Gilat Satellite Networks Ltd. Q1 2023 Earnings Call
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Ladies and gentlemen, thank you for standing by the conference will begin shortly.
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Ladies and gentlemen, thank you for standing by well welcome to <unk> first quarter 2023 results conference call. All participants are present in listen only mode. Following management's formal presentation instructions will be given for the question and answer session.
Operator assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded may 9th 'twenty 'twenty correct.
By now you should have all received the Companys press release, if you have not received it please contact <unk> Investor Relations team at 8-K Global Investor Relations at 16466883559 or view it in the news section of the company's website www.
Do you like Dot com.
I would now like to hand over the call to Mr. Odell E K Global Investor Relations. Mr. Helft would you like to begin.
Yeah, Good morning, and good afternoon, everyone and thank you for joining us today for <unk> first quarter of 2023 with a conference call and webcast.
This call will be available beginning at approximately noon eastern time today may nine because it works.
That's something that we're excited for a period of 30 days.
Also please note that investors are urged to read the forward looking statements and good afternoon annuities with a reminder, that statements made on this earnings call and the diagnostic silicon chips.
To be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
All such forward looking statements.
Regarding future financial operating results involve risks uncertainties and contingencies, many of which are beyond the control of <unk> and which may cause actual results to differ materially from the anticipated results.
Under no obligation to update or alter these forward looking statements, whether as a result of new information future.
Or events or otherwise and the company expressly disclaim any obligation to do so.
More detailed information about risk factors can be found in reports filed with Securities and Exchange Commission.
With that let me turn to introductions on the call today are Mr. <unk> <unk>.
And we think he's been here.
CFO I would now like to turn the call over to identify.
Alright.
Thank you.
Thank you everyone I want to thank you for joining us today for our first quarter of 2023 earnings call.
2023 has started very well for.
The first quarter of 2023 was another quarter in which we showed solid.
If you have any goals our growth was broad across multiple business areas and totaled 15% compared to the same quarter last year.
The significant improvement.
Margins gross margin, reaching a multiyear high of 42% and adjusted EBITDA of $8 $4 million more than triple the justice EBITDA of the same quarter last year.
As you can imagine I'm very pleased with the results for the first quarter.
Looking ahead, we are increasing our profitability expectation for the year, we expect GAAP operating profit of between $16 million to $20 million and adjusted EBITDA between $31 million to $35 million.
While keeping the revenue guidance at the same level of between $260 million to $280 million with.
With all of them 23 is turning out to be a very strong and profitable. Therefore, I am pleased to highlight three major activities achieved this quarter.
We continue to make great progress with our strategy to be the partner of choice for the satellite operators.
When we signed.
This quarter, our strategic agreement with a leading IFC service providers or does it potentially tens of millions of dollars for the development of supply of electronically steered antenna.
And so we signed an agreement to acquire data bus Inc. A U S defense integration with <unk>.
Secondly, boost.
Focusing on the U S Department of defense.
I'll now focus on some additional business achievements and opportunities.
And then you are all southern communications continue to be blindly focus bogey that we strengthened and expanded our strategic relationship with a satellite operator, Ses and Intelsat misgiving autism.
During the first quarter of 2000.
23.
During the first quarter and the east coast that they're leading global satellite operator, basically Spain chose guides for next.
The next generation platform for its new highly flexible and efficient unless someone else snacks or something like that is further testament to the great market acceptance with sky fall as we experience additional operators choosing good luck.
And platform.
We have a pipeline of operators that see the value of the Skype for which was designed to meet the need for the HTS multi orbit, so 25 satellites and cylinders sales in multiple applications.
No it won't be extended our strategic partnership with Ses to include also the classic SCS as existing MEO constellation. In addition to Scott's point, what are they being the platform of choice for the also it'd be Empire and Ses 17.
So having them all.
Interest on the strengthening its strategic partnership when he loves enjoying the multi service capabilities over the last platform and.
Such as in flight connectivity and cellular.
As a reminder, sky sports children for intercept high throughput satellite.
Yes, Paul D, which was launched last months.
I'd just be a product line, we are on track as previously reported product with significant potential for large N. Just so constellation.
The ISP segment remains a strategic market a significant growth engine as I mentioned earlier I'm excited to share the window for a major user projects with the potential of tens of millions of dollars with a living IFC service providers neutral.
It will enable us to increase our IFC presence.
And to enter new market segments, such as IFC for business Jets.
The connectivity for government and military aviation.
This study used a project is an important turning point and growth engine as we enter the new promising and growing eastern market. For example, we are collaborating with our partners on.
Several potential projects for both of them signed IFC transfusions or the play.
In addition interest that continues to expand its global IFC network to include both <unk> and Scott you can see any walking too good.
This demonstrates the great advantage to our partners on upward compatibility, while protecting the past investments.
We expect even further expansion as IFC picks up an intercept broadens our global coverage was increased capacity to serve additional aircraft.
The large platforms, we don't work on multiple satellites, including intercept I asked for the East Coast, Mexico size 40 seats, and you'll just have to eternity.
Doing so.
During the first quarter and we signed an agreement to acquire <unk>, Inc. A U S defense satellites integrating these is a major step in our initiative to increase our presence in the strategic growing defense markets.
The acquisition is an important milestone for the expansion of deluxe business into the U S. D O D and government sectors as well.
Two other international governments and defense markets.
The acquisition price and the fixed component and an airline components that together total enterprise value of up to $45 million as part of the acquisition.
Approximately $50 million of database, that's mainly Tibet and most of the remainder of the purchase price of up to $30 million, including the <unk> portion will be paid in the last year I believe that we are progressing well with the closing of their transaction that is subject to subject to regulatory approvals.
It's just an approval in the U S. We expect our revenues in the defense export increased by approximately $50 million.
On a yearly basis following the closing of the acquisition, which is expected in the third quarter of 2023.
In addition, this quarter, we launched a new product or the defense market that we expect to further enhance our offering.
First is they're doing a modular hot Swappable high power amplifier solution designed to disrupt the industry by its ability to replace existing satcom solution based on <unk> technology. The U S. You know these already evaluating this SSP eight four significant significant satcom programs 175.
Voting on all the value that millions of dollars that is in the coming few years and the ability to pursue additional USD and commercial programs.
The second addition to our portfolio for the military and government market, then you start to like more than Sky sport tourists.
This new more than can also operate from sky can see and as such protects Boston investment of customers have already adopted he loves living platform.
In our strategic growth engine, and we continue to expand our global presence with multi million dollar of orders. We continue to receive orders from leading mobile network operators as well as from satellite operators was chosen.
As the lead technology fulfill all backhaul, including this quarter.
Failure, Latin America and Africa.
The enterprise market to do.
Stood out during the quarter.
First in Asia, a multimillion dollar order was received to expand and advance disaster response National network to ensure service continuity.
In Latin America, and World, leading financial services company is deploying millions of dogs get out technology across the country for communication pickup over satellite to expand.
Liability and robustness of the natural Haynesville.
We made progress this quarter, we spud a tariff accepting then that's what you know a fifth project in the Asia region. This will allow us to shift the operation phase and to provide services to customers.
Furthermore, I am pleased to report that in January this year, you'll have received about $3 two millions daus as initial payment for the first arbitration of the globe ratios once again volatile and the Peruvian Ministry of communication in 2018 and in 2020.
2022 for a total amount of approximately $29 million.
To conclude I believe that you have today.
Best position it has been in a long time revenue is growing strongly with bookings backlog and pipeline, it's a very healthy living.
Primarily but not totally.
Strengthening and growing the relationship with the satellite operators.
We're going to build our position in the defense market with the agreement to acquire data bus.
And two embarking on knees are definitely unfortunate for IFC with a potential tens of millions of dollars just as important looking ahead, we are well on track with our revenue expectation for 2023, Oh between two and $260 million to $280 million.
<unk> is loss in revenues, 13% at the midpoint.
We're increasing our profitability expectations GAAP operating profit of between $16 million to $20 million.
And adjusted EBITDA of between 71 to 75 million representing.
Growth of 31% at the mean.
At the midpoint.
I'm looking forward to a successful and materializing many of the opportunities discussed as well as capturing additional large projects and with that I hand over to give me that many of our CFO Gil.
Thank you Andy and good morning, and good afternoon to everyone.
To remind everyone that our financial results are presented on both GAAP and non-GAAP .
Regularly used supplemental non-GAAP financial measures internally to understand manage and evaluate our business and to make operating decisions related to these non-GAAP financial measures provide consistent comparable measures to help investors understand our current and future operating performance.
GAAP financial measures, mainly exclude the effect of stock based compensation amortization of purchased intangible lease incentive amortization litigation income or expenses incurred related to trade secret claims restructuring reorganization costs merger acquisition and related litigation income or expense.
Impairment of held for sale asset other expenses income tax effects on adjustments onetime changes on deferred tax assets and one time tax expense related to the release of historical tax dropped earnings reconciliation table in our press release highlights this data and our <unk>.
non-GAAP information presented exclude these items.
I will now move to our financial highlights for the first quarter of 2023.
Overall as I did mentioned earlier, we're very pleased with our strong start to 2023.
The 15%.
Percentage year over year growth in revenue and a significant improvement in profitability.
non-GAAP gross margin was at a multiyear high at 42% and our adjusted EBITDA reached $8 4 million more than three <unk> over Q1 last year.
We're well on track with our revenue targets for the year and today. We also increased our GAAP operating profit and adjusted EBITDA guidance, which I will cover later.
In terms of financial results revenues for the first quarter of $59 million, 16% higher than the first quarter of last year, which were $51 4 million.
The improvement was driven by growth in the satellite network segment, mainly from the ph D. S. And then to use though IFC and cellular backhaul vertical in terms of the revenue breakdown by segments Q1, 'twenty three or a new satellite network segment were $33 5 million.
Compared to $24 8 million in the same quarter last year.
And if you can't increase mainly resulted from the large deals delivered this quarter to our strategic customers in the IFC and maritime markets.
Q1, 'twenty three revenues with the integrated solutions segment were $12 9 million compared to $13 $7 million in the same quarter last year.
Q1, 'twenty three revenue after the network infrastructure and services segment were $12 5 million compared to $12 9 million in the same quarter last year.
I would now like to summarize our first quarter, both GAAP and non-GAAP results.
Our GAAP gross margin in Q1 improved.
Improved to 42% compared to 32% in the same quarter last year the improvement in our gross margin was due to a particularly favorable product and services mix recognized this quarter and the higher level of revenue. Please be aware that revenue margins and profitability may fluctuate between quarters.
And as an outcome of the revenue volume and deal mix. He was recommended to analyze the profitability. According to the trailing four quarters and in light of the annual guidance. The gross margin in the trailing four quarters was 38, 6% compared to 33, 4% in the trailing four quarters that ended on March 31st.
2022.
GAAP operating expenses to 123 were $17 7 million daus in the quarter at a relatively similar level of those of the same quarter last year.
We've received our first payment of approximately $3 million for the first two arbitrations, one against <unk> and the Ministry of Communications in Peru in 2018, and in 2020 group for a total amount of approximately $29 million.
She has included only in the GAAP numbers and offset much of the increase in the operating expenses in the quarter.
GAAP operating income for the quarter improved to $7 million compared to an operating loss of $1 million.
Same quarter last year.
GAAP net income in the first quarter was $5 6 million or diluted earnings per share of <unk> 10 cents. This is compared to a GAAP net loss of $2 5 million.
Our loss per share of <unk> in the.
The same quarter last year.
Moving to the non-GAAP results, our non-GAAP gross margin in Q1, 'twenty three improved to 42% compared to 32% in the same quarter last year non-GAAP operating expenses in Q1, 'twenty three were $19 5 million compared with $16 7 million in the same quarter last year.
This was mainly due to an increase in R&D expenses to support our long term business growth.
non-GAAP operating income for the quarter improved to $5 3 million compared to an operating loss of zero point $3 million in the same quarter last year.
non-GAAP net income in the first quarter were $3 8 million or diluted earnings per share of 7%.
This is compared with a net loss of one eight.
$8 million or.
Loss per share of <unk> in the same quarter last year.
Adjusted EBITDA for the quarter was $8 4 million over three X improvement compared with an adjustment EBITDA of $2 5 million in the same quarter last year.
Moving to our balance sheet as of March 31, 2023, our total cash and cash equivalents, including restricted cash were $89 7 million compared to 87 1 million.
December 31, 2022, and compared to $75 1 million as of March 31st 2022, we do not hold any bets in terms of cash flow, we generated $6 2 million in operating activities during the first quarter of 2023.
Dsos, which exclude receivables and revenues for terrestrial network construction projects in Peru were 77 days higher than in previous quarters.
<unk>, which were 72 days the increase was impacted by a decrease in revenues, partially offset by a decrease in receivables due to higher collections in the quarter.
Our shareholders equity as of March 31, 23 totals about $250 million compared with $244 million.
At the end of December 'twenty two.
Looking ahead as I already mentioned, we have increased our GAAP operating income and EBITDA guidance for the year, our expectation remains for a strong 2023 with revenues of between $260 1 million $80 million representing year over year growth of 13% at the midpoint.
GAAP operating income of between $16 million to $20 million representing year over year growth of 81% at the midpoint.
And adjusted EBITDA between $31 million to $35 million, representing year over year growth of 31% at the midpoint.
That concludes my financial review.
Now I'd like to open the call and would be happy to take your questions operator.
Thank you ladies and gentlemen at this time, we will begin the question and answer session.
Have a question please press star one.
Wish to cancel your request please press star two.
Using speaker equipment timely with the handset before pressing the numbers questions will be called in the order. They are received please standby while we poll for your questions.
The first question is from Chris Quilty.
Quilty space. Please go ahead.
Thanks, guys great quarter here.
Wanted to follow up on that satellite networks.
Okay.
It's a real revenue strength.
And in that there were a couple of them.
Large programs.
F C.
Thanks.
Should we view that as sort of a one time lift there or do you feel good about sort of an upward trajectory.
Balance of the year.
Hi, Christy its Andy.
Indeed, though we said last time that we had a record year, both in ISP and cellular backhaul.
All of those in 2000, and 2022 and we are now seeing the outcome and in revenues.
We had also a very strong quarter.
Both <unk> and <unk>.
Yeah. So backwards during this quarter. So we will see continuing strong revenues from both cellular backhaul and IFC.
Doing well.
We also as an American I'm the revenues, but it is not as high yet it will take time to.
To be a significant.
Growth engine. In addition, we see a lot of visits.
The satellite operators.
<unk>.
And she is still in the V HTS satellites.
The related or not related to <unk>.
<unk> had a long background, so altogether drives the growth in revenues this quarter and the growth and profitability.
Great and.
One more launch.
Three D empower and she is expected to turn on service in Q3.
How does that impact you in <unk>.
<unk>.
Terminal sales are you seeing a hole you know now in advance of shipments or do you expect that to happen more in line with the service launch.
I think it's a combination first I know the SCS.
So I'd like the operator needs to be ready for service launch.
They need to deploy a lot of equipment, especially on.
The gateway.
Syed.
And most of them I guess, we'll see no 11 years.
Wanted to services is launch when do you win.
Start to deploy with customers.
And where are you with the gateway rollout on empower.
Drug listing.
There is two types of gateways regional weiland.
Local one so the regional ones are already deployed in the local ones. It depends on the business associates links. So we'll meet you in every country. So it's vary between eh.
That expectation for the new business over there.
Great.
I noticed that the inventories were up.
Little bit in Q1 was that a timing related issue or do you have a big orders going out in Q2.
I think it's a combination of all of the two.
First we are now seeing the increase.
We said in the last I think 18 months, but we are starting to.
And by.
By inventory.
24 months because of the lead time, so we are starting to see either until he coming to our warehouses.
Understood.
Roger that.
We bought inventory and we will see the revenues in the coming few quarters, you'll hear something to us.
Yes, I can say that in general our inventory management is based on the delay.
Every forecasts.
It also reflects.
Our actual growing growing business as it would be fit.
Part of the of the growth is due to the delegation of the supply chain issues that we've dealt with.
Great.
While I have you just a question on the Opex looks like.
Both R&D and SG&A went up pretty big on a percent basis year over year, but it's more flattish on a sequential basis is it fair to assume that this is a a better run rate through the balance of the year.
There are a lot of the opex.
And Oh.
Issues or whatnot, we should look for I think for in terms of the sales and marketing and G&A. It's a it shouldn't be give or take flattish towards this but we do expect R&D on a yearly basis due to grow we have a set of our land.
<unk> project that we need to deliver we are getting.
Good thing awards of additional projects that will require us to continuing and recruit a head count.
So I expect R&D to grow just because the restaurants, we have tens of open positions in R&D, both in Israel and worldwide.
Just to our accelerated development and be able to deliver what we promise to our customers.
And it's already factored leaving.
Guidance.
Great.
Final question, and I guess, a little bit.
Forward looking but when the data path acquisition closes.
Is it fair to assume that that all of those revenues will get folded into integrated solutions.
Hum.
Good questions, it's still under discussion here and we haven't decided yet.
How it will reflect it in the.
In the segments.
I guess once it will be close to the acquisition will we.
We will advise on that.
And then I guess, maybe to follow on that I mean, you already have the the wave screen business here in the U S. How well are there any opportunities for integrating the overhead facilities or anything between those two.
Silicon is going to be a bit challenging because it took two different location, but from Oh go ahead.
Perspective, no doubt that we will.
Try to optimize and sure relevant resources, we have no intention of.
Reducing our head.
Head count.
But mainly because of the fact that we are a very lean and mean and are they today are management we haven't.
We have increased our head count when everyone bid that we are doing it totally based on the relevant.
Relevant maintenance I think that there is a lot of synergies between our data paths and waste stream and data pattern in and satellite networks, and we will optimize on that I think that the most.
The synergy that we see on the top line, where we can drive.
Revenues into the defense market.
Gotcha I forgot one last important question.
Obviously, a big announcement around that.
IFC and.
Flat panel antenna contract.
If I recall you know a couple of years ago, you guys were.
Primarily looking at that product line.
We designed a certain point.
I've indicated that we really weren't going to make big investments and so you saw a direct customer opportunity.
Obviously that opportunities arise.
We're to assume that.
You'll have some incremental R&D to bring that product up to operational specs or is there something in already involved in there.
It's a combination of increasing.
R&D revenues and it's about.
About <unk>.
24 modest developed management certification cycle, and then the significant amount of units.
<unk> to be delivered every year, it's a it's a <unk>.
Very large potential for us and its opened the door philosophy will future investments in this.
And growing he saw a market segment.
Everything is already factored in.
In the guidance that we gave.
And remind me this is a ku or a K a.
He's a ku.
Great.
Thank you thank.
Thank you.
The next question is from Gunther Karger of Discovery Group. Please go ahead.
Yes.
And.
Again, congratulations on an excellent quarter.
And two questions question one.
Upcoming budget between the F C S and I'll cancel.
Does that will that have any material impact positive.
Positive or negative along to get along with the second question yes.
Well I didn't get science business globally.
He didn't make any comment on any specific new projects globally.
Ariel.
I got a nice to hear from you again.
So I think both Ses and Intelsat, our strategic customer for us.
It's such a major combined.
Combined company will be even significant larger estimates.
I think it's early to say.
What's such move will do to our business on the long term I think on the short in the medium term I don't expect any change in their purchasing decisions and we work closely with both of them.
The product is part of our it roadmap we have a lot of basketball good to deliver it and we have a lot of expectation from them.
Next few quarters he is.
In general we see.
This is a positive in many ways at the end, it's always easier to interact with the with one large customer.
But on the other and I think it's always a one customer at a pause as the additional risk.
So to make a long story short we consider this as a positive.
Effect on on the lot.
That's probably the second question about the large defense program.
And then also the old ones that we own.
Participating in the B.
Several of them are very large, but we cannot at.
At this point give more information on them I hope the tone will be we will be able to announce some some awards and then we will see where we are going to.
Thank you Audrey and with regard to their defense question.
I meant to include also the homeland security and disasters.
Coverage type type of programs any thing in that area.
So with disaster recovery, we do see a lot of business.
Especially in Asia.
We even announced a month ago and.
I'm like that.
Usually it's not a <unk>.
<unk> was one 7 million.
Millions daus.
We saw that thing back in the Philippines, and other countries and we are tracking those.
Ah projects some of them all of course theater to be cellular backhaul like a cellular on Williams and solutions like that.
Thank you and continued good luck. Thank you.
Yeah.
The next question is from a long life.
<unk>. Please go ahead.
Hi can you hear me Hello, how are you good. Thank you. Thank you.
And we have option to ask questions.
First of all about the guide I mean that 210.
Does it include any portion of that revenue. So it is not.
So why why.
Increasing and if not what would be the prospects for that assuming that they can see the deal is closed.
So in general.
The numbers I'll at least data bus.
Acquisition.
And.
Once the deal will close we will update our guidance, but I expect it all.
$60 million.
So now you can divide it anyway.
Quarterly so along that.
Good.
Good quarter.
Okay. Thank you and then about the gross margin yields jumped there I mean, you said that we should look at that very closely.
But maybe some acceleration or detailed explanation about what one other statistic.
I can contribute to the gross margin to the very larger increase in gross margin and to what extent it should support it.
Expansion going forward.
So.
As I said.
Before analyzing the lots on a quarterly basis.
Or may be problematic because of the fluctuation and the way that they recognize the recognized revenue.
In this quarter comparing to Q1 of last year most of the change was due to a favorable deal mix meaning.
Meaning deliveries of products with a higher gross margin and the these come mainly from.
From the IFC.
The IFC market, which has the higher gross margins than that and.
Good luck good luck average.
You know looking.
Looking forward, we do we do believe that over time, the gross margin the gross margins will grow.
With the growth of of volume and as.
As we discussed in the last Ah.
Cost.
Our new platform discourage for we have a higher software component and as if the.
Lloyd.
You'll see that are impacting our AR in our product mix and.
We believe that we can reach a steady gross margins in the area of 40% in the longer term.
In addition.
<unk> that.
In the business of of the rules.
As has been mentioned we got a.
Submission of the fifth project now we're on the sixth and last project construction and construction revenues are associated with lower gross margins.
These are well.
These revenues are expected to be in the next year and then we'll move only to the operations and with that that will push the gross margin average.
Higher as well.
What should we assume about the capital expenditure.
Once that is done.
So the rule.
Peru expenses are not are.
Our knocked back Capex.
Our capex level should be around.
Around the same level of last year.
I don't know I think it's important to understand that.
And I would say that the capex level of Gila, it's really depend on our projects, especially managed project managed service projects some of them are.
All in pivotal there we need to invest at the beginning and later I want to see our service revenues and this can create a lot of fluctuation in the in the Capex assumed today.
Run rate without a man itself if its between six to seven 8 million.
And then managed services it really depends on the projects. It can be few hundreds up to about $1 million, it's dependent on the projects and the potential for the project.
Okay.
About the tax.
Tax rate, which is within the <unk>.
A lot of large tax right.
Or is it is it.
Is it something that we should expect also going forward.
I think that the tax rate the tax rate, but first of all the taxes of the lotto comprised of many countries.
So so it has the impact of the world.
Tax regime, I think that in this quarter.
The tax rate is a.
Quite normal.
Last quarter, we had a one time tax expense.
Cause of releasing the truck.
Our earnings.
Israel, but looking at this quarter. This is this is quite normal.
Okay, so what kind of effective tax rate.
Cool.
David.
We should we should we should rely on this on.
This quarter's tax with them, we can assume looking forward.
Okay.
And last question I mean, you spoke about the Bayside Cherokee also spoke about.
And project that should be deployed with Alaska Airlines, maybe a bit of color to what extent there is another.
It wasn't that projects all right.
Different angles to the same to the same.
Okay.
So first of all the deals for the terminal is not always into the <unk>.
And just.
As many new customers as a green game they needed to usually increase there.
The ground equipment with us and buy.
Modems to be installed on the aircraft so.
So the deals that will drive more business for he loves but not related to the suburban.
Intercept buys.
From from other vendors their main vendor is simple.
Okay. Thank you very much.
Hello.
The next question is a follow up question from Gunther Karger of Discovery Group. Please go ahead.
Yes, Thank you for taking my.
Sure.
With regard to China now.
So any.
That's all I had regarding China and otherwise.
I have seen projects that have the.
High speed rail projects.
Now on the speed rail project.
No no I would say that this project is.
Yeah, the long time ago.
On the in flight connectivity, we are mainly cooperating with them.
The service providers, which has also deployment in China.
So if Intelsat will get an award from Chinese.
Airlines and we use our equipment.
We do have also a baseband just installed with was China.
So there are also some opportunities.
Local service providers.
Thank you Jorge and good luck.
Got it.
Okay.
Is there any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
There are no further questions at this time, if there being any would you like to make your concluding statement.
I want to thank you all for joining us on this call and for your time and attention. We hope to see you soon or speak to you in our next call. Thank you very much and have a great day.
Thank you. This concludes <unk> first quarter 2023 results conference call. Thank you for your participation you May go ahead and disconnect.
Okay.