Q2 2021 Ribbon Communications Inc Earnings Call
[music].
Greetings and welcome to.
Communications second quarter, 2020, 1 financial results conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please.
Note. This conference call is being recorded I will now turn the conference over to Tom Barry Investor Relations for Ribbon Communications. Thank you you may begin.
Good afternoon, and welcome to ribbon second quarter 2021 financial results conference call on him.
<unk> Investor relations of ribbon.
Communications also on the call today will be Bruce Mcclelland revenue as Chief Executive Officer, and Mick Lopez Ribbon as Chief Financial Officer, today's call is being webcast live and will be archived on the Investor Relations section of our website at ribbon Communications Dot Com, where both our press release and our supplemental slides are currently available.
Certain matters, we will be discussing today, including the business outlook and financial projections for the third quarter of 2021 full year 2021 and beyond are forward looking statements.
Such statements are subject to the risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
These risks and uncertainties are discussed in our dock.
So rob with the SEC, including our most recent form 10-K and form 10-Q.
I refer you to our Safe Harbor statement included on slide 2 of the supplemental slides for this conference call.
In addition, we will present non-GAAP financial information on this call reconcile.
Reconciliations to the applicable GAAP measures are included in the earnings press release, we.
<unk> this afternoon as well as in our supplemental slides for this conference call, which again are both available on the Investor Relations section of our website.
As we previously noted we completed our acquisition of ACI Telecom on March 3.2020 and completed the sale of Kenny Communications on December 1.2020 further in the fourth.
Quarter of 2020, we began segment reporting for our cloud and edge and IP optical networks businesses. These items impact comparisons to prior periods and now I'd like to turn the call over to Bruce Bruce.
Great. Thanks, Tom Good afternoon, everyone and thank you for joining us today to discuss our second quarter 2021 results on our outlook for the.
We issued this year.
We had a strong second quarter from a profitability perspective, with both adjusted EBITDA and non-GAAP earnings per share well above our guidance ranges and we had good cash generation.
Revenue in the quarter was negatively impacted by the Covid situation in India and to a lesser degree supply.
Chain challenges.
That said for the first 6 months of the year, we achieved 10% year over year revenue growth adjust.
Adjusted EBITDA is up 60% and non-GAAP earnings per share is up 133% as we continued to benefit from stronger product margins and disciplined expense management.
Okay.
And our IP optical segment sales in the quarter grew 10% year over year.
Our strategy to increase our presence in North America is really starting to take shape with revenue in the first half exceeding all of 2020 for this important region.
We had a very exciting announcement earlier this week with Rogers Communications.
A leading diversified communications and media service provider in Canada.
We were selected by Rogers to upgrade their national optical transport network, leveraging our new DW DM 400 gig ZR plus platform for both metro and long haul applications.
We were the first to market with this new technology and had initially.
Mishel shipments to a customer in Latin America in the quarter as planned.
Rogers will also deploy our amuse SDN in Orchestrator to design and analyze their optical network automate the creation of new services and ensure the network is running at peak efficiency.
We also had significant new customer wins outside.
North America with Singtel in Singapore, and Optus in Australia.
At <unk>, we were awarded a portion of their DW DM backhaul network supporting growing demand from their mobile fixed and enterprise networks.
At <unk>, we were awarded a new program focused on increasing access and Metro DW DM.
On capacity to support mobile backhaul and the interconnection points with Australia's National broadband network.
After us and Rogers are great examples of our cross sell strategy leveraging the strong foundation built by ribbon to gain access to and grow our share of the large IP optical addressable market.
In addition, we added 12, new IP optical customers to our roster in the second quarter, including <unk> in France for data Center interconnect the Tombigbee electric cooperative in Alabama, which is expected to leverage <unk> funding. Once it's released as well as a significant win with a U S wireless provider.
To replace an existing Huawei DW Dms system.
Our emphasis on open interoperable networks is really resonating with customers and new technologies, such as 400 gig ZR plus combined with our cloud native orchestration platform are a winning combination.
And our cloud and edge business sales.
We're very consistent with the second quarter last year after adjusting for the candy sales.
Gross margins were strong and when combined with a 14% reduction in our non-GAAP operating expenses adjusted EBITDA increased 16% compared to the second quarter of 2020.
Demand for our network transformation solutions.
Particularly strong this quarter across all regions led by 16% year over year growth in our sauce, which in media gateway products.
Our new Virtualized platforms are really the solution of choice for many operators modernizing their voice networks.
Session border controllers sales in the quarter were.
With <unk> with the first quarter, but down from the second quarter last year.
Our large enterprise customers added significant SPC capacity during the height of Covid in 2020, and we expect further growth later this year.
We've begun to see a recovery in enterprise edge demand as businesses began returning to the office.
And we've had several new important wins with our ribbon connect SBC as a service platform, including adoption by several of our service provider customers to support Microsoft teams deployments.
Our advanced applications team had a busy first half.
By the end of the second quarter, we had implemented robo, calling mitigation services.
At 40 carriers in the U S, including the deployment of stir shaken at Verizon.
The sense of urgency definitely increased as we approach the June FCC deadlines for carriers to implement solutions to prevent rampant nuisance, calling and we're starting to see demand for our Cold Trust solutions in other countries.
And.
As in our reoccurring revenue maintenance business.
Another strong bookings quarter and continue to maintain a very high renewal rate with bookings for the year now over 90% complete.
I'll now turn it over to Mick to provide additional detail on our results for the quarter and I'll come back on to review our guidance and provide additional details on our plan for the remainder.
And find 21.
Thanks.
As Bruce stated we were pleased with our performance from a profitability perspective in the quarter, we generated $43 million and adjusted EBITDA and 17 cents and non-GAAP diluted earnings per share each well above the guidance range. We provided in the first quarter earnings call while revenue came.
There are 20 likely below expectations, we were able to compensate with robust gross margins and continued expense management to substantially improve our profitability and cash generation as always please refer to our Investor Relations web site for supplemental slides with graphs on table summarizing our second quarter 2021, and historical financial performance, let's start with.
Came in stereo of our GAAP results for the quarter. Our GAAP results. This quarter included a $2.8 million gain on the sale of our quality business, which closed during the quarter as we had mentioned in our earnings call on February <unk>, a small product compliance and reliability testing business that was part of ACI. When we acquired them. Our GAAP results also had.
Comments million noncash gain associated with the quarterly mark to market of the company's <unk> investment from the sale of our Candy Communications business last year. Additionally, we received $1.2 million and paid in kind interest income earned on the convertible debt from the same transaction for a net positive impact to GAAP net.
At $12.13 million or <unk> <unk> per share for a BCP, including the gain from the <unk> sales the impact of $16 million to GAAP net income and <unk> 10 per share as we have mentioned in the past fluctuations in <unk> stock price affect our other income and expense line as we mark to market our investment.
Income to this volatility we have excluded these items from our non-GAAP results other factors contributing to the difference between our GAAP and non-GAAP results for the quarter include $3 million in restructuring expenses related mostly to continued downsizing of our real estate footprint and $1 million in integration expenses and the usual adjustments.
For amortization of intangible assets and non cash compensation.
On an adjusted non-GAAP basis second quarter 2021 results were as follows total revenue was $211 million up 2% organic year over year when adjusted for the sale of Candy non-GAAP gross margin was 60.
Due to 1% in the second quarter of 'twenty, 1.2 percentage points above our gross margin in the second quarter of 2020 and above the 56% to 57% guided range due to favorable product and geographic mix.
Non-GAAP operating expenses were $90 million in the quarter due in part.
Part 2 continued expense management and some 1 time benefits. Excluding these 1 time adjustments operating expenditures would've been approximately $94 million for the quarter. We expect modest increases in operating expenses in the second half of the year as we continue to increase investment in IP optical.
<unk> 60, well as revenue based variable compensation.
Non-GAAP adjusted EBITDA was $43 million up from $30 million in the second quarter of 2020, due mainly to gross profit improvement driven by beneficial product and geographic mix.
Non-GAAP diluted earnings per share was <unk> 17 in the second.
Quarter of 2021 more than double the 8 we recorded in the second quarter of 2020.
Our diluted share count was 154 million for GAAP and non-GAAP earnings in the quarter now, let's turn to the results of our 2 business segments.
In our cloud and edge business second quarter revenue was 140.
$1 million down 1% on on an organic basis. We continued the trend of strong gross margins, increasing by 60 basis points on both a sequential and year over year basis non-GAAP adjusted EBITDA for cloud <unk> was $44 million up from $37 million in the second quarter of last year with an.
Industry, leading adjusted EBITDA margin of 31%.
The year over year change was driven by higher product gross margins, the candy sales restructuring savings and discretionary expense savings.
There are a few additional points on the cloud on edge performance in the quarter product revenue was $64 million.
While service revenue contributed $77 million, the majority of which comes from our strong reoccurring maintenance basis sorry.
Software accounted for 56% of total product revenue up 4 percentage points from the first quarter.
Now turning to our IP optical business, we reported second quarter revenue.
$70 million, an increase of 10% from the prior year period, we had strong margins at this revenue level with non-GAAP gross margin of 48% margins benefited from higher software sales and lower warranty costs expenses were lower by roughly $3 million as a result of several ones.
Onetime accounting adjustments or IP optical business generated a small adjusted EBITDA loss of roughly half a million dollars for the quarter.
Now here are some consolidated key metrics for the total company.
Maintenance revenue represented 34% of total revenue in the second quarter, increasing by approximately 4 million.
From the second quarter of 2020.
Service providers accounted for 78% of our revenue in the quarter and enterprise customers represented 22%.
International customers provided 52% of our total revenue in the second quarter in line with the second quarter of 2020.
Our book to revenue, which excludes.
Maintenance was 1.2 times for the second quarter.
Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $115 million, including $3 million in restricted cash. This is an increase of $6 million from the previous quarter due to improved profitability in the quarter or 100.
1 dollar revolver still remained undrawn once again, we comfortably met our quarterly financial covenants for our term loan our bank leverage ratio was 2.7 times, which is below the leverage threshold ratio of 225 times. This will reduce our interest rate margin per the terms.
<unk> million dollars credit facility by 50 basis points from 2.5% to 2% plus LIBOR for the following quarter.
From a cash perspective, the company generated $14 million on cash from operations in the quarter capital expenditures were $5 million for the quarter, which had a half million dollars.
<unk> of estate leasehold improvements, we're really proud of the team this quarter for another strong financial performance that delivered cash and earnings for our investors now I'd like to turn the call back to Bruce to discuss our outlook for the rest of the year.
Great. Thanks Mick.
Before discussing our guidance I'd like to provide some commentary on current trends in the market.
And the operating environment is.
It is very satisfying to see our strategy gained momentum as we establish ribbon as a significant contender in the IP optical networking space.
Wins like Rogers, Optus, Singtel and others already in the pipeline will create momentum for further share increases and significant revenue.
Growth in 2022 and beyond.
The 4 pillars of our strategy include.
Focusing on products and technology that are crucial to meeting the challenge.
<unk> exponential bandwidth growth in both fixed and mobile networks enabled by investments in 5 G edge networking and cloud enabled.
Obligations.
Competing in large addressable markets, such as optical and IP networking, where there are opportunities for significant share growth and a favorable competitive environment with the global pressure on Huawei and other Chinese suppliers.
Establishing ribbon as a provider of new disruptive technologies.
Such as 400 gig ZR, plus <unk> network, slicing and disaggregated IP networking to contrast, with incumbent legacy suppliers.
And leveraging the broader ribbon presence and trusted partner status with large and small service providers to gain share on our target addressable markets.
<unk>, there's also clearly an opportunity for us to gain more share of the higher growth enterprise unified communications market to that end, we have recently restructured our enterprise go to market team and created a dedicated organization focused on this mission.
We plan to expand both technology and product partnerships as well as channel and distribution.
Dubuque partners to address this opportunity more effectively.
We believe we have the strongest SBC portfolio in the industry and we want to see better results.
From a macro perspective, there are 2 significant issues that are impacting many companies in the technology and telecommunications industry.
First the recent research.
<unk> reagents in Covid cases in many regions is highly concerning and specifically our plans for growth that share in India are impacted.
Deployment rates in the second half of the second quarter dropped significantly with our key customers in the region.
And while we have seen some recovery in July we're not yet back to the levels. We saw earlier in the year.
<unk> certainly not back to pre COVID-19 levels.
As a result, I think it is prudent to adjust our expectations until it becomes more clear that the region has stabilized.
Demand for capacity remains strong and we're winning share but operationally the country is still struggling.
Secondly, availability of semiconductors and other components as big.
<unk> increasingly challenging in recent months, especially for core silicon or in our IP networking products.
While we have good mitigation strategies for supply disruptions in place, we don't anticipate the situation improving material this year limiting our ability to respond rapidly to changes in demand.
Despite.
Despite these near term macro issues the strength of our diversified portfolio was really highlighted this year we.
We have proven our ability to generate very strong earnings and improved profitability, even while revenue growth has been limited primarily by the situation in India.
For the full year, we are reaffirming our earnings.
With projections for higher gross margins and lower operating expenses.
The revenue target is more challenging to achieve without a significant recovery in India, and we're now anticipating revenue modestly below the previous guidance.
For the third quarter, our expectations are for revenue in.
On a range of $215 million to $225 million.
Non-GAAP gross margins of 57% to 58%.
Non-GAAP adjusted EBITDA of $32 million to $36 million.
And non-GAAP diluted earnings per share of 11% to 13.
Yes.
As I look further out into 2022, we have a growing number of tailwind as we begin to see the results from our new customer wins and the benefit of a broader global base.
We're in a great spot to grow share in a very large total addressable market and have a proven strategy that we plan to repeat.
I couldn't be more excited.
About our path ahead.
Operator that concludes our prepared remarks and now we can take a few questions.
Thank you Andy we'd like to ask a question. Please press star 1 on your telephone keypad.
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Our first question is from Dave Kang with B Riley. Please proceed.
Hi, yes. Thank you good afternoon.
First question is regarding.
A question on your concerns about macro issues how much revenue.
Was impacted in second quarter, and and what about third quarter revenue impact what would the guidance would have been.
If there were no component shortages as well as COVID-19 related mild.
<unk>.
Yeah, Hey, Dave Bruce here.
So in the second quarter, just to kind of give you a perspective, we've been running in India, our business in India in the $22 million to $24 million a quarter range.
And we did so I think something like $17 million in the second quarter, So and we'd expect a little.
Little bit of growth in the second quarter in India. So that's certainly kind of bounds.
The impact in the second quarter. Fortunately, we were we were able to.
Have a stronger mix in the quarter and resulted in.
Being able to achieve the earnings that we did.
<unk> expectations.
And I think that just shows that again kind of the power of the business model here and the diversification of the of the business.
We look into the second half of the year.
As I think I've mentioned in the remarks, I think it's prudent to be pretty cautious about the timing of recovery in deployment.
Ointment scaling in India at this point and so we're not anticipating a lot of growth off of that base, which really accounts for the <unk>.
Lower projection for the third quarter for the most part.
From a supply chain perspective.
As I mentioned.
It's not so much that it impacted a lot.
And in the second quarter, but it did impact how flexible we could.
Move to kind of shift, where we ship product and whatnot.
Have components for 1 product line, but not for another it's little more difficult just to react quickly so that was really.
The limit on being able to recover the revenue in the second quarter.
Our revenue and I think that.
That certainly plays into it as I think about guidance for the second half of the year and certainly for the third quarter, just being a little more prudent and cautious in the outlook there on.
Obviously, we're still expecting a pretty strong second half.
Particularly around the fourth quarter, we've got a.
<unk> strong funnel of opportunities and expect to 2 finished pretty strong for the year.
Got it just on.
Regarding your second half outlook, if I back out the first 3 quarters.
Youre, implying fourth quarter revenue of about $276 million. So that's about 55.
We're really sticking to $6 million sequentially increase I mean, that's a pretty big.
Sequential uptake from third to fourth quarter are you are you expecting debt most of that growth.
Come from from optical and if that's the case, then should we be more conservative or conservative with gross margin assumptions or maybe I'm wrong.
I expect to see I need to drive that net growth.
Yes.
Your math is about right, it's about 10% growth or a little more off of the fourth quarter of last year, and it's really a number of things, it's really strength across both businesses. We expect a variety of critical infrastructure projects in.
Europe to come to fruition in the fourth quarter.
We're expecting more business.
In our Israel business with the IDF as the new government has been formed and budgets come to fruition.
We expect a stronger enterprise spending and I commented on enterprise being down in the <unk>.
And capacity being utilized by some of our largest our larger customers in enterprise. So we expect that to increase.
We have a variety of what we call network modernization programs, which are 6 to 9 months in duration that come to completion and.
<unk> <unk> revenue towards the end of the year and in India.
We were expecting a little more business as the year progresses, but not dramatically. So it's really a variety of different things that that kind of come to fruition in the second half of the year.
Got it thank you.
Thanks, Dave.
Our next question is from Covid.
With Cowen <unk> Company. Please proceed.
Thanks for taking my questions Bruce These Windsor Rogers.
So in particular.
Can you give us any sense, though the revenue opportunity associated with them over what period of time.
We can right, so I'm, a little cautious in being able to share.
A lot more detail than we had in particular as a press release with Rogers, obviously, it's pretty significant for us.
<unk>.
Just a major step forward in our strategy here with these wins these are big deals for us.
I don't expect.
A significant amount of revenue in 'twenty, 1 I think we will probably see some towards the end of the year, but these are material in size and multiyear in duration.
And obviously, a pretty competitive process to win these so.
It really really proud of the team's work there and excited about partnering with these customers.
And I assume your comment applies to each 1 individually, but each 1 on screen.
That's correct are they all are they all on the.
Same vicinity insides.
1 without I understand which goes from conferences, but as 1, particularly larger than the others or they're all they're all about the same size yes.
Yes, I think Roger.
<unk> footprint is certainly larger than the number of connections both mobile and fixed is pretty significant.
And of course, theyre going through their own merger with with shore up in Canada. So that'll just scaled the footprint there.
So I think that's probably the largest.
And again without asking you to be Trucost competences is there reasonable margins associated with these deals or did you have to do meaningful discounts in order to get into.
Yes, so I think it was a competitive process and what theyre looking at obviously beyond the technology and the product and everything.
Thing is ultimately multi year total cost of ownership and in particular with the both Rogers and an office. These are existing ribbon customers that we do considerable business with on the rest of the portfolio and so I'm looking at this from a an account profitability perspective, and I can just.
These are all good good businesses force.
So we're not going to as they rollout we're not going to be hearing you on Vic talk about your margins that you meaningful debt because of the rollout of these big deals.
Well, it's going to be blended in with everything else and on that's about the only color I can provide you at this point on that.
Tell you though.
Let me move on with respect to India.
1 particular project that you are expecting not to happen or is it more broad because if I heard you correctly that you expect year on year revenue go to zero.
Putting down projects sites, not allowing you and other vendors in and.
No revenue to be had.
It sounds like Youre expecting at least 17 million you did in the quarter to quarterly run rate if not more so what.
What informs how broad in terms of COVID-19 impacting the ability for you to get your equipment into the sites, which I assume is the issue.
Unless there is some.
Some other issue, but above and beyond that.
Yeah, that's correct and and.
I described a couple of times in the past, we have a pretty extensive professional service team throughout the region.
And are are pretty deeply involved with the actual deployment and management of the products as they go into the network.
And so we do get good visibility on the actual deployment rate on a daily on a weekly basis and what we saw in the second half of the second quarter as we got into late May timeframe. The daily deployment volumes went down I mean, it's just got so difficult to move around the country.
And I know I know, we had a bit of a discussion.
Discussion on this.
The earnings call back in in late April early May and.
Things changed a lot in the 4 or 5 weeks.
So what we saw was that the deployment rate go down considerably. It Didnt go to zero, but it was close to zero for several weeks.
What we've seen in July is.
Coverage not back to the full level of it was earlier in the year, but certainly better than what it was for a few weeks there and so we again, we get we get good consumption visibility and so we were able to anticipate demand. We've received additional orders in July so certainly it's not going.
As the Regal, but.
As you know I anticipated this business not only.
Being steady, but increasing as the year progressed as as Covid started to wind down and spending started to increase in the year and so on being a little more cautious at this point obviously.
Bruce from scratch.
Zero.
Shutting down on all sides not all customers are sitting on all sides.
Nor are they giving free and open access otherwise you won't be talking talking about your revenue at this run rate. So what exactly are they doing there, allowing access to some sites, but not others.
<unk> the number of.
Staff.
That's my head get access what is the limiting factor.
I think the way to think of it as everything just takes longer.
You know being able to navigate to get site access to get approvals.
Some of these are construction program. So it's just everything just takes longer and so your velocity is down from where it was and again.
Dragging on.
Because we were able to see this almost on an hour by hour basis, we get we get a good view on what's happening there and so it's like you just said it's not zero on.
It's.
But it's not back to even where it was earlier this year, yet and and I don't I don't yet know what the timing is on exact.
Our fast that recovers in what happens in the country, It's a <unk>.
<unk> seen all the news, it's been a difficult environment for the last 2 or 3 months there.
Understood..1 last question if I may.
Putting aside the men measured by revenue looking forward metrics in particular, rfps or was our Qs.
How would you characterize demand.
<unk> on.
Opportunities in your optical business.
Yeah, I would say, it's pretty similar to late last year earlier. This year, you know where I commented on it being being pretty intensive.
Uh huh.
How that continues obviously, we're now having some success out of the back end of that pipeline, which is fantastic and I die.
Bruce.
We are having technical difficulties.
Switch to the backup line please.
I think look backup line.
The speakers please switch to your backup line.
Just 1 moment please.
Oh.
Hello.
Bruce.
Okay.
Yes. Thank you for such aim to the backup line. Please proceed.
Yeah, sorry about that Paul.
No worries. So I apologize you were about to say what the activity was like when you cut out.
I'm, sorry, if you've got a couple of issues here today.
I think the activity say in the last 2 months has been pretty similar to what we saw earlier this year when I commented on it being pretty intensive I think there's just a day a pretty significant engagement and a variety of areas. Obviously some of these new.
New wins drive even more activity.
We're getting a lot of work going on to support these new customers and get them into deployment.
And when we go through an intensive RFP process like some of the ones. We've now been successful on.
1 of the key things at the backend of that process.
It's a pretty extensive channel check you know, where they're going and talking to all of our you know as many references we can provide them and so these new wins become really really important references in these regions to leverage going forward.
Got it I'll pass it on I appreciate the responses. Thank you.
Thanks, so much Paul.
And our final question is from Mike Latimore with Northland Capital markets. Please proceed.
Yeah. Thanks.
Great great profitability and a great way of routers are.
In terms of the it sounds like Bruce Theres, no real change in your cloud and edge outlook. This area.
Or is it that that's pretty much tracking as expected.
You know the 1 piece that I know, we can do better on still Mike [laughter], which I've, probably said multiple times is around the enterprise side of that business. The service provider portion of our business is doing really really well and you can see that in some of the numbers. So when.
That tends to go through it.
What we've seen in enterprise is several of our larger accounts, you know financial institutions et cetera that took on a lot of additional capacity last year, you know its taking some time for that to be absorbed them for them to need more capacity and so that portion of our business in the second quarter and even in our third quarter outlook is.
You get a chance down year over year.
That will certainly come back as more capacity is needed theory that we continue to need to do better is around the mid market enterprise and as I mentioned in the in the remarks, we've done some restructuring our sales to get more focused on channels channel enablement, you know, we've got a great portfolio.
<unk> launched the new as a service package.
And so there's just there's a variety of different ways to deploy the product we've got to get a little better on how we serve that part of the market and you know I know, we can do better and we're probably not where I want to be at this point.
Okay.
When he talked about in terms of the fourth.
We there might be some of the network monitor modernization deals getting completed.
What type of revenue did you recognize that's apart from our software revenue on those get completed that you'd recognize.
Well, they they end up being a combination of software and hardware, but as you've seen with our margins even when.
Corner, the word mixes higher where we're generating good margins on the way, we've we've now price platforms, though.
Typically these modernization projects, where youre going into a central office and you're you know you're upgrading a class for class 5 switching complex to next generation Virtualized platforms, even if we're providing.
Our heartbeat platform that the software is running on these are these are good margins and typically there's a pretty sizable professional service element that comes with that as well and you know some of that east Europe, you're realizing the expense throughout the year and then the revenue gets recognized in some cases, so that can help out on.
Margins as well.
Yeah, and then just last 1 you had mentioned a.
Huawei replacement with a U S wireless provider with or without a tier 1 kind of wireless provider or smart no. It's smaller than that I, probably would've showed it louder if it was a tier 1.
It's a meaningful size.
Our wireless operator, obviously had leveraged Huawei infrastructure that was it was a pretty meaningful win for us and it's a great example of of.
The power of the platform the competitive competitiveness of the solution that we're bringing to market here.
Hmm okay. Thank.
Thank you.
Great. Thanks, Mike.
We have reached the end of our question and answer session I would like to turn the conference back over to management for closing remarks.
Yeah. Thank you well you know as I mentioned in the in the remarks, we've got some real tailwind to the business here and these new customer wins are pretty significant for the company I really feel like we're in.
On a in a great spot and the strategy is really starting to work. So really excited about the path ahead look forward to connecting with many of you at our upcoming virtual investor conferences, and keeping you apprised of our progress without operator. Thank you that concludes our call.
Thank you you may disconnect your lines at this.
This time and thank you for your participation.