Q4 2020 Nova Measuring Instruments Ltd Earnings Call
Ladies and gentlemen, you were currently on hold for today's conference call. At this time, we are assembling today's audience sometime to be underway. Shortly we appreciate your patience and please remain on the line.
[music].
Good day and welcome to Nova fourth quarter 2020 results today's conference is being recorded.
At this time I would like to turn the conference over to Mary Segal of M. S. IR. Please go ahead.
Thank you operator, and good day to everybody.
I'd like to welcome all of you to Nova fourth quarter and full year 2020 financial results Conference call.
With us on the line today are Mr. Athens, Oppenheim, President and CEO and Mr. Dror David CFO.
Before we begin may I remind our listeners that certain information provided on this call may contain forward looking statements and the safe Harbor statement outlined in todays earnings release also pertains to this call. If you have not received a copy of the release please view it in vain.
The relations section of the company's website.
Eitan will begin the call with a business update followed by Dror with an overview of the financials. We will then open the call for the question and answer session.
Now I'll turn over the call to Mr. Aten, Oppenheim Novas, President and CEO Adam. Please go ahead.
Thank you Mary and thank you all for joining US today I will start the call by speaking briefly about our fourth quarter results and performance highlights.
I will then spend some time summarizing 2020.
And our maintenance shipments for the year. Following my commentary drove only review the quarterly and annual financial results in detail, including the guidance for the first quarter of 'twenty or 'twenty one.
Noble reported remarkable results for the fourth quarter with revenue exceeding the guidance and profitability, reaching the high end of the guidance, demonstrating our growing agility and solid execution capabilities.
The company resilience, Amy Amy the dependent they make led by our global teams.
Drove exceptional performance in the quarter and throughout the year.
Our robust quarterly results concluded a record year, representing an annual growth rates of 20% revenue and 30% non.
Non-GAAP earnings.
This was a strong conclusion to a well performed a year during which we continued to innovate and extend our differentiated technology to support our customers' growing demand the positive market reception for our product offering and our sound operational model so for.
Our momentum to continue our growth in 'twenty 'twenty, one as well.
The accelerated demand for new complex semiconductors.
Of course, the industry represent a significant compelling technology event affecting all semi segment, including logic DRAM and flash none.
These trends continued to expand our available markets and increase the attractiveness for foreign materials and dimensional portfolios in the coming years.
Following our successful product introductions in 2020, we believe that nobody is well positioned to increase its footprint and market share across multiple customers in 2021.
Our accomplishments this year highlighted their agility and resiliency with the company develops day along of the year to support our growing activity. Despite the challenging environment imposed by the Covid disruptions.
Turning now to our quarterly highlights our performance was driven by a mix of technology enhancement product introductions and business wins, reflecting our progress to meet Nova as long term organic targets.
The revenue for the quarter reached a record high representing 10% sequential growth from the third quarter of 'twenty 'twenty.
Based on the recent market dynamics, our quarterly sales were driven driven primarily by strong demand in logic.
The current demand for both advanced and mature logic devices.
Concluded a very healthy year for our logic customers.
In the current environment, the leading edge customers are required to accelerate their advanced node transitions to meet the growing demand for high computing applications like five G. A I N H B says.
On the other hand, the acceleration in digital evolution in many applications also drives demand for the more mature nodes across the various markets such as consumer automotive and industrial.
As a result, our quarterly mix was weighted towards logic with around 72 per cent of the revenue derived from this segment.
Although we just started 'twenty 'twenty one we expect the same healthy demand to continue across various logic generation this year as well.
Although 2020 was more robust in logic demand our memory customers also started to increase their investment in the fourth quarter, mainly in DRAM, which grew more than 25% sequentially in our quarterly revenue mix.
We expect this moderate growth to continue in 'twenty 'twenty, one as well in other various memory segments, they're evolving semi markets. During COVID-19 is also fueling the memory demand across broadening application space.
As a result of decreasing inventories and more balanced supply demand levels, we expect a better investment cycle in memory, both NAND and DRAM throughout 'twenty 'twenty one.
Our progress along the year to balance our revenue mix is highlighted also this quarter by the customer mix, which yielded three major customers that contributed more than 10 per cent each to our revenue.
This includes a leading foundry manufacturer, a leading memory provider and a growing foundry in China.
Why not get more notable achievement in the fourth quarter was the record revenue contribution for MRO materials metrology sales.
During the quarter, we received multiple orders for multiple leading logic customers for our most advanced materials metrology solutions.
The bookings were for Nova Vera Afflicts materials metrology platform.
Each provide breakthrough thin seam thickness and composition process control capabilities for the current and emerging technology nodes.
The recent wins marks Nova is growing penetration into all leading industry manufacturer and cement Nova position as the materials metrology either.
As part of a consistent approach to expand our exposure to more materials applications.
We announced in December the launch of Nova Ellipse zone evolutionary materials metrology solution.
The new in line Standalone metrology platform.
Designed to measure materials properties, such as stress strength and surface for both memory and logic applications. Following the announcement and the outstanding progress we had with multiple customers.
We recognized the initial revenues from several accounts already in 2020.
Letting me know shine some light on our yearly benefits.
Nova quarterly performance signifies an optimistic note to a challenging year in which COVID-19 threatened words stability.
We concluded the year better than previously anticipated.
<unk> revenue to a record I, representing a compound annual growth rate of 13% for the past five years.
Our profitability continued to strengthen as well with net income earnings growing significantly also year over year.
During this disruptive periods multiple factors contributed to our strong performance in 2020, and I would like to mention for major ones first is the advanced operational model that we built during this period to allow better agility and resilience, which allow nova.
Got to function, well and adopt faster to the changing conditions.
This model is currently guiding our product development cycles go to market start to juice flexible lead times tighter supply chains, a safer environment for employees stronger territory support and robust recovery plan.
As a result, we continue our manufacturing plans according to customers' demand and increased capacity by around 25% without a single shutdown day.
Additionally, and in light of the continued travel restrictions, we invested significantly this year to strengthen our global teams by increasing professional head count and expanding their facilities around the globe to shorten customer response and time to service.
Second is the enhanced product portfolio, we introduced during the year.
Our investment in research and development, which grew at around 20% year over year was focused on two main pillars.
Introducing new product generations, both optical and X Ray line and the development of entirely new product from the ground up.
In light of the technology involvement in the industry, we introduced a new generation platform to all our traditional product lines, including the integrated and Standalone OCD. The advanced software package and next few years.
All of them are already installed and accepted and generating revenue.
Regarding our new innovations, we continue to proliferate the newly introduced prism platform in multiple accounts, gaining share and winning new positions in both memory and logic.
On this front. We are also excited this year to introduce the ellipse zone in your materials metrology platform based on enrollment technology that aims to deliver additional materials informations like stress and strain unmatched by any other inline materials metrology system.
As a result of these product initiatives in both our sustained and new innovative portfolio, we could reach record annual revenues in both the Standalone and integrated.
The cash CD metrology growing significantly year over year.
The third highlight I would like to mention is the continued diversification of our revenue mix.
It allows us to mitigate different demand cycles in the industry.
Although this year was weighted towards logic with roughly 68 per cent of revenue contribution. We also had significant wins and penetration into other customers, including a large IDM global memory manufacturer and <unk>.
Other accounts in China.
This creates a healthy balance mix net.
We'll continue to support our long term strategic targets and in three growth plan in 2021.
The last highlight I would like to mention in regards to 'twenty 'twenty is the growing importance, we have been given to our social responsibility plan.
Reality of COVID-19, solidified our commitment to support communities across the globe.
Over the past year, we proactively supported our partners and customers as well as families individuals and health organizations in the communities.
Our recently announced corporate social responsibility strategy is the nature of the evolution of our ongoing Brock is aiming to continuously enhance our ethical social and environmental performance, we have committed to incorporating social responsibility into our daily operations and business management.
While inviting all stakeholders into our socially responsible ecosystem.
To wrap up and before I hand over the call to draw let me briefly summarize our results and market position going into 'twenty 'twenty one.
Despite continuous disruptions and growing challenges associated with the pending demick spread.
<unk> global teams adapted quickly to the new dynamic environment.
For a format performing well and driving a solid growth here.
While the industry is going through tremendous structural changes and adjusting to the different demand catalyst is the result of the accelerated transition to a more data driven world offering is rapidly evolving to meet these changes and expand our available markets.
Even though agile operational model.
Portfolio, new product Rollouts and growing exposure to a broader opportunity range. We believe that Nova is well positioned to continue capitalizing on growth opportunities in 'twenty and 'twenty, one as well.
Now, let me handover the call to Dror to review our financial results in details Dror.
Thanks, a ton good day everyone.
Total revenues in the fourth quarter of 2020 exceeded our previously announced guidance and reached an all time record of 76 million, 18% higher than the fourth quarter of 2019.
Product revenue distribution was approximately 70% from logic and foundry and approximately 30% for memory.
Geographically, Taiwan and Korea, each contributed more than 20 per cent to our product revenues, while China contributed slightly less than 20 per cent.
On a per customer basis, three major customers contributed 10% or more to our product revenues, including two foundry customers and one memory customer.
Blended gross margin in the fourth quarter was 55% on a GAAP basis, and 56% on a non-GAAP basis.
Product gross margin increased to 63% on a GAAP basis, and 64% on a non-GAAP basis due to favorable product mix.
Service gross margin reduced to 22% on a GAAP basis, and 23% on a non-GAAP basis due to lower revenue levels less favorable mix between contracts and time and materials.
Higher materials consumption for warranty and contracts and end of year inventory related adjustments.
Operating expenses in the fourth quarter of 2020 on a GAAP basis increased to 25 million and included a one time income of $2 9 million presented in general and administration related to cash recovery of an unauthorized transaction previously made.
For National institution.
Operating expenses in the fourth quarter on a non-GAAP basis increased to 26 million, reflecting increased head count and end year closing costs as well as the impact of unfavorable Israel currency exchange rate.
In the fourth quarter of 2020, the company presented net financial expenses on a GAAP basis.
Due to <unk> 9 million of expenses related to amortization of debt discount and issuance costs from day October convertible note issuance and one 4 million of expenses related to the revaluation of our operating lease liabilities.
As a result of the unfavorable Israel currency exchange rate.
Both of these financial expense elements were adjusted for non.
For non-GAAP purposes.
Earnings per share on a GAAP basis in the quarter were <unk> 47 per diluted share above our guidance of 32 to 43 cents for the quarter.
Mainly as a result of the previously mentioned one time income of $2 9 million.
Earnings per share on a non-GAAP basis in the quarter were 55 cents per diluted share at the high end of our guidance for 45 to.
For 56 cents.
On an annual basis revenue grew 20% year over year to over 266 $69 million in 'twenty and 'twenty.
Product revenue distribution on an annual basis was approximately 70% from logic and foundry and approximately 30% for memory.
Geographically, Taiwan, Korea, and China, each contributed between 20% and 30% to our product revenues.
On a per customer basis, three major customers contributed 10% or more to the product revenues, including two foundry customers and one memory customer.
Annual blended gross margin was 57 per cent within our target model range.
Product gross margin grew to 62% on a GAAP basis, and 63% on a non-GAAP basis as a result of significantly higher revenues utilizing similar infrastructure as well as favorable product mix.
Service gross margin reduced to 37% on a GAAP basis, and 38% on a non-GAAP basis, mainly due to higher personnel and material costs.
Operating expenses in 2020 grew approximately 15% year over year, mainly in research and development, reflecting the significant investments in developing introducing and proliferating new technologies and products.
Operating margin in 2020 grew to 21% on a GAAP basis, and 24% on a non-GAAP basis.
Effective tax rate in 2020 was approximately 15%.
In 2020 earnings per share on a GAAP basis grew to $1.65 per diluted share while earnings per share on a non-GAAP basis grew to $2 six.
Representing 30% year over year growth, which significantly outpaced the revenue growth in the same year.
In 2020, we generated free cash flow of 54 million and in parallel successfully concluded a zero percent convertible bond offering in the amount of 200 million.
As a result, we enter 2021 with gross cash reserves in excess of $420 million, which enables us to pursue business opportunities within the year.
Moving into our outlook for the first quarter of 2021, we expect the following.
Revenues to be between 76 million to $83 million.
GAAP earnings per diluted share between <unk> 41, and 50.
<unk> 53.
Non-GAAP earnings per diluted share between 55 cents.
66 cents.
At the midpoint of the first quarter guidance, we expect the following.
Blended gross margin to be approximately 57% while service gross margin is expected to increase to between 35% for 38%.
Operating expenses to be approximately $27 5 million on a GAAP basis, and approximately 25 million on a non-GAAP basis.
Effective tax rate to be approximately 15% in the first quarter of 'twenty 'twenty, one and throughout the year.
With that I will turn the call back to Athens, Nathan. Thank you. There are we that we will be pleased to take your questions operator.
Thank you.
If you wish to ask a question. Please signal by pressing star one on your telephone keypad.
Are using a speaker phone. Please make sure your mute function is turned off to allow your signal to reach our equipment again star one for questions. We will now take our first question from Quinn Bolton from Needham <unk> Company. Please go ahead. Your line is open.
Hey, guys congratulations on the strong finish to 'twenty one.
Very strong first quarter guidance I guess my first question for you as you sit here today looking into 2021, you guided us to a very strong first quarter.
I'm wondering if you could make any comments about how sustainable you think that that revenue level is there's been a debate.
Some of your peers about weather spending in 'twenty and 'twenty, one would be sort of front half loaded balanced or for second half wages that just would love. Your perspective as you said you look at your order book in your backlog what do you think your revenue profile. This year is front half weighted or more balanced through the year.
Yeah.
Thank you Quintin and I'd say it on here so regarding the market our Roe.
View and what we should expect in 'twenty 'twenty one.
So as I said in my prepared remark entering in 'twenty 'twenty one there are through.
Two main catalysts that are fueled the growth at least in the first half which is the healthy demand in the logic foundry that will continue at least in the first half.
And secondly is the growing investment in DRAM.
Now regarding regarding the second half are as you know, although we don't guide for the year.
And the visibility right now for the Q4 is not so great.
Can be cautious and said that Ah I support the you know the analyst and the prediction in the market that saying.
That does that but you will see in 'twenty 'twenty one.
Will it grow over its around 10 to 15 per cent.
Think that if we're looking right now on the segments.
Is that H, one probably will be fueled by our logic and foundry if I'm looking on the second half.
The foundry and logic will continue on the same healthy demand basically on the <unk>.
753 nanometer and I think that HUD debt, our net non mainly V. NAND will be added in the second half as well, okay. So I'm looking right now on the balance there at least from our predictions.
Great and then for Dror, you mentioned that Oh.
Appreciation.
For the shekel was with one of the things that they've added some costs.
The fourth quarter I'm, just wondering as you look into 2021, you've given us opex guidance for free per quarter. How are you thinking about foreign currency exchange.
Do you expect that there's ever been.
Net remain elevated costs in line.
For the higher Opex this year or how are you thinking about sort of that.
For foreign exchange impact on Opex in 'twenty one.
Yeah. So obviously, it's hard to predict a you know these are these are economic elements of the market. What I can say is that during the first quarter. The foreign exchange rate did hit the.
So I'm kind of a of a low level and started recovering since then our guidance for the first quarter is already embedding a an additional small impact as a result of debt and assuming the currency will remain stable at these levels again, it did hit some kind of for loans in.
In January.
So expenses I'm, not get and other heat from that aspect in the coming quarters.
Okay, great. Thank you.
Thanks.
We will now move to our next question from <unk> Malik from Citi. Please go ahead. Your line is open.
Alright. Thank you for taking my question and good job on results and guide our Eaton on especially.
So listen the largest demand.
Strong loft here, if you can parse at.
For the metrology demand between the share technology invoices, leading edge and also if you can comment on the intensity.
For your products as he moved to a PD gate all around type devices for five nanometer and T that may be true.
Yeah.
Thanks for thanks for the question so if.
If we're looking right now on dermatology intensity, but they are the two pillars. The first pillar is that Oh, the waves in logic foundry.
Intensity is higher.
Oh, the highest in the in the semi segments. After that is the DRAM in a day.
And is that.
Okay. All day, none of this is the way that the intensity is being allocated there isn't is that mainly that in foundry. There are many many products and there are changes also in the materials and the dimension is and as you go along to the DRAM and and Divina and the number of products is a is reduced.
And it's more of a stable product. So so the intensity wise is always higher in the logic foundry. So this is one pillar. The second the second pillar is always when you are moving to a new generation of a chip in it.
Moving to a new complex device and.
The current movement that we see that are the logic is moving to a two three and two.
In and changing also did the architectural a structure to go to non wireless and changing their materials.
And also if youre looking right now on the AR on the memory as well when you are scaling down the device of course every change on every moved to a new generation is increasing the intensity of itself for the segment.
So if you have those logic and the memory as we see that in 'twenty 'twenty, one replacing generations and also changing again, replacing materials and going through a very complex devices of course, the intensity is going up we need always when we're talking about the intensity of trying to offset it by their capacity.
Right. So if you are intensities going out here and capacity is not going on the same level.
So then you have some offsets, but if you are normalizing at 200 wafers or 1000 wafers always logic and foundry is higher.
And when you're looking right now on the next one year, all day intensity and attach rate in all the new technology nodes are going to.
To be higher as well.
Great and as my follow up if you can talk about what's driving the service gross margin tire.
The March quarter or is it just the volume and thank you for picking out the two margin.
Yeah sure. So obviously the phenomena in Q4 was a one time phenomenon related to the aspects that I mentioned before more materials consumption in this specific quarter in any year adjustment. So actually what we see in the first quarter is that service gross margins are routine for us.
Turning to the normalized revenue. This is what you should expect along the year. If we are we will see pickup in service revenues along the year margins can even a further improve from these levels.
Thank you.
We will now move to our next question for Mark Miller from the Benchmark Company. Please go ahead. Your line is open.
Based on the midpoint of your guidance. It appears R&D went up significantly last quarter and it looks like that trend is going to be continuing in 2021 is that correct.
Yes.
Okay.
Taiwan semiconductors, putting up a major fab and in our zone, It's a key customer who you are.
Our orders starting to flow in from that or is that could be later this year.
So that the orders for the Arizona Sun will probably start to arrive in it and I don't know the orders and I don't know when exactly they are going to come but probably towards the end of day.
Thank you.
Yeah.
Yeah.
And we'll now move to our next question from Jason Smith from Lake Street. Please go ahead. Your line is open.
Hey, guys. Thanks for taking my questions.
I think at one time, there was talk that the goal for the service revenue line would be targeting 10% growth is that still a good ballpark.
Think about for that revenue stream.
Well I would say the following our current assumption for services growth is between five and 10% depending on the installed.
Installed base, our growth and also our value added services into specific year.
So obviously this theory for was around 5%.
There could be years, where it's a way to rates going up to approximately 10%, but you know it's between these these 11, 5% to 10 per cent for Ya.
Okay. That's helpful. And then just as a follow up I'm. Just curious if you saw any constraints on the supply side in Q4, or if you're anticipating any going forward here in the near term.
So just I mean, if you're talking about the supply chain for our production facilities I think that we manage it very well in the in 2026 trying to secure everything that we can in the supply chain. So it means that we increased inventories and you'll see that in our financial reports and also.
We are we tried to qualify actually a second or third supplier in each one of our <unk>.
Elements in the supply chain and the way that we are looking forward is trying to try to order and try to make sure that we have enough capacity.
For the next six to nine months and this is secured.
And we need also to remember that we need to secure extra capacity, because we see a growth in the production.
But regarding the bottom line, we don't see any disruption currently so if the worst is behind us for it.
Through 2020, and we could succeed income.
The production I think the 'twenty 'twenty, one can be the same and even higher.
Okay. Thanks, a lot guys.
And we'll now take our next question from Patrick Ho from Stifel. Please go ahead. Your line is open.
Thank you very much and congrats on a nice finish to the year, Hey, Tom maybe first off on the materials metrology front, it's good to see the traction and the adoption very quickly for.
These new products as you look at the memory side of things and you mentioned DRAM has hired metrology intensity can you maybe give a little more color on some of the applications and some of the potential wins on the memory side with the materials metrology offerings that you have today.
Yeah. Thanks, Patrick for the question. So the two main applications that are running on the specifically on day, one the X ray or the previously Rivera.
There are products is the composition material composition and ultra thin thickness measurement. Okay. This is the two main applications and we are running on these two applications in all of the customers.
Now because its a because it's a unique metrology capabilities the way that it started it started so I'm taking it from a 2015 from the lab to Fab, we started with a couple of system for a phase of their fab.
Some of them were in R&D some of them were in production and in the last five years, we could move those tools to be a real in die in line production tools. So once you move them to in line and in production you're also improves the attach rate and the intensity.
So once you once you are start to get the customers confidence because it's a non destructive and it's becoming a very fast and metrology capabilities, you'll start to get into a into the fab with a with more capacity more attach rate than more intensity I can say that our.
Without getting to the exact numbers, but the distribution between our memory and foundry or logic, it's around 50% 50 per cent. So we have applications coming from the memory, mainly the V non sides window changing materials.
And they're starting to to have a very old for a thickness of applications and also for the logic in front of me one day of moving to a new structure. So it's two different directions.
But both of them are increasing the intensity of the usage once we move to be in line and in di systems that have the capability to measure really fast.
Right, that's really helpful and maybe as my follow up question. It. It's good to see the services business continue to grow I mean, you mentioned the margin improvements as we move 40 212, maybe draw for us from that standpoint, and the margin improvements how much.
A ball being where you're.
You're helping customers not only with the traditional type of services, you know break and fix type of model, but with enhanced features enhanced products upgrades, how much of that is contributing to the services growth as well as the uptick in margins.
Oh, that's a good point, Patrick because actually in 2020 at least through the first half of the year because of the situation of the COVID-19, the ability to.
Entered the Fabs and do these mega projects of our upgrade cycles are was there a little bit limited in this probably had some impact for the growth of the services in 2020, which was at the low at the low end of the 5% to 10% that I mentioned.
Looking forward when we move into 2021, obviously these limitations are less less significant and hopefully this can contributes more to our revenues and Ah in 2021, and our hands are accelerated the growth of services and our in depth.
Yeah.
Great. Thank you very much again.
Yeah.
Thank you Patrick.
And just as a reminder, that is star one to ask a question.
We will now take our next question from Krish <unk> from Cowen and co. Please go ahead. Your line is open.
Yeah, Hi, Thanks for taking my question and congrats on the really strong with the he cannot draw. One quick question. When I look at your calendar 'twenty numbers. You know you guys definitely seem to have grown really nicely. Both you outperformed the industry growth and also some of your peers. So I'm kind of curious is there anything you can quantify.
How much of your growth came from share gains.
And which vertical where those share gains and we're gonna be foundry logic and memory when it a follow up.
Perfect. Thank you very much for the question. So so you know if youre looking right now on the average AR growth in the market as you said it was around 15%.
And if we're looking right now on our products the growth rate in the year was above 25 per cent.
So I think that Oh, there went through those strong catalyst to our growth. One of course is capacity because capacity demand is growing in all segments.
And the second is purely share gains.
I cannot mention exactly where but once youre doing once youre doing outperformance, it's either you open a new market or youre, taking market share in this specific year.
As I said in my prepared remark, we took market share.
In one big idea I'm as I discussed before and now you mentioned it in a couple of my.
My calls as well as in a global a memory customer that took our oil portfolio starting for me integrated standalone as well as our materials and software.
And it's a it's a it's also I think today. It is couple of other customers in China that in some of them. We are holding a high percentage of Oh for market share.
In light of the performance. This year. So definitely there is an increase in market share. This year on top of for on top of the the demand and I also would mention that if we're looking right now in 'twenty 'twenty one it's a the new products that we're bringing in will probably open a new applications that we're in.
Unsaid in production for a for many years. So we can increase besides the market share also getting applications into a measure it before in the lab and now it's moving to to inland production.
Well, we've done a very.
Very impressive and then I just had a.
Quick follow up.
Thanks for the color on the service and product gross margin.
The op margin level is it fair to assume so listen product side.
For the op margins.
Can you repeat the question.
For the service and product divisions for the op margin level of each day.
The corporate average in other words.
Services has low opex low R&D for that too.
That's the op margin, whether that's into the products.
Yeah, so the actually the.
The situation is that our the service business as a whole is heavy on the personnel and headcount and field service engineers in the field.
Relative to our maybe our products, which is a you know more heavy on the materials.
So practically this is the main reason for the difference between gross margins of services and products.
<unk> around 40% and products around 60 per cent again. The main reason is that the infrastructure of the service organization is is is a heavy on on head count and personnel.
Cross the Globe you know, it's 150 sites and so forth.
Got it alright. Thank you very much appreciate the color.
Thank you.
And there are no further questions. So I'd like to hand, the call back to Asia, Oppenheim, Nova's, President and CEO for any closing remarks.
Thank you operator, and thank you all for joining our call today, please stay safe and healthy and we meet you in the next day.
Turning called thank you.
Ladies and gentlemen, this concludes today's call. Thank you for your participation you may now disconnect.
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