Q3 2019 Earnings Call
Welcome to the PDF solutions Inc. conference call to discuss the financial results for the third quarter and Monday September Thirtyth 2019 at this time all participants are in listen only mode. Later, we'll conduct a question and answer session for which instructions will be given at that time.
Since joining the conference. Please press Star then deal all your Touchtone telephone.
A reminder, this conference is being recorded if you have not yet received a copy of the corresponding press release has been posted to Pds website at www Dot PDF dotcom.
I want to stay Miss I will be made in the course of this conference are forward looking within the meaning of the private Securities Litigation Reform Act of 1995, including statements regarding Pds future financial results and performance growth rates and demand for it solutions.
Pds actual results could differ materially you should refer to the section entitled risk factors on Pts.
Oh Form 10-K for the fiscal year ended December 31st 2018, and similar disclosures and subsequent you see filings.
Forward looking statements that risque. During this conference call are based on information available to PDF today.
PDF assumes no obligation to update them now I'd like to introduce John Kibarian, Pds, President and Chief Executive Officer, and Christine Russell Pds, Chief Financial Officer Mr. Coperion. Please go ahead.
Thank you and welcome everyone. If you've not already seen our earnings press release I Remember report presentation for the third quarter. Please go to be investors section of our website, where each has been posted.
Our results from a third quarter showed continued progress towards our objective to be the provider of choice for enter and analytics manufacturing controls so the semiconductor electronics industry.
Our results revealed the ongoing evolution from being important to what customers in ramping leading edge logic nodes to being even more valuable for controlling quality reliability yield an operational effectiveness across the lifetime of semiconductor production.
Our business is no driven by analytics and we have over 130 customers that make everything from leading edge logic to high voltage discrete mixed signal memory and system.
The emphasis on analytics has grown our available market and will create a more predictable results from PDF.
With more than 50% of total revenue in the third quarter coming from analytics based deals and another strong bookings quarter, primarily for L. exposed products PDF solutions continues its strategic evolution to be the provider of choice for end to end analytics and manufactured <unk> manufacturing controls the semiconductor and electronics industry.
Well the customers an analyst that attended our combined expense your user conference in 2019 analyst day apocryphal the evolution was clear.
We are professionals from over 50 companies a tough.
And 11 papers presented by our customers.
We also presented or perspective.
Dynamics and all public development roadmap to meet our customers growing from <unk>.
Or do you are users presentations she'll devalued and analytics the benefit of people, that's exensio platform architecture, and the operational efficiencies and productivity gains achieved replacing manufacturing Ford auto by deploying exensio.
We characterize the body, we bring to the industry asked for site.
That is beyond monitoring what is happening and production expense you enables users to convert this growing data into usually predictions to prevent fabrication problem.
We are uniquely able to do this because our integrated measurement tools database and analytic software spend a whole supply chain, including wait for manufacturers boundaries Osats idea babble and system houses.
Sofia stores over four petabytes of data for the industry and talks bar directionally with hundreds of different front end tools testers I can somebody tool from virtually every major equipment manufacturer.
Today, except fields conducted to over 24000 phone in tools 8000, testers and 6000 Bakken tools around the world.
This is unrivaled connectivity is critical component to making industrial for industrial aiotv possible and they want integrated circuit manufacturing.
Let me touch on highlights from the third quarter that demonstrate our continued progress.
Oh, the over 80 contracts close in the quarter. The vast majority of for example, the open office.
These include contracts for numerous fabless companies, including companies deploying accent through on the clock.
The public companies include a top 30 company.
The European startup company and existing public company that renewed or except for your licenses.
Oh attention right on renewals is over 97% and a lot of customer I imagine as another example of our strong customer retention.
We also what I'd EMS deploying excess you.
In July I mentioned, we had an idea who use it sounds you analytics across the south who benchmarked, our test capability and decided on using exensio both in the bad in test.
This contract fall into Q3.
As I discussed earlier customers value using a single platform across the enterprise for end to end the analytics.
What do you Miss test business with this customer affirmed our investment in Exensio summit declare for integrating all data types.
Notable other IDN contracts in the quarter include two Exensio I'd I'm deployments, one for memory company and one for top 20 semiconductor company.
We also signed the contract work some feel foundry deployment at a new Asian fab.
To give visibility into suddenly flow and increasingly important part of I see manufacturing, we license exensio single device trace ability to our largest exensio bulbs called customer.
For assembly and packaging operations.
In addition to customers seem to believe using exensio.
I'm sorry. In addition customer sees the value of using Exensio with our unique data such as our characterization vehicles and deify.
Two such contracts include.
10 semiconductor company signed a multimillion dollar plus analytics deal including.
Or scribe line CD, PD thoughts tester and exensio for controlling their production of a more than more node.
Starting the benefits of integrating our unique data.
The rich and Das data, that's got CV can provide makes a sophisticated algorithms and exensio even more effective.
I love them <unk> Global somebody comes accompanied by the multimillion dollar deal for characterization vehicle, which includes CB structures tested with our PD thoughts tester, India by structures tested with our April and of course, except through analytics.
Finally, we continue to help customers interested in our integrated yield ramp during the quarter, a Chinese foundry like a multi million dollar deal for technology development on a death node and we'll deploy <unk> de <unk> 150 system as part of that engagement.
The activity in the quarter demonstrates the benefits of Pds evolution, we have more customer and geographic diversity.
Got it new customers in the U.S. Europe and Asia. This past quarter, we're expanding the number of PDF products in module that existing customers are deploying.
As we showed at analyst day picking up has over 130 customers, who are virtually the who's who I see industry.
Most of them you some module makes sense here, what's the point tool.
As they are starting to deploy accents. He wants a platform they get the benefits of a single source of data.
We showed an analyst meeting the customers that deploy multiple modules.
Of our solution.
The words, a move to platform deployment are able to get much more value from the system and as a result, the annual recurring revenue can go what many times.
In other words going from one to two three or four module.
Can increase our super linearly.
This is like you get this focus on expanding GNC deployments within our existing customer base.
In summary, Pds execution on our plan to be the analytics provider to the cemetery industry is accelerating and it's recognized by our customers.
I do look to the fourth quarter, we anticipate continued success in converting the pilots we start earlier this year.
In particular, we anticipate more pilot call deployments converting to production deployments this quarter.
Our investment in R&D and cloud capacity in the third and fourth quarter has been to prepare for these deployments.
We believe that the fourth quarter will be very similar to the third quarter with continued momentum in our analytics business.
Let me now turn the call number to Christine to review the financial Christine. Thank you John most of you will have seen our financials in our earnings release. In addition, we posted a management report in the Investor Relations section of our website. The report has financials and comments regarding the results of PDF for the quarter.
So I'll focus my comments in a few key areas.
Although the financial results that we provide on this call or on a non-GAAP basis, which excludes stock based compensation amortization of intangibles and one time and restructuring charges. Please refer to our press release for our GAAP results in GAAP to non-GAAP reconciliation.
As a reminder to those of you who were at our analyst day on October 15th or listening via the webcast, starting with our fourth quarter and you're in financial results. We will begin reporting our revenue as analytics and die way our until they get to reporting will comprise our exensio software and Dfive.
Well as subscription base vehicles.
Why our reporting will include our integrated yield ramp offering and the associated with our LTM or gainshare.
We believe this presentation will provide you better insight into our business and the path they had in the coming years.
Well, we're not explicitly reporting along these lines in this third quarter will provide details were available.
Third quarter revenue of 21.9 million was up just under 7% sequentially.
General revenue progress as we anticipated as our model continues to evolve toward analytics.
Revenue, primarily from Exensio software and Dfive, which we will report is analytics revenue going forward grew 6% quarter over quarter.
Analytics continues to exceed 70% of our total solutions revenue.
Our efforts and invest much revolve around driving the growth of analytics. So this revenue performance demonstrates our investments are yielding results.
As it relates to the third quarter revenue from I. why our engagements benefited from closing a large deal and allowed us to recognize over $2 million in revenue on a percentage of completion basis, well continue to be very selective in strategic and generating feature I why our business that can contribute to our top and bottom.
Line resolved.
Gainshare royalties were lower in the quarter compared to Q2 due to lower customer shipments.
As mentioned on previous occasions, Gainshare is lumpy and is depended on the volume shipments of our customers. Although we expect to generate gainshare revenue for a number of years going forward looking ahead to Q4 and beyond our expectation for Gainshare revenue will be a gradual decrease as we focus on our analytics business.
With the analytics revenue now the predominant component of our solutions revenue, we're benefiting from the increasing annual recurring revenue that provides better visibility looking forward.
For the quarter annual recurring revenue accounted for just over 50% of solutions revenue.
Sequentially, a our grew by close to 12% quarter over quarter.
[noise], we've seen a continuous trend in increasing our our as a percent of solutions revenue going back between 14, when it was just 15%.
Another benefit resulting from our analytics offering is that it can be deployed to a broader market than our traditional foundry customer base as more and more systems companies look to design and produce their own chips, we weren't global company, we're not dependent on any one geographic location today, we have significant.
We diversified our customer base with more than 100 different customers accounting for nearly 50% of year to date 2019 revenue.
In 2019 customers, who represent 5% or less of revenue accounted for over 45% of our revenue as contrasted with 20% in 2014.
This attributes somewhat de risks the potential for significant disruption due to geopolitical issues.
Now, let's turn to cost of sales and gross margin non-GAAP gross margins were 64% during the third quarter compared to 52% in the year ago third quarter.
On a dollar basis Q3 gross margins were 14.1 million compared to the same period, a year ago, which was 10.5 million.
non-GAAP cost to sales was 7.8 million compared to 6.9 million in the prior quarter.
The increase in cost was related not only to higher revenue, but the depreciation of the equaled 250, which is located at a major major Asian foundry. This is a first full quarter that the pro 250 wasn't services the customer site.
During the quarter, we further expanded our capability to deliver our services via the cloud and as a result, we experienced higher costs related disease cloud services.
We expect our cloud deployment to continue to grow these factors combined with 20% quarter over quarter lower Gainshare share revenue, which is 100% gross margin resulted in total non-GAAP gross margin for the quarter of 64%.
Recognizing that Gainshare revenue is variable as we continue to build the revenue contribution from software subscription sale, we expect gross margins to expand ultimately we expect to achieve our target margins, which are over 70%.
Now, let's look at operating expenses, which were flattish sequentially at 12.4 million.
R&D expense increased by approximately 900000 quarter over quarter offset by 1.1 million S. T. In a decrease for a net reduction in operating expense of just over $200000.
The additional R&D spend with for new hires and analytics.
Contractor expense and associated depreciation expense as we build out the newest generation if need be machines for de up high.
In addition, as previously mentioned we invested in further development of cloud services for our SAS offerings.
That's DNA benefited from a reduction in Presales expenses as several of our presales projects turned into deals.
Legal fees were also reduced as we successfully address some collections issues.
Going forward, we expect sales and marketing expenses to increase doesn't participate in more industry events and host customers and globally. An example of this investment was the analysts user conference we held in October .
So turning to the bottom line, we posted non-GAAP net profit of one point sixmillion up over 50% from the prior quarter non-GAAP earnings per share in the quarter was five cents.
Sure that standing for the second quarter for Oh Pardon me shares outstanding for Q3 worth 32.4 million, which reflects our share repurchase during the quarter of 161000 shares.
Now, we'll turn our attention to the balance sheet cash at the end of the quarter was 100 point Threemillion, an increase of 13.5 million from the prior quarter and we have no debt our strong balance sheet provides a solid foundation for opportunistically executing acquisitions.
And funding organic growth.
During the quarter, we successfully collected millions of dollars from a significantly done with delinquent customer who we had discussed last quarter. We've made changes to our credit policy that will not permit and outstanding. They are past due amount of this magnitude to build up again, we also continued our stock buyback program and.
Repurchase $2 million of our shares during the quarter, we generated more than 19 million of cash from operations with a notable source as I just mentioned being collections from a significantly pastiche customer.
We also received significant payments from other customers that had been held up due to administrative issues that we resolved.
We expect continued growth in our analytics bookings and expect I why our deals to continue to be lumpy quarter over quarter. So there may be corridors, where the growth in analytics is offset by declines in gainshare revenue from my why are.
That concludes my remarks, and we'll now turn the call over to the operator for any questions operator.
Thank you Mr. Russell.
Ladies and gentlemen, if you have a question at this time. Please press star one on your Touchtone phone.
Are you seeing a speaker phone please with the handset before asking a question.
Please wait one moment for our first question.
Our first question comes from Christian Schwab from Craig Hallum Capital. Your line is now open.
[noise].
Pardon me Christian your line is now fan.
Please check your very fine Yeah, I did sorry about that I was saying congratulations on the large collections.
During the quarter Oh My question has to do with I weigh our deal that you announced in in China I know you.
Got it seemed to be done you a while ago, we're really optimistic for that could be barge and then then we kind of decided we didn't know.
And then wondering if you could give us an update and on the opportunity for anyway are in China as well as if there was a typical gainshare arrangement with that as well.
Yeah.
Great. Thank you for look on question.
We are we have seen continued interest, particularly this last I'd say three or four month of.
Advanced nodes in China, we know the number of foundries being a existing foundries in Newport news with activities in 14 nanometer and below a this was the customer we've had in the past that we've had good a good response with they are completing their previous snowed in or just about getting to volume and other starting the next node.
Oh, the contracts with them in the past that I'd gainshare associated with them. This is a startup contract that we anticipate log to ensure with it as quick as it continues.
We are a pristine sun in her prepared remarks, we're being very careful about oh margin gross margins on the front upfront part of the business.
Because it's still the volumes have been very slow to materialize there and we do believe that we're all over the long term you know on a five year horizon volumes will materialize over short term, it's difficult to say begins your contracts and typically are between five and 10 years in China for us So we anticipate seeing Oh.
Gainshare out of these contracts, it's it's very hard to forecast of them in the short term.
So you know we thought it wants to take a little bit more on the gross margin upfront and manage it that way.
You know it won't we'll look at on a case by case basis. There are a number of foundries being star, though that you know it's questionable the long term viability.
Great thing, how many customers do you have a in China.
Oh Jeez I don't know.
You know, we would have to get back to I'm concerned about this is the there's a handful not a significant.
And then there's you know a number of smaller ones I think overall China.
It is a meaningful part of our revenue on the order of 20%.
Great.
Thank you congratulations on solid quarter no other questions. Thank you.
Thank you I say reminder, ladies and gentlemen, if you have a question. Please press Star then the number one key on your Touchtone telephone.
Our next question is from Gus Richard from Northland. Your line is now fan.
Hi, Thanks for taking the questions.
Just on the placement in the new.
The probe to 50 I was wondering if you give us any updates on your expectation on on getting more those into the market.
Yes, so things goes Oh so.
Well, we adopt this quarter was actually a 150 that we put a shift in Q3 and install and is up and running though we did.
We are preparing to be able to ship a 250, Oh, probably at the end of the teacher or to next year, probably not would be our second to 50 in the field. We have a handful of one fiftys in the field now at this 0.2 or three.
Oh, Okay, and the customer in China, that's taking that to 50 is.
In addition, if you want from that customer no I'm, sorry, <unk>, that's a new customer.
New customer for deify.
Okay got it.
And then.
And then just on the the.
Analytics business.
Yes, do you expect the bookings momentum that you.
Recognized in the.
Third quarter, good sustain itself into the.
Fourth quarter at similar levels.
Oh, yes, we do Uh huh.
No if you listen to Kristine prepared remarks.
The difference between they are rather than you were in analytics in the total revenue now looks a lot of pilots sort of an ongoing where we're doing pest deployments on the cloud we've been getting very positive feedback for the <unk>.
Customers that attended or user conference one of our larger gobbles customers made a presentation of the conclusion of their benchmarks, which are you know for the very large as filed just ingesting data Oh.
On the call. It was 26 ex faster than an on premise deployment with a conventional relational database.
So those pilots all his concluding quite nicely and we anticipate.
Continued a conversion go lives in the fourth quarter out into Q1, and there's new pilots starting up as a continual flow of them.
Got it okay. That's it for me thank you.
Thank you. Our next question is from Tom definitely from D.A. Davidson. Your line is now open.
Yes. Good afternoon. The question on the 250, if a customer was two older system, how long what does your manufacturing lead time, how long would it take for you to shifted installed a tool the facility.
Yes, Hum, it's a it's probably variable right now because we have oh two it all up.
For the really development and we're assembling a fourth one.
Which you know we expect to be finished at the under this year beginning in next year. Once we're all about one done it takes a number of months.
Even though we have a note we have the parts for additional machine for some of the apart when you get out beyond that numbers on it actually starts picking upwards of a year.
So it's somewhere in the short term, it's not a big deal in the medium term as a bigger deal, but just like earlier. This year, we ordered some parts long lead items to manage the down you know we tried to manage our risk reward by judiciously ordering long lead items to balance the upside versus our cash outlay.
Okay do customers you'd be fairly good visibility into the timing of Ah you projected orders.
Really.
To some extent, yet, but I mean, I think that's still something that's an evolving thing for us I wouldn't say, it's great at this point, we're still working on that.
Okay.
And then looking to do the old.
Historical Gainshare business.
Yes is the tail for the 40 nanometer work that you've done a few years ago.
Have you seen any do activity with existing customers working on older nodes different flavor.
Yes, so that's what I'm looking for questions. It's a couple of part question. So first part as we have 14 nanometer contracts that end in the next couple of years than we had one could go out into the remainder of this decade, so I'm not really over the next decade or 20 twenties I'm you know all through 2029.
So there's a variety of them and particularly as you go out into the mid Twentys most of the them, leaving us contracts that are left will be primarily in China.
Oh for the more than more notes Ah that's really one of the ones of the contracts I described this quarter, which was the squad vehicle the tester and exensio for controlling or more than more technology. That's really been taking the C. B technology and converting it to a subscription because of the tougher wants to do.
Yeah. So every wafer with the sky capability and make a control you know what anymore materials review Board control decision on the fly so that's really leveraging the real time capabilities exensio, but extremely hot sauce testing capability of the CVR test vehicle on the tester. So you know.
For our customers that are existing had been longtime customers that are interested in using our vehicles from technologies that are already in production. We've moved from the time to volume to access to the data model I think.
And our analyst day, Christy not a chart on not just saying I'm, calling trying to volume to selling access to data and that contract that we filed last quarter was an example of that you actually had a user conference a couple of customers. We showed the benefit of these in combination of vehicles and.
Exensio on what they want to do from a production control standpoint. It was obviously more more traction that way, but that's showing up in or analytics line.
Okay, and then so even if I read your comments, but.
That's the mid Twentys, China because of the bigger portion is immediate a fairly good streak of gainshare through the mid Twentys.
Yeah I'd say.
It's always difficult for us to forecast out over the next couple of years, we feel pretty good about to ensure you know as you start getting out into the like 2020 to 2023 2024 timeframe you got to start believing in China.
At some point.
You know and and like I said were not Krishna. If the question. We do really believed that our Chinese customers will go to volume, but the geopolitical world is quite a choppy and it's difficult to see how that really you know what really happens in the long term when does Africa.
Okay, and then finally have you seen any or heavy conversation that might restrict what you can do provide to your Chinese customers.
None whatsoever.
Okay. So the technology that you provide he's not considered.
Yes.
Most I mean, the biggest issue.
Sabal system companies from really a U.S. government standpoint, but our exensio product has developed outside the United States and not subject to U.S. export restrictions.
We have a you know what's developed here in the states or probably about 10 states is our electrical test capability and our defined machines and those are primarily provided to foundries for which none of them doesn't put on a restriction lift for us yet.
Okay, great. That's good to hear thank you very much.
Thank you. Our next question, Sean John 10, when Tang from C.J.S. Securities. Your line is now fan.
Hey, guys congrats on the a great cash performance.
How much of these solutions.
How much of the solutions revenue in the quarter was.
Catch up recognition from the Cline doing it dispute with collecting the cash from.
No.
I was just the cash balance sheet. It was only cash okay great.
Okay and then.
Can you I'm John do you clarify what you said your outlook for Q4, you said it look pretty similar what was that referring to the total.
You know just revenue and profitability or are we talking just about analytics solutions, which portion determine when I look were bought it was just overall bookings expected sold at a level to continue into Q4 in terms of how you convert a bookings into revenue. There's always many pieces. The that's I guess kind of above my pay grade and that's the fund.
You know, but from a booking standpoint, I, usually can comment on the customer activity interesting comments on the.
Revenue and profit from a bookings I too, but I think we see it remained quite strong I suspect that means you know a small improvements in the overall solution and the overall analytic something you. When you look at Gainshare, It's always choppier to understand how that's going to progress quarter.
Yeah, and what I will add to that is that as you saw at our webcast for the analyst day, well the analytics revenue is increasing sometimes that increase can be masks are hidden by the decline in the I why our business. So I think.
Ill John's comments, our overall for a.
Quarter with similar booking a kind of similar everything so just little bit more color on that John . So if you look at Q3 over Q2 Q2 at a 7 million dollar Gainshare quarter Q3, I think with five seven or something like that yet we still grew the overall revenue in spite of that headwind right.
Partly because of the Sterling I analytics business, we expect strong analytics. This is again this year this coming quarter. No of course, we you know we have less isn't going up against your works out.
Okay fair enough.
And thank you for the color.
John can you comment on the and this is just announced today, so maybe a bit early but the new semiconductor investment fund in China, and kind of how does that flow through to you. The first time around I know you saw a benefit most of it in and your solutions business could something similar happen to again and I would actually show up in your either gainshare or solutions or analytics.
While our this time around.
Yes. So it's got that's a great went to bring out yet we are familiar with the second funding. We do believe that will improve overall the someone's activity in China. As a result, we expect to participate in it again, it's focused on manufacturing and we have a lot you know we've seen already a lot of discussions with newer companies.
That are being started that are creating a new.
Foundry type businesses, and we expect that's going to create an opportunity for US. We also this past week on the 20 Eightth had a user conference in Shanghai.
Where we had over 100 users from 50 companies, the Todd and we announced Exensio on the cloud primarily using all the cloud.
Oh for very long tail, if all those customers right today.
Yeah, we talk to the somewhere between 1500 6000 doubles entities. We don't believe the Big fund so much AIDS those companies are getting money from other places not so much the big fun, but could be funded creating an ecosystem of manufacturing and test and assembly in China that those companies are going to enjoy and.
We had tremendous response to dot.
Conference.
Not quite as large as our conference in San Jose with Oncologists instead as they pulled from around the world that was meaningfully close.
And just one city.
And so we have a number of activities going on a work, including a freemium version of Exensio on the cloud for the very small as customers to capture that long tail. If all those entities and we think that also supports over the over a longer period, our foundry customers there in China.
We think the largest challenge for our foundry customers after building and bring up technology is really working out the.
Kind of the hiccups between the focus product and the technology yielding.
There we think PDF is quite helpful for that as we've seen in many places and also can be helpful. And then even just marketing their capability to their customers.
Okay, great that that was really helpful final one from me Christine just steep.
Mentioned interest expense isn't a John maybe I think you touched on this too for.
You know doing events like that and the tend to conference here in the states.
How should we model that in terms of what that was actually cost you and you know said there are companies that do you know annual conferences and they're pretty predictable I'm just wondering how we should trigger I mean, how many of these you're doing how much that'll increase your marketing expense line.
Yeah, I think you should figured that we will be increasing a SGN a certainly by several hundreds of thousand dollars in future quarters, as we deploy our marketing events as we reach out to technical conferences.
White papers, so we have a full press marketing presence now.
Okay and is that from the run rate in Q3 or should we be using.
Some other base ticket <unk> that would be from the run rate in Q3, Okay got it. Thank you.
Thank you Sir our next question from Gus Richard from Northland. Your line is now open.
And John just after the first part of it let me ask the second part of it and and thinking about R&D expenses moving forward at a pretty big step up sequentially should we be thinking about that.
Running flat or.
Sequentially and you know just any color for next year would be helpful.
Yeah. Since we do have the expenses in R&D in Q3 for the Amazon Web services and for other analytics related hires I think you should think about that going forward as kind of flattish.
Okay. Okay.
And for for next year sort of a similar year on year increase maybe in dollar terms.
Versus 19 over 18.
Yeah, I think we're working on our 2020 models to get out to Q4 will probably communicate a little bit more about thought if you just look at overall.
2019 versus 2018, we actually took spending down but we did increase on line items, we increased the R&D right line item and we increased the yesterday light on we took down cost of sales quite a bit we're going to go through an replay on all of this.
And then I think if we get through this quarter you know our strategy meeting is always in December with our board our operating plenty meeting as you know really basically happening over the next.
Six weeks, what do you have a lot more thoughtful and giving you folks guidance as we get out through this year than right now for sure definitely items are gonna go up at some things are going to come down and you know.
As you know about us, we're very mindful about our costs.
Got it thank you so much.
Thank you at this time I'm showing no further questions I would like to turn the call back over to Mr. Barry in for closing remarks.
Thank you everyone for joining us on this call we look forward to talking with your good.
Hi.
Ladies and gentlemen, this concludes the program. Thank you for joining us today.