Q4 2019 Earnings Call
Thursday
Dead dead dead dead dead.
Dead dead dead.
Good day, and welcome to the Smith micro fourth quarter 2019 earnings conference call. All participants will be in listen-only mode. So do you need assistance wage signal a conference specialist by pressing the star key followed by zero after today's presentation. There will be an opportunity to ask questions to ask a question. You may press star. There's one on your touchtone phone to withdraw your question, please press * then two, please note this event is being recorded. I would now like to turn the conference over to Charles and vice president of investor relations and corporate development, please go ahead.
Thank you operator and good afternoon everyone. We appreciate you joining us today to discuss with Microsoft for its Financial results for the fourth quarter and year-end results for our fiscal year 2019 December 31st, 2019. But now you should have received a copy of the press release with the financial results. If you do not have a copy, I would like one, please visit the investor relations sections of our website at ww.w Joseph Smith micro on today's call. We have Bill Smith chairman of the board president and chief executive officer Smith micro and Tim huffmeier Chief Financial Officer. Please note that some of the information you'll here today during our discussion will consist of forward-looking statements including without limitation those regarding the company's future revenue and profitability new product development of New Market opportunities operating expenses, and the company's cash Reserves.
Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those expressed or implied by our forward-looking statements.
For more information, please. Refer to the risk factors in our most recently filed form 10-K with micro seems no obligation to update any forward-looking statements, which speak to our Management's beliefs and assumptions only as of the day. They are made. I would like to point out that in our forthcoming prepared remarks will refer to certain non-gaap Financial measures. Please refer back to our press release disseminated early today for reconciliation of the non-gaap financial measures, but that's that I'll now turn the call over to Bill Bill. Thanks Charlie. Good afternoon everyone and and thank you for joining us today for our 2019 fourth quarter and year-end earnings conference call.
Fiscal 2019 was an extremely positive year and an exciting time at Smith micro. I am very pleased with the overall results for our fourth quarter and fiscal year. I'm looking at the results total revenues from operations for the fiscal year 2019 increased 65% to 43.4 million month when compared to the twenty six point three million reported in fiscal year 2018.
for the
Quarter Revenue increase 67% to 12.3 million when compared to the seven point four million reported in 2018.
Non-gaap. Net income for our 2019 fiscal year end grew to 9.8 million or 26 cents per share.
Non-gaap. Net income for the fourth quarter increased to 3.3 million or 8 cents per share.
During the fourth quarter. We delivered strong free cash flow a 4.3 million dollars and for the year eight point three million dollars.
Say fast our family digital Lifestyle Family Safety platform has continued to propel the amazing growth of Smith. Micro. I am sure you are aware. We just recently announced the acquisition of circle media Labs operator Business Circle has been a consistent competitor in the mobile operating a space and we believe that this is a transformational transaction for the company that will help catapult us to the next level by providing us with both exciting new customer relationships at both T-Mobile USA and sky and the addition of powerful new parental control technologies that will further expand and strengthen our portfolio.
Opportunity is the result of the need for Circle to focus their business execution trying to service both the direct-to-consumer and carrier markets is a daunting task.
We believe that there are other opportunities available to us that are similar to Circle that are both the creative and transformative to the Smith micro business case.
I believe that the family digital lifestyle Market is positioned for explosive growth and I believe that Smith micro can and will provide leadership during that time.
Before I turn the call over to to I also want to mention that we believe the recently-approved Sprint T-Mobile merger is good for all parties and we are very odd ideas about the opportunities. It opens for Smith like room, but you also remain very optimistic about Dish Network's Ascension as the fourth month or one carrier.
There a quiz.
The Boost should position dish well for strong growth in the wireless carrier Market. We welcome the opportunity to service both the new T-Mobile and Dish moving forward.
Now, let's turn the call over to Tim to review the financials in Greater detail Tim.
Thanks Bill as Bill mentioned. We recently announced the acquisition of the operator business from Circle media labs for thirteen point five million, which included to customer contracts in a Perpetual source code license to circles currently deployed Parental Control software. The purchase price was funded with the company's existing cash balance.
At the end of December the cash balance was 28.3 million in the short-term. We will invest our excess cash balance to preserve capital in the mid to long-term the company continued to evaluate strategic alternatives for utilization of capital to maximize shareholder return.
Let's talk about the quarter and annual Financial results.
For the fourth quarter, we posted revenue of 12.3 million compared to seven point four million for the same quarter last year an increase of 67%
the wireless segment reported quarterly revenue of 12.2 million compared to 6.9 Million last year an increase of 77%
Our Graphics reported quarterly revenue of $97,000 compared to 480 mm last year.
For the fiscal year Revenue was 43.4 Million compared to twenty six point three million last year an increase of 65%
increase in Wireless revenues was primarily a result of Revenue growth in the safe path platform.
During the fourth quarter of 2019 revenue from safe path grew by 28% sequentially compared to the third quarter and exceeded our Revenue guidance range of 10 to 20% resulting in safe path revenues of 6.7 million.
we
Same path Revenue growth to continue based on recent and expected marketing activities which includes continued retail and call center promotions. These actions are dependent on Spring execution. We continue to support efforts as requested based on the current run rate and activity and including the circle acquired Revenue. We expect safe place to grow in the first quarter of 2020 by approximately 10 to 20% Sequentially when compared to the fourth quarter of 2019.
For the 2019 fiscal year safe path Revenue Grew 435% From approximately three million in 2018 to $18 million in 2019.
During the fourth quarter of 2019, Suite vtt. Subscribers and revenue increased sequentially by approximately 3% to 4.5 million. This sequential activity was in line with our guidance provided last quarter.
For the fiscal year 2019, Suite vtt. Increase 15% from approximately fifteen million in 2018 to $17 million in 2019.
Based on current activity and uncertainties with the Android subscriber base. We are currently expecting, sweet VT to be flat to slightly down for twenty years.
Revenue for advertising during the fourth quarter was approximately $400,000 which was in line with the previously provided guidance. This is a variable Revenue stream and dependent on a third party activities.
For the fiscal year 2019, sweet advertising decreased 53% from approximately two million in 2018 to 1 million in 2019. This decrease was in line with expectations as we entered 2018.
We
Expect the first quarter of 2020, sweet advertising Revenue to be between $100 and $300,000.
Do you spot Revenue was approximately $600,000 for the fourth quarter?
The sequential Revenue decline was directly related to the decrease in device and promotional campaigns from an existing us tier-one contract the loss of a previously mentioned us tier-one contract due to competitive pressures and a delayed launch of the recently-announced contract with AT&T, Mexico.
As a reminder, we separate view spot revenues into two categories fixed and variable. The fixed portion of the revenue is related to license fees and is generally the ring component of the revenue the variable portion of the revenue is related to device and promotional campaigns, which are short bursts of activities resulting in revenue and the volume is off less predictable.
For the fiscal year 2019 view spot Revenue increased 11% from approximately 3.8 million and 2018 prior to our acquisition to 4.2 months in 2019, which was within the previously provided guidance range of 10 to 20%
based on the current run rates and until additional customer wins are announced we expect 20/20 view spot revenues to be flat to down for 20 20.
For the fourth quarter gross profit was 11.3 Million compared to six point four million during the same period last year gross margin was 92% for the fourth quarter compared to 87% last year. The increase in gross margin is a direct result of higher Wireless Revenue.
For the fiscal year gross profit was 39.4 Million compared to $22 million during the same period last year gross margin was 91% for the fiscal year compared to 84% last year.
Operating expense for the fourth quarter was 7.6 million in increase of one point nine million or 33% compared to last year operating expense for the fiscal year was 29.3 Million an increase of six million or 27% compared to last year.
The increase in operating expenses primarily related to an increase in expenses for the view spot business and increase in compensation and related expenses for court current resources as our headcount grew 29% year-over-year.
An increase in non-cash amortization expenses and an increase in non-cash stock compensation expense.
We continue to aggressively recruit and hire resources and all of our markets. We will continue to invest current resources and additional Resources with a focus on the safe path platform specifically around the circle code integration and additional safe path iot device Integrations.
Additional headcount will result in continued growth of the quarterly operating expense run rate.
The non cat Gap pre-tax income for the fourth quarter was 4.4 million compared to a non-gaap pre-tax income of 1.2 million last year.
The non-gaap pre-tax income for the fiscal year was 12.9 Million compared to a non-gaap pre-tax loss of 88,000 last year.
The non-gaap net income for the fourth quarter was 3.3 million or $0.08 diluted earnings per share compared to a non-gaap net income of $939,000 or $0.03 earnings per share last year.
The non-gaap net income for the fiscal year was 9.8 million or $0.26 diluted earnings per share compared to a non-gaap net loss of $67,000 or zero cents lost per share last year.
Within the recently issued press release. We have provided a Reconciliation of our non-gaap metrics to the most comparable gaap metric where the fourth quarter the reconciliation includes the following image of stock compensation expense of $354,000 in tangible amortization of 227,000 and the acquisition cost of 74,000 some of which are non-cash.
For the fiscal year, their reconciliation includes the following adjustments. Compensation expense of one point five million intangible amortization of 930. Mm Mauser transaction gain of 483000 acquisition cost of $152,000 and preferred stock dividends of $119,000 some of which are on cash.
Due to our cumulative net loss over the past few years. Our Gap tax expense is primarily due to foreign income taxes for non-gaap purposes. We utilize a 20% tax rate for 2019. The resulting fourth quarter non-gaap tax expense was $1000000 and the fiscal year non-gaap tax expense was three million dollars.
for
20/20 we will utilize a non-gaap tax rate of 0% which is the expected approximate actual tax rate for 2020.
This concludes my financial review now back to you Bill.
Thanks, Tim. Now let's talk further about our Three core products Suites.
As I mentioned during my presentation at the Needham conference in January you spot delivered within our expectations for the year. However, the view spot revenue for fourth-quarter am impacted by competitive pressures. We experienced at one of our accounts that said we were excited to announce a meaningful win at AT&T Mexico deployment of our view spot product device alive, Mexico is proceeding well with about eighty percent of the retail locations and fifty percent of their authorized dealer locations up and operational.
We see a growing.
Pipeline reviews spot. I am also excited by the growth of our views spot business add Verizon where the product is deployed for direct retail stores and soon. We'll see expansion to indirect retail channels as well.
Adding thousands of retail locations to the deployment.
We have made significant investments in view spot throughout 2019 to grow the product expanding the roadmap by adding new functionality off the current needs of the market as I mentioned on the last quarterly conference call. We are seeing different needs within the market there remained several customers who still seek a high degree of Professional Services and significant testing on devices prior to campaign launches.
But there are also a number of prospects that want to very highly automated process that delivers a different value proposition around faster deployment and accelerated content changes.
The second approach provides quicker results at lower costs, but does limit the use of power features.
One new feature we are very proud of is our Dynamic pricing capability that allows a carrier to adjust pricing automatically by store by City wage by region or at the national level from a single entry at a headquarters location. Overall. I am pleased with the progress made on the product page on the side addressing these Market needs.
We expect to announce new view spot wins throughout 2020.
Okay, let's talk about, sweet, sweet met expectations for the quarter coming in line with the third quarter, sweet is deployed at both spring send to be part of the new T-Mobile and it boosts soon to be part of Dish.
We are working hard with both carriers to map out a smooth transition to the new merged entities to ensure the continuation of calm Suites Roll by providing effective Visual Voicemail services.
We are.
Sweet continues to generate a profitable Revenue stream for Smith micro and remain excited about the product development and new cure a customer potential in 2020. Now, let's talk about safe path are safe path platform had a solid quarter and fantastic overall year in June 2019, as our lead growth engine revenues came in at Seventeen point seven million for the year up over 400% actually 635% to be exact from our fiscal 2018 and up sequentially 28% to 6.7 million on a quarter-over-quarter basis.
We have now delivered eight consecutive quarters of growth as a strong Testament to our team our customers and our product.
Nonetheless, we believe that we are still in the early stages of the growth curve and have a long Runway of success ahead.
The safe path deployment at Sprint delivered growth ahead of our expectations the growth of new subscribers continues to be driven by several marketing initiatives already underway by Sprint with new efforts plan to roll out shortly such as online advertising in that messaging social media campaigns and strong in-store promotions all with a set goal of adding new subscribers onto the platform.
This leads me to talk about the recent acquisition of circles operator business and why we see it as a transformational deal for Smith micro providing us with an enhanced customer and absolute best of breed technology platform.
We've closely studied the activities of our competitors many have tried to Market to the Family Safety sector by launching expensive and slow developing campaigns directly to a consumer.
most of the
Done. So by offering premium models bringing users on for free and then attempting to upgrade them to a paid model.
This model is simply does not work. It leaves a competitor with a maximum cost exposure with minimal revenues.
Some have tried to compensate by marketing to the value-added services Market within mobile operators marketing. The mobile operators is a massive undertaking that requires dedication and patience.
Attempting to execute a strategy of selling the both the consumer and the mobile operator is very difficult.
Circle and made their choice in that provided us with a great opportunity.
Smith micro is one of the few players to successfully partner and prosper with selling through the mobile operator market and we are positioned to Jurassic expand our Market roll our vision for serving the family digital lifestyle Market not simply the Family Safety Market is the big box idea that can Propel our growth
Safe air is not an easy platform to create and that is exactly why we sit in such an enviable position. We enter 2025 strong wind to our back and are excited to see this play out.
So what does this acquisition bring to Smith micro in a high-level first it diversifies our customer base by adding two new key customers T-Mobile USA Earth and Sky in the United Kingdom. In addition. It risks the Sprint T-Mobile merger by putting us on both sides of the consolidation.
Second it brings us significant technology Gap fillers by providing us with robust parental controls on both IOS and Android and provides a powerful in router implementation to extend mobile parental controls into the home on the same platform. We have spoken about the same strategy as safe path home that we had planned on licensing, but now we own the complete technology this significantly accelerates our road in a position us with a killer platform for the market.
So what you will see in the coming quarters is a blend of what we see as the best of each code based brought together for a combined new safe passed 7-0. That will be the most powerful connected life platform in the market for white label solutions for cable mobile and satellite operators that will launch in the second half of 12.
Let's look at the two new customers. We added that has significantly expanded our customer relationships.
I want to know that we have spent a lot of time with both of these customers during the diligence process and I am pleased to say that they are excited about working with us off in the press release. You saw Circle did approximately four million dollars in revenue for their operator business in 2019, which was directly tied to fix the contracts with minimums, which frankly for a start-up is typical as they need guaranteed cash flow.
I also
So should know that both customers invested directly into Circle as well.
We will be working in 2020 to align these contracts more with our per-user license or rev-share contracts. We have historically done on a subject will not be a surprise to either account. I look forward to updating you on our progress throughout the year.
In closing we are very excited and bullish about the Smith micro business case entering 20 20 and Beyond we have a great team in place poised to exit strategy going forward and plan to continue to lead the market by delivering best-of-class mobile software for our operator customers.
2019 was a great year, but 20/20 should allow us to make a real statement about our role going forward.
business
Is about execution and we are here to get it done.
With that said I will open for questions operator. We will now begin the question-and-answer session to ask a question. You may press * then 1 month or touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys to withdraw your question, please press * then two at this time. We took momentarily to assemble our roster.
Our first question comes from Scott cereal with Roth Capital, please go ahead. Hey, good afternoon. Thanks for taking my question. Nice quarter guys. Nice to see a safe haven in the storm out there to Dive Right In on the safe path Circle front your guiding for 10 to 20% sequential growth into the first quarter. Just wanted to clarify. How much circle is in that number to kind of recalibrate the organic safe path growth within Sprint. And then what's the number that you're looking for for Circle in twenty-twenty? I know they did four million in 2019. Is that kind of the Baseline and then I guess extending into that bill you you indicated starting to have discussions at some point in 2020 related to pers subscriber pricing. Does that mean you expect something to get done in 20 20 or we should be thinking more about twenty Twenty-One and Beyond and they had a couple of follow-ups.
Hey Scott, thanks. Thanks for the question. First off in the guided growth attended 20% sequential. There's roughly 500,000 K of of circle Revenue in in that number so you can build that into into your model as far as expectations for Circle. As long as we go to the year. I think that four million on an annual run rate is your number until we come back and talk about a renegotiated contract and what those expectations may look like when that event happens. I'll let Bill add comments on on how that timeline may look from our expectations.
Yes, Scott, I think the way I'd look at it is this you have a very large installed base coming over to the new T-Mobile from Sprint. Do you have installed base coming over to the new T-Mobile from the circle side as well at T-Mobile but the spring size large so, there will be a need to reconcile these two products. I'm you know, I expect that there will be a strong need to come up with a single product that meets the needs of the new T-Mobile going forward and at that time that would also provide the opportunity to work out a deal with financial deal with the new T-Mobile as far as on Sky. It's a smaller installation, but we think it has growth and wage.
look forward to
Working, you know with them as well to try to bring some of the new technologies that we have that were not presently Circle, you know to talk to them. And of course those need to be paid for so, you know, I think that's how we kind of look at it and both cases. I think there's a a need for a single powerful productivity that you know really speaks to the needs of the market and we're building that and that product will be done and we will launch it in the second half of 2020 and not you know, obviously we would like to be paid for what we're offering them. Got you very helpful and and maybe just a follow-up bill in terms of safe path and circle back. Like now you're getting the best of breed in both worlds from location and parental controls, but there's some integration that's required. It sounds like from a source code standpoint to to bring the platforms together. So yep.
Is there a timeline in expectation that you?
Got Associated, you know with that, you know, is that sometime in 2020? When should we be expecting some of those those feature sets of be integrated and upgraded and then I guess follow up on that front given the reaction in the market place to to the acquisition. I'm wondering what the inbound call level is that you're seeing from incremental and additional carriers and if there are any restrictions you got in terms of the source code and the ability then to go out and sell to other carriers. Thanks. Okay. First off, we have a project underway and fully staffed in in internally to merge the code base. We are on a course to try to have the the basic fundamental of work completed from a merge standpoint in the next quarter then another quarter to go through testing and integration such that we are looking to Thursday.
punch that product
In the third third quarter of this this year. So that's kind of the time timeline. We have a very focused effort underway to make that happen. We also at the same time, you know, we will also then launched the safe home side for the end the end router Cape capabilities Thursday. We see that as another big growth engine that goes on top as far as with other carriers.
If there's one message that I think it drove home is that to other carriers is that we are serious. We do want to to dominate the space. We took the lead and they they they are open to that. There is nobody else that sits in our spot that can really effectively provide that kind of leadership. So I believe that this merger is going to significantly help us in growing our customer base and I look forward to talking about Thursday in 2020.
Great. Thanks so much. Nice quarter again.
Our next question comes from Josh Nichols with B Riley FBR, please go ahead. Yeah. Thanks for taking my question and great to see continued strong growth particularly have a safe path platform. In fact, I did want to ask looking, you know below the top line with the circle acquisition weather. Are they going to be much topics or expenses associated with that since you really just did acquire the operating business. I'm trying to get a handle on what the expectations are for kind of like eBay or UPS profitability with the circle additional Revenue.
Yeah, Josh says good question. So Bill mentioned the code integration activities. So you should expect some higher than normal increases in our operating our operating expense Trends specifically in the second and the third quarter as we as we invest money in that code integration project. We are initially Staffing that with internal resources, but we're also going to continue on our aggressive of hiring from a similar to what we did last year also separate but related to the operating expense as a reminder and the first quarter we do typically have a higher wage tax run rate associated with different conferences this year Mobile World Congress for instance would have occurred in the first quarter. It didn't log
A lot of those costs are sunk.
Already, so I just a reminder about that and also we participate in in a in an extra sales conference this year which was specific to our our largest customer and sponsoring that an event for their sales team. We were really pleased with the outcome of that event, but there'll be a couple extra hundred thousand a couple of extra 100,000 dead in the first quarter Associated to that. So just a little extra color on FX. Hopefully that was responsive. It's a very helpful thing and then I did want to talk about to be clear you gave some good guidance about some the overall outlook for the three business units, but I'm assuming that the outlet that you gave also did not it doesn't include any Mateo new when's and how does the company feel about their prospects going forward and I assume that that would cause an update and guidance at that point.
yes as as we've done over the last year since we've
Turn the ship around and started moving up uphill. We have not baked in new significant wins in our guidance that we provide. Our new wins goes on top. I would say that we talked about the fact that we expect new wins on The View spots side wage, but more importantly I think that we are very active on the safe side and we will be focused on that and we hopefully will be giving you some positive news as we move through 2020 Great and then last question for me then the great job on the same path with growth and then also immunizing right the the risk going forward, but I did want to ask could you kind of compare briefly you think about the cam sweet Visual Voicemail offering and how that Stacks up to a T-Mobile current log?
Yeah, okay. So on the conflict side, you know T-Mobile has
For T-Mobile has a customer base which is somewhat younger and therefore maybe not quite as focused on on things like Visual Voicemail than what Sprint has offered. This is there's one difference. They have an offering I actually think ours is probably stronger and better and we'll see how that works out. We have two customers going forward with, Suite 1 being the new T-Mobile the other being dish. I think that for for Dish it's an opportunity to generate additional revenues and I think we'll be well received for T-Mobile. You know, this is one of those areas that off, you know, I think we're fine for twenty twenty and we'll see how it how it develops going forward.
Thanks. That's all for me pass the Baton.
Again, if you'd like to ask a question, please press * then 1 our next question comes from Jim McGill with Bradley Woods, please go ahead.
Yeah, thanks and good afternoon. The view spot customer that you had problems with in Q4 did did that occur early in Q4 or late. I'm trying to gauge how much of the impact that customer loss had to close early. Yeah, it was early. Thank you.
And as far as the cam sweet.
Guidance Tim. Are you assuming that you get much of anything from dish or is is the guidance based on what you have in hand wash?
Yeah, it's it's based on what we have in hand right now and and current run rates.
Okay.
Thanks. Can you just talk a little bit about the prices to the customer?
By the end user let's say safe safe path versus Circle. Just trying to understand maybe the Dynamics of what happens is the as the offering this merged and I'm trying to understand, you know, the pricing that you have inherited with circle is obviously can have a the prices of circle obviously have an impact on wage you handle that renegotiation of the circle deal.
Yeah, so Scott Scott, I'm sorry Jim the circle deal to Smith micro now with the the customers are relatively fixed in nature. Right? So regardless of of how they go to market and and some of them go. Some of them are not going to Market that is T-Mobile with a subscription. Some of them are going to Market that being Sky through a premium offering right the the fee coming back to us is mostly fixed in nature. There's a slight variable component, but it's mostly fixed and then to the to the market one of them has it deployed One customer has a deployed as a as a subscription check. The other one has a deployed as as a premium offer. So it's it's built into an additional service that they're offering their premium subscribers, basically, so there is dead.
It's really a direct feed correlation.
To to that deployment.
Yeah, they think that so and the the cost is $999 at T-Mobile what they charge for their family.
Which is the same price the same price as basically the same.
Okay, so just conceptually as we go through the year you you have that four million of fixed Revenue coming in at some point. You may call it near the end of the year, you know, maybe we start you start migrating to a per-user type of Revenue.
And at that point we'll have to figure out whether or not the customers want to pay that potentially a higher fee. I mean, who knows but we might have a little bit of a transition issues as you migrate to that new contract. Is that is that a fair way to look at it or am I being too pessimistic?
Well, it it is a way to look at it. I think that.
Think there is a strong desire on the part of T-Mobile to have some of the functionalities that Sprint already had and therefore there's value there and I think that I don't see it as necessarily being that difficult a task as long as everybody's rational.
And I expected that's what will happen.
Got it, also.
Tim it seems at least on my projections. It looks like you're going to generate a healthy healthy amount of cash. This year is off its most of that targeted for additional Acquisitions for the platform or is there no specific use that you're contemplating right now.
Yeah, nothing nothing specific at this point Jim, you know in my opening paragraph. I I did acknowledge how much cash we had in the net amount and you know in the long term, it's really about Capital preservation and protecting that and and we would we're constantly looking at opportunities to strategically deploy that obviously the Circle Track the action was one of those in our mind a strategic deployment to to add value to the platform and and generate future profits. So we'll continue to offer you 8 that as as needed.
Okay. All right. Thanks a lot. Actually Jim. I think I think another way to think about it also is as we get closer to the point where we can start to see additional large carriers that who might want to deploy this product, you know, there will be an investment that will need to to be made to support those carriers as as well. So, you know, it's not just about
fine competitors. It's also maybe about supporting new customer growth. So it really Cuts both both ways.
Right, right great. Thanks. Thanks for that reminder Bill. Appreciate it. Okay. Well, congratulations on the quarter in the acquisition and good luck with the with the integration. Thank you.
This concludes our question-and-answer session. I would like to turn the conference back over to Charles Manson for any closing remarks.
Again want to thank everyone for joining us today. We'll look forward to talking to you actually quite soon on. Our first quarter call will also note that will be attending the Roth conference. So if you happen to be there, please sign off. I would love to chat with you till then. We'll talk later. Thanks guys.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.