Q1 2022 SiTime Corp Earnings Call
Good afternoon, and welcome to Triton.
222 financial results conference call at this time, all participants are in a listen only mode.
At the conclusion of today's conference call instructions will be given for the question and answer session. If anyone needs assistance at any time during the conference call. Please press the Sparky followed by the zero on your Touchtone phone.
Minder. This conference call is being recorded today Wednesday may four 2022.
I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations Brett. Please go ahead.
Good afternoon, and welcome to <unk> first quarter 2022 financial results Conference call on today's call from <unk> are <unk> <unk> Chief executive.
Dave Officer, and Art Chadwick, Chief Financial Officer, before we begin I'd like to point out that during the course of this call. The company may make forward looking statements regarding expected future results, including financial position strategy and plans future operations, the timing market and other areas of discussion it is not possible for the company's management.
<unk> all risks nor can the company assess the impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements in light of these risks uncertainties and assumptions. The forward looking events discussed during this call may not occur and actual results could.
Differ materially and adversely from those anticipated or implied neither the company nor any person assumes responsibility for the accuracy and completeness of the forward looking statements. The company undertakes no obligation to publicly update forward looking statements for any reason after the date of this call to conform these statements to actual results or to changes in the companys.
Expectations.
For more detailed information on risks associated with the business. We refer you to the risk factors described in the 10-K filed on February 25, 2022, as well as the company's subsequent filings with the SEC also during this call we refer to certain non-GAAP financial measures, which are considered to be important measures of the company.
<unk> performance. These non-GAAP financial measures are provided in addition to and not as a substitute for nor superior to measures of financial performance prepared in accordance with U S. GAAP.
The only difference between GAAP and non-GAAP results is stock based compensation expense and related payroll taxes. Please refer to the company's press release issued today for a detailed reconciliation.
Between the GAAP and non-GAAP financial results with that I'd now like to turn the call over to rejection. Please go ahead.
Good afternoon, and thank you for joining on today's call.
Before I talk about <unk> performance I'd like to make a few comments about the war in Ukraine and the impact on pipeline.
We've had an office.
Ukraine for more than 15 years, and it's an important location for us.
Despite the wall.
Wanted to report that our entire Ukrainian team as the main productive with high morale.
I admire the courage and dedication and the single minded focus that they have put into their work without being asked to do so.
For our part we are providing and we will continue to provide maximum logistical financial emotional support.
Ukrainian employees in their pharmacies.
This is behavior that is central to the culture and integrity of the company and as the employees tell me, it's one of the key reasons.
Why that employees joined <unk> guidance and still in that pipeline.
Turning to our results we had a great first quarter.
<unk> business is exceptionally strong underpinned by macro trends such as connectivity cloud application Aaas, and AI, which I believe will continue to drive worldwide growth across industries for multiple decades to come.
<unk> with a singular focus on precision timing a category, we pioneered and we are leading is a wonderful place to capitalize on it.
Precision timing, we of course service customers with significantly improved products from <unk> that customers are unable to get from traditional suppliers.
Additionally, however.
With the launch of products like an index.
We are creating new categories of precision timing and these categories that we are creating new markets and new demand for our products.
This is being recognized by customers leading to a significant increase in our opportunity funnel.
As well as driving our average price is higher in 2022 across our major product lines.
The more we look the board business. We find an example is in the automotive segment, which is one of our fastest growing markets and where we continue to build a $100 million business over the coming years.
We are well on our way with automotive revenue is expected to double this year over 2021.
Same dynamics that work in data center and enterprise, we've continued to see strong growth here and again revenues. This year are expected to double over 2021.
As cloud services providers expand and add new advanced features precision timing again becomes critical for increasing bandwidth and lowering latencies.
The same demand for precision timing is getting that strength in aerospace and defense.
With some of the unique products that we are creating we expect to see here to $100 million business in the coming years.
In summer 2019, we introduced our enduro line of products for this market creating.
Creating specialized products that are specifically oriented towards mission critical electronic equipment in aerospace defense and satellite communications.
These devices must be reliably operate in the harshest of environment.
Compared to and compared to quarters based alternative.
<unk> and Euro solutions provides up to 50 times better performance in such environments, making it the preferred choice for these applications.
In 2020, the second half we introduced our first clocking product family the Cascade product line.
I'm, especially pleased that in the past few quarters, we've seen a huge upsurge in customer activity based on the performance and delivery of the Cascade product line with the result that customer traction that would normally take 24 months.
Has been compressed to a few quarters.
As a metric.
We have over 100 customers to date, and our Cascade product line and anticipate reaching 200 customers by the end of the year doubling in effect.
Mechanic high reliability and resilience are clocking chips are being used across more than 20 applications that include switches radios satellite communications video power grid, and we are getting new opportunities weekly you can tell that we're excited about our cloud business not only because of.
<unk> strength, but also because we have several new clocking products under development that we will be introducing over the coming quarters.
Being a very strong business.
Sure.
Years to come.
As I mentioned in the past <unk> is a product innovation company and we are meaningfully increasing our investment into new product development. Because this is a golden chance for us to seize.
The high ground in precision timing.
We expect to introduce a total of six new products this year and more next year.
With these new products. We believe we expect that our served available market fam as it's known will grow from $1 billion. In 2020 124 billion per year in 2024 out of a $10 billion per year total available market.
Recently, we introduced one of these new products are elite ex Super Super.
<unk>, so that I've mentioned earlier.
Believe that this platform is a true green changes for edge networks as it delivers tremendous value to times better stability 30 times better reliability.
To X smaller Forex lower power you can see that there are applications that need these features.
Such as edge data centers <unk> front haul connected cars industrial Iot to name a few.
As with all of <unk> devices.
Our elite X product is fully programmable.
Within a very wide range of parameters and this unique capability allows one product.
To address countless applications, which you can understand would be very important in a supply challenged environment as well at the same time, while giving the customer exactly the product they want.
Our consistent outperformance and increased growth expectations for 2022 are indisputable evidence that <unk> growth trajectory is accelerating.
This is being driven by a powerful combination of secular trends in rapidly growing and markets are expanding high value product offerings and roadmap at our aggressive customer acquisition strategy.
We look forward to extending the success for years to come.
And I will now turn this over to art Chadwick.
Great. Thanks, <unk> and good afternoon, everyone. Today, I will discuss first quarter financial results and provide some guidance for the second quarter and full year 2022.
Because my discussion on non-GAAP financial results and refer you to today's press release for a detailed description of our GAAP results as well as a reconciliation of GAAP to non-GAAP results.
As we just just pointed out we continue to experience exceptional strength in our business and had a very strong first quarter.
Revenue in the first quarter with $73 million up 98% over the same quarter last year.
Sales increased significantly year over year in each of our major market segments.
Sales into mobile Iot and consumer which consists of sales into mobile phones wearable devices and consumer products was 30.0 million or 43% of sales.
This was down 28% sequentially due to seasonality, but up 34% over the same quarter last year.
Sales into industrial automotive and aerospace, which includes sales into auto industrial medical aerospace military and broad based sales were $27 6 million or.
Or 39% of sales.
This was up 20% sequentially and up 280% year over year.
Sales in the Comms and enterprise, which consists of wireless infrastructure, including <unk> data center and networking were $12 6 million or 18% of sales. This was up 15% sequentially and up 117% year over year.
Sales to our largest end customer accounted for 18% of sales.
Gross margins were 65, 3%.
Up more than 10 points from a year ago.
non-GAAP operating expenses were $24 6 million.
Up from Q4, as we continue to expand our workforce and increase the cadence of new product development.
R&D expenses were $14 4 million and SG&A expenses were $10 2 million.
non-GAAP operating margins were 33% nearly three times higher than they were in the year ago quarter.
non-GAAP net income was $21 $3 million or <unk> 94 per share.
Just $3 9 million or <unk> 22 per share last year.
Stock based compensation expense increased to $15 $2 million due to beginning of the year employee refresh and new hire grants.
Receivables were $30 7 million with Dsos of 39 days the lowest DSO is in our history.
Inventory increased to $38 million as we ramp production to support second quarter sales.
Yes.
We generated $20 million in positive cash flow from operations invested $8 million in equipment and assets and ended the quarter with 571 $4 million in cash and no bank debt.
I would now like to provide some guidance for the second quarter and full year 2022.
To begin with we expect 2022 will be another great year for the company.
Market trends that require precision timing are stronger than ever and we continue to have excellent visibility well into the year.
We continue to target high growth market segments, including <unk> connectivity data center automotive aerospace along with other markets that require advanced timing solutions.
We now expect revenue will grow by at least 50% this year.
Furthermore, we expect gross margins will remain strong in the mid sixties with operating margins of at least 30%.
For the second quarter, we expect revenue will increase between 8% and 12% sequentially, which at the midpoint would be approximately $77 million.
On our last conference call I commented that wafer costs will increase this quarter and that remains true.
However, we have been aggressively working on reducing product cost by improving test yields.
<unk> backend throughput and reducing package cost.
These product cost reductions.
Along with higher volume and a favorable mix should more than offset the higher wafer costs.
We now believe gross margins in the second quarter will be as high or higher than in Q1.
We are increasing operating expenses as we continued to expand our workforce and increased spending on new product development.
But we plan to manage that growth to be commensurate with top line sequential growth.
Therefore, we expect operating expenses in the second quarter will increase between 8% and 12.
And 12% sequentially, which at the midpoint would be approximately $27 million.
Basic share count in the second quarter will be approximately 21.0 million shares the dilutive effect of employee Rs use will add an additional 2.0 million shares taken the total diluted share count to approximately 23.0 million shares.
The resulting non-GAAP EPS will be approximately $1 a share plus or minus.
I'd now like to make a few comments about the prospectus, we filed with the SEC today.
First a little background.
When <unk> went public in November 2019, we granted Rs use which stands for restricted stock units to employees of the company.
Because I always use that on a quarterly basis over four to five years.
Stock best each quarter gets deposited into each employee stock account receipt of that stock is taxable income to the employee.
That day and the company is obligated to immediately withhold income taxes.
To collect those taxes shares are automatically sold from each employee account to cover their tax obligation and the proceeds remitted to the tax authorities.
Yes.
The issue we have is that the stock vesting happens for all employees on the same day once each quarter.
Sale of that stock all at the same time can cause volatility in our stock.
To avoid this we have now entered into what's called an at the market sales agreement with Stifel Nicholas and filed a prospectus supplement with the SEC relating to that sales agreement.
So going forward, we now plan to withhold that portion of the employee shares needed to cover taxes and use a sales agreement to sell those shares directly into the market.
We believe this should allow for a much more orderly sale of stock and reduce volatility.
The proceeds of those sales will then be used to satisfy the employee tax obligations.
So the sales agreement allows the company to sell shares for reasons other than tax withholding. Our current intention is to use it for tax withholding.
The sales agreement allows for the sale of 800000 shares up to 800000 shares to size. This in the first quarter. There were 86000 shares sold to cover tax withholding.
So at that rate this at the market sales agreement and prospectus supplement should be sufficient for the next few years.
So to recap the shares we intend to sell protects us holding to this aftermarket sales agreement and prospective supplement are simply the shares that would have been sold by our employees, but now be sold direct.
And a much more orderly fashion.
So with that I'd like to turn the call back to the operator for Q&A. Thank you.
Ladies and gentlemen, if you have a question at this time. Please press the star and then the number one key on your Touchtone telephone.
For your question has been answered or you wish to remove yourself from the queue. Please press the pound key.
Your first question comes from the line of Tony Berg from Stifel. Your line is open.
Yes, congratulations on the very strong results and outlook.
My first question is.
On your outlook for this year.
So art just said you expect to grow more than 60% I was just wondering maybe qualitatively talk a bit about your visibility there and perhaps also talk about which of the three segments that you expect to drive.
That's a 50% plus growth great. Thank you.
Yes, So I think art said that we would grow by at least 50, not more than 50, but im not quibbling.
But I think that it's exactly what I spoke about story.
<unk> com's.
Enterprise networking data center.
As well as.
The automotive sector as well.
The consumer stuff does grow.
But albeit small.
And the Mil aerospace as a singled out this time will also grow but its growing from a pretty small base.
So even though the percentage growth is predominantly high.
The.
The dollar amounts are relatively low so I think thats exactly the answer Thats, how we intend to see it and that's how we intend to grow it is good for us because these are high ASP high gross margins.
In dollars as well as in percentage products and they are very very sticky.
Great. Thank you and Thats about follow up you talked a little bit about the customer acquisition strategy and you mentioned.
Keep finding more and more opportunities right for your high precision product so.
Just hoping you could update us on the customer acquisition.
<unk> strategy in a bit more detail.
It's working with other reference partners working with perhaps some distributors. Thank you.
Right. So we are definitely working with distributors.
We are definitely working with semiconductor partners and customer acquisition strategies, because as you know thats, where a lot of the leverage happens, but we've also added significantly higher amount of salespeople direct title salespeople, we've added significant amount of marketing people.
And our focus on different markets.
Again Mil aerospace as an example of that automotive is an example of that <unk> is an example of that and.
And finally or.
Not maybe so finally, we have.
Our program that we call our cat program, which is <unk>.
Looking at customer pain points of delivery in very short lead times and fulfilling builders. That's been as we've said before a phenomenal success in acquisition because when everybody else has been unable to supply side time.
Always be able to supply something if not all their needs and even more importantly, higher quality and program through their payment needs.
We also have just started.
Being greater attention to digital marketing customer experience and I think that's something that you'll hear from us a little bit more as the quarters roll along and as we get more mature in that but really it's firing on all cylinders Corey.
That's great color. Thank you so much I'll go back in line.
Thanks Derek.
Sure.
Your next question comes from the line of Chris Caso from Raymond James.
Your line is open.
Yes. Thank you good evening.
First question is regarding some of the macro conditions out there, particularly.
Some of the China Lockdowns.
We've heard from some of the customers in the space.
Have you seen any impact from that either from your own supply side or on your customer side.
Was there any effect or factored into the second quarter guidance.
Yes, Chris we paid attention to it quite a bit actually just based on the headlines.
But we are unable to find any real impact to site and because of that.
Okay very simple.
Thank you.
I guess moving forward.
Yeah.
Yes.
Two part question here.
Obviously been in a pretty tight supply situation from an industry standpoint for a while.
<unk> benefited from having.
Better access to supply can you speak to what you think about the industry supply demand balance here.
Do you think that these tight supply conditions from an industry perspective are still persisting and likely to persist and then maybe you could talk about the visibility that you have.
You've spoken behalf that your customers are still booking you several quarters out and giving you a very good visibility.
With the increase in annual guidance is that an indication that that still.
<unk> as well.
Right.
Don't want to be a spokesman.
<unk> been debt free because we play in certain markets.
We for example don't play in 28 nanometers and tighter markets.
Speaking for the markets that we're in generally speaking.
We don't see a real.
Significant loosening up.
It's hard to tell the wishing for it to be so from the actual events.
We still believe that.
There are there is.
Pretty good.
Take rate.
From our customers.
One of the advantages of course, we have is that we have 15000 customers. So we have a very very broad base of customers.
So we don't have that massive concentration and a concentration continues to grow to decline from that one customer.
And so I would say.
In my book, even for 12 months, even outside this calendar year between now and 'twenty three second quarter I continue to see a generally tight supply and.
Excuse me.
We got one more point, which is that we are a premium supplier with very specific use case of our products. So we may be seeing a particularly tighter.
Supply because there are fewer customers there are fewer customers for it but there's also fewer suppliers.
If at all.
So generally that's how I feel.
And Chris I'll add to that you asked about customer lead time.
Just looked at this yesterday I looked at our statistics and our customers are still booking orders on average six months out some a little more some are little less and that has actually remained relatively constant for a number of quarters now so no real change in in that but that gives us really excellent visibility we're sitting here at <unk>.
Early may and our average customer is booking six months out so that gives me a lot of comfort in my comment that we expect to grow revenue by at least 50% this year.
Got it very helpful. Thank you.
Great. Thanks Ross.
Yes.
Your next question comes from the line of Alessandra Vecchi from William Blair. Your line is open.
I echo the congratulations on a very strong quarter.
Maybe one for you just on gross margins and tremendous gross margin performance, you're able to put up in this in this tight environment with input costs I think in the past you guys have said that 65% long term target.
At which point you would be giving up revenue growth for for margin, but it seems like between data center automotive traction in higher margin clock.
IC product you have maybe stronger gross margin tailwind than we would've thought can you just sort of walk us through how to think about the structure at all.
And the structural margin, we can expect going forward.
Yes, I think I think first of all thank you Alex I think your observations are valid.
We are getting to.
Premium pricing in terms of the value that we provide our customers and that is even more so the case in some of these high value newer products and higher performance products.
We have introduced and we will continue to introduce.
We've always thought that 65% plus or minus kind of mid <unk> is a sweet spot for gross margins and I think that's still a good way to look at it though we are seeing upward bias to that for the reasons that you mentioned.
Mentioned on the call that I expect our gross margins to remain.
Very strong in the mid <unk> for the balance of the year I'm very comfortable with that.
There is that upward bias that we just talked about though in the back half of the year. We generally have a slightly higher percentage of consumer sales than other sales and that will put us slightly lower bias, so without getting too granular I think the best way to think about our gross margins are mid sixties.
A slight upward bias going forward.
Great.
Incredibly helpful and then just on the inventory.
And the increase in your inventory dollars I understand thats fair that revenue, but I'm more interested in how you were able to keep a cure.
Such a market increase in dollar.
Is that part of the investments you've made on the back end are you seeing capacity free up.
Coming to more important customer at the boundary any color you can give on that yes.
Yes, I think all of that is true as I've mentioned in the past we have been purchasing capital equipment to support our backend capacity that capacity has been going in in the last couple of quarters and that helps us get more throughput. That's also helped lower cost part of what I talked about earlier in my script.
I think our operations group has done a great job of securing the required wafer that.
That we need from both TSMC for our Cmos wafers and from Bosch for our Mems wafers.
And obviously, we have to if we're going to grow revenue we have to grow inventory. So our ops group is making sure that we've got the inventory to support our expected sales growth.
Perfect. Thank you again with that I'll go back in queue and congratulations again.
Thanks, Alex.
Your next question comes from the line of Queen molten from Needham Your line is open.
Quinn Bolton from Needham Your line is open.
Im sorry, I was muted let me.
Offer my congratulations as well.
You gave us some some pretty impressive stats on the adoption of the clocking product cascade with over 100 customers already and expecting that to get to 200.
By year end and you expect to announce additional clocking products could you give us some sense as that clocking revenue starting to become material or perhaps when it might become material to overall revenue.
Yes, I think.
It would have been material last year, but the thing is we are growing.
Standard operator base revenue and loss as well, so I think will still come out at a pretty decent number.
For the year.
And.
Excuse me I think next year I think it can be really significant.
That's been the one product that.
It's not just the absolute number of amount of revenue Quinn that I'm really thrilled about it is the relative to what we talked we do because we thought it was a it is a very high end clocking product, we thought it would be very specific to certain finance.
Finance to certain.
Comms comms applications, but what we are learning is this kind of synchronized clogging is being required in automotive it's been acquired data centers, it's being required in an enterprise.
And we have the right product for the right time, we're also getting a little bit of a tailwind because.
There were some acquisition made of one one suppliers' products by another company and I think in that transition there has been.
Quite some significant loss, which has been of course, our game and we have to.
Taken that very closely to heart and customers are coming to us.
That solution.
Exiting next year I think it will be really quite meaningful because we will have more than one product line.
Shipping in that so I'm, particularly proud of that proud of the.
Our funnel and it's also demonstrating our ability to be a multi timing product supplier because as you know we started oscillators and we always said, we'd grow into clocking and resonators and here I am saying that we are.
Accelerating our clogging by Cigna.
Significant factor than what I thought and that's what's impressive about it for me.
Thank you for that for that color. The second question I had is.
Have you seen any change.
The court's capacity.
Upfront or do you think the courts market is still also fairly tight.
I think there are certain expansion of the low end of quarters.
It's been going on as we know that that's an easier thing for people to do.
We see that happening.
But even at the low end.
So call the standard oscillator, not the <unk>, so <unk> kind of level, even their sideline has significant value proposition that programmability.
Delivery quality reliability.
And commitment to the customer and I think that those are still playing out really well for us. So we find a very strong funnel. These trial filing the very strong customer.
Customers coming to us and I think we are still able to.
Focus on some of the NPA that we had talked about.
In getting customers to sign on for longer periods, not just because.
We can supply and others cant, but because we have a better product.
Committing to that.
Perfect. Thank you.
Thanks Quinn.
Your next question comes from the line of Gucci The Silva from Roth Capital. Your line is open.
Josh Hi, art congrats on the progress here.
Thanks, Joe.
Yes, if you pulled back problems. So you pull back the end market segments, I'm wondering which ones do you feel like you have the best ROI.
Relative opportunity for growth in the next 12 months I know all of them doing pretty well and if its wireless infrastructure I'm wondering are there any geographic specifics to that demand.
I think answering that geographic first I think.
The United States Europe that includes Israel in the Comms enterprise.
Columns Enterprise data center has done very very well for us.
The data center, particularly is very much a north American big booming paying you can think of all the big data centers. You can think of all the top server manufacturers and that's where we're getting a lot of traction from optical companies switch.
Switches.
Routers et cetera.
So clearly I would pick networking and telecommunications enterprise data center as my.
Biggest number in absolute terms and biggest number for growth having said that.
Automotive is a pretty pretty darn close second.
It continues to grow with tremendous.
Focus and development and automotive is a little bit.
Broader NGL, it's not just in the United States as I mentioned before it's in China, It's in it.
It's in Korea, it's in certain parts of Europe , although Europe might be some of the weakest.
In the automotive area.
But China Korea, United States.
Definitely getting the high point.
Okay great.
Just a follow up on that in terms of the automotive market. I know you had a very strong traction with with the lead customer how has the traction been in gaining content that additional auto Oems.
I think it's been pretty good I don't have anything like traveling to report, but it's been design win by design win.
But.
I don't think we've had anything of the kind of.
That we described the last time and the time before that primarily because it was kind of wins are on.
On the few and far between.
But.
I do believe that.
The.
What is really good to see is the renewed push towards electric vehicle electric mobility electric trucks farm equipment bikes boats.
It's just more than just cards and Tesla.
And others.
And.
I think.
Other companies are looking at their the older line or the companies are looking at all their products.
Seeing where they can lose weight and adding semiconductors is a good way to remove electromechanical harnesses wires cables.
And focus on high performance and low wheat.
And Thats, where we come in.
Okay, Alright, thanks, guys.
Thanks for your question.
As a reminder.
To ask a question you May press Star then the number one key on your Touchtone telephone.
You have a follow up question from the line of stories Vanguard with Stifel. Your line is open.
Yes. Thank you I just had a follow up on.
The R&D efficiency and new products.
And just you mentioned six new products scheduled for this year, which would give you an additional $3 billion Sam.
Historically, you've always been very efficient from an R&D perspective, but it just seems like this is a really big step up so.
I don't know how you can add more color on that whether it's how many skus you can get from those six product lines.
But any color you could share with us on the on the R&D efficiency really stepping up with those new products would be great.
Sure first of all.
These six new products or across the categories of oscillators clocks and resonators. So they are in all three categories.
So that's really good to know right. So this would be the first year that we would have products in all three categories.
Introduce new.
The second is that a typical.
Also later or even a clock.
Puts out anywhere from 15 to 20 derivatives.
So as.
Assuming that all of the six are either a clock on an obsolete or which they are not because as I mentioned at least one resonator index, but even five of them.
At 20 derivative products not all at once not all in one year, but within a year year and a half two years.
Means that that's good.
100, other products that are easily available add to that are in euro line and our automotive line and I think you'll get some specific products.
That.
Really.
A really.
Going to as you said.
A significant step up for some time going forward.
Yes.
I'm very very happy with this because we've been working towards this for a long time. The other thing that we should note is that in the fixed products. There are some that are in the category that already exists. So there may be existing clarke, our existing XO or <unk> or whatever but some of them is.
I mentioned, our category creators are very clearly products.
They don't exist just like elite ex R&D tax, which is the <unk> that replaces <unk>.
Or like the Excalibur product, which is.
Takes a world of passive resonators and makes it an active resonator. These are new products with new.
Ways to sell new ways to adopt that I think open up market. So in other words, we're creating markets as we do this so to some extent.
That one is unknown.
But it's the one that we are forging ahead, because we think that thats what.
The roll off side time in delivering.
Exceptional timing products.
And it's very all aspects, yes, sorry, I was going to add a few comments on that Sam goes up for two basic reasons, one is new products and rejects just talked through that but the other is that the segments that we're addressing are also growing electric vehicles. For example, that's a segment that's growing significantly and some.
The other markets that we're addressing are also growing so that accelerates the Sam expansion.
Great perspective, Thank you again and congrats.
Great. Thanks Laurie.
There are no further questions at this time I would now like to turn the conference back to the management for further remarks.
Great. If thats. The case, we will conclude this conference call I want to thank everybody for taking the time to listen to our comments and ask questions have a great afternoon, everyone. Thank you.
Bye bye.
Ladies and gentlemen. This concludes today's conference. Thank you for your participation and have a wonderful day you may all disconnect.
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