Q3 2021 Silicom Ltd Earnings Call
Both SD Wan and <unk>.
Fuji Overend players. An example was the recent key win with one of the world's largest networking equipment providers, which we expect to become one of silicones largest ever customers.
This customer selected a version of our platform, which was customized for their branded SD Wan solution. They choose our solution due to the degree to which we demonstrated increased flexibility control and networking power to their end users disaggregated networks.
This key win confirms the added value our products and platforms bring to SD Wan networks of all architectures, both traditional as well as decoupled and disaggregated.
Our growth in gas the one space, which began with branded solutions and then move to the decoupled and disaggregated market has now come full circle with our demonstrated leadership in that space and has led to desktop networking companies selecting our solutions for its branded networks, we have already received.
<unk> initial purchase orders with clear plans to ramp quantities.
The leadership that we have established in the SD Wan space in both branded and Disaggregated markets continues to bring us a steady stream of design wins.
Beyond this key design win and with the continuous market growth there were other new customers and design wins that we did not announce announce broadly we continue to see a good conversion rate of our long deep and healthy pipeline into new design wins in the SD Wan market segment and the accumulation of.
Such wins is fueling our growth.
In parallel to our success in the SD Wan space, while at an earlier stage of development. We are seeing the positive developments in the overall market dragged a similar path the market share the technology technological trends of shifting towards disaggregation of decoupling and then also <unk>.
For a similar type of customer for example, telcos and service providers that we already have strong relationships with and in many cases existing SD Wan design wins with <unk>.
The overall concept enables stelco and mobile operators to decouple, a key network components, including radio units distribution unit and central units, enabling best of breed and standardized components from diverse vendors, which can be combined into networks for superior performance. This approach.
He is driving innovation and importantly, reducing network cost significantly for operators.
Because of the benefits operators are increasingly adopting <unk> standards and the new <unk> and <unk> infrastructure deployments. We believe overrun is only at the beginning of its growth cycle and is quickly gaining momentum.
Our early pacing winning design wins in Oregon has been at a higher level that it was in the early days of SD Wan. This makes us very optimistic about achieving our goal in the Oregon market.
Similar to the success, we have already experienced in <unk> and SD Wan, we aim to replicate and hopefully supersede that in aura.
We have already gained initial OLED revenues most of the significant potentially still ahead of us when mass deployment start.
With our already achieved wins in this space and with the traction that we see for all our products in this market. We believe that our solutions will become significant enablers for oren use and consequently will generate significant revenues as we move forward.
Our belief is that all run as well as SD Wan will be significant growth contributors to silicon over the coming years.
As I did last quarter before moving onto our guidance I wanted to update you on our experiences facing the global shortage of electronic components and materials, which has been intensifying since early 2021 and will probably be with us at least.
Until the end of 2022.
Similar to all of our peers, we continued to experience these component shortages across all of our suppliers, including our major vendors and this is an increasingly challenging issue for us as well as everyone in the industry.
We are experiencing extremely long lead time for many components as well as decommit scenarios by many of our vendors, which need to delay the deliveries to us due to unexpected delays in their manufacturing process and in many cases, we even see vendors terminating the production of components entirely.
And that even happens with components for which there are no replacement in the market and we consider this challenge is our highest priority these days.
To mitigate these risks we are taking a broad array of action action items.
We continuously escalate any situation with our vendors pushing to get partners earliest possible explaining why our pod in their allocations should be more significant.
We leverage our financial strength by any available stock of components. Both from the vendors ended the free market, sometimes paying more for these components in order to expedite delivery.
We are working with our customers to replace product the delivery of which is challenging with other product. We are implementing redesigns due some products to achieve optimize availability and obviously when we design new product. Our first first criteria is for component availability.
<unk>.
Okay.
To date, we've been successfully meeting our growth target, even despite the challenging environment I want to add that based on the strong demand for our products with no component shortages, we could have easily superseded our initial expectations and demonstrated even higher growth in 2021.
Moving forward, while we predict that the difficulties in the market will even intensify at least for the course of 2022, we believe that the significant increase in demand for our products, which is happening at a rate which is higher than what we originally thought as well as the many actions were taken in order to overcome this.
Shortages will once again help us to maintain high growth rates rates over the coming years.
Of course, we will keep you updated on the issue.
I would like to now discuss our guidance for the fourth quarter of 2021, we continue to expect revenues at between $34 million and $36 million, which at the midpoint represents 2021 growth of approximately 18% over that of 2000.
20 <unk>.
Looking more broadly we expect that the coming new year's for Silicon will see performance ahead of what we've achieved over the past few years and that we will continue to achieve ongoing revenue growth at a double digit compound annual growth rate for several years ahead.
In summary, our momentum is strong we continue to bring important design wins, which position us exceptionally well for building on our growth in the coming quarters. In fact, given the scale of our recent design wins the future potential even starting from 2020 due is greater.
What we have traditionally experience, we see a sustained long term revenue growth path as we cement and broaden our relationship with with some of the world's largest companies.
More broadly our long and growing list of design wins generating ongoing orders, our solid baseline of Dvds and strong market fundamentals with our focus in some of the fastest growing markets in the networking space as well as our current long and deep pipeline makes us ever more optimist.
<unk>.
With that I will now hand over the call to run for a detailed review of the quarter's results around please go ahead.
Yeah.
Thank you Sharon and Hello, everyone.
Revenues for the third quarter of 2021 were $32 9 million Donald's Dcs a year over year increase of 16% compared with revenues of $28 4 million.
Reported in the third quarter of last year.
Our geographical revenue breakdown over the last 12 months.
Theres photos North America, 65%.
<unk>, 29% far east and rest of the world 6%.
During the last 12 months, our top three customers together accounted for about 35% of our revenues.
I will be presenting the rest of the financial results on a non-GAAP basis, which excludes the noncash compensation expenses in respect of options and <unk> granted to directors officers and employees acquisition related adjustments as well as lease liabilities.
<unk> expenses.
For the full reconciliation from GAAP to non-GAAP numbers. Please refer to the press release, we issued earlier today.
Gross profit for the third quarter of 2021 was $11 $3 million, representing a gross margin of 34, 3% in the middle of the range of our gross profit guidance of 32% to 36%.
Compared to a gross profit of $9 4 million.
Gross margin of 33, 3% in the third quarter with 2020.
<unk> in the gross margin is a function of the specific product mix sold in the quarter.
Operating expenses in the quarter in the third quarter of 2021 were $7 1 million.
An increase compared with $6 3 million in the third quarter of 2020, most of the increase compared to last year is R&D related and as we discussed last quarter has been planned and represents our continued significant investment in developing new.
IP and technologies.
Okay.
Operating income for the third quarter of 2021 was $4 2 million, an increase of 33% compared to operating income of $3 2 million as reported in the third quarter 'twenty 'twenty.
Net income for the quarter was $3 $6 million, an increase of 23% compared to $2 $9 million in the third quarter of 2020.
Earnings per diluted share in the quarter were <unk> 52.
This is a year over year increase of 27% compared with EPS of <unk> 41 things as reported in the third quarter of last year.
Now turning to the balance sheet.
The September 32021, the company's cash cash equivalents in marketable securities totaled $66 $3 million with no debt or $9 81.
Per outstanding share.
During the quarter, we further executed on our third $50 million share buyback plan, which we started on May four 2021 during the third quarter. We purchased approximately 73000 shares at a total cost of $3 two.
Million.
That ends my summary, and now back to the operator for questions.
And Ensco session.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to canceling a request. Please press star two if you are you.
Using speaker equipment timing lift the handset before pressing the numbers youre questions will be pulled in the order they are received.
We stand by while we poll for your questions.
Our first question is from Alex Henderson of Needham <unk> Company. Please go ahead.
Give us a little bit more granularity yes.
Yes can you hear me yes.
Okay great.
So I was hoping you could give us a little bit more granularity on the impact of the supply constraints in terms of.
How much of the pressure was on the gross margins in the quarter and whether you expect that to.
To increase.
A cost element as we go forward.
<unk>.
Clearly you've cited mix as the primary reason.
For the margins coming in where they did but.
You also cited.
This cost increase didn't mentioned it is in fact or im trying to get a little bit better granularity around it.
And while I would say that the most.
Serious impact of the material shortage.
Is.
Not <unk>.
Is not on the margin. It is on the cost I would explain that in a minute, but rather on the ability to deliver and when we are able to deliver related to the margins. So yes, I mean, the price of components is going up and sometimes it is growing up very significantly however on the other side most.
Of the customers they do understand the situation and therefore in most cases or in many cases the customers are willing to pay for the difference in the cost in our cost when we have to buy these components at higher prices and Thats why the impact on the margin is not that dramatic that being said the <unk>.
But on the ability to deliver is much more significant.
Okay. So as I'm looking out into the December quarter I.
I should assume that you pass through the majority.
Majority of those cost increases that youre absorbing and we should not be.
Tapering the margin down to reflect the impact on the margin there may be an impact of the margin I'm not saying it's zero.
But it's not that significant that it should dramatically impact the model that you're using right now in terms of our margins, which is still I would say within between the 32 inch and 36 that.
We are usually using.
To model our margins so that would still be the same and if there is an impact it would be still within these limits.
Okay got it so then going back to the topline.
Basically if you had 100% availability components, what was the delta to revenue.
Revenues.
Resulted from the inability to ship.
$510 million and $1 million.
I would say that for the year for the year and that includes the next quarter, it's millions of dollars.
Okay.
And so are you anticipating any improvement in that or are you expecting it to get worse as we go.
No.
Right now we are expecting it to go.
Right now we are expecting it to go worse from the materials perspective, however on the other side as I've said I mean, we see I would even say dramatic increase in demand. So overall with these two trends are.
Colliding with each other that's why we believe we will continue to grow but the material issue is going to intensify and even become worse.
Next year, but on the other side I mean, we have new demand coming.
Some or some of this demand we're planning at least would be based on our newer products, which is taking the lead time into account already so that's why.
Binding all of these we're still believing that we would be growing next year, it's going to be within a challenging environment, but that's what we believe.
Okay.
As we look out in Q.
'twenty two timeframe can you talk about.
Thank you announced five major contract wins.
Better with significant companies.
Can you talk a little bit about.
The timeline for those.
Got it.
Announcements ramping whether thats.
Slight feather in in 'twenty, two a larger Katherine in 'twenty two.
I assume that this volume.
Discounts relative to.
To your norms.
As those ramp up will that impact gross margin so against.
The small amount of revenue I guess it hasn't limited.
Minor impact to gross margin could you talk a little bit about those mechanics.
Two off of Whats announced in 'twenty one.
These large deals.
Well first of all I mean, we have announced one large deal just.
When does that two weeks ago or something like that so thats one of these deals.
I am expecting that even within this year, we would have one more of these deals.
And the others would probably be announced some of them hopefully I mean, obviously nothing is guaranteed but we are planning for these to be announced there next year.
As to the the.
The relevance of these deals.
On the GP.
Once again.
I mean any one single of these may have an impact on the GP, but overall right now combining everything that I know.
Which is a lot of details.
I do not see any reason right now to change the range of the GP that we're working within which is still a.
At GM of between 32 to 30 36. Some of these deals may be somewhat better others less than that but there is also some and clarity in here due to the increase in prices because some time is when we need to increase price with <unk>.
Increased price, but not necessarily we could burden everything that we're used to over that inquiries, but the overall feeling that I can share with you is that we're still going to be within the same range of March.
Okay.
That said that youre not feathering in a large contribution from the contracts that.
Announce during.
FY 2021 so far.
That's more of a 23% and 24 ramp which as you know.
Normal I mean, you guys normally have.
18 months plus tight lead times on these type of deals.
That seems reasonable.
Great way to think about it yet.
Yet.
Okay and then.
One on one more question and then ill see the floor.
We've seen very strong.
Order rates.
Poor traditional equipment.
Many of the appliance vendors it looks like.
The.
Work from home kind of.
Partial return to office.
With lots of zoom is driving up.
Edge traffic across the enterprise and I would assume that a lot of your traditional customers.
Where you're designed in are seeing the benefit of that.
Companies like.
We have five you're seeing.
Huge increases in orders for.
Appliances companies like Juniper announced a 50% increase in orders for the last two quarters.
Clearly that company that normally grows at low single digits that enterprise market seems like it's.
Quite hot can you talk about your.
Traditional business, whether youre seeing a pickup in that.
Area.
Just kind of address whether the more.
Standard businesses has seen strength that might have a little bit more legs to it the normal.
Yes, I mean I.
I can confirm what you're what you've been seeing with the some of the other companies. Yes, I mean, we have been able to see some of our traditional customers I would say at least at the beginning traditionally coming up are going up with orders compared to what they used to do in compared with our experts.
Asian from them, which was actually to be somewhat less than what they used to do due to the two everything moving to the cloud, but and I think you are accurate. When you said that as well that is in terms of demand and in terms of orders and not always not necessarily in terms of.
The ability to deliver.
Because of the material shortages.
And of course that makes sense, but that suggests good visibility.
Well through 'twenty two for that demand to persist, yes, rehan your visibility to growth is there right, yes, yes, I can tell you.
It is ironic anyway, I mean, we have the best visibility ever that we ever had I think in terms of the demand going into 2022, but we have the worst visibility ever in terms of our ability to deliver due to the material shortages.
I understand obviously deploying let somebody else ask questions and come back into the queue. Thanks.
Our next question is from Sergey Mascaro. Please go ahead.
Hey, guys.
<unk> Thanks for taking my question.
Did you hear me well.
Yes, we hear you fine.
Yes.
Okay.
So can you share with us what are you seeing in terms of faster than expected.
How big is the <unk>.
That you lose some projects because you don't have that inventory on Titan and our customer wins throughout upfront.
So I think that while there is a risk of loss.
But on the other side I believe that we are organized I would say in the best way possible under the circumstances, so that net.
Result of this overall situation may even be positive for us because we are still able to do I would say be compliant with some of the customers needs by maneuvering and allocating everything and all the stock that we had acquired using <unk>.
Our cash position et cetera in a way that sometimes our competition cannot do so the overall result of that I think is going to be positive that being said, yes. There is definitely a chance that in specific cases here and there we may lose a project because we were not able to deliver it.
Specific product that a competitor may have been able to be in a better position that has to deliver but because we analyze all these opportunities and we do have our inventory and the decisions that we have taken in order to mitigate.
The risks then I think that a total total conclusion of all of these forces as positive for us.
Okay.
Great.
I remember that you had been an SD Wan customer that was delayed for a while.
And at the last call I think that you said it would be you would maybe ramping up soon.
Has the situation changed and do you believe these customer wins to ramp up you would get inventory on site.
I am not I do not remember exactly.
To which customer you're referring in which customer was discussed.
Last time, we have several customers ramping GAAP these days with the.
The materials crisis as it is there are challenges everywhere, but as you could see from our results as well I mean, we are addressing these issues.
And we are successful in holding I would say all these customers with us to this date I am not aware of even one single customer who has left us due to inability to deliver what it wants.
Okay.
I think.
This quarter, Nokia decided to delay some of the pricing.
Do you think that could impact you.
Kind of data.
Why are you seeing in the <unk>.
All right.
No I think that the.
Overall, the <unk> space is an initial phase anyhow, yes, and it's very typical in these phase that companies are delaying their announcements and their deployment. So it's very typical.
I don't think while it may delay the ramp up of our product in this market.
But I don't think that its going to be negative in general for us just yet other way around we are developing quite a few products, which are looking at the <unk> market is there a target market and I think that in some cases. It would just allow us to have our products at a level, which is more mature.
To go to the market, so we might even be in a better position than we are right. Now overall, yes, I mean, <unk> deployments are ramping up relatively slowly maybe more slowly than some people thought.
And it may slow.
Slow down the rate at which some of our <unk> products are ramping up but eventually it is going to catch up and I think it's not bad news for us, but rather good news.
Okay.
No doubt that you say has anything to do with new competition.
I think about that this what.
I'm sorry, I lost you for a minute can you repeat the question. Please.
Yeah no doubt.
In that time.
The market.
Slowdown.
While competition is very soon.
Competition is there I don't think that because of this slowdown.
We would have more competition or less competition.
40 products, which we're already selling in this we would the first route to market and that's helping us I still believe that with the next wave of product. We are also going to hit the market first.
The but.
And but in any event I mean in order to be effective when we go to the market. We have to have our product mature enough. So with sub products. This is helping US yes, I mean, it is helping the competition as well, but I still believe that we're going to be the first to market with these products.
Okay.
Just to be sure and no change.
The competition in the <unk>.
The market right.
Yes, no change.
Okay.
My last question I think that your long term model and the Investor presentation slide.
Has been fixed at $260 million in revenue.
Patients doing that the last four years.
Maybe if you can provide us with some color about these <unk> that you have.
That you're seeing that we held approach.
We've had the last few years in the partnership and the <unk>.
The potential <unk>.
The Asian could maybe be conservative and interview.
Yeah.
Hum.
Okay.
Yes, I mean, we are not saying how long it would take.
To get to the $250 million.
The revenues growth and I think that the situation that is happening right now with the material prices is a good example, as to why we shouldn't say that because a lot of things could happen, but we definitely have a strategic plan a roadmap of product.
For which we see traction even though that we believe would take us there.
Yeah, Im not asking about the time that it will take to get there I am asking about the <unk> IC.
$250 million.
Has been therefore during the last four yet and I think that during the last two years, we had lots of project.
The market. So my question is.
Inc.
All the demand that you're seeing right now.
This amount is $260 million.
Great.
In the future.
It could be 250 is more or less an example, I would say we are heading to grow the company significantly and with the demand that we're seeing right now, yes, we may increase over that.
That's our strategic plan and its not something thats going to happen next year, but on the other side I feel quite safe.
The.
And that is going to happen and decided the aim is to show the margins.
Yeah on that one secondly, any news out of there.
The <unk> partnership.
While the Intel partnership is as strong as it was.
The relationships with Intel are very very good and we are working together in many fronts and just as an.
Example.
The penetration that we've been able to accomplish into the <unk> space.
Has been achieved in really very close cooperation between us and Intel approaching customers together they are pushing us wherever they can so I feel very confident about the partnership with Intel.
And.
Yes. This is even tightening then.
I mean, just good news in that state.
Yeah.
Remember that we haven't had and yet.
What about that.
So yes.
Why why is that.
Some color.
What's happening in the <unk>.
Yes.
Yes, I mean, well the FPGA first of all the lot the sales cycle with FPGA and the development cycle with FPGA is much longer than with the other devices.
So that's a given from the opening point is we still believe obviously in the FPGA space, we're investing in that right now as we speak there are quite a few post POC proof of concept.
With some of the cards that we have built.
Together with Intel I would say at some very major customers. So we're still very optimistic about that you should remember that in fact, our strategy related to FPGA has been moved through one strategy to the other just about two years or two and a half years I'm not sure about the accurate way to go.
Two five years ago were removed from I would say sporadic.
Strategy use exciting space solutions into working together very closely with Intel. So during this time during this period.
To invest most of the time was invested in creating the products and then after creating the product you need to create the workload with which you go to the customers with I would say one and a half of the product. We are still we're already there which means we're presenting the solutions to customers. These days and we're seeing very good <unk>.
<unk> to our solutions.
Two other products, we're still developing the product. So it's a long cycle, but we are very optimistic and working with Intel.
The longer term look out for these type of products is very promising.
Yeah.
Yes perfect. Thank.
Thank you <unk>.
Thank you. Thank you.
There is a follow up question from Alex Henderson of Needham <unk> Company. Please go ahead.
Alright, Thanks, Tim so.
There were several comments that were made about.
Challenges in getting parts that Maggie.
Actually been decommissioned.
One I was wondering if that has had an impact on revenues.
To the extent that you couldn't ship something because that part has gone more to the point.
Assume that you're designing workarounds for those and I would think.
Hey, any new design requires the customer to prove out that it works and therefore would require.
Testing and proof.
Coupe of adoption.
Technology.
To some costs. So can you talk a little bit about weather.
Sure.
Opex costs, particularly on the R&D side are going up as a result of bump.
They need to do Redesigns and.
Workarounds on parts that are not available.
How should we be thinking about opex sequentially into the fourth quarter.
For the full year 'twenty, two if you could give us some thoughts on that that would be helpful.
Okay. So first of all I would say that overall I mean everything that you described is actually happening and yes, I mean, sometimes we were not able to deliver because we hedged a certain decommit or something like that and yes, we need to do some redesign tier in there and yes customers need to evaluate these redesigns.
And it's going to take time and this is all a part of the challenges that we're experiencing now in terms of the level of expenses, we would need to do some more R&D design and they may result in a certain increase in our R&D I don't think this is going to be.
<unk> dramatic.
If we're talking about new products that we're designing then at the same level of effort only while in the past I would say optimization point for the designers who was the lowest cost now that optimization point for the designer is going to be availability, but yes. Just like you said I mean this does not.
<unk> all cases, if we have.
A design that we just need to do a slight modification in order to replace certain components, which is challenging to get in another component that this is on top of everything else that we want to do but this is not.
Very significant it may add to our expenses, but I don't think it is going to change the basic model, we may need to because we don't want to increase our force just for that we may outsource. Some of these jobs just in order to make sure that these small things that we need to do are being handled properly.
From a model perspective expenses moving forward, we may see assessment of certain growth, but nothing dramatic is going to happen to do that.
As to the challenges itself there would be challenges as I said before hopefully and we believe they will be compensated by the increased demand and the fact that we would be selling or required to sell or to deliver more product, which would increase our flexibility in terms. Okay. Maybe.
Can deliver a but we can deliver b. So we still will achieve the revenue goal.
Okay can you give us any sense of whether your opex is going to increase sequentially.
Quarter, what you're thinking about in terms of <unk>.
Increases in <unk>.
'twenty, two particularly given the magnitude of the contract wins I would assume.
That's an upfront investment.
That will help to accelerate in order to accommodate those large wins.
I think that once again, I mean overall, they're going to be.
The same expenses I think maybe with a slight increase obviously there are other elements.
Impacting that.
For example, the rate of exchange of the shekel versus the dollar etcetera.
Thing that once again investment.
It would not change the basic model of expenses, we may need to invest and buy some more I would say server, if we increase our quantities, which would go into the capital equipment, but overall I think we're going to be more or less at the same area with a slight.
Please.
Maybe on that one.
But right now were somewhat over $7 million the quarter it could be seven could get up to seven five in 2022.
Alright, so increasing less than revenues and then it sounds like.
Yes.
Okay.
Going back to.
One of the questions that was just asked.
Some extent people remember.
They're large IBM did.
It did not go well.
And was potentially going to be transformative to the company scale.
Quite clear to me at this point.
You've transcended that risks to the extent.
So many contracts can you talk about the breadth.
Large contracts versus your past history.
I can understand.
Diversity implied by some of these larger programs and how that helps.
Reduce single project growth.
Yeah, Okay. So first of all.
I would say that more or less this is not a 100% accurate statement, but at the time of this very big project.
Telecom I would say had.
Almost a single it's not accurate because we are after.
The.
At the time of this big project of the IBM project now everyone knows it was IBM.
Even though who with IBM actually.
Hey.
Said that by mistake I think several times in the conference call.
We're not supposed to disclose that but any outlook at that time, why we were beginning to show revenues with our edge product and to a lower extent with our FPGA solutions as well, but still almost everything in the business was based around I would say silver adopt.
Because what we called at that time, silver adopters and therefore.
The dependency on a project like that.
<unk> was huge now we are in a different situation.
We still have the server adapters.
But the edge product.
Within the SD Wan and not only SD Wan is becoming more and more significant.
Right now so we're definitely not dependent only on one line of product or having the AD product and in terms of planning forward.
We are going to have quite a few what we call smart Cogs.
That we're looking forward to become significant growth driver from for the company. So from the perspective of being dependent.
On the.
One single project.
Project to customer.
I think we are no longer there, we're still looking to get some very major and significant wins from specific customers, but I don't think that the impact of any one of these is going to be as big as it was with the IBM project.
The.
What you could see is <unk>.
Just look at that as an example, I mean, if you look at the time of the of the IBM project you can see that we're more or less at the same level of revenue now after removing entirely IBM, which means that we have been growing.
Through the same level that we were when we had this huge projects at the time, but this time, we are not dependent on any one big project.
So single single customer risk has pretty much been removed from.
From that equation with such a diversity of large wins in the headlines.
Yeah.
Great. Thanks, I'll cede the floor.
Okay.
Is there any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
There are no further questions at this time before I ask Mr. Orbach to go ahead with his concluding statement I would like to remind participants that a replay of this call will be available by tomorrow on silicon website W.
W. W Dot silicon Dash USA Dot com, Mr. Orbach would you like to make your concluding statement. Thank.
Thank you operator, thank you everybody for joining the call and we wish you all health and we look forward to hosting you on our next call in three months time good day.
Thank you. This concludes telecom third quarter 2021 results conference call. Thank you for your participation you May go ahead and disconnect.
Yeah.
[music].
Yeah.