Q4 2022 Aviat Networks Inc Earnings Call
Good day, and thank you for standing by welcome to the <unk> Networks' fourth quarter fiscal year 2022 earnings results Conference call. At this time all participants are in listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question.
During this session you will need to press star one on your telephone. Please be advised that today's conference is being recorded I would now like to hand, the conference over to your host Andrew Frederickson. Please go ahead.
Thank you and welcome.
<unk> fourth quarter fiscal 2022 results conference call and webcast.
You can find our Form 10-K press release and updated investor presentation and the <unk>.
IR section of our website at www.
Networks Dot com.
A replay of today's call in approximately two hours.
With me today are Pete Smith.
CEO , who will begin with opening remarks on the company's fiscal fourth quarter, followed by David Our CFO , who will review the financial results.
Quarter and fiscal 2022.
Pete will then provide closing remarks, Avi on strategy and outlook followed by Q&A.
As a reminder, during today's call and webcast management may make forward looking statements regarding avianca business.
In but not limited to statements relating to financial projections business drivers new products and expansion the impact of COVID-19, and the economic activity in different regions.
These and other forward looking statements reflect the company's opinions only as of the date of this call and webcast and involve assumptions risks and uncertainties that could cause actual results to differ materially from those statements.
Additional information on factors that could cause actual results to differ materially from the statements made on this call can be found in our annual report on Form 10-K filed with the SEC.
The company undertakes no obligation to revise or make public any revision of these forward looking statements in light of new information or future events.
Additionally, during today's call and webcast management will reference both GAAP and non-GAAP financial measures.
Please refer to our press release, which is available in the IR section of our website at Www Dot network's dot com and financial tables therein, which included.
The non-GAAP reconciliation and other.
There is supplemental financial information.
At this time I would like to turn the call over to <unk>, President and CEO Keith Smith Pete.
Thanks, Andrew and good afternoon, everyone.
Thank you for joining us to review Avi networks results for the fiscal fourth quarter of 2022.
Company continue to focus and execute on.
Key long term targets of growth margin expansion and bottom line improvement despite persistent supply chain headwinds and inflationary challenges.
For the fourth quarter fiscal year 2022, the RBR team's hard work and commitment resulted in revenue of $77 4 million, which represents growth of 8.0% versus Q4 of last year.
Adjusted EBITDA of $9 1 million or 31% increase versus the same period prior year non-GAAP EPS increase of 52% a strong debt free balance sheet.
<unk> share buybacks of zero point $75 million.
For the full year fiscal 2022 RV out achieved.
Revenue growth of 10, 2% to 303.0 million, which also represents our second consecutive fiscal year of double digit topline growth adjusted EBITDA of $38 3 million, a 17% increase over last year non-GAAP EPS grew.
Both a 24%.
Repurchased five 4 million <unk> shares.
These financial results reflect the continued demand we see for our products in the market.
Fiscal year 'twenty, two we increased our global share of demand and added 175, new customers. This demonstrates we have the differentiated offering to take accounts from the competition and grow.
In North America in fiscal year 'twenty, two we grew market share by 6% and our now number one overall in the region on top of this in North America Q4 was our best bookings quarter in over a decade and then the rest of the world. We continue to gain traction and post encouraging results.
And bookings, we see five main factors for our success in fiscal year 2022 strength in private networks innovation of our multi band solutions further evolution of our software offering.
Traction and expansion with the obvious store at our ability to navigate the supply chain challenges, let me touch on each of these.
Our value proposition for private networks remains unmatched a reliable high powered radios customer service and support and end to end solutions offering.
Including the application software managed services routers and now wireless access solutions via our Red line acquisition on the first day of the current quarter is second to none.
We are the leading microwave vendor and private networks in North America and have increased our market share in this segment in fiscal year 'twenty two.
Please note that for the first time, our private network share of demand is higher than the next two competitors combined revenue on private networks grew 11% this fiscal year and FY 'twenty two was the highest bookings year in our history. In this segment, which included among other things six new state.
Wide network wins involving a mix of not only microwave products and services, but also routers application software and managed services.
Our strength in this segment is unrivaled with our wallet expansion initiatives our prospects in private networks are exciting.
In fiscal year 'twenty, two we have seen significant wins and repeat orders for our unique WTS 48 Hunter multi band solutions <unk> is the only vendor with a single box multi band radio and then extended distance multi band solution.
All delivering ultra high capacity transport over large longer distances with total cost of ownership that is up to 90% lower than fiber FY 'twenty. Two we're seeing significant market successes of our industry, leading multi band solutions, including an increase in multi band sales by more than 80%.
Year over year penetration into access networks of two tier one accounts in West Africa.
New tier two mobile operator win in southeast Asia, our new tier one mobile operator win in China that demonstrates the Rbis competitiveness versus Huawei.
New tier two mobile operator win in East Africa, a large service provider in Germany with a 14000 kilometer of fiber optic network, many new ISP and rural broadband networks in the USA and worldwide Q.
Q4 was the highest bookings quarter to date for multi bandwidth over 60% of these bookings from the EMEA region.
Operators in countries with high microwave spectrum fees quickly recognized the benefits of deploying avia multi band as an alternative to traditional microwave only links in countries such as the Philippines, Nigeria, and Kenya Avia multi band links can provide savings of up to 20000.
USD <unk> link.
Per year and spectrum fees alone in countries, where spectrum fees are moderate operators have embraced the avia multi barren systems to achieve the following one.
Scale capacity up to 10 Gigabits per second via software to reduce power consumption and three cut tower related costs and site visits when compared to using multichannel microwave links that are scalable only to a fraction of the capacity multi brand is widely recognized to be a key solution for <unk>.
<unk> building, we're preparing for <unk> networks.
<unk> Rollouts and Avia leads the industry in this area.
Moving to software.
In the fiscal year, we enhanced our frequency assurance software or Fas with new algorithms for interference detection and reporting we introduced new health insurance software or HHS to improve overall network health and reduce downtime and we evolved our provision.
Plus platform with enhanced.
Mpls management capabilities.
All of these investments resulted in an increase in FY 'twenty to management and application software sales by over 50% compared to fiscal year 'twenty one.
<unk> win here was with a large state government, where we achieved our first sale of our hosted <unk>.
Software, which is a software as a service.
Offering and will give us annual recurring software revenue stream.
This contributed to the fiscal fourth quarter 2022, being our highest bookings quarter for management software since the company's inception.
We are just getting started with recurring software and we expect much more of this business in fiscal year 'twenty three.
Another significant factor for obvious success in fiscal year 'twenty two <unk> store initially launched serve rural broadband Isps in North America. The stores now expanding globally and we added 72, new accounts in fiscal year 'twenty two.
In the North America ISP space Avianca has the number one position in radios license for operation clearly our value proposition is working.
The store represented over 8% of our fiscal year 'twenty to revenues and we look forward to the opportunity provided by large funding sources coming in the quarters and years ahead.
This includes the $20 billion rural digital opportunity fund or hard up and the 65 billion dollar <unk>.
Partisan infrastructure fund, which have yet to impact our business.
Looking forward, we can provide some intelligence on the Rd program. Some customers have started limited spending against ARD up this quarter in advance of getting the actual funds authorized.
Our customers believe funds will be disbursed later this calendar year or early next calendar year. If the program follows the Caf funding profile, we would estimate the peak of the spending would be three years from now.
We continue to expect <unk> to be a positive catalyst for us however, as with most government appropriations to plan is subject to change we thought we should share the color we have with you.
To amplify our readiness for this catalyst we are in the process of rolling out our new ecommerce platform, which will increase our ability to address this demand in the U S and for customers with similar buying characteristics across the globe.
Moving on to supply chain, although the supply chain has been a challenge throughout the fiscal year. Our team worked tirelessly to address issues and interruptions to ensure we met our customers' expectations, our diligence and persistence and working with supplier partners to solve problems and shortages along with our inventory approach to buffer.
Our supply interruptions allowed us to deliver products and results consistently in some cases. This has meant incurring expedite costs to alleviate bottlenecks and delays.
In the fourth quarter, we again had no revenue impact from supply shortages. This despite semiconductor chips remaining on allocations.
Along with over 100 other components.
Our costs were negatively impacted as a result of the Covid Lockdowns in Asia. These lockdowns caused significant expedite fees to be incurred supplier push out indeed commence late in the quarter remain a problem, but the team successfully overcame this throughout the year, including six such events in the fourth quarter overall.
We continue to see some improvement in the supply chain, but risks remain the specific improvements include our lead times are stable then.
A critical shortages is no longer increasing the number of force majeure events has recently reduced the zero. The overall number of components on allocation remains high but we see evidence that we have gone through the peak of the allocation environment. The key risk currently include the semiconductor wafer shortage as well as third and fourth level some.
Pliers subject to Covid lockdowns.
Our results for customers and shareholders would not be possible without all of the Avianca employees. This was a solid quarter an excellent fiscal year, we remain focused and continue to execute in those collective efforts are reflected in our financial and operational results. We have continued to demonstrate our.
<unk> grow and to take share of demand.
<unk> core values include customer focus as part of our focus on the customer we advanced our voice of the customer process. This effort by our sales and marketing teams resulted in a fiscal year ending backlog of $245 million. This represents an increase of 9% versus the prior year.
Our three growth drivers <unk> private networks in rural broadband leave us well positioned to capture significant opportunities with our differentiated products software and services offerings Lastly at the beginning of our new fiscal year, we closed the Red line communication acquisition, which we anticipate.
To add approximately $20 million of revenue and be accretive to gross margin and earnings in fiscal year 'twenty. Three we're pleased to have Red line as part of Avia and are excited about the opportunity to further demonstrate the value of the <unk>.
Getting system with that let me turn the call over to David to review, our financials before coming back for some final comments David.
Thank you Pete and good afternoon, everyone.
During my remarks today I will review some of the key fiscal 2022.
<unk> fourth quarter and full year financial highlights, noting our detailed financials can be found in our press release filed this afternoon.
As a reminder, all comparisons discussed today are between fourth quarter and fiscal 2022 in the fourth quarter of fiscal 2021 unless noted otherwise.
For the fourth quarter, we reported total revenues of $77 4 million as compared to $71 7 million for the same period last year, an increase of $5 7 million or 8.0% driven by strong growth in Europe Asia Pacific and Latin America.
North America, which comprised 63% of total revenue for the fourth quarter was $48 8 million, an increase of $2 4 million or five 1% in the same period last year, driven primarily by our private networks business.
International revenue was $28 6 million for the quarter, an increase of $3 6 million or 13, 3% from the same period last year.
As Pete mentioned, our backlog grew by 9.0% year over year to $245 million, continuing our trend of trailing four quarter book to bill ratios above one.
Which started in fiscal 2018.
Gross margins for the quarter were 35, 5% and 35, 7% on a GAAP and non-GAAP basis, as compared to 36, 1% and 36, 2% in the prior year.
Gross margins remained under pressure from inflationary headwinds and expedite costs related to supply chain disruptions.
We also incurred additional cost to overcome the Asian, COVID-19 related lockdowns, which primarily impacted our freight expense.
Our mix this quarter was weighted towards our long standing projects in backlog as a result, our previous price actions were less impactful.
Fourth quarter GAAP operating expenses were $22 2 million increase of <unk> 1 million from the prior year.
Fourth quarter, non-GAAP operating expenses, which exclude the impact of restructuring charges share based compensation and deal costs were $19 5 million. This.
This is a decrease of <unk> 9 million from the prior year due to general cost controls and benefits from prior restructuring actions.
Fourth quarter GAAP net income was $4 3 million compared to $2 8 million last year.
GAAP income before tax.
Seven 3 million, an increase of $3 6 million or <unk>, 95% from the prior year driven by improved operating profit and a $2 6 million gain from marketing on our marketable securities, partially offset by currency and M&A related costs.
Fourth quarter tax provision was $2 8 million compared to <unk> 9 million last year as a reminder, the an increase in tax provision year over year will not increase our cash taxes paid the company has over 500 million of Nols that will continue to generate shareholder value.
Minimal cash tax payments for the foreseeable future.
Fourth quarter, non-GAAP , net income, which excludes restructuring charges share based compensation M&A related costs and noncash tax provision.
<unk> was $7 8 million compared to $5 3 million for the same period last year.
The fourth quarter non-GAAP EPS came in at 67 per share on a fully diluted basis compared to <unk> 44 per share for the same period last year, an increase of 52%.
Adjusted EBITDA for the fourth quarter was $9 1 million, an increase of $2 2 million or 31% from the prior year <unk>.
Adjusted EBITDA margins were 11 8 million for the quarter.
Moving on to the balance sheet.
Our cash and marketable securities at the end of the fourth quarter were 47 8 million up from $33 8 million.
Prior quarter, we continue to have no debt.
Quarter cash flows from operations were $13 5 million.
The strong cash generation resulted from a moderation of supply chain induced working capital increases we experienced earlier in the year.
We executed <unk> seven 5 million of stock repurchases in the quarter, our balance sheet remains very solid, leaving us well positioned to execute our long term plans with that I will turn it back to paid for some final comments.
Thanks, David just a few additional comments before opening up for Q&A.
Fiscal year 2022 represented a significant year for <unk> networks. The company continues to grow we announced our first acquisition in greater than 10 years and are well on track to realizing the planned synergies, we announced our partnership with Max linear to develop the next generation system on chip, which will ensure our.
Differentiation for years to come this will be a more capable commercial alternative based on a newer generation of technology than competitor chips. The new generation will enable us to deliver ultra high capacity payloads over longer distances with the lowest possible total cost of ownership. Additionally, this trip.
It will consume less power and create advantages in cost system design and supply chain.
Our strategy from a few years back was to work with <unk> as a strategic chip development partner and innovate and systems. This strategy has yielded significant product differentiation as you can see from our market success and current product offering with the latest partnership agreement with Max linear we feel confident we have the right strategy for the <unk>.
<unk> as well.
Based on the company's outlook, we are establishing our 2023 guidance inclusive of the Red line Communications business revenue for fiscal year 2023 to be in the range of $330 million to $340 million.
And adjusted EBITDA to be in the range of $43 million to $45 million with that operator, let's turn the call back for a few lives comments and then open up for questions.
Certainly thank you Pete Smith. Your line is now open. Please go ahead.
Yes, we just wanted to give.
A quick update on the Ceragon extraordinary shareholder meeting we.
We are disappointed in the result, we remain interested in the transaction. However for there to be a transaction there needs to be engagement and to date, there has been very little and since.
Since this has been a public offer the information is in the public domain and we don't believe that there is very much else to say so with that said, we'd like to turn it back to the operator and start the.
A question and answer period.
Certainly once again, ladies and gentlemen, if you do have a last question at this time. Please press star one on your telephone.
And our first question comes from the line of Scott Searle from Roth Capital. Your question. Please hey, good afternoon. Thanks for taking my questions Pete Dave Nice job on the quarter.
Maybe just to dive in on the gross margin front Pete.
<unk> certainly headwinds on that front as it relates to inflationary cost component availability of the Lockdowns in China and the freight costs.
Could you quantify the impact that you saw in the June quarter, and we've had some I'll call. It a selling on that front. What are you seeing in the immediate future as we're looking into the September quarter and into the back half of the calendar year here.
Yes.
Shy away from specific quantification, but it was.
That's fairly large impact on our margins in the quarter.
Tuna 60 70 basis points.
What we see looking forward.
Is it actually an absence of those headwinds and we expect.
Good margin progression as we head into fiscal 'twenty three so.
A little bit of a onetime event that we do.
We expect to continue.
Continue the improving trend that we had seen in.
In previous quarters, starting up in 2023.
Great.
Looking at the services side of the equation very good quarter I think both from a top line perspective, and a gross margin perspective, I'm wondering if you could give us. Some idea was there anything unusual in there in terms of one time benefits, particularly now going forward is that a normalized level to be thinking about the gross margin performance, particularly as we start to see contribution from Red line comes.
And Pete maybe from a high level as well I know you gave to $20 million guidance for Red line for the current fiscal year, but how are you expecting that to flow in to.
To the P&L over the next couple of quarters healthy early integration on that front going.
Okay <unk>.
Yes, I'll start off on the services margin question, Yes, we had a very good quarter.
In services margin that was driven by North America, we had some very.
Very good projects, but we've also been very focused on execution and taking cost out.
Our service offering so.
We've made some good headway there do we expect to maintain those.
That level of service margin, probably not at that level, but we don't see a reversion.
To where we had been historically, we expect improved service margins overall, Okay and then on the Red line part of your question.
We've been aggressive in the way, we've managed our supply chain.
<unk>.
The Red line, we're starting to run that standard operating process on Red line. So we think that.
If you want to calendarize that $20 million and will ramp through the through the year and we'll also be able to get our our operating system in there and start to to reduce costs with respect to how in the prepared remarks, we said that were.
Our planned synergies and Thats.
That's really on the SG&A front that we are.
Our thesis when we bought it.
We thought that we could take cost out and that thesis is.
Proven out to be true over the first seven weeks or so of ownership.
Got you and if I could just two last ones just on the on the guidance you gave guidance for the year I'm wondering if you could calibrate sequentially, how youre thinking about things on the front sounds like gross margin starts to come back, but if you were to net out Red line. How are you seeing September shape up and then that macro view for fiscal <unk>.
23.
Pete what's the thought in terms of the contribution of art off and there is any sort of the other government funding initiatives and lastly, if I could and I apologize in advance.
But the obligatory Ceragon question in terms of are there next steps for you.
And that stated are there other things and opportunities in the pipeline that youre starting to see that our peaking your interest. Thanks.
Okay.
So those three questions. So.
Our guidance.
We do not have art off in our guidance. So we would say that thats a positive catalysts when that.
Materializes with respect to the progression.
We are a project based business.
In our prepared remarks, we said that we had record public safety, so that would mean that.
We're on the July to June calendar that you'd see the ramp.
Through the year, but I would expect that there'll be some.
Project cut offs and a little bit of.
Lumpiness from quarter to quarter, but the way our backlog as you would expect.
Progression.
To.
Kind of go up.
We move through the year and then with respect to.
Ceragon and next steps.
I would submit that there are.
If there's engagement there as next steps if theres knowing engagement. There is no next steps the positive outcome for us are.
<unk> raised our visibility and.
There is more.
There is more opportunities for us to grow by acquisition than there had been previously.
Previously so.
While we didn't get the results we wanted in the.
Extraordinary shareholder meeting, it's been net positive for Avianca.
Hey, thanks, so much nice job on the quarter.
Thank you.
The Q1 moment for our next question.
And our next question comes from the line of Tim <unk> from Northland Capital markets. Your question. Please.
Hi, good afternoon.
I wanted to.
Talk about the bookings strength in the quarter, which you've.
Called out.
Multi year or.
Nearly decade terms, maybe let's focus on North America, and what the drivers drivers were there for Q4 in particular.
You did mention some initial spending activity on the <unk> side and to what extent.
Rural broadband in general a factor in that order strength or can we attribute.
Most of that to private networks.
Follow up.
Yeah, Tim I would attribute most of it to private networks and Thats why we gave the color of six.
Six.
State State networks.
That in the quarter or for the year.
That was for the year.
Yes.
Sorry, Todd.
And.
Also to follow up on some of the carrier wins.
Well.
I wanted to see if you could maybe toss out a book to Bill for Q4, either overall or in North America, just given the.
The superlative you put on the numbers in terms of.
The year and I was also interested in.
The tier one win in <unk> backyard, I guess and how significant you view that to be and what that means both from a revenue perspective and also for future potential wins.
Okay.
So I think.
Because we have a lumpy project based business, we don't like the the book to Bill and Thats why on a quarterly basis and Thats why we said our backlog year over year is up 9%.
The.
When in China Thats demonstration.
A demonstration of our.
Our our ability to deliver our multi band, which is highly differentiated and we are using that we're in.
Where the spectrum costs are highest in China or the cost of <unk>.
Winking towers together is the most expensive and.
I wouldn't I wouldn't say, we want to raise guidance on that we brought that up because it demonstrates our ability to compete.
In tier ones and in what ways backyard.
Great.
One more follow up for me if I may.
You are coming off a couple of years organically.
Double digit growth here.
And.
Looking at a more conservative start to that year organically this year.
And mentioned that you don't really have much in the way of Gov.
Government or Argos supported revenue, where nothing actually in your forecast.
Yes.
Can that really by itself I guess.
If that were to come through and some reasonable way puts you back into double digits for 2003 and Thats. It for me.
Yeah.
That's fair I mean, Tim here, you were probably doing the math.
What it would need to be and if it comes it could certainly.
Put the core business into that level of growth, yes, and that would be kick.
Kicking in of the either the.
The art out funding or the to building infrastructure fund or Biff HR 36, 84, So just so we watch those.
Items pretty closely.
If we get to kick in then that'll be.
That'll be a positive catalyst for us.
Thanks very much.
Thank you and our next question comes from the line of Eric separate you from JMP Securities. Your question. Please.
Yeah. Thanks for taking the question.
Could you talk a little bit about kind of some of it.
The demand that youre seeing in Europe .
How much of this is related to the war.
In Ukraine.
Yes.
Our biggest demand is in.
As in the UK and Thats a private network.
Projects similar to the <unk>.
Bulk of our business in North America.
We've previously disclosed that we we only had one contractor in Russia, and we only had one.
No.
Potential commercial opportunity in Ukraine, So Ukraine Russian.
<unk> has had.
De minimis impact on.
On us.
The bulk of the growth has been driven by private networks in the U K, but we have picked up some.
Tier twos.
Ed.
In Europe and.
Isps specifically in Germany.
Can you discuss obviously you had some pretty robust growth in Europe why is why are private networks coming.
Coming coming a lot so much for you.
Okay.
So.
If we roll back the clock about.
Five quarters ago, we refreshed our commercial leadership.
Leadership, because we were not.
Doing very well in the EMEA team.
No.
We've.
Upgraded the team the teams running our voice of the customer and our sales funnel process and now I would say with that leadership.
We understand our value proposition, we chase opportunity that we can win and our conversion rate is better than that it was five quarters ago.
Okay and in Africa was down year over year was there anything.
Notable.
Got it.
Yes, I think thats the case.
We think Africa is.
<unk> is well positioned for growth and now it's really just on the Capex cycle and I think.
Watch that space in the coming quarters.
Youll see.
Our balance up there.
Okay very good thank you.
Thank you.
Our next question comes from the line of Theodore O'neill from Litchfield Litchfield Hills Research your question. Please.
Backlog can you give us any.
Formation about the mix between product and services and whether or not you're seeing stronger growth in either one of those.
Okay.
So, yes, we definitely added a mix.
Skewed towards services this quarter.
It's typically.
It's probably at Athens.
Six or seven.
Percentage points higher than it normally is.
From a mix standpoint, and we also had we already talked about.
Strong execution.
That increased the margins there.
We don't think there's a fundamental shift.
And the mix between product and services.
And as Pete said, a project based business that is going to be.
Little lumpy and they're going to have this kind of variability quarter to quarter.
Just happened to be a strong quarter for.
Services coupled with.
Positive margins on those services.
For us.
Okay and.
In terms of your your your North America revenue and market share here being so strong.
Is that a particular product area.
Creating that for you or is that across the board.
So I would say our Wotm high capacity radio is a key product, but one of the reasons we win in private networks.
Across the globe and in particularly in North America is our end to end offering. So we do the to network design the network plan.
Provide the hardware software and services.
Sometimes do the install and sometimes we do the ongoing network monitoring and.
That core competency along that those elements of value is what it is.
Is the are the components of the winning value proposition.
Okay. Thanks very much.
Thank you.
And our next question comes from the line of Orin Hirschman from AIG H you question. Please.
Hi, how are you.
Paul.
I just wanted to drill down again deadline.
How much.
And within that.
Fiscal year.
Okay.
At fiscal year is that just over $19 million.
Yeah. So so yes, so $19 million.
But that top line.
Okay.
Oren about $19 million. So we're we're signing up for nominal growth, while we restructure the business and get our voice of the customer and sales funnel process in place.
So thats.
We want to make sure we get the costs out get the business.
No.
After their Canadian exchange and get it the resources deployed and run our voice of the customer and sales funnel process. So.
So that's what we're doing with Red line in the first 12 months.
Okay.
Let me see where I'm going with the question is just to understand the organic growth rates.
Even without breadline, considering considering how the backlog has risen.
Book to Bill is positive.
I would say it would seem like that.
Again, I don't know the timing of the orders on the book to Bill, but it would seem like it gives your running room, especially not counting anything from BARDA.
Infrastructure build out.
Yeah. So we we.
We want to make sure that we.
Give guidance there.
Ken here.
You are right that we have part of upside if.
We can pull on the backlog, we can and as.
As we execute out we'll revisit our guidance as we go through the go through the year.
Okay.
Final question is on the software side I know you had mentioned there are additional software offerings coming you alluded to can you say anything more about that or even just the timing.
So we.
We launched our.
About a year and a half or two years ago, the Fas frequency assurance software.
Then we.
In the last quarter, we launched our health insurance software.
And we're contemplating a couple of other assurance software is to build out our our software suite and to help network operators.
You don't run their networks at a lower total cost of ownership and we would say.
Within the fiscal year, we will launch our next.
<unk> assurance software offering and build our advantage there.
Okay, great. Thanks, so much.
Yes.
Thank you. This does conclude the question and answer session of today's program I'd like to hand, the program back to Pete Smith for any further remarks.
I'd like to thank everyone for your continued interest in your call. Your attendance on the call we'd like to thank our suppliers customers employees and shareholders and we look forward to speaking with you at the end of Q1, and giving you an update on our progress.
Yes.
This concludes today's conference call. Thank you for participating you may now disconnect good day.
The conference will begin shortly to.
Raise your hand during Q&A you can dial one one.