Q1 2023 EMCORE Corp Earnings Call
Okay.
Good day and thank you for standing by welcome to the EMCORE Corporation fiscal 2023 first quarter results conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during the <unk>.
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Draw. Your question. Please press Star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Tom Minichiello, Chief Financial Officer.
Thank you and good afternoon, everyone and welcome to our conference call to discuss <unk> fiscal 2023 first quarter results.
The news release, we issued this afternoon is posted on our website amcor dot com on.
On this call, Jeff furniture and of course, President and Chief Executive Officer will begin with the discussion of our business highlights.
And update you on our financial results and we'll conclude by taking questions.
Before we begin we would like to remind you that the information provided herein may include forward looking statements within the meaning of section 27, a of the Securities Act of 1933 and section 21 E of the Exchange Act of 1934. These.
These forward looking statements are largely based on our current expectations and projections about future events and trends affecting the business such forward looking statements include projections about future results statements about plans strategies business prospects and changes in trends in the business and the markets in which we operate management cautions.
These forward looking statements relate to future events or future financial performance and are subject to business economic and other risks and uncertainties, both known and unknown that may cause actual results levels of activity performance or achievements of the business or in our industry to be materially different from those expressed or imply.
By any forward looking statements.
We caution you not to rely on these statements and to also consider the risks and uncertainties associated with these statements and the business, which are included in the company's filings available on the SEC's website located at <unk> Dot Gov.
Including the sections entitled Risk factors in the company's annual report on Form 10-K.
The company assumes no obligation to update any forward looking statements to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.
In addition references will be made during this call to non-GAAP financial measures, which we believe provide meaningful supplemental information to both management and investors, but non-GAAP measures reflect the company's core ongoing operating performance and facilitates comparisons across reporting periods investors.
Investors are encouraged to review these non-GAAP measures as well as the explanation and reconciliation of these measures to the most comparable GAAP measures included in our news release.
With that I will now turn the call over to Jeff.
Thank you Tom and good afternoon, everyone Q1 continued EMCORE strategic transformation into an aerospace and defense business consolidated revenue for fiscal Q1 was $25 million with 87% coming from aerospace and defense.
Like 13% came from broadband and cable TV represented less than 6% of the company's revenue.
There were encouraging improvements in the business as it continued to work through the operating challenges of such a significant.
Transformation generating a GAAP operating loss of $11 5 million. However.
However, our non-GAAP operating loss was $8 million and adjusted non-GAAP EBITDA improved from negative $9 4 million to negative $6 5 million ton.
Tom will provide color on Q1's gross margin, but I will start out by saying that aerospace and defense margins showed significant improvement at 22% with inertial navigation higher than that.
Not much has changed with respect to the cable television industry and the inventory glut of head and transmitters in our last call. We pointed out the ATX publicly announced that they had licensed the entire prisma to technology platform from Cisco allows.
Allowing that technology to move forward.
Although atx's entry continues to be an encouraging opportunity over the long term, we do not see any short term catalyst for improved demand, although we do see some signs of improvement in the underlying inventory positions within our customer base.
Semiconductor availability continued to tamped down shipments for wireless and shifts within broadband in Q1.
As our customers were still not able to get enough silicon to ship Transceivers and distributed antenna systems to meet their internal projections.
Consistent with what we said in December our chip business continued to get additional traction with customers in the form of engagements and planned growth in shipments.
Going forward in the chip business, we expect to see the ramp get a bit steeper during the summer setting the stage for a much stronger FY 'twenty four.
To conclude my comments about broadband I'd like to return to a statement from our last call in which I made the point the cable TV was complete was increasingly incongruent with our strategic direction.
Consistent with these objectives EMCORE is in discussions with several interested parties to divest our non strategic product lines. We are also exploring other strategic alternatives.
Turning now to aerospace and defense I'll begin my comments by stating that demand for our inertial navigation products continues to build nicely in Q1, our book to Bill in Aerospace and defense was approximately 1.2.
In particular, we're seeing increased demand for AAM PV.
In real world situations experiencing GPS denial such as in the Ukraine.
International bookings were strong for turret based platforms stemming from our supplier position in both Crows and escrow Banos Guardian two programs.
We also received additional interest in the middle East for a long dormant large scale armored vehicle navigation programs on the naval side of our business. We are leveraging our expertise in critical lightweight and heavyweight torpedo programs, such as the Mark 48% and 54 by supporting next generation.
Torpedo platforms.
Finally, we were awarded a follow on order in a precision guided munitions program that continues to gain momentum in international markets. Chicago is book to Bill was actually better than the overall 1.2 that I mentioned earlier with stronger visibility for key programs in all four branches of service.
Beyond program capture we're seeing important signs of acceleration of key programs into their L. Rip phase.
Low rate of initial production. This is a leading indicator of long term growth in particular infrared search and track has become a key area of focus across the services and our multiple design wins in this application stand to benefit in terms of production timing.
As I stated in December the efforts of the extended engineering teams. It Budd Lake in Concord allow shipments for two critical programs to begin in the December quarter, and greater volumes are projected for the March quarter.
The space and navigation team has started to build multiple teemu inertial measurement units in support of the design and validation design validation and qualification.
As it continues to meet shipment targets for board.
These two systems are critical to the launch schedule for United launch Alliance.
Borg is part of the boost stage flight control for Atlas Centuri, Balkan launch vehicles, while team who will be the primary inertial measurement unit permit used for navigation critical milestones for <unk> must be met over the next few months as well as the beginning of product builds in Alhambra, our expectation is to.
Complete qualification late in the calendar year to enable significant volume builds and launches in calendar year 'twenty for when these products hit full production. They are expected to produce 20% to $25 million in revenue.
Per year and are also expected to significantly contribute to gross margins.
Q Mems suffered from some unexpected test set problems in late December and we're expecting Q Mems revenue to bounce back in the March quarter, we saw a steady stream of orders for Q Mems from our major programs of record along with the precision guided munitions order that I mentioned earlier as we've said before.
Pgm's are the largest market segment in our inertial navigation and are expected to be a significant area of growth for EMCORE in FY2023 we remained bullish on these applications.
Before I move onto guidance I'd like to provide an update on integration, which is a key area of focus as of today space and navigation is now running a common ERP system within the rest of EMCORE and has made the cutover from <unk> systems.
This will enable us to exit the cost of the transition service agreement that was part of the transaction.
We are expecting the transition for Chicago to complete in the June quarter, but we've already moved that Rhode Island Engineering team out of the cave H building, we began rolling out <unk> for shop floor controlling Alhambra and expect to integrate it into the other facilities. After we complete the ERP.
Upgrades and exit transition services ultimately this will make EMCORE more efficient and will help us improve our processes cost and lower inventory.
Turning now to guidance for the current quarter, we're expecting that undersold navigation will see some growth largely driven by increased production in Chicago and conquer this will be partially offset by continued weakness in cable TV and wireless Consequently, we're expecting revenue to be within the 20.
$7 million to $29 million range for the March quarter with that I will turn the call back over to Todd.
Thank you Jeff.
Consolidated revenue for fiscal <unk> was $25 million with 87% coming from aerospace and defense and 13% from broadband.
Aerospace and defense segment revenue was $21 7 million, a $700000 increase when compared to the prior quarter aim.
<unk> achieved sequential quarter growth despite shipping delays for our Q Mems product line as the rest of the A&D portfolio performed well.
This included the first full quarter of results for the inertial navigation operation in Tinley Park that was acquired during the prior quarter.
And the space in Nab operation and Budd Lake that posted another solid quarter.
Additionally, the <unk> product line in Alhambra, along with defense Opto electronics, both increased over the prior quarter.
Broadband revenue was $3 3 million, a $1 3 million sequential quarter decrease due to a further due to a further drop in sales of optical transmitters and lasers sold into the cable TV infrastructure market.
To add some perspective on the severity of the current downcycle cable TV product revenue. This quarter was $1 6 million compared to $28 5 million in the year ago quarter and $21 million when looking back to just the March 2022 quarter.
As mentioned on our last call. We are in a much deeper cable TV down cycle. This time around than the company has experienced in at least the last 10 years.
Broadband revenue was also affected by lower nonrecurring engineering, our NRT revenue associated with next generation Chip development.
Let me now turn to the rest of the operating results the focus of which will be on a non-GAAP basis.
A&D gross margin rebounded to 22%.
Driven by a the return to historical gross margins for the recently acquired operations in Tinley Park in Budd Lake.
B onetime Q Mems inventory valuation charges in the prior quarter.
And see better Q Mems manufacturing yields at our Concord site.
Conversely, the very low level of revenue for the broadband segment combined with higher fixed costs under absorption resulted in an overall consolidated gross margin of 15%.
Operating expenses overall came in lower than anticipated at $11 8 million in the December quarter compared to $11 2 million in the prior quarter.
While we added a full quarter of results for the inertial NAV business project related R&D costs, which tend to be uneven quarter to quarter were lower than average in <unk>.
As mentioned during our last call EMCORE has undergone a momentous and rapid change to the revenue profile.
During the first half of fiscal 'twenty, two broadband accounted for 75% of the business.
And just a couple of quarters later in fourth quarter of fiscal 'twenty, two and first quarter of fiscal 23. This is completely flipped to over 80% of revenue coming from aerospace and defense.
The company is now better positioned for higher growth with a broader based portfolio of our inertial navigation products expanded customer reach.
And in a substantially larger and more stable marketplace than the highly cyclical cable TV market.
While the December quarter was better compared to the prior quarter fiscal <unk> results still reflected a significant and swift changes to the size and mix of the top line.
<unk> operating loss was $8 million compared to $10 8 million in the quarter before adjusted EBITDA improved to negative $6 5 million net loss was $8 2 million or 22 per share compared to $10 9 million or <unk> 29 per share in the prior quarter.
Shifting over to GAAP results for a minute fiscal.
Fiscal <unk> net loss was $11 7 million or <unk> 31 per share. This included acquisition related cost of $2 1 million severance charges of 475000.
And a $1 2 million book gain associated with the sale and lease back transaction of the Tinley Park property obtained as part of the inertial navigation asset acquisition from Kv H.
Turning to the balance sheet, we had cash of $24 2 million at December 31, compared to $26 1 million at September 30th.
The $1 9 million net decrease consisted of $6 5 million used to fund regular business operations.
$3 5 million used for financing activities, consisting of a $3 $2 million loan balance reduction and 300000 and debt service costs.
$1 4 million for acquisition related costs and 800000 for Capex.
Offsetting these uses of cash was three was $10 3 million in net cash proceeds received from the sale leaseback of the Tinley Park property.
Before we get to the Q&A I'd like to share with everyone that both Jeff and I plan to be at the Cowen Aerospace Defense and Industrials conference on Thursday February 16th in Arlington, Virginia, including a presentation and in person investor meetings, we plan on.
Providing further details prior to the event.
And with that we are now opening up the call for your questions.
Thank you as a reminder to ask a question.
Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Our first question comes from Richard Shannon with Craig Hallum, You May proceed.
Well, Hi, Jeff and Tom Thanks for taking my questions.
I think my first couple will probably be.
More for Tom here, just looking at the December quarter results here on gross margins.
Broadband gross margins actually negative and seems hotter interesting that revenues went down $1.3 million and gross profit down almost the same amount, which seems like pretty high leverage I know you I know, it's gone up and down but it seems like dramatically below what I would've expected. So can help us understand that dynamic is that temporary or what was going on there.
Well the reason why there was a sort of a little bit of a disjoint meant that youre, referring to is the court. The absorption of the costs are based on production activity during the quarter.
Revenue so.
In the quarter before we had the.
Under absorption in the Fab Richard was not.
As low as it was at this quarter, even though the revenue was lower this quarter so that accounts for.
I think that accounts for the GAAP that you're asking about.
And then <unk>.
Revenue does have.
We went we did go from four 5% to three three.
So that is obviously a factor as well.
Okay and the activity levels are you referring to are these at a bottom in the December quarter or.
Or or not I guess that will fall into a couple of questions. I had were later in gross margin going forward, but the activity levels you start improving from here.
Hey, Ken.
You referred to activity levels being even lower in December there was a driver for gross margin. So are those activity levels bottomed out here in December or or not necessarily as we get into March and later.
Likely has bottomed out.
Okay excellent Thats helpful. A couple of questions on how to look at the March quarter here I, just want to make sure I got the.
The dynamics here right.
Obviously, some nice growth coming in A&D I, just wondering if I'm reading right that broadband can be flat to even down in the quarter does that.
Is that the right way to.
With your comments.
It's going to stay right around where we were just where it is in the December quarter Richard.
I mean, maybe some small changes.
No catalyst to move it in either.
Yes, Scott.
We're going to look very similar.
Okay, that's what I figured just want to make sure. So let's let's dig in here done in gross margins as you look for the March quarter, if you want to.
Draw some conclusions we should think about going forward that'd be great here, but maybe just talk about activity levels bottoming out.
In the broadband business coming forward in March here, and Youre growing in A&D, which has nice fall through margins here. So how do we think about gross margins for this quarter. When we talked to about five weeks ago on your last earnings call you talked about a goal of getting to 20%.
And so I'm wondering if that's a number that we should be thinking about or how do you help us.
Kind of pegged out what you're thinking for gross margins this quarter.
Yes, I think overall consolidated that 20% number that you are referring to is a good a good way to look at it Richard D. Like we just said the broadband segment is going to look similar.
That's our expectation in the March quarter, but A&D will.
With respect to see the growth.
And top line and in margin.
Things are getting better in Concord.
The extra volume alone will also help absorb some other overhead cost and some of the other facilities.
The A&D business could very well do a gross margin.
Call it.
Somewhere between 25 and 30.
Somewhere in the middle of that range.
And.
Do the math you can see that that would probably come out to about a 20% consolidated margin.
If we execute towards that and we get the mix that we think we're going to get for the quarter.
Okay that is very helpful.
Let's see a couple of question I will jump back in the queue here just touching quickly on the topic of divestiture of of potential businesses here I guess, a two part question for you, Jeff, but how should we think about.
Timing here and I know youre not going to talk about what kind of eventual outcome, including proceeds where you might see from this.
But any comments on it.
The end.
And customer here I think you may have mentioned something about a strategic partner for this one.
Let's just start with Eric and get your thoughts Jeff. Please.
Yes, I think.
The likely scenario is somewhere within a quarter of where we are right now.
Could be more toward the end could be.
Sooner.
It just depends on.
Due diligence with the parties and how long.
That takes but I think thats, a reasonable way of looking at it.
The other thing is just to just to.
Clarify one other thing.
I just got done look looking at it before.
I sat down the cable TV business. It did have some some.
Excess and obsolete there was a little bit unusually large we wouldn't expect that to happen again that was part of the thing that dragged down their gross margins.
But back to your original question yes.
Yes, I would say within three months is probably quite reasonable way of looking at it.
Okay.
And just to be clear on that Jeff is this contemplating just the cable TV business or other elements of the broadband segment.
There are other pieces as well.
Okay Perfect. One last question for me I will jump out of line, let's talk about the chip business here.
I guess two pieces, maybe you can talk about some of the new engagements that you have going on here.
Types of customers applications et cetera, when those might hit as well as I think you mentioned a ramp here kind of getting this summer how many customers and what's kind of your expectation.
Our thought process that we can think about as we get into fiscal 'twenty four about revenues per quarter on that.
Yes so.
If you took a look at the total number of customers for custom chips and the engagements summer are shipping some are not.
Five or six seems about right.
There are.
There is one customer that has multiple programs with us and I can't say more than that.
Again, what I would say is that all of these.
Programs are targeted targeted into the data center and possibly even telecom space.
And so they really don't.
Other than common design expertise and manufacturing assets. They really don't have an impact over what the things were doing over in A&D.
As we exit 'twenty, three and going into 'twenty four.
I think you can look at revenue from.
From those products sort of getting into the three or $4 million a quarter range.
Alright, and that'll that'll have a pretty significant impact on the absorption.
Okay.
Excellent well I look forward to seeing that I will jump back in the queue, but thanks, Tom again.
Sure.
Thank you.
Our next question comes from Tim <unk> Northland You May proceed.
Hi, good afternoon.
My question on him.
Hey on the operating expense side came in.
Lower than at least I expected here I don't know if thats some measure of.
Synergy or acquisition integration.
But as you look forward.
Was there anything kind of anomalous about that.
That opex in Macau look do you have heading forward here for.
For Opex to hang around this level or maybe ramp up a little bit with revenue.
Probably will.
Go a little bit higher than where we finished the.
Most of the most of the Opex, Tim is pretty steady.
You get into certain line items like project costs. This is material used in R&D that tends to be uneven.
Sometimes theres NRG to cover it sometimes there isn't so that's really the thing that makes it move around from quarter to quarter the rest of the.
The salaries and the people and all those kind of costs are.
Very steady so what you're likely to see is a little bit of a bounce back up to I would say, maybe the 12 range.
Because materials are likely to go a little higher I mean, they were well below average this quarter and even if they just go back up to average.
It will be over 12, but we also if you recall last quarter we.
We announced a reduction in force, we got a little bit of the benefit of that only in the last few weeks of the quarter. Because we took the action in early December .
You'll get a full quarter of that both in cost of goods sold and Opex and that should keep the opex.
Right around the 12 number per quarter, yet Tim as Tom pointed out the only wildcard and this is.
Where the the nonrecurring engineering contracts land.
Sometimes depending on the deliverables, we have too.
Record those as an offset against R&D in which case, you'll see a.
Movement down in Opex in other cases, those dollars just get build out through cost of goods. So.
And there is enough NRA in there it could start to move the numbers around so don't be surprised if for some reason it looks a little better I think Tom captured the spirit of of where we're headed with this.
Operationally, we're wringing out we've wrung out a fair bit of synergies in head count. So a few more we might get here and there.
Especially as we finish some of the systems work.
But most of them most of those synergies are now going to come from.
Improvements in the way the manufacturing operation work, so youll see that in Cogs.
Starting in the summer but.
It'll it'll continuing improvement from there.
Got it thanks and.
Jeff you mentioned some signs over back on the broadband side.
Some signs of improvement in inventory situations, we've seen.
Pretty strong finish to the year in terms of what the big operators are doing and obviously charter moving into a major upgrade cycle here.
Kind of real time, I Wonder if you could be more specific on what you're referencing with regard to those signs of improvement in.
Should we assume that as a result of some of this increased network investment activity or.
How do you see that playing out.
I think I think you've touched on part of it Tim which is the.
Just the fact that actually the the primary glut of transmitters out there what are called linear <unk>.
We're primarily consumed by charter and we see evidence that that is changing and that.
Other msos are.
Using those instead of <unk>. So that's part of it the other thing is that.
One of the things you find when you had a glut of inventory.
Is that.
The the Oems.
Miss forecast the channel plan a bit and so you can start to see based on the odd wavelengths that are ordered.
It's really going and you have a pretty good idea, where it's going so thats.
Are the signs that I mentioned in the in the call.
Sure.
Thanks, and one more for me I think you mentioned.
A one two book to Bill.
The December quarter for A&D and <unk>.
Higher in certain areas I Wonder if you can comment on what Youre seeing from an order perspective, thus far this quarter and whether you expect relatively robust order flow to continue and enable you to grow.
A&D revenues sequentially throughout the year.
Yes so.
It was really a good performance across the board.
Again, inertial NAV, leading the way.
<unk>.
In the.
In the current quarter it may come down a little bit we still expect it to be.
North of one and in the June quarter based on program timing, we're expecting to see something significantly better.
And Thats just based on what the program offices are telling us.
The point that I've made is oftentimes in cable were running with six weeks' worth of backlog.
And it's it's maddening at times I look at our backlog report now and it's greater than six months.
And we see that starting to build in some of these larger programs.
So the visibility is dramatically different we didn't have six months visibility.
At any time at EMCORE for cable TV, except during Covid.
Period.
And we expect that this kind of visibility as the norm rather than the exception in A&D.
Got it thanks very much.
Thank you.
Our next question comes from Paul Silverstein with Cowen You May proceed.
Asked and answered Richard did a fine job thanks, guys.
Hi, Paul.
Paul.
Thank you and as a reminder to ask a question you will need to press star one on your telephone.
Okay.
Our next question comes from Richard Shannon with Craig Hallum, You May proceed.
Hey, guys.
Two more follow ups from me.
To follow up on Tims last question and your response here about thinking about growth throughout the rest of the year, maybe thinking about it another way and Jeff taking some of your comments from your prepared remarks about some of these.
Products in here.
Taken it mostly on a product by product basis, rather than programs talk about timing.
And Borg and some Q Mems products.
Yes, broadly speaking can you kind of fit.
Those products into the.
The quarter over quarter is where you might see some outsized growth and ultimately kind of fits into the scenario, where you get to breakeven how do we get there can you kind of help us put those things together a little bit more carefully I guess.
Sure well again, one of the one of the points that we've made is.
I called it I think the 30 30 point, which is we wanted to have gross margin in the low thirties and revenue in the low thirties in order to get to.
EBITDA, so, let's just take the midpoint of the range call. It 28 that we forecasted and you say, okay. Jeff you need another part where you're going to go get it okay.
In my prepared comments I mentioned that just all by itself.
<unk> could provide $20 million to $25 million worth of revenue a year and thats. So theres my five per quarter and that is just one program.
So there are other programs, which are ramping up.
Programs for Lockheed and infrared search and track we're seeing.
<unk> by other branches of the service with Raytheon for their own products like that.
We're starting to see the work regarding the <unk> II C Abrams tank, which we're a part of.
With commander Gunnar sites start to move forward and so the interesting thing Richard is.
It's really different for us at this point compared to say, where we were two years ago is we've won the programs that we need to ramp. So this isn't a case, where it's really speculative go gets on program wins.
It's executing on.
Low rates of initial production getting things qualified and then into production.
So.
That's the answer to the first part of your question about revenue getting into the question about gross margin.
Again, there is.
The thing that we've always talked about is that we're volume sensitive.
And so we get hit with these under absorption charge.
Under absorption charges and those are in.
In the fab.
Primarily but they also occur.
Within the assembly areas in the business so as we.
Ramp up production and start generating this absorption right.
The overhead.
Even without a change in the bill of material, even without a change in the product sales price margins go up.
Period end of story.
So there is again if you look at the P&L in the current quarter. Yes. There was some some cable TV stuff, we decided to write off there is really not much of it in A&D.
And.
Scrap and most of the business was fine I think all we've got to do is execute on the fundamentals and get the volume up in the gross margin problem largely takes care of itself.
That's helpful. Jeff maybe one quick follow up on the topic, especially.
<unk> stood out here in terms of its size, saying that kind of gap you all the way to breakeven here.
Is that something in the last call you had talked about a breakeven point, maybe Ken early next fiscal year.
I guess it was my understanding attainment was going to be more of a calendar 'twenty four story. So I would assume we've got other drivers maybe smaller each individually that helps us kind of gap up there.
It is more of a calendar 'twenty four sorry, my mis understandings.
Yes, so it's not quite that black and white, Richard because what has to happen. For example is there's a big ramp up in activity purchasing materials, some of which we actually get to recognize some revenue for albeit with a just a material overhead right on top of it.
Well prior to that production.
Production happening so youll start to see signs of a ramp before the actual delivery of multiple units per quarter.
And.
Youll see a little bit of that in March but the other programs that are out there.
In terms of.
New orders for Mark 54 ramps on infrared search and track ramps on this loitering munitions program.
Those are the things that are going to continue to move the needle between now and the time, where I'm, telling you Hey, we were able to ship 24 team moves in a given quarter. Okay. So there is no hockey stick. There is no step function, if youre going to see steady improvement.
I use the team who production as an example, because it's.
So definitive yes, we know what the Kuiper launch rates are we know when <unk> is expecting us to get done and when I say expecting I mean.
Needing us to get done and get this thing.
Out the door to them with a very high degree of quality and there is no room for error.
But the reality is we talked about this book to Bill of one two and we are going to be.
Giving you some color on that going forward.
The other programs are there to continue to close the gap.
And we ultimately believe that <unk> will be a bit of icing on the cake.
But between now and then Youre going to see continued signs of growth and in the quarter. We've we've just forecasted that's what we've said.
Okay Fair enough that is that's a great explanation. Thanks for all that detail Jeff My last quick question for both of you.
The stock at the valuations that its been trading at in the recent past year fairly low and I think people are worried about a dilutive capital raise.
You talked about the path and potential timing of breakeven, we've got a potential divestiture.
That should yield some amount of money I don't know how to speculate on that and youre not going to tell us what that is but.
With the things that you know.
What do you think the odds are having to raise external equity capital versus being self funded till you get to breakeven.
Yes.
That's really not something I.
I can comment on today.
Obviously with the capital levels the way that we are.
Where were at you look at what Wall Street thinks on one hand, I think there's a view that well I may get to see this thing on the bottom if.
Or on the way down if if theres a raise but on the other end there are say deep value longs that say.
Well, we need to make sure. This thing is funded so that we don't have a problem that we can see our investment thesis play out.
And so.
It's probably not something.
I feel comfortable commenting on today.
Okay.
That's fair enough I just wanted to hear your best guess and I think we've heard that so I appreciate all the answers today, Jeff that's all for me.
Thank you. This concludes the Q&A session and I'd like to turn the call back over to Jeff richer for any closing remarks.
Well I just want to close by thanking all of you for your interest in EMCORE.
And as I, usually do I want to recognize the team for the absolute target efforts and perseverance.
As we reinvent the company as an aerospace and defense business and thank you all for.
Joining us today.
Yes.
Thank you <unk> concludes today's conference call. Thank you for participating you may now disconnect.
The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
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The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
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[music].
Yes.
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[music].
Yes.
[music].
Okay.
The conference will begin shortly.
Lower Johan during Q&A, you can dial star one one.
[music].
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[music].
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[music].
Yes.
Sure.
[music].
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[music].
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[music].
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[music].
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[music].
Yes.
The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
[music].
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[music].
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[music].
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[music].
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[music].
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[music].
Okay.
The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
[music].
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[music].
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[music].
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[music].
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[music].
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[music].
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[music].
Okay.
The conference will begin shortly.
Lower Johan during Q&A, you can dial star one one.
[music].
Okay.
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Cool.
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[music].
Yes.
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[music].
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[music].
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[music].
Yeah.
Phil.
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[music].
Yes.
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[music].
Yeah.
[music].
Yes.
The conference will begin shortly.
Lower Johan during Q&A, you can dial star one one.
[music].
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[music].
Yeah.
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Sure.
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[music].
Okay.
[music].
No.
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[music].
Okay.
[music].
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[music].
The conference will begin shortly.
Lower Johan during Q&A, you can dial star one one.
[music].
Okay.
[music].
Okay.
Okay.