Q1 2020 Earnings Call
It's like the one stop systems first quarter 2020 conference call.
Where somebody in today's audience passing away shortly I appreciate your patience and please remember line.
[music].
Please standby.
Good afternoon. Thank you for joining us today to discuss Onestop systems financial results for the first quarter ended March 31st 2020.
What does that they had the company's interim Chief Executive Officer, David Ron <unk>, Chief Financial Officer, John Worsen.
Joining today is the company's chief sales and marketing officer Jim.
Following their remarks, well open the call to your question.
Before we conclude todays call I'll provide some important cautions regarding forward looking statements made by management during this call.
Just to remind everyone that today's call will be recorded all being made available for replay instructions in today's press release and Investor section of the company's website now like to turn the call. Once that's interim see CEO David Wong. Please go ahead Sir.
Thank you Jane and good afternoon, everyone.
But again I would like to thank all our employees partners and customers for their hard work.
Dedication.
I'm certain times.
Today's call we will focus on my.
View into our businesses.
On the code at 19 front, we are pleased to report the company still does not have any known cases the virus among the team.
We've been able to continue to build process and shipped customer.
I pointed out in March the medical military another critical application served by our products.
Players that we remain in operation continued to provide essential infrastructure products that we design and manufacture.
Although one stop systems like other companies has been impacted by Kogan 19.
Oh change acted swiftly in Q1 to secure product Bourbon and pivot into a virtual workplace.
Yes, well, it's a strong flows resulted in a solid top line results above our first quarter expectation.
<unk>, 33% over last year and 13.4 million.
The growth was largely driven by or expanded product offerings and strengthen sales capabilities.
As many of you know the core of our value proposition is our ability to design and build ultra high performance computing products that leverage or skills in the area switch fabrics and the ability to manage all in challenges associated with high performance communication protocols like piece Expressjet for.
[music].
Building office expertise during the quarter, we introduce new PCIA expressjet for expansion systems, adding to our portfolio, maybe I'm flying products.
By combining our proprietary technology, no cow and designs with the latest Nvidia Gpus for example, you're leaving the market engine for technology power to the <unk> applications at the edge.
Our strength in this arena of less than $2.1 million in orders to date for what says yeah on the fly system elements for use in next generation autonomous vehicles.
These customers are great are a great example of how high west South.
Hi.
And the Brexit or teams levers the respectful to perspective skills sets to provide a compelling solution for opex, leading international rights Your company and a European auto manufacturer.
Autonomy mobility represents like marketing segment for us that we anticipate will grow over the coming years to become one of our top markets in terms of overall sales.
Well Cobot night team has been.
Aging many things around the world. One stop systems has also been changing over the last few months building a stronger foundation for the future.
It's all began with the assess board of directors decision in February to make a change in the CEO role to bring on a different skill set.
Based on my public company CEO experience, plus you know you're already but the industry the company and the management team I was asked to take over as interim CEO.
With that change the management team immediately started working to map out at plus action on several fronts, which included a reorganization expense reduction and securing additional capital.
I'm pleased to report we have successfully exceeded executed on all these objectives.
On the organizational change in expense reduction from some of the key objectives include.
Improvements in operational efficiency margins product value propositions leadership positioning in specific markets and profitability.
Well, it's better to find high return product Roadmaps.
Other changes, including the addition of <unk> product marketing the elimination of two other executive roles Skillset realignments and the acceleration of the full integration consolidation CVI organization.
While the objectives associated with most of these recently implemented changes will take time to yield desired effect.
Tell the company. The next level, we expect the benefit from the expense reductions will start to show the current quarter.
We will be fully realized in the second half.
Were moved approximately 2.5 to 3 million again.
These reductions were implemented to help secure sustainability in light of the current and certainly as market as well as reduce our expense base to drive higher profitability as the market returns to normal.
Although cobot 19 makeup influence these changes these changes where needed and most would have been implemented regardless.
Our current team is solid and motivated you will carefully and keep fresh talent to the organization when appropriate.
On the cash front, we successfully received funding for additional $4 million this month, which John will provide more color on in his section.
Again for days today's call I invited Jim I sent our chief sales and marketing officer to talk about customer activity design wins, and new opportunities, but first I'd like to turn it over to our CFO, John Morrison, who will take you through the financial details for the quarter.
John.
Thank you David and good afternoon, everyone. Thank you for join Dan I'm joining us today.
Earlier today, we issued a press release with our results for the first quarter ended March 31 2020.
The release is available in the Investor Relations section of our website at one stop systems Dot com.
Starting with our statement of operations.
Revenue in the first quarter increased approximately 33% to 13.4 million slightly exceeding the top of our quarterly guidance.
Our first quarter was not significantly impacted by covert 19 sounds like orders were intact in our supply chain had been secured.
During the first quarter, Bart observation watch what our customers will not yet filling the full impact.
Yes, and the economic downturn.
We are now beginning to see the impact of the covert 19 pandemic possible disruption to components of our supply chain and some quarters pushed out.
Every day, we received new information, which it introduces new uncertainties, which may or may not impact our business.
No we big every effort to read in response to these changes we are not able to comfortably quantify the potential of their impact on our business.
No focusing on the results of Q1, the increasing revenue was primarily driven by a diverse set of customers, which included customer server for our core media and entertainment business, which provided over one third of our growth.
Our revenue growth was also driven by piece Jive.
Chen for them.
Slide technology for our Tom to striving vehicle products sourced to North South classic regimen technology and concept the bond.
Concept development.
Each entity producing customers.
10 list.
Well ourselves classic contributed 78.4% of our quarterly growth with total revenue of 7.8 million for the first quarter.
Question her contributed 4.9 billion.
Representing a growth rate of 11.8% offer the Arab Gulf corridor.
Hi.
<unk> revenue of 622000 with growth of 9.8%.
Overall gross margins, 25.4%, producing 3.4 million help gross profit.
This compares to 24% gross margin generating 2.4 million in the same year ago corridor.
Gross margin for all assessed for the Rss Classic business was down slightly to 28.1 person from 28.7.
Roger and CD ice gross margins improved.
Getting 21.9 and 19.7% respectively.
As planned our overall quarterly margins came in lower than our overall annual percentage.
Was consistent with prior year first quarter, that's or higher.
Our margin military related shelf traditionally ramp up in the second half of the year due to the government purchasing cycles.
Our total operating expenses increased 10.4% to 4.9 million.
We would have recorded a decrease in quarterly operating expenses were not for one time severance benefits totaling $545000 relating to the departure of our former CEO.
Q1 also benefited from some of the initial cost reductions as David mentioned.
Our total operating expenses decreased as a percentage of revenue.
6.7% in the first quarter of 2020.
That's compared to 44.2 person sitting here and go quarter.
As a result.
Loss from operations for the current quarter was reduced by 521000, that's compared to the loss we incurred in the saying your adult period.
This improvement in our operations was offset by a reduction in our tax benefit for the quarter of 635000, that's compared to the prior year first quarter.
In Q1 on a GAAP basis, our net loss.
Attributable to common stockholders totaled 1.1 million or a loss of seven cents per share as compared to a loss of 545000 or seven cents per share in the same yoriko period.
On a non-GAAP basis, our net loss attributable to common stockholders totaled 714000 or loss of four cents per share that's compared to a loss of 420000 or three cents per share in the year ago period.
Adjusted EBITDA another cheap GAAP non-GAAP metric was a negative 950000 in Q1 as compared to a negative 1.4 million in the same year ago period.
Provide definitions of these non-GAAP terms and reconciliation to GAAP in todays earnings release.
Now turning to the balance sheet.
Cash cash equivalents totaled approximately $3 million at March 31, 2020, that's compared to 5.2 million.
Number 31 2019.
The decrease was primarily due to cash used in operations and financing activities.
Subsequent to the end of the corner, we raised approximately 2.5 million in a convertible debt offering which is stabilized our cash position.
We also recently received a paycheck protection plan loan totals approximately 1.5 million for total proceeds affordability in dollars.
Inclusive of these findings financing proceeds we currently have cash on hand today.
Ultimately $5 million.
We believe our cash position and available funds provides a company with a sufficient liquidity to meet our current our cash requirements for current operations.
We continue to work closely with our customers to ensure collections and property, we added to our liquidity and still have about 4.5 million of the previous 5.8 million an outstanding receivables due from Amit major media and entertainment customer who's paying down debt balance.
Currently agreed upon payment terms.
No. This completes our financial overview for the quarter I'd like turn call over to Jim.
Yeah.
Thank you John.
Welcome to 19 has created many challenges I'm pleased with how the sales team has embraced operating in the virtual environments activity has been strong and the customers continue to be very engaged evident evidence of our continued engagement includes three new program wins exceeding $1 million each that we secured in the first.
Quarter of 2020.
These three wins are with new customers, one military and one industrial OEM.
As of today, we have 27 large opportunities in our pipeline eight of these involve our leadership in our Pizza Express Gen four products.
It is important to note that as of today, we have not seen the virus impact our ability to identify in closing will opportunities and we remain optimistic about our future.
While 29 team wants to hear Jim for development and customer prototype in 2020 has transitioned into a production here as we announced earlier. This week, we have received over $3.5 million in production orders for our Gen. Four PCX press products from multiple OEM customers for delivery in 2020.
These OEM orders.
Present, the highly desirable sticky engagements, we like to focus on.
Well, our technology is built into the OEM design, leading to repeat orders.
These orders fit both our product focus India, any flash storage and GPU accelerators as well as our market focused specialized high performance edge computing for military instrumentation and Composable infrastructure solutions.
We generated over a half million dollars and Genfour revenue in the first quarter of 2020 compared to about 380000 for all of last year.
For our AI on the fly solutions as Dave mentioned, we received more than $2.1 million in purchase orders from two customers for products to be used in next generation autonomous vehicles.
We shipped $390000 to those customers in the first quarter inept bookings for an additional $1 million to shift by the end of 20 point.
As we mentioned in the March 2020 call. We have shifted the portion of our marketing budget normally reserve for trade shows two more digital marketing as most of our customers are working for low.
For example, we hosted a successful live in our last week. The first in our plan 2020 Webinars series.
At least to say yield at a similar number and quality of leads as we would expect from our in person trade show.
The high performance computing Webinars include a participation in joint marketing efforts with Nvidia and Marvell.
And we have provided recording which is available for download from the main banner homepage at one subsystems dot com.
Now with that I'd like to turn the call back over to date.
Thank you John Jim.
The full impact on the economy from Cobot 19 is yet to be known.
We believe we have taken the appropriate action to prepare ourselves for a range of possibilities as we continue to book and ship business.
And if the world economy eventually improves following the eventual defeat the global pandemic.
We stand to benefit from our recent internal transformation and continued leadership and high performance computing at the edge.
Well, we feel uncertain about the current quarter like many companies who have elected not to provide guidance and the spirit of transparency, we are providing a minimum baseline for expected revenue of $10 million for Q2.
For the first six months of 2020, given our first quarter revenue results.
The baseline of 10 million would put us at par with last year.
While we are diligently working multiple challenges in parallel to bring our performance up above this baseline we want to be realistic in terms of setting expectations given the market variables.
The impact and uncertainty are primarily in two areas first.
There are large media and entertainment customer came close to forecast in Q1, our shipments in the current quarter down significantly.
The management teams from both companies are in constant contact and it appears the customers product offering is well positioned to capitalize on the market return.
Second although we continue to work with issues daily we have been impacted by supply chain issues, especially for high end PCB boards that affect multiple customer orders.
Fortunately other than these dynamics customers want our products and the demand remains solid.
In terms of the second half the year, we see it being consistent with prior years, producing stronger revenue and margins as compared to the first.
While the impact of the current virus continues to create uncertainties. The programs that we expect to drive higher revenue and margins appear to be on track.
We believe the combination of lower spend from the implemented cost reductions. These higher margins increased revenues should start to materialize into more attractive financial performance.
But I stepped into this role of interim CEO on February 15, I saw the need for change in mix and expected many challenges cobot 19 added urgency.
Our teams have responded amazingly well.
And are working hard to minimize the disruption.
But also taken important steps needed for who asked us to become stronger and get to the next level.
And what should one stop systems look like when you get to this next level.
Well assess should emerge as a clear leader in high performance computing.
Then enhance value proposition that focuses on specific markets the command higher margins.
We should have a greater level of recurring business with a more balanced top 10 customers.
The should be driven by our current team flush fresh talent being challenged discover innovative ways to increase our efficiencies.
Stickiness and along the way create greater barriers of entry.
For our competitors.
This should include a greater floor scalable standard products, while increasing our value with our key customers who need our custom products.
While not easy we have taken the first steps towards this future and I'm confident in our revolving vision and capabilities and proud to be part of the assess team.
Now with that I'd like to open the call to your questions.
Thank you if you like to ask a question. Please signal by pressing star one on your telephone keypad experiencing a speakerphone. Please make sure. Your mute function is turned off Tobias North retry equipment again press star one to ask a question.
Let's take our first question to date from Scottsdale with Roth capital.
Hey, good afternoon, thanks for taking my questions.
Dave and John Thanks, So much we appreciate the increased transparency on the call.
Additional color that you provided with the business segments.
Maybe maybe diving into the 10 million dollar outlook I just want to clarify is that a baseline number that you have visibility to today or maybe help us understand.
What incremental business you need to wind to get to a number like that and then help us understand some of the moving parts you talked about certainly disguise.
Some sequential headwind, but this is typically a quarter when you see right down to think that was up a little bit in terms of the military contribution what are the puts and takes what are you expecting to grow a little bit sequentially what are facing some of those headwinds.
You had some other design wins that you you've talked about as well in terms of.
You know the PCR Gen four wins as well as autonomous vehicle.
How should that start to ramp up in this quarter. So is that I guess long long what did it is the 10 million a baseline and there's some other levers to the upside.
Yes, so yeah, we debated long on how we wanted to physician this but we wanted to be able to provide some kind of minimum baseline we feel very solid with the minimum baseline is the bottom line. We have good visibility into that what we have some dynamics of other things which are basically challenges.
We're working through.
And.
You know if they.
Some of that materialized and were able to.
Accomplish what we believe we can and that number should go up.
So it is viewed as a safe minimum number.
Gotcha and in terms of.
I guess some of the upside levers I would imagine you probably a pretty good visibility on Raytheon, but where are some of the other opportunities that would drive you above that I assume disguised as part of that Theres, a baseline number in there or is disguise completely removed.
From the June quarter numbers and also if you could give us some idea in terms of the gross margins are going into the June quarter, again, I think mix would probably be a little bit more favorable this quarter given the contribution from retail, but just to kind of confirmed that your early thoughts on that front.
So some of the variables of of that 10 million number actually include.
One of it is the one it kicks in or media count and went will actually happen through the quarter, we're not anticipating a lot, but there's still some activity there there's some new opportunities with pizza Gen four whether they're going to fall into the quarter.
Which always helps you know in the margin front.
Military.
So during the quarter is limited.
Military is really going to be in the second half a year or what we mean pickup a little bit of it.
But what's what secure in the 10 million doesn't have military.
Gotcha, and then and then maybe if I could as well just follow up on some of your comments around its compute it's nice to hear you articulating the longer term vision and strategy. There. How are you thinking about approaching that in terms of different sales channels different markets different verticals in how you chase it may be.
To follow up I think I think the number you threw out there was 27 large RFP is that are out there kind of circling around can you give us an idea how they maybe breaks down in terms of different verticals. Thanks.
I'll, let Jim getting a little more specific there, but I would say in general you know last year.
Company started to win new customers and new applications and so that was good in their current we're carrying through this year.
And as far as different sales channels and anything I don't think much has changed on that front Jim hasn't.
So no longer sales channel side of things were pretty Rocksteady with a combination of our.
Domestic and European direct sales channel as well as a adding in the channel partners distributors in key countries and also in the U.S.
So that's tough quarter doesn't change of the 27 large opportunities in the pipeline.
Those involving piece express Chen for.
Nine of those are in the military and aerospace segments.
About one of the current million dollars plus opportunities fall into that space.
But that should give a pretty good breakdown and the best part about it is there not slowing down of Covance.
The activity is strong and all those fronts.
Got you and what's the timeline on resolution for some of these RFP is our most of them be concluded this year or some of them going to extend and assuming that you guys you're getting your historic win rate.
What would we expect in terms of contribution and ramp up amendment to the 2021 time period.
Yeah, our historic win rate as bus related quite a bit.
In the 30, 40% range last year, we closed 76%.
Which was.
16 of 21.
This year, we have at this point 27, which is a little bit more than we had at this point last year in the pipeline. So.
Timeline is always based on the type of projects. So figure military is a 12 to 18 months.
The four production after we get the when the commercials tends to be six to nine months.
After we get the win.
So that's where the.
All of that falls and that kind of give you the breakdown.
We're up probably 20% in in our.
To date opportunities that we have today versus this time last year.
Great. Thank you.
Thank you Scott Scott.
As a reminder press star one if you have a question, we'll hear from Joe Gomes with double capital.
Good afternoon, thanks for taking the call.
[laughter] accompanied me.
On the out of disguise.
Hey man outstanding balance there.
Just can you provide any more detail or color there as to what kind of terms are there when you got spec.
And to pay that.
How are we.
Frequently are they paying any any additional color there would be appreciated.
Right now charging agreement that we have with them is that they pay 100000 per week, plus 150% of any product that they take.
Okay.
Okay and on the.
<unk> supply chain.
Issues.
Have you guys. Thank you hit the bottom there have you seen any improvement.
And even supply chain issues that you were talking about.
No the PV PCB boards, because we're using a decent primarily for the highest end type products.
And there are some shortages in the marketplace and then also frankly, we've had some issues were on board showed up at one working properly I mean as scramble to.
For each of the board so you've got some different dynamics. There. So it's not just a total 19 supply issues that we're dealing with and that's kind of built into the numbers were talking about that's been the main area.
The team has done a good job of giving you know semiconductor components and things like that in on time.
And for the most part of its really isolated to that.
Okay.
And one last one I'll throw the and I ask this.
Last quarter Alaskan again.
Your.
Have you you're in term I mean, when do we think we're going to happen as soon as you'd here on the permanent CEO, maybe you're doing a great job so be it would be bags to.
I guess have permanent CEO name.
Well, thanks for the complements first of all.
And.
You know, obviously I'd say you should talk to the board, but part of the board I think you'll see a decision relatively soon.
I am as we've stated last time, one of the strong candidates for the rule.
And but we've talked other people too. So I think I don't think you'll have to wait that much longer for need to get additional visibility on the.
Okay great.
Good luck fags [laughter].
Thank you Joe appreciate the questions.
Once again press Star one if you have a question, we'll hear from Ruben Roy with benchmark.
Thanks month start with a question for Jim.
Congrats on getting.
The design activity are continuing with the design activity I should say.
Now with all the challenges.
With folks working at home et cetera, that's in terms of the 27 opportunities and given the environment that we have here.
What's your sense of risk of either push outs of those.
Design wins, maybe taking a little longer than the typical cycle time to get through revenue, whether its military or otherwise.
Or even maybe you know is there more risk now.
Cancellations of some projects because of delays or things like that or do you think cesar.
Design wins that are pretty solid to ramp within that timeframe. So you had in mind when you when you kind of.
Mark them off its design wins.
Yes.
Thanks for the question.
So we.
Generally running that 60% to 70% range and the closing so we can't count all 27 on the books, yet I wish we could but.
Of that.
Some of them like push and.
But.
See with the level of activity that I'm talking about is that were being able to very well structure. The meetings with the customers to get them to the close and then get them into production fast because there's a lot less.
Distractions and office work in a travel and things like that in the way of either of our teams. So from that aspect is where it's been kind of nice than most peoples calendars are moving these things along rather well.
But.
Keep the saying you know win rate percentage.
In there without any significant.
Changes.
Got it and then Oh I'm sorry go ahead David.
Okay, and then just you know I just put always to caution there with all the things going on with the economy and.
Potential ripple effects, but you just have to read the newspaper watch the news I guess, we don't read newspapers.
You know so.
Clinical environment and then all this you know.
The stimulus funding and stuff I always wonder if that's going to impact it we're not seeing that but.
Some threads of that out there right now in the marketplace, where people are talking about them.
Okay. Okay.
Excellent.
And then.
I think I think he did a good job David on an earlier question around just sort of how you're thinking about near term guidance and the baseline versus.
The second half of the year and potentially some blubbers coming along et cetera.
All right when you when you're thinking about the military.
Contribution second half of beer.
How do you get there how do you think about.
Any potential impacts and administration changes or anything like that or is there anything that could change from.
You know kind of the designs that you had on the books today things you're working on that type of thing yet.
I would add some budget cuts for whatever reason or things like that.
At least.
Median term let's call. It the next 12 to 18 months.
Well I would go back just a comment I made that was what I was kind of learn to we're not seeing that kind of visibility we don't habit.
But you know and so lets say, there's a change and leadership and you believe that is changing leadership the government.
Salt and less spending I don't know if it really impacts us. This year really I think most people are talking about how's it going impact us and 21 and 22.
Sure don't have more of a crystal ball and.
Than anyone else on the topic, but were you know we're watching it and staying aware of it is what we're going to make sure we do.
Got it okay, well, that's why I. Thank you very much.
Thank you appreciate it.
And once again press star one if you have a question well hear from making good money with B. Riley.
Hey, guys. Thanks for taking my question.
Comment on.
What.
Lead times, you're seeing on those high in PCB.
[music].
Yeah.
The lead times are the PCB, it's actually very by the term that we want to get them and.
What we've seen as we can get pcvs anywhere from.
Four to six weeks on a premium.
Turnaround time, but typically eight to 10 weeks would be.
You know several.
Type of for run rate OEM, where we have a good forecasts types of a number to keep the costs down margins up type of thing.
We've probably seen.
If it wasn't for some.
Vendor.
I guess, a machine troubles and things like that than we've seen.
Most of them are still coming in in that timeframe, but we could see that push out an extra four to five weeks at some time.
Okay.
You mentioned in prior press solutions that can generate four to 5 million in sales over the next two years from desktop to this vehicle and lighting segment.
Can you comment on where you can pick up the growth to come from is that from existing customers you engage with the or are you looking to actively engage new customers.
So the answer both.
Active customers have provided a this is actually deploying on the vehicles themselves. So as they build the fleets.
With our current customers that that will benefit from that additional business.
And then there are several of the I think three of the 27.
Customers.
Currently have in the pipeline that are in the large trackable range are also in that segment because of our expertise at the AI at the edge.
Type products that they need.
Got it okay and.
Talk about your current utilization that used to implement the central.
Guidelines like where are you relative to more normalized operations.
With that.
Covance social guidelines.
Yeah, like social doesn't seem like your capacity utilization.
So she is also social we've seen guideline you implemented.
Yeah, So we've done a number of things.
John add to it.
But basically we do have the six feet spacing, we have enough ruminant production facility to do it and anybody that can work from home is working from home.
And that's worked pretty good and then other different dynamics, we take the temperature every morning when people come in.
And.
We're in base mass now.
So these are the type of things, we're doing and still as I reported we do not have any cases of it. It has not impacted correct me if I'm wrong, John has not impacted our ability to ship product that I know you know has not someone has gone so.
We don't expect that to be an issue in the short term.
Thank you got to hear that no. One has been affected then you can theater operation got I'll pass it on.
And once again press star one if you have a question we're out here from day flowers.
Hello, Thanks for taking law.
If you answered earlier I apologize, but we're all of the costly introduction factored into one.
No Sir.
They actually took place on April the eight so the accruals associated with the severance and not discontinuous continuation with the previous personnel will be reflected in the second quarter and then obviously cost savings will also then be rolled out through the remainder of the year.
Yes, so we alluded.
We alluded to some say Q1 and that was really more you know just kind of watching spending not with a from a plan in place and then also dynamics was like less travel and all of that and we implemented a plan.
Which went into effect right away, but you have little bit of the hangover effect because of severance and things like that of course, because it was April eight in the current quarter. That's why I stated, we'll see some of the benefit this quarter, but most of it comes through the second half and beyond.
How much of the expense reduction do you think will be realized indicated.
Well our annual run we believe we're going to between 2.5 and $3 million on an annual run rate Im just wondering about Q2 Q.
Q2, probably take that at a quarterly level and probably take about half of away. Thank John.
That's about where there's only been not ride piece of all around.
And then 100% in Q3.
Q3 in Q4 yet.
Good good the job.
Final question as.
The revenue sequentially from Q1 became too.
Oh, it's about a $3 million drop and I'm not really care in my mind exactly what was driving that.
Well, the 19 and I've heard can program, we schedule that thing.
Wonder if he could clarify that one.
I think the biggest one there is our largest customer which is the media entertainment customer, which we referred to as disguise.
Where they were at a good run rate forecast in Q1.
The dynamic of the industry, they serve which just as a reminder, they do the all the graphics and Lightings for concerts sporting events and although they were doing extremely well.
And there the guide and go to whether it was doing Super Bowl Olympics or whatever it's all those events Scott.
On hold back just ran their business.
Down to a standstill at least in the short term I am pleased to say, we spent constant contact with them, including my Oh and you know just the mood in the activity in the last month as turned much more positive over there.
That's great. Thanks Fellows you do they did a good job.
Thank you Sir.
We have no more questions I'd like to turn conference back to our speakers for closing remarks.
Right.
Uh huh.
Sorry for the disruption I didnt realize they added closing comments I'm here to.
[laughter]. Thank you thanks, everybody for joining us today, we look forward to talking to each of you in the future supporting our progress. Meanwhile, Slurries build region feel free to reach out to John Jim or myself anytime and we look forward to talking too in the future. Thank you.
Thank you now before we conclude today's call we'd like to provide the company's safe Harbor statement that includes important questions regarding forward looking statements made during today's call.
Stepsisters cautions you that statements in the presentation I now description of historical facts are forward looking statements. These statements are based on the Companys current beliefs and expectations such forward. Looking statements include those are carney regarding the company's expectations for revenue growth.
Good by new products design wins, or M&A activity inclusion of such forward looking statements and other others should not be regarded as a representation by lss than any of its plans will be achieved.
Actual results may differ from those set forth in the presentation to hit the risks and uncertainties inherent in our business, including without limitation that the market for our products.
It is developing and may not develop as we expect global pandemics and other or other disasters or public health concerns, including corporate 19 and regions of the world, where we have operations customers are sourced material or sell products may affect such market.
Trading results may fluctuate significantly, which would make our future operating results difficult to predict and could cause operating results to fall below expectations or guidance.
The words, he successfully integrate the operation systems technologies product offerings and personnel with acquired companies make prove difficult can adversely affect our financial results.
That's our subject to can competition, including competition from the customers, who to whom we may sell in competitive pressure from new and existing companies may how about business sales growth rate some market share.
Our future success depends on our abilities to develop and successfully introduced new and enhanced products that meet the needs of our customers.
The likelihood of our design proposals, becoming design wins is uncertain and revenue may never be realized.
Phil specialized needs and functions within the technology industry assess needs are functions may become unnecessary or the characteristics of such needs and functions. They shipped and session away at the costs our products no longer fulfill sessions are functions.
So I might get me from our competitive position, we rely on that limited number of suppliers to support our manufactured design process.
Cannot protect our proprietary design rights and intellectual property rights.
There's a physician could be haven't or we could incur it's difficult expenses to enforce our rights.
International sales and operations subjects as two additional risks that can adversely affect operating results have financial condition, and we felt remedy material weaknesses in our internal controls or a financial reporting it may not be able to accurately report our French results and other risks described in our prior press release and in our filings with the Securities Exchange Commission FCC.
Any including the heading including under the heading risk factors in the annual report on form 10-K, and a subsequent filings with SEC.
You are cautioned not to place undue reliance on these forward looking statements speak only as of the date of the conference call and we undertake no obligation to revise or update this information to reflect events or circumstances. After this date hereof.
All forward looking statements are qualified in their entirety Vivus cautionary statement, which is made under the safe Harbor provision other private Securities Litigation Reform Act like 95.
Before we end todays conference I would like to remind everyone that this call will be available for replay. Starting later this evening through May 28 digit person to todays press release for dial in replay instructions available via the company's website I art that when stop systems Dot com. Thank you for joining US today. This concludes our conference you may now disconnect.
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