Q1 2020 Earnings Call
Ladies and gentlemen, thank you for standing by welcome to sell it comes first quarter, two 720 results conference call.
Participants.
Anymore.
From a presentation.
So the question answer session.
This conference is being recorded.
The company's press release.
Please contact Silicoms.
She can't Buster on public relations.
For six 680 559.
Section of the company's website.
Sure.
I would now like to hand over the course.
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Restoration, Mr Health would you like to begin.
Thank you operator.
Welcome to see any comes first quarter.
Uh huh.
Oh stock on that to draw your attention to the following safe Harbor statement.
<unk> conference call contains projections or other forward looking statements regarding future events or this is your Cogs in the company.
The only predictions I may change is gone.
Not a strong any obligation to update that information after an event always asked my doctor maturity from those projected.
Already here and the results of highly encouraging I know for suspension revenue.
On a limited number of customer ordering crowd based.
And at the edge market speed, an extent, which solutions are adopted by these markets.
The last year that who would it be languishing young customized solution Robbie Marcus.
Touching encouraging dependency on a smaller number of larger customer.
It's a good to go merchandising and marketing city across products and services, maintaining and protecting brand recognition.
Actions off conjecture property competition.
Suction swapping et cetera and development.
Along with general disruption to the entire world economy relating to this bad on the novel Corona vibrant Oh, probably 19 and other factor.
And then I couldn't find that accompanies would you actually see.
In addition for and the government disclose at such a non-GAAP financial measure in todays earnings release, such non-GAAP financial measure will be discussed during this current.
Such non-GAAP measures are used by management will make strategic decisions focused future results and if I had the company's current performance.
Mentioned believed that it doesn't change of these non-GAAP financial measure.
This understanding and assessment on the company's ongoing corporation and person for the future.
Otherwise stated it should be assumed that tranche and discuss.
Okay got her view on a non-GAAP basis.
Get production measure the scrub imagine I provided as I'm sure information to investors.
In order to provide them with it and I'm talking method for assessing all financial conditions in operation.
These measures are not in accordance with our substitute for gap.
That's where we can finish among get to give financial measures, including in today's earning release, which you can find onto the converged and.
Www dot to become dot com.
Right. After the Undercar research I go over and you know and you so I'm glad to see from.
Thank you.
Results for by Ron will provide the actions of the financials.
I don't all other causes a question answer session.
With that I would now like to handover the call to shake shack.
Thank you.
I would like to welcome all of you would look on for US go to discuss the first quarter of 2020.
I Hope you and your family stay healthy during these unprecedented times and I wish all those who have been impacted by the virus speedy recovery.
We reported revenue of just over $22 million 40 quarter inline with our updated guidance of between $21 million to $22 million and 15% below the original guidance. We issued in January prior to the global spread of the growing up and I mean.
Reporting out were 61st quarter of continued profitability. We are pleased with our financial results achieved during the unprecedented working and logistical challenges that the current pandemic as opposed to for US which includes supply chain interruptions component shortages and delivery delays in the second topic.
The first quarter.
Broadly for silicone 2020 was off to an excellent start and we had strong expectations for the year before to global effect of the pandemic began to materialize. We therefore believe that was the major impact of pandemic underwater. These behind US we returned to the strong growth trend that has already started.
Yeah.
As you know by mid February the business environment started changing rapidly.
During this period, our top priority is ensuring the health and safety of all our employees as we continue to serve our customers around the globe.
To achieve that we eliminated international driver by employees and took steps to implement social distancing at all or facilities, we provided the infrastructure and implemented work from home limiting the office to only those workers, whose physical presence was essentially.
Face to face meetings have been minimized and we are utilizing video conferencing wherever possible, including for customer and remote support as well as for business development and sales meetings.
We continue to follow local authorities directives as they develop and adjusting as needed.
Despite the logistical working challenges the covering 19 pandemic has created for everyone, including US we've been successful at mitigating most of the challenges the pandemic presented.
In early April a major systems integrator placed a $15 million purchase order for our intelligent bypass units due for delivery over the next 12 month. This design win follow the long process, which began in mid 2019 that concluded with a thorough evaluation demonstrate.
Turning to superiority of our technology and products.
This customer we use our units for an infrastructure project for the government of one of the world's largest economy.
The large volumes for adjusted by this customer demonstrated our traditional products continue to offer a good base for our future growth.
Furthermore, this integrator that has now standardized on how it technology and product in a significant player in this massive government infrastructure market.
This increases the likelihood that we will become its de facto stands out as they continue rolling out their next generation of networks and Datacenters, both for this product and for our edge and BJ product.
We see this relationship bringing us significant strategic potentials.
This win is also a demonstration of the fact that overall business for Silicon continues as usual and that means that our growth process continues as planned we continue to work hard to bring new design wins, our pipeline is getting deeper and broader and the first quarter of 2020 was no doubt.
Brent.
We continue to focus on implementing our strategy under which we are offering full solutions comprising of edge compute units at PJM, None SPJ offload solutions Nics and other elements of this solution.
What this means is that the various legs of our business on top of representing Standalone opportunities with customers, which are looking separately for an edge compute node PJ car standard server adapter or and not PJ also cod no greater neuner line of opportunities whereby customers are looking for an.
Edge compute node, which is already integrated with an average age and or another offloading card with or without an acre Chandra.
You are quite unique with this kind of capability. This creates an important advantage for us moving forward.
We're very pleased with a positive response that this strategy has seen from the main market segments detour addressing and specifically the telco space.
We are working with our current customers potential customers Oems and software vendors, which are looking for hardware solutions to maximize the effectiveness of their solutions in this telco space both in the datacenter and at the edge and most of them seem to be looking at exactly our unique capabilities of being able to provide a full solution.
Which would provide the best performance for their offerings.
We believe this process will continue and become an important driver in our future growth.
Also underlying fundamentals of our target markets continued to be attractive and present high growth potential in a post pandemic world over our history, we have successfully navigated through many market cycles, our foresight and investment in the right areas being ready for the various technology trends.
As they emerge have enabled us to consistently emerge at better and stronger company and we believe that this will be the case again as we emerge out of the current pandemic.
With regard to our guidance as you can imagine right now we have limited visibility due to the pandemic. It is therefore very difficult for us to issue quarterly guidance with reasonable certainty. So for now we have therefore decided not to issue guidance for the upcoming second quarter.
While it is too early to predict when the disturbances due to the pandemic we've completely disappear we're optimistic that once that happens and given our strong roster of existing design wins combined with growing interest from all key market players, we will benefit from solid double digit compounded.
Annual growth over several years.
Before summarizing and moving over to arrive I know that as of Q1, and Silicom has $80 million in net cash providing us with significant financial flexibility. It gives us more than enough working capital and enables us to continue to invest internally in our R&D.
Efforts and continue on our business development activities as we originally planned ultimately fueling the long term growth of our business.
At the same time, it gives us more than enough working capital to whether the current environment.
Furthermore, it also allows us to share their rewards of our continued profitability and cash generation with our share orders and today the board of directors authorized and new one year share repurchase plan, allowing the company to purchase up to $15 million of our ordinary shares in the market.
Our current one year $15 million buyback plan will expire tomorrow.
End of the first quarter under this form of Glenn we had repurchased about 410000 shares of telecom for a total some of approximately $13 million.
In summary, our focus has always been investing and building our business for the long term. We're excited with regard to the prospect of other growth engines, the edge related business as well as our SPJ solutions for cloud and telco Datacenters cyber security and Fiveg, all of which had the potentially could be.
Some significant growth driver for us the long term opportunities for Silicom, Indeed still remain huge.
I'd like to repeat what I said last quarter, we believe the upcoming few years will be much greater than what we have achieved over the past few years.
With that I'll now hand over the call to Iran. For a detailed review of the quarter's results and Ron. Please go ahead.
Thank you shy current the low everyone.
Revenues for the first quarter.
2020 or $22.2 million.
This is compared with revenues of 30 million point too as reported in first quarter of last year.
Our geographical revenue breakdown over the last 12 months were as follows North America, 70%, Europe, and Israel, 23% far east and the rest of the work 7%.
During the last 12 months, our top three customers together accounted for about 35% of our revenues.
I wouldn't be presenting the rest of the financial results on a non-GAAP basis, which excludes noncash compensation expenses in respect of options and RSU grants to directors officers and employees as well as acquisition related adjustments.
For the full reconciliation from GAAP to non-GAAP numbers. Please refer to the press release, we issued earlier today.
Gross profit for the first quarter of 2020 was $7.3 million, representing a gross margin of 33% compared to gross profit of $10.3 million or gross margin of 34.1% into first quarter of 2000.
And 19.
Operating expenses into first quarter of 2020 were $5.7 million compared with $5.9 million into first quarter of 2019.
Operating income for the first quarter of 2020 was $1.6 million compared to operating income of $4.4 million as reported in the first quarter of 2019.
Net income for the quarter was $2.3 million or 10.3% of revenues compared to 4 million or 13.3% of revenues in the first quarter of 2019.
Earnings per diluted share in the quarter were 31 cents compared with 52 cents as reported in the first quarter 2019.
Now turning to the balance sheet.
As of March 31st 2020, the company's cash cash equivalents bank deposits and marketable securities totaled 79 point.
$79.9 million with no debt or $11.05 per outstanding share.
That ends my summary, and we would all be happy to take any questions.
Operator.
Thank you ladies and gentlemen.
I will begin to question and answer session. If you have a question. Please press star one Intuit accounts. Your question. Please press star too.
You think speaker equipment.
Pressing the numbers your question, we pulled in the order they receive please standby only poll for questions.
The first question, Alex Henderson Needham and company. Please go ahead.
Hey, guys.
I was hoping you could just start off a little bit of discussion between whether you some pressure on supply and logistics.
Does it.
Challenge or whether you also saw.
An increasing falloff in demand.
Related can you distinguish between the pressures.
In the March quarter, and what you're thinking might happen.
Into the June quarter between those two issues.
Yes, I mean, so almost.
All of the issues.
That we have experienced weather related to supply now within the supply.
There are a few different issues at the beginning what we saw was that our vendors for specific components and mostly those which are I would say make components rather than standard component.
Delayed in their delivery and that is because they were under some sort of quarantined many of them in China et cetera. So we didnt have delivery dates for the components that we ordered from these vendors later on they started to come back and they started to deliver and at that point.
And we started to experience to different stipes again of delays one type was what I would say our subcontractor, who is doing day installations and then later on bake in London and quarantined. So we were not able to get a systems out of them, even though we already had.
Other component, but then they were not able to ship these components to us.
With that was the next phase and that in parallel with that there was another bank, which continues even today second thing to a certain extent continues even today as well and that was transportation difficulties at transportation difficulties is mostly because of as you know I mean major changes with the allies.
So it was much more difficult to fight a flight flights that were scheduled for cancel than we did not receive what we were supposed to receive on time, we're not able to ship on time. So these three types of difficulties they were the main.
The main difficulties.
Now we have not seen any reduction in the demand whatsoever. The only thing that I'm, saying is that once we delay what we delivered to our customers right now so everything the whole process is getting delayed to a certain extent. So I mean, I'm, assuming that would have some sort of an aspect but.
Noted actions whatsoever, no cancellation of Peos nothing of that sort.
Okay. So the expectation is in the disease supply constraints logistic challenges.
Transportation insulation challenges hall or persisting into the June quarter at about the same level.
That you saw in the March quarter or is just gotten worse.
No I.
It's unclear I mean, I would say that what is characteristic of what was happening to us towards the.
I would say the second top up at March was so price and we continue to be surprised I mean because.
We get a committed dates from our suppliers of vendors or whatever and then we got a surprise and this is why is I'm, saying that it's unclear I mean I don't know is that would be exactly like that in second way in the second quarter worse or less we continue to have some surprises we tried to.
Mitigate the surprise us some of these we even tried to mitigate by and multiplying the number of sources that we work with and that would probably help us towards the end of the quarter and possibly towards Q3. So it's unclear and that's why we're saying there is no visibility I cannot say that it's becoming worse, but.
Yeah.
No surprise US you know I mean, there is a certain.
As a vendor to US for example, who was supposed to supposed to go out of quarantined by a may search and then just about I think two or three days ago, we gotta and notification from am that his quarantining is extended until may 21st or something.
That this continues to happen and we try to mitigate that but thats why its unclear I cannot say that's going to be worse cannot say that it's going to be better.
So just mechanically that timeline on these components so what does the.
Production time from you guys get into production of the components in two turning it around in terms of finished unit getting it out the door.
6363 to six weeks kind of.
Production time, and therefore, if it doesn't get resolved by pretty much. The end of may you'd start to have challenges getting product out the door or is it shorter than that.
This is more or less the case between I would say four weeks to six weeks to deliver from the time that we have all component, but you should remember also that some of these surprises are coming from our a.
Contract manufacturers.
That.
A are doing installation as well so today, we may get some surprises there as well on the other side I mean, some components. We can install later on so some components, even if we get them one week before the delivery. If they are just a part of the final installation than we can still go ahead and deliver on.
Hi, so it depends on the specific component.
Shifting gears could you talk a little bit about the dip in the gross margins in the March quarter, and whether you think that will persist is that a function of is some increased costs on expediting things or transportation or logistics are spending.
The.
Purchases around what caused that while I think that.
Well first of all of course, we are within the.
The spectrum that we view defined 40 gross margin, which I believe we said is between 30% to 36%.
I think the main reason for that debt. This quarter is indeed, the mix of products, because we sold more of the edge products and this quarter, even though I think that there was some expediting fees as well, which were the possibly a little bit more than usual, but I think the main reason is the mix of product.
Right and so do you expect that persist.
That mix given the environment or.
How do you see that playing out.
As we go forward.
Hmm.
Well I mean looking about the full year I'm not sure whether exactly this mix will persist.
I believe and hope that we will continue to sell more.
Its product on the one side.
But on the other side you cannot tell especially with these surprises so I wouldnt they'll say that we that our gross margin would be between 30 to 36 because.
We could.
Easily a change just I mean, a certain amount or a certain percentage of the mix of product in order to be up by one what in half percent and that would change.
That would be represented as a change in our GP I mean take for example, and this.
Last when that we have announced this is a traditional product so our margin there should be a little bit higher end.
At least part of that would be.
Sold during this year, so it's a little bit difficult to tell exactly where we would end up between the 32.
<unk> percent.
Just following up on that question the contracting you won.
You said part of that is this your thoughts if that was 15 million in the first year.
Remember that wrong no I mean, you remember it right I mean, we said that we sold within the next.
12 month, which means that part of that would be within this financial year within that 2020.
Yeah.
So.
Going back down to the Opex line R&D was pretty pretty normal, but you did see.
Sequential decline in.
Sales and marketing Jna I assume that shelter in place kind of.
Dynamics are helping there is that.
Right mechanics of why that happened.
In a way, yes, I would say that some things are very evident in here I mean, obviously, we had and less travel expenses. This year this quarter starting at a I don't remember exactly the days when we terminated at all.
All at beginning of mortgage was March came in at it all flights.
And even before that I mean, we have decided to I mean flight to China and too far east and were terminated even before that so that was a part of that.
I think the shekel helped us help or on maybe you can comment a little bit more on that one yes. This show like I mentioned the shekel the dollar helped us this quarter.
The dollar was was.
Stronger this quarter compared to the previous quarters, which means that we had a positive effect.
On our operating expenses, which decreased the total amount offer for opening expenses.
In the amount of.
More than one on the K.
For the quarter.
Just to be clear you don't hedge on the shekel correct.
Okay. Just one last question and I'll cede the floor can you just update us on what's going on in DST wind space both on.
No we haven't basis as well as.
What's going on relative to the.
Service provider.
Related business.
It does seem like Thats one of the few areas that has benefited significantly from work from home.
Is that showing up in the demand coming out you are you seeing any pickup in demand there as a result of that.
Any thoughts along those lines would be helpful. Thanks, Yeah, well and I, we are seeing an increase in the ban in demand.
In that space, specifically, the low end devices.
And we're seeing customers requesting more of these and they tell us explicitly that this is due today.
Yeah.
Hey work from home initiative. So we do see that on the one side, we see a little less on the higher end units, which are mostly targeting the enterprise were our customers or even telling us explicitly that this part of their businesses suffering a little bit, but overall I mean.
They do see an increase due to a significant increase in the work from home. So we do see that happening than in general.
We believe that we would be feeling that during the year, that's what they're telling us.
We have received I would say unexpected fios.
Even.
Due to that.
We were not able to deliver immediately obviously.
But still I believe that overall definitely SD Wan, especially at the low end will increase this year.
That would suggest to me some margin pressure from that is that reasonable to expect yes, yes.
Okay, great I'll cede the floor. Thanks.
Okay.
The next question from Robert Sussman of Bentley Capital. Please go ahead.
Thank you can you give us an idea when you might start to ship that 15 million dollar order and or the shipments there being held by the problems that you're having with your supply chain.
No we hope.
That we wouldn't have problems, but even if we do I mean, we believe that we will ship it in the start shipping in the third quarter of this year. This is a standard of the shelf system. So we do not expect any other problems other than supply. So we're working hard right now to get older components needed to stay.
Shipments and we believe that we will begin shipping in the third quarter of this year.
And you said when you made that announcement.
Customer or.
Integrators said you should expect more orders.
I assume some from.
There are same customer is there.
Just the only government that might want didn't want to go through and upgrade like reinsurers.
Potentially many governments.
So that it could be a very large source of business for you.
Well I would say that I mean, I do not thing.
That there is a very significant chance I would say that this specific integrator would sell the same concept as it is to other governments.
Now that doesn't mean that our product would be wouldn't be sold to other governments and we're trying to achieve that but I don't think that this would happen through the same customer of ours right now however.
Even though this is a huge project. This customer is telling us that this is just a fraction of why he expects would happen even within this specific government.
And therefore, we do believe.
That.
This customer could represent a strategic growth driver for us not only with this product by the way because now we might away. This is not.
The first product that we sell to this customer only what do we sold up until now we're not that was not that significant and therefore it was not used or we were not able to leverage debt to really create a relationship with the customer with this kind of Big project me.
Leading Stephanie has with that the transparency that we demonstrated to them in our schedules in our design et cetera et cetera.
And now they actually award we feel that now we really have a relationship with them now their needs include both this product to many other potential installations within the specific government as well as other products because there are a major integrator in that country that that we're talking.
About and they would have significant demand in various areas. So they strategic value of this relationship is now both for exactly the same I would say government projects with this specific project.
As well as two other products, which would seem to fit into many other government project.
Each discussed summer may be involved.
The company buyback any stock during the first quarter.
Yes.
We repurchased almost $5 million during the first quarter.
And the cash drop there was a fair amount there was maybe in eight or $9 million drop in the cash is that because of working capital needs. As you were unable to ship. So you had to build inventory.
It is mostly connector to the to the buyback.
The buyback is cash out so most most of the decrease derives from from the buyback.
Okay. Thank you very much.
We have a follow up question, Alex Henderson Needham and company. Please go ahead.
Yes, good unless you guys get off the hook without precedent little bit.
On the.
Forward looking for.
It sounds like you're kind of thinking that the trajectory into the current quarter.
As a wide just.
Dispersion intense you can't forecasted, but the dispersion seems like its.
Potentially as much sequential improvement as sequential promotion.
Hence the.
Expected value would be roughly in the middle lie flat sequentially is that right way to think about it.
Yeah, I mean could be yes.
[laughter] could be I mean, you know there is I don't know wants to both directions, whether they meet in the middle or not I cannot be sure but.
It's a reasonable thinking.
Okay and then so.
Given the demand is reasonably healthy.
And you Havent seen erosion in demand.
Sure. This is impossible question to ask but.
My job to ask it anyway.
So as we move out of the June quarter, assuming conditions.
Gradually start improving any reason to believe that.
Don't make up some of this demand into the back half and.
Hi, how are you thinking about.
Conditions are the back half at this point and I realize sisters again huge dispersion of potential results I mean, it really is difficult to respond to that the only thing I'm, saying is that the demand does not appear when we will see it again.
Not so sure about because things are delayed from us and Q3 is dependent on what happens in Q2 and.
And so on and so forth and also I want to customers because while I don't think that that demand will disappear, but once something is delayed and they miss a certain date then they may move each to another quarter or whatever these things happen as well. So it's really tough to say what will happen in Q3, and Q4, but overall I'm pretty sure well I would say.
You can never tell what happens, but I don't see any signs for that demand to disappear.
So so can you talk a little bit about what portion of your businesses.
The traditional.
Appliance related stuff to two sold into a variety of enterprise customers as part of their systems business.
As opposed to what I would describe is the newer.
Securities flush see when slash service providers slash cloud related stuff that you're doing.
How do you see those two businesses in terms of mix and visibility clearly listening to the earnings results of Facebook and.
Microsoft and.
I'm sure Amazon will be the same when they report the cloud world.
Seeing very robust demand growth for enterprise is obviously more challenge so is there any.
Can you give us any help and thinking through that variance.
Well I mean, we do not provide the specific.
Greg down between the various markets and part of that is because it's a little bit difficult to do that.
You may note that even with our traditional customers some of them are migrating and from what they used to do into the new space. So that makes it even more difficult to say, which market, even though we tried to say it to analyze what we're selling and looking at end customers as well.
This is something that around can provide.
But as I would generally say that.
Looking at our traditional markets that were flat or a little bit less than flat. Obviously this new design wins makes it easier for us on the traditional.
Aspect and we expect all these new markets to grow.
This is what I consider that without providing actual figures are numbers.
Can you talk a little bit about the FCA products and to what extent.
Seeing any inflection in terms of.
Design activity in like.
Yes.
Firemen.
Helping you with design wins or is it.
Roading your ability to deliver new wins coming down the pike, well I think that what is actually happening with our PPA is is really interesting and I was referring to that and when I was talking at the beginning.
And I think that this is.
Something which is very encouraging because what we see now on top of the pipeline that we have for just SPJ cards.
Which is healthy by itself, but we see another trend, which for US is extremely important type thing and that is the trend that many of our potential customers I now seeing that actually they can combine.
And get from Us.
Solution on which they would run their software which includes both the compute node, which is actually our AD units and SPJ caught which they would use to offload the CPQ within our compute node and some other I would say cards or mechanisms, which we used to some other next or offload mechanisms.
Together to create optimal solutions now this is something that I don't think they can do with anyone else now because most of these solutions are also based I would say on Intel architecture, we're receiving significant assistance from various Intel divisions and organizations.
And altogether this create demands from us for something that you're almost only once who can provide so customers are coming to us whether its into more by work or end a telco.
Okay.
Telco is also not always mobile, but telco I would say a.
Telco datacenter and they're asking for solutions, which would include the compute node already integrated with LPG because integrating in ESG into a host is not always simple. So they would like to get something like that from us with that cost and FP GA and sometimes another offload solution.
Great it into DSPG card or something like that and these are things that were practically to only one that can provide and we're seeing quite a trend towards these kind of requirement and I think that this would give us wins, which are.
Bigger and wouldn't be more I would say specific to us and only I would say downside to that if you could call that a downside is that it will take time and thats. Because these are solutions. These are more complex systems. So they need more time to define age to evaluate it to have a proof of concept or.
See so it takes time, but we see that trend over and over again, we are really I would say be really overloaded. These days with responding to customers These kind of solutions and the.
Entry point.
To these solutions is our ESG capabilities, because the other capabilities or something that many others could do as well but.
There is hardly anyone who has the SPG and all of which is relatively unique by itself combined with these other things. So we're really happy with that and development and we are saying that this would take us.
This is one of the reasons why I'm very optimistic for the future.
So this is relative to serverless edge.
Locations that you're talking about.
This is what relative to serverless edge applications.
Well I mean, as saying server less you could say serve a less because they do not necessarily include I would say at traditional server because in these situations our edge compute unit would actually replaced the server.
Serverless can comment is relative to the software engineers not needing to take into account the server architecture.
So for sure everything that we do everything that we do almost everything that you do these days.
Based on the basic.
I would say and strategy of decoupling and software from the hardware and this is a part of what we're doing.
Great. Thanks, I'll cede the floor again.
Is there any additional questions. Please press star one if you wish to cancel your question. Please press Star Tim.
Biodiesel from more questions.
The next question from George Marima correct.
Please go ahead.
Yes, hi, Thanks morning shaky.
I wanted to press a little more on FP GA in terms of in your pipeline of opportunities out. There are you seeing more of deferred verticals than your traditional verticals out there because even in the last year, So you've announced in automotive.
Sort of area wins and a healthcare.
Verticals and if you can comment on the progress of those and other opportunities that may present out there that are you sort of non traditional areas.
Okay.
So.
First of all I mean with regarding to these two specific opportunities that you mentioned.
So yes, we hope to begin seeing some revenues and from one of them at least in the near future at least beginning Ram pickup towards the end of this year.
The other one would take more time, the automotive I would tell you that the automotive one will take more time, because what we've built was four for pilots and it's going to take a lot of time right now.
Turning to a real revenues, but I would like to emphasize.
That even when we have announced these opportunities I think we told you not you personally I mean, but everyone that a DS are not our focus our focus is still our traditional markets, which are all within the networking arena, but we were happy to see that other Bert.
Because came to us even though we did not invest any specific efforts trying to sell in to them and once they came to us of course, we took the opportunity because of technology was there, we didnt and need to invest in marketing. So we just didn't catch up.
Now at so we continue to fall to focus on day traditional areas.
I think we're focusing in we were which were around networking now networking were once again, we're talking mostly in the telco space, whether it's the edge or the telco datacenter that we're talking about and that's where we see as most of the interest. We're also seeing I would say.
Related interest with surprisingly very similar technologies.
To an area, which is related to that which is the aiotv area.
Taking us to some industrial applications again being a drawn up to these areas through our partners. These are again networking, but not exactly and our regular Ford and within the marketing space. So we Cds as well, but overall, we continue to focus on the networking.
Area, mostly with telcos and.
Yeah, and telco datacenter environment.
Thank you should of course, not only we were up not only directly with the telcos. We were both directly with the telcos as well as with the Oems with delivering to the telcos and the software vendors, who are providing solutions to the vessels as well that to get these wins.
Thank you.
The next question some of the higher.
Please go ahead.
Hi, I just wanted to know the average.
Cost per share that you paid for the stock.
In this past quarter.
Approximately $30.
I will share due to those for sure okay and on.
On average.
Right understood and how many shares a lot of by on the per day.
It depends it's not a.
It's not a fixed.
Amount everyday defense on the market.
On the average bought like average volume so how many does that generally come too.
It's about.
I would say it's about.
2500 shares building.
And it did you purchase any blocks this past quarter no.
No during.
The last quarter and not.
Okay wonderful. Thank you guys. Thanks again.
There are no further questions at this time before I ask Mr. about go ahead with his closing statement I would like to remind participants. Please this call will be available by tomorrow and so it comes website Www Dot telecom Das USAID Dotcom Mystore back would you like make his concluding statement.
Yes. Thank you operator, thank you everybody for joining the call. We hope you are all safe and we look forward to hosting you and our next call in three months time good day.
Thank you. This concludes comes first quarter 2020 results conference call. Thank you for your participation you May go ahead and disconnect.
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