Q3 2021 Wireless Telecom Group Inc Earnings Call
Yeah.
Good morning, ladies and gentlemen, and welcome to the wireless Telecom group's third quarter earnings call. At this time, all participants have been placed on a listen only mode and we will open the floor for your questions and comments after the presentation.
It is now my pleasure to turn the floor over to your host Micah Kendall Sir the floor is yours.
Thank you operator, good morning, everyone and thank you for joining us on today's conference call to discuss wireless Telecom group's third quarter 2021 financial results.
With me today is Kevin Wheeler the company's CEO.
Before we begin I would like to remind everyone on the call that our remarks today could include forward looking statements within the meaning of the private Securities Litigation Reform Act of $19 95.
In some cases such forward looking statements maybe identified by terms such as believe expect seek may will intend project anticipate plan estimate or similar words as well as statements that do not relate strictly to historical or current facts. The companys forward looking statements are based on managements.
Current expectations and assumptions regarding the company's business and performance the economy and other future conditions and forecasts of future events circumstances and results forward looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results.
Important factors that could cause the company's actual results to differ materially from those in its forward. Looking statements include those risk factors set forth in the company's 2020 annual report on Form 10-K, as supplemented and revised by the risks and uncertainties set forth in the company's subsequent reports filed with the SEC.
The company does not undertake any obligation to update or revise any forward looking information to reflect changes in assumptions the occurrence of unanticipated events or otherwise.
Also we want to point out that inhibition to GAAP information, we will provide information relating to certain non-GAAP measures. We believe that presenting these non-GAAP or adjusted measures provides additional meaningful information to investors, which reflect how management views the business.
Detailed reconciliations of GAAP measures to non-GAAP measures are set forth in a reconciliation table in our press release issued earlier today and furnished with the form 8-K filed today with the SEC.
With that it's now my pleasure to turn the call over to Tim Whelan.
Thank you, Mike and good morning, everyone.
We are very pleased with our third quarter results and the continued sequential revenue growth through the first nine months of 2021.
We are encouraged by improving market conditions, but more importantly pleased with the continued performance of our organic growth initiatives and the success of our recent acquisitions.
There are four highlights I wanted to cover on our results before Mike goes through the quarter in more detail.
<unk> consolidated.
<unk> revenue increased both sequentially as well as year over year.
This improvement included sequential and year over year increases in both RF components and test and measurement.
And it included year over year improvements to our RBS business. So we are seeing signs not just related to market conditions, but more important to underlying themes of growth and investment in fiber deployment.
Semiconductor ate environments defense sector spend and network Densification.
I am, particularly proud of our third quarter sales performance as we continued to successfully navigate the current disrupted state of supply chain challenges.
Second.
We realized our sixth straight quarter of gross margins about 50%.
This is a critical goal we have accomplished as part of our long term strategy, reflecting what we believe to be a sustained growth in higher margin products and revenues.
Third.
We have made a significant debt prepayment representing almost half of our outstanding term loan based upon the strength of our free cash flow and ability to control costs and spending.
We have noted previously our focus on managing our cash flow and our debt balance and this is evidence of our success, which is also expected to decrease our future interest expense and contribute to improved cash flow.
And last we recorded another strong quarter of bookings at $12 8 million and a one to one book to bill ratio, maintaining a backlog of $12 7 million and our highest backlog in over four years.
Turning to additional highlights across our three product groups and RF components, our revenues return to 5 million plus in the quarter.
This reflects improvements across large projects, such as stadiums and amusement parks increase.
Increased orders from our distribution partners and higher orders for our ultra wide band products.
We have previously discussed that our ultra wide band products are aligned to spectrum rollout as part of broadband network Densification.
Our expectation is that these increases will be sustained.
And we will see quarterly bookings and revenues return to these levels for the foreseeable future.
In test and measurement, we realized an almost 20% increase in nine month revenues as compared to the first nine months of last year.
This reflects continued increased demand from defense contractors semiconductor companies and satellite providers as well as the over performance of our Holzworth acquisition.
In the third quarter of 2021, we also experienced higher international order flow as well as increased delivery of instruments under our U S Navy contracts.
Holdsworth continues to perform exceptionally well and we continue to remain excited about their new multichannel RF synthesis products and the interest they are generating in the semiconductor automated test equipment or ate markets as well as the continued expansion of our burden USB RF power sensors.
We expect to continue investments in our team and brands as well as working on driving closer operational and go to market synergies across the various brands.
Overall, we believe our investments and expanded focus on new products and solutions designed into larger more complex devices is expanding our addressable markets and paying dividends with increased bookings and revenues.
Within our radio baseband and software business. We are very pleased that revenue has increased by 130% or $3 7 million for the nine months ending September compared to the same period last year.
The increase included a return of demand for our digital signal processing hardware cards as well as revenue increases from the delivery of software and services.
Our success signing new software customers continued in Q3, including a win of a new customer for specialized <unk> small cell solution deployment.
Our funnel remains strong for a variety of five <unk> technology development projects, including private network deployments <unk> research projects and Ruggedized small cell projects.
As we think about the future for RBS solutions. We believe 2022 will continue to demonstrate improved demand for our software and services.
We expect this will be driven by increased <unk> private network and specialized small cell trials and pilots, which will then move to higher levels of adoption and volume deployments in 2023.
To summarize.
We realized continued sequential improvements to the business in our third quarter with increased revenues improved profitability and increased free cash flow.
We were exceptionally pleased to complete our prepayment of almost half of our term debt.
Evidence of the improving conditions and improving expectations for the future.
A record high backlog gives us confidence about our future and continued growth in the business.
With that I'm going to turn the call back over to Mike to walk us through the financials. Thank you Tim Good morning, again, everyone I'm going to walk through the results for the third quarter of 2021, and then comment on our balance sheet as of September 32021.
P&L comparisons are on a year over year basis and balance sheet comments, our September 32021, compared to year end December 31, 2020, unless otherwise noted.
Consolidated revenues for the third quarter, 2021 increased $1 9 million or 18% from the prior year period.
RF components revenues increased $1 million or 23% due to increased carrier spending specifically on large projects, we're starting to see improving market conditions in this product group RB.
<unk> revenue increased 792000, or 121% on higher sales of our digital signal processing cards, and TM revenue increased 134000, or 2% due primarily to higher international sales as compared to the prior year.
Consolidated gross profit increased to 886000 on higher revenues consolidated gross profit margin declined marginally due to product mix.
At our RBS product group, we had a higher mix of lower margin hardware and service sales as compared to higher margin software sales in the prior year period.
At our TM product group, our margin declined slightly after accounting for a $258000 purchase accounting adjustment in the prior year due to product mix at our legacy <unk> brands.
This was offset by higher gross profit margin at RF components, due to higher volumes and higher absorption of fixed manufacturing overhead costs.
Turning to operating expenses.
<unk> R&D expenses decreased 391000, or 21% from the prior year because of lower third party material and consulting expenses. The majority of which was in connection with our TNF product group.
We expect to continue third party investments in research and development dependent upon project deadlines, new product development opportunities and longer term product roadmap dependencies, which in turn may create increases and decreases to research and development expenses as a percentage of revenue.
Consolidated sales and marketing expenses increased 7% due primarily to higher internal commissions marketing expenses and head count expenses consolidated.
Consolidated general and administrative expenses increased 357000 or 15% from the prior year due primarily to higher head count and legal expenses.
Additionally, within operating expenses, we recorded a loss on change in contingent consideration of $1 million in the third quarter.
This represents our estimate of the year to earn out related to the Holzworth acquisition.
Youtube earn out is based on the financial results for the fiscal year ended 2021 and is payable in four equal installments beginning in March of 2022.
Holzworth full year 2021 forecasted financial results have exceeded our initial estimates and accordingly, we recorded this charge through the P&L as the measurement period for purchase accounting were opening balance sheet accounting is closed.
The year to earn out as the final earn out payment due under the Holzworth a stock purchase agreement.
Other income and expense increased 63000 from the prior year due primarily to higher foreign exchange gains.
Interest expense increased 109000 from the prior year due primarily to the $74000 premium we paid related to our third quarter debt prepayment.
As well as the higher interest rates on our term loan as compared to the prior year.
Net loss decreased 588000, due to increased sales and gross profit in the current year and the recognition of a tax benefit offset by the recognition of the loss on contingent consideration and higher interest expense.
Non-GAAP adjusted EBIT was $1 1 million as compared to 722000 in the prior year period, due primarily to higher operating income.
Turning to the balance sheet as Tim mentioned, we made a $3 $7 million prepayment on our term loan in September which represented approximately 47% of our outstanding term loan balance. Additionally in connection with the prepayment we amended our term loan agreement and lowered our interest rate by 500 basis points and amended certain financial covenants.
As of September 30th our net debt was $3 2 million as compared to $5 4 million as of December 31.
And our availability under our bank of America asset based revolver was $5 1 million.
I'll now turn the call back over to Tim for some closing remarks. Thank.
Thank you Mike.
Our third quarter and nine months results continue to reflect sequential as well as year over year improvements to revenues and profitability cash flow bookings and backlog.
We executed on our commitment to manage our business, our balance sheet and debt levels.
We accomplished the forgiveness of our PPP loan.
We executed on a portion of our ATM transaction, which supported our ability to prepay almost half of our term debt.
We have won new customers in each of our three product groups and we have launched new products and solutions to market across our brands and our backlog is at an all time high.
We feel good about the full year 2021 in the next couple of years ahead.
With respect to the fourth quarter, we expect to see another quarter of higher revenues, both sequentially and year over year.
However, we are keeping a close eye on global disruptions caused by the pandemic, including global supply chain shortages.
The supply chain issues cover not just component shortages, but also shipping and logistics challenges.
We are also keeping a close eye on the labor market, especially for roles requiring technical expertise and these challenges make near term predictions of quarterly results a bit more difficult.
We are making strategic investments across our businesses, while simultaneously building our teams.
We believe these investments are essential to support the strong demand underway as reflected in our robust bookings and record backlog.
In addition, we must be mindful of the long term health of the business and ensure our ability to address the expected long term investment cycle into semiconductor manufacturing <unk> private networks and satellite in defense spending.
With less than two months remaining in 2021, I am encouraged by our performance and the direction we are headed.
I am also excited by the opportunities we have to grow our business in 2022 and beyond.
Last I want to use this opportunity to thank our global team members for their hard work and dedication.
Thank you and operator, if you could please open the lines for questions.
Certainly ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time we.
We do ask that while posting a question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.
Once again, if you have any questions or comments. Please press star one on your phone please.
Please hold one poll for questions.
Your first question is coming from Amman, Gulati from B Riley Securities. Your line is live.
Hey, guys. Thanks for taking my question and congrats on the quarter.
Nice to see revenue continuing its momentum here I wanted to ask about.
Small cell deployment, you mentioned that.
Those deployments have been improving.
What are you seeing out there in terms of trends and what sort of visibility you have into small cell deployment.
It's scheduled.
Yeah. Good morning, Thank you for joining us.
So I think the the.
The industry at large had an expectation for higher.
Higher volumes small cell deployment in within 2021, primarily in the back half of 2021.
We're seeing some of that but we're also seeing the carriers address more of the macro build out of the spectrum that they've acquired in the first quarter. So we still think that the small cell build out is largely in front of us.
Not quite at the levels that were expected coming into 2021 is just one key point.
Within the RBS business, we're certainly seeing a higher level of interest in.
In various technologies that take the small cells and specialized them for unique private networks, and that's where we've seen a good deal of our wins across multiple verticals. So we're encouraged that the year is characterized by technology development and trials and we think.
That the.
Roger scale production.
Is it later in 2022 or even 2023.
Got it that's helpful and then.
I believe your AT&T and Verizon noted a one month delay in deployment for some of their mid band mid band spectrum.
Are you seeing maybe some projects getting pushed out because of that delay.
Yes, we've seen some of the same reports.
I guess number one the the carriers are always seem to slow down a bit in December.
Just as a cyclical point, we see December being a slower month and the year as they really start to plan for the projects in the following year.
Number two the delay of December to January tells me, it's not a big pause and and so as we look at our funnel our funnel has not been negatively.
Impacted we're still seeing some large projects transportation hubs.
Hotels and entertainment centers and other large venues remained fairly robust funnel for the first half of 2022 so.
It's on the watch list, we're keeping an eye on it but right now I can't say, we've been impacted by it.
That's good to know, Okay, and then I guess turning to the RBS segment.
Should we think about the pace of signing new customers for your <unk> software solution.
It sounds like you've already secured five customers this year so far.
So how should we think about.
Some of those products growing at five year investment starts to ramp.
In the back half of this year last couple of months and also.
Headed into into next year.
No we're not.
We are encouraged by where we're seeing a continued pacing of signing new customers.
This is our sixth quarter of signing at least one multiple quarters, we signed two customers.
These contracts are typically.
Longer term in nature in the sense that they take one where multiple quarters in most instances multiple quarters to deploy.
Get accepted and get recognized.
We've seen the 130% improvement nine months over nine months in the in the revenues and we've seen closer to 400 plus improvement to the backlog in the RBS as we compare it against September of last year, So highly encouraged and again.
Sort of seeing this period now of technology trials and development.
And we think that will ramp more in the future. It later in 'twenty, two or more in 2023 and.
In terms of volume production and deployment.
Got it that's helpful. And then last question for me.
But the TNF segment good to see the momentum there can you talk about any specific.
And markets that might be supporting the growth here or would you say, it's largely broad based.
Yeah, No I think I think across.
Number one certainly in the semiconductor automated test environment <unk> environment.
We're seeing some good demand there number one number two satellite applications would.
It would be a second and maybe to a lesser extent some quantum computing.
Got it. Thank you gentlemen, I will pass it on.
Great. Thank you.
Yeah.
Thank you. Your next question is coming from Orin Hirschman from AIG H investments your line is live.
Hi, good morning.
Good morning oriented thank you for joining us.
Yeah.
Kind of another customer this quarter on some of these longer term contracts what are the metrics that we could look at in terms of understanding better when those ramp.
Happen and you had mentioned 23.
Are there any metrics that gives you that confidence that we could see and share with you question.
Question number one.
Question number two on that same point.
Is.
I guess how.
How do we get any conviction that those products those contracts actually lead to production.
As opposed to where things can get canceled at the last minute and then add one or two follow ups.
Yes. So I've mentioned these this is early technology deployment and so as a result, our other providers to these solutions.
Not the only vendor in the mix.
I think the metrics as we as we work through this over the next year.
<unk> become more predictable or the milestones of deployment and the acceptance right now the delivery of technology has to be accepted.
Those timelines are subject to a number of trials by our customers and so the timing of acceptance.
Is it a little bit more difficult and we have to work with them. Their large customers that are large enterprises that are very demanding.
And that's how we're going to win new business by by ensuring that we work with them we're patient.
And we ensure that the products that they are putting our technology and are functioning as expected. So as 2022 unfolds I think we'll get a better idea of how a funnel I'm, sorry, well, how both the funnel and the backlog within RBS.
Is playing out be getting delivered and getting accepted and will be in a position to provide better metrics of backlog delivery at that time.
But are there are there any new project and these mega projects are there any projects that are actually going into deployment yet.
So all of that goal.
Glass.
Trial of volume.
So the following how you'd get a better grip on the picture.
Yes, I'm, having a little bit of a hard time hearing you Orient, but I think I'm asking about.
Volume delivery.
I'm, sorry, I'm sorry, yes.
Sorry about that any commercial any any of them go commercial to get to where you actually have visibility into any of the contracts on a commercial basis. It's still it's still just sample deliveries field trials et cetera.
I think the most recent.
I think the most recent press release, we've issued.
Our partnership with Smart strategy, we're certainly watching that to market.
That was a that has been a long standing relationship we've worked for more than two years with smart Sky networks.
Early on there was an agreement or a press release, but only at such time that they were pleased with the performance and putting nano production.
Right.
That one right there is the.
Probably one of the best examples.
Technology and full production goes to market.
So, let's say, let's take that as an example, the first example, any ideas what kind of business that's going to provide to you meaning.
The $1 billion of your business potentially a $5 million.
Or your business.
Between yeah.
Yeah, they provided no forecast to us.
I think the commercial aviation market.
Theres a lot of metrics there I think the closest competition to smart guys Gogo networks, and I think theres a lot of.
Metrics, there, but of course smart Sky has not provided us with any kind of followed forecast and so.
We're staying close we're seeing good customer we continue to support them on a quarterly basis that generate some smaller sized support services for us.
But we're not yet at the point, where we're predicting any kind of production or deployment.
And we're going to be careful to work with them to do that.
Number of other small cell specialized small cell.
Sales that we've had or technology to those providing specialized small cells.
<unk> have given us.
A limited understanding of deployment from thousands to hundreds of thousands, but again, they're going through trials and testing and before they get to the point of large scale production they need to sign off by their customers. So theres still a lot of work ahead of us and it's still difficult to predict.
In terms of let's say thousands beyond that.
What in general the Asp's like on the type of sub system.
It depends upon.
It depends upon the full contract in the sense of what they paid for the upfront license fee versus what they are willing to pay on a per unit royalty or license.
So again each of the contracts are slightly different and they have they have different volumes. So.
So it's hard to give you an ESP that would be accurate for the business.
And last two questions. If I may one is you mentioned quantum computing.
Being actually built into <unk>.
Quantum computers, keeping in mind that a lot of them shipping yet, but can you can you flesh out that category, a little bit more and and is it one customer or is it more than one customer.
So it's multiple customers.
<unk> less than seven figures, it's within PNM, it's primarily the holzworth product.
We're encouraged.
Because of the competitive nature of the performance and the fact that our performance.
<unk> has won out over much larger companies from providers. So it's.
Within the company, it's a good win its a big win.
It's winning at amounts higher than what we expected and winning with companies.
Some of the largest fortune 100 companies in the world. So we're encouraged by it.
Think that defines our business.
Single customers that are multiple six figures potentially seven figures within that team EM space.
Those kinds of wins can really create some growth opportunity as we think about the <unk>.
And it's specifically because of the higher performance in terms of being able to read.
Very high frequencies, what is it specifically geared up okay.
Correct. This caused phase noise coherency in its the ability to use those measurements in connection with the entirety of.
Of that system and application.
Which means the ability to actually read that the acute beds or something.
That's correct and the stability of the Kubitz is what's critical to the to.
To the to the quantum computing application.
Okay and the last mile.
Last question is just you know.
The book to Bill was a nice dollar number but it was it was.
It was one to one and you seem excited about it and one for one.
That's really exciting.
So what is it that we're missing here.
I think it's very positive I think our business can be can still at times be lumpy. So every quarter. We can put up one to one positive one to one it means we continue to both grow our revenues. So keep in mind that our revenues increased both sequentially and year over year and.
And we've managed to book the same amount of business keeping our backlog high so as we think about that that's a good result.
Positive in the quarter.
Positive nine months.
And we keep doing that we'll keep growing the business and creating a larger backlog for the future.
Okay. Thank you.
The lumpy lumpiness that.
The part that I'm not factoring in in terms of the backlog.
That's right not every four quarters of a single calendar year, maybe a a.
One to one because it'll be either lumpy delivery of.
Spike of perhaps a larger revenue delivery.
Sure.
The signature of the contract that then creates a.
A significantly higher one for one so year to date we're at.
111, so again I look at that and I say, okay. That's that's a good job and as we go forward, we're going to try and make sure we hit that Mark.
Just to follow up on that and then I'll, let other people ask appreciate the time.
But let's see taking that.
And our borders than <unk>.
Taking the additional time, where it's both.
Looking at one quarter at a time.
The thing because the business is lumpy but.
Looking at let's say the rolling nine months.
Wouldn't that backlog in Pi.
The company has a 10% grower or percent or 11% grower what are we supposed to take away from that.
Well keep in mind that what we said we said in the past that there are some significant contract wins with a total contract value was not recognized in the backlog that's probably the missing piece for them. So there is one.
One particular contract that I have in mind, we have negotiated the terms around the multi seven figure opportunity and the first P. O was only a couple of hundred thousand dollars and it's dependent upon milestone delivery. So we feel that we've done everything we need to win that business that we need to.
Executing on those engineering delivery milestones and as long as we do that additional bookings.
We will come to us. So that's that's a lot easier proposition than just getting a $200000 Po and having to go out when another contract in place it under the full negotiations. So I think that's probably the piece that create some excitement internally, but it's not yet reflected in the bookings and backlog.
Okay got it.
Area was that of a curiosity.
That is an example, that's within RBS.
Okay.
Okay. Thanks, so much.
Yes.
Yes.
Thank you. Your next question is coming from Nick <unk> from NR management. Your line is live.
Good morning, all.
I was just wondering where you stand on issuing more stock through the ATM. Thank you so much.
So our S. Three has.
Expired and we did not renew it expired in September 2017.
We don't have any short term plans to renew the S. Three although I wouldn't rule that out in the longer term.
Term.
We're not updating the history at this time.
Okay. Thank you.
Thank you Nick.
Thank you. Your next question is coming from Robert Marson from pennant capital. Your line is live.
Hey, guys congratulations on a solid quarter.
Good morning, but it seems like things might be finally, moving in the right direction with regard to consistent growth.
As you look out at a preliminary 40000 foot view of 2020, due which businesses do you see being able to achieve your targeted growth.
Of 10% revenue growth for the calendar year is there are all three of them positioned to do that or is there one on the horse that needs to carry the entire.
Business next year.
We still do have a double digit revenue growth.
Target if I remember correct.
So we feel good about all three businesses Robert just to answer that question I don't think there's going to be any.
Or a laggard I think we have the opportunity to grow all three.
I think the best metric.
When we look at that is the expectation that.
<unk> to leverage off of what Ive said, Oregon.
Got a much higher backlog today than we've had previously we feel good about that.
And so if we can execute on.
Next year and deliver that deliver that additional backlog.
To revenue.
Continue to book New business.
Think we'll go into the year with a pretty good handle on how we think about growth next year just from the growth in the backlog. So I think that's a great starting point.
Alright, well, if we finish this year close to 50, let's just.
Let's just assume 55 to 60 should be the target for next year.
That sounds great. Thank you Robert I appreciate that.
Alright.
Are you are you resource constrained in any businesses right now from an ability to deliver.
Or ship hardware software product from the supply chain issues and other problems people are having.
We're certainly feeling it absolutely.
You know, there's there's there's three challenges there, which I think we touched upon number one theres just the component shortages. So you first have to secure a commitment for delivery number one number two you have to find.
Find a reasonable price and when I say that.
There are.
Certain vendors that have increased their pricing throughout the year.
There are others that have actually increased their pricing on orders already placed.
So one you have to secure an obligation that will deliver you a material you have to you have to do it at a price that's reasonable and then three you have to keep an eye on that throughout the entire cycle because of the shipping logistics challenges. So we've had dates confirmed to us multiple times multiple times and nine times.
Our ROE on a weekly check and it's confirmed and on the 10th week, it's pushed out.
So.
So that is absolutely a challenge and I do think.
We would otherwise have had additional opportunity as we think about Q4.
Could you just run out of runway one point, so with December delivery of components pushed to January pushed that fiscal year.
Two the competition for talent has never been greater it's always been significant.
But we're seeing recruiting times extend we're seeing expectations for salaries increase in and and so I think thats sort of a second.
Level of tension that we keep an eye on the business.
Okay are you raising prices because I don't think I've been on a conference call. This season.
My companies have had to raise prices to preserve profitability I haven't heard anything about price increases.
If any at all.
No we've been.
We've been consistent in two of the three business units in terms of price increases and we still see pricing power primarily within testing.
Test and measurement and RBS.
<unk> and RF components are slightly different in that our strategy. There is to use manufacturing and supply chain excellence to keep keep prices in check and drive increasing margin through volumes and so if we can do that while keeping them.
On the price for our customers. We think that's the winning solution that's a very competitive space.
And raising prices may work against us So we're going to use.
Supply chain manufacturing excellence to try in driving volume to drive our margins higher on dollars in that in that segment, but otherwise, yes were seeing pricing power in test <unk> measurement and RBS.
Have any of the new products and RF components taken off in the last year or two I know your funnel the fair amount of R&D into that trying to create some pricing power with extra features.
Yeah, we've seen we've seen some good traction on the integrated solutions that would be called the MCC and DCC, which we issued some press releases on.
We like the direction of the smart coupler, which is a public safety play and it's the ability to monitor monitor solutions and buildings. So.
We're happy about those and and we're seeing a return of run rate, we're seeing distributors start to stock a little bit more so.
Good signs as we think about the future and that's evident within the Q3 revenues for RF components.
Alright, Thank you very much.
Thank you Robert.
Thank you once again, ladies and gentlemen, if you have any questions or comments. Please press star one on your phone at this time.
Thank you there are no further questions in the queue I will now hand, the conference back to Timothy Wilmott for closing remarks. Please go ahead.
Thank you so much thank you everyone for joining us today.
Forward to finishing the year strong and speaking with you again soon.
All the best and we'll talk soon thank you.
Yeah.
Thank you ladies and gentlemen. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.
Thank you.