Q4 2019 Earnings Call
We expect retail apparel overall including the performance segment to lead endpoint. I see volume growth in 2020. We believe the retail apparel Market was only roughly 15% off it in 2019. So there is plenty of room for growth. We also expect a new impinge m700. I see family to be a key driver of that growth with retailers excited about the M7 off cuz it enables the highest-performing smallest worldwide tuned in legs with fast inventory and exceptional readability. It also includes protect. It also introduces protected mode and any pins Innovation enabling new opportunities for loss prevention with automated self-checkout and seamless product returns.
Fourth quarter year-over-year systems Revenue growth was healthy with strength in both readers and gateways. We continue to win and Retail tracking items at Back Store front door Transitions and at Long Island store exits and in the supply chain there for verifying shipments moving through. Doors.
Full-year systems Revenue deliver the strongest growth rate in the past five years with double-digit reader and triple-digit Gateway Revenue growth partially offset by a decline and reader off while our reader I see business face difficult comparisons to a very strong 2018 the underlying market dynamics remain healthy and we continue investing in this important business.
Overall, I am pleased with attraction our systems business delivered in 2019 and 2020. We will continue investing in our platform and customer adoption and linking silicon office locations.
In February, we announced our next Generation fixed reader the impinge r700 designed for enterprise-grade rain deployments based on a rich Heritage of innovation 8700 delivers industry-leading performance with the best wireless sensitivity fastest network connectivity powerful Edge processing and intelligent on reader algorithms that Simple Solutions development.
We are currently shipping.
R700 readers in limited quantities for North American deployments as we execute our production ramped.
We anticipate worldwide Regional support by third-quarter twenty-twenty. Well, we are excited by the advancements the r700 delivers. We will continue offering our Speedway readers with the are 7 a.m. Us to execute a tiered selling strategy.
For applications that require the r700 advancements we offer our customers a smooth transition from Speedway to the r700 Via backward-compatible apis and programming environments. Although we have modest 20/20 Revenue expectations for the r700. We expect the r700 to meet increasing and user demands for Enterprise enterprise-grade security performance reliability and product longevity the r700 exemplifies our commitment to innovating across our platform.
Expanding all that Innovation theme in 2020. We will increase our research and development spend in absolute dollars focusing on growing our engineering team accelerating our product advancements strengthening our platform linkages and driving our growth
We will also.
Best and operations focusing on Roi driven Capital Investments That shorten our end on I see way for post-processing flow to improve inventory turns increase operations responsiveness and broaden our Geographic and partner diversity.
These R&D and operations Investments are focused on growing and scaling our company to win the gigantic opportunity in front of us.
Turning to the market in January. We exhibited at the national retail Federation trade show in New York City in my view. This year's and RF was our best life.
He take away from the show was how retailers are extending their reign deployments from hand from handheld inventory accounting which has driven retail apparel tagging to now include Back Store to front door transition consumer self-checkout and monitoring store exits. Also, fourteen Partners featured our products in their boots.
disco shirt and pant
X-ray Gateway in their grape to Glass demonstration tracking a wine bottle from Vineyard to consumer.
Lexmark showed a printer that both printed and encoded shipping and return labels with our Monza are six and I see embedded in the label.
These use cases highlighted the power of the applications than a pinch Partners can build using our platform.
And now we're both we showed to m700 protected mode use cases the first focused on loss prevention with frictionless self-checkout and the second on loss prevention with seamless product returns.
A retailer seeing our demonstrations suggested a third using protected mode to inhibit fraudulent returns, which is a use case. We had not anticipated.
Reflecting on that interaction as well as other partner and customer conversations with struck by the breadth and depth of solutions are partners are delivering the rapid Pace off. The rain has become a mainstream and essential retail technology and the scope of use cases that retailers Envision using the impinge platform off times surpassing our own imagination.
On the organizational side. We recently announced that Eric brodersen our president and CEO will step down on March 6th.
I would like to extend my sincerest heartfelt gratitude to Eric for his tireless commitment over the past five years.
Eric help grow and change into a far stronger organization with the most talented and capable leadership team in our history.
Eric thank you for all that you have done for and pinch.
We also introduced our new CFO Carrie Baker who joined us on February 17th. Kerry brings a keen strategic. I strong financial Acumen and a wealth of experience in Motion Industries that will serve and pinch. Well as we grow and scale I am excited for you to meet him during our upcoming conferences and roadshows.
Turning to coronavirus the safety and well-being of our team partners customers and suppliers is is and remains our top priority. The virus is a fact on our business has been modest to date with us adjusting our operations to compensate for macro trends that include extended holidays and furloughs which have impacted product availability on a customer workflows the impact on the 700 has been larger with coronavirus contributing to more than a month delay in our production ramped as our inlay Partners understandable. All right, prioritize producing existing products over a new product over a new product ramp.
Regardless we still anticipate transitioning from production ramped.
Volume production and to be begin and to begin fulfilling volume production orders from multiple in life Partners late in the second quarter.
We also still expect the m700 to positively impact our business in 2020.
Looking forward we anticipate coronavirus will impact sales of our end point ICS worldwide and may impact our system sales that ladder at least in China and perhaps in other countries wage. Well, we continue to Monitor and adapt to the situation as it unfolds confident in our Market position and balance sheet with our thoughts and hearts turning to those who are impacted across the world and to whom we wish a speedy recovery.
In closing 2019 was a fantastic year as it pins delivered a string of record Revenue quarters and laid the groundwork to deliver production volumes of new industry-leading products in 2020. I would like to thank the entire impinge team for their efforts this past year and as always and driving our bold Vision with a record year behind us mom steady execution. I remain confident in our Market position and energized by the opportunities ahead.
I will now.
Turn the call over to carry for our detailed financial review and fourth-quarter Outlook Gary. Thank you Chris. First I want to say how incredibly excited I am to be in a Binger. I believe and pinches opportunity is massive and the value we can deliver by linking silicon to the cloud is game-changing. We are also uniquely positioned with a comprehensive platform strong Market position with a truly Innovative culture. Perhaps most importantly what I see that separates and pins from other companies is our people I am thrilled to have joined such a superb team second. My phone number is growing and scaling the company to win this massive opportunity and deliver shareholder value. I will have more to say on this ladder topic after I spend time learning from our end customers Partners supplier and team members.
Turning to our results 4th quarter. Revenue was 40.8 Million up slightly quarter-over-quarter and up 17.9% year-over-year fourth quarter and I see I knew was 25.7 Million declining 2.4% sequentially and growing 17.9% year-over-year compared with twenty six point four million in third-quarter 2019 and 21.8 million in fourth quarter, 2018. You're over a year Revenue growth accelerated a strong result given the difficult growth rate comparison to the prior-year.
Systems Revenue was 15.1 million growing 4.8% compared with fourteen point four million in third-quarter 2019 driven by strength and reader Revenue partial offset by declines in Gateway and reader I see Revenue.
On a year-over-year basis systems Revenue increased 18% compared with 12.8 million in fourth quarter 2018 let Again by the large North American systems project as well as by strong reader Revenue partially offset by a decline in reader, I see Revenue.
2019 Revenue was 152.8 Million growing 24.6% year-over-year compared with a hundred and twenty two point six million in 2018 endpoint. I see Revenue grew 14.9% year-over-year driven primarily by strength in the retail segment including performance apparel and Footwear and Vallarta 2018 Channel inventory correction 2019 systems Revenue grew 46.5% year-over-year with strength and Gateway and reader Revenue partially offset by deadlines and reader I see Revenue the North American project represented 14% of our total 2019 Revenue.
Gross margin was 50.6% compared with 50.2% last quarter and 49% a year ago full year 2019 gross margin was 50.5% compared with 49.5% in 2018. The improvements in gross margin were primarily due to mix including Gateway sales into the North American project and underneath product margins total fourth quarter operating expense was 19.6 Million compared with eighteen point four million in third-quarter 2019 and 18.7 million in fourth quarter 2018 research and development expense was eight point three million sales and marketing expense was six million General and administrative job was 5.4 million, the sequential increase in operating expense was primarily due to increased legal spend.
2019 operating expense total 75.1 million a slight increase compared with 74.6 million in 2018 as Chris already noted we intend to increase the investments in our business to strengthen our product leadership and Market position adjusted ebitda for the fourth quarter was 1 million compared with two point 1 million in third-quarter a 2019 and a loss of one point seven million in fourth quarter 2018 marking another quarter of solid execution 2019 adjusted ebitda was 1.6 month compared with a loss of 13.8 million in 2018.
Gap
Net loss for the fourth quarter was 7.7 million non-gaap. Net income for the fourth quarter was $800,000 or $0.03 per share using a weighted average diluted share count of 22.8 million shares gaap. Net loss for 2019 was twenty-three million non-gaap. Net income for 2019 was $900,000 or $0.04 per share of using a weighted average diluted share count of 22.6 million shares.
Turning to the balance sheet. We ended the fourth quarter with cash cash equivalents and short-term Investments of 116.5 million compared with sixty three point 1 million in the prior quarter and 56.1 million in fourth quarter 2018 in the fourth quarter. We use shoot convertible notes with a 2% coupon rate generating 86.25 million in Gross proceeds and forty nine point four million and net proceeds after paying fees retiring are unsecured debt and purchasing the cap call looking forward. Our current plan is to sell the notes principal in cash. So for non-gaap modeling purposes, you should include additional shares proportional to the value of the conversion premium. What's our stock has moved through the $54.50 cap call Price a table in our fourth quarter 2019 friended file on our investor relations website outlines the dilution from the convertible notes for both Gap and New Jersey.
capture account
In the fourth quarter net cash provided by operating activities was 4.5 million and property and Equipment purchases totaled 1.5 million for the full year net cash provided by operating activities was four point seven million and property and Equipment purchases totaled 2.4 million.
Inventory total 34.2 million down 2.1 million from the prior quarter and below our expectations driven primarily by wafer delivery timing.
Before I turned two first-quarter guidance, I want to highlight a few items. First a reminder of the seasonality trends. We typically see in our first quarter annual pricing negotiations typically impact and point. I see revenue and gross margin system sales tend to be seasonally slower also operating expenses tend to increase over the prior quarter due to pay the tax resets and increased health care costs. Although these Trends are typical any number of factors can Mast that seasonality including Project based systems Revenue where size time and mix can impact our quarterly results.
second the North American systems project
Contributed meaningful fourth quarter 2019 revenue and will contribute meaningful first quarter 2020 Revenue that project will transition from deployment to operations at the end of the first quarter with the customer not purchasing additional gateways in second-quarter 2020. Their transition and gender is a meaningful headwind for our systems business beginning second quarter 2020. We will continue supporting this important and customer as we look for future growth opportunities with them. We also remain confident in the underlying strength of our systems business as we continue pursuing other opportunities at multiple large and customers
Third we have widened our first quarter 2020 Outlook range as a consequence of the coronavirus situation.
Turning to our Outlook. We expect first quarter Revenue to be between 37 million and 41 million and 18% year-over-year Improvement at the midpoint of the range. We expect adjusted ebitda to be between a loss of two point three million and a gain of 700,000 on the bottom line. We expect non-gaap earnings between a net loss of two point five million and a net profit of 500,000 reflecting non-gaap earnings per share of between a loss of $0.11 and a profit of $0.02 on a weighted average diluted page count of 22.4 million shares.
I want to thank the impinge team for the warm welcome and support leading up to this call to our customers suppliers and investors. I look forward to meeting many of you in the coming weeks and months. Thank you all for your contributions to a strong fourth-quarter and full-year 2019. I will now turn the call to the operator to open the question and answer session.
We will now begin the question-and-answer session to ask a question. You may press * then 1 on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing the issue. If at anytime your question has been addressed and you would like to withdraw your question, please press * then two at this time. We will pause momentarily to assemble our roster.
And our first question is from Mike lockley of canaccord. Genuity, please go ahead great. Thanks for taking my questions and congratulations on strong close to a strong 2018. Thank you, Mike.
First question is just on the system's business, you know, the headwind starting in Q2 and the the tougher comps from this large North American project. Can you help us? Maybe think about the Headlands any type of numbers you can put behind it. Would you would you think the system business can still grow in 2020 versus the strong 2019 without this customer given the pipeline just trying to help us any way to quantify what you mean by move ahead ones for the systems business.
Mike this is Jeff. It's let me take a first cut at an answer. First of all, I I think I can comment on bookings and off line and opportunities throughout the broad-based systems business and say we have healthy bookings. We have a healthy Pipeline and we see broad-based opportunity for the systems business across a variety of Industry sectors and use cases and all around the globe having said that in the script. We do call out the significant headwind associated with the transition of this large North American account month.
I
Like further say that we have taken into account that headwind in setting the guidance for 1 Q 20 month. So I think that should be helpful in trying to size the impact and the the opportunity.
Okay, thanks. Yep. I guess just just following up on that cue 120 you did indicate it was another strong quarter of contribution from that so that power supposed to read just expect a month a downtick from the front right into one that just trying to get a little Clarity around the meaningful head when again think yes, I think Mike that's a fair approach.
Okay, thanks. And then just just the annual price negotiations or those kind of done now in line with your expectations to start the year and then just off any color on the M7. I know it's pushed out a little bit because coronavirus and some interruptions to the supply chain. But how should we think about that ramp close later this year? If everything gets back on track? Thank you Mike. This is Jeff answered the first part of the question regarding the annual pricing negotiations and I think the clear and simple answer is that it I was in line with our expectations.
And Mike, I'm not sure if there was a question relative to the m 700 as we sit on the call. You know, we do see some impact to the m 700 Ram pickup option and you know, the transition from production ramped to full production associated with with our partners. As I said on the in the script understandably a focusing the first priorities on delivering production projects. Regardless, we still you know, we've taken with steps we can to compensate for those delays and we still anticipate pushing hard to get the 700 into into full production in the second quarter.
Okay, thanks last question for me, and I'll pass the line. It was a stronger gross margins than what I expected. So congrats on the strong margins. Was it more leverage from the higher revenue, or is it a positive mix or maybe you could speak to kind of gross margins in the trends going forward. Thanks again.
Yeah Mike, this is Kerry Baker. It's good to meet you gross margins in the fourth quarter were positively impacted by the systems Revenue which carriers a higher gross margin than the endpoint. I see business seasonally and these are typically a little bit lower as we're going into the the annual price negotiations. So really the primary factor was the the underlying Revenue mix off of the business.
Thank you and good luck with the year.
Thank you, Mike, Mike.
Our next question comes from Jim Ritchie of Needham & Company, please go ahead. Thanks. Good afternoon. Just putting aside the m700 slippage for a second. Can you can you talk a little bit about the impact of the coronavirus in q1 given that we're we've got about a month left in the quarter. I'm wondering what kind of an impact you're seeing on the the underlying I see in point I see and systems business in q1 such in this is Chris as I said in a script the impact in a first-quarter has been modest. Um, but as we look forward, you know Lorraine label is it's really a key piece in multiple complex and diverse sourcing and Supply chains. Everything is you think of Aviation to be able to Industrial Logistics Automotive tall, they use cases and there's upstream and downstream impacts related to demand materials Freight and labor so given that complexity and because the Corona virus. Yep.
Is evolving literally daily? We can't make much in the way of projections for second-quarter. I think you're just going to have to stick with what I said previously which is at the impact of first-quarter. We see as being modest outside of the impact.
Excited for the m700 transition from production ramped to full production.
And maybe if we could just turn for a moment to the the large North American customer and I'm not asking for specifics on that customer. I'm just trying to get some sense as you pursue some of these other opportunities what kind of sales cycle do you see on some of these larger projects? And is there the potential that the sales cycle could shorten given what you've demonstrated presumably with this customer to other customers?
I would say more generally that success in any customer in any industry sector bodes well for and positive influences sales Cycles going forward success begets more success if you will, so any project including this project that has successfully transitioned to deployment from deployment into operations is an opportunity to talk to utilize the learning and extend to New Opportunities around the globe.
Okay. Last question for me is just looking at the reader. I see business and there's some moving pieces. They're just given the headwinds from the corona Club, but you should have easier comps in that business, and I'm just wondering how we might think about the business the reader. I see portion of the system business in 2018.
I feel very confident about the underlying foundational strength of the reader. I see business going into 2020.
And any do you should we assume that that portion of the business given what you see could could be up in 2020.
Well, we continue to guide one quarter at a time. But I I I would signal that we feel good about the the bookings the pipeline and the many opportunities for our reader Icees embedded in or integrated into a wide variety of solutions serving multiple industry sectors and use cases. So we feel good about the foundational strength of the reader. I see business and Jim that's a Genesis of my comment that we continue investing in this business because you know, we see it as strength for the page. Okay? Thank you. That's helpful. Thanks a lot. Thank you. Thanks Jim.
Our next question comes from Craig hettenbach of Morgan Stanley, please. Go ahead.
Oh, yes. Thank you. First question for Kerry and understanding you just starting out. It might not be formal targets and it's just kind of curious as you look at the business and then how your initial thoughts are in terms of kind of growth and balance met with kind of Investments and margins.
Yeah Craig. So thanks for the question. You know, I'm two weeks into it so you can assume that I am getting up to speed on the business I think quickly but there's a lot to learn of course. So as I look at the revenue profile the growth trajectory and Investments necessary to to drive that. I'm still coming up with how we should look at that Back to the Future. So at this point, I'm not ready to offer anything specific but know that it is a top of the list of something that I'm working on.
Got it. And then just a follow-up on the M 700, you know any thoughts and just kind of Milestones of things that we should kind of be watching as you work through, you know, kind of part of an ecosystem and and expectations for trajectory as you kind of move through the year.
So Craig, this is Chris. I you know, you should expect us to continue speaking about the Infinity of 700 given given how important it is to our future and you know, given the the the dead how do we really view it as a game changer in the market opportunity as as if we said we still expect it to positively impact the business in 2020 and we'll make statements about the impinge m705 new information becomes available.
Okay. Thanks. Thank you.
Our next question comes from Troy Jensen of Piper. Jaffray, please go ahead.
Yeah congrats on the great results gentleman, and I you know, which my best Eric here.
Thank you. Troy extra thumbs up from Eric. Hey, so how about that? You're very welcome. Good luck quick. Talk about Avery Dennison a smart Tech, you know those two companies are getting acquired from emerging whatever you want to call it. But just what are the implications for p i given you're not going to have, you know one customer that could be, you know, twenty-five to thirty percent of revenues.
This is Chris. I'll start there and maybe Jeff will add a little bit if he's got anything to say after I make a few comments. Obviously the deal just closed this morning historically, we've enjoyed a mutually beneficial partnership with both companies every dentist in a smart track and we we plan to build on that strong Foundation to grow and serve the market going forward, you know working with them to drive Dragon opportunities out into the market.
and
Two, okay.
No, keep going keep on trying to say any concerns about just inventory rationalization or would love to get yes.
No at this time, I don't have any particular concerns. And as Chris said we've worked closely with each of smart track and Avery Dennison for many years developed deep life partnership deep relationships within both companies and we very much look forward to working together closely now is sort of a a combined and Thursday for Avery Dennison and smart track as we seek to grow the the rain industry and and work to serve opportunities that emerge in in a variety of Industries strikes sectors and around the globe. So we leave the odors up optimistically and and look forward to working closely with them.
Okay. All right, then just my last question would be can you give us an update on the the airline industry on the mandate?
Yeah, so try this is Chris.
That Aviation opportunity is going to span several years. And so we're still in the early days. We do continue to see progress in the space highlighted by expanding deployments within eye out a member Airlines and airports and also non item member Airlines and airports. So we were starting to see growth in good opportunities. There's a lot of questions coming in and and I guess what what what I say is that I think what we're seeing on the market in terms of wage in Bound To Us is consistent with a measured multi-year growth trajectory as we expect from the airline industry as a whole moving forward. I think the one thing that I would add this is Jeff is that this industry like most will progress on a project basis so project size timing and and sort of the mix of the elements of that solution will vary quarter-to-quarter quarter, but we're quite optimistic in the long-term opportunity and how well we're positioned dead.
to participate in that
throwing off returning both as it relates to endpoint ICS as well as the systems business both fixed readers like the speedway and the new r700 as well as readers based upon our reader I see
right understood a good luck in twenty-twenty gentleman. Thank you very much dry.
Again, if you would like to ask a question, please press * then 1 and our next question will come from Charlie Anderson, please go ahead. Thanks for taking my questions and congrats on a strong finish to the year. Yeah. You're welcome. So I wanted to start with maybe Chris from you just sort of big-picture wise, you know, 2019 was really great for long-range RFID. We had a lot of Major Brands deploy, you mentioned performance apparel Footwear and it sounds like that's going to be sort of similar set of circumstances for twenty twenty. But I wonder if maybe you could expand on that in terms of what you're seeing a pipeline in terms of you know, who may deploy, you know, if you're willing to make any comments outside of apparel as well. If if there were any other end markets that look promising to you particularly in in 2028 follow-up. Yeah. Sure Charlie. I'm not going to name a specific specific and customers by name because those that have that wanted to say things publicly will have done so if they're on a court, but you know, you can see a fairly large number.
us retailers make
Statements about the positive impact that rain RFID is having on their inventory visibility and and that was trying to talk about a more advanced use cases. I will say that I personally have done now self checkout using automated self-checkout terminals rainbows self-checkout terminals in Europe and in Asia and I can see the the attraction to automated self-check self-checkout and loss prevention systems where I can just literally go to a self-checkout terminal by the items pay and walk out of the store used to move those places and I see the see the opportunity for expansion of rain RFID from from the base which has been in a story visibility and he'll driven inventory visibility to be more more and newer fixed use cases on top of the growth we expect and hope to see in the retail apparel segment Thursday. We are of course seeing opportunities in aviation as we just spoke about a minute ago supply chain and Logistics continues to grow and as tracking items transitioning through. Doors and across facilities dead.
And we see good opportunities in that use case. And as I mentioned, I believe it was on the last call. We also see opportunities in the automotive space so broad brush multiple large verticals adopting a growing retail continuing to lead but lots of excitement out in the market.
Okay, great. And then you obviously now refreshed the endpoint. I see product you've refreshed or reader product here with our 700. I'm curious where things stand on her. I see product if you maybe talk about the road map there as far as that's concerned in any Improvement you can make to that product. Thanks so much. Well as the markets innovator and leader, you should expect us to be continually advancing our product line. We don't make Advance announcements before we have something that we're going to show we will introduce new products as they become available and when the time is right.
Okay. Thanks so much. Thank you Charlie. Thanks Charlie.
Our next question comes from Steve of RBC Capital markets, please. Go ahead. Hey guys, this is Mike take my question. My first one just got out of the sales strategy given the fact of life changing of management there. And is there any change where you guys originally planned to about a year-and-half ago in terms of go to market and then secondly just want to clarify in the vertical you guys are talking about growth again and Retail wage. I guess would it be safe to assume that supposed to be the fastest-growing vertical in 2020 and it's so what would be kind of your expectation of seconds after vertical for 2020?
Jeff. Said I'll I'll take the first question with regards to sales strategy as you may know I assume responsibility for the sales organization in 1 Q 2018 and I would say we anticipate continuing the sales strategy underway today. What I like to call out as we have in the past is the important role that Partners play and crafting and designing and deploying specialized rain based Solutions. Am addressing the needs of a very wide range of Industry sectors and use cases and so Partners have been at the foundation of our sales team and go-to-market strategy for years and it will continue to be a very major focus in 2020 and going forward. So the overall sales strategy game
and aspirations remained
Consistent as we head into this this phase of impinge is growth going forward and Mitch, this is Chris. I'll try and take a stab at your second your second question. Obviously, it's a big question and we could talk literally about it for four hours as you think about growth in the market retail is coming off the biggest bass reach out of cars coming off the biggest bass. I would not say that it's um, it's that has the fastest growth on a percentage basis, but given the base that's coming off of interest in terms of sheer volumes for endpoint. I sees it represents the largest opportunity back in the marketing twenty-twenty. As I said, as I said in the script on a percentage basis, the newer opportunities are going faster and I you know, we talked about supply chain and Logistics we talked about Aviation and we talked about Automotive opportunities and for each of those opportunities, you have to look at the mix between input and sees and systems some of them tend to be heavy on the systems and a little lighter on the endpoint ICS or vice versa. They're all very early age.
and growing probably
A percentage basis said much faster clip but I think it's important to think of that those four overall with others behind them. You know, we've talked to the past about health care and other other opportunities, but you think about them over package is just representing the fact that rain is penetrating very heavily into multiple industry verticals. The rain Alliance said that the industry delivered 18.5 billion in point. I seized in 2019, which is significant growth over 2018, which is a 2017 and we are very excited about the future and what the future brings for us in terms of opportunities and and customers as well as overall market segments.
Okay. Thank you.
Thanks, Mitch. Thank you Mitch.
This concludes our question-and-answer session. I would like to turn the conference back over to Christy Oreo for any closing remarks.
Thank you all for joining the call today, and I'd like to give a very special thanks to the team for the solid execution. That's this past quarter and again to thank Eric for his incredible Support over these past five years. Thank you very much.
The conference has now concluded thank you for attending today's presentation. You may now disconnect.