Q3 2019 Earnings Call
Good day, ladies and gentlemen, thank you for standing by and welcome to the ATM Research third quarter 2019 earnings Conference call. At this time, all participants I listen only mode. Later, we will conduct a question answer session and instructions will follow.
I think that might do according to based upon you have any objections you may disconnect at this time.
Now I'll turn the call a bunch of is it Gary Dvorchak, making baby back to business utilization seaboard check.
Good morning, everyone. Thank you for joining us on today's call to discuss third quarter 2019 result, we released results. After the U.S. market close yesterday. The releases are available on our website as well as from Newswire services.
There's also supplemental slide deck.
That's true portion of our website, we will reference during our prepared remarks.
On the call with me today are Dr., David Wong Ms., Lisa Palmer and Martin forget the.
Before we continue please turn to slide to let me remind you that remarks made during this call may include predictions estimates or other forward looking information.
Other information that might be considered forward looking.
Forward looking statements represent easy EMS current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results could differ materially. Those risks are described under risk factors and elsewhere and he seems filings with Securities Exchange Commission.
Please undue reliance on these forward looking statements, which reflect it seems opinions only as a as of the date of this call you see I was not obliged to update you on any revisions to these.
Certain of the financial results that we provide them. It's called me on a non-GAAP basis, which excludes stock based compensation you should refer to our press release for our GAAP results and reconciliations between GAAP and non-GAAP amounts that let me now turn the call overjoyed CEO , David Wong will begin with slightly.
Gary and welcome everyone to todays call.
Our third quarter results Mark Mark another quarter of a great financial result, new products, the bottom line and a CPG the progress we deliver record revenue right. The shipments strong bottom line growth and a week's dropping off balance sheet.
This result, Madison, all put all that you spend being caught up a hotel.
Our ability to scale production.
We remain focused on mission to become a major supplier.
Similar to the semiconductor industry.
Revenue growth of 33 million up 44% all customer push off to deliver a high volume Coors, Yeah third quarter as these scare the oh production capacity with some key diverse accelerated from the fourth quarters.
Humans were 43 million, 33% year over year.
Include first cool for new products to existing customer and also suffer five caught up to our eurs.
Fifth major customer.
Like emerging China based DRAM producer, we back or is this the first tool to translate into revenue upon acceptance your future quarters.
The more importantly driver growth as the moving into production.
We ended the quarter with a 47 minimum cash up from 27 million last quarter, we took the opportunity to build off balance sheet to better align with all copper either mission.
We are pleased with our newest capital lease, which has put US no strong positions to support our growth plans. This cash balance does not include the stock market in private equity investments, which we have chosen to segregate holding your reserve.
That's into recent customer activity.
In fact, all the GP badlands crude.
Let's turn to slide four.
First one PC.
Walking Coalco support one P. C D man production ramp you want.
Not sure I'm going to predict that once you see what ramp because the multi wafer production from 6000 20000 who's on Monday.
And to 50000 or more in 21.
We believe well once you Didnt lager single wafer what it could mean supplier imports I being deployed no significant a number of a convenient stuff and we anticipate and keep it picks strong demand. So once you see in accordance ahead.
Second the body.
Also known as <unk> H L M a C.
It is a part of that wall group, a leading of all the foundry in China quality is a early for me those stage of the meat multiyear capacity expansion.
One of our key strategic customer with a production near all Shanghai headquarters.
Bodies, adding capacity penetrating age known and he's a complete Pete.
Build out of a new fabby Wishy, we're participating there both projects.
They scare capacity and deploying all tools in their production.
We also have a number of a first brought them on system at a body for newer product offerings.
Next we'll add all fit from and a customer.
China based entrance to the DRAM industry.
In July this new customer plays the purchase order for Sapphire first tool. We believe the tool in Q3, these slack off for a compelling value.
Proposition yield improvements and the Saudi Pega all these older map.
The DRAM customer in the early stage of their multi year production plan that we feel well position to participate as is scary in 2020 and appeal.
Let's turn to slide five.
We see great growth opportunity with our new product products. Let me just thought it was a update I'll also see Paul.
Technical trial.
Our progress being well, our leading customer for toggle at the moment is the first two or into the production environment initial reports come from that how it delivers the same continued performance of competitors high temperature sulphuric acid Z wave, a cleaner, but with a much less consumption.
Oh, so forgot that.
We anticipate customer acceptance and their revenue recognition from paho in coming quarters, we remain confident.
Covenant that Pablo tool will become a mainstream product.
That fault.
Current or future environment autonomy.
By customers.
For people, we continue with all the vitamin work.
This quarter, we made a great. How can you progress for me the customer requirements for the combined the removal of a bigger and more bodyguard three D. A pattern structure, we thought of that made you.
As a result, our people tool has been qualify for field production can you just stop with a higher are probably going to be more efficiency without damaging.
We expect a good order for people in 2020.
Let's now turn to slide six.
[noise], we delivered to your CB eight detour during the third quarter two one of a major all major packaging customers.
The outreach they'd be a pea.
Backend semi tool used for applying copper P nickel wafers at that level people packaging.
<unk> did you ever more uniform manto layer and a large area by incorporating our proprietary technologies.
Uniformity of the critical you hit the liver fat or yield and a greater pretty efficiency.
You are being deployed not only bunking, but also you find out 2.5 be three D. The portal and all the three d. alone packaging applications.
All of our product SAP Pobl pothole people that you see Pete.
The same philosophy.
The other folks.
Britney Newtek I wanted you to solve the problems a major semiconductor manufacturers.
This product and all financial results demonstrate HCM capability to address production, China, India, and the more they won't know and a complex architectures.
Now, let's turn to several strategic development.
To spot we pre we've previously with the reception of our falloff equal to offer offering we intend to using their capital.
Primarily from a business outside of China.
Paul CPG M-.
Industry analysts predict China would be comp <unk> represent over a quarter or you've got your spending at 2020.
Making China the top spending country ahead of a south Korea.
Japan and North America.
In Queens effort to address some non China market with the adds additional of a senior ourselves.
Manager in North America Southeast Asia.
Also plan to run our marketing efforts all sub China, beginning this quarter.
We're also making.
Steady progress with our Shanghai spot market listing.
We are encouraged by performance of the first batch of 34 IPO on that spot market.
Even with a.
Volatility the valuations remain quite a favorable with steel talking to our this deal HCM Shanghai shares in a second to hop on next year.
Finally update all longer term production plan.
As we said Oh lots to cool.
We are moving forward with a plan for a long term production capacity.
Well you know later stage negotiation with the shock I'm in a 34 agreement to purchase the land for new factory and R&D centers.
To conclude.
I remain positive on the opportunity is ahead of us.
And all our ability to participate in a build out of a next generation fab for years MACOM.
We expect to win new customer around the world as industrial progress to more than <unk>, no three dimensional architecture and the three d. other loan packages.
I'd like to thank all customers partners and the shareholders for their continued support and confidence the AC and research.
I, especially want to thank our employees for their hard work dedication.
I'll now turn the call over the visa who will discuss the financial result in more detail.
Thank you there and the good day everyone.
I will review financial highlights and then turn it back to David to discuss our outlook.
Oh seekers off with a third quarter and all comparisons against the same period last year unless I state otherwise.
As a reminder, the non-GAAP financial results exclude stock based compensation.
Hey, constellation album, non-GAAP financial results to the most directly comparable GAAP financial results. Please see the last night, earning release, we can find the posted in the Investor Relations section of <unk> Web site.
Reconciliations are also including a exit two of the current report on form 8-K that away filed with the ITC.
Please go to slide eight where we're starting with revenue.
Revenue was 33 point.
So meaning up 44%.
Both wasn't driven by solid demand flawless single wafer cleaning claimant and our new GCP copper plating to swap that the packaging.
Total shipments well 43, meaning.
Compared to 32, meaning in the year ago quarter under 33 mean last quarter. The significant increase in shipments were driven by demand for repeaters and the first two deliveries.
GAAP gross margin was a 48.6%.
This compares to 44.4% a year ago under 45.3% in the June quarter.
non-GAAP gross margin was 49.1% compared to 44.5% a year ago.
Gross margin was above our normal expectation levels, 40% to 45% due to a favorable product mix during the quarter. We expect gross margin to continue to vary on quarterly basis due to product mix and the manufacturing utilization.
GAAP operating expenses was 9.2 meeting up 34% from a same period last year non-GAAP operating expenses was 7.8 meeting up from 6.5, meaning in the same period last year, and they're largely flat quarter over quarter.
Year over year growth in operating expense was driven primarily by R&D and the sales and marketing expenses.
GAAP operating income was a seven meaning compared to 3.4, meaning in the third quarter of 2018 operating margin was 21% [noise].
Compared to 14 point sentiment than in the same quarter last year, and a 16.1% last quarter non-GAAP operating income was 80.6, meaning versus 3.8, meaning a year ago, our non-GAAP operating margin was 25.7% compared to 60.
0.5 person in the same quarter last year and 18.2% in the last quarter.
Other income was 1.9 mean, mainly due to the Floorings change game I was working capital from a strong dollar versus renminbi in the quarter.
This game with a higher than normal fuel to off 4% decline with the Chinese renminbi versus the dollar during the quarter.
We had a net tax benefit out of their 0.3 meeting in the third quarter.
The tax expense of avail point Fivemillion last year did not benefit of was due impart to a one time and reduction of a tax valuation allowance.
Also below the below the operating line, we have a night income attribute pool to the redeemable non controlling interest all but three.
<unk> 0.3, meaning a corridor.
This line item was added to account for the P.E. investment you know HCM, Shanghai subsidiary, which represented a 4.2% up all the spending shoes off HCM Shanghai.
GAAP net income attributable to eight salmon research was 8.8, meaning compared to 3.9 meeting last year and the 4.3, meaning last quarter.
non-GAAP net income was 10.3, meaning compared to 4.3 meeting last year and the 4.9 meeting last quarter.
Based compensation was up Hoffman 1.6, meaning elevated during the quarter PEM lemery due to the employee stock purchase relate to China IPO.
GAAP net income attributable to eight FEMA research <unk> diluted share was a 45 cents.
Compared to 21 cents year, though period non-GAAP net income per diluted shares was 53 cents compared to 23 cents a year ago period.
The tax allowance reduction and the positive impact to operating from a currency fluctuation reduction is it possible.
Looking sense.
[noise] improvement to our GAAP and non-GAAP net income per diluted.
The shares.
Now I will review the balance sheet.
We ended the quarter three witnessed 47.3 meeting cash and equivalents.
From 27.6 million last quarter, we completed a U.S. equity raised in August which added approximately 23, meaning in Mad primary proceed to the ATM. They were partly offset by a 4.2 meeting.
Back them in the venture capital fund the cash speaker does not including 27, meaning proceeds from the private equity raised related to the star market. We do have a voluntary segregated as a restricted cash.
We ended the quarter with 15.7 meeting in short term borrowing up slightly from 15.1 meeting last quarter.
We ended the quarter with a 43.5 meeting of the inventory finished goods was 18.6 meeting outperformed 13, meaning last quarter.
Cash flow up almost operation was breakeven for the quarter capturing expenditures walk deal 0.5 means I will now turn the call back to David discussed our outlook.
Thank you already involved [noise]. Please go to fly the line.
For two combined team will continue to expect our revenue to be approximately 805 million.
This we present more than 40% and neutral.
Proud of this growth, giving a challenging year for the industry.
As I look at two Tucson, Funky, we play for golf, we plan to provide a formal guidance for the full year 2020 on Max earning call.
To conclude.
Excluding all strategies, the we're up against the meeting in the growth a major new IC fast we're running production will continue to develop and deliver innovative new products. We are confident you know opportunity in China expansion outside of China.
We remain committed to achieve our mission to become a major player in the semiconductor equipment Maucher.
Let's now open the call for any questions that you may have operator. Please go ahead.
Thank you, ladies and gentlemen, and I'll begin to question and answer session and for your questions. Please press star, one and your telephones and retaining to be announced and to catch the request. It is a tower.
Once again for questions Houston, Taiwan.
Telephone Keith.
My first question comes from Tonight, Clean Boston of Needham and company. Please go ahead.
Hi, David Please send mark congratulations on the really strong results out here in the third quarter I guess, David My My first question for you I understand the upside in Q3 was partly due to some acceleration range or pull ins from Q4 into Q3.
But I'm just trying to curious as you look into the fourth quarter and you maintain your annual revenue target of 105 million. It implies revenues in the December quarter down to about 22 million.
Takes that you pulled in tools to the third quarter, I guess I would've thought that that might have freed up some manufacturing slots that you could fill in with with other customers and so that fourth quarter drop seems pretty extreme can you talk about the ability to try and fill in those manufacturing slots that that might deliver.
Some upside to that hundred 5 million dollar target or the 22 million implied.
By your annual guidance and then I got a couple of follow on questions.
Great and I think it go to crashing in the Q3. It does show that wherever they actually were shipping almost 43 minute right total shipments as a very regular height.
Real exercise the power of a manufacturing capability and after the other is good or reichert before I will fall off to a two to be an appeal to such a quantity and the Q4 and there's a shimon like you mentioned, you know where predictor well five.
We didn't run a revenue so we're staffing because either put their loss slot a viable building or whether you have in Q1 did you ever isn't very good time for us too.
Make a moreover, quality control and also was thought to ability to tool you know put some slowdown into their preparation beauty as we are receiving older and for deliver the Q1.
Any other anti war.
Hi, guys. Good answer I wouldn't add anything else Quinn you said you had some follow on questions yeah.
Yeah, I guess looking into the Taco and Tivo.
You valves that are going on it sounds like you're making progress on Bruce both front can you give us some sense today, how many tahu and Tivo tools do you have in the field.
That represent opportunity for Rev rack, and then it sounds like for both tools, you think year in a position to start taking production orders in 2020, how much could talk I wouldn't thibeault contribute to the next years.
I know you haven't given us a formal revenue guide, but but how meaningful could that Rev. Rec and production follow on production orders before Oh Gibault next year.
Okay great.
Okay, Great actually paho, we have a first toward de lever and are generally this year.
So their customer a thought through you know evaluation that rule at this stage.
They're either through the middle stage. However, they do have very initial human data come out as some of the other Moreover, devise a you know data coming soon so I'm I'm sure, we'll see that cause the move you know likely result, and they like our technology and honestly, especially like there were CV you know more than 80%.
In the silver guys. It right. So with that there are such that actually with the customer would definitely I do anticipate there same customer well by repeated over the next year.
And.
Then we then had to validate you know for the toggled tool and we'll consider multiple actually older come from other additional new customer. So now we're approaching customer in China.
For me in Taiwan caused me in the U.S. and there was a concert in Korea.
The reason for that either because we believe paho tool as a sick and even though you Lyman to impact concern me to buy and as a single wafer sales guys. It or you can look in there as people get into their single wafer. So the answer the can enter the huge amount of their.
As has been consumption and William quality is a for a week treatment those assets very difficult and are you know for some country you can put the lender field, but some other country. You can now to do that you have the real do with treatment because somebody loud energy and other cost as without any money I think that's it would be the re.
We'll revolution, a tool and for the customer adapter to real solving their big Patrick you know for the adds to the consumption acid or with to them in.
Regarding the Timo tool and admission in the Oh Newsys too, we do me to progress and for the fungible and something that cannot be ASCO. So far right now because it was during the paddling application process, we wish you'll see it at the table and made a tremendous progress and as he will go you were all with the first cost.
The merger and also if it's funny as a pay that we'd be the order from this existing customer and with this one custom body to debo tool.
I can see definitely more customer interest it right. So that's what we see either or both pago and people add or new shipment and all the revenue revenue for next year.
So we're expecting.
Those kind of activity will add to our plus dollar revenue for next year.
Mark if I might add a few Quinn I appreciate that so on the.
Yes, yes little bit about the demo tools that are out there with customers and so we broke out the finished goods inventory in a little over 18 million that's carried at cost.
Maybe you took a reasonable gross margin on that and work out to about 36 million or revenue. It. It's a range of tools as David said some are.
Additional tools to our existing customer base. Some are actually enter new customers, but you look out to 2020 saps, albeit a big driver.
Of course, its domain business now, but we see good incremental business from tacos, Tivo and DCP products. So I won't give you the full guidance on next quarter's call yes, yes.
Thanks, guys.
Okay on at the one thing here, we do whatever why do you see be front end to up palladium tool or whether the ship. The June this year, having those two or whether you qualify.
Probably me, though next year and well early next year and that we were expecting also revenue contribution or VP the order.
From the existing customer and also poverty in Oklahoma, new customer for the new shipments.
Thanks, Brian maybe next question operator.
Thank you Yes. My next question is funds in line of Apache co of Stifel. Please.
Please go ahead.
Uh huh.
Thank you very much and congrats on the very nice quarter, maybe as a follow up question.
Wings are regarding.
The market environment, you saw some strong.
Shipments and revenues from the existing customer base.
This quarter.
Qualitatively as we looked at 2020, how are you looking at contributions from.
Both.
People in Tahoe as well as the CP too.
Contributors to another growth you is it just going to be a small incremental them up would you see it as a big contributor.
So the growth in 2020 .
Okay, Patrick good question.
Obviously, you know I as I said that we have or Tivo power has being qualified by customer I noticed the first customer.
As I mentioned, we'll go you factor will be the order and the from the same caused <unk> existing customer would qualify dual those tool I'm pretty sure Ob you know a record revenue for next year and by the for any new tool and which you from new customer I mean for their a powerful a table you say P die there will be.
Eventually where Pos there you know delever and their recognize the revenue upon acceptance. So this new customer next year, where is it appeal it most likely well be county, as a shipment nod their recognize revenue as the we expect or.
Not fast so come to the point is 70, either I said to product they'd be or other revenue however, with the more new customer. So maybe the most a bigger revenue come to their you know the year to southern 21, but it was you would do still say you know next year's a I called assuming.
'cause unit shipments.
Mark anything when I think I'd add is I mean, we talk a little bit about some of the industry analysts that are predicting kinda capacity add some of our bigger customers and so.
We.
We're busy yeah, we think we're going to be pretty busy on or production schedules next year with our our second factory and David also pointed out that in his prepared remarks that we're looking at.
Some land for longer term production adds.
For a longer term capacity, so that we feel pretty good about growth from our mainly from our carrying out our current products alone, but we see a pretty good contribution from my time Kibo next year.
Great. That's helpful maybe either from each of our Mark in terms of my follow up question, which is related to those new products.
Usually new products and acceptance from initial customers tend to have lower margins you guys did a great job this quarter due to product mix. What are some of the efforts you can take just kind of softened some of those initial costs.
Pressures that you typically see with new products and new customer acceptance.
Can you walk you want to starter okay.
Obviously, you know there for the first tour, a especially new tool and it is certain would give the incentive for people to at that for new products, new applications and Oh, we call the first through a discount right.
Time as the that through a qualification go young and it will give it a resident pricing you know prove to be real reflect the value of the tool we keep the customer. So again, yes, we have southern pricing in the beginning however, as the customer qualify the dual and they like go through and those will put a more function and more mature.
I called or additional Metro design, and those who are going to Moreover, the resin pricing on the market.
Yeah, I'd just add Patrick you know we're confident in our you know we've talked about 40% to 45% kind of our gross margin model.
Look at the.
The cost and.
The revenue associated with the demo tools that we have out there I'm pretty comfortable at the gross margin of what's out there in the field.
And we think as we ramp up by these new products next year the contribution.
Well within our gross margin model and longer term, the new products should carry a better margin.
Thank you.
Maybe but probably not at a one great Black Knight.
Thanks, Patrick let's say provided.
Thank you next question is on the line of Suji Desilva of Roth Capital. Please go ahead.
Hi, guys I'm. So a couple of things on on Tipo. It seems like it's coming into the revenue line, what can you remind us which nodes or applications Tivo is more suited for versus saps, if there's a differentiation there.
Okay. So all basically Fabs, you know where I tried to can either flat or wafer Ramos find a way for is a major litigation and Tivo is a more can you for the patterned wafer are always a strange structure or a you know V or insight. So a with I said the customer we usually right now they're qualify actually 20.
You know a logical product.
And Oh I should say that other that took allows you we have for depot 70 can be an expandable to the slaughtered geometry.
So where are you know as we go into the different customer and we'll see there's the pick allowed you will get into their small geometry and for the application.
And David other tivo applications from memory as well as certain memory technologies, where people can either there's a lot also patent structure in the memory site right in the memory also have a promote structure they have a lot of a struggle.
In the gay the site and also property and also you know in there.
Passes I too so we do see that a potential for using the table application.
Okay, Great and then the manufacturing side, how many lines, you're not running a fab two and what's the utilization are you how close so you didn't needing that that new land and facility built a.
Demand wise.
Oh, Okay. All our manufacturing the second is second to factory right. It's a pretty busy right now right. You know our this moment I should say there you know and our line spot you can Cody tend to eat I'm Ritchie and assuming Tennessee. So.
So that has a capacity where do we right now.
At this moment you know what they have any manufacture a bunch different tool subs right and also we have or our new product and the manufacture there and also some other you don't product and the which is a where the value right now were manufactured there too. So it's a very busy right now.
Yeah.
Okay, Great and then my last question is are you mentioned, a fifth customer DRAM customer can you update us on the status there perhaps timing of of shipments that customer if you've already started shipping machines there tools there for acceptance.
Uh huh, Okay. The first customer, we're adding now right now what issue for machine and Q Q3 timeline, so machining assembly or even if I know I mean, there the qualification right now. So this is a softer machine and do a with a you know our record or no data for.
Yield improved and also providing much better cleaning performance and wakes backing this the tool would do a lot over the hausman for the for the new customers Yoda side and also you know probably go can you maybe removal performance enhancement.
Okay. Thanks, congratulations to the trunk what everybody.
Thanks, as you think you'll see it.
Thank you. Our next question, it's one that I know Christian Schwab of Craig Hallum Capital. Please go ahead.
Okay, great. Thanks for taking my question great quarter in another great year I was just had one follow up question kind of on why the what Patrick was asking as you guys sit here today, and we're not giving guidance for 2020, but can you give us your.
Your expectations, whether it's new customers and new tools.
Or continued strong spending in particular in China current products that gives you confidence and grow.
In 2020 today.
Okay great.
Okay. Let me put this way of we see our existing company in China are there still keeping their building plan right and that you probably know that there why don't you see can do expansion. There are probably beauty of 50, K. and next year.
And they also we see their free for the cost them in DRAM customer, they're also because patients.
And then you look of there clearly are there have a continue they're building up are there to fab a in a wine and wish you wind up in the Shanghai.
As I said as I'm I see they'll just thought in beauty that unified right now so we'll see that people, it's happened or you know how in their five in the Shanghai also BG.
There as well as part of the highly aside you know as we see their marketed recover and where you will hear something go young you know not another from yet, but we do believe there's something going on next year right for sure and so so we're very for existing customer we see are very positive assign.
70, better this year and then also with our new adding product you know negative measure.
At home and Tivo and also are you see P. Boasting the from and also back an advanced packaging side application. So we do have a new product and we're adding to our revenue stream. So we're expecting another growth year next year and with not just the existing product with also new product. So we're very happy.
And are very excited about the next year and there will be you know very glad that allows the final number in the next or.
Earning call and you know that's probably in a much timeline.
Yeah.
But kind of a different high level on there we felt pretty good I'd say about 40% growth in a in a challenging year for the industry.
We had pretty strong you guys I'll know the DRAM player in the first half of your who is really strong for us and we didn't have much if anything in the second half here and so.
We've got a number of our big customers are kind of still in the early middle stages.
We don't really need.
A big recovery in the DRAM spending to drive good growth. If you look at our new products and where are our early middle stage customers are.
Okay. Thank you for that clarity.
No other questions. Thanks.
Thank you.
Next question is something I have no there of benchmark. Please go ahead.
Okay, Great Mark let me add my congratulations on a quarter high you didn't provide a cash flow statement at least and information I received I'm just curious what the break with a strong results Huber cash flow from operations breakeven.
I just wonder what was going on with.
Oh, yes, thanks, thanks, Mark in them.
Give you a little detail, you'll see more coming out of the 10-Q, but.
The.
We.
I think as we talked about on the call. We had some acceleration into Q3 and so we delivered a lot of product in the quarter.
And so we came out right about cash flow neutral.
From operations looking out into Q4, Oh, you know a lot of it products we delivered in Q3.
We expect good collections and Kasper positive in Q4.
Just was wondering.
Based on.
Your your existing backlog.
Talk a little above margins prior in this call.
Does that represent the.
For those tools and backhaul consistent with the margins have been recently reporting you did say, we're coming to you seen higher margins on new products I'm, just wondering about the margin profile in the backlog.
You are asking about the the.
That.
The finished goods inventory no we're very comfortable at the margin profile of those yeah. We have noted that you have specific price is tied to those so we know what.
With that but the prices for those and then we're comfortable at the margin profile of those.
Thank you.
Thank you once again for those who wish to ask a question. Please press star one I guess telephones and wait three needs opinions.
So the request.
Yes.
[noise] wants to answer questions. He says Taiwan via telephone keypad.
[noise] [noise] once again for those who must ask a question these past Taiwan.
I think were good operator, maybe we'll wrap it up go ahead.
If you want to wrap it up.
Okay.
Yes.
Thank you operator, thank you all corporate participating on today's call and the for your support before we close Garry is going to mention some upcoming investor relations events Gary piece.
Thanks, David.
Next Tuesday November 12, we'll be attending the PTAB, Daniel Craig Hallum Elfa Select conference in New York City on the next day, the 13th will be at the Roth capital, New Industrials and Technology day, which is also in New York City.
Finally on December four we'll be hosting meetings with the benchmark discovery one on one conference in New York.
Tenants at all of those conferences is by invitation only so please contact your respective sales representatives. If you want to attend or you want to schedule. One on one meetings with us. Thank you. All again. This concludes the call and you may now disconnect.
Yes, Thank you ladies and gentlemen at this conference call for today and thank you for participating.
All disconnect.