Q2 2021 Quotient Ltd Earnings Call
Ladies and gentlemen, thank you for standing by our conference will begin in just a couple of minutes. Once again. Thank you for standing by our conference will begin in just a couple of.
[music].
Greetings and welcome to the quotient limited second quarter fiscal year 2021 financial results call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
Reminder, this conference is being recorded.
Now I'd like to turn the conference over to your host Mr., Peter Bartholow, Chief Financial Officer for quotient limited. Thank you you may begin.
Thank you though.
Good morning, everyone and welcome to <unk>.
[music] fiscal year 2021.
Joining me today is strong.
She's executive officer of caution.
So chief operating officer.
Today's conference call is being broadcast live so once the west coast and the replay of the conference call will be available later today.
What do you <unk> dot com.
During this call quotient will be making forward looking statements, including guidance as to future operating results.
Commercialization timeline.
Because such statements deal what's your treat that.
Actual results may differ materially from those projected in the forward looking statements.
Additional information concerning factors that could cause actual results to differ materially.
Forward looking statements can be found of course, it's funny because the U.S. Securities Exchange Commission.
Well.
Really.
The forward looking statements, including guidance and projections provided during this call.
Yeah, that's today's date.
You should assume no obligation to publicly update these forward looking statements.
With that I would like to turn the call which of course is chief Executive Officer truck sales.
Thanks, Peter and good morning, everyone. Since we last spoke.
But the past couple of months were challenging for the quotient team and management.
First of all we had several koby diagnosing infections in different areas of the company, which required us to adopt and find workarounds and continue under very difficult circumstances. Secondly, we had extra persisted into formal government imposed locked down and it just takes sales affecting.
Our customer field.
Field trial sites. It seems we have sites in Switzerland, UK and the U.S. mifi employees spaced throughout Europe, we have had to navigate our way through evolving national and local regulations and requirements.
Given this difficult situation I'm really proud it'd be cool, okay. So on everything else plan, even you could talk a little bit more time than expected.
Very proud of the entire quotient team who continues to be focused on execution. Despite these unprecedented circumstances and I'm happy to report on the progress we have made since our last earnings release three months ago.
I will focus on seven Atlanta, yes, our most like Koby 19 people the micro Ray.
Fine spend almost like transfusion diagnostics development pipeline and commercial readiness and finally cooperate initiatives.
Let me first stop me if the most say COVID-19 keep all the microarray.
I would like to remind you all that developed its high performance antibody test we've seen a few weeks and quickly generate an internet based customer.
This first and foremost demonstrates the power and flexibility of our in the waste if more sales platform.
The taste was CE Mark on May 1st 2020, and be submitted a request for FDA emergency use authorization on may six.
On September 25th our Koby 19, I'll be body taste was granted.
The emergency use authorization by the FDA doing DFT, a pure process, we had several rounds of questions that bear and so swiftly I was always that if your process too long well then be expected in the U.S. fuel the Perclot IDE 50 was tremendous but he's also he's a new would they come up.
Luxury and D.F.D.A. had today fuel not only the mitral rate, but also the installment into self threat I'd be made it through the process and now we have to evaluate which gives me great confidence in our future ft. Eight if you will.
We have been able to sign contracts with several cost come mostly in the U.S. and Europe sales in Q2 remained low with close to see 4.6 million dollar sales. Although it is increased significantly versus Q1 I see this as a proof point that customers are embracing this technology and are willing to pay.
One contract.
We are very pleased to be if I were collaboration will be ballpark small based who uses demos a COVID-19 people they migrate and mosaic system discrete blocked donations and search for convalescent plasma donor.
On the other side Youre limited market demand in Europe. That's the focus is so far clearly on virus testing.
However, we still believe that on the body tasting be gaining important ones vaccines become available and we follow a placements in high value cost than most people would be policy should benefit from such a trend.
Finally, the old I'll talk more sales will be 19, I'm people at the micro Ray was an excellent opportunity to taste. The readiness of our commercial organization. That's made us a pacemaker support we demonstrated that we have got passed away effectively installed instruments trained laptop and provide continuous support that's needed.
We see if we can safely say that our organization is ready for commercial launch into don't look transfusion labs in a few months from now.
Let me now move to our mosaics transfusion diagnostics development pipeline, well be better able to make significant progress on the advancement of our pipeline, although our pro Combis recently impacted by the second wave of took one out of iOS and they make in Europe.
The expanded immuno hematology field trial in Europe.
Yeah, we were expecting it sounds to be able to easily in October it will now take a little longer since our last testing sites located in the United Kingdom is again subject to restrictions related to the pandemic. However, we expect the result, this month, assuming <unk> in its uptake.
Let me remind you that the value proposition of our expanded IDH microarray is that it can do more tests you know how automated fashion than anything else is currently on the market.
Including Iran antigens, we chop normally item knocked on all tastes. Good mannelly for this ramp pace. It is more difficult and time consuming to get samples material and we are comparing often versus manual testing, which is also very time consuming and labor intensive but at a cost.
Let's turn to do.
Turning to the pandemic field trial sites have had two dogs and but all the number of employees on their sites as part of their pandemic response, and this had an impact on the ability to perform time intensive manual competitive testing.
I would continue its internal testing however gives us confidence that the field trial will provide us with good results.
Initial S.P.S.F.D.A. five 10-K <unk>.
Being applied to all questions received from the FDA right now there are no outstanding questions and we continue to expect as previously communicated the F.D.A. five 10-K, you up hopefully before the end of the calendar year.
At the beginning of September we announced the signing of a letter of agreement before.
It confirms the termination of the previous arrangement and the end of the arbitration process.
No we were very confident to prevailing arbitration, we are at least by this outcome I'll see if they move to this saves time and money and it gives us access to a market segment, we could not access our self.
The letter agreement States terrible sport, new collaborations and clearly divides the task between the two copes.
Washington maintains all mosaic relate the price for their mobile the owner comes fusion market, while ortho will hold the exclusive rights to the patient transfusion market in Europe and the U.S.
Quotient buildup elope Mosaiq Himona hematology microarray for the patient transfusion market and filed for CE, Mark and U.S.F.D.A. <unk> even.
People sales, a microarray I'd say transfer price that be the Trinity across Marcia. In addition, quotient will be entitled to milestone payments in the amount of up to $67.5 million.
Upon the achievement of certain regulatory and commercial sales benchmarks.
All told a paid quotient the first nominee refundable milestone payment all dollar 7.5 million in September 2020.
Exclusivity for Ortho is 10 years after obtaining regulatory approval in Europe spectacle of the U.S.
I'm very much looking forward to collaborating before do I.
A global leader in transfusion diagnostics to conquer the patient transfusion market.
Shortly after the ortho announcement, we strengthened our balance sheet, we have an equity raise.
We thought long and hard about days and it inside all still convinced and what's the right timing given that nobody could foresee how the next few months will devil, if the U.S. election on the horizon and based the second base off probably 19 based.
If this additional cash we have to safety and confidence, hoping this business successfully into commercialization.
Last but not least I'm glad to see that despite the global pandemic, our existing all about by quotient business. They live with a continuous strong performance with double digit year over year growth in Q2 I.
Let's see here in more detail in more detail in Peter's remarks.
In combination with the sales of COVID-19 antibody test and the ortho milestone we delivered the highest quarterly revenues since the existence of the company with that I would like to turn it back to Peter for the financial update.
Thank you Frank.
Fiscal first quarter product sales were $8.5 million, an increase of 20% from last years first quarter.
Although I caution sales for the quarter reported $8 million a year over year increase of 12%.
Sales to OEM customers increased by 10%, while direct sales increased by 23%.
With OEM sales, we see particularly strong increase in sales to customers in the U.S.
So it's almost like COVID-19 antibody test reach $4.6 million for the quarter compared to $4.1 million in the first quarter of the current fiscal year.
For the first half year total product sales increased by 14%.
68% of our product sales are related to standing orders.
Total revenues increased to $7.5 million upfront milestone payments received for ortho clinical diagnostics.
Total revenues for the quarter increased by 105% versus prior year, while total revenue was supposed to first half year increased by 66%.
Gross margin on product sales was 47.3% in the second quarter financial you 2021.
That's a 44.1% last year.
So do you like a 3% in the first quarter.
Improvement versus last year is primarily due to improved product mix and price increases well the improvement versus the previous quarter is related to the relief of pandemics related restrictions.
For the first half you know fiscal Twentytwenty, one gross national product sales was 43% why was 44% in the first half of 2020.
In the second quarter, we recorded an operating loss of $13.1 million compared with $18.4 million last year.
In the first half you operating losses reached $32.8 million versus $36.9 million in the first half of fiscal year Twentytwenty.
Operating expenses for the second quarter were $24.7 million, an increase of 2.3 million over the prior year.
Sales and marketing costs were $2.2 million in line with how are you.
Research and development expenses were $12.9 million, a $200000 decrease year over year with lower depreciation charges offset by additional IDH field trial cost.
General and administrative expense were $9.6 million compared to 7 million in the prior year, an increase of $2.6 million.
Given by significantly increased legal costs related to the also arbitration and increased insurance cost.
She's day cost includes stock compensation expense, which increased from 1 million to $1.3 million.
In the second quarter, depreciation and amortization of about $2.2 million versus $3 million in previous years.
The decrease in depreciation due to asset it is not that I know fully depreciated.
Net other expense was $1.9 billion compared with $8.5 million during the second quarter of last year.
Net other expense consisted of interest expense of $6.9 million and the 5 million dollar foreign exchange gain compared to interest expense of seven point threemillion or the 1.3 million foreign exchange loss in the second quarter fiscal 2012.
Overall, our net loss for the quarter was $15 million or 18 cents per ordinary share compared with $27 million or 41 cents per ordinary share in the prior year second quarter.
For the first half you that last reached 40.4 million or 49 cents per share versus $50.6 million or 76% 70 to 76 cents per share one year ago.
Net cash used in operating activities totaled $30.6 million during the first half of fiscal 2021.
It was 42.8 million in the first half of fiscal 2020.
The use of cash significantly improved utility also upfront milestone combined with a lower increase in working capital.
Capital expenditures in the second quarter of fiscal Twentytwenty, one was $1.3 million compared with 1.4 million in the prior year.
For the first half year total capex was $22.1 million compared to 2.6 in the prior year.
The majority of our Capex in the second quarter fiscal Twentytwenty, one relates to the acquisition or was it more like instruments.
Moving onto the balance sheet with available cash and short term investments at September Thirtyth Twentytwenty, One 160 point 2.7 million.
Back to $72.8 million, one year ago, and 120.8 million at the end of March 2020.
An additional $9 million of cash is held in restricted reserve accounts under the terms of our borrowing facilities or $145 million at our facilities.
At September Thirtyth accounts receivable totaled $4.5 million the inventories totaled 22.8 million.
Oh, its balance sheet items increased compared to prior year, well trade accounts receivable decreased compared to the end of last fiscal year.
The changes in accounts receivable is related to timing of customer payments, while the increase in inventory is related to what I like.
In September Twentytwenty, the company successfully closed a public equity offering.
The reaction or is it existing and new sales. This was largely positive and resulting political oversubscription within a few hours.
We raised we raised total net proceeds of $80.7 million with these additional equity raised a combined with additional cash inflows from other revenues.
We now have a very strong balance sheet as our financially well equipped to finalize the development phase of her transfusion diagnostic proposition that entry into the commercial space.
The company has an outstanding debt of 125 million dollar was the first reimbursement you in April 2021.
We might explore options to restructure the debt or delay reimbursement also substantial cash is generated from the sales side.
Moving to the <unk> to guidance.
For fiscal 2021.
You reconfirm, our full year revenue from product sales of our other by quotient reagents in the range of $32 million to $34 million.
No sort of milestones related.
Other revenues are expected.
For the third quarter of fiscal 2021, we expect sales of other by quotient reagents between 7.8 and $8.2 million.
We also reconfirmed our forecast for capital expenditures in the range of five to 10 million dollar the cash used in operations of approximately $5 million to $6 million.
With that let.
Let me now turn the call over to add Farrell Chief operating officer.
Thank you Peter.
Looking forward now I would first like to see our upcoming plans on the mosaic told my team anti body micro right.
On the bike transfusion diagnostics and finally more games.
New applications.
In Europe, our next steps are the following.
And Stuart as you have heard we received that you wait for a cold at night.
[music].
Our next step will be to release, a semi quantitative Pat.
Yes, we're not require in new night micro right, but an update on them all that's all for me.
Relief to the European market is expected in the next few weeks.
In semi quantitative Pat will allow the termination of the amount of anti body into sample I'm going to determine if a neutralizing level of antibodies.
Thoughtful and support.
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We see an opportunity to generate market demand for anything to quantify it does have a vaccine become available.
I think age.
We do not plan any further additions to our cobot might be pets offering.
We continue to focus on our core strategy, which is to bring a comprehensive transfusion diagnostics product offering to the market.
I previously mentioned our funded.
The trial is progressing despite a slowdown in our UK trial site due to the second wave of.
Which has resulted in government imposed restrictions on lockdown.
Nevertheless, we reconfirm the planting submit for that CE mark by the end of the calendar year.
Followed by a CE mark approval around the end of the first quarter of 2021.
On expanding that yes, we will report VNB data execute the field trial.
We continue to plan for a CE mark submission in the second or third quarter of calendar year 2021.
No no of course subject to inherent R&D risks as we are finalizing the development of the micro Ray.
Our whole organization is ready to go tomorrow, so assuming that the CE Mark is something.
We are constantly reviewing available databases to identify upcoming tenders.
According to our internal estimate several tenders should become available assuming those Q2 calendar year 2021.
Regarding the ortho pacing immuno hematology, Mike are right. We have already started the development, which is an incremental development over the existing donor immuno hematology product we.
We are in the process of hiring additional resources. So we can meet the plan the regulatory filing in Q4 calendar year 2021.
Indeed.
Our.
Field trials for expanded IDH. These well these are planned to commence in December of Twentytwenty or at the beginning of the year 2021.
Our plan is to conduct testing a three separate sites across the U.S.
In order to facilitate this we hired a small number of additional resources in the U.S.
Allowing us to run independently from Europe, even if travel research in between the U.S. and Europe will continue to remain in place.
The pace of the trial will be dependent on the pandemic situation in the U.S. and.
Loves being able to perform field trials.
And they feel and see at five 10-K approval.
Oh, Brian mentioned earlier, we answered all the questions from the FDA and anticipate approval before the end of the calendar year.
The approval will cover about the micro right on the Mosaiq instrument.
Let me remind you that we will wait to fully launch in the U.S. until we have the expanding its my great available.
However, with the five 10-K, our customers will be able to experience technology, a new future product for researching and give us valuable feedback.
As you know we are working in parallel on molecular disease screening on.
We are progressing as planned and continue to see very encouraging performance.
We will give an update at the later during our full year earnings call.
Finally, we always knew the Mosaiq technology has potential beyond transfusion diagnostics.
This potential was also identified by a major U.S. lob Jane I'm confident our ongoing about the potential for mosaiq in it.
Diagnostic products designed specifically to leverage the technical and operational benefits of the mosaic system and bring to market you products and other diagnostic areas.
This concludes my remarks, I'll regulatory and commercial milestones and I would like to hand back to Brian.
Thank you Wade.
So you have heard we are very well financed via only a few months away from our commercial launch after all the U.S. into making and our R&D programs are also going ahead of planned despite the outburst that they'd be outpacing due to the pandemic situations.
With this I would like to hand over to Darryl to open the Q and a session.
Thank you we will now be conducting a question and answer session. We would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone indicate lying as in the question queue.
You May press Star two if you would like to remove your question from Matthew for.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
One moment, please while we pull for your questions.
Our first question that's come from the line of Josh Jennings with Cowen and company. Please proceed with your question.
Hi, Good morning, gentlemen, thanks for taking the question. Thanks for the detailed updates today I was hoping to just you mentioned just the tender.
Tenders that are coming up in Europe in calendar two Q 20.
Did you get any any more details you can share just about how the demand funnel is developing and where it sits today.
For one or two maybe we just start there and I mean, just what I'm really after is just any help you can provide from a high level and.
In terms of the pace of upon CE Mark approval, the pace of adoption of Mosaiq and Im thinking about where street numbers sit today for fiscal 22 on the revenue side it for for mosaic or transfusion diagnostic sales.
Any high level commentary you can provide that can help in our modeling would be would be free but very helpful.
Sure Hi, Josh is that.
At this point, we have not seen any tenders come to the market in Europe, well, what we are seeing is that.
Yes, some of the accounts are starting to prepare for the tender process.
I I was I said, a jury bobs remarks, we expect to see some of those standards starting to become active.
From Q2 onwards.
What we see there is a but.
Depending on the on the account or some of the larger customers Uh huh.
Longer a tender process.
And some of the smaller countries will have a a shorter more up in process. So when we see on receipt of the CE Mark we will be eligible to participate in those tenders.
We would see that over the coming month that you wouldn't see those tenders, becoming active I'm being awarded so we see that it will roll out a <unk> once it starts it will be slow, but it wouldn't pick up eventually oh.
Through the year.
Understood.
Yeah, I think Youd announced earlier this year that you had ordered more movies music systems from your manufacturing partner Stratec I think there was on the order of 20, plus music systems to add into inventory how should we think about music inventory as you head into this commercialization period on how many systems.
You may have as we get closer to to.
To counter to queue up 21.
Yeah, So Josh we have a a you're correct we have ordered 20 plus instruments.
Those insulin two will start to be repeated into in the coming weeks and months and that that inventory will leave us very well positioned to respond to Andy tender opportunities or any any other opportunities that arise over the coming 12 months. So we feel like we have the right amount of inventory a world.
In continuous dialog with our with Terratec, who manufacture the instruments they would be ready to respond as we need it. So we feel very confident about our inventory levels as we head into next year.
Excellent and then just on on the commercial team for Europe, I mean, it has been in place for a little while can you just give us an update on what their activities are currently and how there.
Out there.
Well the market mosaic system and the expanded age menu.
In front of CE Mark approval, you already have CE Mark approval for the limited menu, but just anything you can share in terms of how your commercial team is is building that demand funnel.
Yeah, So RK Martin.
Yeah, our team are in constant dialogue with the market.
We also again remind you back to what Frank said about the real opportunity up they called it. The test was the ability for our commercial team and that's the entire commercial team, but the sales force the support.
Yeah that field service engineers, our technical support teams they've been that COVID-19 has been a real.
Yeah practice opportunity for not being that they can ramp up our commercial capabilities.
We are constant dialogue with where our win account we were interacting understanding when tenders are likely to start.
Keeping keeping the fact that mosaic is imminent I'm coming to market shortly front and center in those in the adult becomes mine I'm, making sure that they're they're keeping this in mind when they when they go on those tenders.
Thanks for that and then my last question just on the U.S. field trials for the expanded H. two menu or am I correct.
I understand it they called it could cause some some challenges in terms of the piece of how the field trials on the tests are run, but I think it'll be might be helpful. Just to.
Help us remember you know in in normalized times, you know how quickly can the U.S. field trial be run it's not a matter of weeks not months and clearly we understand that a that could could could put some could stop the clock here, but just to get the normal run rates I think would be helpful for for investors to understand and then and then running the trial and how long it takes.
For the data to be analyzed and for results to be made public. Thanks.
Thanks for taking the questions yeah.
Got it. Thanks. Thank you John in terms of the field trial in normal circumstances, we would allow three to six months for a field trial.
<unk> burden Immunohematology field trial of this complexity, where does a significant amount of money you will compare their type thing, it's very difficult and Roche Roche that the comparator testing on many of the sites are limited by the amount of cargo testing that they can do on a daily basis and that's that.
The duration of the field trial to the three to six months.
We will of course with resources now on the ground in the U.S., we will be focused on executing the field trial as smoothly as possible.
And we will win.
Do everything we can to maintain that timeline, but there is not an area that it's not clear how the cobot situation develops in the U.S., but we will be working hard to minimize any delays in do you EPS will drop.
Understood understood. Thanks again.
Thanks, Josh.
Thank you. Our next question comes from a line of Suji now with P.T.I.G. Please proceed with your question.
Hi, Thanks for taking the question.
My first question.
What Josh asked earlier about commercial readiness.
I talked with diagnostics in Europe.
I was curious what are your assumptions in terms of how dependent it plays out are they are you know is that contingent on the back using available where do you think that once there is a pool ball you can you know start to start the process in out there at least what order.
Yeah, that's a little a little bit difficult.
To speculate on that job because a lot of deciding on the loss and the distinctions and stuff.
Right and so from the various you always take since we are working in.
What do we see I'll say it wasn't really alluding to is the tangles are indeed coming up in February that it's only in a second second quarter all 521.
That might change, but that's the visibility behalf at right now and what we also know is the commercial organization that the pacemaker organization is ready to go they have two from themselves. They further COVID-19, Oh loud and on top of that if walk scenes become a valuable reach I sincerely hope that will soon.
We still expect goals on uptake on Cobi 19, antibody deamonte, especially as we are going to have a semi quantitative one helping in the clinical guidance and we have plenty of instrument a instruments ordered to be flexible. So we can go for the pain goes if there is a a surge in demand for it on the body tasting, we even have to.
Lakes ability to place even more instruments. So we can play the I'll cede comps, but these are very uncertain times and very difficult for us to make a prediction. We are ready to go we expect a good IDH two field trial data very soon we will submit to be half actually a model our submission I see US you know.
And pop type of it being a rate that.
And we are confident before end of the year, we should be able to do that.
And then getting a couple of months or the finally after all the you'll see into making the first powerful combination in our hands and we are ready to go but of course, we need to attain dose and we need and then volume and are enabling us a.
To participate and excel.
Gotcha that makes a lot of sense and then just a just a clarification question in terms of realized that there will be more anybody that's in demand once the vaccines available available but.
But you are seeing demand in the U.S. and I think lastly, Wendy in Europe is that largely done with more convalescent type thing.
<unk> in the U.S. person, you're up just kind of curious to whats driving that and also if you might have any visibility into what the demand might be near term given you do have though from a contract I believe.
Oh, I'm sorry, yeah.
Yeah, it's a combo some tasting fuel correctly or.
Pointed out that's today, but but the issue in Europe and also in some other countries is there is no guidance under what circumstances showdown antibody tests being performed that it's no protocol at this point in time I think the entire focus is right now we need to succeed faces.
PCR testing, maybe a antigen testing.
To see whether there is an active infection in place because when you have an antibody test you should be able to do something clinically beefy. That's why we believe 50 availability or Oh.
Vaccines this will be a different story, yeah, but then again you know of you'd never speculate at them, making a lot of sales to be found anybody tasting I think either way into beginning be they are pretty clear that far off a it was a question of making a meaningful contribution but also to demonstrate and showcase the power.
Good flexibility if the technology also demonstrate to everybody that this new technology will be embraced by customers and they'd be the buys and signed they signed contracts for it and they will pay for it and it was also for us to taste, the commercial and technical service organization, obviously be ready to go. So we expect some uptake we don't know how.
Actually its going <unk> going to be a buffer you of course, Oh faced what they are willing to be a really focusing on the transfusion rate new people said, what's our color business strategy, but then cobiz came around to field trials fast stopped sold we made the based out of its providing.
Such a healthy body taste showcasing the technology and testing the entire organization.
Gotcha, and then lastly from me I think Ed mentioned and I think you just alluded to as well that you're focusing on the core check season diagnostics. It has you were able to develop antibody testing fairly rapidly Oh that was wondering what about antigen testing given the sensitivity of your clock warm do you think there might be.
Opportunity even in your time to take advantage of that.
Yeah, I guess, maybe I can it's not only it's not on the menu I think a eight well for really as pricing could it be a not developing further.
Colby good taste for the time being unless the situation is changing thing Ivy. The train well then be can be flexible, but this we have not the plant.
I think a.
I personally believe PCR tasting car or antigen testing should be done and as close as possible to the patient ideally a not a kind of a near patient point of care solution, but our technology. Our solution is really for the central lab I mean, the selling aspect of it is really high so.
Hi, quantity high efficiency high automation in say in a centralized manner. So that's not really our I wouldn't play.
And if you if you sending samples to a central lab why shouldn't you do what antigen test, which is less than a PCR test. Then you can also do the PCR test. So we just thought that yeah, you're betting on anti body taste on qualification of antibody tasting and refocus on our core strategy called fusion.
Is there anything you would add on.
No I think that's a great summary, Brian.
Yeah. It is it's a centralized parcel point of care I think you'll see there's a lot of point of care and isn't products coming on the market now.
It's it's most likely that if you're going to do and I understand that you're going to want to do at point of care.
Gotcha.
Thank you.
Yeah. Thank you.
Thank you there are no further questions at this time I would like to turn the floor back over to France, all for closing comments.
[noise] yeah. Thank you very much and thank you everybody for joining us in the call today and we look forward to updating you on the progress we expect to have made by the time of our third quarter fiscal <unk> Twentytwenty One conference call. So thank you very much older based stay safe.
Thank you. This does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a great day.
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