Q4 2021 Peraso Inc Earnings Call
Good afternoon, everyone and thank you for participating in today's conference call to discuss the financial results of Perasa, Inc. For the fourth quarter and full year of 2020.
One 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 Touchtone telephone as a reminder, this conference call is being recorded I would now like to turn the conference.
<unk> over to Jim Sullivan CFO of Perasa, Inc.
Good afternoon, and thank you for joining today's conference call to discuss process fourth quarter and full year 2021 financial results I'm, Jim Sullivan CFO of cross sell and joining me today is Ron Calabria, our CEO .
Afternoon, we used to issue a press release and related form 8-K, which was filed with the United States Securities and Exchange Commission or the SEC. The press release and form 8-K are available on process website at Www Dot Perasa wing Dot com under the Investor Relations section. There was also a slide presentation that we will be using in conjunction with <unk>.
Today's call that may be accessed through the webcast link.
On process IR website.
As a reminder comments made during today's conference call May include forward looking statements.
All statements other than statements of historical fact could be deemed as forward looking.
Perasa advises caution and reliance on forward looking statements. These statements include without limitation any projections of revenue margins expenses non-GAAP operating expenses adjusted EBIT EBITDA non-GAAP net income cash flows or other financial items.
So any statements concerning the expected development performance and market share or competitive performance relating to our products or technologies. All forward looking statements are based on information available to cross sell on the date hereof.
These statements involve known and unknown risks uncertainties and other factors that may cause process actual results to differ materially from those implied by the forward looking statements, including unexpected changes in the company's business.
More detailed information about these risk factors and additional risk factors are set forth in process public filings with the SEC.
Brasseaux expressly disclaims any obligation to update or alter its forward looking statements, whether as a result of new information future events or otherwise, except as required by applicable law.
Additionally, the company's press release and management's statements. During this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details.
For those of you unable to listen to the entire call at this time, a recording will be available on the Investor Relations section of process website.
Now I would like to turn the call over to our CEO Ronnie Laborde for his prepared remarks Ron.
Thank you Jim and thank you all for joining us on today's call.
Afternoon, I'm pleased to be joining you today for my first earnings call as a public company. Following the completion of our business combination with most of this in December .
To tell you a bit about Perazzo. The company has been in the millimeter wave or M. M weighed business for over 12 years MMO.
Mmm wave is a technology, which utilizes a specific portion of the radio spectrum in the 24 to 100 gigahertz frequency range.
But we believe differentiate PRASM for many M M wave suppliers or others, who have attempted to develop them and wave technology is we've been shipping in volume, whereas many have failed to commercially scale. This technology.
And then wave is very complex and the shift from development in the lab to customer deployment is a significant learning experience today.
Today, we're shipping 60 gigahertz products to multiple tier one customers and have an expanding pipeline of opportunities in a variety of end user market applications.
Okay.
We are also actively working to expand proud was product line from our existing 60 gigahertz M. M way products to include five G I memory products.
Over the next three years <unk> millimeter wave for consumer premise and hotspot applications is estimated to represent a $3 billion Tam and we believe we're well positioned for growth in the coming years with the global expansion of five G. M M wave technology.
The central theme.
Underpinning M M wave technology is that the existing wireless spectrum simply cannot provide the necessary bandwidth to satisfy increasing user demand.
This is driven by a couple of fundamental factors.
First the number of users on global networks continues to increase an additional driver of user demand as video applications, such as tick tock, Netflix and Twitch are having a profound impact on global wireless demand in fact, Facebook recently indicated they are rolling out Facebook reals on a global basis due to.
A direct competition from tick tock.
When you compare a static Facebook page to a real video the differences in order of magnitude increase in the wireless bandwidth needed for a single use Facebook user. Additionally.
Additionally, we're seeing ever increasing video resolution, starting with H D moving to four K and eventually 8-K. This is particularly critical for over the top video applications, such as Netflix and Youtube as well as streaming sports.
As video becomes the dominant traffic category in mobile networks, we believe M. M wave will be the primary source of additional capacity for five G networks.
Specific to the <unk> specification the millimeter wave frequency band spans from 24 to 100 gigahertz. This compares to four G, which utilized spectrum below six gigahertz.
Five G standards organizations are anticipated in the need for additional spectrum in the future.
In fact during very early discussions with various interest groups regarding <unk>, there's been a clear recognition that the M. M wave has been fundamental to future generations of mobile technology.
We see these trends is a validation of EM wave technology in the enormous market opportunity further supporting investment Perazzo has made to date.
Circling back to what differentiates Perazzo and how we win in millimeter wave PRASM at several established and sustainable advantages in this market.
First our customers have derived field proven 10 times performance advantage and deployed solutions for the fixed wireless market.
This means they're shipping devices with a range of close to 30 kilometers, which is roughly 10 times farther than competitive offerings at similar data rates. This.
This expanded network network coverage is achieved through our collaboration and deep engagement with customer engineering teams.
Second Perazzo has the experience and knowhow gain from designing Emily surrogates for over 12 years.
And then wave technology is challenging and very sensitive to minor variations in the manufacturing process.
As such foundry models can prove difficult to develop and are often inaccurate when applied in the design of M. M wave RF circuits.
Our engineers much characterize and test manufacturing manufactured circuits in order to validate our original models.
This refinement process takes years to fine tune.
We believe this provides perazzo with a significant technical barrier and while potential competitors may try to catch up in the meantime, our engineering teams continue to produce improved new models.
Yes.
Driven by our experienced shipping millimeter wave devices in volume, we have learned how to improve yields and reduced manufacturing costs.
This has allowed perazzo to improve efficiencies overtime and allow for future margin expansion in the coming years.
The manufacturing Knowhow also serves as an additional barrier to competition.
Perazzo has developed deep engagements with our customers, enabling us to add new high value feature high value features to our products and providing visibility into customer roadmaps.
Which assists in focusing our R&D efforts.
These relationships put perazzo and an important competitive position.
Products are optimized through customer feedback and interaction, which we believe has enabled us to establish a leadership position in the millimeter wave market.
In addition, we've made significant investments in software.
The offering both silicon and software, we provide our customers a platform solution, which incentivize as long term commitments an increase of switching costs given the system level performance we delivered.
This strategy contrasts with traditional vendors, who relied solely on RF performance to remain in a dominant position.
Her as our products deliver are excellent our outperformance and when combined with our extensive software platform.
Further entrenches proviso with with customers and provides a long term sustainable advantage in our markets.
Yeah.
Our millimeter wave technology is backed by a strong IP and patent portfolio, which we categorized into four primary groups millimeter wave RF silicon essential standard claims millimeter wave antennas and comprehensive software.
Early on Perazzo made significant investments in antenna technology and develop key knowledge related to the manufacturing and optimal deployment of millimeter wave and tenants. This is critical in millimeter wave solutions as the antenna plays a fundamental role in system performance, particularly in phase III systems.
We are also actively participated in MMA standard setting process and as a result, we've been awarded a central claims patents for the <unk> eight O. Two dot 11, eight why standard.
Any company planning to implement a semiconductor device utilizing the standard muscle pain or license from Perazzo for these patents.
Finally, following our significant investments in software the company has filed several patents related to the implementation of our software.
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We believe our <unk> patent portfolio provides us with a strong defensible position within the <unk> market.
Beam, forming there's another fundamental aspect of their memory technology and fragile has built a core competency in robust and effective beam, forming as well as beam steering.
The primary function of beam, forming technology is to concentrate RF energy, ensuring strong high performance long distance connections.
<unk> have been for me is to focus our energy towards its target.
Similar to using a lens to concentrate light or energy from the sun towards a single point.
The focused and dynamic nature of our beams make it very difficult for third party interlopers to each drops.
Wave communications as such MMO, Ava is gaining traction and secure private networks examples of industries with which Perazzo was engaged includes transportation advanced manufacturing and defense.
Another inherent advantage of being for I mean is it lower susceptibility to.
To signal interference.
This is important in wireless AR, VR, which has very little tolerance to interference.
Finally, the narrow beam technology utilized by Perazzo allows <unk> systems to overlap, creating a mesh network in dense urban areas. This expands the available bandwidth for high usage applications, such as private networks and fixed wireless applications.
One of the key aspects of our product strategy is the development of a millimeter wave modules. It's important to stress here that perhaps it was one of the few M. M wave vendors that controls most aspects of the module IP. This.
This includes RF circuits software and importantly, our antenna technology.
Through the control of this IP, we avoid third party margin stacking and we're able to provide a highly competitive very cost effective solution.
It's important to emphasize the inherent value proposition of this strategy.
And then wave technology requires a tight interface between silicon and the millimeter wave antenna.
Historically customers, we were required to test and calibrate the signal between our silicon in network and tenants.
With the introduction of our <unk> modules.
We have removed the need for the customer to deal with a delicate manufacturing challenges presented by <unk> technology.
Perazzo was able to provide customers with stable and predictable solutions for which we can guarantee certain levels of performance.
Additionally, this strategy has successfully helped accelerate our customers' time to market in the order of six to nine months.
Given the need for less technical support and less testing prior to deployment.
Our module strategy allows us to control Perazzo solution at a system level offering enhanced performance and ease of use.
We believe this provides an advantage over competitors that focus solely on the component level with limited software and system capabilities.
Yeah.
The target opportunities for Perazzo can be broadly divided into two markets fixed wireless access in consumer electronics.
Today, we're generating revenue in both of these end markets with growing opportunity pipeline.
Our initial solution for <unk> networks as consumer premise equipment for fixed wireless access. In addition, our <unk> roadmap is focused on expanding opportunities in consumer electronics, including hotspots laptops and tablets.
Specific to fixed wireless access.
We have proven ourselves as a leading supplier of Ics and modules for the 60 gigahertz market.
Been shipping <unk> chipsets in volume since 2017, and establish <unk> as a competitive alternative in the fixed wireless market.
Enabling solutions to spend 29 kilometer links.
Requires customization of all aspects of our solutions, including our circuits are antennas and our software.
Working closely with leading customers, we were able to optimize our beam forming algorithms to achieve optimal system performance.
This is a feature we do not believe the competition can easily replicate we're committed to extending our leadership in 60 gigahertz fixed wireless by continuing to expand and develop our product technology roadmaps to achieve even higher levels of performance.
Building on our momentum in the 60 gigahertz fixed wireless market. Our strategy is to further leverage <unk> technology in the five G fixed wireless market carriers around the world are challenged with a shortage of spectrum and <unk> was an integral part of the <unk> specification and provides greenfield network bandwidth.
<unk>.
We also believe that fixed wireless gives carriers the opportunity to deploy competitive fixed line internet alternatives for both urban and rural deployments.
Well, we haven't yet announced our specific <unk> product offering our initial focus will be consumer premise equipment.
Key requirements for this market that we believe <unk> will deliver include a high level of integration.
Our cost effective solutions superior performance and manageable power consumption.
We will employ all aspects of our existing module strategy to our <unk> solution.
Important characteristics of minimum wage technology include high data rate for wireless video low latency under five milliseconds and significantly reduced interference. These.
Aspects of 60 gigahertz millimeter wave can enhance and enable an immersive video obligations such as AR VR video conferencing and talking.
Today Perazzo is actively engaged with leading consumer wireless video customers and we anticipate initial production shipments in the second half of 2022.
Looking forward, we plan to leverage our existing skills and expertise and 60 gigahertz consumer electronics into five G. Consumer electronics are five G roadmap is targeting higher volume <unk> opportunities such as laptops tablets and hotspots.
With the introduction of the <unk> over the last year.
<unk> to rapidly become the leading use case and driver of high resolution graphics higher frame rates and lower latency.
The continued development of the members and enabling devices, such as AR VR headsets, which are typically wireless will ultimately require the bandwidth and experience that is associated with cable based connections today.
And then wave is the ideal technologies to support mass adoption of the <unk> type environment millimeter.
Millimeter wave technology supports the key requirements needed for low interference high bandwidth applications.
Moreover, the requirements of the meta versus will continue to evolve and demands even higher levels of bandwidth as resolutions moved from four key to AK in coming years.
With over a decade of experience in EM wave design Perazzo has developed a deep understanding of using M. M wave in VR based environment. We are currently engaged in a or b or opportunities with multiple tier one customers and see this as a future source of growth for millimeter wave technology.
Yeah.
Well <unk> wave and <unk> are expected to drive our future growth in late 2021, we acquired a high performance memory IC product line through the business combination with <unk>, Inc.
Memory products have an established customer base and the design wins are generally sticky and long lived our bandwidth engine Ics have been shipping in volume per years to leading tier one global telecom and networking Oems.
The revenue contribution from the memory IC products come with gross margins.
<unk> to exceed 60%, which would positively contribute.
To our corporate gross margin profile since the business combination we have identified initial cost synergies, which we expect will improve the combination margins from this product line. In addition, we were pleasantly surprised regarding the opportunity pipeline for the memory business and based on our current backlog, we have excellent revenue visibility into the second half of 2000.
'twenty two.
And now I'll turn the call over to Jim Sullivan, our CFO to discuss the financials Jim.
Thank you Ron and Hello, everyone, it's great to be speaking with you today.
During my comments I will make several references to non-GAAP numbers, unless otherwise indicated each reference will be to an amount that excludes stock based compensation expense.
Amortization of reported intangible assets arising from acquired assets business combination transaction costs and the change in fair value of warrant liability. These.
These non-GAAP financial measures and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related current report on form 8-K, which was filed with the SEC today and can be found at the Investor Relations section of our website or on the SEC's website.
As Ron noted in his remarks, Perasa Technologies, Inc. A Canadian private company and most of this Inc. A NASDAQ listed company completed the business combination in December 2021 the.
The resulting company was renamed the cross selling and began trading under the ticker symbol <unk> and is headquartered in San Jose.
From an accounting perspective per also technologies, what's the accounting acquirer and historical financial statements of processing represent those of process technologies the <unk>.
Statement of operations for the three and 12 month periods. Since December 31, 2021, although it is a process technologies and only include the operating results of Moses.
For the period from December <unk> to December 31, 2021.
The balance sheet as of December 31, 2021 reflects the combined companies.
Now for our fourth quarter 2021 results total.
Total revenue equaled $1 $9 million compared with $5 9 million in the fourth quarter of 2024.
For the full year 2021, total revenue was $5 7 million.
Compared with $9 $1 million for the full year 2020.
Product revenue from the sale of our integrated circuits and modules was $1 9 million in the fourth quarter, primarily representing shipments of our millimeter wave RF products.
This compared with product revenue of zero point $3 million in the prior quarter, marking an increase of more than six <unk> on a year over year basis for.
For the full year 2021 product revenue was $4 $9 million up more than three times. The prior year revenue of $1 $5 million, we commenced selling millimeter wave modules. During 2021, and this was a driver of product growth for both the fourth quarter and full year 2021.
Licensing and other revenue for the fourth quarter of 2021 was negative $27000 compared with $5 $6 million in the fourth quarter of 2020.
Full year basis licensing and other revenues for 2021 were zero point $8 million compared with $7 $6 million for 2020 the.
The year over year on quarter over quarter decreases were primarily attributable to $5 million of nonrecurring license revenue recognized from our lead customer in the fourth quarter of 2020, combined with reduced nonrecurring engineering or an OE revenues.
Gross margin was 34% in the fourth quarter of 2021, compared with 89, 2% in the prior year quarter gross margin reflected lower contribution from high margin licensing and other non product revenue combined with cost related to the strategic transition towards selling and then wave modules.
For the full year 2021, gross margin was 42, 4% compared with 88% in 2020.
The year over year on quarter over quarter decreases in total gross margin were due to shifts in revenue as licensing and other non product revenue, which have high gross margins represented a lower percentage of total revenue in 2021 compared with 2020.
Product gross margin was 31, 4% in the fourth quarter of 2021, compared with negative 82% in the fourth quarter of 2020.
The improvement in product gross margin on a quarterly basis year over year was primarily due to the increased sales of our products, including our lead module customer commencing production, allowing us to achieve improved scale.
We expect gross margin improvement in 2022, as we expect increased revenue growth, which will enable higher levels of scale, which will allow us to capture additional cost reductions along with contribution from memory IC products, which generally carry gross margins exceeding 60%.
In terms of our GAAP operating expenses for the fourth quarter total operating expenses were $5 $3 million compared with $3 $3 million in the year ago period.
The year over year increase reflects higher personnel and consulting expenses and supported the growth of our business and development of our new modules and included <unk> $5 million of transaction costs related to the business combination.
On a full year basis, GAAP operating expenses were $18 $5 million versus the prior year at $15 5 million and included $1 $6 million of transaction costs related to the business combination.
Selling general and administrative or SG&A expenses for the fourth quarter of 2021 were $2 2 million.
Compared with $1 $5 million in the prior year period.
Research and development expenses for the fourth quarter of 2021 were $3 $1 million compared with $1 8 million in the prior year period.
On a non-GAAP basis total operating expenses for the fourth quarter of 2021 were $3 $7 million, which excludes stock based compensation amortization of intangible assets and transaction costs related to the business combination and the change in fair value of warrant liability.
This compared with $2 $1 million in the fourth quarter of 2020.
For the full year total non-GAAP operating expenses were $12 3 million compared with $13 $8 million for 2020.
On a GAAP basis net income for the fourth quarter of 2021 was $2 5 million or 28 cents per diluted share compared with net income of zero point $1 million or <unk> <unk> per diluted.
Sure in the fourth quarter of 2020.
On a non-GAAP basis net loss for the fourth quarter of 2021 was $3 9 million.
Or <unk> 70 per share, which excludes stock based compensation amortization of intangible assets business combination transaction costs and the change in fair value of warrant liability of $8 million.
This compared with non-GAAP net income of $1 $6 million or 25 cents per diluted share in the year ago period.
Adjusted EBITDA for the fourth quarter of 2021 was negative $2 $9 million compared with $3 4 million for the prior year.
For the full year of 2021, adjusted EBITDA was negative $8 8 million versus negative $5 1 million for the prior year adjusted.
Adjusted EBITDA is defined as GAAP net income or losses reported.
Stock based compensation amortization of reported intangibles business combination transaction costs.
The change in fair value of warrant liability interest expense depreciation and amortization and a provision for income taxes.
Now turning to the balance sheet as of December 31, 2021, our cash cash equivalents and investment balance was $18 1 million compared.
Compared with $1 7 million at December 31 'twenty.
The primary source of cash was the cash required for most as a result of the business combination.
As of December 31, 2021, the company had $19 8 million total shares outstanding which includes approximately 8 million exchangeable shares with the same rights as common shares which were issued by our Canadian subsidiary to certain Canadian stockholders of process technologies in connection with the business combination.
We also have $1 8 million shares which includes shares of our common stock and exchangeable shares escrowed pursuant to the terms of an escrow agreements that are subject to.
To offset by the company funding losses in accordance with the escrow agreement.
One 8 million shares will be released subject to any offset claim if the volume weighted average price of our common stock is at least $8 57 2020 trading.
Adding days within a period of 30 consecutive trading days during the three year period following the business combination.
Looking forward our current backlog provides us with excellent visibility for the first half of 2022.
And ongoing design wins are expected to bring continued product revenue growth.
In terms of guidance due to the impacts of the continued industry supply chain issues on product shipment timing, we are not providing quarterly guidance at this time.
This concludes my prepared remarks.
At this time I would like to turn the call back over to Ron for closing remarks.
Ron.
Thanks, Tim to summarize wireless bandwidth demand is increasing exponentially driven by a combination of new users and proliferation of video traffic.
Global carriers are spending billions of dollars to keep up with consumer video demand, but inevitably existing spectrum has definitive capacity limitations.
Millimeter wave technology has been built into the <unk> specification and is viewed by industry participants as the path forward to resolve spectrum shortages.
In fact, even early research into 16 that works as identified millimeter wave as the incumbent solution for resolving future frequency shortfalls.
Perazzo that's been working on MMA technologies, 2008, and is a leader in EM wave solutions, having invested millions of dollars in numerous years developing and <unk> technology. We believe we have established meaningful barriers to entry for our competitors Perazzo shipping <unk> technology in volume today.
And is engaged with customers across a variety of applications, including fixed wireless secure private networks consumer electronics and <unk> applications like <unk>.
I am pleased with the execution of the team in 2021 and the successful completion of the business combination with motors. We believe perazzo represents an excellent opportunity to participate in a broad adoption of millimeter wave technology.
And is poised for significant future growth.
Thank you for your participation in today's call and we would now like to open up the call to any questions operator.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key.
Then Thats star one on your telephone please standby, while we compile the Q&A roster.
Our first question comes from the line of David Williams of Benchmark. Your line is open.
Hey, good afternoon. Thanks for taking the question I certainly appreciate it and congrats on the closure of the combination and just the progress you've made.
Thanks, David I appreciate it.
Yes. So just wanted to ask maybe maybe quickly Ron I believe you had previously noted about that you guys kind of addressed that 28% to 39% gigahertz range or where we are in the <unk> kind of for the mobile space.
You talked about shipping in at today.
Good day, and just kind of curious if you could maybe walk us through the challenges between where you are currently shipping and then what are the real I guess technological hurdles to get to that maybe for the mobile side or for that that morphology.
Frequency range.
Sure Dan Thanks for thanks for joining the call today, well, we so we defined millimeter wave is 24 to 100 gigahertz.
So so today, we're shipping from 60 gigahertz.
Reducing the frequency for five G from some 24% to 43 gigahertz, so actually from a technology perspective.
This is in our wheelhouse.
So we actually think are experiencing 60 gig actually is a little more challenging than what we're what we're seeing in the <unk> space. So I think from a technology perspective.
It's in the same ballpark of what we're doing today, but certainly our experience.
That we've amassed over the last 12 years is completely applicable to everything we're doing it by Jeep.
Okay.
Okay fantastic.
And I think it's kind of interesting, but today I think Apple released a new lower end handset.
The lower end of the market for <unk>, and we're just starting to see that real proliferation of fiber.
<unk> handsets can you just kind of curious how you're thinking about the landscape and the development of the.
Adoption cycle and do you think we are in kind of that I guess that Chris.
Really tipping over when you start to see a lot more design activity on the maybe the EPS equipments in the fixed wireless that you talked about I don't know if he yeah. That's a that's a good question I mean I don't know if you saw verizon's announcement last week that their millimeter wave usage is up 856% year over year.
So.
My too sense is people are getting used to the benefits of five millimeter wave and <unk> I think specifically.
The carriers have talked about this 10 X performance millimeter wave is the way you get the Tenex performance and I and I and I believe you know the more people use millimeter wave and get used to millimeter wave will really help that proliferation amongst the carriers. So I think we're starting to see that trend I was really impressed to see that 856% growth.
And millimeter wave usage from from Horizon last week, so that was very encouraging for us.
Fantastic I had not seen that thanks for pointing it out.
And then maybe just one quick last one for Jim, but just kind of thinking about the balance sheet and your ability to really pursue a lot of the opportunities that are in front of you. How do you think about maybe where the balance sheet is in your burn rate about $35 million do you think you have the flexibility to develop in and really drive the resources that you need and what are the puts and takes.
Or how should we think about that balance sheet over the next 12 to 18 months.
Yeah sure David we believe that we have adequate cash on hand to support our current business plan.
We are obviously have a.
Our suite of products on the millimeter wave side.
As well as the product line the memory product line that came along with the with most of it. So we have kind of a full set of products to sell obviously it's.
With the market expanding the way it is for <unk>, we want to make sure we continue to invest.
But you know given the current current market conditions et cetera, we want to make sure we can get quite far with the cash we have.
And get us to where we need to go.
Great Fantastic.
More quick one if I can real quick, but just kind of curious now that you've closed the combination have there been any surprises either positive or negative side in terms of what the margins could contribute.
I'll start off and then let Ron Ron comment.
For the most of the side as I pointed out the results here for the quarter included.
A very minimal amount you know two weeks of revenue for most of this call it somewhere around a quarter of a million dollars for that two week period.
Right now based on our clog and visibility.
We're pleased with the outlook for most of this month.
This memory products.
What we've seen from.
Some customers have put on our backlog.
In addition, there is a couple of new design wins that you know those turning on or beyond our control, but we're keeping a close eye and we've shipped some initial pre production quantities.
Key point here is that those.
We have the existing products have been selling them, we have the design wins and the customers and they carry 60% plus gross margin. So I don't want to speak for Ron but I'm pleased for the outlook.
For that.
Product line to contribute nicely in 2020 22 Ron.
Just to just to expand on that I mean, I wouldn't say, there's any surprises, but it's definitely a pleasant surprise surprise on the upside right on the on the memory business for 2022 so.
Yeah, obviously very positive.
Thanks, So much everyone for taking the time and best of luck on the quarter.
Thanks, Thanks, David.
Thank you again to ask a question. Please press star one on your Touchtone telephone again, that's star one on your Touchtone telephone to ask a question.
And as there are no further questions in queue. At this time I would like to conclude today's conference call. Thank you for participating you may now disconnect.
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