Q2 2020 Earnings Call
You will Carnegie on calls what are you starting out the second quarter Twentytwenty financial results Conference calls.
At this time, we have something to do so again back to be on doing shortly we appreciate your patience piece, we may not go.
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Good day and welcome to the telling that second quarter two like each wacky financial results Conference call. Today's conference is being recorded and they'll be you any session held at the end Ultragaz coughing.
Give me press Star one could you for question at this time I would like to turn the call bunch of that you might be shop with the Companys Investor Relations. Please go ahead Sir.
Good afternoon, Bishop and I lead Investor relations for telling us.
I would like to welcome you to our fiscal 2022nd quarter earnings conference call to discuss the financial.
Overall business performance during the quarter.
Joining me today, our H.P.J. <unk>, President and CEO, a deal men's or Chief financial Officer.
Sidewall co president automotive.
The format of today's call will be opening remarks from HP, an ideal followed by opening the call to your questions.
After the market close today Telenet issued a press release and publish supplemental earnings materials on the Investor Relations section of its website.
During the course of today's presentation, our executives will make forward looking statements, including statements regarding among others. The company's expected financial performance for the third quarter fiscal 2020.
Despite its.
So the mixes of revenue expected profitability product in business strategies and strategic relationships.
We wish we caution you that such statements are just predictions based on management's current expectations or beliefs and that actual events and results may differ materially.
We refer you to documents we file with it.
Securities Exchange Commission, including our annual report on form 10-K for the fiscal year ended June 32019 in other periodic filings.
These documents identify important risk factors that could cause our actual results to differ materially from does contain forward looking statements.
We assume no duty to confirm.
Update or revise the financial forecast for the quarter or any other forward looking information on this call as a result of new developments or otherwise.
Today, we will be discussing our results on a GAAP as well as non-GAAP basis. We use these additional non-GAAP measures as we believe they provide useful operating information in addition to the GAAP results.
All right number of limitation limitations related to the use of billings versus revenue calculated in accordance with gap.
Compensate for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with revenue calculated in accordance with gap as well as considering whether we're likely to satisfy the criteria were required to recognize.
Revenue to convert deferred revenue into revenue and the cost that we will incur overtime to provide the services related to that deferred revenue.
A reconciliation of GAAP to non-GAAP financial statement is available in our press release and on our Investor Relations Web page.
With that I'd like to turn the call over the HP.
It's Mike.
And welcome everyone to the call.
Telenet had a very strong second quarter.
Revenue more than $67 million.
Oh, 44% year over year.
Adjusted EBITDA positive $7.8 million and the positive next week.
Come on I guess basis of more than $6 million.
The result evidence of acceleration in our country the strength in the automotive industry.
I will cover the dual numbers later and I'd like to provide an industry update and and operational overview.
That's connected car.
Market is in the early stages of development.
And there are three major industry trends dredging and accelerated momentum into Connectcar space.
First navigation penetration continues to increase.
And is a primary application connected vehicles.
I'm telling that.
Has the highest market share for navigation software and services in the North America.
Second the concept of the embedded infotainment system is expanding.
Beyond simple navigation into all highly integrated seamlessly infotainment solution across all interfaces.
And all connected content types entertainment and that dragging services.
Hello, NAV. So maybe platform is a meant to capitalize on that trend.
Sure.
New business models to monetize a full screen and the vehicle data Marty.
We believe you do will be.
500 billion dollar market and strategically positioned to capture our fair share of the opportunity.
In call Commerce solution, either pioneering the industry in this effort.
Evidence of early success, which I will share in a moment.
Yeah I wanted to capture this in mens.
Carl opportunity, we've continued to make progress on all three people are connected car platform strategy in the second quarter.
As a reminder, that's right Peter right. Peter are you can call software and services.
Called Commerce and communications.
And there.
Already intelligence.
Well you can call software and service pillar, we are spending beyond navigation.
And to have developed and all in one infotainment system right.
We are exploring opportunities worldwide with aftermarket manufacturers to quickly introduced this product to the bucket.
We're also working with Oems to offer our basic solutions imbedded platform along Oh.
Oh, yeah, I'm still flexibility to customize and they retain customer data and relationship.
We all got some second pillar in call Commerce and communication.
It's always to monetize the false.
Green and the big data generated by cars and drivers.
A major U.S. credit card provider, that's the nice thing Andrew in call commerce opportunity to be $200 billion in the U.S. alone assuming only one commute per day.
In the quarter, we're able.
To achieve our first I see in call commerce win with a capital yet that we expect to launch in fiscal year 2021.
Well this initiative.
Enabling commerce functionality, while driving including purchasing of coffee Jacqueline parking and tool.
Device ordering and quick picked up from restaurants.
I would like to note that this was a competitive bid process and we want over a competitor that wasn't recently acquired for more than $300 million.
Meaning we have organically developed a highly.
Competitive valuable asset in the ice he sees space.
Were seeing many more opportunities.
And I'm confident about winning them all.
We believe this food created significant value for all our shareholders.
The continued during the ecosystem around our platform.
We also made a strategic investment in a company called it seems threed restaurant solutions.
Leading service provider focused on order processing and it gets to relationships for the restaurant industry.
Including quick service restaurants.
I think suite currently has relationships with a more.
In 30 restaurant brands, giving us access to thousands of restaurant locations.
The tie in with automotive space the talent.
You know just stick to both companies.
Plugged into a swift execution.
Given the integrating sync three full launch with our first I see.
Oh young customers, so when I referenced I know.
We have focused on beauty, but I can see ecosystem, we have strategic investments and partnerships.
And creating new sustainable revenue streams, including in color right, whereas with our partner.
Marketing media and insurance solutions through our another partner motion out.
Again, I want strategy for this pillar is to offer value added innovative solutions to our customers and consumers through us through strategic investments in innovative companies.
[laughter].
Well you all talked about four pillar note intelligence, we completed the graph transaction transaction in January.
And now owns a minority equity stake in Grad.
Westmoreland additional sizable opportunities with other ride hailing companies across the globe.
The goal for this pillar is to leverage our.
Knowledge to do you want to rise useful insights from past censored data and so customers across multiple industries.
And just auto yes.
Yes, I will share keep car updates.
Well continue to ramp.
Yeah.
General Motors in quoting in their newest models.
Telling that included on G.S. worst marquee launch the Cadillac escalate.
Which is one of the best selling luxury S. You'll be in the world.
The new model includes the latest knowledge.
Oh from Tech Telenet and the functionality on T.S. unique form factor all super wide curved Oh LCD display.
We expect to see additional models go out would tell enough software that's our current contract with GM.
Extends through 2025.
For remained our largest customer you know a second quarter.
We are contractually falls.
For navigation supplier in North America for next Gen six.
Which is planned to launch later this year.
We expect to have the majority of never give some market share in force.
So mark up portfolio, which includes the best selling pickup truck the F. One safety.
In summary, I'm very pleased with another solid quarter choosing a five year hiking in revenue.
Yep net income and non-GAAP adjusted EBITDA.
I'm very confident.
Of our mid term financial performance with a large backlog at the $1 billion a solid foundation.
I'm excited about the momentum well trading with our Threed people are connected car platform strategy for long term growth, especially with our first you can call commerce win with a Japanese.
Yep.
I will now turn to Paul overcome ideal for quick overview of the financial results.
Thank you at a much CHP.
Although I'd be making beep comments about the numbers. Please refer to our earnings deck and the press release for the need good financial status.
I'll be referencing.
Turning to slide <unk> earnings presentation for better highlight our performance in the past quarter.
Starting with slide number four.
I would like to talk about key highlights for the quarter.
Endpoints are.
First we delivered another solid quarter I remain focused on creating value for our shareholders for the long term.
In Q2.
Good morning, we had five year high revenue and positive adjusted EBITDA that too on the he's off a six week long strike at Union.
We grew revenue by 34%.
While expanding our GAAP gross margin by eight points year over year.
Second we exited the quarter with record high cash.
No 149 million in cash cash equivalents and chalk them investments.
This is net of any share repurchases and equity investments that you married and the board.
Our current gosh problems at the end of the border represented over half of done enough market gap.
This does not include the agreement or dollar.
Common equity investments in multiple companies.
Third Telenav has tremendous value under our current contracts with existing customers.
Our current estimate is approximately 1 billion in backlog from existing customer engagements.
Last but not the least we continue to make brothers what our strategy.
I didn't from some major wins and milestones we ended up getting in the past quarter.
Number one the first I could see wind with Japanese OEM.
I mean do the agreement would syncthree forget instant access to thousands of restaurants and number three was the partnership with motion auto to provide.
And you want us solutions.
Looking at slide number six in Q2, good morning, I revenue increased 34% year over year, 60, 714 million from 50.2 million a year ago.
This is a significant increase year over year.
Main drivers up on remarkable performance. So you will you.
And on the performance versus the Guy.
Oh.
The continued ramp would then GM.
Rob revenue in the quarter.
Broad based automotive strength, including there, including our Shanghai Jan.
And we executed better than anticipated and tools that were under contract and you do that mutate expected to close in Q2 good morning.
Moving on got billings in the second border office, they're gonna, Tony what 64 million, a 14% increase year over year compared with 57 million in the second quarter up is currently 90.
Primarily driven by continued ramping GM, including year over year volume increases in check idea.
Okay.
What makes its trending as we expected.
Continues to ramp up.
You do Ford was 42% of revenue and 51% of billings.
Well, Jim was 34% of revenue and 34% of billings.
GAAP gross margin as a percent of revenue for the second quarter up it's certainly going.
What's what's strong at 49.9% compared with 42.4% in the second quarter fiscal 2019.
Gross profit increased 33.6 million in the second quarter fiscal any money.
58% increase compared with 21.3 million in the second quarter fiscal 2019.
The improvement in gross margin was primarily driven by the Dropdowns action.
Moving onto the operating expenses.
GAAP operating expenses in the second quarter up its good when 20 or 28.3 million compared with 25.8 million. This second quarter off it's certainly 19.
No I was nine.
Point, yet or what are you had as a percent of revenue, but up 10% year over year in absolute dollars.
Mainly due to entries in compensation and benefits and strategic headcount investments.
Income from operations for the second quarter fiscal 2020.
It was 5.3 million compared with a loss.
4.5 million in the second quarter fiscal 2019.
So you will you pretty much in the operating profit was primarily due to the increase revenue and a strong gross margins.
Well, our gross margin was significantly higher this quarter, we expected to return to the trend line developed in recent quarters.
Likewise net income turn to profit interest in the second quarter fiscal 2020, 6.5 million compared with a net loss of 4.6 million what are the second quarter fiscal 2019.
But you will yield improvement was primarily due to the increase revenue Rosemont gross margin profit and other income and expense.
Which reached well we achieved positive adjusted EBITDA, a non-GAAP major I've said 48 million for the second quarter fiscal 2020, compared with a loss off 1 million for the second quarter fiscal 2019.
Adjusted EBITDA in it in Q2 duty was a five year high end it benefited from the GM Bran Opex.
Stability and to grab transaction.
Given the strong performance of the company in the border Gosh was also highpoint into second quarter fiscal can lead to money, we generated a non-GAAP free cash flow of 12 million overall, our cash and cash equivalents position improved into quarter 229 million adds up.
30, Onest only 19.
And then resolve 7.2 million what's is there another 22 million ordered in the first quarter office can lead to money and an increase of 29.5 million from 99.5 million on June Thirtyth 29 team.
This quarter end.
Cash balance up approximately.
329 billion was knocked up approximately 4 million in cash that we used to repurchase 767000 shares.
Our large Josh was this position I'm wondering 29 million combined with the value bought equity investments of 20 million represented approximately 65 personal market.
Got it ended the quarter.
We continue to expand our footprint of connected cars.
Our goal is going to guard installed base increased to more than 17 million up 46% knew what do you do a year and we shipped 1.3 million connected cars within the second quarter.
Our overall.
It all to best meet 27 million cars up 48% year over year.
Fifth largest on base provides yet another significant opportunity for us to explore.
Looking at slide number seven we saw encouraging momentum in both products and services revenue in the past water up 31% and 54%.
And your year over year.
So to say that presented 18% of park water revenue mix, what's is 15% in the prior to year and 15% Enterprise Walker mixed up services business view year on year.
Services revenue in the standard component of our contracts with Williams and we expected to continue.
To be how people pushing up our revenue going forward.
Generally speaking we can do you would expect services revenue to be in the range of 15% to 20% up on revenue for the balance up it's going to get good morning.
So this is an area of focus for us and we intend to grow into over the next three years. We further in pieces that are going to have any stream.
I think your slide number nine when you look at our existing customer engagements.
We continue to see a healthy backlog of approximately 1 billion.
Backlog is composed of work after two units volume based on OEM projections deferred revenues and management estimates.
We expect to recognize approximately 75%.
Our backlog over the next three and a half years from second half the spend money through fiscal <unk>, it's going to 23.
Which provides us a line of sight into sustainable revenue streams.
Please note that our estimate of backlog is purely based on existing customer engagements and does not to do any new expected revenue streams.
Including any new Oems in got Commerce off the Mark Maki favorite offerings auto insurance.
I'm very pleased with our overall execution and operational discipline in the past water and we see the following six opportunities in the short to medium term.
Number one.
Got it.
It's a huge opportunity for us and we're just getting started with our first customer win.
Number two aftermarket, but our all in one never solution to cater to the untapped millions apart in the aftermarket channel.
Number three exploding meaningful grab like opportunities across the globe focusing on.
Ride hailing companies.
Number four maybe it hasn't embedded platform when we end, allowing them to the flexibility to customize and are being customer data and relationship.
Number five entries are shared wouldn't board.
Number six.
You know large and growing installed.
Yes, and the opportunity to monetize it wouldn't be active offerings, such as widely label Argo insurance solutions.
Moving on to slide number 11, and looking at third quarter.
In the current forecast.
We assume that GM when it down to a normal run rate coming out of the strike in factor.
Second quarter.
Secondly, our current estimates.
As use business as usual and normally Peter that box on the go no bias.
For Q3, we expect all the revenue to be 61.5 million to 63.5 million.
Billings I'm non-GAAP measure.
To be between 62.5 million to 64.5 million.
GAAP gross margin to be within.
42, we're starting to 44%.
GAAP operating expenses to be between 29 million for 30 31 million.
Yeah, I've not been going to be between 4.5.
And then in the 6.5 million.
Adjusted EBITDA, a non-GAAP measure to be within negative 1.5 million.
Positive 0.5 million.
For the full year 40, Tony we expect to be a just adjusted EBITDA positive.
With that I will open up the golf.
All your questions.
Thank you everyone likes to ask a question, Michigan about best install wondering your telephone keep back if you are using a speakerphone. Please make trillion mute function is can often valiant signal to Michel that's at night.
But I still want to ask the question.
What do you go first question from Josh Nichols.
From B. Riley FBR. Your line is open. Please go ahead.
Hey, Josh.
Oh, well known and Keith.
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Hey, Josh are you there.
Well I know they will take the.
I'm going to need Josh I know.
Josh Your line is open. Please go ahead.
Oh, sorry looks like we had a little bit of technical difficulties for a second but it looks like some back on.
Great and congratulations.
The company's firstly Japanese OEM for the this in car Commerce, I realize that's not going to be ramping until fiscal 21.
But could you kind of give us the framework for what the economics look like on these type of deals and and how material there could be to the company going forward.
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So Josh I'm you know one.
I'll start and that probably H.B. can chime in so Josh you know ICICI overall, it's a big opportunity for us and I thing I'd be said in his opening remarks.
It's a massive opportunity you know one of the U.S. major U.S. credit card provider, we had a steady on just one single trip from whom do office just wanting.
Okay, and then estimate is on average in the U.S. that that equates to about $200 billion just started one single trip.
So I think the auto possible, it's pretty large.
What we are doing is right now the focus Josh really is on building the ecosystem getting down to the things that we want to offer to what customers.
To give them a delightful experience.
I think the monetization off how this will pan out and how big that would be it's too early to do to quantify and share HP would you add anything.
You know agreement.
And then.
I guess, how much confidence do you have the.
The companys ability to really expand the vivid platform into the use of more entry level vehicles, but 60% to 70% largely kind of.
Penetrated or using does tend to broaden navigation solution.
So right now we are all our.
Our strategy on the video product is to start with aftermarket first.
So there still are Nina tens of million Veecos without good a you know you've booked in the system on it.
So that's our first target.
I also like to use that as a way too quickly Heath right to.
The usability performance to get to Npis 70, that's our internal goal.
And then after that we offer the platform to Oems are to allow them to get into the you know the basically across all all all tiers are high and low and Amit.
And and we also will offer a and Ah you Didnt model I got together with ice ecommerce and others to allow them to monetize on that experience as well. So we're pretty confident I mean, that's our various strategic bet.
In terms of extending beyond gets navigation and we are weaker.
Experienced classes of business model, so very very accommodating in penetrating in all classes.
So just to actually any Josh thank you.
So just to our Josh I think they know each be some did well, but I think you Hot why you are thinking about different classes and different levels of models mute entry mid or high end what do you.
I would think beyond just embedded into aftermarket as well because we are not only going after all categories that he's beside within them baggage solution you know as an all in one play which would include navigation infotainment Entertainment I see see which is in car commerce, but also think beyond.
Got it into aftermarket because it's a big opportunity for US there are millions of millions of Cogs out there.
Doc that we can go top on with our favorite offerings.
Mhm.
And then.
Any framework you can provide about since you did mention one the aftermarket.
Jerry and also the Companys previously mentioned expands footprint more into China, given that much larger vehicle sales, they're kinda talk about the opportunity and how you see that playing out potentially.
That's helpful did that eight on and then in China.
So they they we are.
As I mentioned about aftermarket trial or it's a you know the first launch a were doing that at same time in China market any U.S. market. So that's a cutting soon.
To the test south of market and a lot wants to learn iterate and then promote that to OEM customers.
Just adoption is still there is a school exciting and where are you know we're attacking this but those two markets.
Same way.
No.
Thanks, and then could you talk about where the company scans right now as far as penetration to Jim I know.
Several quarters ago, you mentioned, you're still in the single digits, but where that where you think that stands today.
And where that could go.
So you ought to go yeah, I'll take it so so you're right Josh I think the that we in the past we have said in single digits, but if you look at it today I think it's maybe in the local east.
Is the current penetration it a win win with GM and I think we can even ramp with GM and you can look at our results and how can is on that on the call is why doesn't do you want to add something due to the hundred.
Oh, so as it gets severely give summed it up well we are still ramping.
Being up and I think a lot of see vehicles that were watching.
This fiscal year, it will start to see bigger impact in the upcoming quarters.
I guess, we got to add I'd answer that I don't know whether you saw that the latest.
Cadillac escalate.
It's a I read a little today.
Yes, it right.
So we are on that as well that is also one of the good selling cars.
Great yet I would imagine that the attachment rates on that or.
Close to 100% right on the higher end vehicles like that.
I would last question for me to passive towards.
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Just a housekeeping I think you mentioned it could you say repeat again, what the percentage of revenue and billings was for Ford and GM for the quarter. Please.
Yeah, So the mix for the GM and for the Ford was 42% off revenue.
And 51% of billing.
And Jim.
Was 34% of revenue and 34% of buildings.
Great. Thanks, guys are pesatori option, a great to see the deposit of EBITDA guidance for the year back.
Thank you very much thank you.
Thank you.
Once again thought you said they need people like to ask a question the.
But that seems star one on your telephone keypad.
What do you going next question somebody I think though from Craig Hallum Capital. Your line is open. Please go ahead.
Hey, guys. So first question for me and maybe I missed it kind of in the prepared remarks, but.
You guys exceeded your previous revenue guidance by.
$11 million you noted some things continued ramp of G.M. grab revenue.
Automotive shrink I mean, all that stuff seem known at the time I guess what out what what exactly that was set up so driven by.
Well, maybe I'll take this so if you if you look good on revenue.
We delivered about 67 million, where we got it for the quarter was 55 to 57. So it's roughly speaking about $99 million over performance versus the guide.
So so did I wouldn't think about they don't like to components that drew.
Defensibility worse is out of guidance.
Number one we is a we were.
In the process up negotiating.
An amendment with on one of our Windows are winding down we have been working with the long time and basically their solution shows up in our solution overall solution as a combo.
That was in the Boston negotiation, but as you know.
In the normal course of the business that you have Nicholas negotiating better times, what amendments or you can do you ship writing baby. So bad that blended agreement was originally planned to be closed in Q3, but we executed better than we thought and it got close. Thank you good morning.
So that a big game, the fact that number.
One a foothold performance relative to guide the number two was really you know the broad based spent every saw you know, especially in our our Shanghai General Motors, we saw a units came in better than what we thought.
So the combination of the two outdoors or exceed our guidance.
Yeah able to quantify what that Oh.
Amendment with the longtime vendor how much that contributed to the upside.
I would say that amendment I would say roughly you know.
I would say about two third is what I would think about.
And just three quick ones that in billings.
Build previously 'cause billings beat by 3 million in revenue be but yeah. So that's why it's so easy so not all up it was billable not all up we've got built in Q2.
Some of it it was already build of other revenue was.
It was in Q2.
Because because it when it was a portion of it with a catch up because we as I said, we're going to chip and then we recognized in the quarter.
Got it then if we shift over to Q4 Q3 guidance billings are expected to be down a million at the midpoint quarter over quarter.
Order display I mean, the G M ramping as well as not having the you HW strike, which that production this quarter.
I guess, what's causing that the decrease there.
Well I think it's it's tied to your previous question because if you. If you look at what we had guiding for deepwater and I think you said that unit.
About 1 million dollar drop.
But in Q2, we have the benefit of this this catch up from the vendor contract right.
And if you normalize for that when did contract catch up billings is actually they are growing quarter over quarter into Q3.
Got it so the.
The billings from the the amendment was there was some billings in the quarter I just feels like yeah billing should grow a lot more than that given kind of situation with Jim.
Yeah. So so I think the they did because GM as you mentioned right. So it's really the two pieces right. One is any this benefit off the contract in Q2, but then you.
You know the GM wrapped in Q3 coming off off you know a strike and docket border. So the net of those two is what you see.
The guidance that important cogs trend to send a way to guidance and it is really about a million dollars down quarter over quarter.
Okay.
Switching over to the billion dollar backlog impressive number there.
Do you expect to convert 75% of that backlog over the next three and a half years. It implies that math is 215 million and annual revenue, which is quite a bit below the current run rate with GM.
Wrapping as well so I guess, what does that backlog include.
For GM and Ford assumptions.
So the GM and Ford assumptions. Its basically you know what the current contracts that we have in place. So as we said you know the the the computation or the estimation of the backlog and feel good three things.
Just.
One is really the estimates or E. <unk> that we get from our wonders such as you know fall or GM and then what do we do as we apply management estimates on top of it plus we have deferred revenues sitting on our balance sheet and once you have to believe over the next you know hockey used in terms of.
You know, how what kind of buildings, you would get and would get added to the deferred revenue. So some of those two pieces considered in this 1 billion and this is just Ford and GM and the covered.
<unk> contracts that are in place.
Nothing new we does not include anything about the the in caught commerce.
We talked about are the when we talked about this does not assume anything about aftermarket favorite opportunities that we're talking about this does not include any new Oems that we may win over the next couple of years.
So it is just the existing customer engagements, he but even with a.
Ford, we only a huge the contract we have which is only 422. So the 23, which you know that's document talented yet for this new generation Uh huh.
New generation I think.
So Ford will be.
And potential to have a higher total.
Revenue potential down into backlog indicates.
Okay. Okay and this was also yeah.
Right.
Well, there's something else that.
No I think that there's nothing else we started well I think it's it's also you know we then it and they're not estimation.
We just have relied on out existing arrangements you know that'd be happy with the customers and basically that also as you know some would ramp down some words declared and then it makes up all that is really over the years.
Got it generates a billion dollar number I guess I found a way to think about it is set the flaw for.
So the foundation foster even through a loss of the though the the purpose of the business today existence grow beyond that right that is as pure Dusty never anything.
And then you know with that's a.
1 billion dollar lifting up articles knocking out of that that is a much bigger than that.
Value, how does not get cap off the company today.
But we are we are here to deal with a lot more value on top of including GM. We're working on new opportunities, we can't G.M. flawed, which you would go on top of the backlog.
And I don't think healing just to act, which be maintenance base these comments and dogs.
This was this was this isn't.
The non-GAAP major right and this was something that we saw it has tremendous value for tight enough and I think it's it's one of the metrics that so under appreciated and when we saw the value and not existing customer engagements. We thought we should share it with kind of not only current but also potential investors because they need to see it.
These are the numbers that even if we just show up toward nine to five it's just that they said the floor right no new business. This is how we will look like over the next three to four years.
Got it and so when you say floor, there theres no termination a potential or anything like that with those agreements are booked in in hand.
No they longer that are split domination, but isn't very busy I know there's a this is a lot and we haven't can handle writing.
Okay. Just one final one for me you mentioned Ford through 2022, you also said in your prepared remarks sitting quite catch up but he said the F series that you're on the next.
And I believe with your connecting embedded navigation, so presumably that's.
Is that an award that you have well beyond 2022, effectively or is or I guess, what was the commentary on the F 150, well the.
Current contract out actually the runway delivery and this year into their next generation product.
So we are the upfront for supplier all their next again think.
Right. So that's a actually the contract we have today is flawed 20 122.
Just the way they do a contract but this sink this think I know a next gen think were lost more than.
Beyond.
22.
However, the contract is only cover I get that need.
Got it thanks, guys I'll pass it on.
Thank you.
Thank you. It appears you know for the question at this time I like to Gen Conference back to the management for any additional also sandmaxx.
Thank you I've looked at I like to thank everyone for Vincent participating in today's second quarter fiscal 2020 financial results call. We appreciate your continued support.
You may now disconnect.
That concludes today's conference. Thank you everyone for your participation you may now disconnect.
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