Q2 2023 Axcelis Technologies Inc Earnings Call
Okay.
Good day, ladies and gentlemen, and welcome to the excellent technologies call to discuss the company's results for the second quarter. My name is Shannon Mcquaid and I'll be your coordinator for today.
At this time, all participants are in listen only mode.
We'll be facilitating a question and answer session towards the end of this conference.
If at any time during the call you require assistance. Please press star followed by zero and a coordinator will be happy to assist you.
I would now like to turn the presentation over to your host for todays call, Doug Lawson Executive Vice President of corporate marketing and strategy.
Christine.
Yeah.
Okay.
Thank you operator, this is Doug Lawson executive Vice President of corporate marketing and strategy and with me today is Russell <unk>, President and CEO , and Kevin <unk> Executive Vice President and CFO .
If you've not seen a copy of our press release issued yesterday. It is available on our website.
Playback service will also be available on our website as described in our press release.
Please note that comments made today about our expectations for future revenues profits and other results are forward looking statements under the SEC's Safe Harbor provisions.
These forward looking statements are based on management's current expectations and are subject to the risks inherent in our business.
These risks are described in detail in our Form 10-K annual report and other SEC filings, which we urge you to review.
Our actual results may differ materially from our current expectations, we do not assume any obligation to update these forward looking statements.
Now I'll turn the call over to President and CEO Russell well.
Good morning, and thank you for joining us for our second quarter 2023 earnings call demands. The Purion product family continues to be extremely strong, especially in the high growth Silicon carbide power segment.
Revenue for the second quarter was $274 million with earnings per share of $1.86.
Backlog remained high at $1.2 billion.
Quarterly bookings of $193 million also driven by Purion demand and strengthen the power markets.
The third quarter of 2023, we expect revenue of approximately $280 million gross margin of roughly 44% operating profit of around $64 million and earnings per share of approximately $1.72. We are.
Raising our forecast in 2023 revenue by $70 million to greater than $1 1 billion.
This represents year over year revenue growth of approximately 20% in a year in which overall WSI is expected to decrease by 20% 30%.
I believe it is possible to achieve $1 $3 billion in revenue in the next one or two years, depending on market conditions.
The mature process technology market continues to be an area of strength for <unk> with 93% of second quarter, our system shipments going to mature foundry logic customers and 7% to memory customers composed entirely of DRAM.
Geographic mix of our systems shipments in the second quarter was China, 56% the U S, 13% Korea, 10%, Europe , 9%, Taiwan, 2%, Japan tube.
And the rest of the world 8%.
As has been the case since the beginning of this downturn that part of our segment and in particular Silicon carbide continues to drive that growth.
We're actively engaged with customers in this high growth market segments, winning business from new customers and expanding our footprint at existing customers. We now expect approximately 60% of our ship system revenue in 2023 to come from this segment with around 35% of total ship sit.
Some revenue coming from Silicon carbide applications.
We're seeing increased adoption of Purion, H 200, silicon carbide, and Purion XE Silicon carbide systems, and now have three Purion H 200, silicon carbide evaluations underway with customers in multiple geographies. Two of these systems are 150 millimeter I wanted to 200 millimeter systems.
This evaluation units give our customers a headstart quantifying productivity limiting risk as they ramp to high volumes.
It also enables the customer to conduct optimization work on the devices utilizing the higher LNG dose capabilities, a purion H 200 silicon carbide.
In 2023, we expect revenue from silicon carbide customers to be spread relatively evenly across the pure empowered series product family.
This is the only Unimplanted <unk> company that can deliver complete recipe coverage for all power device applications.
We're considered to be the technology leader and the supplier of choice, providing the best product family of manufacturing capabilities.
This means that using <unk> tools provides the lowest risk path to high volume manufacturing required support aggressive ramp plans.
So lets places significant value on enabling our customers to succeed in this exciting market by providing differentiated product performance at a high level of customer satisfaction.
As the industry downturn continues we now estimate that memory will account for less than 10% of our ships systems revenue.
Weighted towards DRAM, we expect the PC market will lead to industry out of this downturn began in the second half of 2024 with 2025, returning to a healthy level of growth in consumer electronics advanced logic and memory.
While our memory and advanced logic customers are experiencing this downturn <unk> remains close to the supporting the installed base of working with them on that future technology and manufacturing needs is during downturns. There was an increased ability to collaborate with our customers to expand opportunities for <unk> during the next up.
We have multiple evaluation systems in these markets and many customer engagements designed to increase our footprint in these segments.
As the industry exits this downturn.
Return to healthy growth in these markets. This combined with continued strength in the power segment will drive <unk> of $1 $3 billion model and beyond.
Now I'd like to turn it over to Kevin.
Thank you Russell and good morning.
We are pleased with our second quarter 2023 financial results.
We are excited about full year revenue, which is now expected to exceed $1 1 billion and represents year over year growth of approximately 20%.
Looking at our second quarter.
Revenue and earnings per share finished well above guidance due to solid execution and continued strong demand for purion.
Q2 revenue was $274 million with system revenue at $215 2 million and <unk> at $58 8 million.
Q2 earnings per share of $1 86.
Significantly above guidance due to higher than expected revenues gross margin and favorable spending.
We also benefited from much lower effective tax rate this quarter, driven by tax deductions associated with stock compensation.
Strong bookings in quoting activity for systems in the power segment continued in the quarter.
Which supports our expectation that approximately 60% of systems revenue ship will come from this market in 2023.
<unk> revenue will fluctuate quarter to quarter, but shipping model at approximately $248 million for 2023 and.
And $300 million for a $1 $3 billion revenue model.
Q2 gross margin finished at 43, 7% and 170 basis points above guidance.
Driven by lower costs, and deferrals and a slightly improved mix.
We expect Q3 gross margin to come in higher at approximately 44%.
Forecast further gross margin improvements in Q4.
Key functions across the business remain laser focused on margin improvement.
There are numerous initiatives underway to lower the cost of goods and.
And drive higher sales of Purion product extensions.
Which allows us to model gross margin at approximately 45% and a $1 $3 billion revenue model.
Turning to operating expenses the.
The second quarter ended at 24% of revenue and better than our guidance.
We expect opex in the third quarter to be approximately 21%.
As always we will continue to tightly control spending while.
And investing in areas of the business that support business growth solidify our technology advantage in the specialty markets.
And increases our footprint in the memory and advanced logic markets.
Additionally, we will continue to invest in our employees and infrastructure required to achieve our financial models.
One example of infrastructure investment is our new state of the Art Logistics Center in Beverly Mass located just a short walk from our headquarters.
The facility will open this month and is expected to be fully operational during Q4.
We also plan to further ramp our Beverly and Korean operations as capacity needs grow.
And are comfortable that we have initiatives in place.
Part of our $1 $3 billion revenue model.
We ended Q2 with $452 $9 million of cash cash equivalents and short term investments and generated $32 $7 million of cash from operations.
Cash in a quarter was impacted by higher inventory.
Wired to support the expected increase in second half revenue.
In the quarter, we repurchased $12 5 million of stock and have returned over $157 million in cash to shareholders since 2019 through our share repurchase programs.
<unk> is a rare opportunity to grow revenue and profitability turning significant industry downturn.
This is a result of strong product positioning and a power device market and continued strong execution in a challenging environment.
We also look forward to continued growth in memory and advanced logic as the overall semiconductor market recovers.
Once again I want to thank the entire <unk> team for their continuing outstanding performance.
Also want to thank our supply chain partners for their hard work supporting <unk>.
And our customers for their confidence in our ability to deliver.
I will now turn the call back to Russell for his closing comments.
Thank you Kevin.
So, let's expect to achieve revenue quite a $1 $1 billion in 2020 $313 billion over the next one or two years. This growth is achievable choose the following factors first the implant Tam has more than doubled in the last few years and is expected to grow between 10% 15% annually.
With mature market segments, representing greater than 60% of the total Tam.
Second how devices and image sensors are highly implant intensity the general mature nodes have increasing implant intensity, peaking at 28 nanometers.
Third high value Purion product extensions will be designed to optimize power and image sensor device manufacturing, making XL is the only company with a product line capable of covering all implant recipes in these key markets is uniquely positioned <unk> to benefit from high growth in the mature process technology markets.
Finally, <unk> has strong long term customer relationships and a fundamental cultural desire to win by making our customers successful.
I want to thank our employees suppliers customers and investors for your continued support.
With that I'd like to open up for questions.
Thank you, ladies and gentlemen, if you wish to ask a question. Please press star followed by one one on your telephone.
If your question has been answered or you wish to withdraw your question. Please press the pound key.
Please standby, while we compile the Q&A roster.
Our first question comes from Craig Ellis from B.
<unk> Securities. Please proceed with your question.
Hi, This is Ethan <unk>, calling in for Craig Allen, Thanks for taking my questions and congrats on the quarter.
So the surge in margins was a nice surprise does this impact your confidence in hitting 44, 5% by fourth quarter and 44% overall for the quarter.
Thank you.
Yeah. This is Kevin.
It was a nice surprise in Q2.
Part of it came from better cost as well as a little bit better mix and some of the deferrals I.
I think on the last call, we had talked about the second half becoming much stronger than our first half to get towards that full year target of about 44%.
We're on that.
Probably a little bit of strength in Q2 took away from Q3, a little bit, but we still think Q3 is up from Q3.
Or up from Q2 and then.
In Q4, I expect to see further improvement off of that that Q3 number of approximately 44%. So yes. So we're still.
We are still anticipating being in that 44% range for the full year.
Okay. Thank you and then.
Are you seeing signs that the.
High bandwidth memory strength.
Okay.
Perfect.
Micron are driving higher Purion dragon meant.
Yes.
Yes, Hey, Ethan this is Doug so.
You broke up a little bit, but I think you were asking about the high bandwidth memory. So.
For for implant.
Implant content is similar.
For any of the DRAM, whether it's HBM or other types. So what we see as far as sort of the goodness of the HBM ramp as it starts to utilize bring up the capacity utilization of the memory Fabs.
That's the first step in getting back to a good capex cycle.
Let me see.
PC refresh cycle kicking in as we said some time next year.
That will really start to drive memory capex spending towards the second half of next year and create a healthy 2025.
Got it thank you.
Yeah.
Thank you please standby.
Our next question comes from John Doerr Shimer from William Blair. Please proceed with your question.
Hi, Thanks for taking my question and Russell strong strong one out of the gate. So congratulations on the quarter I.
Yes.
First question just around your thought process.
In terms of the guide and.
It's.
Demand is causing.
The pull in if you will I'm just wondering what's your greatest areas of concern that would limit your ability to kind of take up that two to three year type.
Target specifically.
How are you monitoring the health.
In the channels.
With respect to.
Globally, but specific to China that we don't see a return to a healthy.
Healthy used market, which seems to be pretty lean right now and then I have a follow up.
Okay. Jeff This is Doug So I think right now.
Our guidance R. R.
Optimism in terms of raising the full year to $1 1 billion in pulling in the $1 three.
Model to one or two years from now.
The strength is in the power market for us, that's where we're seeing the biggest drivers.
We are beginning as I was saying to even on the last question I think we're starting to see the memory guys start to increase their utilization as a result of some of the strength in the in the AI.
Activity.
The PC refresh cycle is going to be key there. So we're monitoring that.
And then consumer electronics or are probably the next big driver in terms of the mature.
<unk> as a whole for mature foundry logic type of products.
We're watching that and expect that to be at 24.
And so so that's what gives us the confidence to pull that $1 $3 billion model and but this year the $1 $1 billion model.
Very heavily being driven by the strength in empower and especially in silicon carbide.
Great and then just as a follow up on Silicon carbide specifically.
Major announcements by Infineon in terms of the 6 billion.
<unk> <unk>.
Investment and cool them in.
I guess my question for you.
Is.
Trenches, obviously more capital intensive than publicly they have noted the 200 millimeter and.
So my question around your.
Silicon carbide offering.
Our offerings.
That.
Does 150 offer a is it a different tooling or what changes within your tool in terms of.
Field Upgradable.
Versus two hundreds.
And.
I'm, assuming none of that we.
We haven't seen the Malaysia.
<unk> spend so.
I guess, just $1 50 versus 200 would be helpful. Thanks.
Hi, Jed its Russell.
So 150 <unk> to them. So we still have the complete purion platform for power series. The <unk>. So it can come up but the <unk> silicon carbide NIS, 202nd carbide, all available $1 50 and 200.
And essentially is filled upgradable kit that allows you to go between $1 50, and 200. So it's essentially the same machine, but obviously the wafer handling the scanning needs to be modified slightly for the largest substrate. Unlike I say, that's an upgradable field Upgradable kit.
Great. Thank you.
Thank you please standby.
Our next question comes from Tom <unk> from D. A Davidson. Please proceed with your question.
Yes, good morning, and thank you for the questions.
Maybe a couple more on the silicon carbide side, so with some of the recent ebbs and flows in the EV and markets have you seen any changes or any modifications to the new fab construction plans that are expected over the next couple of years.
Yes, thanks for the question Tom.
No actually.
It continues to accelerate.
At this point.
Silicon carbide is still supply constrained and so.
So there's quite a bit of activity.
And one of the things we often note when we talk to U S. Investors is is there's a little bit of a.
Not being mean here, but a little bit of a parochial view of the EV market globally. The EV market is growing quite rapidly.
So.
So I think that's that's driving the silicon carbide investment and we expect that to continue we are seeing no signs of that changing.
Okay, great. Thanks, Doug and then also.
I guess when you're thinking about the end product does it matter to you. If the companies are creating discrete or modules is there a difference in the island plant.
Well.
Yes.
We are only involved in the discrete in the in the Silicon carbide wafer fab side of things. So after after the package that then they would put it in the module there is no impact.
And the module manufacturing.
Our manufacturing team when I say done our manufacturing team continues to use kaizen process to drive improvement and there are a number of kind of that but again in terms of.
More buildings beats.
Between the Korea operation that Beverly site, and this new logistics Center.
We.
I am very comfortable with our capacity to hit the 1.3 and potentially beyond that.
And we've got very good supply chain partners to them.
Worst case, if we need to put some contract manufacturing capacity in place.
On the road that's another option so.
Well I can assure that I feel very good about where we're at at this point.
Great well. Thank you all for your time today, yeah. Thanks, Paul.
Yeah.
Thank you al.
Our next question comes from Nicholas Dwell from Needham. Please proceed with your question.
Hey, guys, Nick Doyle on for Quinn Bolton, Thanks for taking my questions.
It looks like book to Bill was slightly below one for the first time in a couple of quarters is this an anomaly or a function of the extended system backlog.
And then also what are you seeing on the bookings front looking into the second half how far out are bookings being placed.
Hi, Nicholas this is Kevin.
Let me answer that.
So I'll start off by saying I mean, we're going to see book to Bill fluctuate a little bit I think until there's really a much broader based industry recovery.
And we were down a little bit on bookings.
Bookings this quarter to 193 million compared to last quarter, which was about $100 million higher.
If you go back to the prior quarter was down probably $100 million from the last quarter. So it's been kind of up and down but I think the real key here is we have a very strong backlog.
One 2 billion is a very large backlog for the company.
And in terms of bookings and backlog both I mean, we were taken orders out into 2025 right now it doesn't mean that all of our capacity is necessarily sold in 'twenty, four, but we're pretty full but where.
We're going out into 2025 so.
I don't I'm not worried about this book to Bill because I think a couple of quarters ago. We were we were under one and we popped back up and under one and again with such a strong backlog.
Systems' backlog, if you consider we have a $250 million of CSI business sitting on top of that I mean.
There's more enough revenue that get you quite a bit down the road without ever booking another tool so.
So again I think we'll see it bounce around a little bit until there is this broader based industry recovery.
Power segment is very strong still I think we now believe that 60% of.
The year's bookings to come from power I think on the last call. We might have said it was 55%. So we're seeing additional strength comes repower right now.
So.
That's correct.
Nick Let me just let me just add one more one more comment the other the other indicators. We watch is the quote activity and our quote activity remains very high.
It's it's exceptionally good in the silicon carbide side.
And these guys are planning factories out over the next couple of years. So it's a.
That's another good indicator in terms of continued strength.
Yeah.
Great and for my follow up and you kind of have you touch on these points in the call, but more directly what is the company's expectation for them for a memory recovery in 2024, it sounds like you're thinking.
Second half driven by Pcs, maybe you can touch on what Youre seeing in terms of the PC strength coming back where youre seeing that and can the company hit the $1 3 billion model without the recovery in the memory market.
Hey, Nick its Russell Thanks for the question so regarding what we've seen with with memory. So naturally we stay very close to our memory customers. We've historically been very strong in the memory market and once the.
The market starts to recover expect we're expecting to see a lot of benefit from that.
A lot of people looking for green shoots.
I think at the moment.
We talk to our customers I'm thinking the second half of 'twenty four.
A pretty strong year in 2025 as far as memory goes.
Kind of what we're seeing.
Just a question regarding our path to $1 $3 billion. So I think we've previously said that we'd be looking for consumer spending recovery in order to propel us to the $1 3 billion and that would be able to see a recovery in memory and some of the other mature processes like image sensors.
Think we are seeing strength in our power business beyond what we expected, but I think with that strengthen the power plus a recovery in the consumer spending we see us getting getting to $1 3 billion slightly say in the next one or two years I think the bottom line on it Nick.
Nick is that there is multiple paths to that $1 $3 billion model. So that's why.
In.
In the call, we said depending on market conditions, and so it really depends a lot on.
A bunch of different combinations.
Great. Thanks.
Thank you goodbye.
Our next question comes from David Duley from Steelhead Securities. Please proceed with your question.
Good morning, Thanks for taking my question a couple.
I was just wondering have you seen recent adoption of silicon carbide in other markets. Besides the electric vehicle market.
And which markets would you expect to be early adopters outside of EDI.
Hey, David Thanks for the question.
So yes, I mean, if you look at our our customers.
And our websites their press releases and so forth.
There they are talking quite a bit about applications in in energy and industrial applications.
The same with Silicon carbide is.
A tremendous benefit to automotive because of the savings.
Can provide in a module weight and heat generation and so forth as well as the performance of the devices, it's a little more costly, but as volumes increase that cost comes down and that opens it up to other markets, especially the energy and industrial markets, where the the weight and the heat aren't as important.
But the performance would be nice to get.
And so we expect that that will be another piece.
The presentation, we show that there is a good growth area above evs.
Associated with Silicon carbide. So so yes, we definitely are are hearing that from our customers for us we don't see it necessarily directly because our customers would build the same devices using using our purion H purion.
Purion XE and Purion M silicon carbide tools, whether it's going into an EV or into an energy or industrial applications.
Okay and then.
As far as lead times go could you just help us understand where lead times are currently in I.
I guess, you mentioned, you're taking orders for 2025, how much manufacturing capacity do you have for 2024 or maybe another way to ask it is what is the current quarterly capacity.
Hey, David It's Kevin, Yes, so I mean I.
I think that as I said, a little bit earlier, but.
There is plenty of capacity right now for the order rate that we're seeing and shipments that are required.
<unk>.
Once this new logistics center comes online that's going to help in.
We also have as I mentioned, there's additional manufacturing guys ends that are ongoing right now as part of our as part of our normal process, where a little bit more heavy with them right now.
<unk> centre is getting.
Filled up with material.
So.
Yes, we've got lead times.
We are booking orders into 2025, our lead times are much shorter than that.
In the past what I would say is that we've always said that.
<unk>.
With the shift from cell process.
Assume a material is on hand, we can we can turn tools within the quarter, if we need to.
And we have that is the other piece of things supply chain.
So I'll give a quick update on that I mean, our supply chain is.
Continue to improve.
I think.
You don't hear about a lot right now within our peer group, because we're still ramping and I think a lot of our peer group is has not been ramping so.
I'm not going to say things are perfect with supply chain, but our suppliers are keeping up with us and are allowing us to ramp and we're adding more capacity.
Almost daily with our supply chain so.
Our lead times are not a problem I should say with customers right now I think for the most part.
That's not preventing us from getting orders and frankly, I think our lead times probably still.
Fully coming at us so lots of things that have been done over the last couple of years to add capacity.
We're really we're really almost all of that big bump in the US has come down on hiring people.
And bringing up additional off shift capacity, we run we run second and third shifts.
They are nowhere near as fully utilized as first shifts.
No.
We can hire.
The hiring process has been.
It's been going okay for us.
The market was really tougher while iron.
<unk> gotten a little bit better.
Certainly that Korea facility in Korea, when we brought that online action.
Actually we were able to hire for capacity very quick so.
So again I think the end of the day, our lead times are.
Assuming we can get it for material, we can get a tool out in a quarter, but.
Its not something Thats.
An issue right now.
Great final question from me.
Regarding gross margin I think I asked this question on the last conference call.
To hit the 44% target for the year Q4 gross margins are going to spike up I guess 250, or 300 basis points, let's say right around 47%.
And you know.
I guess, if they're exiting the year at 47% why would they dropped back down to 45%.
Yeah well.
First thing I'd say is we wont exit of 47% because part of that spike taken out with Q2 coming in at 43 seven.
But youre absolutely right, David already talked about 42% in Q2, the math that gets you there had a pretty big step up in the second half, but we're still have a step up we're going to have 44% in Q3.
Which suggests we still need a stronger Q4, and a new math may bring it closer to a 45%.
So the thing that moves margins around.
Is the mix.
A big piece of it.
The other thing is as we continue to bring.
When complete these gross margin initiatives, that's been one of the things driving gross margins over the years. So it's.
You know what.
I always talk about full year gross margins because quarter to quarter things can move around but if you look at.
Our kind of.
Our progress over the last many years for gross margins on a full year basis, we have been continue.
Contained in that stage things up.
And based.
Based on expected and at 44% this year that notches up a little bit more.
While we have quarters of.
Above 45%, yes, we when we do our models.
We're talking full year averages. So when you look at the $1 3 billion model.
That's not one or two quarters of greatness, that's a full year when you look at something like that so.
So hopefully I answered your.
Question.
Kevin Let me just jump in with one thing just.
You said mix, but I want to make sure.
It's clear.
Two mixes we worry about.
Look at one is the type of systems.
The product extent XI energy have better margins on some of the standard products and then the second is the systems versus <unk>.
We moved $1 3 billion, a big piece of that growth comes in systems and so there's.
That does put a little pressure on the on the margins because the percentage wise.
It's still roughly the same for CSI CSI, but it's a much higher revenue gain in terms of the systems. Yeah that is that is a good point I probably should have remembered I mentioned that I mean, we are we always say that CSI is accretive.
But if you look at what takes us from the current run rate to $1 3 billion.
The majority of that increase is coming out of platforms.
And so that suggests that we are making progress on systems, because if they weren't on our margins would be going backwards. So the fact that we're still making progress on and putting a much bigger mix of systems and which come in at lower margins at <unk>.
The next few does does impact things so.
Again, we're right, we're right, where we want to be the other the other piece of it too much I, probably should've mentioned as well as the product extensions is a big piece of it as well.
That's helped quite a bit with the margins.
That's part of the mix too, it's not just high energy versus high current there's mix within within the product segment. So there's a lot of there's a lot of moving pieces, but everything is moving in a positive direction.
That's the goal to keep it going that way and we that we have the we have the initiatives with very detailed roadmaps in place that gets us to where we wanted to.
Okay.
Our next question comes from Mark Miller with Benchmark Company. Please proceed with your question.
Congrats again on another very good quarter.
One of the companies I cover and the laser business.
Indicated they were seeing some slowing in the EV market in China, I'm, just wondering what youre seeing.
Well I think mark.
From the device standpoint, we're not seeing any slowing.
So we're not.
We're a couple.
We're a couple of steps away from the actual cars.
And so far.
The silicon carbide <unk>.
Demand is still very high in and still supply constrained so.
So we're not we're not necessarily seeing that or are being impacted by that.
You mentioned a number of E mails on her way both for Silicon carbide in memory I was just wondering if you could quantify that.
Yes, Hi, Mark This is Russell right now we have nine.
<unk> thousand the field I'd say, they're across all market segments and product. So we've got E vouchers in memory. It makes senses mature foundry.
On power.
So three of the found out there I think we had a press release on this are the H 200, silicon carbide tools in the power we have an XC Max for image sensors, we have actuated M. Shouldnt forget we also have a between dragon at advanced logic.
R&D Center, where we're looking to to basically get designed in from the start.
Just one housekeeping question what was the Capex.
I'm, sorry, it was $3 million mark in the quarter. Thank.
Thank you. Thank you thanks.
Thanks, Mark Thank you.
Yes.
This concludes our Q&A portion of the call I will now turn the call back over to Tom Martin, who will make a few closing remarks.
Thank you for joining us today, we have a very busy investor calendar in the coming months will be at the fourth annual Needham virtual semiconductor and semi cap one on one conference on August 20 <unk>.
The Jefferies Conference.
The Jefferies semiconductor hardware and communications technology Summit on August 29th in Chicago, and the benchmark 10th annual Tech Media Telecom Conference on September 13th in New York City, We hope to see you at one of these events. Thank you.
This concludes the presentation. Thank you for your participation in today's conference you May now disconnect have a good day.
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Got it.
[music].
Okay.
Great.
Okay.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Expansion.
Yes.
Okay.
Okay.
[music].
Okay.
Okay.
Okay.
[music].
Great.
Okay.
Okay.
Hi.
Yes.
Yes.
Thanks.
Okay.
Okay.
Okay.
<unk>.
Okay.
Sure.
Yes.
Great.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Thank you.
Yes.
[music].
Okay.
[music].
Yes.
Okay.
[music].
Okay.
Yes.
[music].
Yes.
Okay.
Hum.
Tom.
Yes.
Sure.
Yes.
Yes.
Okay.
Thanks.
Yes.
Okay.
[music].