
An abnormal rate compared to previous amount it was pretty broad based obviously, we're focused on the largest brands in the world. So most of it came from our top 20 customers, but not.
Got a handful for sure.
And then in terms of.
Looking at guidance.
And what's the risk in that.
Certainly there are things outside of our control about what the last minute decide not April 1st its December Onest store.
Oh or anything else like that or consumer adoption is dramatically lower [noise].
And the estimates that we've been giving.
Hi, good certainly affect that.
But as you can imagine we try to be fairly conservative in our planning of what it would you get to that low end to the guidance. So.
Excuse me is while there is certainly things that.
Our risk factors and risk factors outside of our control, we feel fairly comfortable based on everything we know.
That.
That we can be confident in the in the numbers.
Great. Thank anything.
Kind of platform as a service or infrastructure as a service business. So you know you've got your base business annual run rate to establish pretty much where you're going to be as a baseline. So no changes over there no material Conrad annuities in though you had a noise of all that category and then all the build up that you've seen the business. That's the seasonality of the fourth quarter I mean.
We had been sitting over here mid month in the first bump up the fee that we have to deliver against anyone a lot of the revenue is kind of steady state already in and accounted for.
Thank you good news.
The one risk factor.
That we can control is performance.
And we feel very confident based data we get from customers that are willing to share data with us that we're always in the number one.
Number two slot.
For performance were never end they have five CDN to deal with were never in the four or five we're always in top performing.
CDN depending on location.
And so you know obviously, we feel very good about our ability to manage that risk factor.
Hey, thanks.
Thanks, John .
Next question comes from Rishi Jaluria from D.A. Davidson. Please go ahead with your question.
Okay.
She today.
Hanna.
Hi.
Eric said partnership trending back in line with expectation, maybe even a little better.
Still expected to contribute low single digit 10 million.
Thanks.
Correct correct, Yeah, I mean as you know.
In 2019, they add leadership change that we talked about last quarter.
We've been gaining momentum we're we're feeling good about.
Half that we're on.
But we're still two three quarters behind where we thought we would be.
When we sign that the deal last year at this time, yes.
I mean, maybe announced that lever up to 100 policy it'll be approaching 120, Mark if you recall weve area in the mid eighties.
You know at the end of the year. So does 10 years, the kind of get to 80 Pops in.
Did that help et cetera, and our own buildouts, we're expanding our presence.
Quite rapidly in the marketplace.
Alright, thank you.
Second question could you just talk about the different levers you see for improving operating margins going forward.
Yeah, I think we talked about this quite in detail when we had a analysts day. So I would not much has changed from that about a month ago to today.
They are levers that we have and I would just stepping through to the slides because its detailed and nothing's changed from there, but you know we talk about it at the gross margin level, what we're doing from a capacity utilization standpoint efficiency standpoint attraction of a better revenue streams and more sticky revenue streams down to having leveraging the expense model.
Side, and then more effectiveness on the R&D side.
More steel generation and better productivity and all the word that Tom is doing in terms of his team and then on all the way downstream.
I think thats.
That's pretty much the case that we've laid out.
And we are executing against it.
Thank you.
Alright. Thank you once again, if he would like to ask a question. Please press Star then one to enjoy yourself from the question King You May press star and too.
Our next question comes from Jeff Van Rhee from Craig Hallum Capital Group. Please go ahead with your question.
Hey, guys, it's pretty on for Jeff.
So a couple from me starting out.
In terms of Ericsson 10 cents Ericsson I know.
You just said probably give you a couple million this year.
Is it lining up to probably do the original seven to 9 million that full seven to nine next year that you. Originally thought was going to come in 19, and then on 10 cents I think last quarter you guys. It it just become revenue generating.
What what do you think that will contribute this year and also potentially next year.
So I think Moody's me, here's what I don't want to do right because I think setting ourselves up for that was a huge disappointment for us and it's a lesson learned let's not do that again, so I don't want to kind of break it down what I would tell you is that first the Ericsson small single digit million is the full year number not in fourth quarter so be it.
You know it is a growing number for us we expected to do well, we're trying very hard to get the business back on track and to get catch up on the last time. So there's momentum in the business. It is getting better, but ericsson and it's going to be the same for the other opportunities that we talked about we give guidance. What 2020 later on this quarter and when we do we.
Talk about what the basis is for that but I really don't want to jump ahead and start talking about by for getting all of that I'm. One of these are those as much as we can and if more shows up we'll be happy to report it.
Yeah Fair enough and then circling back around to the.
20%, increasing traffic sequentially needs. It was broad based wasn't a handful customers that's driving that is that more so just overall.
In the quarter was it more so overall just industry increases in traffic or you guys gaining more share within customers.
But I think it's probably more to do with us gaining share based on you know numbers that are out. There for example, I just recently read a report that Cisco put out that has the internet traffic growing at 26% per year, and so obviously on a quarter to quarter basis.
Less than that and so 20% quarter to quarter, certainly far exceeds that so I think the good news is were associated with a group of customers that are.
Very successful in terms of what they do so they.
The pie might be growing faster than the.
Internet traffic overall, I think thats highly likely but I also think we're getting a bigger piece of that pie.
As customers get more sophisticated in better understand the quality of delivery I think the better the data they have the more we win.
Got it thanks.
Yeah.
And ladies and gentlemen at this point is showing no additional questions I'd like to turn the conference call back over to management for any closing remarks.
Thank you very much alright, well you know I mean before I close I just want to say, yes. Thank you to all the shareholders I think you've been patient I think we feel very good about baby, our and about the second half that.
We are in and and with that I'd also just let you know if you want to schedule a visit just color write us.
It will be back on the road.
As always thank you again, then be are available to answer any additional questions. After the call and with that it will conclude the call. Thank you. Thanks.
Ladies and gentlemen that does conclude today's conference call. What do you. Thank you for joining you may now disconnect your lines.
Yeah.