Q2 2023 Alpha and Omega Semiconductor Ltd Earnings Call
andendent.
Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor fiscal Q2 2023 earnings call. My name is Tamia and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.
If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to your host, Yujie Zai, with investment relations. Please proceed.
Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2023 second quarter financial results.
I'm Josiah, Investor Relations Representing for ALS. We meet today, our Dr. Mike Chang, our CEO , Steven Chang, our president, and his phone number is CSO. This call is being recorded and broadcast live on to the web. A replay will be available a seven-day phone call via the link in the Investor Relations section about website.
Our call will proceed as follows today. Mike will begin with strategic highlights. Then, Stephen will provide business updates and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the March quarter. Finally, we will have the Q&A session.
The earnings release was distributed over the wire today, February 6, 2020, until the African market closed.
The release is also posted on the company's website. No earnings released and this presentation will include non-GAAP financial measures.
We use non-GAAP measures because we believe they provide useful information about operating performance that should be considered by investors in conjunction with the GAAP measures.
The reconciliation of these known GAAP measures to compare both GAAP measures is recruited in your own inspiration.
We remind you that during this conference call we will make certain forms of these statements, including discussions of the business outlook and financial projections.
Before looking at statements are based on Manuset's current expectations, it will involve rich and uncertainties. As the cause are actual results that are from the cheerleading in such expectations.
For a detailed description of these reps and uncertainties, please refer to our recent and subsequent volumes of the FEC.
We assume no obligations to update the information provided in today's call. Now, I will turn the call over to our CEO , Dr. Mike Hay. Mike?
Thank you, New Year. Happy New Year everyone and welcome to today's call.
It is good to speak with all of you again. If I go over our results.
I'd like to begin today by saying that I am proud to be speaking to you for the last time as the Chief objective officers of AOS.
22 years ago, I founded this company with a vision and a dream.
While this vision never ends, today we are one of the most successful and well recognized and fast growing power semiconductor companies in the world.
I am proud of all that we have accomplished together.
It is with great confidence and pressure that I now can achieve objective position to Stephen.
Who has already demonstrated his leadership skills?
and the President's Accument sent his appointment as AOS President two years ago.
leading AOS to achieve regular revenues and profitability.
I want to send each and every one of AOS team for your dedication and hard work.
It has been an honor to walk alongside you and see this company grow and thrive.
Thank you all for the memories and the opportunities.
We are in the midst of an incredible journey, and I am grateful for every moment that has led us to this point today.
Our continues to be deeply involved in AOS as executive chairman.
and plan on focusing more on statistical matters such as key relationships with critical partners and customers of AOS.
and the technology deployment essential to ensure stand and long term growth.
Now!
Moving on to the results, our FIFO Q2 results were below our expectations.
revenue worth $188.8 million.
Now get go smarging was 29.5%
And the non-gap EPS was 67 times.
Last quarter, we indicated that we expect an industry-wide inventory correction to impact us over the coming quarters, particularly in PC and smartphone.
indicated that we expect an industry-wide inventory corruption to impact us over the coming quarters, particularly in PC and smartphones. Moreover, we expect an industry-wide inventory corruption to impact us over the coming quarters, particularly in PC and smartphones.
The magnitude of this interruption for certain customers was larger than we expected.
inventory level across many of the consumer markets.
that we serve remain high. And all customers are working to bring a price change, human career level, back into finance.
I'll quickly add Oscar.
As a result, we focus much poorer revenue to be approximately $130 million, plus or minus $5 million.
We expect to recover good portions of the sequential decline in the June quarter.
and even more so in the second half of the year, especially with the reopening of China.
As we stated last quarter, our business is not immune to macro challenges.
and induct your cycles.
We have been through many of these cycles over the past 22 years.
and do not make decisions based on just a couple of quarters of data.
Every cycle since the beginning of our industry has eventually ended.
and a big way to renew that of growth.
to a new lack of growth and this one is no exception
We are confident that given our strong fundamentals.
We are in the best position we have ever been to continue our growth momentum once this content is past us.
Joviumicient on the Hair.
Carlin the 2022 was one of the most successful years in our history.
We as sight?Point come to us. Okay. Is Avi?
We have records across almost every metric.
Remnant was the record $794 million up 9% year over year. And the non-gap earning per year was the record $4.5% year over year.
Further, we caught the ear with record tier 1 customers and market share across most product segments. In our two largest product segments, PC and smartphone, we grew significantly faster than the market.
This was due to our success in gaining market share, increasing farm contents, and deliberately improving our product mix toward more premium tier products.
further gaming water outstanding success for 2022
We want to leave it here with the number one gaming console manufacturer.
And this business fraud more than doubled year over year, and is now a major revenue contributor for AOS.
and is expected to continue to grow even in a weakening consumer demand environment.
These are just a few examples out of many achievements that demonstrate our fundamental strengths and competitiveness of our products.
and the subtraction that we have gained. Stephen will provide more details during his section of the call. But our business has never been stronger.
which is why I'm confident that our outlook is largely due to macroeconomic factors.
rather than anything specific to fundamentals.
A channel inventory is consumed.
and the broader economy recovers.
we expect to see a refund in revenue.
in closing
demand for more and better power management is driven by what we call the electrification of everything.
We believe this hell wins. It's here to stay. And we are in the best position we have ever been to continue to win in this market.
We acted 2022 with a strong balance sheet.
which enable us to navigate the current economic environment while keeping our eyes on achieving our $1 billion annual revenue target in the next couple of years.
Thank you. I will now turn the call over to our future CEO , Steven.
for an update on our business and a detailed segment report.
the graphite pieces and a t?edtechnical report. See you then.
Thank you, Mike, and good afternoon, everyone. Overall, I'm very pleased with the performance we achieved this past calendar year, and we delivered it while navigating a very challenging business environment with disruptions from China's zero COVID restrictions, global supply chain constraints, and significant inflationary headwinds.
Despite all of this, we achieved record revenues across all of our segments. Our calendar year 2022 computing segment revenue increased 5.9% year-over-year to $332.6 million. Our calendar grew 13.4% to $173.6 million.
communications increased 23.9% to $125.7 million, and our power supply and industrial increased 7.8% to $155.5 million.
These results were made possible by our record tier one customer partnerships and market share, as well as a much more diversified total solutions product portfolio that serving a broader set of end markets across consumer commercial and industrial use cases.
While our near-term outlook and general market sentiment indicate a significantly weaker demand environment and inventory correction for 2023, we believe there are a couple of factors that make us uniquely positioned to benefit on the other side.
One, a good portion of the slowdown that we are experiencing is driven by our ShareOne customers where we have leading share.
However, our sockets and BOM content in their devices remain unchanged, and our relationship with these customers are the best it has ever been. These customers are the leading device makers in their categories in the world, and demand for the devices over time has only grown. This is why we are confident that the slowdown we are experiencing will be behind us as demand for these previous trends. Thank you for your time and through the Zoom Rooms hope for as much spray dust. We will continue with Guys that Can is coming up next.
In addition, we are accelerating our development in new growth areas such as data center, infrastructure, industrial and automotive applications.
For example, we recently expanded our silicon carbide portfolio to include 650V and 750V silicon carbide MOSFETs for on-board car charging, traction, converters, and infrastructure applications.
Our industrial renewable energy and automotive customers will now have a broader portfolio available to select the right solution that supports their wide range of product power levels at an even higher performance and efficiency level.
Let me now cover our segment results and provide some guidance by segment for the next quarter.
Starting with Computing, December quarter revenue was down 27.3% year over year and 28.4% sequentially and represented 33.8% of total revenue.
Looking back on the year for our PC business more closely, our PC shipments grew in the first three quarters of the year, but demand dropped off rapidly in December quarter as our customers aggressively reduced inventories. Even with a significant drop, our full-year PC revenue was up 3% compared to a 20% decline in PC units according to our
will be depleted in the March quarter and they anticipate resume orders for the June quarter, which will help to recover some of the significant March quarter decline ahead of peak season.
In December quarter, there were some notable areas of strength in our competing segments, particularly data centers, as this area shows significant growth year over year with the adoption of our high performance low and medium voltage MOSFETs by leading cloud providers.
In addition, graphics cards and tablets continue to be strong. Looking ahead in the March quarter, we expect total computing segment revenue to be down about 30% sequentially as we actively work with our customers to right-size their inventory.
Turning to the consumer segment, December quarter revenue once again set records, increasing 21.3% year-over-year and 4.2% sequentially and represented 25% of total revenue. These results were in line with our expectations driven by record gaming volumes, which grew 222% year-over-year and 19.5% sequentially.
Looking ahead, we anticipate our consumer segment to decrease mid-single digits sequentially, driven by a seasonal slowdown in gaming shipments after a very strong December quarter.
Now, let's discuss the communication segment, which also set record quarterly revenue as it increased 38% year-over-year and 12.4% sequentially and represented 18.7% of total revenue. These results were significantly higher than our expectations due to stronger than anticipated shipments to the number one US smartphone customer as well as to China.
For the full year 2022, smartphone revenue grew 24% year-over-year despite an estimated 11.6% decline in global smartphone shipments as estimated by Digitimes. Our growth was driven by share gains in the premium tier smartphone models. This is due to our ability to serve the high-end market with our high performance and high-end
after two quarters of record shipments that didn't fully sell through to end customers as a result of lower discretionary spending due to inflationary headwinds and China's zero COVID restrictions. Internally, we expect our smartphone business to start to recover in the June quarter in preparation for the September quarter peak season.
China's reopening is also a welcome development that should improve consumption. Now let's talk about our last segment, power supply and industrial, which accounted for 21.8% of total revenue. This segment also set records with revenue of 9.3% year over year and up slightly sequentially. The increase was due to share gains and quick charges at the leading US phone maker.
and growth in PC power supplies and gaming adapters. For the March quarter, we anticipate this segment to decline around 30% sequentially due to the inventory correction.
In closing, while we are experiencing a temporary slowdown, inventory corrections and motorcycles are ultimately healthy for our industry.
Calendar 2022 was a record breaking year for us with record revenues, earnings, and leading market share with a record number of tier 1 customers.
We enter 2020-3 with many strengths, a growing product offering, cutting edge R&D, and promising technology roadmaps.
diverse manufacturing capabilities, and strong relationships with strategic customers. As a newly appointed CEO , I am focused on leading AOS Forward and am confident in our ability to continue growing at a faster rate than the overall market. We will maintain and execute our successful strategies.
while also investing in new growth areas such as data centers, automotive, infrastructure, and industrial. With that, I will now turn the call over to Yifan for a discussion of our fiscal second quarter financial results and our outlook for the next quarter. Thank you, Stephen. Good afternoon, everyone, and thank you for joining us.
Revenue for the quarter was $188.8 million, down 9.5% sequentially, and down 2.4% year over year.
In terms of product mix, DMOS revenue was $137.6 million, down 4.8% sequentially, and up 2.3% over last year.
Power IC revenue was $50 million, down 19.8% from the power quarter, and down 10.1% from a year ago. Energy service revenue was $1.2 million as compared to $1.6 million last quarter.
and $3.3 million for the same quarter last year. non-GAAP growth margin was 29.5% compared to the 35.4% in the prior quarter and 36.7% a year ago. The quarter over quarter decrease in non-GAAP growth margin.
was mainly driven by less favorable product mix and an increase in inventory reserve, reflecting the ongoing industry-wide inventory correction.
Non-GAP operating expenses worth $32.8 million compared to $36.6 million for the power quarter and $33.5 million last year.
The quarter-over-quarter decrease was primarily due to lower variable compensation of pools this quarter.
As such, Long gap quarterly EPS was 67 cents per share compared to $1.20 last quarter and a year ago.
Moving on to cash flow.
GAAP operating cash flow was $0.3 million, which included $12.2 million repayments of customer deposits.
By comparison, orbiting cash flow in the prior quarter was $36.7 million, which included $3.3 million net repayments of customer deposits.
The orbiting cash flow a year ago was $50.8 million, which included $11.2 million net customer deposits.
We expect to refund around $30 million customer deposits in calendar year 2023.
Consolidated EBITAS was $31.8 million compared to $45.5 million a last quarter and $46.7 million last year.
Solidated EBITDA was $31.8 million compared to $45.5 million last quarter and $46.7 million last year. Let me turn to our balance sheet.
We completed the December quarter with a cash balance of $287.8 million compared to $316.1 million at the end of the last quarter.
The cash balance a year ago was 269.3 million dollars.
Net trade receivables were reduced to $53.2 million compared to $55.8 million at the end of the power quarter.
They sales outstanding for both the December quarter and last quarter were 30 days.
Now the inventory was $163.8 million at quarter end, slightly down sequentially from $164.9 million last quarter, and up from $129.1 million last year.
average days in inventory were 109 days compared to 106 days in the park water.
Finally, property plant and equipment was $351 million up from $339.5 million last quarter. The fixed asset balance a year ago was $196.7 million.
CapEx for the quarter was $28 million.
We expect CAFAC to drop to $20 million.
to 25 million dollars in level in the March quarter.
Our Oregon FAB expansion is expected to start to run in March 2023.
Now I would like to discuss March quarter guidance.
We expect revenue to be approximately $130 million plus or minus $5 million.
Our guidance factors in the ongoing industry-wide elementary correction and seasonality for the March quarter.
Gap gross margin to be 22.5% plus or minus 1%.
We anticipate the non-GAAP gross margin to be 24.5% plus or minus 1%.
The quota of a quarter decreased, many reflects the impact of the expected product mix changes and lower factory production absorption due to the current inventory correction.
Gap operating expenses to be in the range of $45.5 million plus or minus $1 million.
non-GAAP operating expenses are expected to be in the range of $35.5 million plus or minus $1 million.
Interest expense to be approximately $1.2 million and income tax expense to be in the range of $1.3 million to $1.5 million.
With that, we will open the call for questions. Operator, please start the Q&A session.
Absolutely. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason at all you would like to remove that question, please press star followed by two. Again, to ask a question, please press star one. As a quick reminder, if you are using your speakerphone, please press star one.
Please remember to pick up your hand set before asking your question. Our first question comes from David Williams with Benchmark. You may proceed.
Hey, good evening and thanks for taking the question.
I guess first off Stephen congrats on the transition. It's great to hear and looking forward to hearing more from you there. Secondly, I guess maybe if you could talk about the confidence that you have in the recovery for the revenues in June . I know you gave some color there and talked about a few things, but it sounds like you're expecting a much larger kind of rebound.
for that. But largely it will also depend on the overall macro environment. Then general in a normal seasonal year, we are tracking towards peak shipments in the September quarter for some of our end markets.
We're still from a market share position to offer that. Even at PC, the portion that's seeing the more severe inventory correction, but we'll find that different customers have different levels of inventory and some of them are already starting to place sound around replacements.
on our right side of the inventory levels.
Okay, that's very helpful. Thank you for that. And then how much of the revenue guidance do you think and thinking about that rebound in June is related to maybe a recovery in China versus just more broad-based demand recovery?
That can help certainly. Opening of China will not only affect the consumer spending within China but also impacts a lot of our global customers who also have a good portion of business being purchased by China consumers. That can help too. Yes?
Okay, fantastic. And then even one for you maybe on the gross margin side, just kind of curious if you could give us an idea of the volume versus mix impact there. And then where do you think this kind of stabilizes? I felt that the margins would be maintained a little bit higher even in a more negative environment. But maybe just to discuss from the clips and takes there and what is up the biggest headwinds that you.
because of the product mix. And to a smaller portion was because of inventory reserve increase.
which is also tied to the inventory correction in the March quarter especially. For the March quarter, we are seeing some product mix of what seems like a few months,
and factory utilization because of the top line.
also scaling back into our production. So then, I mean, both product mix and utilization basically contributed to the March quarters margin changes. Thanks so much. I certainly appreciate it. And best of luck on the quarter. Thank you. Thank you. Thank you. The next question comes from Craig Ellis with B Raleigh Securities. B Raleigh Securities, you may proceed.
Yeah, thanks for taking the question and just to start, Mike Chang, congratulations on all you accomplished while CEO you built a great company. And Stephen will look forward to staying in touch with you on these calls and other events.
Steven, I wanted to go back to an earlier question and just maybe frame it a different way. If you looked at your different end markets and if you look out to the fiscal fourth quarter calendar, second quarter, and if you were to rank them by confidence in...
and which could rebound most materially from potential lows here in the March quarter. How would that ranking look and any color around that would be helpful?
I'll also point to computing as the potential to grow in that order. Again, we're not giving specific guidance, but that was the segment that we saw the most inventory correction and the level that that's at now is definitely in the inventory correction territory and we believe that as I mentioned that there are...
and the fourth fiscal quarter will be usually the ramping time to prepare for that. And then the power supply also tends to follow after, follow along with the computing segment. A good portion of the business are the PD adopters.
and power supplies for computing. We also note in our earnings release that we believe that gaming within consumer is seasonably low, so there's expected to be recovery starting from the fiscal fourth quarter as well.
Okay, so that was compute, comms ahead of product cycles, the PC part of industrial power, and then the gaming part of consumer. Did I get that right, Stephen? Yes, yeah. Okay, great. All right. So moving on to a…
A related question. EFON, if we see a recovery in revenues, maybe back towards, but not quite to levels that we saw in the fiscal second quarter, can gross margins.
move commensurately or will there be kind of a delay just given the way things could float through inventory? How quickly can a change in revenues translate into a change in gross margin?
You mean for the fiscal fourth quarter, right?
Yeah, for physical fourth quarter. Thank you. All right. Yeah, I mean, we would expect in some.
recovery in the gross margin line once we have top line recover and recovers. But the relationship right now is hard to say. I would say depending on the – James B
product mix and utilize.
also which tie to the inventory, both our own inventory and the channel inventory. So by enlarging I would expect to hear some recovery for the…
close margin line. Got it, and are you, how is pricing holding up out there? I imagine relatively good at your tier ones because those are longer-term agreements, but are you seeing competitors now that foundry capacity availability is loosening up? Are you seeing some of your competitors get more aggressive with pricing?
How should we think about the ASP dynamic over the course of this calendar year versus what you saw last year?
Yeah, I mean the last couple years, yeah, it was pricing wise and it was favorable pricing environment. I mean now we are in the inventory.
correction mode. So we would expect some ASP erosions back. I would expect, yeah, for the calendar year 2023 price erosion that probably didn't back to normal or even.
worst-ended historical trend. Okay, and is normal a few percentage points, or how should we think about normal levels since it's been two or three years since we have that?
Yeah, I mean, before and back to the years and before two to three years and then I mean, you know, traditionally will be in the high single digit per year basis, but only for
for those same products and then I mean it will sell you same products and you know year over year yes and we would expect some erosion there price erosion there you know a name of the game is and you know we wrote out and
new products and then we reset the ASP and then by providing more efficiency or more functionality then, I mean that's.
Rd new products are for.
Absolutely, yeah. I think you have a history of getting about 100 new products out a year, which does exactly that, resets the price point. So totally get that dynamic. Lastly, at least in my model, operating expense came in quite favorable versus what I expected.
Is that mostly tactical belt tightening or are you doing anything structurally to reduce top X even as you
push ahead with various product programs, including the things you talked about in automotive.
Outback for the December quarter was largely because of the variable conversation of groups. Because the performance for the December quarter was not up there. The overall weight reduced and the overall calendar year.
Your line is open.
Yes, good afternoon and let me off the mat. Congratulations to you both Stephen and Mike in your new or changing roles. I guess the first question I have is in terms of the linearity in the quarter as well as the start to march quarter. You know, it sounds like orders took kind of a pretty meaningful pause. Sometime especially in the last month or two, can you give us a sense of?
you know, or just more color into how things shaped out as you move throughout the end of the last year and into this year. And also, any update on in terms of the terms business that you've done, what it was in prior quarters and where it might be the next few quarters. Thank you. Sure. Let me get the first part. Maybe you can address the second part, but.
Essentially, we did see a further slowdown in the macro picture since the last time we talked on earnings release. And this is mainly coming from PC and smartphones, both consumer type of products and tied to overall inflation.
and reduce personal spending. This adjustment was seen throughout the supply chain between our start-dispy through the OEM, OEMs. There was a more significant adjustment.
to the changing demand. So the last few years, we're quite strong in demand in this overall industry. So it will take some time for some of our customers to unwind from that and to right-size their employees. So that's mainly affecting those particular areas in the end markets. I want to reiterate again that our...
our products and our position at our customers are still strong. We're happy to have forged stronger relationships with Tier 1 customers. And this is very important, especially during this time to protect our share, and as well as, very importantly, getting us positioned for when the market rebounds will work for them next.
on current business, yeah, I mean, it's a current business right now is pretty dynamic. I mean, this depending on the backlog and market.
Yeah, and then we are pretty nimble and dynamic, so we catch whatever we can. But on the other hand, we do have production cycles there. If we happen to have a lot of production cycles,
inventory on hand, then yes, we can serve.
The thing is that we cannot grab all the current business as we want.
Thank you. That's very helpful. Maybe you found a bit more clarification. Maybe another way to ask the terms question would be to, you know, ask how much of the backlog, how much of the outlook is currently in backlog and also, you know, as we, you know, as we move forward, you know, as we move forward, you know, as we move forward,
As you mentioned a little bit about seeing a potential read down in the June quarter, what your read times are like, our customers placing orders much further beyond that. And finally, I'm just topicing, you know, King gives any clarity into.
you know, how cancellations have changed or looked relative to the past couple quarters. Thank you.
Sure, and then I mean the backlog, the, yeah, in the December quarter, but did experience more backlog adjustment and then a normal quarter and you know, so, push out the consolidation you know, replacement and then I mean a lot of important mix.
changes and shuffling there. Overall backlog level decreased reflecting the industry wide inventory correction. Texas A&M University Social Radio
thing.
So I mean overall then yeah, and then
For the March quarter, our backlog already has been reflected in our guidance. For the June quarter…
Steven just commented on, you know, we saw some sign of recovery and, you know, some customers started placing some orders for the June quarter already.
So, we'll see.
And maybe if I could turn to, you know, touch back on the utilization. Can you give us where the utilization currently is now and where it was, you know, last quarter?
And also what kind of flexibility you have in terms of you know
switching capacity between your internal capacity and your foundry or and your
you know, contracts or obligations that you may have to fulfill on the supply side there, or can you bring more internal if needed? Thank you.
Sure. Utilized, nationwide, we have our own fab in Oregon. And our priority is to utilize our...
internal fab first, yes. That's where we developed most of our new products. So then naturally, I mean, right now, the Oregon fab is still running at a pretty high level of utilization. You're going to feel good.
portion, we expect to come online for this.
to come online.
expansion. In the month of March, we expect to start ramp up Oregon fab. So for the expansion portion actually, yes, we actually we have demand to fulfill. So I mean that's right now it is kind of a pretty...
dynamic and the product mix changes quite a bit. For the back end again we do have some.
on the lower...
A
We also use joint venture and third party foundries and subcontractors. We do as much as we can load our own factory first but sometimes it's pretty hard to load.
You know, between quarter or two. So, you know, this is just kind of a pretty dynamic right now. God, thank you. That's helpful. And I guess just turning to the balance sheet.
You know, how much can you give us how much customer deposits you have remaining? I think from what I've understood you have about $98 million in the September quarter. You repaid about $3 million of that in the prior quarter and $12 million of that this past December quarter. So do I have that right that there's about $80 million left in customer deposits?
Yes, it is in that level.
I guess how do you expect those deposits to be worked through was the repayment this time around? Is it, you know, as you fulfilled some of the capacity arrangements or are they saying they don't need as much capacity and kind of taking some of the deposit back? Is that that it can just give us clarity in terms of the dynamic?
Oh yeah, typically those deposits are earmarked with a certain level of purchase. As I mentioned in the script, we expect about $30 million.
repayment in calendar year 2023. Got it. Okay. And on the internal inventories, do you have a-I know the DOI was a little bit up this quarter. Next quarter, you know, inventory dollars are flat. These are the inventories you can kind of get to the one, you know, maybe a little in 50s.
You have kind of a target that you want to keep in the twerries at.
and where you're comfortable holding things.
would adjust them, you know, according to the market.
situation and I mean we expected to quarter repon to
some level and then the peak.
season normally in the second half of the year yet, and we do need to balance out.
of the capacity and support in the second half of the year. So then we'll see now, I mean largely it's probably...
maintain in that level, current level.
As long as we maintain a dollar amount in the current level, then... Yeah, dollar. Okay.
Great. That's all I had. Thank you.
That's all I had. Thank you. Thank you.
Thank you. There are no questions at this time, so if you would like to ask a question, it is a good start one on your telephone keypad. Hey there.
This is my channel.
I want to thank each one of you for your support and people's need through all these years thick and thin. I really appreciate that.
recession, that is not a good thing. Unfortunately, this life is part of life. Your comment goes, and I'm sure you will end soon.
The important thing which is I believe or we believe is technology. That's long term.
In the last three years, AOS is a
take advantage of the available cash. We drastically.
beef up our R&D in both capability as well as dynamic.
We're a lot of good things or exciting things there and waiting to really shine. So we are very, very competent for tomorrow. And I really thank you at the end of your support and I wish you all the best. God bless.
This concludes the conference call. Thank you for your participation. You may now disconnect your line.
Thank you.