Allot 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 welcome to our first quarter 2023 results Conference call. All participants are at present in a listen only mode. Following management's formal presentation instructions will be given for the question and answer session.
A reminder, this conference is being recorded.
You have all received by now the Companys press release, if you have not received it please contact <unk> investor relations team at.
D K global Investor Relations at one to one to 3788040 or view it in the news section of the company's website at Www Dot alert dotcom.
I would now like to hand over the call to Mr. Kenny Green of E K Global Investor Relations. Mr. Green's. Please go ahead.
Thank you operator, and welcome all to Allot first quarter 2023 conference call I would like to welcome all of you to this conference call I would like to dive a lot management for hosting this call.
From a cold today.
Eric <unk>, President and CEO .
<unk> CFO .
We'll provide an opening statements and summarize the key highlights of the quarter then open the call to the question answer session and both alright.
Billable to answer those questions.
You can hope on the financial highlights and metrics, including those that typically discussed on the conference call in today's earnings press release before we start I'd like to point out the Safe Harbor statement. This conference call contains projections or other forward looking statements regarding future events or the future performance of the company.
Statements are only predictions and allot cannot guarantee that they will in fact, a cup not does not assume any obligation to update that information.
Actual events or results may differ materially from those projected including as a result of the impact due to the COVID-19 pandemic changing market trends delays in the launch of services by customers reduced demand and the competitive nature of the security systems industry as well as other risks identified in the documents filed by the company with the Securities and.
Exchange Commission and with that I'd now like to hand, the call over to other than debit. Please go ahead.
Thank you Kenny.
Welcome all of you to our cost in school. Thank you for joining us today.
Our first quarter revenues were 21 $1 million, 34% lower than comparable revenues last year.
In March 2023 hour to cause a R. R was $93 million.
Slightly above our CCAR.
December 2022 and 50.
58% higher than our CCAR for March 2022.
At the beginning of 2023 was challenging for us.
The transition of the business since we've picked US recurring revenue model has proven to be slower than we originally anticipated.
In addition, our core DPI business experienced some headwinds.
While we don't expect those challenges to disappear in the near term given the tough economic backdrop, we continue to make progress with the aspects of the business that we can control.
I remain optimistic about our future.
On today's call I will discuss the challenges we are facing.
We see and why I am confident in the future.
Okay.
I will discuss in our previous earnings call, we remain committed to reaching profitability for the full year 2024.
While our Opex may fluctuate from quarter to quarter, because there are many factors that affect the total opex.
We intend to continue tightly controlling our expenses in order to reduce our loss in 2023, and we look forward to toward reaching profitability for the full year 2024.
Our opex in the first quarter was $42 $4 million.
A reduction of 19% compared to our opex in the fourth quarter of 2022.
All of which was due to one time items.
During the second quarter, we implemented another reduction of our workforce to further control our expenses.
And back to work, we will start seeing in the third quarter.
During the first quarter, our cash balance fell by $9 $1 million.
We experienced some delays in collections as a result of some of our customers implementing tighter cost controls.
I see this as a timing issue and I do not see a risk in these collections.
This cash burn is of course higher than we would like to Covid.
And we expect to lessen the cash burn during the third and fourth quarters of this year.
The cyclically.
Our cost cutting efforts come into effect together with a projected increase in revenues, we expect to reduce our operating loss.
Our cash flow.
Our gross margin in the first quarter was 67% due to lower revenues and our deal mix.
We continue to talk with the gross margin of 70% for 2024.
Now I would like to discuss our different product lines.
Okay.
I would like to start by discussing our traffic management and analytics business addressed by our allot secure the allot smart product line.
The main use cases, we see today and CSP continues to be a traffic management congestion management quality of user experience, especially for video.
Policy and charging control and digital enforcement.
As governments look to fight crime and terrorism, we see a growing interest globally and being able to block illegal activities, such as drug trafficking child pornography and terrorism we.
We have solutions that solutions that address these issues and we are seeing growing interest in our products.
Maybe CSP today are re looking at their network needs.
Developing countries, we see a growing number of opportunities where CSP are looking to replace end of life DPI products.
In developed countries, we are seeing some rethinking of network needs.
Please look at deploying new fiber <unk>.
Standalone quote unquote cores.
We continue to see multiple opportunities globally, where CSP is currently using our competitors products are considering a change.
We are working closely with quite a few steps CSP to win their trust and business.
Your next choice for DPI.
Most of these processes are through a competitive bidding process and some are potentially negotiated deals.
In addition, we are working on expanding deals like we previously won.
Specifically during the first quarter, we won a project to.
To install a DPI system for a new customer that did not have such a system before.
As we stated on the last earnings call, while we continue to see in our pipeline a similar combination of replacement opportunities and new deals and why we remain excited about these opportunities. We also recognize that we are facing several challenges with continues to make it more difficult for us to.
Provided secondly forecast.
First as discussed in previous earnings calls it is taking us longer to close DPI deal done in the past and the total number of DPI did for CSP is we are seeing is not growing.
I believe this has to do with the general economic environment and try to expense control by CSP.
Second in the enterprise market, we believe the growth. We saw the result of the Broadcom deal has peaked and we do not expect further growth in this market.
As we stated during our last earnings call, while we have a strong pipeline of large deals for the year. The dynamics I just discussed together with the potential lumpiness of large deals makes it challenging to predict the timing of revenue recognition for our DPI business and as a result, we do.
Not expect to see growth in our DPI segment for 2023.
However, we also do not believe that the contraction will be more than 5% to 10% in 2023.
Our receivables were reduced this quarter by 4 million.
Million.
In the previous earnings call I noted that we had some growth in our receivables from sales to resellers in Africa, and Latin America, who are late on their payments to us while we have not yet collected these amounts we reassessed the late payments and determined that the payments remain collectible.
I want to turn your attention now to what we see in our cyber security business and how the market is developing.
As I've said in previous calls a lot is transforming into a cyber security company and this is where we see most of our future growth coming from.
We are engaged worldwide with CSP that they're looking to provide their customers with network based.
<unk>.
As we look at the market, we see that the direction and momentum of operators interested in launching network based security services.
<unk> to be very positive.
We see that in many markets. The various operators provide services that are on par with respect to speed coverage and reliability.
As they look for differentiation.
Work based security is emerging as an important element.
Because it is a service native to the operator's network securities directly coupled to the access network et cetera.
There are several tier one operators, who have reached a conclusion that providing network based security to their customers is of significant importance to them and they are.
Discussing with us how to do so.
The largest side <unk> got the opportunity for a look with a tier one operator is the contract we signed with Verizon business, which we discussed previously.
Recently, we announced that we signed a deal with a tier one fixed broadband operator in Latin America to provide security services to their customers in.
In addition, we announced the PPA for group and Central and Eastern Europe is expanding its cooperation with us.
Following a successful service launch in Bulgaria.
Decided to expand and provide security services in four other European countries.
I believe these deals are a testament to the importance of CSP.
See in providing businesses and consumers with network based security services.
In addition, we are in contract negotiations with several other operators globally, where we were awarded deals but have not yet signed the contracts.
On top of that we are in serious discussions with additional operators, where an award has yet to be provided.
As we've discussed in previous calls I want to remind you that we changed our strategy for a lot secured business.
We are putting more emphasis on strategic accounts that can have a high revenue impact was in small to medium deals. We are looking for some customers assurance and setting mineral revenue thresholds.
While this approach might affect the number of deals we sign it will allow us to get to profitability sooner.
We remain excited about our <unk> opportunity as we have a differentiated and scalable solution for CSP.
Our Ccs revenues for the first quarter were $2 $3 million and the <unk> at the end of the third.
First quarter was $9 $3 million or so.
Second growth year over year.
As of March 31 to 2023, we have 27000 customers, but eight of them are capsules and discontinue mainly to our strategy to focus on large customers.
Unfortunately, only 14 have started to generate revenues and most of them are relatively small operators.
Most of them launched this service only to a portion of their subscriber base.
There are several more launches planned for this year.
As we have discussed previously our main challenge today in CCAR business is to translate the contracts we signed into revenues.
The first challenge is to launch this service.
This process involves many stakeholders on the CSP side.
Nicole operational marketing purchasing and more they all have multiple other tactical priorities.
Integration of our products with different internal IP systems is required.
Our major challenge we have is the marketing aggressiveness of the CSP when launching the <unk> service.
Aggressive go to market approaches can include among others.
We're actively offerings of servicing every customer interaction.
Bundling the security offering and the price plan for some or all of the customers et cetera.
The willingness of the CSP to commit to an aggressive go to market approach and the contract is to a degree an indication of how strategic this services to them.
These discussions sometimes take time and further delayed the launch but I think they are very important to our long term success as well as through the CSP success in this field.
I believe far Eastone in Taiwan.
One is a strong testimony to the value generated for the CSP view security as a strategic offering and the executive decision is to launch the service aggressively.
There are only three months from the service launch far Eastone reached nearly 200000 subscribers and service and the number is continuing to grow rapidly.
As we discussed in the previous earnings call and in line with what I discussed above we changed certain elements of our approach to the market.
We shifted our focus from quote unquote land grab for market share.
Number of CSP CSP to have significant revenue potential.
We are approaching the CSP partners novice customers.
Pushing very hard to have CSP as we engage with contractually committed to an aggressive go to market strategy.
CSP is a medium size they will not commit to an aggressive go to market approach.
CSP, regardless of their plan to go to market approach are offered commercial channels, where our revenues are not dependent on their marketing success.
We expect some of the CSP may agree to this and some may not.
I expect these changes will reduce the number of new CSP resign up however, it will allow us to focus our resources.
While the number of CSP that see more strategic value and the CCAR service, which should drive profitable revenue growth for allot.
I can look at the deals we signed in <unk>.
<unk> that are in the pipeline.
Convinced that the size of the market remains huge.
Disappointed with the current pace at which our revenues are materializing.
<unk> confident in our ability to achieve our long term goals.
Looking ahead I want to summarize our expectations for 2023.
As I stated, we remain committed to reaching profitability for the full year 2024. This.
This will be achieved through sub revenue growth mainly in C costs combined with tight expense control.
We continue to believe our net cash reduction in our operating loss for the year of 2023 will be between $15 million and $20 million.
We expect <unk> revenues for 2023 to be between $11 million and $13 million.
We expect to see tests are for December 2023 to be between $15 million and $20 million and our total <unk>, including support and maintenance to be between $56 million and $63 million.
We expect our total revenues for the full year of 2023 to be between $110 million and $120 million.
Regarding the second quarter, we expect the second quarter revenues to be approximately $25 million.
Given the Lumpiness of the DPI business that we mentioned earlier, we do expect notably higher quarterly revenues as we move into the second half of 2012 next week.
Okay.
Our strategy remains the same while we believe that our DPI business has limited growth potential. We think we can maintain a stable stable level of revenues through new use cases and market share gains. However, the lumpiness of the business makes it difficult to forecast over short time frames.
Our <unk> business is where we see are significant future growth.
While our <unk> revenues are being recognized later than we would have liked and later than we expected I remain convinced that the large potential of this business and I'm confident that it will grow significantly in the coming years.
I have full faith in our company, our team and our products and I believe the actions we are taking make these goals are achievable.
And now I would like to open the call for Q&A.
<unk> and myself will be available to take your questions operator.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. You will have a question. Please press star one.
If you wish to cancel your request. Please press star two if you.
We're using speaker equipment kind, we lift the handset before pressing the numbers.
<unk> will be pulled in the order. They are received please standby while we poll for your questions.
The first question is from.
Aric Martin Newsy of Lake Street. Please go ahead.
Congrats on the Q1 results I wanted to talk about the Q2 guide with regard to full year guide on the revenue side.
Look at it assuming we achieved the Q2 revenue guidance of $25 million.
Put you at 46 million extra first half, implying like you know an incremental $69 million for the back half to get to the midpoint of the guided revenue range, obviously that implies a pretty substantial step up could be looking at 34, and a half million dollars per quarter on average.
Q3, and Q4 and I understand there may be a <unk>.
Difference between the two quarters, but you'd be averaging $34 million to $35 million range. So.
Given that large step up I'm curious to know.
What do you see in the pipeline.
Supports got substantial step up.
Okay.
We have.
<unk> pipeline.
And our country will feel comfortable we will achieve those goals.
But the market there.
But they get all the people you could halt names and timing.
Okay, but you're feeling pretty confident that there's no I mean, it would imply there's a such.
Cancel.
<unk> of deals that are just.
Is that are there that are pretty close and that we're comfortable they are they're going across the finish line.
And in the back half.
This is our assumption.
Sign a new deal.
Yes.
On those deals.
We will recognize the revenue.
In the second half of the.
Some of them some of the revenue will come from Europe .
So we feel very comfortable that we will fund and some of them. Some of them will come from deals that were already starting to move and we expect to recognize in the second half.
Okay.
And then shifting over to the cash side of the house one of the tactical moves you've made or talked about banking.
On the fourth quarter call with a focus on sales efforts across just a handful of meaningful carriers to really go after the <unk> business I'd like to get an update on those handful of carriers do you feel like you are making progress here has there been evidenced the penetration at those targeted care.
<unk>.
And you know, let's say.
I think the answer is yes, we have made progress.
At least in.
At least early in the planning stages, I would say because evidently from the numbers you see it's not it's not get reflected in the.
Berke.
I think that the.
Basic understanding that okay. There is no point in.
Launching some things out.
More on.
Not aggressive and so I think that.
That's very clear.
And I think that we are seeing that.
Is that the operators who are cool.
Hum.
Core sector.
Security is a strategic value.
Show show show that not only short sorry first of all decided on it and then when they are growing implement at least those have gone well. So far showed significant growth in the example, I gave is far eastone from Taiwan.
I can tell you that.
That they view network based security.
The key element for them as an operator, they think it's a differentiator and I think it's very important that from the executive level.
Therefore at the executive level down and we're seeing that.
Very fast growth rate, but there is out there what they are.
Experiences.
Okay.
I understand last question for me it comes to the Opex.
Operating expenses of 22 4 million in Q1.
You said you reduced your expense.
What can we look for.
Either on an annualized basis or if you want to get the operating expense maybe not in Q2.
Q3, what should that $22 4 million look like in Q3.
So Paula.
Uh huh.
We had some onetime items in Q1.
Hello.
Probably in Q2, the number would be.
I think a little bit higher but.
Q3, we will have the effect of the.
Yeah.
The measures we took already.
And then it will go down again.
Without media.
It depends what will be there also of the revenue all of them.
Not only would it be that momentum.
As we said over and over.
We are committed.
Previously faster than Opex platform that would enable us.
Welcome.
In 2012.
I'm sorry can you restate that you said there were one time items in Q1 I assume those were.
Expense items that would not recur, but you said Q2 operating expense will be higher or lower than in Q1.
I guess Q2 opex might be.
Hi, Adam.
But Q3 will be to go well.
Got it.
For taking my questions.
Yes.
The next question is from Matt how Chuck <unk> of Northland Capital markets. Please go ahead.
Thank you on the DPI market.
You talked about how you believe it.
Stabilize and be flattish are you talking about calendar 'twenty, two levels or calendar 'twenty three levels.
Okay.
Okay.
23, <unk>, which as you might even expect to control some contraction of five 7%.
But I would say on the multiyear level I think we should look at it as flattish.
Probably calendar 'twenty two.
Yeah, I would say that I would think so.
Okay.
And then on the <unk> as they are or why was that effectively flat Q over Q.
Hmm.
At the end with blended rent too.
They are at the level of cost of revenues.
The blended.
Do you know what is the penetration with our customers how much of it would go up.
A lot of what happened to the exchange rate and we're starting to get.
Different things different.
So say currencies and.
There was also an effect, which I think will.
We will create.
We'll make the gross loss, which is that growth.
We're signing up customers today, and we've talked about Coca Cola sign up customers with the minimum.
With a minimum recurring revenue to us so when a customer like that launches.
We see an immediate jump would be hard because you have to pay a minimum fleet, but then the customer base.
Which starts at zero, obviously, we're in the launch.
<unk> growing on you have to you are from that customer does not grow because depending on minimum fleet and it will start growing again only once they cross dock minimum thresholds. So.
We can and I would expect to see sometimes like jumped from here and then a big flattening and then again jobs and so on.
What was the impact of that somebody can't they are on a Q on Q basis.
Not sure.
Could you repeat the question I'm not sure I understood it.
How much of a hydraulic was FX.
Currency on a Q over Q basis for seeking out they are.
Okay.
Do you want.
A very small number.
You can.
Okay.
Are you seeing elevated levels of churn within your customer base.
Within the customers' customers.
Yeah.
I don't think yes first of all let's understand what we know what we see in good measure.
Mobile operators as Russell fixed operators with mobile operators.
Relatively high churn rates.
The customer base in respect to have nothing to do with security, but relatively high churn rates as customers move from one mobile operator to another.
What we don't know.
Asia Pacific customer has churned off our network or not look we've always the total number of.
At the end of every month are there cases, where customers are.
Where that numbers are reduced for support security services, yes, there are but I think the vast majority will continue to grow.
Okay.
And then coming back just DPI business can you explain the broadcom dynamic.
But more detail here.
Sure.
Yeah.
So.
And we remind them.
Speaking or reminding things that we've talked about previous calls.
We signed the agreement.
With Broadcom and.
23 years ago three years ago.
It's lumpy.
The essence was Broadcom has acquired.
Company.
And what's the Mantech can be.
Through a series of acquisition at Broadcom and ended up with a product line.
Pockets here.
Was a competitor of a lot in the enterprise business from Broadcom and ended up with a series of acquisitions.
In Brazil, we signed with Broadcom, Brooklyn wanted out of that business.
Not synergetic pointing to two strategic to them on the deal and what they wanted was the continuity for their customer base not to basically squeezed their customers. So the deal we signed with them is that they will differ.
The value added resellers distributors distributors and end customers they will tell them, okay, but they broadcom or discontinue in the pocket.
Flying and if somebody wants a replacement or a or continue.
Continue with a similar service here's the recommendation and work with the law.
Contracts to lock in the local will provide you a good product that reflects the fact that tier one.
So we had a nice bump in sales.
During a couple of years where that.
Where we had new vars join us.
Sure.
Our distribution chain Vars and resellers we had.
A bunch of customers quite a lot actually.
Replacing.
End of life packet tiered product with <unk>.
Both products, but they.
There's only so much it so its sort of there are only so many customers who can replace and then they become our customers. When we can serve them, but we're not selling them new equipment and that's why we saw a nice growth in the enterprise sale and now that has quieted down and I think that the.
That's reached more or less its peak.
And what was the contribution on an annualized basis at peak levels.
Okay.
I'm not sure I am not sure I have the number off the top of my head.
Uh huh.
Hmm.
That's probably around I don't know.
I would estimate that around $5 $7 million from from the Broadcom deal on an annual basis something like that.
Got it okay very good.
Thank you for taking my questions.
The next question is from Marc Silk with Silk investment advisors. Please go ahead.
Thank you for taking my questions I want to start let's drill down on the future of the allot smart product.
Smart connect product lines. So in the past you've mentioned that the <unk> are basically examining reexamining the composition of their network moving to five G nature place end of life products.
Traffic and congestion management quality of user experience governments working to fight crime and terrorism and blocking illegal activities.
Granted because of the slowing economy appears like it is a slow growing business for now but in a few years because this business surprise on the upside based on all the solutions discussed in the past.
And.
It's made.
And third where I think they are in DPI theres definitely.
Whole concept.
Ill.
Monitoring and managing traffic intelligently on the network based on one application to do what is it doing what what our user requirements. How do you handle congestion so and I think there is tremendous value in that for the operators.
So.
It may very well some.
Sometime in the future it may very well grow up yet, but right now as we looked at this year, we're looking at next year.
So what I see that so that's the guidance that we gave.
Okay. So having said that what did you say that this business is worth more or less than it was five years ago.
Assuming again that three to five years from now there could be some some some some future growth.
Yeah, you know it's.
The value of the business.
It is a somewhat subjective term it may be worth it.
Depends on what you believe.
And what will be how much you will look at the short term.
What the market valuations are other than the quoting is the current stock price I don't know how glass through your question.
Alright, because I guess the point I'm, making is you know five years ago. One of your competitors stop one out of 202, and a half 2.8 times shales, which should get what you'd be like based on your bedroom seven or plus dollars a share and it's just there's a disconnect between the pieces of your business and what the and the fact that you're selling at half time sales.
Minus the cash so.
I just think that it's frustrating as again, whether it's the perception that maybe you haven't hit your numbers or what but it's just it's frustrating that there's a business. There that's worth a hell of a lot more than your stock is trading for them. So that was kind of my point on that so I'm moving on.
The recently the recent announcements in March 9th Taiwan.
Stan.
It reached about 200000 subscribers in three months is there any of that revenue.
Is that did that revenue starting in the second quarter or the first.
No we always saw that.
Revenue in the.
First quarter, we saw some onshore.
Okay.
Do you can you utilize this where other you can tell this to your other customers, how what they've done and how quickly they've been able to ramp up.
That's been a benefit to you.
Yes.
And that's the that was the main rationale behind that issue in the press release.
You're able to share with other customers and show them look this is what this is what they're doing with Lasalle quicker.
Of the customers on what.
What.
<unk>.
And far Eastone did in order to achieve such results.
Yeah, I'm happy to say that far Eastone was willing for us to share. This information with other customers not not blending operators are willing to let us share specific numbers.
And detailed information because they're worried about their own competition.
He has done in this case they start.
With our press release in Taiwan and China.
Savings all definitely allowed us simply to promotional activity.
The rest of the world.
Okay. That's great. So can you give us color on the fact that you bought it took care of our customers and what is your reaction again.
As part of the picture right it's not.
It's not a standalone and I'll tell you we heard this does not change their mind.
See that far Eastone.
This includes the successful.
They see that.
Verizon has decided to launch this service to our users.
Some of these customers.
It's the culmination of this I think is what is bringing up.
Those new deals.
And what is enabling us to have.
I would say significant backing and proof.
<unk> points, when we come and discuss with various operators. The go to market and tell them why we believe that they should be committing to a certain to a stronger go to market not just because we liked it because it really works.
Uh huh.
It's not a one for one equation, but I think it's a it's a significant piece of the proof points that we assemble we have we have in the law.
And I think I've talked about this.
Yes, Paul we haven't a lot within our marketing team, we've set up a group we call them.
At CBS , our customer customer value managers.
But what they do is they assemble the information that we have from all the various customers on what their go to market.
Thats what were the what are the rates of growth etcetera, etcetera, etcetera, and then they work.
With specific customers that they are assigned to a group of people. Each one has a specific customer base that they work with and they work with their marketing departments to show them, how they can get better and in many cases, we're able to influence not in all but in many cases, we're able to encode the marketing teams of other operators don't show them.
Here's what other operators have done therefore, if you will do it will be more successful on whether were successful in converting them. They actually implemented now most of the times and collection of Anonymised when it takes like far Eastone.
Good.
Okay, that's great and so add on to another positive is you know Verizon and so I would I would think that that brings you more credibility than you've ever had them based on their due diligence basically who they want to they are how has that impacted your potential future business and then also why calix.
Dollar ones from that deal.
So unfortunately I cannot reveal what the horizon launch plans off with the service because they consider that a confidential information from that perspective.
Okay.
How does this affect our future business. It is I think I agree with you that this is a this is a very very strong.
Yeah, I would say.
That's not only testing that its more than that.
I've talked through what we've talked to several customers.
Once we saw what Verizon is doing their level of interest.
Went up significantly.
The horizon doing it must be the smart thing so let's take a much much closer look at it. So I think that's a very good positive.
That is exciting alright, so on May 11th you announced the deal with the tier one fixed broadband provider in Latin America, congratulations on that so.
I know you're going to have a bigger customers, but also it's just a combination of also going to customers that are going to show a let's just say the desire to get this to market sooner or this is.
Or that's not necessarily the case not necessarily the case.
Yeah.
I would say that in Latin America South.
Sometimes take longer than the rest of the world. So I'm.
I'm not sure what they will take this to market sooner I think they're working on it we'll take it to market I believe we were quick to market.
So it's a very large opportunity for us, but not really building on it for the short term.
Okay and my last question is she said.
So there's that there's 19, she cast deals 14 of generating revenue off small, but definitely add out there since 2002.
There's been eight announcements of tier one some of these are in small business says I'm not going to go through all the press releases. So did some of these just never materialize.
Again those are those have not launched and are not producing revenue, we don't count on that.
It was one still has the ability to.
So her lunch.
We did say that we have some deals.
Is that we sign even some that we announced that we signed and then we'd either canceled because they were not they were not going to launch that we're not committed it didn't make sense to continue to pursue them.
But I understand the.
The number of about one times in 2007.
Uh huh.
Customer demand.
Hey.
Although this continuum.
And out of the 19 D&B pulp meeting.
We started to generate revenue.
The settlement.
I don't know.
Installed.
Okay, well good luck and thank you for taking my questions. Thank.
Thank you.
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, Mr. Tabby would you like to make your concluding statement.
Sure.
I want to thank you all for joining us today I want to thank you for your interest and your long term support them a lot.
And I look forward to talking to you on our next quarterly call. Thank you very much.
Thank you.
Include the I loan first quarter 2023 results conference call. Thank you for your participation you May go ahead and disconnect.
Okay.
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