Q1 2020 Earnings Call
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Thursday
and to see the first quarter 2020 conference call all participants will be able to tell me about you need assistance, please press star key followed by zero.
Actually this presentation an opportunity to ask questions. Do you ask a question you were starving Thursday is being recorded and now like to turn the conference over Richard Kingston vice president of Market intelligence investor and public relations, please go ahead sir.
Thank you and good morning everyone. Welcome to see if it's first quarter 2020 earnings conference call. I'm joined today by Gideon chief executive officer and Chief Financial Officer of Siva. Gideon will cover the business aspects and highlights from the first quarter and provide General qualitative data and you an evil then cover the financial results for the first quarter month also provide quality of guidance and data for the second quarter and full-year twenty-twenty. I would start with the forward-looking statements. Please note that today's discussion contains forward-looking statements that involve risks and uncertainties as well as assumptions that if they materialize or prove incorrect could cause the results to differ materially from those expressed or implied by such forward-looking statements assumptions.
forward-looking steak
Please include guidance for a second quarter of 2020 are anticipated pillars of growth including 5G ran and Wi-Fi 6 and optimism about achieving such gross directives optimism about certain of our customers gaining market share and 5G our ability to manage our non-gaap expensive to mitigate the adverse impact of the pandemic wage coming months and Market data by Cisco and ABI research.
For information on the factors that could cause a difference in our results. Please refer to our filings with the Securities and Exchange Commission.
These include the duration of the covid-19 pandemic the extent and length of the shelter-in-place and other restrictions associated with the covid-19 pandemic and the impact on customers consumer demand and the global economy, generally.
The ability of fevers IP for smart or connected devices to continue to be strong growth drivers for us our success and penetrating new markets and maintaining our Market position in existing markets off the ability of new products incorporating our Technologies to achieve Market acceptance the speed and extent of the expansion of the 5G Wi-Fi and iot markets are allowed to execute more nonsense more non handset based and license agreements the effect of intense industry competition and consolidation and Global Chipmunks assumes no obligation to update any forward-looking statements or information which speak as of their respective dates.
With that said I'll now turn the call over to get in.
I'm doing good morning everyone and thank you for joining us today.
Mostly on health health sympathies are with those around the world that have lost their loved one other jobs due to the covid-19 endemic.
Hopeful with the measure taken by governments around the world will lead with sustainable recovery.
Achieva we are taking steps to protect all our employees health and adjust of operation to work from home.
Oh, I see infrastructure is Advanced and scalable which allowed a seamless migration from office to work from home. I'm going to repeat them to remain at high level of productivity and our interactions with customer for sales and support activities of moves.
We continue to monitor government instructions country-by-country and taking careful steps to enable our employee to return to our home.
Against this backdrop. We have an excellent water with revenue of 23.6 million 39% off something environmental continue to be robust and we recorded 14.5 million dollar in licensing Revenue up 32% of the month. We sign new agreements of which then we'll phone connectivity and three world for small tensing.
We open.
Indians world is first time customer.
Activation for Technologies include 5G for base station run 5G fixed wireless access 5G Beckel Wi-Fi 6 for your devices true wireless earbuds vision and a RAV4 drones and voice systems for range smoke home and iot devices.
What is the revenue came in at nine point five million bolo up 53% year-over-year seasonal weakness off the Chinese princess Market resulting from the covid-19 lock down in China was more than offset by Surly iot based projects in the introduction of new low-cost model for information leading smart phone company.
Let me fix the next few minutes to provide you with additional perspective on to gross vegetables that are Central in our strategies 5G run and Wi-Fi fix these places represent secular Trend in are expected to come increase came into focus on the back of covid-19 is they are key to enabling better work from home practices in support of operation of the use of Robert remote medical diagnosis and treatment in the future.
When find you one I will not just 5G customer extended the use of Technologies and sign new licensing agreements June 4th for development of next-generation 5G chipset to address the 5G phase to Network Services.
The services include Ultra reliable low latency communication you are targeting robotics small Penny factoring Automotive, maybe call and message machine. Communication mmtc, that enables billions of low-powered sensors to be connected to the club ocean and AI Services. You are LLC and mmtc will drive the upcoming capital investment back inside Jean and our the focus of our customers with their new run designs.
In this context a few weeks ago. We unveil our latest generation DSP the fever XC60. This is the most advanced and Powerful DS people available today offering unprecedented performance in state-of-the-art architecture innovation in operating speed parallel processing and Monday. We are also encouraged by the recent fraction of customer VP is ahead in 5G today. It has 45000 miles and control contract and most recently one 29% share of the five point two billion dollar contract to deploy 5G stationed in China mobile for China mobile is substantially bigger share that it had inquired engagement for China mobile.
Why do you find 6 we are experiencing good momentum and customer interest with two new agreement signed during the quarter targeting a variety of our devices ranging from DTV small type of box small speaker to small blocks.
Wi-Fi 6 is the latest Wi-Fi standard also refer to as 8211 according to Cisco forecast nearly 60 plus mobile data traffic worldwide will be offloaded to Wi-Fi network by 2022.
They call me from recent study from a div served. Wi-Fi fix Market is forecasted to reach 2.2 billion units bought a 2024 is confirmed for less than three hundred million in 2019.
The recent FCC approval to free up additional Spectrum at the six Judy Blume will enable compliant Wi-Fi 16 devices to achieve speeds comparable to 5G mobile network support low latency is required for application like virtually documentation reality in mobile game name is also expected to boost the industry 4.0 update for smart manufacturer Transformer thoughts are with those people suffering from the impact of covid-19.
While the situation is still the naming we are encouraged by the persistent design activities with our customers interested in a product. We are laser-focused to continue to expand our business to capitalize on the momentum. We gained last year. We are closed during the Dynamics and developments concerning our customers shipment and will take further steps until covid-19 impact is concerned and supply and demand resume some normalization.
We hope you're all safe and look forward to meeting you face to face again in the near future. It conferences and virtues.
That said that you handle the recoil to your need for financial.
Good morning. I'll start by reviewing the results of our operations for the first quarter of $21 for the first quarter was up 39% off the twenty three point six million dollars. It's compared to $17 for the same quarter last year Revenue breakdown in this phone. I can sing in related web page was approximately 14 and 1/2 million dollars reflecting 61% of our total revenue 32% higher than eleven million for the 1st of June 2019.
You was 9.1 million dollars reflecting $39 percent of the revenue 53% higher than six million dollars from the sale corelife.
4 Amigos margin was 88% and 90% And non-gaap basis slightly better than on than we originally forecasted non-gaap gross margin excluded approximately 0.2 million of equity-based compensation expense and 0.2 million of the impact of the motivation of acquired intangibles.
Those gaps operating expense for the first quarter. Was it the higher end of our guidance a 22 and 1/2 million dollars also incorrect equity-based compensation expense of approximately 2.9 Million higher than forecasted due to the accounting associated with the February 2020 be a few grants to manager.
Okay, thanks also included 0.6 million ization of acquired intangible and 0.9 allowance for doubtful provision associated with liquidity difficulties or one of one of our customers in the US.
Whole operating expense for the first quarter, excluding equity-based compensation expenses and the motivations of intangibles or $19 also offer the higher end of our guy.
Us gaap net loss for the quarter was 1.2 million in the loop place for sure was $0.05 for the first quarter of 2020 as compared to a net loss of life two point three million dollars and delude last four share of $0.10 for the first quarter of 2019.
Our non-gaap income and diluted EPS for the first quarter increased by nine and half fold and 11 fold respectively Patrol point six million dollars and eleven cents.
other related data
units by licensees during the first quarter of 2020 were 261 million units down 27%. 50% from the first quarter of 2019 reported shootings.
Of the 265 million units shift hundred eleven million units or 43% were for handset based Ventures reflecting a sequential decrease of 43% from 196 million units of health-based then chipped off during the fourth quarter of two only nineteen, but 25% increase from 89 million unit shipped year ago.
Or base station and now you see product shipments or a hundred and fifty million units down only 9% Sequentially, not 76% year-over-year.
No categorized all of our non Hanson basement ships Under the Umbrella of base station and iot products.
It's for the balance sheets as of March 31st 2020 SE plus Cash Cash equivalent balance is marketable Securities and Bank deposits or $151 month to continue door behind excellent scrolling repurchasing approximately 200,000 Sharon for approximately 4.8 million months in February or board of directors approved the new expansion of the buyback plan by total of 700000 shares available for purchase out of today or hundred ninety-eight thousand shares are available for purchase.
All right, Justin ASC 606 for the first quarter of 2020 were sixty three days during the first quarter. We generated six point four million dollars net cash from operation or depreciation or motivations or 1 and 1/2 million dollars in the purchase of fixed assets 40.86 the end of the first quarter. Our headcount was 391 Depot which 324 were engineers up from a total of 382 people that had to go 2019.
No.
As mentioned like you didn't we continue to execute well in our business strategy during the first quarter and have had an excellent first quarter in licensing and royalty Iraq, despite the disruption caused by covid-19.
Although we continue to work diligently towards our goals of meaning annual revenue guidance given on the last earnings call the spread of covid-19 around the world. The extent of this disruption is closes and the supply chain and on the consumer demand cannot be fully assessed as long as a matter of proving see you have decided to redraw our annual royalty Revenue guidance at this stage.
The other hand are licensing and related Revenue business remains robust, and we're maintaining our annual forecast of growth of two millions of four million dollars over 2019 record and your result.
We'll also continue to monitor closely our non-gaap expense levels to mitigate any adverse impact of the epidemic in the coming months off. This was not affect our research and development plans technology roadmap or customer support is your firm committed to those areas and believe both acknowledged investment will pay dividends in the future.
Is he a scene from prior cycle IT company play a crucial role in Expediting the semiconductor Market recovery, which closing the technology Gap that such slow down can create.
specifically for the second quarter of 21
Gross margin is expected to be approximately 86% on Gap and 88% a non-gaap basis of 0.2 million. Like would you pay for compensation expenses and 0.2 million of the motivation of other assets associated with the email Vision invest
I'll fix for the next three quarters of twenty-twenty should be lower than the first quarter.
The second quarter Gap based off X is expected to be in the range of 21.2 to 22.2 million dollars.
Dissipated total operating expenses for the second quarter three point seven million dollars is expected to be attributed equity-based compensation expect month instead earlier that's expensive or higher than originally forecasted due to the accounting treatment of our February 2022 Grant to management team and 0.6 million. It will be attributed to amortization of acquired intangible.
Therefore our non-gaap topics is expected to be in the range of 17 million.
Interesting kind of expect it to be approximately 0.75 million dollars.
Texans for the second quarter expected to be approximately 0.3 million and both gaap and non-gaap basis account for the second name is expected to be a 23.2 million shares.
A rock off you could not open the Q&A session.
Thank you. We will now begin the question-and-answer session to ask a question. You may press one to speak with Tom Hanks to enjoy your question, please press star to today's first question comes from that Ramsey would, please go ahead.
Thank you very much. Good afternoon, and good morning getting it's really nice to see the the momentum and the licensing business continued and and I've noticed over the last couple of of earnings calls. You've talked more and more about Wi-Fi 6 and also expanding your 5G portfolio Beyond just the base bandwidth to some additional areas as well. Maybe you could expand a little bit more than you did on your prepared comments is just the footprint that you see in terms of Licensing momentum with 5G and how that may continue for for several years versus just the initial products with a couple of the oems that that you should be rolling out here in the next couple of quarters. Thanks.
Yeah, I think you highlighting two major both engines for us. It's worth its salt of two things one is the market I'll get into this in a minute. And the second one is the the the the landscape of suppose. So these are two significant technologies that are not that many companies that have the competency to do it, but they do need to get off this one if they want to benefit of what these Technologies of so if you take the 5G in specifically and I touched on Thursday on the one which is the base station radio Access Network and and the related thing there are
Very few companies. They can build a base station today in those companies a key element of faith in their ability or ability to build this one is to use ESP that is not around anymore. We are the only company that can also be S. XE 60 and it takes you not just what people are thinking today about five years, which is the mobile broadband the small form, but also the Next Generation all the phase two will people start putting in place autonomous driving smart manufacturing remote and maybe cuz things that we we start seeing today at the back of the corner of views. So we are here in a position is the only viable proven supplier dead.
I can take advantage over the 5G and and aspect of this one is what is called now 5G and open run one of the pigs in the states are important in order to build in dependency of let's say Chinese oems or or dependency is to go through what is called open 1 which is more disaggregation this consolidation of of supply of dependency on one with the big guys that coming and provide full solution. So we are the the only company that can enable those companies to get off the market and take advantage around and provide abortion either in the antenna side or in the base station, sir. So that about the the 5G run Club.
in in general which is
We we built throughout the the entry barrier for any company including those responsibilities males off and then comes the Wi-Fi which becomes now a compatible to 5 G. Especially when it comes to the residence on the Enterprise of the fixed wage side of the thing and the fact that you have today Wi-Fi 6A which basically double the spectrum of the Wi-Fi and Prestige earlier that this clean of congestion that's take the Wi-Fi 6-8 beyond that what we know all of us now, it's busy and faith in the handset into the the access point in the supplies or calm people will stay more the time. They need faster Network and going into industry wage.
4.0 which require robotics require this kind of fast and reliable access to to the web. So Thursday are full ankles of technology that we are the only viable in a supplier of the technology for those companies that wage in this market either to the consumer part of it all to the the industrial.
Got it. Thank you for the the cover letter and and sounds like some some really good progress. I wanted to to obviously didn't even understand the the lack of visibility with with the guide off on on particularly on smart phone unit, but they get struck me that if I'm not mistaken this the first quarter we're more than half of the royalty units were were non handset. So we've seen a shift there. And I I know a number of years ago. You guys talked about some targets about some big numbers of non smart phone baseband units and it seems like the franchise is really starting to come together as we all kind of wait for for the bigger 5G units to come and base station. But any color you could give on the breakdown of of some of the Technologies within the non smart business and just the momentum that you're seeing there because that that's that was quite a bit stronger than at least we had modeled it and it seems like a setting the page for some some decent results there to maybe protect some of the business that
Well, we'll have to see what units are and smartphone over time. But any color in that non-smartphone business of a breakdown would be really helpful. Thank you.
Yeah sure. It was an interesting quarter. I like a prior year. We did see more than seasonal decline in the Chinese specifically the I need markets and manufacturing of Chinese phone's going through different areas of the globe offset by wage. You are a low-cost well-known OEM that came out with the lower serious in a different interesting timing which usually is not in the beginning of the year. But usually in the same time frame in Prior years after than the handset side and you are right, but this is the probably the first time that are non hanset units for the quarter wage and fifty million were stronger than the handset business of 111 million and the dollar side is not the case yet. We have the nice number.
3.7 million
Coming from non handset that's called a few recalls to the all-time record high in 4.3 in that shows that even the the typical seasonality that we have the industry have that one in in normally has changed a bit in some segments of the market. Of course Sensor Fusion is new for us. We have a disk or we didn't have it a year ago. So that that was helpful, but even among the other traditional markets for us like Bluetooth, for example, it was a very strong quarter. Although it was the seasonal strawberry weakest quarter of the year for Consumer devices. So maybe some people at home still need a different devices and maybe it was specific needs for for a different job markets say that still played nicely and we saw the day the sequential decrease in the new category that we called the base station and iot was only nine percent. This was this is dead.
Very low compared to any first quarter we ever had before. So this is the combination of the reason and no doubt that this new segment at least remain a base station and and iot should continue to help us grow the business and grow their diversity forecast that we have which this strange limitation this year that it's not traditional seasonality anymore. It's not traditional second half which in the last two years we're stronger than our first half. It may be the case, but we just need to wait and see the coronavirus effect.
Got it, and just one last Quick One you mentioned down to $17 million for for op-ex in Q2. Is that just organic off of belt-tightening any kind of I know there's been R&D grants in the past and and there's been some different Government funding things that have moved around since we've had the the coronavirus situation, so anything unusual in the office, or is that just the run-rate we should expect going forward. Thanks.
Sure, so we set up in the prepared remarks. We are sort of monitoring that and trying to tighten whatever we can from the expense size without hurting the R&D. You're right that the interior of the grants were much smaller. Some of the government agencies were were closed and we didn't get as much payment and q41 there was a decrease of a million dollars in Grants for example, so it's it's it's a big number it will play around the year and that's why the next couple of quarters are lower than the first quarter. We also had unusual effect for us of some Beltsville debt and some us company that got into financial difficulties and liquidity with coronavirus in related. So we had a bigger purpose of zero point nine million dollars in the first quarter all that with less travel less trade show is more virtual event than what you could see in other companies that we are also taking the
measures here and the trying to come up with ways to offset any
with in the royalty revenues in the next couple of quarters if if there will be
I don't question today, Mike Walkley with canaccord genuity, please. Go ahead.
Thank you and congratulations on the strong results in the tough environment. Just question for me on the on the a station or Wireless infrastructure of deal with Nokia starting to highlight the progress of reef shark shipments, you know, picking up quarter-over-quarter and expected to do so through year-end and ZTE, you know doing quite well on 5G contracts. Can you just talk about maybe I know you're pulling world to Guidance just because there's so much uncertainty in the world the key talk. Maybe what you're seeing on the infrastructure side is it certainly seems like the need for Broadband that bothers puts and takes overall infrastructure spending looks to be one of the areas more attractive than you know, maybe the consumer-driven handset Market.
Yeah, hi Nike. You're right. It looks to us the the the 5G infrastructure in somehow resilient to the to the impact of the coronavirus wage. This is the an infrastructure investment contract be involved Dependable. The China mobile has about 10 million dollar sizeable and and they will continue and and our customer benefiting I you know, it's it's a process when from the point in win a bill until you see it on the finances about six months. So Thursday, we have any coverage and we will see how it's evolved in the coming month.
Great. Thanks, and just my follow-up question on the license on the licensing side is great to see you still expect to increase two to four million this year. Can you just talk about you know with so much probably restriction and work from home. You know how your team is able to virtuality work with your clients to ensure that you can execute on this licensing structure, you know given a lot of restrictions on face-to-face interaction. Thank you.
That's why I have to admit that to be for acid came as a surprise the the the effectiveness of the productivity the people get when it comes to interactions. If a customer is forgive think example of China, they start working and they are logging immediately after the the Chinese New Year that I am unavailable just was one of the big and the way licensing works. It's it's Adelle different things that you can show to the customer about demonstration. And that's something that you can do from a remote access. But most of the work is evaluation Q&A presentations, and this was smooth and ongoing like
people
Face-to-face just was not very, you know, the personal relationship that people are going going out together. But other than this the the practice of Licensing was dead and the fact that at least what we saw so far people didn't slow down development and planning and wanted even to expedited the store isn't dead what we saw in the pipeline that we have had.
Great. Thank you. And I I do look forward to the day we can all get together again in person. Good luck with you.
Don't deals.
Next question today comes from Susie the silver with Roth Capital. Let's go ahead I get in how you congratulations on the execution and a tough environment. Certainly. Can you talk about the activity of seen in licensing and royalty quarter today the linearity in the activity whether it's stayed relatively linear and Licensing and any signs of recovery in royalty or whether it's just too hard to say at this point.
Fuji so let's go with the licensing. I think other than the fact that they mentioned the hotspot about 5G and Wi-Fi six-by-six to see many companies going into intern and Building Product and these are consumer product an access point. It's just a new cycle of the Wi-Fi and Thursday. We see more people because he has more more small devices today because he's smart dogs. And so that's why I would say that in licensing. It's all across the world. But yeah, it was familiar with computer vision with sound we have of course Bluetooth people wants to build a lot of ear buds hearing it. So I cannot say that it is it's all over the place and the the the uniqueness of silver is our
Funeral District portfolio the people that are building any connected devices they need connectivity. They need some form of censorship whether it's a camera sensor microprocessor buy a new Samsung they need something and they they find it in in one spot when it comes to us now in when it comes to the reality of the the world is, you know, it's hard for us because I'm from customer. We just get results of what what smoking done but what we see around us speaking with customer, is that off
Did the what we call now, are you pee in base station? This is something that mobile is goes according that we expect it to be more or less has been participated in this year. There are less people buying on the other they need more stuff while they stay at home. And then of course the 5G is on Thursday. They're the the the the question mark is about smartphone. People are saying the Kyoto will be is we killed in q1 and then there will be some gradual recovery. Maybe I'll shake maybe we should nobody really knows how to go there. But I think generally cuter would be weaker than to 1 primarily the break of smartphones and then in depending of the Dead
And how come?
How countries will go out of this virus of this look down a gradual recovery, the the you know, the Christmas season and Thursday.
Okay, thank you get into very helpful color appreciate that and then on on 5G Wireless infrastructure, you have a series of Licensing winds here and and seems to be more activity there. Should we expect that your Royal the next one or two years will still come from the two large customers or are there additional or smaller customers that are coming into the 5G royalty mix in the next year or two? That would be helpful to know. Thank you God. Yeah, that's important question. We have other customers as well. The 5G run Market is is what is called heterogeneous. I'll keep it to you. So you have my car says any of smokers in the US fixed wireless access. We spoke on the phone on the on the place. So we have not that many but few other customers that want to go into the 5G run Market.
Play the different phone.
Okay, and then just a quick follow-up. They're getting will the ESPYs be similar to the base station HDTV quoted which are significantly higher than the the existing ASP. Thanks.
They are going to be higher in the base station tips. You have the they're much more expensive than bigger physically bigger tips with many more implementation inside. So part of the Loyalty that we get is based on the check side. And here is the question if it's a smaller hotspot for home or a bigger at least eight thousand or what type of base station is could have multiple disciplinary for from the light bulb all the way to the mega-sized they stations with with dozens of chips inside and does of implementation inside. So I think we'll have lots of different flavors right now. We have one customer in production. We're waiting for the other one, They kick in later this year the beginning of next year and then the newer ones The Joint in the last day.
Probably twelve to the US than 24 months and these were the ones that Gideon mentioned there just a minute ago.
Okay. Thank you guys.
Thank you.
I work on the strong results. Most of my questions have been asked I guess.
Hi. Sorry, can you can you hear me?
Yes.
Hi, can you guys hear me?
Yesterday sorry. Yeah, just a follow-up last quarter. You mentioned the traction you were seeing for the automotive.
And I'm wondering if that's still the case and then as a follow-up just looking at the cost flexibility you have if if I'm if I'm just looking at the worst case scenario where we would see a second wave of David and some some pressure on on your Revenue you do you have any any flexibility to kind of decreased custom priority and downs on some of your known are indeed spend.
Sure. In fact, I'll start today with the second question because I think we we answered that and talked about this. We are looking monitoring closely that the cost basis some are not helpful just because of the covered was travel less events, which we are doing in differently virtual like the rest of the world. So these are obvious to cost savings office time and to some extent in some offices and and related the cost. We are looking at other ways to be more creative than than the past month. And this is the you could see that as early as the guidance of the gate 42 in the non-gaap of 17 to the $18 for the quarter. So this already paid off of that into into account.
LW go to the automotive Market. We are the licensing automotive and we speak about traction about licensing. We don't have them yet light is coming from Automotive space. These are long program when we start with the sign the bill for cars to go into the mark 2024 the earliest so one quarter or here and there is not that substantial but so far in terms of business sign the the discussion that we have customers about you do you design is ongoing?
Great. Thank
today comes from David O'Connor with actually and BNP Paribas, please go ahead.
Great, good morning, and thanks for taking my question. Maybe one or two kind of folks in my side. Maybe firstly on the on the base station royalty into one any color there and how much that bulb are the change registered to shoot for for over quarter. Then maybe one follow-up from last question Automotive in terms of Engagement there and due to the covid-19 any change and kind of sort of Licensing site, and then maybe a third one on the Sensor Fusion. Can you remind us the on Sensor Fusion type of seasonality you've seen there in the in the past so we can log in to some kind of marketing dashboard forward. Thank you.
I got the first question and the third was in the second question. Maybe I need help because I didn't but we may ask you to repeat it. But the first question was about the 5G royalties, you know thousands breakdown specifically on those segments with 5 g n i o t in general but the mothers disruption in the 5G because people couldn't go and work and install those base station, but that's temporally they will get back to work and then we'll see so far we may I ask what we thought that when it comes to 5G base station. It's it's the same we don't see any change for what we thought at the beginning that this would be a God-fearing this aspect now in terms of Transportation. So it's a fusion is something that I am you which is the inertial measurement unit because very broad market so they are consumer they are dead.
If customer in the PC with customer on the TV so you don't really can talk about seasonality. It's it's a highly fragmented market and wage and what we are looking here is just the the trend between extending and we are expanding our customer base and and Thursday and then the vegetable market so overall it's it's one segment out of the segment and so far when it comes to what we see so far in life in plastic. It's it's very well.
Thanks for that question was an automotive.
Automotive and what was the question was I couldn't deal you were broken. Yeah, sorry about that. Just to repeat on the old remote advise any change on the licensing of order both of in terms of Engagement you're seeing in q1. Thank you.
So I don't think so. I don't think we have a change in the automotive in case I think there was question with before the licensing when we live that something is for programs that go for a big 2024 the earliest so a quarter here and there is not something that change people especially when it comes to design and that's what we see in terms of design activity prospective customers. There is no change and since we don't have details so we cannot we in a way we are looking busted from all these slow down that we have in the automotive.
Got it. Thanks guys.
And my settlement includes the question answer session. I'd like to turn the conference back over to mr. Kingston for any final remarks. Thank you everybody for joining us today, and for your continued patience and Siva as a reminder the prepared remarks for this conference call are filed as an exhibit to the current report on form 8-k and accessible through the investor section of our website at investors Seva with regards to upcoming events. We will be participating in the following event shortly the count down 20 virtual TMT conference running from May 26th thru 29th, and for further information on this event and all events. We will be participating in can be found on the investor section of our website. Thank you, and goodbye. Thank you sir. This is today.