Q1 2021 Blonder Tongue Laboratories Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to Blonder tongue Laboratories' first quarter 2021 earnings call.
At this time, all participants have been placed on a listen only mode and the floor will be opened for questions and comments. After the presentation. It is now my pleasure to turn the floor over to your host Ted Grout, President and CEO, Sir the floor is yours.
Thank you.
Hi, Good morning, everyone and thank you for joining us from participating in our 2021 first quarter earnings call.
I'm, Ted grow Chief Executive Officer, and President of the company.
As we give our remarks. This morning, we will be discussing certain subjects that will contain forward looking statements, including management's view of our prospects and evolving trends in the market.
As you know the future is all but impossible to predict and so I caution you that actual results may differ materially from those that maybe projected in our comments, we would ask you to refer to our prior SEC filings, including our form 10-K for 2019 and 2020.
And our filed 10-Q forms for the first second third and fourth quarters of 2020.
For additional detailed information concerning factors that could cause actual results to differ from the information discussed this morning.
With me today are Steven Shea Chairman of the board of Blonder tongue laboratories, and Eric Skolnik, Our Chief Financial Officer, and senior Vice President.
Eric's remarks will fall in line and we will cover our detailed financial results.
All of us will be available to answer questions that you may have during a Q&A session immediately following prepared remarks.
Okay.
The company saw product demand begin to recover during the very end of Q1 after facing the last 12 months in a very difficult pandemic affected marketplace.
Overall, the company's sales were $19, 7% lower in Q1, 2020 versus Q1, 2021, and yet we were still successful in generating positive cash flow from operations for the quarter and increasing our gross margin and associated operating margins compared.
With 2020.
This was the only possible due to our team's extensive work during all of 2020 and making the changes necessary to operate the company more efficiently.
We also began a process in Q1 of the technology and sales focus on the growing the IP IP TV and broadband oriented market segments with all of our cable and telecommunications customers and through our distribution channels.
Our long term operating expense reduction programs were finally completed in Q1.
Those efforts combined with the sales focus I just mentioned yielded an improved product mix in our sales that more than offset the lower revenue level year on year.
Higher operating efficiency combined with product mix yielded gross margin of.
The 42, 6% for the quarter up from 13, 7% for the same period last year.
The specifically encouraging element during Q1 was our increase in our <unk> platform product sales and opportunities. Additionally, our clear view of video transcoding product line that was introduced during 2020 continued to gain sales with additional customers and we've had additional cleared the models gain surface operator qualification.
<unk> during the quarter.
Also during the first quarter the company benefited from supply chain commitment and investment decisions that we made during Q4 of 2020 and that have enabled us to run our manufacturing without interruption year to date.
This is in contrast, with the recent impacts that many electronics companies have had from semiconductor and other parts of shortages that we've all read about in the news.
Longer term products remained readily available for customers at our normal lead times and we've achieved some customer wins in late Q1, with our favorable product availability in the market being a contributing factor.
As the company heads towards the middle of the year, our near term activities or to continue the plans that I've mentioned over the last year. All of these earnings calls and in our filings and press releases, specifically to continue to expand our direct relationships with telco cable and fiber optics based service operators and.
The focus of our products and sales efforts with the goal towards achieving improved product mixes and to run the company in a way that is financially efficient as possible.
As I also mentioned in last quarters earnings calls, we believe that of major indicator of our progress in the company's structure and health is indicated by the reduction in cash used in operating activities in Q1, while managing the company with the year on year.
Sales of reduction in sales of 19, 7%, we had net cash from operating activities of 230.
$4000 compared to net cash and net cash used in operating activities of $842000 for the first quarter of 2020.
The significant change.
At this point I would like to pass the floor to Eric Skolnik, Our Chief financial Officer to cover the detailed financial results.
For the first quarter.
Of 2021.
Eric.
Thank you Ted.
Tongue Laboratories, Inc. Net sales decreased $799000 or 19, 7%.
Two $3.251 million for the first quarter of 2021 from.
For $50000 for the comparable period in 2020.
Net loss for the three months ended March 31, 2021 was the loss of $414000 or a loss of <unk> <unk> per share compared to a loss of $2 million $80000 for a loss of 21 per share for the comparable period of 2020.
Net cash provided by operating activities was $234000 for the first quarter of 2021 compared to net cash used in operating activities of <unk>.
$842000 for the comparable period of 2020.
The decrease in sales is primarily attributed to a decrease in sales of DOCSIS data products digital video head end products and hybrid fiber coax or HFC distribution products offset by an increase in sales of video transcoding of products and an ex G. Internet protocol IP video.
So digital signal processing products.
Sales of DOCSIS data products for $28000 and $871000 digital video head end products were $543000 and $1.057 million HFC distribution products for $427000 and 688000.
Transcoding of products were $736000 and $115000 and ex G products were $421000 and $196000 in the first three months of 2021 and 2020, respectively.
As previously disclosed in our 8-K filed on April seven 2021.
On April 26, 2021 of the company received the payroll tax credit of $577000 through the employee retention tax credit or <unk> for the first quarter of 2021.
The amount was recorded as other income and included in prepaid and other current assets as of March 31 2021.
The company's primary sources of liquidity have been its existing cash balances cash generated from operations in the amounts available under the Midcap facility at March 31, 2021, the company had $537000 available under the mid cap of facility.
As disclosed in the company's most recent annual report on form 10-K, the company experienced the decline in sales a reduction of working capital of loss from operations and net cash used in operating activities in conjunction in conjunction with liquidity constraints.
These factors raise substantial doubt about the company's ability to continue as a going concern.
The above factors still exist accordingly, theres still exists substantial doubt about the company's ability to continue is it going concern the financial statements do not include any adjustments relating to the recoverability of the recorded assets for the classification of the liabilities that might be necessary should the company be unable to continue as it going concern.
Now I'd like to open up the call to the question and answer session.
Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.
We do ask if you are listening via speakerphone. Please pick up your handset for optimum sound quality.
Once again, if you have any questions or comments. Please press star one on your phone at this time.
Our first question today is coming from Joe Ciccarelli, a private investor Your line is live.
Hey, guys. Thank you very much for your time. This morning. Good morning, a question for you under the <unk>.
$537000 you have currently available how much is total then used out of that so far.
No that represents the unused portion of the 537000 at March 31.
Okay.
How much cash is currently on the balance sheet.
You mean like at March 31, we report.
$56000 of cash on the balance sheet.
And then with.
With the NYSE, sending the noncompliant.
Is the game plan there to get the shareholder equity.
Ted you want to handle that.
Sure we have already filed a revised.
Recovery plan with the NYSE American.
It brings into accounts.
A reasonable plan that we believe is achievable.
The company decides to execute on all of those portions of the plan between now and the end of the year.
The the measurement.
Has to be made by the NYSE American approximately December 10th.
And then they will make a decision of whether we're in compliance or not and they have the choice to then move towards the potential delisting at that point, but we have a plan.
The plan includes elements.
That we've already previously talked about such as our.
The forgiveness of our PPP.
One from last year that debt is about $1 seven $6 million of.
Of the deficiency and some other elements.
Got it.
Lastly, the debt that the company has.
Can you go high level details of the current debt the company has.
Sure.
At March 31, we had approximately $1 million $280000 worth of subordinated convertible debt predominantly with related parties.
At March 31, we had balance under our line of credit of about 1 million $2 38.
We have $1 million 769 of the PPP loan that Ted mentioned that we expect to have forgiveness of this year.
And then there is about I think about $50000 worth of other small miscellaneous stuff.
And what does the $2 eight of convertible debt what does that convert at.
Okay. So of different conversion prices there is a.
Some of it is that 55 per share.
Some of it is at 59 point of <unk> per share and some of it's out of one dollar per share its and it was in our 10-K all of the details.
Okay.
Awesome.
Last question I. Thank you again.
I E mailed you guys over the last week or two.
It's been picked back.
At the longer term dotcom is there a better email.
No that should be it so I guess, what the investigators.
What the issue of information got sent back T Grouts and equal net all of that set back from at <unk> Dot com.
What's the what's the email that youre, sending from that could be just the stand blocker chromium.
Drew.
At ventures side capital Dot com.
The insurers.
Capital Dot Com, we will.
We'll take a look of that yes.
Thank you very much I appreciate youre at the time of course of looking very much for the questions.
Thank you. Our next question today is coming from Gregory Irvin a private investor Your line is live.
Good morning, guys good morning.
Hi, Greg.
I highlighted the things you mentioned and I'll just go over them briefly one of the time the.
Cash flow from operations was the real turnaround.
The primary question is do you see that as being sustainable over the over the course of the year.
So I really hate using that word turnaround.
I like it a lot. Thank you.
The question of whether it's sustainable really has so many factors related to the low.
Will the sales sustain.
Sustain will our product mix be able to be sustainable.
We're we're.
We're optimistic but there's a lot of factors out there in the market and.
Right now right now we feel pretty good but.
Yes.
We'll take it one quarter at the time and see how things are developing.
The things that the elements that are sustainable with with a incredibly high level of confidence or the operating expense changes we've made to the company. The updated sets of technology that we completed last year that are looking like they've got better traction in the market.
As the economy starts to recover from the from the effects of the pandemic and.
And the wider range of customers that we're dealing with.
Both of the distribution and service operating markets.
All of those things look pretty positive.
Alright.
Number two of the gross margins of incredible for reversible reversal there again.
The same question do you see.
Let's see them staying in the 35 of 40 40 plus percent range.
Yes, we try not to do too much.
Forecasting in this company just to stay on the conservative side.
The product the product mix that we're putting forward in the coming quarters.
B C.
The same were very similar to what we were able to do in Q1, whether those margins will be sustainable.
And you believe it a little bit of open ended and see how it goes but you can imagine the we're gonna do everything in our power to make them be at that level.
Better.
Most of the Nexgen.
The I take it the clear view.
The best sellers of this this quarter the most of the.
Attribute that largely that margin increase to those those lines correct.
Those were two really big contributing factors among other things, yes, one that I didnt notice all of them I'm sure it'll be in the in.
In the Q.
The the DOCSIS it looks like it fell off the cliff what happened there.
Yeah.
On that one of the really big thing is.
On that one it really is a comparison on quarter.
One quarter last year, which was pre pandemic.
We started to see the effects of the pandemic on our sales and product mix.
Right at the end of the quarter last year.
Literally like the last week of the quarter last year right. So.
You can kind of revenue you can kind of look at the first quarter of 2020 has been the last sort of a normal quarter for the last year.
And there we had very good and very strong sales of DOCSIS products that go into a lot of hospitality setting a lot of small and medium businesses a lot of the.
Kind of locations you can imagine that there's been a huge impact on those portions of the products in our product portfolio over the last year and so in Q1. This year was no exception to that so.
We have not seen any kind of major recovery in the hospitality sector.
As it relates to our products yet.
<unk> seen as you've seen our sales increase and some other sectors that are very encouraging.
With the hospitality portion of our.
Sales.
In particular, the DOCSIS products, that's modems, it's transmission equipment called <unk> and some other things.
Those who have not recovered from the pandemic and that's why that's such a stark difference.
Okay.
What about the what is it the <unk>.
CPE.
Equipment.
The set top how's that doing.
So the CPE.
Yeah.
I think the best way to characterize that without going too much into forward looking statements.
Is.
We're still playing a role in that and we're going to watch the market over the coming quarters to see.
Which areas.
We've been working in are going to lead to either either growth from the top line of growth in the margin level.
We're kind of adapting as we see that they've been they've been good so far this year.
<unk>.
But.
We kind of see that market is changing over the coming months.
Still of lot of opportunities there, but.
Maybe maybe changing some of the things we're doing in terms of product mix.
Preserve the smells like services and software versus hardware et cetera.
Correct me if I'm wrong.
That was sort of a.
This is my characterization interim income source.
For the last year so the.
Maybe its future is not so bright as far as of the product mix.
For those.
From the very beginning we wanted to jump into that product, adding that product mix, knowing full well that there was going to be of short term period of time that we would have a lower margin.
Mix associated with it because of the product line was was the was the tool that we were able to use to establish.
The compelling and.
Genuine supply relationships with a large number of service operators that.
Has have traditionally not purchased from us or have traditionally purchaser of products through distribution channel did not had direct.
Relationships with us.
One interesting data point is over the last year and half the two years we've established.
Roughly $65 70, new <unk>.
<unk> ships directly with small and medium sized service operators around the country that we didnt have before we had that CPE product line. So thats if you measure.
That is one element of the success of the strategy that has done very very well.
The intangible.
All of it being a door opener for Ya.
Yes, exactly exactly exactly and you can imagine we're already in the processes.
Trying to turn those.
The new relationships into sales of the broader range of of product lines, including the <unk> Securities.
Encoders and many other products.
Another positive was the.
You mentioned, there's no supply issues in contrast, I know following the other companies that that is somewhat of other factors though.
That's good to hear as well.
Thanks, very much on that yes.
We.
Several of the management in the company, including myself have backgrounds working extensively in Asia.
With Asian suppliers and other other positions upheld in different companies over the last 20 years.
Including the semiconductor industry.
I used to work at Intel and S T microelectronics and our contacts there really were.
In that industry really were key to us understanding that there was a potential disruption of supply pretty early and we sort of doubled down on commitments and.
And stocking up on raw materials ahead.
Ahead of winter.
Head of when it actually started to be of problems. So we were.
A little Lucky there I think we made the right decisions of course hindsight's always 2020. So that's that was those were good decisions.
A question regarding the employee retention.
The facility.
Debt.
The.
The 577000 income.
I take it.
The cut.
We haven't received that that the.
The overall net loss would have been closer to 1 million of am I correct in assuming that.
Hi.
Well take the.
Okay, but do you want to hit that.
To talk about.
No.
Well I'm glad that's available and looking at the term.
Initially mentioned missed that all of the 8-K because of more concerned about the here the.
Listing growth.
But I see that it goes back the comparisons in the similar quarters the 2019.
Debt.
You need a 20%.
Losses in growth.
And comparing those quarters is that all or nothing.
Help me here is that yes.
Yes. The the measurement is you take you look at each quarter and you compare it back to the comparable quarter in 2019, and if you have sustained.
The loss in revenue of 20% or more you qualify for the <unk> program.
So.
Might that might the strategy be to.
Stay slightly under that.
In order to take advantage of the program.
I mean, you want the you want their sales and whatnot that go up but you don't want to lose out on the other hands.
Well I mean, what we're what we're fundamentally focused on debt Greg as the company is we want to grow both the top line and the bottom line items.
If the market shows us that it's growing.
And.
And it's good high margin important revenue.
I would be very happy to.
The two not did not qualify for the program.
In exchange for us growing our business, we do not want to be of company.
The.
That looks at that at that income stream as important to our ongoing success. It cannot be it is not now and it's not it's not going to be.
While the situation is.
Is where it is right now which is the market is showing some signs of recovery.
Looks pretty good but we're not over that threshold, then and as long as we're fully in compliance with the qualifications, we're going to absolutely take advantage of it.
That's what I would expect.
Let's say in the going back to the the lifting looking at that.
Criteria for the <unk>.
<unk>.
What is the line.
Stages of that the <unk>.
$6 million requirement.
The shareholder equity for them too.
Right now it looks like we're at about a million of half of shareholder equity.
And looking to satisfy all of those looks like it's gone up.
The big step up particularly to get to the $6 million by the end of the year.
Hi.
I assume you're confident are fairly confident that you can get there and get the exchanges off of your back.
Forget it off shareholders back of the major concern for me this the listing of it.
As I understand it that you could get a call at any time in the.
The listing would be of problem.
Well in terms of we could get a call at any time.
That that measurement of the company.
We will not happen until roughly roughly December 10th December 11th So.
We're not in the situation, where we could just get a call at any time.
And as I as we answer to Drews question, just a few minutes ago.
We have submitted the plan that will get us.
Fully in compliance the compliance for that measurement has to happen in the middle of December.
So now now the question is executing on that plan and Oh.
And making the decisions that we need to make to get the company back over there. So there is a path it's been laid out in front of the NYSE and submitted as a form of plan and we're working.
Towards that plan.
Excuse me that must have been my misreading or misinterpreting mission of Oh.
Not at all.
Let's see what else the product.
The total number of shares outstanding.
Okay.
Yes.
As of May six the number of shares outstanding were 11 million of 960500 Bucks.
Okay.
And if you've kind of a little color or elaboration on the.
Your service operator base, how youre doing with the big two or three and.
And where you are looking for growth.
Over the near to medium term.
With the various product line.
Sure.
The the.
Clear view products.
Our largest base of sales or into markets that are serviced by Directv.
We do have a direct relationship with directly with Directv.
On a.
Communications basis with the products are actually purchased through distribution channels to their dealer network.
That's going very well.
The lined up right with what we've already publicly announced on the growth of the clear view product lines.
Some of those products are into the cable operators as well the large majority is in the Directv.
SMB and bulk video markets.
And that's going very well and growing pretty well so far this year.
<unk>.
We're doing very well in growing our both our relationships and potential business in the tier one nothing nothing that I can publicly talk about because as you can imagine most of the tier one of the relationships. We have have non disclosure agreements in place.
And we can't even mentioned the names of the company.
Let alone the specifics of any particular deal, but we are growing our business in the tier one segment and those direct relationships, where we sell directly to those operators. We don't we don't sell through any intermediate intermediary or distribution channels.
In those relationships and the growing really nicely and we've established new beachheads.
From a from a from a potential sales perspective.
Recently during Q1.
And things are going well there.
The growth this year is mostly going to come from growing the NXT the clear view and a restoration of some of the lost.
Hospitality and SMB small medium business segments that were lost during the day.
Worst of the pandemic situation. So if we could simply recover those but also count on the new sales that we've gotten with the newer products. During the last 12 months will be and we'll be in pretty good shape.
In regard to streaming do it.
The.
Competitive with the hardware and.
The net.
Net well, but its a niche at the growing it certainly wasn't niche in that now.
And now it is not right.
That's right.
<unk>.
We are.
The best way to characterize that as we've done investment as I as I wrote in the press release.
A lot of the product mix growth has been in flow in products that we have.
<unk> developed.
There are parts of our NXT product line of parts of other encoder and Transco the product lines that are now incorporating some of the newer OTT style technologies such as if.
If anybody's of technologist on the call things like Mpeg Dash H L. S C.
CDN technologies content delivery network technologies.
Sure.
IP packet ties video.
Those technologies are now starting to show up as features and enhancements and and even some cases separate.
Product skus in our portfolio and that's part of what's been driving.
The sales were looking to continue the to finish finish but continue the the additional development that we're doing the.
R&D and the engineering.
To expand that portfolio in that area because that's the that's the growing segment in video as well as continue to try to grow products in our in our data and broadband portfolio, which is which is.
Frankly, and even faster growing market segment that we're that we're very keen to get get more fundamentally into.
This year.
Well, thank you and finally and this was touched on in the last call.
The non us and the services that you may have.
<unk> be working on to buildup deliver independent of hardware.
Are you able to.
Talk about that at all yet sure a lot of that still kind of in planning and product development, but the one area that we have done.
Good job of in the first quarter as we have started.
Racking up more sales and service level agreements.
Net of related to our current probably we revamped that program.
Early in the year launched new product literature, and started selling and supporting.
Some different policies related to our SLA agreement. So that's that's another.
Frankly, probably sort of very small factor wire margins stood up stronger in Q1 of them, but very small factor, but it's it's an area that we think is.
A lot of potential to so we're putting a lot of focus on that and then some other affiliate services the way I will talk about quite yet.
Alright, well. Thank you very much it's good to hear from you guys and just wish you well in the future.
Your questions are always very appreciate of Brexit really appreciate it alright, alright, guys. Good day.
Thank you. Our next question today is coming from George Gaspar Private Investor. Your line is live. Thank you good morning.
Most of the questions that I had were just.
Just recently answered here on the call.
All of which was very good my one question here is about your employment situation.
The current staff and I know you've done a lot to try to kind of mindset.
And bring your question to two eight.
More precise level relative to your revenue strength.
How do you view.
The requirement for.
The.
Going forward.
To try to recapture more of your markets can you do it with the existing <unk>.
Climate situation or do you have visions of needing to accomplish it by 510, 15% or Mark can you talk about that.
Sure.
So the way.
I think the best way to think about the operational changes we made over the last year in a few months.
Is.
It was it was slow and iterative, meaning we would make some changes in a certain area, we would test we'd see what.
The effect that was having on particular departments the ability to do the job.
Yes.
And then we would recalibrate and figure out what can you give us more either they're in a different part so it was.
Compared to a fairly.
Strong fast set of actions we did it in this way because what we wanted to do was to end up with the structure and the capability that we would be happy to live with.
For a long period of time and as as we work towards getting the revenue to grow in the margin levels to grow.
I didn't want the structure that I have to add back a bunch of cost too.
In order to.
To to perform and deliver on a larger revenue line. So I think we've I think we've accomplished that.
And so where we're looking to potentially add staff and if we do if and when we do start adding staff back it will be offset by other of the reduction either other parts of the company.
We're in other operating costs.
Would be an expanding sales and marketing activities in order to capture that revenue that more of.
Net revenue in the most interesting revenue out there.
That would be the area. We would we would actually we don't believe we need to expand cost or expense cost in manufacturing and operations in engineering.
For for.
For the most part and support.
Cash okay. Good. Thank you for that answer just one last.
Any observations on in terms of expansion.
Yeah.
And Mark the international.
We've looked into it we do have some.
We do have some distributors of ours that are active in Latin America that are bringing.
Our non material amount of sales to us right now and we're seeing some some some signs that that may be growing.
As those other economies start potentially recovering from the pandemic effects.
So that will just sort of pick up naturally potentially.
But when we looked into it before.
The costs associated with <unk>.
Expanding in the markets that we're already served by fairly well entrenched competitors, where it's not that we felt like we couldnt do it we felt like it was expensive and the outcomes were a little bit questionable how long would it take for us to make meaningful inroads in to taking market share away from <unk>.
From other competitors and we felt like those resources were better spent to shore up where we are right now.
We're going to have better return on investment by focusing on U S and Canada right.
Well. Thank you very much for your explanations good luck going forward here.
Thanks for the questions from me and I appreciate it.
Thank you. Our next question is coming from Dave <unk>, a private investor Your line is live.
Hi.
A couple of questions.
The look back around to the listing.
The outstanding shares, but I was wondering by the end of the year is there an estimate on what the fully diluted.
A number of shares would be.
So theres about $11 million.
Standing right now, but after the conversion what would that be.
Well it depends on the of.
We have approximately.
It would be for another 2 million 60 of shares under our convertible debt structure.
And on.
The outstanding warrants that we had from our private placement that's about another 929000 shares and then of course, there's also the potential dilution for.
For our employee and director of stock options and the pending without I'm not sure of the exact mix some of them maybe in the money some of them may not be in the money. That's another $3 million two so the the.
The potential of common shares that are outstanding in addition to the existing shares of $6 million 971000 additional shares right now.
So we're looking at possibly having 17 billion of debt.
And that would be for every single one of them converted correct, yes, but thats not cash certainly likely.
Okay.
And there's a part of the listing requirement is a dollar for dollar bid for 30 days right.
No. The only listing requirement that we have right now is that we need to be back in compliance with our stockholders equity of momentum of $6 million by December of debt.
Okay.
So along that.
Those lines.
How closely all of where you're tracking and executing the lifting of the continued listing plan that was submitted.
Last I saw.
From I think it was an 8-K.
So we were not.
In line or.
In compliance.
With the plan.
Well.
Correct, but what happens is we are required each quarter.
Two.
Basically update of our plan and describe of any changes to the plan compared to the actual results of the quarter. So the the NYSE American has certain thresholds that so if you. If you for example, if you're if you're below ex and.
Then you're below why youre going to get another notice and that's generally what's happened here is that that even though our updated plans may still show compliance by December 10th.
Of that specific period in time.
The report the.
<unk> required to.
Sent us a notice of deficiency and that's what happened.
Alright.
And the amount of less I think this is my last question at least on the subject.
There is the delisting.
What's the what's.
What's going to happen after that does the company go private Tobey.
On the OTC Bulletin board.
Somewhere else with the less.
Requirements.
And then wait till we regroup and then come back to the NYSE American.
<unk>.
Was there hasn't been any consideration of that.
I don't think were really prepared to talk about this time of all we have our plan in place with the NYSE American and that's what we're driving toward at this time.
But there certainly are other markets, where the stock can trade without going private in the notion of the going private is not reporting that is not going to happen.
There are alternatives like you mentioned like the Bulletin board of which has not called the Bulletin board anymore, let's.
It's called something else I don't recall exactly.
Yeah, Let's go call it both of them books.
Okay.
I call it the picture the picture you see.
And other stuff.
I got to go back of ways.
Okay. Thank you.
Thank you once again, ladies and gentlemen at the will be any final questions or comments. Please press star one at this time.
We have no further questions in queue do you have any closing comments that you'd like to finish line.
Sure I just wanted to thank everybody who joined the call.
We appreciate everybody's participation and interest in our company and ongoing investment and we look forward to talking to everybody next quarter. Thank you all very much.
Thank you ladies and gentlemen, this does conclude todays event you may disconnect. Your lines at this time and have a wonderful day. Thank you for your participation.