Q1 2022 Lattice Semiconductor Corp Earnings Call
Good day, and thank you for standing by and welcome to the lattice semiconductor Corporation's first quarter of 'twenty 'twenty. Two conference calls at this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during this session.
We'll need to press star one on your telephone. In addition, if you require any assistance. Please press star Zero now is my pleasure to hand, the conference over to your first speaker today, Rick Boucher Senior director of Investor Relations. Thank you. Please go ahead.
You operator, and good afternoon, everyone with me today are Jim Anderson, <unk>, President and CEO and Sherri Luther <unk> CFO will provide a financial and business review of the first quarter of 2022, and the business outlook for the second quarter of 2022.
If you have not obtained a copy of our earnings press release. It can be found at our company website in the Investor Relations section at latest semi dot com.
I'd like to remind everyone that during our conference call today, we may make projections or other forward looking statements regarding future events or the future financial performance of the company.
Wish to caution you that such statements are predictions based on information that is currently available and actual results may differ materially.
We refer you to the documents that the company files with the SEC, including our 10, Ks 10, Qs and eight Ks.
These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward looking statements.
This call includes and constitutes the company's official guidance for the second quarter of 2022, if at any time. After this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call.
We will refer primarily to non-GAAP financial measures. During this call by disclosing certain non-GAAP information management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends.
For historical periods, we provided reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latest semi dot com.
Let me now turn the call over to our CEO Jim Anderson.
Thank you Rick and thank you everyone for joining us on our call today, we had a strong start to the year with our Q1 revenue growing at 30% year over year, and our Q1 non-GAAP net income growing at 72% year over year, our strong revenue and profit growth was driven by our strategic focus and expansion in secular growth markets.
Our rapidly expanding product portfolio and our relentless focus on execution.
We see growing momentum across our customer base, where we're increasing our share of wallet with our strategic customers and experiencing an acceleration of customer conversions to wireless products.
Let me now touch on a few highlights from Q1 of 'twenty two.
Coming off a strong Q4, we grew revenue 6% sequentially in Q1 with double digit year over year growth in each of our three market segments. We expanded non-GAAP gross margin by 600 basis points year over year to a record 67, 7% in Q1, which marks the beginning of our fourth year of X.
<unk> on the gross margin expansion strategy that we established at the beginning of 2019.
We achieved record non-GAAP operating profit of 36, 3% an increase of 830 basis points year over year.
I'm pleased to announce that <unk> began production shipments in Q1, which is our fourth nexus device family to enter production.
Let me now provide an overview of our business by end market.
In the communications and computing market revenue increased 4% sequentially and 27% on a year over year basis.
As we've highlighted previously our key growth drivers include datacenter servers client computing and <unk> infrastructure in.
In servers, our attach rate has grown to over onex and we expect this growth trend to continue as new server architectures provide laddish with more opportunities to increase content.
In client computing, the Lenovo Thinkpad design that we announced at CES is now in production and we expect additional customer platforms to begin ramping in the coming quarters in.
In <unk> infrastructure, we continue to benefit from this long term opportunity given our higher content in <unk> versus <unk> systems, and the continued worldwide build out of <unk> infrastructure.
Turning now to the industrial and automotive market revenue increased 16% sequentially and was up 40% on a year over year basis Q1 growth in the industrial segment reflects strong customer adoption in a broad range of applications, including industrial automation and robotics as.
As we've discussed in prior calls we are seeing an accelerated pace of our customers converting designs from our competitors' FPGA or microcontroller to a lattice FPGA customers are convenient designs to allowed us to take advantage of the market, leading power efficiency flexibility and software content that we provide the.
<unk> pace of design conversions contributed to the strong revenue growth.
In Q1.
We're also pleased with our strong growth in automotive applications our growth in automotive is driven by the ramp of new flattish designs in Adas and infotainment applications.
Turning now to consumer revenue increased 15% sequentially and 19% year over year.
Revenue growth is primarily driven by new applications, such as smart home and pro Sumer that leverage our differentiated FPGA portfolio.
I'll now provide some product roadmap highlights.
Since the introduction of lattice and access we've launched four device families based on the platform <unk> Pro Nx entered production in Q1 and provides better power efficiency best.
Best in class system bandwidth and a much smaller footprint than competitive devices. We now have four nexus device families in production and ramping with customers and we have additional nexus devices planned for launch over the coming quarters. We continue to be pleased with the broad adoption of our <unk> platform across all our market segments.
<unk>.
We're also excited about our upcoming lattice of bond platform.
And we will double our addressable market. It has five extra capacity of our Nexus platform.
Allow us to address mid range FPGA applications customer engagement and momentum continues to grow in a bind to create an additional new revenue stream for lattice with Asps that are 10 to 20 times higher than our current asps.
When it begins ramping into production.
Execution remains on track for launch in the second half of this year and we expect to hold a public event for our customers and partners in Q4 of this year.
Turning now to our software strategy as we've discussed previously we've been increasing investments in our software portfolio.
Our fifth solution stack will be focused on <unk> applications and is expected to launch in Q2.
Beyond the continued expansion of our software solutions tax we're pleased that the integration of the mirror metrics acquisition that we completed in Q4 2021 is already starting to open new customer and market opportunities for lattice.
In summary, we're very pleased with our outstanding results in Q1.
These results are directly attributed to our focus on the right growth markets are rapidly expanding product portfolio and the consistent execution of our strategy.
We're off to a strong start in Q1, and we continue to expect 2022 to be another robust year of growth for lattice I will now turn the call over to our CFO Sherri Luther. Thank you again.
We are pleased with our strong Q1 financial results, we drove strong double digit year over year revenue growth significantly expanded gross margin and <unk>.
Our record profitability.
We generated strong free cash flow, while continuing to invest in our long term product roadmap.
We also returned cash to our shareholders through share buybacks let.
Let me now provide a summary of our results first quarter revenue was $155 million up 6% sequentially from the fourth quarter and up 30% year over year.
Revenue grew double digits year over year in all three of our end markets with sequential growth as well.
It was down sequentially.
Our non-GAAP gross margin increased 260 basis points to a record 67, 7% in Q1 compared to the prior quarter and was up 600 basis points compared to the year ago quarter.
Both sequential and year over year increases in gross margin continued to be driven by strong execution of our gross margin expansion strategy, which we started in early 2019.
non-GAAP operating expenses were $47 2 million compared to $45 8 million in the prior quarter and $38 9 million in the year ago quarter as we continue to invest in our hardware and software portfolio.
Our non-GAAP operating margin increased 340 basis points to a record 36, 3% in Q1 compared to the prior quarter and was up 830 basis points compared to the year ago quarter.
We continue to balance operating margin expansion with investments that will drive lattices long term revenue growth.
Q1, non-GAAP earnings per diluted share with <unk> 37, compared to 22 in the year ago quarter, which represents 72% year over year growth.
We continue to focus on strong cash generation and in Q1 drove a 47% year over year increase in operating cash flow.
We ended the quarter with $123 million in cash after repurchasing approximately 245000 shares or $15 million in stock under our existing buyback program.
This was our sixth consecutive quarter of executing share buybacks.
Let me now review our outlook for the second quarter.
Revenue for the second quarter of 2022 is expected to be between $153 million and $163 million.
Gross margin is expected to be 68% plus or minus 1% on a non-GAAP basis.
Total operating expenses for the second quarter are expected to be between $48 million and $50 million on a non-GAAP basis.
In closing we are pleased with our strong financial results and continued execution to our financial model.
We remain focused on driving sustained revenue growth and profit expansion led by our strong position and growing end markets and our expanding leadership product portfolio. Operator, we can now open the call for questions.
Thank you ma'am, we will now begin the question and answer session. If you would like to ask a question. Please press star one on your telephone Keypad again press star followed by the number one on your telephone keypad.
Please standby, while we compile the Q&A roster.
Your first question is from the line of Alessandra Vecchi with William Blair. Please go ahead.
Hey, everyone first off congratulations on a super strong execution in a tough environment.
With that you guys are clearly seeing strong growth entering the year can you give us a little more color on what's driving that growth is it just it sounds and share gain oriented.
And then additionally, now with four Nexus device product families.
Can you give us any insight into what percentage of total revenue Nexus now is.
And how much of the growth has been from core versus Nixon.
Yes. Thanks for the question Alex appreciate it yes, we are very pleased with the.
The growth that we saw in Q1, 30% year over year growth and that was actually after.
Pretty strong year last year last year I think our revenue grew about 26%. So we clearly are entering the year with a very strong revenue growth in Q1.
Maybe I'll touch on kind of a couple of different factors, maybe first from a market perspective, and then maybe from a product perspective of kind of what's driving that growth underneath so first of all from a market perspective again, we continue to see very strong growth in comms and computing.
In fact, the last three years in a row that segment has grown double digits in each one of the last three years and again in Q1, we saw about 27% year over year growth in that segment and we're seeing growth from <unk> wireless infrastructure servers, where our dollars of content per server continues to.
Fans and also growth in client computing as well.
And then also very pleased with our other big strategic segment, which is industrial and automotive and the performance in that segment, we saw a 40% year over year growth in Q1 and again after a very strong year last year. In fact that segment grew 34% last year. So again.
Strong performance entering the year and then in industrial and automotive we continue to see growth in applications like industrial automation robotics, automotive electronics and as I mentioned in the prepared remarks, one of the things that we're really pleased to see in that segment is.
A faster conversion.
That our customers are driving away from competitive devices towards lattice FPGA. So we see an accelerated conversion there in that segment and Thats certainly.
Helped drive results higher in Q1, and so we're really pleased with the performance of that segment as well and then from a product perspective, if we look at it on the other dimension of product.
Clearly, we have new product cycles that are helping drive growth.
<unk> now we've entered.
We've put in place our fourth.
Alex that's now in production based on the Nexus platform. The most recent one entering production in Q1, so that product platform continues to ramp with our customers. In fact last year was just the first year first full year of revenue from Nexus, we expect <unk> to grow again, this year and really we see that as a multi year growth.
So new product cycles with Nexus and you can expect new.
Additional nexus devices to be coming in in the coming future quarters, and then of course moving out in time, we've got a bond to ahead of us as well.
We're on we're tracking to launch a bond in the second half of this year and that will add a new revenue stream in the future. So multiple new product cycles, and then our <unk> products continue to grow very well as well we've seen very strong growth from pre in excess.
So multiple growth drivers both from a product perspective or from a market perspective.
As we enter 2022.
That was really helpful. Thank you and then maybe just a follow up for Sherri.
In a similar vein.
On the gross margin front, if I back out the.
Politics and lie.
Licensing and services.
Very strong product gross margin for Q1.
I think up 400 basis points sequentially and the implication is that for another 200 basis points.
In Q2 can you give us any more color into sort of the underlying.
Drivers of that whether it's mix next steps.
Some of the strategic changes you guys have made internally over the last year plus.
And where we should is this a new sort of baseline gross margin going forward.
Yeah. Thank you Alex for the question. So we're really pleased with the results of our gross margin expansion you talked about the project gross margin you're right that the 400 basis points sequentially sequentially at 660 basis points year over year. Our total gross margin Inc. All in is showed an improvement of 260.
Basis points sequentially, and 600 basis points year over year. So we're really pleased with that progress.
Just as a reminder that back end in 2019, we had laid out our gross margin expansion strategy that we've been executing on as Jim mentioned in his opening comments that we're entering our fourth year now and so when you look at that improvement in gross margin.
Increasing by an order of magnitude of 300 basis points each year. So it's been a total improvement of over 1000 basis points. Since 2018, So I'm really pleased with that it's coming from many factors are really driving that pricing optimization is really the main factor right now and we're also having.
Seeing contributions from mix as well as higher margins on our newer products. So all of those factors are really coming into play.
And when you look at your the midpoint of our guide I mean, you see it.
We're continuing to execute on gross margin expansion.
Next enter into our Q2 quarter as well.
Great. Thank you.
I'll jump back into queue.
Operator did you have the next question.
They're having any difficulty with the line right now.
David Williams can you hear.
Yes, Okay. David you should go ahead and ask your question. Please.
Okay, great. Thank you hey, congrats on the progress and the execution here, it's been nice to see the the <unk>.
<unk> and the consistency.
Just wanted to see maybe if you could talk more about the durability of the demand that youre seeing where the growth maybe within the industrial and the automotive it sounds like your customers are converting more quickly is there maybe any color around that conversion cycle or maybe what's driving that.
We might find helpful.
Yeah. Thanks, David Yeah, again as I said, we're just really pleased with the progress in that segment. The strong growth that we saw last year and into Q1 of this year.
What we're seeing is customers in the industrial and automotive segment, and again industrial and think of applications like industrial automation robotics automotive electronics.
First of all those customers you are seeing in the portfolio that we have today and the roadmap moving forward and they are just seeing that as an incredibly competitive strong product offering that we have today in a very very strong product roadmap moving forward, where we're continuing to expand out our product offering right now with nexus in the future.
With a bond and so the customers are seeing that and are really excited about driving a strategic multi generational transition to lattice overtime and if you look at the products today like in excess if you look at some of the competitive.
Stats.
<unk> very excited about the fact that from a nexus device versus a competitor's FPGA that can get four times and the power efficiency and it can get orders of magnitude better reliability, and we're bringing a tremendous amount of software content with those devices as well so that really helps our customers in terms of it helps them switched our devices that help.
Some get up and running quickly and get to market quickly and that software also helps the device be.
Be sticky over time, so we're seeing customers really motivated to switch primarily for the technical or product benefits, but I think what what's happened more recently that we've seen.
Kind of catalyze or accelerate that is low same customers have also really appreciated how we've supported them.
Through this supply constrained environment that you've seen us do a good job of supporting.
Their supply needs and so I think thats also catalyze them to drive that transition faster than what they might have originally been planning and so we are seeing.
And acceleration there I was actually just an anecdotal comment I was actually in Europe , just a couple of weeks ago spending a lot of time with our European industrial and automotive customers and just fantastic momentum with those.
Big industrial and automotive customers and again discussions around strategic multi generational transition lattice devices. So we see this as a very durable shift share end to end revenue towards flattish over time.
Perfect.
And then maybe from a supply chain standpoint anything there that you are saying either improve or deteriorate just.
Just kind of given what's going on in the world today and the issues in China and of course in Russia can you talk maybe to your supply chain challenges or improvement or maybe deterioration you're seeing.
Yes, certainly at an industry level, the semiconductor supply chain, certainly remains tight and I think.
At an industry level. The expectation is it remains tight through the end of this year and actually well into next year now latter specifically I think we've done a really good job navigating those supply chain constraints for our customers and I actually want to take the opportunity to really thank our supply chain operations.
Because I think over the last two years, we've done a really great job supporting our customers and.
So I think if you asked our customers I think they would say that we've done.
Quite a good job of supporting them and our intention is to continue that we're certainly not immune to the supply chain tightness and there can be.
Tightness on particular semiconductor package combinations, but overall I think we're doing a good job supporting them some.
The more recent potential.
Potential supply chain disruptions that you mentioned.
Terms of the Russia, Ukraine conflict, we haven't seen any any disruption to our supply chain due to that we've been working really carefully with our suppliers to make sure we understand any potential disruptions, but we haven't seen any any material.
Supply disruptions due to that due to that conflict, but something we're certainly monitoring and moving forward and then I think you also mentioned in China. Some of the Covid related Lockdowns and some of the things that we're seeing in Shanghai.
Again, we haven't seen any significant disruption to our supply chain, our supply chain or primary supply chain is outside of China. So it is not located inside of China.
There may be secondary effects, if we are suppliers to our suppliers.
That have part of their supply chain in China, but in terms of our primary supply chain, we haven't seen any.
Impact, although it's something that we're monitoring again very carefully and making sure we understand and we're carefully with our suppliers, but but no significant disruption that we've seen to date.
Great. Thanks, so much for that certainly appreciate it and thanks for the time.
Thanks, David.
Once again, ladies and gentlemen, if you have a question you May press star one on your telephone keypad again Thats star one on your telephone keypad.
Your next question is from Lucas go ahead with Rosenblatt Securities. Please go ahead.
Hi, everyone. Thanks. This is Lucas Cohen I'm, calling in for Hamzah. Thanks for letting me to ask a question here and again congrats on the great results I wanted to know what the mid range FPGA parts look like in terms of a ramp for the second half of the year. I know you can kind of touch upon a little bit, but I wanted to get some more insight there.
Yes, no problem Lucas. Thanks for the question. So avant is the name of the platform for midrange FPGA offering as I mentioned in the prepared remarks.
<unk> is on track to launch in the second half of this year and what <unk> brings to the market is.
If you compare it to the Nexus devices that we have in production today avant capacity or capability is about five <unk> five times the capability of Nexus and so it'll allow us to address applications in the midrange portion of the FPGA market and that will roughly double our addressable market and that also as well.
Products begin to ramp into production that will create an entirely additive new revenue stream for for lattice because that's in a market that we don't serve today in terms of the timing of that.
That ramp.
Launch in the second half of this year and generally we would expect to start to see revenue 12 to 18 months. After the initial launch so that would put revenue maybe some at the towards the end of 2023, but it would have a more material impact in 2024, so that's kind of our expectation in that.
Based on the experience that we saw with our Nexus devices. That's a similar ramp timing based on launch that we saw after nexus, but avant is definitely something we're very excited about I can tell you. The sales team is extremely excited because they're working with our customers on.
The <unk> design wins and design ins and then the engineering team also very excited but yes, it's something we're really looking forward to for the second half of this year. Thanks Lucas.
Thank you.
And maybe as an unrelated follow up question I'm, just curious about the upfront and availability and backend at Samsung.
Yes, sure. It's our Nexus products that are based on the Samsung foundry, we do have multiple foundries that we utilize TSMC UMC and Samsung Nexus products are based on the Samsung foundry 28 nanometer.
And we've been able to support our customers very well Nexus has contributed.
<unk> contributed to growth that we saw last year Nexus contributed again to growth that we saw in Q1 and I think we've done a good job of supporting our customers and we certainly expect that to continue.
Thank you.
Thanks Lucas.
Once again, ladies and gentlemen, if you have a question. Please press star one now again that star one on your telephone keypad.
Your next question is from Christopher Rolland with Susquehanna. Please go ahead.
Hi, This is stock Sunshine on behalf of Chris.
You guys talked about supplies earlier, but I wanted to ask about demand specifically.
Last year, you shipped about a third of your revenue to a distributor in Taiwan. So.
Im curious if youre seeing any changes in the demand patterns in Asia, and specifically in the greater China region. Thank you.
Yes. Thank you so we haven't seen any significant shifts in demand.
We saw good growth across all regions last year, we're expecting all of our major geographical regions to to grow again. This year, we're not seeing any significant.
Demand shifts from a year over year perspective, when we look towards the demand or the backlog that we have for 2022.
And.
There can be since you brought up.
Distributor revenue there can be some fluctuations from quarter to quarter in terms of.
Which which products shipped which distributor and things like that but when we look at that kind of macro geo level, we haven't seen any significant shifts.
Thank you and as a follow up.
I also wanted to ask about Opex.
I think you guys got a 35% long term guide, but you've been underspending in the recent quarters at around low thirty's.
That's obviously been a positive to the bottom line, but would you say this is the new normal or should we expect some sort of a step up at some point in the future. Thank you.
Yeah sure. Thank you. Thank you that's all I had a question so opex target as you as you indicated with.
35% that we rolled out last year when.
When you look at our Opex sell in particular, our R&D spend is something that we've talked about for quite some time now that we have a bias.
Investing in our long term product portfolio. When you look at our R&D spend you see that year over year, our R&D has increased 30%.
And so that's really a testament to the new product launches that we've announced are platforms that we're excited about our bond launch in the second half of this year, so I'm really continuing to invest in that loan.
From an SG&A perspective demand creation is also very important for us to support the future growth of the company and so year over year that has also increased 12% so well below our target on Lee feel likely are investing the right amount in the business and we'll continue to do that to drive the long term growth of the company.
Thank you.
Okay.
And your final question is from Matt Ramsey with Cowen. Please go ahead.
Thank you very much congratulations on the results good afternoon.
I apologize guys.
Maybe been asked there's there's a bunch of companies reporting at the same time here Tonight, So bear with us.
Jim I wanted to ask you about the progress and the contribution of your business selling into notebook I know there was.
A deal that you guys had announced publicly with Lenovo and pursuing other opportunities. There. If you could give us any color on sort of the magnitude of the contribution of that.
Those new wins.
Any description on the pipeline of engagements you have there would be helpful. Thank you.
Yeah. Thanks, Matt So first of all just when we look at last year, just as a basis.
Comms and computing.
Last year grow at I believe it was about 25% and certainly the <unk>.
Client computing segment was a good contributor to that we had a number of <unk>.
Platforms that we're ramping into production and then more recently at CES, We announced a partnership with Lenovo on their thinkpad platform that we're really pleased with that platform has now entered production and is ramping and Thats platform, where we're we're delivering artificial intelligence processing capability with our FPGA and are soft.
Where that sits above and that AI capability is used to provide a whole bunch of really key.
Cool user experiences things like.
You walk away from your laptop or chip can detect that screen.
Screens, so that it saves power or saves battery life by demean the screen.
We can detect shoulder surfing.
To improve the security of the system in a number of other capabilities that we can bring to the system as well. So we're really excited about that Lenovo thinkpad.
Partnership and as I said that'll be ramping throughout this year and then there are additional other customer OEM platforms that are in the pipeline that we're working on and.
You can expect to hear more about that in the coming quarters as those reach production, but we're really excited about the pipeline and if I just step back a little bit we see this as a really good long term growth opportunity for the company. Because this is really greenfield growth and a huge market. If you look at the PC market.
It's a system, it's a system Tam of over 300 million units a year and so that is a large potential Tam unit Tam for us and we're just kind of at the early stages of penetrating this market and so we see it as a very large growth opportunity for us where we're bringing really unique.
Capabilities. So we think are going to become really standardized across PC platforms in the coming years, So something we're pretty excited about.
No. Thank you for that Jim.
As my follow up question I wanted to ask.
The data center in the server business for you guys there.
Obviously.
So we've seen through this earning cycle. So far it's a reiteration of pretty positive capex numbers from a lot of the hyperscale folks.
And there is no secret that their server launches coming with brand new sockets on platforms from from both Intel and AMD.
We move through the year, so I know the penetration level in terms of unit attach is pretty high in your business right now, but I think theres some content.
Spansion opportunities that are still on the come there. So if you can just kind of characterize how youre thinking about that business contributing to growth Jim that would be really helpful. Thank you very much.
Yes, Thanks, Matt definitely we see comms and computing of which servers as one of our key growth areas underneath <unk>. So it can be and we see that as a continued growth area for the company actually if you look over the last three years that segment has grown double digits in each of the last three years and a lot of that growth has been driven by our continued expansion.
In the server segment, where we're expanding our average dollars of kind of dollars of content per.
<unk> system, and we see that continuing to grow well.
See bolt attach rate and ESP growth moving forward.
Some of the new server architectures that are coming out we.
We see additional opportunities for more latter silicon more latter sockets, we expect our attach rate, which is already above onex to continue to grow and then.
We expect our asps to continue to grow as well as we're being more capability more content with each new server generation and as I've said before.
Our products our CPU agnostic.
So whether it's Intel processor in AMD processor or an arm processor.
Capabilities and functions that we bring to the to the platform work equally well across all of those architectures and in fact, most of our customers when we engage with them whether they are kind of traditional enterprise server vendors or hyperscale server vendors, what they'll do is they'll use kind of the same latest solution for.
Control and management and security of the server system they'll use the same sub.
Sub system based on latest our Prost different CPU architectures, so they'll use that lattice design across Bolton, Intel and AMD and arm based server design as well and so we feel really good about the continued expansion in that segment and that's certainly been a key growth area for us over the last few years, but we see.
A lot of headroom for growth moving forward as well.
And that concludes our question and answer session I will now turn the call back to <unk> CEO , Jim Anderson for summary, our final comments.
Yes, Thank you operator, and thanks, everybody for being on the call with US today. So first of all really happy to have kicked off the year with really strong results of the 30% year over year growth. After what was a very strong year last year and again, we continue to see strong growth from our two big strategic segments of communications at <unk>.
<unk> and industrial and automotive when we talked to a number of those growth factors today and then also key product cycles that are helping drive growth. Our <unk> products are growing our <unk> products are still in early ramp state and we expect those to ramp over the coming years, and then the bond product ramp.
Still out ahead of us. So we're really excited about the future growth of the company and look forward to providing more updates at our next earnings call. Operator that concludes today's call. Thank.
Thank you Sir.
All participants. Thank you for joining this concludes today's conference call you may now disconnect.
Good.
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