Q4 2019 Earnings Call
Greetings and welcome to the Casa systems fourth quarter and full year 2019 financial results Conference call.
Please note this conference is being recorded.
I will now turn the conference over to your host Monica Gould.
<unk> relations for Casa systems. The school you may begin.
Thank you operator, and good afternoon, everyone costs are released results for the fourth quarter and full year 2019.
Starting in 2019.
After the market.
If you do not receive a copy of earnings press release, you may obtain it.
Mr Relations section of our website.
Investors that Casa Das systems.
With me on today's call, our Gerry well Chief Executive Officer Scott.
Trend Chief Financial Officer, and senior Vice President.
Scott is being webcast will be archived on the Investor Relations section of our website.
Before I turn the call Liberty, Jerry I'd like to know that today's discussion will contain forward looking statements based on the business environment as he currently see it and as such does include certain risks and uncertainties.
Please refer to our press release, and our FCC filings for more information on the specific risk factors that could cause our actual results to differ materially from the projections described to chase discussion.
Any forward looking statements that we make on this call or in the earnings release are based upon information that we believe as of today.
We undertake no obligation to update these statements as a result, you information or future events.
In addition to U.S. GAAP reporting we report certain financial measures that you're not conform to generally accepted accounting principles. During the call. We may use non-GAAP measures. If we believe it useful to investors are we believe will help investors better understand our performance or business trends.
With that I'd like to turn the call over to Jerry.
Good afternoon, everyone and thanks for joining us today as you may have already singling out, earning his priorities I am pleased to report that our results for the fourth quarter and a four year 2019 came in above our revised guidance range.
We are encouraged by the following positive developments.
First total fourth quarter revenue was 100 at $12.9 million versus $67.8 million in Q4 2018.
For revenue excluding contributions from all Netcomm acquisition was $71.7 million, if I play, 7% year over year organic growth.
Second yeah, our cable second land, we saw higher revenue for the fourth quarter than we initially anticipated.
Yeah, So quarter earnings call. We noted bad I mean for closing certain larger orders was more protracted they'll wait so what we have stayed pretty destiny.
That's a result I had it for a larger deals that were very close to closing slipped out of the water asked we had hoped so I'm off this quarter has materialized in the fourth quarter.
Quarter cable revenue was $54.5 million is sequential growth up 27%.
CIRCOR well this is lower than what do we have historically thing in the fourth quarter, well now and that's how customers and lower compared to Q4 last year.
We are encouraged by the sequential you increase your revenue, which indicates that all M.S. So customers have a continuing need to invest to meet that growth in downstream and upstream capacity demand, yes, the uniform data subscribers.
There are in wireless we saw increased revenue recognition farmout wireless backlog follow you got delayed I wasn't related to additional features we added to it put out some one off a larger orders for artists revenue for the quarter was $36.9 million.
Including $20 million from knuckle fixed wireless access products for your wireless revenue was $60 million, including $36.4 million from that.
Got partner will discuss this results in greater detail Young kids remarks later on during this call.
Before that I would like to highlight a few points about all business during the fourth quarter and then briefly comment on our outlook for fiscal year 2020.
During the fourth quarter overall business contributed to become more diversified.
As a result of acquisition Netcom and continue to progress in wireless and if its telco in terms of revenue during the quarter.
Approximately 48% of revenue came from our cable business compared to a 52% in the quarter, 33% of revenue came from my wireless business up from 26% in the core and 19% of revenue came from office Telco segment.
In terms of customers during the fourth quarter, we had up for 10% or greater customers, including one tier one north American mobile network operator.
Together these customers accounted for 53% about revenue versus 76% well 10%.
Operator customers during the same pure bred in 2018.
For the 40, yet 10% of greater customers accounted for only 27% up revenue versus 64% for fiscal year.
20 aging.
Turning now to our product areas in cable, we believe that improvement that we saw during the fourth quarter was related to all customers needs to meet demand for capacity prior to any large scale D.A. that virtual caught deployments.
I see in previous quarters, we do see some revenue from new people products, including our D.A. solution as.
However cable revenue.
Well at that period to continue to be overwhelmingly from integrated see cap hardware and software capacity upgrades.
Moving into a wireless as I noted earlier during the fourth quarter, we made material progress are recognizing revenue from our backlog.
At the end of the fourth quarter, our wireless backlogs stood around $22 million. Andy included all Fourg to Fiveg outdoor radios indoor small cells fixed wireless access devices, and our virtual U.P.C. unified cheap.
I'm pleased to report that during Q1, we're continuing to make progress on beauty and these backlog.
Which now includes a sizable fiveg fixed wireless access water well my tier one north American service provider.
The number off all wireless customers today stands at 16 and service providers globally, including three customers farm out and that kind of acquisition.
Yes, fixed the telco, which includes our optical virtual being GE and the fiber to the distribution one products revenue for the fourth quarter was just under 20% of sales. We are starting our 20 twond to fiscal year with a fixed telco backlog all over $24 million, mostly driven by our sales.
Fiber to the distribution point products, that's networks continued to virtualize, <unk> and coverage and the core and at the edge, we anticipate that demand for our fixed telco products in general and our virtual PNG routing, but you called out well increase this year.
I would like now to update you on our trial activity.
Oh last quarter I noted that we were supporting 87 trials with a 52 unique customers during the third quarter. These included 20 in wireless 80 of fixed how Cohen and 59 cable.
During the fourth quarter, we supported 80 trials with a 52 unique customers.
Oh, the 80 trials in Q4 20 are your wireless nine yeah fixed how kind of feet you why in cable up which more than 75% a young people products, including our D.A. and a virtuous you could have somebody shows.
During the quarter. The most notable order conversion was for the large fiveg fixed wireless access and ocean bad as I mentioned earlier was placed by a tier one.
North America service provider.
Additionally, we booked an order for all of which would be in just solar show from a service provider out yet a back.
Turning now to our outlook for Twentytwenty, we're already seeing good traction in the first quarter and I'll start into young with a total backlog of approximately $80 million, including approximately $25 million of deferred revenue.
We see this as a promising start to a year with opportunities for the full range of products we offer.
Not particularly for products you know wireless portfolio, we think that 2020, it will be key besides you network Rollouts as a result, we expect want us to be a material component of our revenue during the year.
I would note however that wireless revenue will most likely be concentrated in the second half of the or in the cable market. We continued to be cautious about M.S. I'll spend a deal are they doing the first half of the which we believe will be characterized by cable customers continuing to add capacity we purchase.
As of additional hardware and software licenses for existing integrated to see cab chassis.
With respect to new people architectures and important catalyst to watch for later this year well be the impact of potentially increased competition from I've T mobile and fixed wireless access rollouts and increased growth in subscriber demand for banner with a t., calling for upstream channels asking.
Our fixed telco segment as I mentioned earlier network virtualization and core and edge coverage has great material opportunities.
Rich would be edgy and a multi service router portals.
With that that we expect our 2024, yeah revenue will range from $340 million, two or $300 million to $60 million, while we're already seeing good momentum in Q1, our guidance reflects our initially cautious view on cable.
And our expectation of wireless as our key growth driver for the Oh.
Oh for organic products and those from our acquired net carbon business.
We think that the second half the well be particularly act people artists as Fiveg networks continue to be a wrote out.
Before moving onto our financial results I will have to provide you some detail on challenges we have laid to our finalize team follow you Maurizio Nicolelli his departure.
Actually I know Scott Bruckner has been appointed interim CFO by the board. We are very grateful to Scott I'll go into step into this role while we search for a permanent replacement in the meantime, I think Scott well do a great job given his expertise in our industry and our company and he has extensive experience.
Corporate finance after more than two decades of experience as an investment banker.
Supportive Scott mass slap in our corporate controller with over 30 years sub accounting at a finance experience will serve as principal accounting officer.
I'm confident that all financial management is very good has.
With that I'll ask onto a comment all financial results in more detail.
Thank you Gerry and good afternoon, everyone I will start by reviewing our full year 2019 financial results and then I'll turn to our fourth quarter results before providing detail on our guidance for 2020.
For the full year 2019, we achieved revenue of $282.3 million, a decrease of approximately 5% compared to 2018.
Revenue from the acquired Netcomm business was $75.8 million during 2019 and as a reminder, we closed our Netcomm acquisition on July 1st of last year. So they're only six months of Netcomm revenue in our 2019 full year results excluding revenue from the acquired Netcomm business revenue decreased 30.
5% year over year.
Total product revenue was $241.6 million in 2019 of which $464.7 million or 68% was from hardware.
I'm $76.9 million or 32% was from software. This compares to $257 million total product revenue in 2018 with $133.4 million were 52% from hardware.
The $123.6 million or 48% from software a higher percentage of hardware revenue in 2019 was due to the inclusion of revenue from Netcomm, which was 100% hardware.
As well as increased wireless revenue in the fourth quarter from costs, which consisted predominantly of our radio products.
Total service revenue for the year was $40.7 million in 2019 versus $40.1 million in 2018.
Breaking down our revenue by product for the full year 2018, $182.9 million were 65% of total revenue came from cable.
$59.9 million or 21% of total revenue, including.
$36.4 million from Netcomm came from wireless.
And 39.5 million or 14% of total revenue came from fixed telecom.
This compares to full year 2018, when almost 100% of our revenue was from cable.
Yeah gross margin for the full year 2019 was 57.6%.
Compared to 73.4% in 2018, and this was largely due to the higher percentage of hardware sales in 2019 hardware revenue included or wireless radio products fixed wireless access products and chassis is in line cards in cable.
Total GAAP operating expenses for the full year 2019 were $171.7 million or 61% of revenue.
Compared to $139 million were 47% of revenue in 2018 year over year, increasing GAAP operating expenses was primarily related to increased headcount from our acquisition of Netcomm.
Also included acquisition related costs and stock based compensation expenses.
On a GAAP basis, we booked a net loss for the full year, a $48.2 million, but this was primarily due to a valuation allowance, we recorded against or U.S. deferred tax asset balance of $35.2 million.
Although we were in a three year cumulative net profit position as of December 31st 2019, and while we do expect to be profitable for the full year of 2020. We also expect to be in a three year cumulative tax loss position. This year. So as a result.
Based on accounting guidance, we felt it appropriate to book a tax valuation allowance.
Adjusted EBITDA for the full year, 2019 was $24 million compared to $98.1 million in 2018.
Non-GAAP net income for the full year 2019 was $2.6 million or four cents per diluted share compared to $81.5 billion or 88 cents per diluted share for the full year 2018.
Now turning to our fourth quarter results total revenue in the fourth quarter 2019 was $112.9 million, which compares to 67.8 million in the fourth quarter of 2018, and 81.8 million in the third quarter of 2019.
Revenue from the acquired Netcomm business was $41.2 million during the fourth quarter and as Jerry mentioned, excluding revenue from the acquired Netcomm business revenue increased 5.7% year over year.
Total product revenue was $181.4 million in the fourth quarter of which 75.2 million or 74% was from hardware.
And 26.2 million or 26% was from software.
This compares to 57.4 million of total product revenue in the fourth quarter last year.
24.6 million or 43% from hardware.
$32.8 million or 57%.
From software.
Hardware sales during the fourth quarter accounted for 67% of total revenue compared to 36% in the prior year quarter.
And again the increase in hardware revenue during the fourth quarter was primarily driven by the acquisition of the Netcomm business as well as increased wireless revenue from core costs. During the quarter that consisted mostly of our radio products.
As Jerry mentioned from an end market perspective, our business became more diversified in Q4, as we continued to make progress in the wireless and fixed telecom markets.
Thank you for approximately 48% of our revenue or $54.5 billion came from cable.
33% or $36.9 million came from wireless and 19% or $21.5 million was from fixed telecom materially from Q4, when we had no revenue from fixed telecom.
Our Q4 2019 wireless revenue included approximately $20 million for netcom and $17 million from core cost and products.
Our consolidated GAAP gross margin for the fourth quarter of 2019, 52.7% compared to 73.2% in the fourth quarter 2018.
The year on year decreasing our gross margin was primarily driven by the higher mix of hardware revenue during the quarter.
Alluding revenue from our wireless radio products and the acquisition of Netcomm, which has lower gross margins.
If we exclude netcomm core cost of gross margins were 66.6% during the fourth quarter of 2019.
Turning to expenses total GAAP operating expenses in the first corps fourth quarter, 2019, $49.5 million compared to $32.8 million in the fourth quarter of 2008 Gee.
The increase in total operating expenses was primarily due to the inclusion of operating expenses from that come from July 1st of 2019.
Headcount at December 31st 2019 totaled 997 employees compared to 1066 employees as of September Thirtyth 2019.
The reduction in headcount was related to eliminating overlapping functions. Following our acquisition Netcomm. Some voluntary attrition as a result of the acquisition.
And a rebalancing of R&D and sales resources during Q4 to address the higher growth that we anticipate in our wireless and fixed telecom markets during 2020.
Our adjusted EBITDA in the fourth quarter of 2019 was $18.2 million compared to $21.6 million in the fourth quarter of 2018.
We recorded a tax expense for full year.
Of $23.8 million, which includes the tax valuation allowance, we recorded in Q4, a $35.2 million.
Non-GAAP net income.
For the fourth quarter of 2019 was $13.1 million.
Compared to non-GAAP net income of $17.3 million in the fourth quarter of 2018.
Non-GAAP diluted net income per share was 15 cents for the fourth quarter of 2019 compared to non-GAAP diluted net income per share of 20 cents in the fourth quarter of 2018.
Free cash flow for the quarter was negative $7.8 billion compared to a positive $2.7 million in the fourth quarter of 2018, we ended the fourth quarter with cash and cash equivalents of $114.7 million and total debt of $293.2 million.
As of December 31st receivables were approximately $94 million a good portion of which we expect to collect during Q1.
The aging of receivables also remains very good with less than 2% at greater than 90 days.
During the quarter, we repurchased 495000 shares for $1.8 million under our share repurchase program and as we've done in the past we will continue to review current business developments to determine the best use of our capital for the coming year.
We've also made very good progress on our integration of Netcomm. This year to date on an annualized basis, we've achieved $6.4 million of cost synergies and continue to be on track to recognize total annualized cost savings of around $7 million. This year you.
We also continue to expect accretion of approximately seven and eight cents per share on a non-GAAP basis in 2020.
Speaking of 2020, I would now like to turn to our guidance for the full year of 2020 is Jerry already mentioned, we expect total revenue to be between $340 million and $360 million. We expect our full year gross margin to be in the range of 50% and 60% which includes our lower margin.
Access device products from Netcom, and a higher mix of hardware revenue that we anticipate achieving our wireless business.
Adjusted EBITDA is expected to be in the range of $33 million and $43 million.
We anticipate non-GAAP diluted EPS to be in the range of zero cents and 12 cents on a GAAP basis, we expect to loss per share in the range of four cents in 16 cents stock based compensation is expected to be approximately $10 million in 2020.
Overall 2019 wasn't transition year for the company with cable still in a digestion phase.
Completion and integration of our net come acquisition and the increasing contribution from our wireless and fixed telecom products.
Looking ahead, we anticipate that momentum in wireless will continue and for all the reasons the Jerry noted.
We expect to see significant business opportunities in wireless for 2020.
In terms of our revenue cadence for the year, we believe that we're likely to see a return to our normal pattern with roughly 35% to 40% of revenue achieved in the first half and the remainder in the second half of the here and we also anticipate that as we've seen in the past our first quarter revenues will be higher than revenues in the second quarter.
I will now turn the call back to the operator to start the Q and a recession.
Thank you.
Ladies and gentlemen at this time it will be conducting a question and answer session. If you would like to ask your question. Please press star one on your telephone keypad.
A confirmation Tom would indicate your line is in the question in queue. You May Press Star too if you would like to remove your questions from the Q4 participants do you think speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Our first question comes from Tim along with Barclays. Please state your question.
Thank you [noise] excuse me two questions if I could.
Maybe just on a on the cable front.
Talk a little bit about the visibility there it sounds like you being a little conservative, but sounds like some of the commentary from the Misos implies will go spending might be tough there might be a little bit more of an equipment bench.
This year. So if you could touch on that and then secondly.
On the Fiveg side sounds like a nice six wireless when could you talk a little bit about what you're seeing in your business for you know kind of just more cellular five G outdoor as well as indoor or and how that looks in the pipeline.
Into 2020, thank you.
And Tim Let me answer this question does as Jerry here as you know that until the cable spending is the notoriously difficult.
Difficult to forecast.
We you know we'd take a cautious approach in forecasting our 12 and 20 revenue from the cable space by we do see that a M.S. those are continuing to span and out we are setting different types of solutions, including.
You bet that short as you know you integrate sicad I saw as da solutions.
I asked to the second question.
The on the on the wireless side you know we you know you know we reported a large fixed wireless when five Gi and we also have a.
Several deals signed a and you know traditional mobile wireless space out working on and ER and Diamond Clewis boasts the core side of the wireless Aswell as.
Hi, indoor and outdoor radio a wireless products.
Tim It's Scott if I could just to add a couple of things I mean, if I look at our backlog. So orders that you know we received in the fourth quarter that we were not talking about obviously in our last earnings call. It's actually pretty evenly distributed across would your he was talking about there's a lot of fixed wireless interest this year our outdoor.
Strand products and our Fiveg radio product is in our backlog now they're components of core both in the corporate network in radio cores and that includes indoor and outdoor radios. So I think you'll see not only in addition to increased contribution of wireless across the full range of.
Products for this year, but a nice mix of those products across the portfolio.
Okay. Thank you that's helpful.
Thank you.
Our next question comes from met a Marshall with Morgan Stanley. Please state your question.
Yes, Hi, this is a chronic on for Matt. Thanks for taking your question.
Just a quick one as you look to the wireless business do you think that business has become more predictable as you've gotten more certifications or is it still difficult to forecast. Thank you.
Well this the wireless business I still at the earliest stage, even though we'd be we see the growth and we see it asset growth driver.
And we Oh, we still feel it's early stages to have Ah Ah you know really long term a visibility by do we do see that us out more it has a better visibility than the cable space.
Okay. Thank you and if I could just follow up where does the gross margin leverage come from and 2020, just little bit more color there would be helpful. Thank you.
Yeah. So by by gross margin leverage I, you know I guess I would point out that the gross margin that we're forecasting is very similar to what we saw in.
In 2019, so we still think we're going to be in a range of about 50% to 60% and that's largely driven by hardware in the in the product mix for revenues. So for that gross margin to go up we have to see more software now there's a trade off there because if we go up and we sized the market.
It's really in wireless, it's our view and I think the industry view in general that the bulk of revenue, particularly in the initial rollout phase is going to come from radios.
There's a lot of deployment that has to happen through densification in fiveg.
But if for some reason we're more successful in selling our software cores, then I think you'll see that gross margin.
Increase but for right now we're being fairly consistent with what we saw in the fourth quarter, what we see in our backlog and then this is also based on our trial activity advanced trials in conversations that we're having with our customers that make us believe that wireless leased for us this year will be more hardware heavy and so we feel pretty comfortable.
With the with the gross margin range that we've guided toward.
Okay. Thank you very much.
Our next question comes from Rich Valera with Needham and company. Please state your question.
Hi, Thank you this isn't they'd hitchcock on for rich.
First question for Jerry.
In the prepared remark remarks, you mentioned that sort of.
Some revenue recognized quarter from distribute access can you provide color on this regarding any quarter over quarter improvements in the business and then you also mentioned.
Additional trials within the virtual see cap space I'm, just wondering if you could provide any additional color on those trials as well as.
Potential expectation for initial deployments off for virtual.
Maybe any color on the competitive outlook in this space.
Yeah, we have thing interest a across the globe well for a distributed paradox Ah Ah being used and either a a chassis based core or aren't using a virtual seek out or combine that with our D.A. nodes. So we have a trials.
In or you know in North America, using and Europe and in.
In Asia Pacific and we have convert as Tommy into a revenue I had with when we were not disclose specifics on those the size of those yet, but we do believe that we're gonna see continuing Ah Ah.
Conversion from trials into revenue throughout a 12 and taught.
Okay, great. Thank you and then just a follow up regarding netcomm. So.
I know, Scott mentioned that 6.4 million and synergies recognize thus far.
I think the initial range was 78 million.
First 12 months.
I was wondering.
As you've already made reduction in headcount on some realignment of sales, thus far where the additional efforts in terms of synergies will come as well as if you could provide any color on cross sell and all that was mentioned.
And our recent conference juries.
Any color there would be really appreciate it thanks for taking the questions.
So let me start on the synergy side do you have very good memory and in fact, we are tracking toward exactly that level. So the six and a half I think was realized a lot more quickly than we anticipated we and most of it is you've correctly noted has come from headcount reductions, where we saw redundant functions and all.
So you know as Jerry mentioned, our strategy for the year, which is focusing on wireless. So we've made sure that we are adequately.
Resource for the large wireless opportunity that we see ahead of us the other large synergy items will come from software integration. That's that's a tougher thing to accomplish and we've always understood that our timeline for that would be 12 months, maybe it slips 18 months, that's still underway and we haven't completed it so we haven't realized savings from that.
Yet and then there is news real estate issue.
It's not an issue. It's just an area of cost savings that were in the process working through right. Now. So we've moved personnel from that particular office and now where I'm working from what we do with that office would comprise a you know also a significant part of the remaining million million into half.
Great. Thank you very much.
Yeah as to what that ER revenue synergy the cross selling we are you at a best trials or Oh several products both on the cost side and.
On a on the next not come side, we expect to sum up that a convert it into revenue opportunities in this year.
Thank you.
Just a reminder to ask a question press star one on your telephone keypad.
Thats Starkey followed by the one key on your telephone keypad.
You May press Star followed by the number two on your telephone keypad to remove yourself from the Q.
And once again to queue up for a question press Star one.
Our next question comes from Tim Savageaux with Northland Capital markets. Please state your question.
Hi, good afternoon.
And.
A question on the wireless.
I guess can you say, whether I think you mentioned you had a north American tier one wireless operator, as a 10% customer in the quarter in Q4.
And I guess my question is that the same operator that.
You have indicated the at the kind of Fiveg fixed wireless access or is there another north American tier one.
And we are Dan different I buy the we cannot disclose the mix.
I didn't ask for names, but [laughter], that's fair enough and maybe I can relate that when you go back to that protect cocky recently, how should we assume that you're millimeter wave Reits reactor that occur in terms of the new when you just go.
Well, we Ah we we are bullish on both the millimeter wave as well as desktop six we've been live both are gonna be positive contributions to a.
To our revenue this year I slas or you know.
Very big boosted.
For the industry.
Okay maybe.
Probably can't say much here, but maybe we can try and relate that.
New Fiveg award to kind of what you saw him or former wireless side of costs obviously your.
We shipped a bunch of backlog in Q4, but.
In terms of the sizes that opportunity.
Size it similarly to to kind of what you saw.
And a 29 seen on your wireless hard we remember talk to a 10% customer.
World.
Okay.
Yeah, Tim it it's a little bit early to talk about it I you know we would not have mentioned it if we didn't think it was a sizable opportunities so without giving any specific details.
When this materializes it would be our expectation that that customer would certainly be in the top 10 list.
Great you know.
Move on from that and follow up on I'm, just kind of the overall outlook for 20.
I mean.
And are making a few assumptions here you know it looks like you're being awfully cautious on cable I mean, you had obviously a tough year in 19.
You know, our you're guiding down 15% to 20% for mirrors that your baseline or I know you've got a couple of moving pieces. You know we've seen peers competitors of yours, including this morning.
Talking about cable network spending maybe picking up next year.
Realize after.
2019 caution being cautious is a good thing, but I'm wondering if you can kind of.
Set our baseline expectations for your cable business next year I imagine at this point with what you've guided to you expect it to decline if not decline material.
So Tim I.
Cautious is correct I think our outlook on cable is cautious based on what has been pretty unpredictable in that industry for the bulk of the last two years, probably about 18 months. What we know is what we've seen over the past 12 months over the past four quarters, which is that on average.
Cable operators had been spending at least with US 40 to 50 million at quarter. So with that in mind, we created our internal budget and our forecast for the year, but importantly, I want to reemphasize, what Jerry said and read into this what you will it. This is a very important near from wireless for us.
In wireless will be our growth driver across all of our products.
Got it I'll pass it on.
Thank you.
Our next question comes from Scott Fessler with Stifel. Please state your question.
Hi, guys. Thanks for taking my question I understand you don't guide by quarter I, just want to see if you could comment on the overall impact of chronic virus on a pack business, if you're seeing any.
So it's it's not just on our apacs business I mean, I think is everybody's been saying the Corona virus is going to have some global impact. So there are few things to observe we have not seen the impact yet and while we are preparing ourselves for disruptions that we may see you know from quarter to quarter, we do not at this point expected to have an impact.
For the full year I'd also mention something else, which I think is very important to serve because certain of our customers have been calling to ensure that we're not going to have supply issues and in fact, they have taken comfort as do we in the inventory that we have built up across all of our products. So it's not just in table and long lead components in our cable.
Products, but also in wireless and in advanced cable, so D.A. and virtual.
And then also our fixed telco products. So we at this point feel pretty comfortable that while there may be some supply disruptions you kind of built a moat around that for the better part of this year.
Great. Thank you appreciate it.
Thank you ladies and gentlemen, there are no further questions at this time.
I'll turn the call back to President and CEO Jerry goal for closing remarks. Thank you.
Thank you everyone for joining us today, we look forward to updating you on our progress next quarter.
Thank you.
This concludes today's conference all parties may disconnect have a great day.