Q2 2020 Data I/O Corp Earnings Call
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I would now like turn the conference over to Jordan Darrow. Please go ahead.
Thank you everyone welcome to the data Io Corporation second quarter 2020 financial results Conference call.
With me today, our Anthony Ambrose President and Chief Executive Officer.
And Joel Hatlen, Chief operating officer, and Chief Financial Officer.
Before we begin I'd like to remind you that statements made in this conference call concerning <unk> future revenues results from operations.
In addition market economic conditions estimated impact of tax reform.
<unk> really should you wish to partnerships and any other statements that may be construed as a prediction of future performance or events are forward looking statements, which involve known and unknown risks uncertainties and other factors, which may cause actual results to differ materially from those expressed or implied by such statements.
Factors include uncertainties that the impact from the corporate 19 pandemic, along with the expected reopening a recovery efforts within supply chain and among our customer base.
Levels of orders ability to record revenues are based upon the timing of product delivery and installation market acceptance of new products changes in economic conditions and market demand.
Pricing and other activities by competitors and other risks, including those described from time to time in the company's filings on forms 10-K, 10-Q, with the securities and exchange permission.
That's really just communicate.
Accuracy and completeness of forward looking statements should not be unduly relied upon did I always under no duty to update any of these forward looking statements.
Now I would like to turn the call over to Anthony Ambrose President and CEO did Io.
Well. Thank you very much Jordan I'll begin my formal remarks by addressing some corporate governance matters and then we'll move on to commenting about 2022, two and recent developments and then I'll turn it over to John for details on the numbers.
The corporate governance matters. Our annual meeting was held on May 18th at our corporate headquarters in Redmond, Washington.
This year is a bad due to the coping 19 challenges, we made our information available by Internet delivery.
The process worked extremely well with excellent shareholder participation.
All of our proposals received affirmation from shareholders, including the election of directors ratification of independent auditors and say on pay provisions for our executive officers.
I'd also like to comment on a few of the Fccs recent announcements.
On July 22nd the FCC adopted new rules pertaining to proxy advisory firm disclosures.
These ruling seek to providing improved framework for transparency pertaining to institutional proxy voting practices, we applaud the FCC for ushering in such advancements we worked with NASDAQ and let them know how we felt about the current situation of proposals and are happy with the new rules.
There's also proposed rule change from the FCC for modifying which investment firms must file thirteenf ownership data.
The proposals to change from 100 million assets under management to 3.5 billion as the threshold for these firms required to file quarterly 13 up reports.
This would limit transparency of investment from ownership in our opinion.
The proposal remains under review, but if past.
Would work against all public companies, and particularly smaller public companies since a smaller stock such as data I O typically have a shareholder base represented by investment firms managing under 3.5 billion U.S. dollar.
Moving on to the second quarter, ending June thirtyth challenging conditions for Us for society and all companies continued from the first quarter.
We are grateful for the health of our staff our customers our partners and their families and appreciate the sacrifices made by many health care professionals and first responders around the world.
To reiterate we remain committed to our priorities amid covert 19, which are number one keeping our people and their families safe.
For two keeping our facility safe and secure number three serving our customers with covert 19 related customers is our top priority.
[noise] further as I noted last quarter's call, we believe our business and operational strategies are proven helpful. As we manage the effects of the pandemic.
Under the circumstances during the better part of the past six months global Commerce has been anything but predictable.
In addition to covert 19, there been increased trade and geopolitical tensions.
Expectations and general been in produced in our performance in the second quarter reflected those reduce business conditions.
As an essential supplier to the medical and Aerospace industries Dado has remained open for business in China, the United States and Germany.
Within our markets, we've seen recovery in China, and some encouraging signs in EMEA.
In Southeast Asia, and the Americas are lagging in terms recovery from Coburn 19.
Overall progress is happening in fits and starts and this is impacting capital equipment markets all over the world.
During the second quarter Cobot 19 negatively affected many of our customers on our business capacity related purchases were being deferred well new technology related purchases and process improvements continue.
We saw many automotive manufacturing facilities temporarily closing in the second quarter delaying equipment and consumable purchases.
Within automotive the market for electric fields has been <unk> electric vehicles has been emerging to complement our strengthened Ada es and infotainment market segments.
Second quarter, we shifted PSV 7000 unit for use in a major European Oems electrification program.
Well, we also had other competitive automotive system wins in Asia, and Latin America, and additional you I passed programming purchases.
Well the traditional automotive capital market has been challenging we experienced pockets of strength within the broader industrial in I O T electronics market as well as from other sectors. We gained a significant new aiotv customer in Asia in the second.
Please start reached a milestone of deploying our 300 PSV unit during the second quarter.
It's a major milestone for that program.
[noise], our Citrix initiative saw continued progress with our channel partners in the second quarter for programming Center partner, we won a significant opportunity in utilities and smart metering.
Lets semiconductor side, Cyprus, and Infineon technologies company announced in July the production availability of its piece Soc 64 standard secure Amazon Web services microcontroller.
This M.C. you provide secure I O T device management that enables Oems to safely to play applications and handle data at scale.
We've been a partner Cypress for a couple of years on the P. Sock program and are very excited about this announcement.
These are just a couple of the highlights in our Centrix ecosystem in Q2 and illustrate it's growing presence.
The basic tenets of our success over the years have been well and continue to be rooted in our technology and prudent financial planning with realistic expectations.
Did I O has built a sustainable and resilient business to withstand down periods, such as one wherein.
And then to flourish, our proven operational leverage as conditions improve.
The last market cycle upswing for data was based on our capital equipment and consumables business lines, whereas the next cycle upswing will also include and benefit from our Centrix platform.
At the end of the second quarter, we had $13.3 million in cash and no debt.
This provides us with ample liquidity so that we may be flexible in these challenging times and remain committed to our long term growth objectives.
With that I'll turn it over to Joel Hatlen, our Chief operating officer in Chief Financial Officer Joel.
Thank you Anthony Good day, everyone.
Yes sales in the second quarter of Twentytwenty were 4.7 million as compared with 5.8 million in the prior year period, and 4.8 million in the first quarter Twentytwenty.
Second quarter, Twentytwenty bookings were 5 million as compared with 5.1 million in the second quarter at 2019, and 4.3 million into first quarter 2020.
On a geographic basis international sales represented approximately 93.8% of total net sales for the second quarter of Twentytwenty compared with 89.6 per said in that 2019 period.
Total capital equipment sales were 53% of revenues.
Doctors, 28%.
Software Slash services, 19% of revenues through the second quarter of Twentytwenty, compared with 61%, 24% and 15% respectively through the second quarter.
2019.
2020.
Second quarter bookings composition included 49% from the automotive sector.
42% from Aiotv industrial in other sectors and 9% from programming centers.
Gross margin as a percentage of sales in the second quarter 2020 was 52.4% as compared to 61.4% in the second quarter 2019, and 58.2% in the first quarter 2020.
For the second quarter 2020, gross margin was primarily impacted by fixed costs being spread over lower revenues.
A less favorable channel and product mix and less favorable factory variances, especially currency related.
Operating expenses were down.
Compared to both the prior year in the prior quarter period.
The year over year changes include business level variable expenses, including lower sales commissions.
Reductions in work hours pay cuts and government assistance programs were cost saving measures taken in response to covert 19.
Also due to covert 19 limitations, we Kirk travel and other trade show and other promotional activities, which led to reduced SGN a costs.
As compared to both the year earlier and sequential quarter.
R&D spending of 1.6 million in the second quarter 2020 was flat compared to the first quarter and approximately 66000 lower than in the first in the second quarter of 2019.
Partially offsetting the reductions I just discussed was higher stock based compensation, which is a non cash expense.
In accordance with generally accepted accounting principles net loss in the second quarter Twentytwenty was a loss of 1.1 million or 13 cents.
Loss per share compared with a net income of 127000 or two cents per diluted share in the second quarter 2019.
Backlog at June Thirtyth, Twentytwenty was 2.8 million up 22% as compared with 2.3 million at March 30, Onest add 1.400 million.
At June Thirtyth 2019.
Did I had 1.4 million in deferred revenue at the end of the second quarter, Twentytwenty, which was modestly lower than at the ended the first quarter of 2020, which was 1.5 million.
Our days sales outstanding or D.. So a reached a receivables collection measure at June Thirtyth were below our target.
Measure at 55 days with receivables reduced by 300000 from good collections from the ended the first quarter.
Payables were reduced to 3.5 million at June Thirtyth Twentytwenty from 3.6 million at March 31st 2020, and 4.1 million at the ended the prior year.
Net working capital at the ended the second quarter was 18 million as compared with 18.4 million.
March 30, Onest, Twentytwenty and 18.5 million at 12 31.
2018.
Data shows financial condition remains strong with cash of 13.3 million at June Thirtyth 2020.
Our cash position is down from 13.8 million at March 31st and 13.9 billion at the beginning of the year.
From a financial perspective, we entered the crisis in a position of strength and remain healthy we believed that data. It was the largest company or industry with the strongest balance sheet and we continue to be debt free.
As previously disclosed early in the second quarter, we implemented cash conservation expense management initiatives. Most of these actions are continuing during the third quarter with expectations, there will be some costs resuming as business and travel start resuming.
We have not it's still do not expect to accept funding from the SB APTP plan in the United States.
Finally, we had shares outstanding of 8.391 million at June Thirtyth Twentytwenty.
That concludes my remarks, I will turn the call back to the operator to begin the Q in a segment.
Operator will you please start to Q and a process.
Thank you we will now begin the question and answer session to ask a question you made press Star then one on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the key.
Draw. Your question. Please press Star then too.
At this time, we will pause momentarily to assemble a roster.
And the first question will come from Jason Schmidt with Lake Street. Please go ahead.
Hey, guys. Thanks for taking my questions I know, it's probably going to vary by geography, but big picture curious if you could talk about the linear video of orders in the corridor is it fair to assume it's hard to bottom in April better in May and then best in June.
You know I think it it it depended Jason it wasn't that a straight forward.
Probably would have to dig in to get Guinea linearity and it also is dominated by the law of small numbers.
Really from a capital perspective, I think in general we've seen China come back fastest EMEA leased up to the last few weeks has done really well as well southeast Asia has lagged and then Mexico, the U.S. have lagged as well.
And we're seeing.
Encouraging signs in those places.
Okay. That's helpful. And then it seems like the traction with <unk> centric continues can you remind us the number of engagements do you have today and any sort of goalpost investor should be looking at going forward and I guess related Lee has the macro uncertainty.
Pushed out this opportunity at all in a significant way.
Well I think the engagements we've had in terms of system deployed remain unchanged from from prior quarters, we keep adding OEM customers through our channel partners remember, we're working predominantly through programming centers and so theres a two tier distribution model right now.
We know about most of their customers that we have to do work with them. If it's a standard offering they just take what we've already deployed and go forward from there, but we know we continued to gain customers through that channel.
We did I mentioned that we had a nice win through channel partner in a biggest smart meter.
Manufacturer, we don't have permission to use their name, but we're very excited about this.
And then also we're very excited about cypress announcement of their piece Soc.
64 family product that support so the Amazon Web services integration.
We think that's another big step forward and we've been a very good partner, Cyprus, which is now in Infinium company offer a couple of years.
You know sort of can follow up to your question was we actually had a couple of Centrix is that we had planned to get installed in the.
The late first quarter second quarter timeframe, and the Covidien 18 actually shut those down in deferred them until a later hopefully this quarter and we'll see how it goes but yeah. The koby thanking did have an impact in terms of getting some new systems installed.
Okay. That's helpful and the last one for me and I'll jump back into queue. I know you outlined a number of factors that impacted gross margin in Q2, how should we think oh, it going forward kind of get back to that sorry, mid 50% level.
That would certainly be are kind of expectation.
So we had I would say currency were probably the most surprising when we just really hadn't planned for the dollar weakening like it did during the quarter.
But the other pieces, we know we're continuing to still have a small impact of tariffs and.
Depending on which channel it is as to whether its distributors who.
You you get your your revenue net of a distributor discount versus domestic sales, which are generally a rep sale and a half solely commissions associated with them. So.
Yes, there's there's an expectation that we will improve in our gross margin but that.
We won't be getting into the high 55 to see my in my mind and above.
Okay. Thanks, a lot guys.
Thank you Jason.
Once again, if you have a question. Please press Star then one.
The next question will come from Lj Smith with LBJ capital. Please go ahead.
Yes, hi, thank you.
Congratulations on the quality of the 300 PSB system can you review different models are what they are used for although talk about the Iraqi deployments in Asia, and how that worked out.
Certainly.
We have a product line the PSV family of automated programming systems.
As a scalable family we have to 7000, which is our flagship product. It's the industry's most comprehensive programming platform supports all of our programmers all the media options a customer may want trade taped to.
Input output et cetera, laser marking threed inspection all all the things that someone may want to have.
Not only do programming, but media transfer inspection and marking.
We also have the PSC 5000, which is more of a standard.
I'll call it the four door sedan or maybe now the four door I'll ask you beat of the market. It supports a broad range of customers all over the world that have.
I'll call. It standard programming needs and then the PSV 3000 is our entry level product targeted for price sensitive customers in emerging markets.
All the handlers have the same audio software the same look and feel the same access to our programmers the flash core in the Luminex. So the customer can really mix and match.
Exactly what they need based on things like annual programming volume.
Capacity.
And features beyond programming that they wish to do at the same time.
And then the second question on Aiotv and Asia, Yeah, We had a new customer we worked with them.
I was very pleased with our sales teams efforts during the pandemic, it's it's pretty hard to get a sales call a face to face a these days and we were able to work with the customer.
They purchase multiple systems, and we look forward to a long relationship with them. We don't have permission to use their name, but it's a nice win for us, especially in a challenging quarter.
Thank you all I'll just following the close loans.
Yeah.
About 20 offer some are more relevant.
Yes.
Which is sort of like Herlinger consumable sales can you drill.
Oh, no chance for the second quarter, including the GAAP results, what we can expect automotive sector.
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Yes, Okay, I wouldn't draw any long term conclusions from Q2.
In Q2, we saw a number of our automotive customers actually shut down their factories and factories that are shut down don't order consumables.
So there's a debit if you will in some of the consumables orders in Q2 services held in there pretty well all things considered in Capex was obviously down.
Going forward, we think adapters and other consumables will get back to more normal order patterns.
The capex market will recover when people feel confident ordering capacity again, and then we again, we think services and software as a pretty steady part of our business.
Okay.
A question of sensors as well do you consider just to be.
One technology.
I was curious for your key partners.
Obviously economics work Serbs gains more traction.
Sure.
We have a pretty good summary of the partners and the platform. Yes, we do considered a platform builds on our core programming technology with.
Some very.
And some security additions that are protected by patents trade secrets and know how.
And you know we've had that deployed now for a couple of years.
The ramp was a little bit slower than we had anticipated to be perfectly Frank about it.
Predominantly because the initial set of tools.
Were more difficult to use than we would've liked we've had a major enhancement to our platform that makes it much easier to use as we've talked about in prior quarters.
This is all about simplifying and scaling in 2020 at least when we started the year.
I think this the scale part will be delayed a bit due to cope with 19, but we're on track for the simplification.
And we're also starting to see better performance on the marketing side from some of our partners, indicating that they've completed a lot of the.
The parts of the solution.
Where we rely upon them.
So it's a good part of our business its a.
And it's a long term part of our overall investor value.
Lastly on previous calls snippets levels, Oh, you respond a little them. So what it was.
More deeply can provide good garbled.
The second quarter results first of all those on web services on.
Specifically, how critical is date ALD Sublets machine.
This obligation.
I'll be available.
Yeah, we've been a partner with them and you know we provide the hardware.
For that program a bias centrix.
Through a with Donnelly working with Cypress, which is an Infineon company, but also their partner Arrow electronics.
And again Thats a great partner I encourage you to go look at the a announcements the webinars that are out there and I'll give you a real good idea of exactly the specifics of the product why they're excited about it and then obviously why we're excited about it.
Thank you.
Again, if you would like to ask a question. Please press Star then one.
And the next question will come from Steve spends with RBC. Please go ahead.
Goodness respect stretch your line is needed on your end.
All right, we still unable to hear you Mr spend so we'll move on to our next question and that is from art Winston with pilot Advisors. Please go ahead.
Hi, guys is there any reason that you can think of to conclude that the.
Worst of the order intake is behind us and that we're going to do a the same or better going forward or as you know way to know.
Art, that's $64 question I think we had a a pretty good Q2, all things considered especially with automotive shutting down I think it really comes back to the new technology purchases, where people have to buy something or absolutely compelling purchases on a process improvement are moving forward and couple.
City purchases are not and again, just given the nature of our business the funnel mix from quarter to quarter will bounce around between various types of projects like that.
So again were.
We're optimistic in certain parts of the world and we're cautiously optimistic in other parts of the world.
Does the gear up on the part a certain customers and electronic vehicles have any bearing on your business.
Absolutely.
Telling you for long time that automotive electronics is a big part of our business.
Relatively speaking it was down probably the lowest point in what you'll two or three years in Q2.
Because again a lot of the automotive electronics plants were closed.
But the we've talked about infotainment, we've talked about advanced driver assist we've talked about connected cars mobility and I think electrification presents another great opportunity for data Io as cars get more and more.
Either either through hybrid technology, or 100% electric that becomes a bigger part of the overall mix in the market.
Just on a personal note.
My fiance swapped out her a 15 year old car for a.
Four year old a hybrid and nothing as just tremendous performance for our car, it's fun to drive and the electric motor is a much faster response than even even some of the best Turbochargers I've driven so they can be a lot of fun not just environmentally sound and maybe someone will figure out how to market that at some point.
Okay. Thanks, and good luck guys.
The next question will come from Mark Spiegel Standstill capital. Please go ahead.
Thank you just wanted to follow up a little bit on the last question, which is about electric cars since that seems to be with the stock market frankly, it's going nuts over the east pace is is is the electric car business additive to you guys or is it basically just you know substituting machines, you would have sold that would've gone.
And to internal combustion cars.
Well Mark.
Yes.
I'll go back to what I've talked about in automotive four years on electronics, you know if you're in the tire business and electric car is a swap for an internal combustion engine.
As long as they have four wheels.
What you find is in the newer technology there is a much greater reliance on electronics content.
So it would be the equivalent of having eight tires in the car instead of four.
Why why more electronics content, while there's a lot more software theres a lot more there are lot more complex systems to control.
If you have a hybrid you're actually.
Adding an electric motor and an internal combustion engine and then also adding elements to control the interaction between the two.
You've got dynamic energy recovery on the break for example.
So you're adding all these different electronic subsystems require intelligence and as we've talked about in the past where Theres intelligence, There's code, where there's code theres bits to be programmed and that's our business.
So overall the more interesting they make the car the better off data Io is.
So in a pure battery car, obviously, you don't need all the intricate stuff controlling the engine to mean emissions requirement whatever it is there still enough extra electronics, even net of the let's call. It the simplicity of the car that it's additive for you guys.
Oh have you driven a tesla.
Sure.
What do you think about all the electronic systems, they bolted onto that electric motor.
Well I don't I mean, I, yeah, well no. It does it take about it for a second so I'm sure.
You've got the infotainment system, you've got all the sensors for advanced driver assist you got additional complex software for ultimately autonomous driving you've got the interactions for connected car from India [laughter] right. All the real time updates mapping right all that other good stuff.
So basically saying regardless of the simple or powertrain, there's so much other stuff going into all cars that it's not additive for you. It sounds like you're exactly and you know we talked about infotainment and advanced driver assist I think we're going to be adding electrification as a nice theme for us going forward.
Terrific. Thank you very much.
Thank you Mark.
And the next question will be from Steve spends with RBC. Please go ahead.
Thank you very much.
I Wonder if you could I appreciate the comments on the auto industry that was part of my question for a second part of the question was.
Are there other applications in a sense that you see out on the horizon.
For the technology that is not being where your technology not being used today.
So Steve the in general, we think automotive and which is a fairly well defined market segment automotive electronics, and then I O T, which is a much more broadly defined market segment are the two areas for growth.
We felt that way two years ago last year, we felt that way you know when cobot 19 had and we still feel that way.
The aiotv market more and more things have more and more intelligence and they're connected to the cloud.
For data analytics for software updates and for combination with other aiotv devices to to help create a better user experience.
All those things require intelligence and programming, whereas before they may not have.
And just look around your house it at things that were analog 10 years ago that are that are digital and not only digital but digitally connected aiotv devices now locks lighting thermostats appliances.
Et cetera, and so those are the two big market segments.
We believe will will power the growth.
And as a cloud fit into that equation on some of them I would assume.
Yes, absolutely and it's a couple of things because a lot of these I O T devices people could care less about the device would they want is the information and then the analytics behind the information to enable decision support. So for example, if I put a bunch of meters on factory equipment, I really don't care about the meter.
On the equipment, what I want to know is if the meter is telling me that I'm going to need to do preventive maintenance on machine number 25 in a couple of days otherwise, it's going to break down and to do that you need to have the information move off of the premise into the cloud and it has to be done in a secure way.
That provides opportunities not only for programming of data, which we do but the fact that that data must be securely manage means that any firmware updates for the devices also need to be securely manage and that's really where our centrix platform shines.
So again, the two big markets there have a presence both for data and security deployments.
Which we offer in our product line today.
How are any of those products being sold.
Today or is this still.
The earlier stages of development.
Yep.
Apple watches and phones and so on.
Oh, no a mass market, we have we have active deployments with aiotv today, both in our data programming line, the PSV family of products as well as Centrix, which is our secure deployment platform.
There are customers out there today.
Market penetration today than ever any sense of that I know, it's hard when the markets I'm not the funding the market very well, but.
Well the market priority as big an were small so I guess, our penetration is pretty low.
Right now and our job is to make it go up.
Okay last question for you can you comment on the competitive environment today.
On the competitive environment has.
Changed a little bit overall, what we find is some of the people that were competitors, maybe five years ago have fallen by the wayside.
You know some of these competitors.
Uh huh.
They don't just go away they sort of fade away slowly.
We remain the largest company in our industry.
Our balance sheet gives us the flexibility to take a more long term view than some of these other companies.
We've seen some that were.
So some of the smaller companies in Asia have.
Fallen behind and you know almost to the point of being a zombie.
And but the we still have a aggressive competitors, both domestically and internationally.
And so I think compared to let's say five years ago, there are fewer viable competitors.
But at the same time, there enough, where we have to be on our toes all the time.
Okay. Thank you very much.
Thank you.
The next question will come from Avi Fisher with long cast advisors. Please go ahead.
Thank you congrats Anthony on your engagements.
Well thank you.
How many centric platforms did you say there are five units deployed.
That's correct Abhi.
So essentially you elaborated on the market opportunity ahead with electrification aiotv many other they medical devices.
Can you talk about your expectation on how you'll meet that demand.
Either by unit sales or by Centrix deployments.
Sure. So we commented on a 300 us PSV systems sold this quarter.
And so that gives you an idea the installed base and that installed base is predominantly in places like automotive suppliers M.S. suppliers and programming centers.
Centrix with five units.
We believe going forward the idea would be that.
Is that when the market picks up if demand explodes, we have an opportunity that we didn't have before to upgrade a number of our systems in the field that our PSV systems today.
We can include that we can upgrade done to Centrix technology.
In half a day.
Okay. So you know if the market really moves substantially to Centrix. We believe we have a way to manage that demand.
Without without choking on it.
Having said that I think the planet.
Data will far outweighs security you know certainly for this year.
We need to get additional engagements.
The marketing engines need to pick up on not only our part but also the the part of our partners.
For Centrix and we're in the process, we're seeing some good results there.
So it's a combination of increased marketing.
The ability to satisfy any demand is created very easily through an upgrade program a that gives me good confidence and centrix going forward.
Could you talk a little bit about the upgrade program 'cause. It's my understanding with centric that it's they sort of give <unk> per unit, it's a different sales model.
Hi, what an upgrade look relative to your revenue generation.
Well it would be something between what we're doing today, where we place the full system and a full system sale, which we do today on the PSV.
And I will keep the details a little bit hidden since I know a lot of my competitors are on the call, but think of it is a hybrid model.
Okay and your technology part of your secure technology partner is.
Onboard with doing upgrades for existing systems.
Well you know, we Didnt really ask permission from any third parties on on our strategy for upgrades.
Well, we take care of that ourselves.
Okay. Thank you for your time.
Thank you.
Ladies and gentlemen that is all the time that we have for Q and eight today I'd like to turn the call back over to management for any closing remarks.
Thank you very much operator.
Before we close I'd like to invite any of our Chinese customers that here this call to meet with us at the NEP Con Shenzhen, a trade show, which will be a upcoming later this month in Shenzhen China.
I'd also like to let investors know that we've been invited to present at the annual Microcapclub summit in September and I hope to see them there.
With that I'd like to close the call and thank everyone for attending.
And thank you Sir the conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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