Q2 2021 Cognex Corp Earnings Call
Struggled in 2020, such as brick and motor retail are restarting their automation plan.
Consumer electronics was a large contributor to growth in Q2.
Revenue was higher than we expected because some business happened earlier than we anticipated.
While the highlights for this quarter. It does not change our overall view of consumer electronics for the year. We continue to believe revenue from consumer electronics for 2021 will be modestly below the level, we reported last year.
This is due to lower levels of investment in smartphone manufacturing and in devices needed for online online learning and working from home when compared to a year ago.
Revenue from manufacturing industry has increased substantially from depressed levels in Q2 of 2020 automotive set a new quarterly revenue record after being hard hit last year.
Other highlights included consumer products and food and beverage.
Semi also grew well year on year medical related industries did too.
Yeah.
Moving now to our supply chain, we're facing the most difficult supply chain environment I've experienced in my 13 years the cognex.
The use of Cognex products is growing worldwide as manufacturers of the sponge to labor shortages and increasing consumer demand, they're implementing machine vision to improve that throughput and the quality of their products.
At the same time cognex and many other companies are under pressure from record loan component lead times vendors struggling to supply parts freight delays in capacity constraints labor shortages and COVID-19 concerns.
At the time like this we're thankful we never focused on just in time inventory of our squeezed our suppliers for short term gains.
Those long term relationships with our suppliers have been helping us.
Even so the situation intensified as we move through Q2, we continued to aggressively secure strategic components and move fast to certify alternative parts, where we see shortages.
Our suppliers understand that and our customers appreciate what we're doing to accommodate their request.
Let's talk next about new product development the.
The spring and summer on exciting time at Cognex, it's when we bring our technical and sales leadership together the strategic planning. These of some of my favorite weeks of the year.
Tremendous excitement within the cognex about the new technologies and products, we expect to introduce over the next few years and the growth opportunities ahead of us.
Cognex is industry, leading vision tools are a key differentiator for us in solving our customers' most challenging applications on.
Our long term development and investment in R&D and the continued to make our vision tools progressively stronger more accessible and easier to use.
An example is the vision pro 10, a recent major update to our PC based vision platform vision Protend enables customers to use cognex rules based patient on software and deep learning technology, together more easily and of powerful development environment.
Along with vision Protend, we introduced smart line the industry's first hybrid smart tool for PC vision. The combines the high accuracy of 2 division with the flexibility of deep learning Smart line quickly solve complex lines of detection for high precision alignment of applications in consumer Electronics Assembly.
And semiconductor manufacturing processes for the 2 challenging for traditional vision alone.
Yes.
Furthermore, on new vision probe deep learning to point out of software release, which runs with the vision protein.
The new deep learning capabilities from cognex that enable the high precision measurement of scratches blemishes cracks and of the Deepak This.
This is particularly valuable in demanding medical and electronics applications.
We're also leveraging our software advantage with new optics technology from the investments we've made in image formation.
An example is on new high speed terrible mirror, which features next generation the liquid lens technology to significantly expand the field of view for a powerful data and $4.70 fixed Mount barcode reader.
This terrible mirror is ideal for quickly leading a high volume of barcode that shorter working distances such as in pharmaceutical packaging aggregation as well as across large fields of view such as reading many barcodes on a large pallet in the warehouse.
Both applications previously required either of the integration of multiple readers or the programming of PC vision and many high resolution cameras.
In other product news, we continue to make good progress transitioning our logistics business from customized to the standard solutions.
The standard solutions are easier to deploy and require less hands on engineering support from Cognex.
We believe this will enable us to scale more easily and report higher growth margin and logistics over the long term.
It's gratifying to see the hard work and ingenuity of Cognize come to market in innovations like the day.
Underscore the value of our long term investments in our DNA.
The decisions, we make on the west to invest on our work hard play hard move fast approach the business continue to serve us well.
Now I will hand, the call over the pole for details of the quarter.
Thanks, Rob and Hello, everyone.
As mentioned revenue for Q2 was $269 million, which represents a 59% increase over a weak quarter of year ago at of new all time revenue record.
We were pleased to deliver revenue at the top of our expected range.
We believe this demonstrates improved visibility and our success in navigating the difficult supply environment.
It's worth noting the Q2 of 2020 was an unusual quarter due to COVID-19 at our own restructuring actions.
Q2 of 2019 provides another potential helpful comparison.
Revenue in this year's Q2 was 35% above that pre COVID-19 period of 2 years ago.
Our 3 largest end markets logistics automotive and consumer electronics, all made strong contributions to year on year growth.
We were particularly pleased that automotive exceeded our highest pre COVID-19 level to set a new quarterly record.
Broadly speaking growth in many sectors is running at a good clip.
On the revenue growth.
That compares the very favorably to the operating loss, we reported in the last year's Q2, resulting from the charges for the restructuring actions intangible asset impairment and inventory right down.
Below operating income investment income decreased by approximately $1.5 million a year on year, primarily because of of lower yields on our portfolio in the current environment.
The effective tax rate, excluding discrete tax items was 18% in both Q1 and Q2 of 2021 compared to the benefit of 1% and Q2 of 2020.
On a non-GAAP basis earnings were 43 per share in Q2 compared with 18.
And Q2 of 2020 and 36 cents in Q1 of 2021, excluding discrete tax items and the 3 charges just mentioned.
Looking at the change in revenue for Q2 from of geographic perspective growth broaden year on year in all regions.
Europe was our fastest growing region helped by currency exchange rates.
Revenue grew by more than 60% over of particularly challenging quarter of year ago.
10 percentage points of the increase was due to the weaker us dollar.
Growth drivers included automotive logistics consumer products and other industries in Europe's broad factory automation market.
The Americas increased by more than 50 per cent year on year and delivered the largest contribution in absolute dollars.
Substantially higher revenue from logistics led the increase.
[noise] automotive and medical related industries also contributed nicely.
Revenue from Asia also increased by more than 50 per cent year on year.
The consumer electronics increased substantially due to the timing of this year of spending cycle.
Automotive semi and the broader market continued to grow well, particularly in Asia outside of Japan.
Currency exchange rate fluctuations contributed about 4 percentage points to agents growth.
Turning to the balance sheet.
Cognex continues to have a strong cash position with $952 million in cash of investments and no debt.
We spent $14 million to repurchase cognex stock and Q2, and a total of $21 million a year to date.
We plan to continue to buyback stock in Q3 at a regular pace, while maintaining flexibility to be more opportunistic.
As we announced Tonight, our board of directors declared of quarterly cash dividend of 6 cents per share payable on September 3rd 2 all shareholders of record as of August 20th.
Now I'll turn the call back over to run on thank you call.
In summary, Cognex had a very strong second quarter in which we reported record revenue. It was also on fourth quarter in a row of revenue growth exceeding 30% year on year.
We are preparing for upcoming product launches and we're seeing the resumption of some expenses expenses such as domestic travel in certain geographies.
Lastly, we expect the effective tax rate will be 18%, excluding discrete tax items.
Now we will open the call for your questions. Operator. Please go ahead.
At this time, we'll be conducting a question and answer session. If you would like to ask the question. Please press star 1 on your telephone keypad, a confirmation tone will indicate your line is on the question queue. You May Press Star 2 true move your question from the queue for participants using speaker equipment and maybe necessary for <unk>.
The pickup your handset before pressing the star keys, 1 moment, while we poll for questions.
Our first question comes from the line of Joe Giordano with Cowen You May proceed with your question.
Hey, guys good evening.
Hello, Joe.
Yeah.
Can you talk like.
Given the supply chain.
Their sales that Youre, just not able to get off the door because of that I know you're paying extra on the cost of expediting and things like that but with sales of sales are great, but what they have been higher if not for these issues.
So.
Like for company for sales.
Looking at the longer lead times and the issues, we discussed in the call, but we don't think we're losing any business any material business that we can point to but certainly we're seeing it.
Large increase in backlog and delays in getting some orders out of the door and we size that as we would have been probably 5%.
Larger we would have grown 5% faster in the quarter, if we'd been in a normal supply chain environment.
That's very helpful on sizing that.
Yes.
In terms of the margin.
If you were to normalize for supply chain.
And this large customer are we back to like mid to high Seventy's and the like very isolated things that you can point to that or debt or keeping it in the.
Low to mid <unk> right now.
Yeah, Joe This is Paul that's right.
The other we broadened our range given some of the uncertainty on the supply market for next quarter, but there really are 2 major factors the.
The first being.
I think really are concentrated in Q3 the.
The deployment of the strategic investment with the high potential.
Logistics customer.
And again, we started to recognize that in Q2, but really the bulk of that is in Q3, and we don't expect much of that beyond beyond that quarter.
And then secondly would be the the supply chain cost increases we're seeing freight.
Total costs.
Predicated on some commodity pricing and so on and that May last a little longer than that.
But overall, we stick to our common operating model, we do think kind of 75% of operating margins on average is still a good good benchmark for us.
Perfect and then just Larry.
Yes, we had some conversations with people on the pharma distribution market and their sense of debt. It's extremely early in terms of like vision deployment in real like automation in that in that market and it just seems like that could be a gigantic market thats kind of untapped I'm just curious of.
For how you think about that and where you play there and like how you think that market is relative to some of the others that you play in terms of maturity.
Yes. Its initial question, let me, let me clarify you're talking about the.
Medical or pharmaceutical specifically.
And this 1 we are talking about like distribution of pills of medicines and things like that okay, Yes, I mean.
The fast growing market for us, but it has similar dynamics that I see in many many markets that we serve obviously the high value items that needed to be tracked on an item level. So a lot of regulation coming so.
Technology, where we.
We can help customers track and trade specific products even specific pills.
The way through the supply chain those have been things sort of being valuable for some time and have been rolled out globally, and I would say of increasing momentum.
That's for sure on and in some ways. This links to come and trends that we see everywhere item level barcode reading almost like an of license plates on cars with unique identifiers, where our vision is well positioned to do that better than anybody else's.
So we see that and then I think another trend that you might have the reserving in that industry. The certainly plays a lot more broadly is.
Just what 1 might call industry for point out of which the capturing of images the housing of them in the cloud the using of data to improve and update the supply chain and real time. These are the things I think we've been seeing for a while and Thats certainly gaining momentum and the potential is very large but 1 almost night take the same.
The statement I, just made and apply it to consumer electronic components from 30 in the electronic components high value items subject to counterfeit moving through the supply chain Wow, you, particularly see that today right and a lot of that stuff going on.
So and again the similar dynamics in the value of Cognex vision for print.
To read printed bar codes may be tiny.
Reliably through the supply chain and help customers manage it more effectively.
<unk> and I could kind of go on to other industries true.
With the same kind of over the years, so yes, but it's not just pharma.
Thanks, guys.
Our next question comes from the line of Jacob Robinson with Melius Research. Please proceed with your question.
Good evening everyone.
Good evening.
I know you've touched on earlier.
Earlier in the call on some of the new products with you folks on and working on that are coming out of China. There is the question of been regards of deep learning.
1 of the spend the biggest advantage of that's brought to the product portfolio.
Is the product cost of that.
Opening up new applications or.
So on higher throughput and your customer facilities in the average you characterize firm.
Yes.
I think we've all gone through this experience, where you bought a new smartphone and you put a <unk>.
Put a cover of Scratchproof cover on it that you kind of have to try to take down the impress down trying to align the line of that the edge of that with the edge of the phone itself is an example of sort of the sort of thing that we are doing in our own lives right lots of that is happening in manufacturing where different different substrates of being alive.
And there are different lines that has to be worked together on a problem can be you can misconstrue, 1 piece of the material with another on line the wrong pieces up or not find the right line 2 to align together. So that's an example, where deep learning is extremely powerful and Blue States vision tools haven't really been able to do that kind of.
The type of application.
That's the go on with many different applications like that where sometimes deep learning is just a far superior technology and we're seeing it get adopted more and more but generally we are selling those tools.
The capabilities for a premium.
In the space that really haven't been served by machine vision or served well in the past.
That's super interesting. Thank you I'll pass it on.
Our next question comes from the line of Josh for Goldman <unk> with Morgan Stanley. You May proceed with your question.
Hi, good evening guys.
Hi, Josh.
Can you just talk a little bit about the the drivers of the sequential increase I think Paul you might have mentioned the debt.
Kind of a new pilot customer on logistics as a fairly chunky shipment in <unk> and net debt.
Sort of the dissipates and <unk> I think that within the context of the gross margin but.
How important is that in terms of the driver.
Because you guys are coming off of a pretty solid quarter. You said, you can add a little bit of pull forward in electronics.
I heard you right.
The reduced pretty big step up so just trying to figure out where that incremental.
The bump comes from.
Yeah. So so.
So from a Q2 to Q3 sequential drivers.
The biggest would be consumer electronics, so even though we recognized more revenue in consumer electronics in the second quarter.
We still have a step of Q3 is historically the largest quarter for consumer electronics.
Last year, it was dramatically higher given kind of delays with COVID-19. This year looks a little more regular but that's a that's a nice step up.
Logistics is a modest contributor as again, we're coming off.
The deal some record quarters in a row, but it is we do expect to do a little more revenue on logistics in Q3 for those of the 2 major factors.
Got it and then I guess just sticking with logistics.
I think some of the big integrators out there kind of talking about maybe the near term plateau of activity just because the industry is so busy and theres been so much demand over the past 18 months debt.
Really the the physical integration of sort of running in the bottlenecks.
You guys would expect where sort of the growth rates here over maybe the next several quarters are a little bit more modest just as a function of.
Kind of getting the pig through the Python on some of these bigger projects.
Well I think what Youre talking about is real and certain parts of the industry I think in big E Commerce deployments.
The perhaps in packaging.
Fossil and package delivery and Thats true.
So I think.
We see and I imagine they see a big backlog that they've kind of digest. The tank if you like in the Python, but thats still has the lung later on in terms of potential revenue coming through into the P&L.
We also see I think starting to accelerate that gives us a lot of enthusiasm or other smaller customers coming back to the table, particularly in brick and mortar.
Activities, and then also actually airport baggage handling and it's starting to pick up so I would say.
We might see some of those big deployment kind of have to take a while to work through but we are seeing other markets coming in the have the potential to compensate as we go for it in time over the medium term.
Got it good color thanks, Rob Thanks, Paul.
Our next question comes from the line of Rob Mason with Baird. You May proceed with your question.
Yes, good evening.
I wanted to ask.
Wanted to ask about the automotive growth that youre seeing right now.
And maybe just to put it in a little bit better context, certainly it's.
12 months ago, you, probably would not of expected to be reporting of all time record automotive quarter, but maybe just speak to the mix of debt business today in terms of where it's going.
Round traditional platforms versus the <unk> investment.
And then also just maybe speak to the intermediate term.
Along those same lines I know, it's easy enough to suggest that EV investment may be growing faster as we go forward, but just what are the prospects today.
Around some of the traditional platforms.
Yes.
Given that new model changes often.
Drive demand for your products and there will be those so.
If you could just speak to that.
Again in the context of where we sit today with the.
Kind of this record record quarter in automotive.
Sure. So automotive was our fastest growing major end market in the second quarter and Youre absolutely right I think when we came into the year. We didn't really expect to see this kind of recovery in automotive until the second half, but we did expect to see it coming back perhaps not the strongly in this quickly.
We experienced the fastest growth in Asia, particularly in China with global activity for automotive fish, a shifting due to the concentration of CEB part suppliers.
Of course, EV battery manufacturing is certainly on driving a lot of a lot of growth and then and then the the execution of the projects more generally and all the new kind of technology.
Technology that requires whether it's inside the vehicle or outside certainly on <unk>.
Drivers of automotive revenue from the Americas and Europe.
Also.
Good growth drivers in the second quarter, and I would say chip shortages and the related plant shutdowns don't appear to be reducing demand for Robert and automotive currently.
So.
The industry is becoming more sophisticated with new players and a lot of new innovation coming into the market. So certainly we're seeing <unk>.
Customers, who havent been the traditional <unk>.
Large customers in automotive for Cognex.
3 of 5 years ago, now now being much larger.
Users of our vision.
And our technology and then we also think the long term potential for Cognex Cognex in automotive includes applying deep learning for inspection and the increasing use of electronics and vehicles. So these are all driving it I think also what youre getting on.
Certainly as seen on becoming a larger and larger part.
Very significant growth, that's obviously the fastest growing kind of general trend in the in the industry, but it still is.
Still less than 50% of our automotive revenue for sure is that is <unk> related.
I see okay.
Just 1 quick question around expenses that your operating expenses that you guided higher it does sound like Theres also.
Between new products and some of the projects that youre working on.
Yes.
That helps elevate it but would.
Would you typically you are.
Expenses also go up a little bit in the fourth quarter from the third given those dynamics that you have going on in the third would you still expect that to be the case this year.
I would say not sure yet.
We'd like to stick to kind of of 1.1 quarter ahead with our guidance.
A couple of factors.
We had a good year last year and we are having.
Here this year I would say again, it's kind of our own metrics. So.
And the second half of last year was stronger so there is an element of.
More of our incentive compensation was back loaded last year than this year. So I think there'll be some impact of that but speculating on kind of sequential growth rates from Q3 to Q4, we're not prepared to do at this time.
Sure Okay.
Thank you.
Okay.
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While we poll for questions.
Our next question comes from the line of Andrew Buscaglia on with Bahrenburg. You May proceed with your question.
Anything on it.
Hello.
Regarding consumer electronics.
You kind of reiterated that it'll be down this year the cell.
Do you feel better or worse about that market than you did last quarter or is it are the kind of of the same.
I think in general the same right I think.
We recognize that this is a market that has.
Cycles and trends in the bigger years in <unk> and I think we.
It's coming together much as we expected and as we told you last quarter.
Okay on a real change there.
Out of the checking on given the.
Ponant shortages and all of that.
On.
And.
A question I had around.
So quarter of yourselves.
The call it.
You got it seemed like chronic down.
Slightly automotive doing well logistics is probably the best segment right now, but you still got a.
The quarter of your sales that when you kind of do the math on all of the year shaking out must be doing pretty well like a bunch of like kind of a hodgepodge.
Areas.
Can you talk more about like kind of like the non of the <unk>.
The other you don't really talking on about that quarter of your market seem to be doing really well on what is what is really driving that or what areas are driving that.
It's really very very broad based I mean, when we when we look across our end user markets I mean, so many of them are growing.
In excess of 30%.
And.
The 70 medical related I mentioned them early in my opening remarks.
Is the medical related pharmaceuticals.
Food and beverage.
The semiconductor right. So just really just general broad based.
The investment in <unk>.
I think it does.
Seeing very strong demand for machine vision on a on a broad basis and I think I think it has to do with a lot of the trends we've been talking about for a long time and in some ways. Some of them are being accelerated by the big changes, we're seeing in the global economy.
Challenges customers are seeing about labor labor shortages and.
The need to get more productivity going and just I think of great environment for investment. So I think those mean that we're seeing very broad based.
<unk> also talked about industry for now and I think the interest that pretty much any.
Serious manufacturer of discrete products has these days is they really want to use the digital data.
On their businesses to manage it more effectively and the.
And more securely and and I think certainly vision of these playing strongly into that.
Yes, okay.
And maybe lastly, the new product you talk about.
Are you already seeing that impact your revenue there.
I'm talking about the AI deep learning stuff.
Is that already implementing or yourselves today or is that kind of that more in 2022.
Although it's a very it's a very recent launch.
And a lot of work probably a 3 year journey.
The sit for some of it but it's been a pretty major product release. So we were already working with major customers on its deployment, but generally the uses of those products are going to be Oems.
More sophisticated cash.
Customers. So I wouldn't expect to see major revenue contribution from that product probably until some quarters out.
But then.
It's the source of major competitive advantage for us the.
The product vision pro that we talked about this is the 10th for lease it's a very major release the product itself. The 20 years old. So it's the most established on vision software platform in industrial manufacturing. So many users the trained on it of know how to use it and we're giving them a lot of more power.
For the tools and a lot of.
Better user capabilities, but generally it's a very sophisticated product and it tends to be deployed over quite some period.
Yes, I think the.
The board again deep learning is accretive to our growth rate both sequentially and on a year on year basis.
And it's probably more of the products, we launched last year that instead of the biggest contribution to that right. The day 900 and vision for deep learning Juan Pablo.
Seeing meaningful uptake of those products are now excited to watch video part of deferring to point out.
Alright, Thank you both.
Our next question comes from the line of Jairam, Nathan with Daiwa Capital markets. You May proceed with your question.
Hi, Thanks for taking my question I just don't.
Wondering if kind of the gives really put on autos from what I understood I understood.
Cognex is stronger.
The stronger percentage with the suppliers tier 1 suppliers.
Then the Oems I'm, just wondering with Evs and the Oems, taking a bigger interest in the battery manufacturing are you seeing a change.
In your exposure within the number to us and I just kind of on more.
But the really it's early in the <unk> question I observed the same things going on that Youre, describing I think historically and if we go back over the last few years certainly about 2 thirds of our automotive business was the component suppliers tier 1 automotive and perhaps the third was with what you described as the Oems with the brand.
The big brands, we will get into and drive around in.
And that's debt.
And certainly we're seeing of potential trend, where that's going to be shaken up and you can see some of the big brands.
We are intending to have more of the component part of the business and the technology part inside therefore walls and less outsourced to big tier 1 partners that trend is going on but then there's kind of a countervailing thing, which is do you have strong technology players, particularly in the battery manufacturing area, who.
Really have outstanding technology that I think it's not it's going to be very difficult for those brands.
Brands the Oems too.
<unk>. So definitely it is kind of shaking up and then as I would say also there's a lot of electronics going into the into cars. So I think we're going to see some really interesting things happen in that space, where traditionally companies, we thought of as consumer electronics brands, we're probably going to see more and more of their types of technology.
It being a bigger part of the bill of materials of the.
Because of automotive so really exciting what the good news is I think cognex is really well positioned with all of those groups and really well recognized.
So I think we'll be pretty well as that industry shakes out but in the end more dollars to the brand owners versus the suppliers of the hard coal I would say.
Okay and another question was on the.
Growth outside of Asia, you mentioned semiconductors, and the and I was wondering are you seeing.
Any.
Is that driven by.
For some of the semiconductor manufacturing kind of.
Expanding out of China.
Diversifying out of China.
Well.
Well, it's a small part of Cognex is overall business is now in semi certainly less less than 10% in recent years of around 5 or so.
And so I think we have to put it in context, but we are seeing very strong demand in those markets and I think it's really I consider it pretty tied to what we're reading about the.
The shortage of semiconductor of capacity in the investment that's going on in the new as always the new semiconductor technologies that are moving through and into production. So certainly we are seeing very strong demand.
As those companies or invest.
In that area.
And then for the last 1 if I may.
We are hearing about COVID-19 restrictions in Malaysia, hurting chips of life and I just wanted to.
I think you of subcontractors are based out of Indonesia, but.
How do you kind of handicap the risk of.
Of the more extended lockdown in Indonesia or something.
So you're right we have our largest.
Subcontract partner he does a lot of the manufacturing of our.
Our products.
It is based on a small island just on Singapore in the country of Indonesia.
It's a very well managed free trade zone, which has significant connections the Singapore.
We're seeing on that situation with Covid being very well managed in that area of both by debt free trade zone and by our supplier very high rates of the vaccination and testing among employees and we haven't experienced significant supply chain challenges and we're feeling very confident about the way, it's being managed but of the.
Of course.
Any supply chain at the moment.
At risk from from changes that go on but right now none of good news to report on that.
And in terms of the availability of chips on.
So that's the situation we're monitoring very closely.
We're buying aggressively secure component parts, it's part of what's reflected on our gross margin guidance.
Monitoring that situation, but overall feel like were kind of continue to manage through this pretty well.
Perfect. Thank you.
As a reminder, if you would like to ask the question. Please press star 1 on your telephone keypad.
The following poll for questions.
Our next question comes from the line of Joe Giordano with Cowen You May proceed with your question.
Hey, Thanks for let me end of the follow up here just a quick 1.
It's always the look at your entire TT vision deeper in the portfolio now at 5900 per 1 point out how.
How big is that as a percentage of sales roughly on an annual.
The basis and like what would be like a good time.
Whats like an internal target for 5 years from now as the percentage of sales basis like how big of net deeper you guys debt if things go according to your runway.
Yes, finishing question I don't want to be too specific about that from the for.
For competitive reasons.
It's.
It's still less than 10% of our overall business.
And we.
We aspired of growing at close to a 100% per year. That's the stretch goal of aggressive for cognex, but certainly we really think it has that kind of potential and we're seeing very strong growth continuing last year this year and the demand for it as we look out.
That's helpful. Thank you guys.
Ladies and gentlemen, we have reached the end of today's question and answer session I would like to turn this call back over to Mr. Rob Willett for closing remarks.
Thank you so much and to wrap up Cognex had an outstanding first half of 2021, we see a lot of opportunities where we can apply our core technology and we're excited about the long term potential for our business. Thank you for joining US Tonight, we look forward to speaking with you again on next quarters.
Cool.
Thank you for joining US today. This concludes today's conference you may disconnect. Your lines at this time enjoy the rest of your evening.
[noise] [music].
Okay.
Okay.