Q3 2023 Power Integrations Inc Earnings Call
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Thank you for standing by we do apologize cause a delay in starting today. My name is Christine and I'll be your conference operator at this time I would like to welcome everyone to the power Integrations Q3 earnings conference call. All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again press Star one.
Thank you I would now like to turn the floor over to Joe Shiffler Director of Investor Relations. Joe You May begin your conference.
Thank you good afternoon, everyone. Thanks for joining us with me on the call today are bothered by the Krishnan, Chairman and CEO of power integrations, and Sandeep Nayyar, our Chief Financial Officer.
During the call we will refer to financial measures not calculated according to GAAP.
non-GAAP measures for the third quarter exclude stock based compensation expenses amortization of acquisition related intangible assets and the tax effects of these items a reconciliation of non-GAAP measures to our GAAP results is included in today's press release.
Our discussion today, including the Q&A session will include forward looking statements denoted by words like will would believe should expect outlook vision view forecast anticipate prospects and similar expressions that look toward future events or performance.
Such statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied such risks and uncertainties are discussed in today's press release and in our most recent Form 10-K filed with the SEC on February seven 2023.
Finally, this call is the property of power integrations and any recording or rebroadcast is expressly prohibited without the written consent of power integrations now I'll turn it over to Bob.
Thank you Joe and good afternoon.
Quarterly revenues were up 2% from the prior quarter, but came in at the low end of our guidance range at $125 million and for the fourth quarter, we expect a sequential decrease of $19 million at the midpoint of the range.
Our results and the outlook largely reflect the broad based weakness cited by many of our peers.
Earnings season.
In the industrial category, we are seeing strength in the renewable energy. Thanks to recent design wins, but the broader industrial market has weakened at several of our peers have noted.
The appliance market, which now accounts for about a quarter of our revenues.
Has been affected by the slowdown in home sales and the that's the dual effects of the pandemic when many airplanes, but it says what a port forward.
We also had an unexpected cancellation late in the quarter affecting both third quarter revenues and fourth quarter backlog in the computer and communications categories.
We believe this reflects efforts on part of an OEM did reduce charge that and component inventories.
Notwithstanding the short term outlook, we continue to see strong design activity and design wins that position us well for the eventual upturn in demand.
And we feel as good as ever about our long term growth prospects.
We are on track to double our addressable market by 2027, driven by electric vehicles motor drives renewable energy expanding dollar content and a host of upcoming products featuring our proprietary Gan technology.
Yeah.
Full speed ahead on Gan development more content than ever that Gan will not only overtake silicon as the technology of choice for most high voltage applications.
That will also be a more cost effective and greener alternative to silicon carbide over the long term.
Most gan suppliers rely on the technology of a single foundry, leaving little room for differentiation.
And affording them no control our technology roadmap, our Gan is proprietary which means that we not only control the road map, but also that we can tailor our gan switch for optimal system performance in each application.
Our Gan technology is also unique with characteristics that make it better suited for higher voltages than any other technology in the market today.
In March we introduced a 900 volt version of organic switch products.
And last week, we took the.
Next step on the road map with the latest in a switch featuring a 250 volt Gan switch.
Higher voltage switch IC set ideal for many industrial applications and geographies with unstable mains voltages as well as power supplies in 400 volt electric vehicles.
These higher voltage Gan technologies will also enable us to expand our Sam with new products that address higher power applications up to 10 kilowatts, such as E V onboard Chargers and DC to DC converters.
And a range of industrial applications.
Many of these applications are solved today by Silicon carbide, because there is no viable alternative that delivers the necessary level of efficiency.
Whether we have products in our pipeline that will offer a system level solution had a much higher level of performance than silicon carbide.
Gan is fundamentally more cost effective that silicon carbide, because it uses lower cost raw materials and requires a tiny fraction of the energy needed to produce silicon carbide, which is processed at extremely high temperatures that also makes gan a more sustainable technology that instead of them car.
With squander, a portion of the efficiency benefits in its own manufacturer.
Olive garden roadmap does not end at 12 50 volts, we expect introduced even higher voltage Gan in the near future and our vision includes potential to drive Gan beyond 10 kilowatts, making it a viable replacement for silicon carbide in a wider range of applications.
While pushing gone beyond 10 kilowatt is a longer term position. Our current Gan products are making significant gains in power supplies, we won more than a dozen smartphone and notebook designs in Q3, including a 100 Watt inbox design for a top notebook OEM, which uses our hyper P F.
S. Five power factor chip in tandem with Enos switch bought incorporating Gan switches.
We won an even greater number of Afghan designs in non mobile applications, including a multimillion dollar design, but a new platform at a top European appliance Oems as well as designs and home automation lighting audio and industrial controls.
Yeah, and also features prominently in our roadmap for motor drive products and will enable us to more than double the addressable market for our bridge switch products. Meanwhile.
Current bridge switch products, which incorporate our proprietary silicon threat fact technology.
To win designs, despite strong headwinds in the appliance market.
In addition to exceptional efficiency in active mode risks, which offers very low standby consumption, which is attracting strong interest from appliance customers in light of upcoming changes in the European Eco design.
Standards.
As you mentioned last quarter, the allowable standby consumption for a wide range of electronic products will be reduced beginning in 2025, and we expect the new standards to be especially impactful in the appliance market.
The low standby performance outbreaks, which perfectly complements our equal smart technology, which has helped us win a dominant share in the appliance oxidative power supplies in.
In September we introduced our latest eco smart product links with the XT to ESR, which offers NOLA consumption up less and find milliwatt.
In Q3, we won a design at a top European customer for chipsets, combining linked strict ex situ as saw and bridge switch in a refrigerator compressor scheduled to begin production in the middle of 2024.
At a higher level customer interest in our products has never been stronger.
On last quarter's call. We said that we had added more potential revenue to our design pipeline than any quarter in our history.
And we beat that record again in the third quarter. This.
This reflects the broader range of applications, we are addressing and a rising dollar content as evidenced by the fact that our average selling price has increased by almost 70% over the past six years.
And we are well positioned for growth once demand returns. Thanks to recent design wins, including a Q3 design win that you gave us a significant role in India as <unk> fixed wireless rollout, which is expected to ramp over the next several years.
Finally, we demonstrated the superior efficiency and ruggedness Afghan in those with diabetes last month in the Bridgestone World Solar challenge that corresponds to that team often get any students. You know there is across the us to Australian Outback in a solar powered car.
With the help of our applications team razors implemented a DC to DC converter that achieved almost 96% efficiency at full power and a 50% implementing light load efficiency compared to an earlier solution.
Greatly reducing the cost of energy is I'm happy to report that of the nearly 30 entrance in the rate probably support team was one of only 12 to complete the seven day 300 kilometer journey.
To conclude in spite of the tough demand environment. Our long term outlook is unchanged and we are focused on what we control sticking to the playbook. We have followed in every downturn.
We are keeping inventory elevated.
Attained foundry capacity and to be ready for the strong upturn knowing that we will be among the first to see the turn when it comes.
We are managing expenses prudently, but investing in the products and technologies that will drive our long term growth such as Gan automotive motor drive and our next generation gate drivers.
And we are buying back our stock when it's down and growing our dividend knowing that we will continue to generate strong cash flow as revenues recover.
With that I will turn it over to Sandeep for a review of the financials. Thanks, <unk> and good afternoon in face of the weak demand environment. We are managing expenses prudently while continue to invest in the opportunities that will drive our long term growth.
We're also moderating our manufacturing volumes, but as always we are cognizant of maintaining foundry capacity and having inventory to respond to an upturn when it comes.
Revenues for the third quarter were $125 5 million up 2% from the prior quarter and down 22% year over year.
On a sequential basis, the communication category was up mid teens, driven by design wins and channel restocking associated with the China handset market China.
Chinese Oems that charterer, Odm's and distributors have run at unsustainably low levels of inventory over the past several quarters and view and we view the restocking at this further signs of normalization in that market.
The industrial category was also up mid teens sequentially driven by high bar, where we have seen strong growth in utility scale solar.
Automotive while still small was also up from the prior quarter.
Computer revenues were down more than 30% sequentially, driven by tablets and to a lesser extent notebooks and aftermarket charges.
Consumer revenues were down mid single digits, driven mainly by seasonality and air conditioning and the continued softness in the overall appliance market.
Revenue mix for the quarter was 32% industrial 32% communication.
26% consumer and 10% computer.
non-GAAP gross margin of 53, 3% was modestly below our expectation due to end market mix.
But nevertheless increased by 150 basis points from the prior quarter, driven by manufacturing efficiency and the weaker yen.
Distribution inventory ended at 11, six week up a week and a half from the prior quarter driven primarily by the channel restocking for China handset customers as mentioned earlier.
While distributors for other end markets.
Remained at elevated levels due to weaker sell through.
However, we did see a reduction in channel inventories in October.
non-GAAP operating expenses for the quarter were $41 $8 million down more than $2 million sequentially and well below our forecast as we continue to adjust the pace of hiring and manage discretionary spending carefully.
non-GAAP operating margin for the quarter was 20% up almost four points from the prior quarter.
non-GAAP earnings were <unk> 46 per diluted share up <unk> <unk> from the prior quarter.
Cash flow from operations for the quarter was $26 $7 million.
Inventory dollars on the balance sheet was essentially flat from the prior quarter and rose by four days to 230 days at the end of quarter end.
Uses of cash during the quarter included $8 million for Capex and $11 million for dividends and $2 million for share repurchases.
The buyback at $73 million remaining at quarter end and has been significantly more active since the end of the quarter as dictated by our preset price volume metrics.
As noted in our press release, our board has increased the quarterly dividend to <unk> 20 per share beginning with the fourth quarter payout in December.
Turning to the outlook, we expect revenues for the fourth quarter to be $90 million, plus or minus $5 million.
non-GAAP gross margin should be similar to the Q3 level of 53, 3%.
non-GAAP operating expenses should be around $42 5 million.
That puts us on a course for a full year expense growth of only 3%.
Despite this year's high inflation.
Finally, I expect non-GAAP effective tax rate for the fourth quarter to be around 7%.
Operator, let's begin the Q&A.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad and we'll pause for just a moment to compile the Q&A roster.
Okay.
Okay.
Okay and your first question comes from the line of tore Van Berg from Stifel. Your line is open.
Yes. Thank you.
The first question is on the channel inventory and.
And Dave I think you mentioned it was 11 six.
Up sequentially.
You also said you have started to see it come down this quarter.
Assume where the decline in revenues, it's going to come quite a bit more so where do you expect the channel inventory to be as you exit the year.
So I think we should get a benefit of at least a weekend week and a half or so in the coming quarter.
As you know this last quarter and the quarter before I've been a little off anomaly, we generally havoc, but I think this slowdown has kind of surprised us a little bit on the sell through.
But October was a welcome where the sell through definitely exceeded.
The sell in so I think my guess is about a week and a half down.
Very good and related to that I don't know if you want to.
And so perhaps the Louis here, but.
$90 million is obviously half of where the peak was actually.
Even more so than I am.
Just wondering if you have a good feel for where your true consumption is.
Obviously this has been going up for a few quarters now you had a little bit of relief, obviously from Destocking, perhaps in communications and PC, but.
Any read you have on true consumption in.
Some companies have talked about sort of ripping off the band data just guiding down pretty hard for Q4, I'm sort of wondering if that $9 million fits into that profile or do you think this could continue to be challenging into the first half of the year.
Alright.
The downturn has surprised us.
The surprise to other people.
We really talk when.
Bookings came out strong in March through May.
On a rebound.
And I think our customers thought that as well and obviously the demand and show up and so now there has still stuck with inventories, especially in appliances and industrial markets.
And so so so that's the reason why this is this has become a real reset in revenue for us. So in terms of what is the true demand. If we go back to normal demand.
That is before Covid demand.
Our run rate should be in the somewhere in the $150 million per quarter.
We have done a number of modeling that's what it would say.
You know why it is taking so long nobody really knows other than the fact that.
The economy across the world is not doing so while interest rates are very high.
So we you know we know it's going to come back. The question is when and Thats. What we are trying is struggling to figure it out but we think this is the appropriate thing to do to reset the number.
We certainly don't want to grow.
Display inventory any further.
And.
We are.
Optimistic that it will come down because you're going to have in Q4.
And we expect things to start recovering from Q1 onwards.
Great just one last question on gas and obviously a bit more longer term. So you talked about the 12 50 volt Gan switch introduced last week and you did say that obviously that opens up the door for new applications, obviously more markets and so on and so forth.
When is the earliest.
Something like that could be in production.
At $12 50 again switch.
The 12% against which could be in production sometime next year because it usually takes.
Six months to nine months to go into production.
The.
It will be mostly in the industrial market.
But when we are able to build.
Build products that go to much higher power levels, then we'll get into things like onboard charges.
In cards, and DC to DC converters in cars and also into data centers and so on and so forth, but that said two or three years away. We are in the we are in.
The process of developing those products as you know everything we do is at a system level.
And so.
It takes some time however, the fundamentally this technology is.
Is very attractive to replace silicon carbide in the 1200 volt applications. As you May know there is no silicon solutions for that other than Igt's ICB. These are not very efficient.
But the regular MOSFET don't go to 1200 volts. So the only comfort the only solution you have today is silicon carbide, but gan will replace silicon carbide, I believe and provide much higher performance.
Great perspective, thank you very much.
Youre welcome.
And your next question comes from the line of David Williams from the Benchmark Company. Your line is open.
Hey, good afternoon, gentlemen, thanks for letting me ask a question here.
I guess, maybe if you could talk maybe a little bit you noted there was a sizable push out from an OEM that impacted the third quarter and fourth quarter can you kind of give us a sense maybe of what the magnitude of that impact was as we think about the fourth quarter end and does that recover is there a chance for maybe that to rebound it's demand.
I realize it's a bit.
Yeah, Let me try and answer that question that would be very careful because we don't want to discuss any specific customer.
But in terms of the magnitude it's in the mid I'm, sorry mid teens.
$8 $1 million is the total magnitude.
Part of that was in Q3 and a larger portion is in Q4.
But Q4 reduction it is also impacted by other items. This is only one of the three items. The other items are being a slowdown in industrial and consumer demand itself. The.
The last one is we had a unexpectedly strong.
Bookings and shipments.
Stocking distributors, but.
China cell phone business in Q3.
It will not be there in Q4.
And this is because the inventory was unusually low and when the customers came back with the orders.
The distributors are caught off guard and so they scrambled to get some products from us and they can.
Get the inventory built up too.
Normal levels.
And Thats one of the reasons or what all this inventory went up is because of the restocking.
The cell phone.
The business.
<unk>.
Okay, great great.
And then maybe just another one here on that began.
Released it seems like quite a bit or many products over the last quarter and it seems like the pace of those products is really picking up and congrats on the new 12, 50 volt Gan and we understand the.
The applications for that but I guess, if you think about your customers and what you are hearing.
Can you talk maybe a little bit of feedback of what the early.
Thoughts have been with customers.
Yeah, I think most of them are very surprised you can actually do again at $12 50 wells.
Our competitors that have a challenge even doing 600 5700 volts.
Struggled for a while.
And our technology is uniquely suited for higher voltages and so we were not only able to introduce a 900 volt product earlier. This year now we're able to do at $12 50.
If you are wondering what is the magic about 12, <unk> 12 50 volts.
That is directed by 80% will be 1000 malls, which is what is needed in many applications industrial applications and Thats why related at $12 50.
Now that technology is so flexible that we can even go to higher voltages and we plan to do so and offer even higher voltage products and Thats really.
The first time in the industry that Gan is able to go to these types of voltages.
So what is the magic about that is that the 1200 volt is quite important.
Important.
The development because when you go to a lot of balls you are in the silicon carbide world and to the power level. We can go to which currently we think we can go to 10 kilowatts, we can replace silicon carbide in many applications.
And in the longer term.
We believe.
With some breakthroughs in Gan, we could go to even higher power levels and potentially become a major competition to silicon carbide, but at a.
Very competitive, but more important much higher performance that silicon carbide and Thats. What is exciting about that 100 volt has a magic voltage where you youre really getting into the silicon carbide world.
Is that the same process <unk> used on your lower voltage lower power or was there was there an architectural change to get to that 250.
Well the fundamental devices the same but obviously there are a lot of.
Innovations that get us to higher voltages.
And as I said, we will be pushing it even higher voltages, which we are very confident we can get to.
And we've had a number of breakthroughs in that regard.
Okay, great. Thanks, so much I just one last one real quick.
What do you think that turns business looks like for the hit.
Hit the $90 million.
<unk> fair Cindy.
There are tons for this web and the load in the 2000.
<unk> low twenties.
Alright, great.
Great. Thanks, so much guys.
Thanks, David.
And your next question comes from the line of Christopher Rolland from Susquehanna. Your line is open.
Hi, guys.
Just given the kind of crazy inventory dynamics here I was wondering if you can kind of maybe talk about the snapback when do you think it might com.
Broad thoughts on march versus seasonality or or even if you could kind of the slope.
For next year.
That's a great question, you've been asking about that within ourselves and our customers and unfortunately, there is no.
Clear answer from our customers, but from everything we know we are optimistic that Q1 will be.
Our higher than Q4, but we don't know by how much and we are hoping that from that point onwards. It will continue to grow.
And at some point it has to come back. This is not this is way below the trend line.
I am surprised is taking so long.
Clear the inventory is obviously because the demand is lower.
Lower well below where everybody was expecting it to be but the demand has to come back at some point and I think when it comes back we'll be in a fantastic shape. Because we are continuing to win a lot of designs in lots of areas as you as you've heard from us.
Whether it's electric vehicles are.
Gan based solutions for industrial applications and so on.
And appliances with bridge switch with appliances, we have a lot of designs and some of those designs have been delayed simply because of the inventory they want to clear out the older products before they introduce new products. So many of these designs will go into production in two of the 24 and so we are optimistic that.
Maybe the second half of 'twenty four.
B, the time and it'll be it'll come out strong.
However, if this happens we are always the first ones to come out of it and I think we will come out very strongly just like we've done in the past downturns.
Great.
And perhaps another one for you.
When I look about look at the kind of Gan market overall.
I think the sweet spot is for right now at least is the high volume consumer market.
I think you guys were maybe doing 30 or $40 million there at one point.
But what's kind of stalled that here other than the macro and when do you think we can get a meaningful kind of inflection there and I think that was a part of maybe a gross margin story as well if you want to talk a little bit more about gross margin.
It was a little lighter this quarter and kind of.
How we should think about it a little further out thanks.
Talk about Gan, and then Sunday pool, let us the gross margin part.
Actually we are continuing to expand Gan, we're beyond their mobile phones, and we started with mobile because that's the fastest rate.
To get it designed in but we are seeing a significant interest and design wins in appliances industrial markets computer markets.
It's really going to replace silicon about 30 Watts, we believe all of our new products.
So I'd say most of our new products use Gan.
And the reason for that is because it is a better technology it will compete very well with silicon.
Within the next year or so and so we are seeing a lot of interest even in markets I never thought would care about Gan.
Simply because of some of the advantages it brings in some cases the sufficiency in some cases is the fact that we don't need and if a heat sink in some cases, it's because it is you can get very low rds answer which is necessary.
In many cases, it's because it can handle much higher transient voltages again has this property.
It doesn't have a sharp breakdown voltage. So if you exceed the breakdown voltage for short periods of time. It does not damage the transistor, which is incredibly useful if youre shipping products to places like India, where you have unstable.
Grid and so we're seeing a lot of interest in all of these different areas.
I think the number of designs we are winning.
Outside of mobile.
<unk> is higher than what we're winning within mobile.
We've talked about in the last call.
Conference call and Sunday May be you can handle the.
Yeah, I think even though we're not totally certain on the revenue outlook for next year, we've done lots of different modeling and.
I think given the different modeling is the best.
I am looking at our 53 <unk> percent for non-GAAP for next year also.
Now long term as I had talked about even in the analyst day that the Mexico is favorable but remember the yen is at.
At <unk>.
Very favorable place. So if you have to model out you have to.
Model that the yen would come back to some normal levels running in the $140 versus the normal levels of 120, so as the mix goes up and the yen moves back I've always said, we will be on the higher end of the model and I think even for 'twenty four.
I think we'll be somewhere around 53, 5%, which is towards the higher end of our model.
Yeah.
Thank you guys.
Okay.
And your next question comes from the line of Matt Ramsay from TD Cowen Your line is open.
Good afternoon, guys. Thank you very much for taking my question.
I'm trying to wrap my head around some of the commentary you gave around I guess.
A new quote unquote, new normal at around $150 million, a quarter and I wanted to dig into a little bit more as to what how you guys built that was the historical sort of top down was it was it bottom up based on.
Sort of design wins that you see in content you have I, just kind of juxtapose that against I think the quarter was $115 million thereabouts in 2019 before the pandemic and things all got tight and things went higher so I'm just trying to get my head around like sort of the pieces that you put together to get to that.
A new normal if thats, indeed, what you're sort of forecasting that it might be.
Okay. So we have added the several different ways of modeling. It I think finance has done their own model marketing has done their own model sales have done their own model. It's based on multiple things at is bottom up and top down we have done both ways.
In terms of bottom up where we have taken the.
What we call a normal consumption of various markets.
Before COVID-19.
And then said Okay. You know if you look at historically.
The market size is increasing by this amount.
And then on top of that we have.
Additional products and designs that to add to that so it's not exactly.
<unk>.
But surprisingly all three of them show that we should be at 150, a quarter roughly speaking.
Other than of course of everything else, that's going on like wars and <unk>.
Geopolitics and so on so if you just take that all of the all of that away that would be our trend line as of 2023.
With the growth.
Further into the future. So it's just a modeling exercise.
Take into account all the crazy.
Crazy things that are going on around the world.
Thanks by the way I appreciate it.
Just a little bit shorter term sandeep.
Could you maybe break down the guidance for December by segment, just given the amount of revenue dislocation here I just want to make sure. We're all starting from the right place.
I think what the decline you should see as we talked about the decline will be more significant in communication and computer.
But all four segments will decline.
Alright, Thank you very much guys I appreciate it.
Thanks, Matt.
Your next question comes from the line of Ross Seymore from Deutsche Bank. Your line is open.
Hi, guys. Thanks from ask a question.
You talked about the first quarter you hope is going to go up and I know, it's very difficult to predict these days, but if youre going to end your channel inventory at 10 weeks and Thats still at least one if not two weeks above your target range.
Why wouldn't we still have some burn there and maybe even just seasonality to the extent that matters also being a headwind in <unk>.
Yeah.
Yes, so one of the things that we are expecting a rebound we talked about the cancellations.
In Q3, and Q4 and I think.
There'll be a rebound on that so that's where I think the primary that's not and that's through direct sales not through the channel.
Also if you really look at the level, we are reaching in appliances. The channel inventory in appliances, we are hoping will <unk>.
By Q4 come down.
The revenue guidance that <unk>, given will really come down to normal levels.
That's my expectation.
And if you really think were appliances have come down and I'm, just using that as one category.
The level is now even below the 2019 level.
So as <unk> indicated we are not certain other total timing.
I'm, hoping that in Q1 things like air conditioning start getting built up.
Get more so in Q2.
And the China, then the rebound of this customer that I talked about what cancellations those are the reasons that.
I think baidu, saying, we'll be better what we are saying they are typically seasonally down negative one our dual but will be better than that so that's why <unk> will be a little better than this quarter and that's a directional because on because of these couple of items.
Thanks for that color.
Part of your question asked about the gross margin what about the Opex side of things I know youre pretty tight in the fourth quarter. How you expect that in <unk>. So this has been as you can imagine with all the inflation that everything has been a real challenge and if you really look at our last four to five years.
We really tightened the belt, but we're at a point, where we've got such exciting products in the pipeline you've seen the announcement, we had with again with the investments we are going to make their for automotive we've got other investments for India and other places.
And so we have to make those investments and that's why for next year I think you should more for modeling purposes. The expenses will grow 7% to 8% from the current year level. If you really think what is really happening here. We cannot expense was nearly $708 million. This year and basically have pushed that out a mixed.
With the normal raises the higher healthcare cost that I'm sure you're aware of what's going on in that market.
So we are keeping tightening our belt.
How much we can but we have to make those investments which are strategic and you know Ross. This is not the first time, we've been in this tight situation. We've been here in 2011 and 12.
And we had the same once was a yen problem wanted it was Nokia and rim going away, but we invested and you saw half come back in.
And I think this is going to be no different than I think.
As <unk> indicated.
Typically these downturns have been about four quarters. This time, it's definitely longer.
But they eventually turn and we see it first and Ed.
Every time, we turn we've come out stronger.
Great. Thank you.
And once again, if you would like to ask a question Press Star then the number one on your telephone keypad again, if you do have a question at this time you can press star one on your telephone keypad.
Thank you there are no further questions at this time I would like to turn the floor back over to Joe Shiffler.
Alright, Thank you Christina and thanks, everyone for listening there will be a replay of this call available on our website investors power com, Thanks, again and good afternoon.
Thank you. This does conclude today's conference call. You may now disconnect have a great day.
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