Q2 2020 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to these seven remote corporations second quarter fiscal year 2020 earnings call.
At this time all participants are in a listen only mode. After the speakers presentation. There will be a question answer session to ask your question during that session, you'll need to press star fall by the number one under telephone keypad. Please be advised on today's call is being recorded for your where any further assistance. Please press star zero at an operator, we'll be happy to assist you.
Oh no against the conference over to your first speaker for today, the senior Vice President of marketing and Investor Communications Page Melching Ma'am. Please go ahead.
Thank you Ian good afternoon, ladies and gentlemen, and welcome to send me an <unk> second quarter fiscal 2020 earnings call a copy of our press release and slides for today's discussion are available on our website at <unk> Dot com and the Investor Relations section.
Let me remind everyone that today's call is being webcast didn't recorded and will be available on our website you can follow along with our prepared remarks in the slides provided on our website.
During this conference call, we may make projections or other forward looking statements regarding future events, where the future financial performance of the company. We caution you that such statements are just projection.
The company's actual results could differ materially from those projected in the statement as a result of a number of factors most notably the ongoing impact and the cobot 19, pandemic, which had and are expected to continue to reduce demand from our customers interrupt the flow of our components needed for our customers product restricted type approach.
Next we can build for customers and create health risks to our employees.
Other factors that could cause results to differ from our outlook include a burst changes to the key markets. We target significant uncertainties that can cause our future sales and net income to be variable reliance on a small number of customers for a substantial portion of our sales risks arising from our international operations and the other factor.
As set forth in the company's annual and quarterly reports filed with the Securities and Exchange Commission.
The company is under no obligation to an expressly disclaims any such obligation to update or alter any of its forward looking statements made in the earnings release on this conference call an honor Investor Relations section of our website, whether as a result of new information future events or otherwise.
Unless otherwise required by law.
You'll note in our press release insides issue today than we have provided you with a statement of operations for the quarter ended March 28, 2020 on a GAAP basis.
As well as certain non-GAAP financial information a reconciliation between GAAP and non-GAAP financial information. It's also provided in the press release and slides posted on our website.
In general our non-GAAP information at clip excludes restructuring cost acquisition, the integration cost noncash stock based compensation expense amortization expense and other unusual or infrequent item.
Any comments, we make on this call as they relate to the income statement measures will be directed at our non-GAAP financial result, accordingly, unless otherwise stated in this conference call.
When we refer to gross profit gross margin operating income operating margin taxes net income and earnings per share, we're referring to our non-GAAP information and I now like to turn the call over to Hartman label, Chief Executive Officer [laughter]. Thank you Peter and also for me a warm welcome to our second quarter earnings call.
In addition to page here today with me is also could our CFO.
The last week SAP in some of the most challenging in mind Pops in all of all curious.
I'm in particular pleased with exceptional management team.
They've stepped up to the plate.
Minutes wave after wave of operational adjustments.
He can give all customers, who are not which happy with us for 15 years to think mission critical high complex end markets.
So let me take this opportunity to think of leadership team and of course. Thank you two out of all customers in key suppliers, we collaborated with us extremely well during the last few weeks with that let me pass on to Cook, who will take us through the quarter.
Thanks Arvind.
Stirred up the quarter strong and on track to meet our original I'll work.
However, as the quarter progress we started the impacted by Cobot 19.
We first saw this is our employees in China were delayed and returning from Chinese new year.
Secondly, there were delays in our Chinese support here, we had been shut down as well and who supply to our operations worldwide as well as the operations of our customers.
Thirdly, we saw the impact to the timing and cost associated with the logistics the supply chain, especially freight.
Finally in March we saw the impact of the shelter in place and similar restrictions on both our operations as well as the operations of our customers.
The fact that many of Sammy those products are considered essential and its search are subject to certain exemptions from shelter in place for similar restriction restrictions helped mitigate the impact, but we were still impacted.
As a management team, we focused on what we can control, namely optimization of our cost structure.
Limitation in new capital expenditures to only the most of the central items and cash generation.
With that I'd like to walk you through the details for the quarter.
Hey, good please turn to slide three.
Second quarter revenue of 1.6 billion was down 13.6% sequentially.
And 9.1% lower than the midpoint of our original outlook provided in January.
Again, this was primarily due to the impact of Cobot 19, as we previously discussed.
As you know we grew our original I'll look back in March.
Q2, non-GAAP gross margin.
6.9% down relative to the per quarter.
This was primarily the result of.
Under absorption due to lower revenue levels.
Manufacturing inefficiencies.
And additional costs caused by covered my team.
There were certain limitations based on government mandates in certain geographies, which prevented San Marino from optimizing our cost base for the lower revenue levels, which we would do in the normal course.
Q2, operating expenses declined relative to depart quarter to 62.8 million.
As we focused on reducing spending as the uncertainty around cobot 19 started to become apparent.
Q2, non-GAAP other expenses were approximately 13.5 and <unk>.
This was up approximately 9.3 million relative to the prior quarter.
This was primarily due to a loss of approximately 5.1 million related to deferred compensation assets.
Primarily as the result of the decline in the stock market and other financial assets in the second quarter.
This compares to a gain of 2.0 million in the first quarter.
As a reminder gains or losses related to deferred compensation assets have no net impact on non-GAAP earnings per share.
Deferred compensation gains or losses are equally offset with corresponding increases or decreases in manufacturing and operating expenses.
Finally, Q2, non-GAAP fully diluted earnings per share declined to 32 cents due to the impact of covert 19.
Revenue and gross margins.
As the uncertainty related to covert it became evident we limited new capital expenditures to only the most the central items.
Net capital expenditures were approximately 16.4 million in the quarter.
Depreciation amortization was approximately 28 elegant.
If you dial please turn to slide four.
Here you can see additional income statement details related to the quarter and the associated comparisons.
Now please turn to slide five and I will discuss our two segments.
Both are segments revenues and gross margins were impacted by Cobrand 19 relative to our original outlook for the quarter.
As you can see on the left I must segment revenue declined to approximately 1.3 billion.
Non-GAAP gross margins down to 5.8%.
On the right hand side, you'll see components products and services revenues declined to 327 million.
Non-GAAP gross margins were down to 10.6%.
Now please turn to slide six.
On this page you can see our revenues by end market.
Well many of sand munis products are considered a central.
And such are subject to certain exemptions to shelter in place and other restrictions.
Many of these markets were still impacted by the supply chain disruptions caused by Kobin. Thank team.
Now please turn to slide seven.
Our balance sheet remains very strong despite the challenging quarter related to covert 19, we generated approximately 136 million of cash from operations.
And approximately 119 milling enough free cash flow.
Cash and cash equivalents were approximately 1.1 billion at the ended the quarter.
Towards the ended the quarter given the uncertainty related to covert 19, we decided to draw down 650 million of our 700 million dollar revolver.
We did not use any of the cash last quarter.
And we do not expect to use any of this cash in the third quarter.
As I mentioned before we generated free cash flow in the second quarter and expect to generate free cash flow in the third quarter.
We continue to maintain a low debt to cash ratio a point.
Our term loan has a balance of 366 million and matures in November 2023.
During the quarter, we repurchased approximately 2.4 million shares for approximately $61 million.
For the year to date, we've repurchased 2.7 million shares on a total of $70 million.
We will continue to be opportunistic and repurchasing shares.
Inventory was up approximately 40 million and inventory turns declined to 6.9.
This was due to the manufacturing inefficiencies and disruptions in supply chain caused by Copel 19.
Cash cycle days were 61.7.
Non-GAAP pre tax return on invested capital was 14.6.
I would now ask you to turn slide eight.
Here are you can see additional balance sheet details related to the quarter Andy associated comparisons.
Now if you please turn to slide nine will discuss the third quarter outlook.
Well, our Chinese operations are up and running and a Chinese supply chain is improving daily we still foresee continued impact to our operations in the third quarter and the rest of the world.
Although again mitigated to some extent by the fact that many of the products. We manufacture are considered essential.
In addition, there remains uncertainty as it relates to the impact of shelter in place and other similar restrictions on our supply chain outside of China as well as on our customers.
The impact of Coburn 19, and the macroeconomic environment will continue to evolve as the quarter progress.
Again as a management team, we will remain focused on what we can't control, namely optimization of our cost structure limitation on new capital expenditures only to the most essential items and cash generation.
Our outlook for the third quarter is that revenue will be relatively flat in the range of 1.5 to 1.6 billion reflective of the continued impact of cobot 19.
Customer demand for the quarter as expected to be relatively stable with the exception of weakness in automotive.
We expect non-GAAP gross margins will be in the range of 6.4% to 6.9%.
As we continued to be impacted by cobot 19.
This relates to under absorption continued manufacturing inefficiencies and additional costs.
Non-GAAP operating expenses should be approximately 61 million to 63 million.
We continue to be focused on reducing operating expenses given macroeconomic uncertainty.
We expect non-GAAP operating margin to be in the range of 2.5% to 3%.
We expect non-GAAP other expenses to be approximately 10 million.
Our non-GAAP tax rate should be around 22%.
We expect non-GAAP fully diluted share count to be around 70 million shares.
When you consider all this guidance our outlook for non-GAAP earnings per share for the quarter is in the range of 30 to 40 cents.
Adjusting for an estimated stock based compensation of 12 cents per share.
GAAP diluted earnings per share is expected to be be between 18 and 28 cents.
Again, we plan to limit new capital expenditures to only the most decentralized ups, we expect capital expenditures to be around 17 million.
Well, we expect depreciation amortization to be around 28.
Finally, despite the continued impact of cobot, 19th we expect to continue to generate free cash flow in the quarter.
As I sit here today, there are a lot of variables, which are changing every day.
As we manage through the cobot 19 crisis.
Not only do I believe Sanmen has navigated through these wells to date I believe we're positioning ourselves well with our customers and our key markets to benefit during the ultimate recovery.
And with that I'll turn it back to Hartmut for additional comments [laughter]. Thanks. Good. So let me add my comments to what Oh could just outline for that please refer to slide number 11.
To set the stage I think the film mix Amena is very much at the center of the Cobot 19 crisis case, why do get through these challenges we need three things to work for us to one all business.
Number one.
We need logistics channels to bring Pos in dos Santos and to ship to end customers.
Number two.
We need to functioning supply base.
We may have not done I'm parts, but without number 100, which might be a golden school you cannot fulfill the order.
And number three and probably most important we need employees to be in the factory recognizing that some work can be done from remote offices.
So we have to manage all three so we can produce and shipped all end customers.
Seeing how I look let me walk through this issue is under pressure and uncertainty tells me a lot about this I mean a team.
And our company.
[noise] just like other multinational supposed semina cobot 19 also startup in China.
We have a relatively small presence in two key cities.
The local teams and our other regional teams rapidly bulldog waves of operational adjustments through on network by the time the challenge US arrived in Europe, and Americas, We had learned a lot and were relatively well prepared.
The primary responsibility is to keep our employees save from while building products that our customers need right now.
For example inside of one week.
We move 7000 associates to set up and work from home.
Today, we have ample protective equipment supplies on happened.
New protocols how employees into facilities.
Social business thing.
And we know how to isolate possible infection cases ahead of time in the future.
I hear from all customers. They appreciate our transparency and our willingness to shell protocols with all customers to improve their very old procedures.
So far we've had very few cases than it has been manageable.
Obviously, we still expense major disruption, adding additional costs and inefficiencies that we working through.
With regards to our supplier base, we greatly enhance the day to day monitoring including financial strength measurements.
We enjoyed great collaboration with our customers since certain suppliers are unique to some customers.
We experienced some delays in constraints in particularly in the medical space with BP.
Monitoring test in high demand by MMS personnel.
Well I think overall. This addition, layoff transparency and monitoring is making us a better company.
No customers appreciate that.
[noise], we experienced similar challenges with freight and cargo.
As we all know due to the drop in passenger traffic cargo capacity is greatly reduced and they unbalance worldwide.
Great prices have gone up.
Working with clients, we are finding optimal routings.
We expediting for critical parts, especially in Kuwait, Nike really the production of tests equipment and mentally this some clients have entered into partnerships with local and national carriers to complex exactly that.
We managed the logistics for them.
At the limited the limited direct financial impacts will see me semina, but the lace and timing of delivery of components can impact revenues.
And the efficiency at the manufacturing plants.
[noise] So to me the last few weeks demonstrated what mission critical products really mean and be a life for that please refer to page slide number 12.
For example in Cds with stay at home autos, we quickly documented to local authorities the essential nature of our work.
Within days, we could we start manufacturing for many of our customers.
This was spawn speed was very much appreciate the bio customers.
This is really the mission critical nature of all work and honest our experience showed this is much more than a marketing slogan.
[noise] and mix please refer to slide number 13.
Well I want to share with you my observations about our end markets.
We have limited visibility, although I believe that all focus markets will be relatively stable to support our guidance.
With exception of automotive.
As we know production in the automotive sector has stopped paying much worldwide and it's unclear about the timing and speed when the recovery will occur.
We have some exciting new engagements on a medical side. For example, currently with exclusive manufacturer manufacturer of a rapid sub 15 minute Cobot test set received emergency FDA approval. So this is I'm very exciting development to be part of.
Full year, many local police stations fire departments, and Dms personnel, we build communication systems that allow frontline managers to respond to the speed and confidence even if the public network, so overload or down junior emergencies.
I will optical network customers are quite optimistic about there on a book as communication banquets constraints is not something all of us kind of relates to almost daily.
And finally, the defense industries core demand is intact.
Again.
This is.
You know the with the relative stability recognizing that our customers and ourselves have to continue to walk through supply chain logistics and personnel challenges, but hopefully it will also be gradually coming down in the weeks in quarters ahead.
[noise], So where do we go from here and what do I see happening in the near future as I kind of look around the corner.
For that please refer to slide number 14.
As you can see from the actions we have taken we focus on protecting the institutional strength of some you know.
At this almost two to customers.
People and our partner network.
So boosting maybe close to our customers.
Based on all performance so far I believe.
They have great confidence in our management team and our approach.
In two and it gives our customers the confidence to partner up with Semina, even stronger would think school do recover.
And I think overall kind of the overall secular industry trend, which is partner network consolidation.
Oh partners and more.
Closer to end markets more regionalization those trends firmly intact.
Nothing they also playing to our strength for example last week to week Regionalization, we've always been organized along those lines.
[noise] [noise], we service, leading edge technology customers, where we provide first flexibility second.
Speed to meet end market demands and through it best total value for customers.
That has been our success formula in the past and I believe it also holds true tomorrow.
So if I'm a recap todays call them for that please refer to slide them, a 15, which is a loss slides in our Dick.
In Q2, we really focused obviously on take Gild Hall people revenue margins will significantly influenced by Cobot 19.
We focus on what we can control free cash flow, we generated nearly $120 million.
And finished with an industry, leading bounce strength, where the cash balance of $1.1 billion.
In terms of the outlook for Q3, we anticipate a revenue range of $1.5 billion to $1.6 billion.
Non-GAAP EPS of 30 to 40 cents.
And we expect to be free cash flow positive.
Why we're streamlining operations, so that'll be prepared for any market challenges. We also focus on being prepared so that when the recovery kicks in.
We are ready to go and go to meet increased the amount.
Well seasoned management team has done a couple of things and has demonstrated an almost resilience.
This is the same management team the walk through 2008, well the difference that today, we have a much stronger balance sheet.
Maybe we set up shop to the system is different but can also create opportunities.
I think we have some very exciting years ahead of us.
Again, I want to express a big Thank you all of our employees around the world to our supplier partners and thank you to all shareholders and investors for your long term support.
With that Ian we can open up for Q Nate.
As a reminder, everyone to ask a question you'll need to press Star then the number one under telephone keypad again that a star one to withdraw your question simply pressed around here.
And our first question is from the line of Ruplu Bhattacharya from Bank of America.
Your line is open by.
Hi, Thank you for taking my questions.
You know, you're giving guidance for the next quarter and I think thats, great I'm, just a little surprised because you know there is a lot of uncertainty and a lot of your competitors have also not given guidance. Maybe if you can just touch on at a high level. What are some of the things that are giving you confidence.
To give the guidance and it looks like a fairly tight guidance on revenues of the range of about 100 million. So so what are some of the things that are giving you confidence enough. So that you can guide them on to the June quarter.
Sure. Thanks. Thanks for good good question I think it's somewhat reflective of the the nature of the customer relations. We have we are we always try and close a close contact with all customers and take it probably even more to a different levels of organization or even more these days with all customers and so that's a that's been.
Much the the and on the feedback we are we hear from them that combined with a.
Pretty robust a you know bottoms up forecast.
You know we thought that you know based on based on that we feel and it will be appropriate to give a to give all estimate for of what the Q3, what that would look like at this point based on the available information to us.
Oh, Yes, certainly we appreciate that and it's at least a good guidance premature for us.
Maybe for my second question, if I can ask I think you're guiding flat from a end market demand standpoint, except for automotive Oh for the next quarter. So I was wondering if you can just drill a little bit deeper into the communications network what did you see.
In that the end market in fiscal two Q.
In networking optical or wireless and are the same trends continuing so when you say flat are all of these end markets more or less trending the same as as you saw in the last quarter.
Yes, no I think and the on the on the communications side I think there's some puts and takes off what I think what are the end market all customers. So I'm kind of thinking through and on the one side, obviously that dealing with very similar or supply chain, a an employee and readiness challenges that I described also and I'll call.
And that you have heard from them directly.
At the same time, you know there a this see actually a market opportunities to to grow. This space. So you know in terms of increased communication demand increased bandwidth demand increased the storage demand and so on and so I think that's why.
In balance I think I'll end customers in a communication space there.
They are reasonably I'm optimistic about dealt with for the space.
And that's why those puts and takes a kind of balance each other out that's why would that from <unk>. That's what we would call the space right now stable in supporting I'm kind of our although guidance right now.
Okay. Thank you for that and that's what my last question I'll focus on margins I think you've reported gross margin of 6.9%.
You mentioned additional costs associated with Covidien 19.
How much was that in the quarter and how should we think about additional cost associated with covered 19 in fiscal Threeq, Q and and looks like from the guidance you're guiding gross margin.
Down somewhat because you had said that items, if I heard correctly was 6.4% to 6.9%.
So you know what are some of the puts and takes that are impacting gross margin in fiscal threeq. Thanks, [laughter] could you may want to take the cool that's for sure. So again I mean, I think there a lot of variables that are interrelated as it relates to margin I mean, obviously it starts with volume.
And you know volumes last quarter word or down relative to the prior quarter down relative to expectations.
You know I think Sanmina has a history of adjusting pretty quickly to those things, but I think given a lot of the uncertainty and the speed of of how <unk>, the corona virus or covert rolled out I think that was problematic and I'll sort of think you know again as I mentioned in my earlier remarks their summer.
Frictions in certain geographies in terms of what we're able to do to reduce costs, but certainly under absorption as a key thing.
Inefficiencies again as you think about it.
Inefficiencies associated with not having everybody in the in the factory for inefficiencies associated with having everybody in the factory, but not necessarily having all the parts you need and then one departure off you've got to work overtime to pick things up and then additional costs are saying carbon talked on <unk> freight and some other things so they're they're all in.
Her twined I think the way I would think about it is you know we had guided gross.
Gross margins are in kind of the mid Sevens range.
For the outlook and I think we Alcobra 19, I think we would have been in that range based on our strong start to the quarter I'm, sorry, you're probably looking at a 50 to 60.
Bips ER.
Impact as a result of all those factors and covert 19 as far as.
Q3 goes we're going to see a lot of those some of them are gonna be different right. Because we won't have let's say they shut down that we had after Chinese new year in China up but at the same time.
We've got a fuller impact in let's say, the automotive business or some of the shelter in place stuff that didn't come into effect towards the end of Q3 or excuse me. The end of Q2 that may be in effect for longer in Q3, So I think you're going to see a lot of the same factors.
And I think that's why roughly margins are flat to slightly down on relatively flat revenue.
Okay. Thanks, Thank you for all the details appreciate it.
No problem.
Your next question please.
Apologies I was on mute. Our next question. This line of Christian Schwab from Craig Hallum Capital Christian Your line is open.
Great. Thanks for taking my question.
The other supply side dynamic issues can you quantify the difference between or call out any parts that.
Have caused disruption or is it really just kind of travel logistics to get them.
Yeah, you know Cushing good good question, though it's a its really so widespread it's a it's very much you know the proof I'd never described of how we had to walk through.
He had semina fifth of served us very much style into all of our supply base.
And so it's a I think everybody across the board at a base numbers of success to a two to get ready again, I think again it depends by location depends by the region.
And we worked maybe closer to that supply base to make sure that when we when we have the authority to a you know that but we could we see from our customers to a to be up and running a under under local you know government regulations. We made sure that you know our suppliers had those too so those lot of great collaboration, but I think I don't think.
What I'm limited to a particular commodity was maybe they have a widespread.
Okay. Thank you for that and then as we think about the second half of the calendar year. You know what are the puts and takes you talked about stability in that customer base, except for automotive this quarter June.
What are the puts and takes that we should be monitoring the closest.
Or you're monitoring the closest to to kind of anticipate what the second half of the calendar year could look like.
Yeah, you know it's a it's it's a you know it's those the three factors that we're trying to balance here and optimize notices employee readiness that still you know you know there's still some adjustments even today on the day to day basis, making sure that when the recovery comes back we.
I have the right protocols in place for employees to come back at the as you know I'm at a different intervals really ensuring that we you know they'll be optimizing all oh look to see partners and accelerate when Pos come into facility and and then you know being baby close who also.
Lipase partners, so it's not the that optimization.
We are ready when one and a when the recovery kind of Stetson.
Great and my last question you guys, a expressed some customer optimism and optical gotta given bandwidth issues globally.
Is there is there any other silos of or pockets of strength that you know semi cap equipment that they give a small exposure there but.
Is there any other pockets of strength that you're pleasantly surprised by.
Yeah, no. It's a it's a <unk> I think it's kind of right now it's a bunch of puts and takes a that's why would that there will be kind of called you know the outlook for end markets and as it relates to Oh, two all Q3 kind of call stable right and a to b to B senior in the next several weeks.
If I if some of those end markets, maybe accelerate the only than than than some others.
You know the optimism that all about half a in fiveg rollout and the timing around that I think that's still intact, but to be seen like how the short term issues impacting the timing around that.
Good anything else on that on a note.
No I think that's good yeah.
Great. Thank you know the question.
Thanks, Chris.
Once again, ladies and gentlemen, if you like to ask an audio questions simply press star followed by the number one on your telephone keypad again that the star one our next question its line of Jim Suva from Citigroup, Jim Your line is open.
Thank you very much.
Yeah, I have covered and we now for a very long time in your company has done a lot with diversifying.
Across the various end market compared to what it was a decade or two ago.
But if I look back at the last time, when there was a big oil crisis I recall, San Marino had.
Receivable collection issues customers. So are you reserving a little bit more allowance for uncollectable accounts or have your collection has been pretty sufficient the past few years, where you have enough buffer.
Sure that need to be some some challenges in those various end market not just oil and gas but.
Small business is private businesses, you may have trouble with fundings.
Sure. Good. Good question certainly you know we have a very robust process every quarter looking at are outstanding accounts receivable in particular, focusing on a amounts that are their past due or companies that you know financials are a bit challenged.
I would say for the quarter that we were in our collections were actually are in line with what you would we would normally expect.
And so so far we haven't seen any impact of that I'm certainly it's something we're monitoring.
And you know probably looking closer at than you normally would although again, we have a very robust process normally as well so no evidence of back yet, but certainly something we're keeping an eye on.
Great and my follow up question as you mentioned strange and optical is that like accelerated stray beyond than what you maybe thought three months ago or so or is it a strength in optical relative to just the macro economy slowing.
The reason why ask is you know some people are talking about the need for a better optical for enterprise and work from home and those type of solution. So I'm wondering if it's actually an acceleration or is it just simply it has just perform stronger.
Relative to the overall economy, which would given krona virus, it's no one's fall that simply just the world that we live in today.
You know Jim Good question, but let me let me clarify my earlier comment I my sense, the even in communications the puts and takes kind of cancel each other out there has obviously long term optimism for five GE, but even though communications end market is.
I'm walking through the same supply chain employee logistic challenges here and that success of the reason why.
I characterize even the communications market as stable supporting our guidance. So I don't I don't see a any any like you know extremists optimism, but I'd like to characterize this had a stable and or nothing in the cooling environment. That's a that's a that's almost a good thing to have.
Hi degree concur. Thank you so much for the details and follow up to its greatly appreciate it. Thank you.
So operator and a in we have time for one more question. If this one more question nothing we're happy to take though.
Ladies and gentlemen, once again that star one in order to ask a question on todays conference.
And at this time I'm showing that we have no other questions in the Q.
Thank you. So let me does take a moment here on behalf of all on time management team.
Want to say go all of you for attending today's call. Thank you for the insightful questions.
And the hope that you and your family into team members will stay healthy.
We are very much appreciate your long term supportive Sabina and look forward to speaking to the next time, which will be all Q3 earnings for call.
Thanks, again and goodbye.
Ladies and gentlemen, this concludes today's conference call. We thank you greatly for your participation you may now disconnect.
[music].