Q2 2022 American Superconductor Corp Earnings Call
[music].
Welcome to the a M S C second quarter fiscal year 2022 financial results conference call.
All participants would have been listen only mode should you need assistance. Please signal a conference specialist by pressing star followed by zero on your telephone keypad.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then zero. Please note did you ever and is being recorded I would now like to turn the conference over to John Haley Zone from an H a please go ahead sir.
Good morning, Sandra and good morning, everyone and welcome to American Superconductor Corporation second quarter of fiscal 2022 earnings conference call I Am John Heilshorn, <unk> Investor Relations <unk> Investor Relations agency of record with US on todays call are Daniel Mcgann.
President and Chief Executive Officer, and John Kosiba, Senior Vice President Chief Financial Officer and Treasurer.
American Superconductor issued its earnings release for the second quarter of fiscal 'twenty, two 2022 yesterday after the market close but those of you who are not able to see in the release a copy is available at the investors page of the company's website at Www Dot <unk> Dot com.
Before starting the call I'd like to remind you that various remarks that management may make during today's call about American superconductors future expectations, including expectations regarding the company's third quarter fiscal 2022 financial performance plans and prospects constitute forward looking statements for purposes of the safe Harbor provisions under.
The private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including those set forth in the risk factors section of American Superconductors annual report on Form 10-K for the year ended March 31, 2022.
Which the company filed with the Securities and Exchange Commission on June one 2022, and the company's other reports filed with the SEC.
These forward looking statements represent management's expectations only as of today and should not be relied upon as representing management's views as of any date subsequent to today.
While the company anticipates that subsequent events and developments may cause the company's views to change the company specifically disclaims any obligation to update. These forward looking statements also on today's call management will refer to non-GAAP net loss and non-GAAP financial measure.
The company believes that non-GAAP net loss assist management and investors and comparing the company's performance across reporting periods on a consistent basis by excluding these noncash nonrecurring or other charges that it does not believe are indicative of its core operating performance.
The reconciliation of GAAP net loss to GAAP to non-GAAP net loss can be found in the second quarter in fiscal 'twenty two earnings press release, the company issued and furnished to the SEC last night on form 8-K.
All of American Superconductor as press releases SEC filings can be accessed from the investors page of its website at Ww done a M. S N dot com.
I will now turn the call over to Chairman, President and Chief Executive Officer, Daniel Mckenzie, Daniel Thanks, John and good morning, everyone and thank you for joining us today I'll.
I'll begin today by providing an update and sharing a few remarks on our business.
John Kosiba will then provide a detailed review of our financial results for the second fiscal quarter, which ended September 32022.
And we will provide guidance for the third fiscal quarter, which will end December 31 2022.
Following our comments, we'll open up the line to questions from our analysts.
We started our second quarter of fiscal year, 2022, with positive orders momentum and strong market demand.
Total revenues for the second quarter of fiscal year, 2022 exceeded our expectations and came in above our guidance range.
Our second quarter revenue of nearly $28 million was driven by strong new energy power system shipments.
Our grid segment revenue for the second quarter of fiscal year 2022 accounted for over 90% of Amc's total revenue and grew versus the year ago period.
We had very strong bookings in the second quarter of fiscal 2022, and our grid visibility now extends well into fiscal 2023.
The team is executing and driving progress with both new and existing customers for our products.
We announced $30 million of new orders in October and have a solid order book of over $100 million.
During our second quarter, we saw a diverse set of shipments to renewable industrial semiconductor mining and Navy projects.
One third of our shipments were two renewable projects.
Industrial shipments represented about one fifth.
Semi conductor projects were over 15%.
Metals mining and materials were also over 15% and the navy with nearly 10%.
We believe we are well positioned to benefit from the tailwind created by global de Carbonization efforts.
Mining metals and materials are at the heart of this movement and that is where we have expanded our momentum and our broader.
Portfolio of acquired products.
We also see projected growth in the renewables market.
Increased investments in semiconductor capacity.
We believe MMC is certainly a more diversified and stronger business than it was a few years ago.
We ended the second quarter with more than $37 million in cash.
We have a strong balance sheet and order book.
We continue to demonstrate our ability to manage our business effectively despite the challenging operating environment. We are executing against our plans of a more diversified and sustainable business now.
Now I will turn the call over the John Kosiba to review our financial results for the second quarter of fiscal year 2022, and provide guidance for the third quarter of fiscal year 2022, which will end December 31 2022, John .
Thanks, Daniel and good morning, everyone.
<unk> generated revenues of $27 7 million for the second quarter of fiscal 2022.
<unk> to $27 9 million in the year ago quarter.
Our grid business unit accounted for 93% of total revenues, while our business wind business unit accounted for 7%.
Great business unit revenues increased by 4% in the second quarter versus the year ago quarter, while the wind business unit decreased 40% over the same time period.
Looking at the P&L in more detail gross margin for the second quarter of fiscal 2022, 7% compared to 12% in the year ago quarter.
Gross margin for this quarter was adversely impacted by the continued drag on margins associated with the acquired New York Trans backlog and inflation pressure in the supply chain.
To help provide some quantitative reference Neil Tran adversely impacted our quarterly consolidated gross margins by approximately 500 basis points.
Made and are continuing to make considerable progress in reducing the nail Tran acquired backlog and as I mentioned last quarter, we expect to ship off most of that remaining acquired by Neil trend backlog by the end of Q3 fiscal 2022.
Yeah.
Moving on to operating expenses, R&D and SG&A expenses for the second quarter of fiscal 2022 were $9 7 million compared to $9 4 million in the year ago quarter.
Approximately 11% of R&D and SG&A expenses in the second quarter of fiscal 2022 were noncash.
Our non-GAAP net loss for the second quarter of fiscal 2022 was $6 5 million or 23 per share compared with $5 1 million or 19 cents per share in the year ago quarter.
Our net loss in the second quarter of fiscal 2020 to $9 9 million or <unk> 35 per share. This compares to a net loss of $4 4 million or 16 seven per share in the year ago quarter.
Included in our Q2 FY 2022, net loss was a 1.9 million noncash expense for a final release of the cumulative foreign currency translation adjustment for the desk solution of our China entity.
Please see our press release issued last night for a reconciliation of GAAP to non-GAAP results.
We ended the second quarter of fiscal 2022, with 37 4 million in cash cash equivalents and restricted cash. This compares to $43 1 million as of June 32022.
Our operating cash burn in the second quarter of fiscal 2022 was $5 7 million.
Now turning to our financial guidance for the third quarter of fiscal 2022, we expect that our revenues will be in the range of $22 million to $26 million.
This revenue guidance contemplates at the request of our customer a rather large sized project within our grid business.
Again rescheduled to ship from Q3 to a revised requested shipped eight in Q4, FY 'twenty to 'twenty two.
Our net loss on revenue at this range is expected not to exceed 9 million or 32 cents per share.
non-GAAP net loss is expected not to exceed $7 million or 25 cents per share.
We expect operating cash flow to be a burn of four and a half to $6 5 million in the third quarter of fiscal 2022.
We expect that in the third quarter with no less than $30 million in cash cash equivalents and restricted cash.
With that I'll turn the call back over to Jack.
Thanks, Sean.
A few weeks ago, we announced $30 million of new <unk>.
Energy power system orders drip.
Driven by growing market demand.
We currently have three favorable tailwind driving demand for our new energy power systems.
These are investments in renewables semiconductors, and mining metals and materials.
I'll focus more time elaborating on the third tailwind comprised of mining metals and materials.
We booked significant orders in these markets and there are important drivers fueling their expected expansion.
First is the projected growth in the renewables market.
Wind power projections are estimated to grow year over year in the markets we serve.
And the global data the U S is expected to add approximately eight gigawatts in 2022.
It increased by 26% over the next five years.
The U K is expected to add three seven gigawatts in 2022 and expand by 46% over the next five years in India is expected to add 2.5, Gigawatts in 2022 and grow by 34% over the next five years.
About one third of our product shipments during the second quarter or for renewable projects.
Second as the demand for semiconductors increases makers of chips are expected to expand their manufacturing capacities.
The global semiconductor market was valued at $556 billion in 2021 and is expected to increase by nearly 14% in 2022 continuing to grow by four 6% in 2023.
As for its future development analyst forecast this expansion at a compound annual growth rate of 8% over the next five years to reach a value of around $900 billion by 2027.
That's 2021 in the United States alone.
The semiconductor industry has announced nearly $80 billion of new investments through 2025.
More than 15% of our product shipments during the second quarter were for semiconductor projects.
Our third tailwind is the increasing demand for mining metals and materials.
Let me take some time to elaborate on this as this really is a new development in our business and our drive towards diversification and growth.
Consider the global market conditions shaped by climate and environmental action.
For example achieve.
Achieving the goals of the Paris agreement would mean quadrupling mineral requirements for clean energy technologies by 2040.
Wind power solar photovoltaics or PV electric vehicles are evs, all demand more materials and are also at the heart of this anticipated market shift.
Wind power is positioned to be the leader in low carbon generation, followed by solar PV plants.
Both of which are material intensive.
To give you some perspective and onshore wind plant requires nine times more mineral resources that are gas fired plant.
And then on electric vehicle requires approximately six times the amount of key materials used when compared to conventional cars.
In short the <unk>.
Quantity of key materials needed for the expected electrification of our economy as fast.
The soaring demand for clean energy means mining for metals and minerals is on the rise.
This demand comprised more than 15% of our product shipments during our second quarter.
As well as a significant part of our recent 30 million dollar new energy power systems order announcements.
To be very clear.
With the acquisition of Napster Neil Tramp.
We have positioned ourselves not only at the grid connection and control point for the power projects.
It also upstream in the business of the basic materials that go into the systems that make store and move the power.
This is a way for the company to benefit at multiple points, along the supply chain of new energy solution. This exciting energy future also depends upon computer chips batteries and fuel cells that are built from silicon and carpet.
All of these building blocks supposed to be mine processed has assembled.
Industrial manufacturers of these essential materials must be able to power their factories in ways that scale without adding complexity or size.
This is where we believe a msc's products are uniquely well positioned to address market demand.
Our voltage compensated capacitors harmonic filters transformers and rectifiers empower the energy intensive factories of the future without the risk of costly power interruptions that could hinder this journey to a better future.
We supply products and capabilities that enable binds to effectively operate and meet the world's growing demand for metals and minerals.
This demand for minerals use in Evs and battery storage is estimated to grow at least 30 times by 2040 lithium is expected to have the fastest growth with demand increasing 42 times by 2040, followed by graphite cobalt and nickel.
Oh.
The expansion of electricity networks also will contribute to an increased copper demand for grid lines by three times between 2020 and 'twenty 40.
It's a very exciting new development in our business and dealing with these key materials for the energy future.
Now, let me turn Diana sees other products and services.
In addition to those markets. We're also focused on the navy through our ship protection or Sps solutions.
In an age of increasing global tensions, we're helping to move U S daily shifts into the future by installing protection systems that.
Stay hidden from our enemy.
Right now we're focused on the successful installation of our ship protection system on the U S S Fort Lauderdale.
We have established and demonstrated our capabilities to deliver the Sps systems.
And our backlog we have the U S S Harrisburg, which is scheduled to be delivered this fiscal year.
The U S S Richard but cool in the U S S Pittsburgh.
Sps contributed nearly 10% of the revenues in the second quarter of fiscal 2022 and have been a very consistent source of grid revenue for several quarters.
Our team is focused on continuing to expand our ship protection systems.
Two other vessels, while we are installing our initial systems.
We hope to have more news coming soon regarding what we will believe will be our bright future with the navy.
Our resilient electric grid or Reg system in Chicago continues to perform well.
We continue to see strong desire from this utility as well as others.
Further deploy reg into the power grid and it is clear at least to us.
That rag offers the capability and functionality to solve some of the nation's current critical grid infrastructure problems right now.
Turning to wind, we were supporting IMAX in Tucson in the field.
With the initial prototype of a three megawatt class wind turbine and initial wind farm a five five megawatt wind turbines respectively.
During the second quarter of fiscal 2022, we shipped two megawatt of electrical control systems or ECS to our partner in India IMAX wind.
The design certification of the three megawatt class wind turbine prototype for the Indian market is complete.
We believe IMAX is in a good position to start expanding its business this year.
With the three megawatt class wind turbine.
Which we expect will translate into an expanded order book for us.
Across our businesses, we continue to work through the ongoing challenges of <unk>.
Supply chain constraints transportation constraints.
And inflation.
These challenges are very real.
We have worked with our vendors to maintain stocks of key components and carry inventory.
We are carrying inventory as well.
We also have been managing through these challenges through constant interaction with customers as well as logistics providers.
The team has been doing a great job of managing supply chain challenges and pricing it into proposals where possible.
We are first and foremost focused on what our customers require and so far we've been able to manage key customers demand.
Our company has a strong record of building our business year after year entering new markets and strengthening our existing product lines and services to our expanding customers.
We believe we possess the ability skills and dedicated employees capable of building on our successes with an eye towards executing on new opportunities.
We feel very confident about the future.
And believe there are tremendous opportunities ahead for us in fact, as we look ahead into fiscal year 2023.
I am highly optimistic that our recently announced order book.
And a more diversified and financially stronger a M. S C.
We believe the integration of our recent acquisitions enhance the fundamentals of our company and address market opportunities more broadly and efficiently.
As we experienced revenue growth of new energy shipments coupled with working off the acquired deal tram backlog.
We anticipate meaningful gross margin expansion.
With an uncertain economic outlook. Our team has demonstrated extraordinary operational discipline. The team is doing a great job of managing the supply chain challenges and pricing it into proposals where possible. We believe we are well positioned to take advantage of the deep carbonization tailwind in <unk>.
Expect to continue to grow and diversify our business.
We have ship protection system orders for deployment on the U S is Harrisburg U S S. Richard cool in the U S S. Pittsburgh.
We continue to hire talent aligned with our long term plans.
We are executing diligently against our plans of a more diversified and sustainable business and we expect a strong end to fiscal year 2022.
I want to thank our team for their hard work and support and I look forward to reporting back to you at the completion of our third fiscal quarter of 2022.
Sandra will now open the line to questions from our analysts.
We will now begin the question and answer session I will ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys.
Can we throw your question. Please press Star then two.
In the interest of time, please limit yourself to one question and one follow up and then get back into the queue.
At this time, we will put them in.
And thirdly to assemble our roster.
The first question comes from Colin Rusch from Oppenheimer. Please go ahead.
Thanks, So much I guess can you talk a little bit about the trajectory of your win rate yeah.
The mining Buildout as well as the semiconductor build out in the U S. There's a tremendous opportunity for you guys as folks think about power quality and importance of power welding, but I'm curious about the competitive landscape and how you guys are shaping up versus some peers within that that opportunity.
Yeah, I think it's a great question Colin with these new offerings represent some new competition for us.
What we find is our way of trying to provide a whole solution for our customer.
It helps differentiate us our ability to deliver timely advantage lead times very well for customers give.
Give us some additional.
<unk> competitive advantage.
You know the fact that we understand the grid very well really puts us in a unique position as we look at competing with industrial customers because they really look at us as an extension of the project team Thats developing the asset that's going to connect to the substation. So we.
We think we're in a great competitive position not only technologically but from a lead time and also just from a general competency standpoint.
That's super helpful. And then just shifting gears around the military.
There's a lot of geopolitical activity going on right now and then shifting I mean are you seeing you know incremental movement on budgets activity around scoping you know the opportunity. There. Obviously you guys have you know the appropriate approvals and it's really just around ship by ship budgets, but are those bow to stern.
To move a little bit and whats your sense of the overall pressure to upgrade given the broader environment.
What we know is that you know the technology has been Derisked, we know that we're in the throes of an installation on the very first ship. So I don't want to say the entire Navy's watching us part of the Navy's it matters to us is watching us. So we're really focused on on it.
During that the risks around installation are retired on this first ship.
We know kind of the pathway on to the next ships, we know that there's.
At the beginning of coal coming from inside of the Navy to do more with them and as I kind of mentioned in the remarks, you know we look forward to very soon coming back and talking about some some demonstrable progress with the Navy.
Thanks, so much guys.
Thanks Colin.
The next question comes from Justin Clare from Roth Capital Partners. Please go ahead.
Yeah, Hi, thanks for taking our questions.
I guess first off here I just wanted to ask about the guidance I was wondering if you could just help us understand kind of what's what's driving the wider expected net loss in Q3 versus Q2, it looks like revenues could be down a touch but could you also see some margin compression on the gross margin side.
Or are you anticipating higher opex. So just any any color on the changes from quarter to quarter would be helpful.
So let me I'll do revenue I'll leave the important lines to John .
Obviously for Q2, we came in a little heavier than we thought so we had the some work that we completed earlier than planned for Q2, so that helped to raise Q2 revenue a bit above what our expectations were.
John mentioned in the prepared remarks that we have one project that a customer has said they would like to receive it in Q4, So that's shifted.
Pretty major project from one quarter to another so as people kind of dive into the Guy just realized there's a couple of moving parts, we're trying to be as transparent as we possibly can be.
And if you want to talk to the you know the other.
Lines on the financial statement go ahead, Yeah, sure Hi, Jonathan.
So the guide really is flat quarter over quarter from a P&L side.
You know when we guide we have to prepare for the worst case scenarios and our guide for non-GAAP is about 500 K worse than the previous guide.
I don't see any meaningful difference in gross margin are anticipated quarter over quarter.
And Opex is relatively flat maybe.
They go up a couple of hundred grand but not enough to swing the needle in any significant way.
So I'm looking at more as a push quarter over quarter Hello, Justin.
Three versus Q2.
Gotcha. Okay. That's that's helpful. And then just thinking through you know how things trend in the balance of the year you know it looks like by fiscal Q4, you'll have the Neal trend backlog that has rolled off so you can get a 500 basis point.
Margin uplift from that I'm, just wondering if you could talk through kind of the other product lines. How you see margins trending it sounds like cost inflation is an issue, but you know have you put in kind of the price increases that are necessary to kind of achieve a healthy margin level. You know by the time, we get to the end of the year or we're into 'twenty 'twenty.
Three.
Yeah, I think your timetables right on you know, we've been trying to price and elevated cost where we can.
Obviously, you can see a strengthening in the order book you know we were reporting you know orders on a quarterly basis in the low Twenty's and now we've done you know 40 or 30 back to back. So we're obviously out of an accelerated a higher level of backlog that we've been you look at a lot of the indicators across.
The business really point to growth from where we are with inventory to what we're talking about with margin and things like that so you know I was very very optimistic that we'd see a strong second half I think we're going to see that translate more into Q4.
And my Hope you know not to go out too much further but.
You know as you work with the team and look at 2023.
We've done a lot of work already and it's only the beginning of November to make sure that 'twenty. Two 'twenty three is a really strong year. So.
I know sometimes these calls are hard when people look at the numbers and the immediate impact, but I wanted to be clear I'm really excited about not only how we're going to finish up this year, but what next year could look like.
Okay great.
On the margin just.
You know you have the neo trend. So on the same revenue you have the bump up in the nail trend, which you know you you quickly realize and then the other piece is the mix as we start to see in Q4. So we did mentioned that we had a rather large grid project pushed out out of.
Q3 and ended in Q4.
That mix as.
We see D var start to approach more historical levels of revenue.
Youre going to see some natural margin improvement just because of the mix is going to get better leading into Q4, and hopefully continue on into FY 'twenty 'twenty right.
Okay very helpful. All right. Thanks, guys.
The next question comes from Eric Stine from Craig Hallum. Please go ahead, Hi, Dan.
Hi, John .
Hey, Eric.
So maybe just on when you talked about IMAX and the three megawatt turbine the design certification complete.
You know I know they've been making noise about this for gosh. It's been you know one to two years, but lately talking about commercial launch and I guess at least taking orders in the first quarter of 'twenty three and so just thinking through that I mean, when when do you need to see some.
Ply agreement and officials supply agreement to hit that timeline I mean, obviously, you're still optimistic think that's your business, but just curious on timing of when we might see that.
Yeah, I think that's the hardest thing to suggest here is based upon how the demand is going to ramp and how quickly can we respond.
We've tried to be clear you know for a lot of our products. We're looking at 912 15 months lead times.
In the case of IMAX you wanted to do the best we possibly can but it always starts with their ability to pay so I think if we see indications from their business that they are becoming more healthy.
That should translate into a good indication that that our business is going to start to turn around on the wind side. So you know I think we always tell them the sooner the better to meet the demand that they've been talking about.
You know, but again you know we're here we're in November and we have yet to enter into an agreement on the three megawatt parts. So.
I'll just leave it at that got it and then if there if they are truly serious in and are going to stick to that timeframe no I mean, it would seem to be that.
You know an agreement would be forthcoming in near term or it should be.
I'll, let I'll, let you read those tea leaves.
Okay fair enough.
And then maybe just my follow up just confirming on the the one project that pushed out.
Is it fair to assume that that's related to incentives you know related to the the I R. A recently passed.
And just you know taking your temperature what your confidence is that that is in fact Q4 event or or potentially does that could that slide further into fiscal 'twenty three.
Yeah, It doesn't really have any bearing on.
The I R. A Arabs investment Uh huh.
Whatever its called the inflation Act.
This was something in backlog well before that doesn't simply customer requesting a different date.
Are there reasons and what they have availability of labor and things I don't read too much into it because we.
We always see in these things.
We tried hopefully it works out well for us I'm trying to be more transparent with people on why things are changing or or or.
Now, what we're seeing giving more transparency in what we're saying yeah. We see this all the time and as I said Q2, we had.
It happened a bit faster than we had anticipated and we're signaling that we have one project in Q3 that should happen in Q4 with a high degree of certainty.
Okay. Thank you.
The next question comes from Chip Moore from E. F. Hutton. Please go ahead.
Hey, good morning, Thank you.
Just wanted to follow up there just on that project I'm, assuming that's a D var project.
Besides that the project that gets pushed to Q4.
I mean generally we won't put it into the scrubber, but it's not a significant number.
So you know it's multiple millions.
Got it okay. So it's quite material.
And then just.
On margins.
No you've got it sounds like you got nice natural uplift in Q4.
But that nutrient backlog, creating up in volumes.
If we look out right with the 100 million plus of order book.
And then well into next year is there a way to think about.
Pricing and margins within that.
Backlog and how that may roll through is there any help you can give us there.
Not a lot because we try and you know we're not a company that is typically.
Guided margin I don't think where we're at a scale yet, but its hard I mean $100000 $300000 in a quarter.
Things like that happen all the time so it's it's it's a.
You know from a predictability standpoint, what I can say is that the orders that we've been booking.
If we go back to what we talked about.
A couple of years ago, with long term models and things and getting to even higher revenue levels that you know there's nothing that's changed is the business that doesn't allow us to meet those gross margin targets.
Fact that we acquired a business that needs some work and some TLC I think it was a good thing and I think we've learned that there's a lot of market opportunities for the combined product lines, maybe even more than we had originally anticipated so.
You know I don't look at these the issues with with margin.
Real indicator on the health of the business at this point.
Because we have such strong bookings you know we know the margins in the bookings are going to only strengthen us over the coming quarters.
Chip what I can tell you is in that backlog, we do have all the latest cost.
Anticipated in there. So currently cost on that backlog is where all of our costs are today.
It is tough to do a year over year comparison, our backlog because we are a project based business.
So it's not as easy to just look at it and say Okay did you raise your prices, 9%, but what we can tell you is looking at the costs and looking at the prices that we haven't that backlog you know we believe it's consistent to what we're expecting margins to be in 2023.
Yeah No. That's helpful. That's what I was looking for just to make sure you could get back to historical rates.
And then if we do get IMAX or or or some more ECS orders, yes potential nice nice lift as the way to think about it.
Yeah, I think that's a good way to think about it.
Yeah, Okay, all right I think your estimate alright, thanks, guys.
Yeah.
This concludes the question and answer session I would now like to turn the conference back over to Daniel Mccann for any closing remarks.
Okay.
Yeah. Thank you for everybody for listening.
You know we're focused on our long term plan of trying to create a more sustainable business not only in what we do in the products that we offer the world, but just from a financial standpoint to continue to add diversification and growth to what we do.
I am really happy that the company, we've been able to move not only from looking at renewables in the military to now being you know an important part of our business is semiconductor a lot of positive things appear to be coming.
Down the pipe, particularly in the U S.
Given the administration's commitment to things being made in America in that sector.
And then this this mining minerals and materials portion, where we're realizing is.
A lot of other things we talked about during the beginning days of the acquisition being able to cross sell being able to get.
Interesting unique content, that's not there in the marketplace that makes customers excited about us I mean, that's really what we're seeing so I think our future is very very bright and even more diversified now than it was even a couple a few years ago. So.
Thank you everybody for your attention we appreciate it and I am I am I'll say this I'm really looking forward to the call.
In the January February time frame, because I think you're going to see.
All of the good things that we're we've been talking about just start to come to fruition and we think it's a really bright you know beginning of 'twenty three calendar year, hopefully and into our fiscal 'twenty three as well so thanks everybody.
Yeah.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect Goodbye.
Yeah.
Yeah.
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Yeah.
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