Q1 2020 Earnings Call
Okay, everyone. Welcome to today's teach you Biosystems first quarter 2020 earnings Conference call Chase call. This being recorded at this time I'd like to turn things Overture, Mister Phillips Killer Investor Relations. Please go ahead Sir.
Thank you operator, thank you for joining us for the T. two biosystems first quarter 2020 financial results conference call I'd like to remind everyone that comments made by management today and answers to questions will include forward. Looking statements does include statements related to teach you biosystems future financial in operating results.
Plans for developing and marketing new products.
Forward looking statements are based on estimates and assumptions as of today and they're subject to the rich and uncertainties that may cause actual results to defer materially from those expressed or implied by the statement, including the risk and uncertainties described in P. two biosystems annual report on foreign 10, K. filed with the L.P.C.
16, 2020, and other filings the company makes with the F.T.P. from time to time. The company undertakes no obligation to publicly update for revised three forward looking statements, except as required by law with that I would like to turn to call over two presidents and C.E.L. John Sparkle John.
Thank you fill up.
You have to joining us today.
I'll start by recognizing the challenges and the hardships you're all 30 thing as a result of the ongoing coded 19 pandemic.
Thank you to all of their health care workers, and both responders aquatic life, because you're sodas and shackles likes.
Thank you to my colleague to teach you borrow systems, where you're on wavering commitment to advance our mission.
Despite the difficulties created by the greatest public health challenge of our lifetime.
On today's call Oh.
I'll start with a with you about the formants in the quarter.
Including interactive coded like Jean.
And then discuss to progress made for each about three corporate priorities.
Accelerating ourselves by prioritizing increase to trust utilization.
True improving our operations bipolar charging significant cost reductions.
And three advancing more pipeline like prioritizing Oh programs under 69 million dollar milestones based product development contract awarded by the U.S. government instruct jumbo 2019.
Drunks doesn't that provides a detailed first quarter financial results.
Makes him closing remarks.
Opened the call for questions and answers.
Asked me about the teacher <unk> generated total revenue $2.5 million in the first quarter of 2020.
An increase of 43% compared to the five year period.
We continue to supply Archie to be actually instruments, and actually two bacteria to Canada and to do the distance battles hospitals around the globe <unk>.
It could issues that the destruction of such as causing pathogens.
Yep fully committed to our 2020 probabilities, which now includes the development of the coded like G. molecular diagnostic test.
As the two two source coby to battle.
We have taken important steps to strengthen our balance sheet during the quarter.
Which we believe provides more than one your cash.
Significantly reduce our operating expenses going forward.
Hitting the disruption and uncertainty related to the ongoing pandemic on March 20, but it's respected financial and operational guidance the 2000 twice.
That's hospitals have undergone extreme changes the focus their resources on the identification treatment and management, a pension too cause it back to.
Currently have limited bandwidth to advance evaluations of new technologies.
Oh hospital based customers.
Critical care and infectious disease doctors in pharmacist.
Laboratory directors, who wants to jump line caring for patients.
Hospitals have also restricted access the non start you personnel.
Including our sales and medical appears teens unlimited access to our service Jean.
Well these conditions that created conventional headwinds you're using technology to remain engaged with our customers as much as possible.
At the train car.
Oh, you're with our platform has proven to be at essential elements for customers.
Please note that most of our customers are continuing to plug source and in some cases larger well <unk>.
Given the patient population in their intensive care units.
Yeah. It has demonstrated to cope with 19 pigeons are susceptible to colds bedrooms, and secondary infections that can called sepsis.
Oh customers understand this connection and had been using out just to help manage patients more effectively.
We are seeing increased rates of testing at a couch in geography is that are heavily impacted by coded 19 cases.
New York City, Italy, Spain and Breese.
The severity and call Subsectors for Scotland.
Recent study found accepted contributes to one in five hospital gaps globally.
And that approximately 11 million people worldwide doctrine substance each year.
That's more doubts that all forms of cancer combined.
And the United States.
It's it's represents nearly $41 billion in health care costs and is the most common cause in a hospital yes.
Killing nearly 270000 people in the United States each year.
But those who are nearly p. to borrow systems. Our technology includes only up to date cleared products.
<unk> directly from the what.
You'd three to $5 without the need the web page for a positive what culture.
Saving time need saving lives with managing patient suspected of success.
Each hour of delayed targeted treatment.
Creatures mortality rates by up to 8%.
Rapid pathogen identification can enable quicker administration targeted antibiotic therapy.
I guess the show use a broad spectrum antibiotics and helped to prevent combat well it's on microbial resistance.
Regarding coded 19 impacts our business.
The duration possible resurgence is what they were institutional changes it's not possible.
Based on current information, we created a set of assumptions under which we are running our business.
This is a fluid dynamics situation and we will adjust I've gained plan that's new information is available.
We really hopeful that social get some thing and other precautionary measures to flatten the present infection rates continues to prove effective.
We believe about current products will continue to be crucial tools to identify cool infections and secondary infections related to cope with 19.
And that the <unk> panel currently in development could potentially log the detection a primary coded 19 infections.
Well now shift gears to discuss the three corporate priorities, we established you'd like long term success for the company.
Elevating ourselves improving our operations and advancing our pipeline.
Let's start by adjusting our first priority accelerating our sales.
During my first quarter, let's see Oh, we challenged all assumptions related to our commercial strategy.
As a result, we've shifted our strategy focused on increasing utilization about chats, among orange stuff basically instruments driving adoption of actually to be actually instruments.
We believe each other right metrics demonstrated commercial traction rather than the historical focus on number of instruments placed in a given core.
Real privatizing, the U.S. market and focusing our direct commercial operates on our current customers.
Access to more affiliated hospitals and new stakeholders within those accounts.
They're also targeting hospitals that are members of good purchase from organizations, where we have contracts.
During the first quarter.
We're awarding multi year innovative technology contract from <unk>.
The largest good purchasing organization to the United States market.
It'd be it shows more than 50% of the nation's acute care hospitals, 95% of all academic medical centers and 20% of the countries ambulatory market.
But there'd be a contract includes the teacher do you have to instrument.
And the teacher bacteria and she through Canada panels.
Based on a recommendation by political experts on digits member council that our products offer incremental benefits compared to other products.
We believe entering into price in contrast, with this digits organizations like busy and and premiere wanted us a breakthrough technology contract in September 2019.
Validate our technology.
Increase our visibility with hospitals and it's still the cake sales activities.
But they're they're focusing on did you watch commercial strategy to target current insurance in high which departments, where our product typically used such as the intensive care.
Colleges and translate yes.
Do better adjust which group of politicians, we'd refined got messaging target these providers and expand dog relationships in these departments.
We understand it it's a central plus to address multiple stakeholders within the hospital.
The complexity of substance management protocols, which are creative input from clinicians laugh directors and hospital administrators.
Oh Medical Science liaisons are playing a key role here demonstrating expanding <unk> clinical evidence and use cases that are resonated with stakeholders within the hospital.
So why not U.S. sales team with these objectives, we made changes to the compensation plans like heavily waiting incentive based sales compensation on text utilization.
We're pleased to see early traction with after the cows integrating our chests into their senses management protocols.
Placing orders on a routine basis.
At the end of the first quarter.
Acted installed base or P.G.B. extra internet, what's black.
Saw slight sequential increase in the end will test utilization Runrate <unk> activated scrubbing compared to the <unk>.
Well also encouraged to see instrumented there were other evaluation convert the contracts.
Capital and reagent rental agreements despite the ongoing challenges associated with coded 19.
This <unk> offset by instruments that are still isn't evaluation period that has been delayed due to coded 19.
No. These are strong signals that all plot Joe's unmet need while delivering valuable hospitals in spite of the current market conditions.
Internationally, the healthcare diagnostic marketing experience similar disruption to cope with 19.
Interest in evaluating to do <unk> integrated slow.
Did the progress, but evaluations already underway.
Hosting strong tests utilization from customers in areas that were hardest hit with coded 19 infections as I mentioned before like Italy, Spain and grease.
Following the latency marketable product you two resistance battle appease doing for knew that we're gaining early commercial traction in Europe, I mean, all of our first hospital customer, which implemented the teacher resistance pedal each reaching political views.
Finally, we continue to pursue opportunities to strengthen on international business.
Partnering with large strategic commercial distributors.
And we remain optimistic.
Such a green maybe completed during the second quarter of 2020.
Wanting to our second priority and putting our operations.
I noted on the last call the based on my initial observations the company's expense profile.
No significant changes to it that the current size and scope of the business.
Sustain a position of financial strength.
In conjunction with our strategic ships and as a result of credit market conditions, we restructured that workforce, resulting in a head count reduction of 22%.
And we plan to consolidate our facilities, resulting in a real estate space with action.
We also conducted a deep died examination of cross.
Costs across all departments and eliminated expenses did did not support our new strategy.
Second quarter expenses will reflect these new changers and we aim to continue to build up all these costs stadiums throughout the year.
We will also focus on improving the cost of product rather there's moving forward.
As we get our operational expenses, we conducted a thorough evaluation, how about current products and supply chain, including how processes for ordering while materials manufacturing packaging and shipping.
At the beginning of the second quarter 2020, we implemented numerous in this year is designed to reduce our cost of goods.
We anticipate many of these initiatives will be completed during 2020.
I'll have a positive impact on our product gross margins going forward.
Wanting to our third probably we dancing all pipeline.
Oh team of scientific experts have continually working to expand our offering.
I would like to choose proprietary technology platform.
Last year. The company was awarded a milestone based 69 million dollar product development contract.
<unk>.
The next generation instrument expanded panel and buy a threat panel.
We believe the comprehensive battle, we're developing has the potential to revolutionize the blood diagnostic states and could potentially replaced most blood cultures before every species identification and susceptibility results.
Being designed to potentially cover greater than 99% of all blood borne bacterial infections and detect more than 250 species.
Addition to all whiteboard antibiotic resistant drugs identified by the centers for disease control them prevention.
The last component of the government contract is about a threat panel that we believe will be the first high sensitivity whole blood test whether detection of multiple bought a threat pathogens and talks in jeans.
You know the versatility with our technology platform endorse scientific expertise, we explored possible means to further says with the effort against because it 19.
We determined that the most efficient path to develop and wants are coded 19 diagnostic test what's the lights in certain proprietary information from the center for discovery innovation at Hackensack, where did help.
Proprietary information, we license from Hackensack is accelerating our development or the Sars Coby true molecular diagnostic test that we believe will detect the president's presence of the viruses genetic material.
We're excited about the progress, we're making love the development of the teaching Sars coby to battle.
Which is designed to use nasal paired jail swabs sample.
<unk> <unk> molecular diagnostic test that we believe will provide the quality customers have come to expect to Dubai systems.
Once the teachers' salaries coby two panels development is completed validated.
Planned to make it available to customers under the F.D.A. emergency rooms authorization guidelines and pursued the formal F.D.A. anyway.
At this time, we anticipate making marching two sides coby to peddle available the U.S. customers as early as the end of this quarter.
The market potential for Kobe 19 diagnostic test continues to evolve as the industry response to the button and then it.
That's me to see with many other diagnostic test, we believe multiple coby bank teen cats will succeed in the market.
Including molecular diagnostic test to identify a few cases.
Antibody test, so I got a bike active or castruita deductions.
Also believe coated 19 cats will be performed in multiple locations, including weapons laboratories hospitals and pointed parasites like Dr offices and clinics.
Given the susceptibility of critically ill coded 19 patients to develop coal infections and secondary infections that can lead to <unk>. We believe our teaching Sars coby to molecular test has the potential to be used to identify acute infections.
Target patients under intensive care, we may also benefit from the identification of bacterial fungal infections without teacher bacteria and she to Canada panels.
Rapid results in this setting can enable faster targeted therapy, which can lead to reduce the length of stay in intensive care unit and pick up beds for incoming patients.
That will turn to call over the John spread R.C. a phone.
Details on our first quarter financial results blog.
Thank you John.
Total revenues for the first quarter 2024, $2.5 million, an increase of 43% compared to the prior year period.
Roddick revenues for the first quarter of 20 $21 billion, a decrease of 20% compared to the prior year period growth and test panel sales offset declines instrument sales.
All based G.P.B.X. instruments under the quarter flat compared to the prior core.
We believe coded 19 negatively impacted our <unk> international sales.
Research and grant contribution revenues for the first quarter of 2020 for $1.5 million increase of 218% compared to the prior year period.
Costs and expenses during the first quarter of 2020 or $16.1 billion, an increase of $800000 compared to the prior year period.
<unk> reverence for $4.7 million compared to $4.4 million last year's first quarter and increase due to the right down to inventories <unk> phone instruments $1.2 million impaired from the impact to cope with 19 on our business offset by lower overhead spending.
Research development expenses were $4.9 billion compared to $3.9 billion in last year's first quarter include expenses incurred under the government contracts of $2.1 million in the first work of 2020.
Selling general administrative expenses were $6.5 billion compared to $7.1 billion in last year's first quarter.
First quarter 2020 cost expenses include severance costs more cost reduction programs approximately $400000 would represent ongoing annual cost reductions of more than $3.7 million.
Net loss was $15 billion.22 per share compared to when that was last years first quarter of $15.1 million.34 per share.
Weighted average shares outstanding were 67.9 billion.
44.3 million Blasters first quarter.
Oh cash from Catholic ones were $36.5 million at March 31st 2020, we sold 68.2 million shares for $40.1 billion in net proceeds for H.T.M. equity credit line facilities and the first quarter.
April 2020 weeks band to be ATM facility to $95 million and we cancelled equity credit line.
We're compliant with the terms of R.C.R.G. debt facility.
Stock auction exercises ensure sold under the H.T.M. may affect weighted average shares outstanding.
Guidance for the full year 2020 has been suspended to be uncertain and back over 19 may happen our business.
Thank you in fact, you're drawn Sperzel closing remarks John.
Thank you John.
I'm proud of our team is responded during the early days or the coded 19 pandemic and continues to adapt well quickly m. on any policies to ensure the health and wellbeing of our employees and our customers.
<unk> 19 pandemic has created challenges around the world.
Mostek testing center stage and its value has never been more apparent.
During the first quarter, we implemented important changes across the organization and made meaningful progress advancing on our new corporate priorities.
Already more sales and putting our operations and advancing our pipeline.
Voted providing updates our progress toward these priorities throughout the year.
Well now open it up the questions operator.
Thank you at this time, if you do have a question and place them off by pressing star one again.
For questions today, well her first.
Not with the S.C.P.U.V. rank.
Hi, guys of Scotland Folly on per couldn't eat begs. The question. So first of all from dropping the licensing deal with.
So that could be 19.
I was wondering if you could walk us through kind of what is left to be done with the dog for validation. The development standpoint begin using that day on the on the T. too, yes instruments and that worked there is a prude would would have your manufacturing capacity look like at that time.
Stop I have Tom law, we are cheap science off to on the call as well.
<unk> be the scientific question about what's left of you down on the test in terms of manufacturing capacity I will say that on the operation thought about business or Sars coded to just use as many of the same materials that are bacteria, Canada or resistance battles needs is so from a supply chains now.
Very good shape, and we have sufficient manufacturing capacity such that don't need to add additional resources to enter this test into our operations in terms of actual output numbers.
Bit early we plan to make the test first develop at the end of this quarter of an update on what the specific output will be adopt at that time. So Tom can you address the assigned to the question.
You bet. So we've got the test touch the volume Hell's from Hackensack, and we have been.
It will be more than optimizing that we really care about aborting some of the quality issues that some of these are we were tests have suffered from and we know that <unk> <unk> <unk> <unk> <unk>, we get the performance suit our customers would expect.
System, So cool do an optimization.
Marching towards the timeline to June sure.
Okay, Great and then if I could on the code without a again.
So could you guys provide any more color on the the pricing throughput characteristic of death.
And then how do you expect the I'd say the kind of stuck up but that's the current P.C.R. standard in terms of the margin good.
The other lab.
Yeah. So this is John again, let me just I'll give me some some thoughts on on you know, where we're going to target customers. Some general remarks about pricing because I think that'll that'll satisfy some of what you asked for keep in mind not wants to test yet so I don't want to get to part of how about skis on it but.
The customers that we plan on targeting include hospital intensive care units.
<unk> and transplant units. So we're targeting the same departments with the launch I'll be teaching Sars Coby panel that we sell to today. So this is about expanding out menu with the addition of Sars coby to panel it fits our strategy.
Freaking tests utilization, among our install beliefs as well as increasing adoption of R.T. two D.S. technology, we recognize that some hospital labs will have a new port increase task given to the demand and and the supply challengers and we believe we can satisfy some of that as well.
With respect to pricing Scott. We also know there's a wide range of coded 19 pets available as well as being developed including molecular and antibody test as well as a test based on rather poorly or appointed technologies, we anticipate launching a high quality molecular diagnostic test gets used in the hospital Mark.
And we anticipate that are placing will be competitive in that segment.
So it's very helpful last or like good on agrees that you know that comments you made it regarding instrument <unk> then the capital purchasing environmental for hospitals right now.
Without being said is there any views on the second half and.
If there could be a rebounder wouldn't read that would look like in the second half a year.
The question.
Sure. So I would say that I've strategy is to drive test utilization and so success with that strategy is not dependent on instrument placements in 2020, obviously as we look out to 2021 2022, we want to make sure that we start to draw like a a larger.
All day, so that we can say, they're execute that strategy, but as far as 21 2020 is concerned they headwinds that were experience recorded 19, when it comes to instrument placements instrument sales is not competing our strategy to digest utilization. So we do but when we but as thing.
To lighten Bob as a hospital beds start to increase bandwidth to look at advancing new technologies that they were considering that that will provide additional opportunities supposed to increase our installed base for that that begins and the second half of the year.
Well her next today for macro said she was kind of course community.
Hello. This is password on automatic spectra, taking the question.
So first question yet.
Maybe the proximity of Kobe Tar cope with 19 and related cone sections and secondary infections. Your cats target how should we think about any longtime potential for elevated utilization for your commercially launched in pipeline test as as pandemic unfolds.
I think it fits perfectly within our strategy, but the strategy as I was just mentioning a while driving test utilization is also strategy quite common in diagnostics, which is to continue to broaden your test menu and we see this at the natural extension of I'll just menu for critically ill patients.
One because of the connection with with sex is causing pathogens and the lead to to pull the nineties. There there continues to be more and more data that's coming out that week that you together, okay. Our customers are seeing that and many customers. Among all install base are asking us how quickly our tries to be available.
So we see demand for it and you see that demand being sticky.
Thank you and one more looking here at the commercial organization. How are you working now to keep the sales p. continually engaged during a pandemic in there have been thing instead of surprise regarding your commercial feeding or commercial efforts throughout the past couple of month.
I'm going to ask Tony part they are cheap commercial officer to address that as he's closer to it.
<unk>.
Yeah. Thank you on.
Yeah. So it it's been a somewhat of a challenge to reach many of our our you know.
Customers, including infectious disease, clinicians and pharmacist, but it hasn't been impossible. So we are using technology to help us as as as a matter of fact, we get set up a web in R. to talk about these these colors action and how t. two can help.
In diagnosing the color taxes that are very content with <unk>, but we're also setting up a remote training sessions for some of these accounts, where you evaluation has completed but they haven't been brought to the team usage, yet and then last week, we are reaching.
<unk> weekend, and we're using or medical science create bonds.
For this task is equipped niche and <unk> two clinician discussion.
When we talking about these these secondary infections the great thing is.
For those customers that had implemented our cats and utilizing on her routine fashion as John alluded to we have seen quite not fixed and the orders you know for those particular counts. The account you know that that are impacted you know in terms of total living in order.
Her in test I those were the evaluations would not completed and those those evaluations have been suspended for the most part although we have seen continuing gets on a.
Right.
Thank you.
[noise] clients call partner.
Good afternoon, guys think sticking the questions just first for me on the the cost of of good sold you mentioned the 1.2 million a write off in in the corridor was if I've heard you correctly was that all covert related.
Yeah. It was driven by Cold-blood two parts, we've got the reagent rental instruments and we took a look at the cash flow is related to those.
And what the uncertainty, but due to cope with took a charge there and then similarly as you know we took down or we have about guide for 2020, but we did agree work our plans for 2020, as we communicator Alas conference call and and that impaired somebody inventory for T., two drugs instruments as well.
Okay that makes sense and then just on the the cost reductions going forward. It sounds like it will take a little bit of time to to kind of work off I mean is that a function off you know some of the raw material inventory that you have maybe at higher costs or work in progress inventory, but you know what's a good way to think about when the improvements that.
You guys are in the process of making will will start to show up in reported results.
Sure. So it's it's a series of changes in the manufacturing process to get efficiencies of scale.
Efficiencies in process in indeed.
In the reagent manufacturing process and they'll take place between now and you had that these were but as their complete a big have rather dramatic improvements to yield reductions and scrap rates.
Okay, Great and then just just a couple of on the the the covert tests. You know is there any type of you know quantitative measurement on the panel or any way of getting at viral load.
On that.
Some would you like to check that.
That leaves sorry.
Currently under update you way, the the Sars Kobe to test or qualitative.
So that's halfway that we're taking this test down.
I think what's really important it's getting robust performance, particularly in the appropriate sample matrices.
Okay that makes sense.
Just last week for me. It you know it seems like a in the data that's come out a very high percentage of the patients that are passing away from <unk> have subsets, whereas a lot fewer of those recovering <unk> do you guys have any data or any anything to point to that can tell.
You know maybe how quickly some of those those patient call that patients were diagnosed and whether that hadn't any impacted to whether they're they survived or not.
Yeah.
Yeah. So we we don't have the data from our own customers right now, but we do have customers that are using our tests in coded 18 patient population. So we're excited too yeah, we got our hands on that it's it's they're able to actually collect the data and shirt.
Okay, so stages there.
Yep Yep.
Got it alright, well thanks, a lot for taking the question settlement.
Thanks, I guess.
And once I get for questions, let us start one at this time well your next from Steve Prozac with W. <unk>.
Hey, good afternoon gentlemen, thank you for taking the question. John This question goes straight out to you, giving your configuration right now and the steps that you've taken can you answer how you reconfigured based on what I, what I I'm looking at as an observer is making.
Larger sales to a larger group versus throwing out there and doing it in one's twos and threes and how down approach how do you foresee that approaches and taking place and and shifting into and then I'm going to fall question. After that please thank you.
Sure. It's a good observation Steve years, certainly focusing organization on trying to make sales at a higher level, including the use of our management team many of which have permission experience you see that evident in the premier contract with the company is awarded that was a deliberate attempt of the company to go out in debt.
A major interesting organization I'll get contract.
Followed that up with a contract the big again, so that opens up substantial opportunities, we still have to go out and and <unk> those customers and we'll also targeting large integrated delivery network. So you are absolutely taking a top down approach and they focused approach to.
Strategy.
Great.
Keeping along those lines you alluded to it earlier in the call, but obviously and you're looking at at that kind of a growth you know because a lot of a lot of different entities are complaining about access to products. You know any kind of any kind of components such what steps have you taken on that front on the manufacturing front to ensure that for that type of.
Of approach that you're taking that you can satisfy it when when it does present itself.
Well I think it's there to say that more diagnostic company the line, where I've had unlimited manufacturing capacity in so many companies are working through the process of scaling function and.
One benefit that we hobbies.
Company was built to produce more volume, but it has extra ugly, but <unk>. That's why set him up depends remarks that we don't really have to to add additional capacity to launch all sounds coby to test. It doesn't mean that we have unlimited capacity, but we absolutely have capacity right now once more.
Yeah.
Okay, and and I'll cheap I, one and one for you how about one for Tom and I'll get back on and as you. Please <unk> in in terms of and by the way congratulations and and quick thinking on the on the corporate site. Obviously can you can you give us any background in terms of because this is the first innovative tough that you're gonna you've gone out.
Developed you also went out there and did Canada or a couple of years back in conjunction with C.D.C. What did that teach you what did that teacher in terms of the ability to go out there and turns you on this on a on a new cast and.
Anything you want to give I I'd be very curious to know and understand that no hop back in a cue. Thank you.
Yeah.
<unk> office experience.
Taught us that as a platform was easily configured for different type of sample matrices. So because it's teaching magnetic resonance based it's agnostic to sample matrix and seeing as we've been seen.
We're testing in English and transport media or other type of matrices. The the top room looks very robust sleek and so that's enabled us to be able to a more quickly reconfigure. How are we agents who wants reprocess is the test crunch, which meant to be able to go after <unk> a sample point so that's why.
I think that we're excited about with this test is.
It's not a is complex is doing a direct from whole blood doesn't require anywhere near the the high sensitivity of bars or direct from <unk> detection test.
Reduces the turn around time and reduces the manufacturing complexity and so it's it's a nice situation to be in.
Great again, thank you for taking the questions.
<unk>.
Once again for any further questions that will be star one.
Things that you've offer closing remarks.
Thanks for joining us on today's call into supporting to do balls systems I look forward updating your next quarter.
<unk>.
<unk>.
<unk>.
Yeah.
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Oh.
Yeah.