Q3 2023 Camtek Ltd Earnings Call

Yeah.

Yeah.

Okay.

Okay, Hello, everyone and good morning.

Hosting todays call is Rafi, Amit Canpotex, Chief Executive Officer, Rami, Langer, Chief operating officer, and Moshe Eisenberg, Chief Financial Officer.

Before we start I would like to note that certain statements made on this call constitute forward looking statements within the meaning of the Securities Act of 1933 as amended and the Securities Exchange Act of 1934 as amended and the Safe Harbor provisions of the private Securities Litigation Reform Act of 1095.

Stops such statements may use terminology, such as believes expects will may it should anticipates plans or similar expressions to identify forward looking statements such statements reflect only current beliefs expectations and assumptions of Comtech. However, actual results performance or achievements of Comtech may differ materially as they're subject to assess.

The risks and uncertainties.

Such risks and uncertainties include but are not limited to those that are described in <unk>. Most recent annual report on form 20-F, and as may be supplemented from time to time in Canpotex other filings with the SEC, including today's earlier filing of banning PR all of which are expressly are expressly incorporated herein by reference.

<unk> <unk>.

<unk> undertakes no obligation to update any such forward looking statements unless required by law context public filings are available on the securities and exchange Commission's website at Www Dot SEC Gov and May also be obtained from <unk> website at Www Dot <unk> Dot com also on todays.

Cole.

We will include certain non-GAAP numbers for a reconciliation between the GAAP and non-GAAP results. Please see the table attached in today's press release, which is also posted in the Investor Relations section of <unk> website.

With us today, we have Moshe Eisenberg, CFO, Rafi, Amit <unk>, CEO, and Remy Lanka C O O and I would now like to turn the call over to Rafi, Amit Rafi you May go ahead.

Okay. Thanks Kenny.

Good morning, or good afternoon, everyone.

Got to close the third quarter with revenue of $8 $5 million.

Gross margin came in at 49%, which is a continued improvement over previous quarters.

Indicated earlier this year.

Operating margin was 28% over 60% of our revenues came from advanced interconnect packaging applications.

Rich.

With a significant portion coming from H P M and triplet modules.

The remaining 40% is divided between compound semiconductors for power devices C. I S and process control applications.

Regarding the war in Israel, I would like to explain how we manage this situation.

About 10% of our employees at Israel are on active reserve duty.

The remaining workforce is manage to compensate for the ups since.

Our facility is quite far from the border and we have some redundancy in our operations, which is done in three different locations. Thus any risk of interruption is minimized.

Our delivery to customer has not been affected and we have not experienced any material or supply shortage. So all in all the war is not affected our operations or business.

On October 31st we completed the process of acquiring 44 factor and we have begun the integration of FMT into come to.

We are in the final integration process of FOT sales and customer support functions into our global organization.

The synergy of our product make this process straightforward.

We have also started the integration of the other different organizations function.

And to Comtech, and we plan to expand the facility in order to support potential growth and implement the complex work flow into F. R E.

Now I would like to add a few words about the business environment.

Since the beginning of third quarter, we have reported orders received of about 150 systems and since then we have received additional orders for about 90 systems.

The last order, we reported yesterday was 428 tools.

From tier one customer for.

For H B M and a true genius integration applications.

Most of the orders are for installation during 'twenty 'twenty four.

This healthy backlog and order and pipeline point to a year of growth for Comtech and we expect a record year in sales in 'twenty 'twenty four.

No doubt that our high performance computing is the bright spot for us.

Based on several survey the number of cheap pellets is expected to grow at a 35%.

<unk> in the next four years and the H B M at acute care of 22%.

We have strong position in this market. So we expect to expand our market share by winning additional inspection and metrology steps together with FOT product.

In addition in some territories, we see demand for other applications that are not related to the high performance computer, but fueled by mobile phones server automotive and other segments.

We are also enjoying healthy demand from all sub serving multiple applications.

We are greatly encourage by the number of orders we received for H B M and buy cheap flip modules to be installed in 2024 at.

At the same time, we are aware of the technological changes soon to be adopted by our customers. We are totally prepared with innovative and creative solutions and will start qualification process at customer site soon.

With respect to Q4, we expect continued organic growth and with the contribution of F. R. A T. Our revenue guidance is $87 million to $89 million.

And now more share we review the financial results for sure.

Thank you Rafi and my financial summary ahead, I will provide the results on a non-GAAP basis the reconciliation between GAAP.

Our results and the non-GAAP results appear in the tables at the end of the press release issued earlier today.

Third quarter revenue came in at $85 million, a decline of 2% compared with the third quarter of 2022, an increase of 9% from the second quarter of 2023.

The geographic revenue split for the quarter was as follows Asia.

81% in U S and Europe accounted for the rest of 19%.

Gross profit for the quarter were $39 4 million to the gross margin for the quarter was 49% similar to the third quarter of last year and an improvement from the second quarter of this year, which was 48%.

As mentioned before.

We've been taking measures to improve the gross margin in the last two quarters, we haven't seen the initial impact and we expect to see continued gradual improvement in the coming quarters subject to sales mix.

Operating expenses in the quarter were $17 $2 million very similar to the third quarter of last year and to the previous quarter.

Operating profit in the quarter was $22 $2 million compared to the $23 $2 million reported in the third quarter of last year.

Operating margin was $27 six compared to $28 three.

Financial income for the quarter was $5 $7 million at the similar level to the previous quarter and much higher than the $2 million reported last year.

The increase from last year relates to the significantly higher interest rates on an increased cash balance.

Net income for the third quarter of 2023 was 25 to $25 2 million or <unk> 52 cents per diluted share.

This is compared to a net income of $23 $3 million or <unk> 48 per share in the third quarter of last year.

Total total diluted number of shares as of the end of Q3 was 49 million shares.

Turning to some high level balance sheet and cash flow metrics.

Cash and cash equivalents, including short and long term deposits and marketable securities as of September 32023.

$517 1 million daus.

This compared with $506 3 million in the at the end of the second quarter.

I know that in line with the FRP closing in October our cash balance has decreased by approximately $100 million, which will also affect our interest income.

We generated $12 $4 million in cash from operations in the quarter.

Inventory level was $72 $7 million it went up by $4 $4 million over the quarter.

To support the anticipated sales growth in the coming quarters.

The accounts receivables increased to 91 four from $79 million in the previous quarter, primarily due to the increasing revenue and the timing of collections.

As Rafi mentioned before we expect revenue of between 87 to 89 million daus in the fourth quarter with it which is about 7% increase over the fourth quarter of last year.

And that.

We look forward to a year of growth in 2024.

We will provide more color next quarter after we announced our Q4 results.

And with that roughly <unk>.

I will be open to take your questions Tony.

Sure.

We will now open the call for Q&A. So if you have a question. Please raise your hand on the platform and.

We will.

So for a few minutes to see that for a few seconds to see who which to us. So first question is going to be from Brian Chin from Stifel. Brian You May go ahead and ask your questions.

Hi, there firstly best wishes and I hope that you're all well.

And thank you for letting us ask a few questions maybe to start.

Roughly <unk> of the 240 system bookings since the beginning of <unk> is the right way to think about this as maybe 80% 90% of that relates to shipments that will occur next year.

And also I think our book to Bill was probably at least two times.

Two to one in <unk>, so maybe it won't be quite that high but do you expect the book to Bill will still be well above one <unk>.

Hello.

And so as we mentioned in our all.

All the announcement most of the order we received for 2024 okay.

And on top of that I think we don't freely discuss any specific.

Yeah.

Don't ask a specific question about the backlog or about the book to beat and other type of there, but maybe boucher can elaborate a little bit about that Michele could you add something.

Yeah Yeah.

Indeed, most of the order of the 240 machines that we have received so far.

For.

Deliveries in 2024, I don't have the exact percentage, but most of it is for 2024 deliveries.

With respect to book to Bill obviously in Q3, the book to Bill was much higher than one.

We are still in the middle of the fourth quarter. So it's still early.

For me to say, whether the book to Bill this quarter would be.

Greater than one.

But my expectation based on a orders that we've received so far plus.

Plus.

Orders that we have in the pipeline that indeed, it will be a greater than one.

Alright, great. Thanks.

For a follow up.

For calendar 'twenty four you stated that this should represent a record revenue year for the company FRC certainly asked of US can you give us an idea of the impact to the model.

Gross margins and expenses from <unk> and also how do you plan to integrate the technology into new and existing platforms and does the acquisition also provides favorable customer synergies.

But anyway regarding the you know.

The acquisition of FERC, I think that the 2024.

When we discuss about to integrate to Comtech, we mainly mean in the operation and in sales and customer. We are not we don't have any plan right now to start to integrate the model from here to there and to come with some new.

Towards this is not in our priority effort T as its own backlog for what they did in the last few years contact also if enough backlog. So we believe that 2024 in term of R&D.

R&D integration that's call. It we are not going to put too much focus but more on the administration operation and other aspects of the two company to work together as one.

Regarding the.

Therefore, T and context.

Just to add you asked about the contribution to the financial model.

So I would say the following.

We said.

When we announced the deal.

We plan a contribution of around $30 million or <unk> next year.

In 2015.

Good.

Number.

For the fourth quarter their contribution is expected to be pretty much in line with this run rate.

And overall this business is quite profitable and it's very similar to the profitability metrics of Comtech.

Okay great.

Thank you and then just to clarify Moshe.

You said <unk> in line with the $30 million run rate run rate or is that <unk>, because I guess <unk> you only have it for two out of three months and so the two out of the three months isn't always in the run rate yes.

It only took only two months within the fourth quarter correct.

Okay. Thank you.

Alright.

Thanks, Brian.

Next question will be from Tom O'malley from Barclays. You May go ahead.

So just just a little confusion on Q4 that I want to tell us.

Oh, sorry.

Some of that we lost 3% yet can you hear me.

Yep Yep, Hey, So just wanted to just run through Q4, a little bit here. So in the slide deck you had on the web. This morning, you had 82 to 83 for Q4, so I assume that that was the organic revenue and then you're guiding to 88, so that would imply a $5 $5 million contribution from <unk> can you just can you just walk through.

What the exact contribution to argue for just because I'm seeing a couple of different numbers here.

No I am not sure what the 82 to 83 million.

This number come from but it may be.

A typo.

As I said, you know our $87 million to $89 million includes.

Some organic.

Both from Comtech plus contribution from FRP in a level that is pretty much the run rate of the $30 million that we expect next year.

So the correct.

Guidance is 87% to 89 combined with the F&B contribution.

Okay. So.

I guess what is then.

Okay, so $30 million run rate youre going to adjust that for the two or three quarters that that makes sense going into the out year are you expecting an acceleration of that FRG business or is that $30 million still what youre sticking with for the contribution from the acquired business for 24 or 24, what we said and we are staying.

With this assessment that it will be.

$30 million for 24 of course, as we learn the business, we will be more learnings, but that's the that's the expectation as we go into 'twenty.

Okay, and then lastly, when.

When you guys look at bookings year traditionally.

I'd imagine that just given the amount of orders that you guys have your visibility is a lot better.

When you guys say record revenue for 'twenty four is that record revenue fully backed on existing orders today, okay with the orders that you have in the book is that already a record revenue year are you expecting some turns business year over year to get you above that record revenue. Thank you.

So so first of all the record revenue to date and expectation the backlog today that we have in hand still does not support to record revenues, but understanding what we have with the pipeline talking to customers.

Our expectation is to be for a record year very similar to what we said a quarter ago.

Thank you.

Thank you Tom.

Thank you Tom.

Next question will be from Craig Ellis of B Riley Craig You May go ahead and ask your questions.

Yes, thanks for taking the questions and I also wanted to pass on.

Just the best wishes for operating in a very unusual.

Or.

Impacted environment.

<unk> wishes to the team. So the first question I wanted to ask is a brown.

Some of the orders that that are in hand.

And some that could come in if there is a lot of attention on both.

AI related orders and heterogeneous die and yet there have been parts.

The business for industry veteran seem pretty muted this year, whether it's <unk> or front end in <unk>.

Some other areas. So one of the things I wanted to better understand dispatch or greater which the orders for the 240 systems that you have is really more heterogeneous plus AI versus some of the other applications in areas of exposure.

The company has and then the second part of the question is to what extent do you think some of the areas that have been more muted this year have potential to emerge as areas of strength next next year.

So.

First of all thank you for the best wishes, Greg Yes. It is indeed.

Challenging times, but we'll manage to it so when we look at the business all in all I look at the 240 or looking forward at what is in the backlog.

So.

We are above 60% of our business is for what we call advanced packaging.

No doubt the triplet and DH BMS.

<unk> itself is about half of it.

No doubt and this is emerging as I would say is a relatively new business. We had this business but.

From the volume point of view it was much smaller so indeed this is an area.

That will take us to a different level in the business and this is why really this contribution mix is still come.

Give us the expectation for record next year.

Now when we look at the other areas.

One the heterogeneous integration is definitely becoming more and more dominant in the business. We're seeing a lot of business there from <unk> and also from Idms. That's another portion that is growing in the advanced packaging.

And in the advanced packaging. We are also seeing the fan out is still being dominant in this space. So I think that these.

Three areas really make today, our advanced packaging business now the rest of the businesses are there I think we spoke about healthy backlog from <unk> and Thats lots of applications advanced packaging.

Cmos image sensor or some already so they are there.

The silicon carbide and I would say the front end when we look forward for next year. They are above 20% of our business. So I think these businesses are going to be healthy.

It's very hard to give the exact expense report they do but definitely that's in areas that will continue to see business.

What is interesting when you look at the <unk> business. The <unk> business is really in these areas of the silicon carbide and the advanced packaging. So this really strengthened our position there because we are going to do as a company more steps on the same processes and we will be exposed to new opportunity.

Is that were in there for us in the past.

That's really helpful color Rami. Thank you.

Second question, maybe more of an operational question and its regarding to our lead times given given how significant the recent order activity has been admittedly.

Fair point profit. This is vastly for shipment in 2024, but can you just talk about to our lead time shipment times in the company's confidence given how dramatically orders of surge that that you can hit.

And customer ship.

Shipment windows and capture all of the order potential so so I think.

Greg.

The fact that these orders we are getting today for 2024.

Give us enough time to.

To really get prepared.

And we do not see any issues with our supply chain is very solid we have the inventory in place we have the manpower in place and to meet the forecast that we're looking at and the surge in the business that we're forecasting.

From that point of view, we are ready.

And I think we have enough.

I would say head on time or we are seeing the things in early.

Early enough in the game to make sure that we will have all the material and we'll be prepared to deliver older machines from time.

That's really helpful. And then lastly for me before I drop back in the queue.

You and I have talked on numerous calls in the past about the company's M&A aspirations in <unk> looks like a really nicely synergistic fit and it looks very EPS accretive intermediate long term.

With that deal now closed and working nicely through integration does that mean M&A is something that will be off the table for a while or are how do you think about M&A from here with <unk> in the fall.

I know, it's not off the table, we continue searching for potential but.

The same as FERC T. This is what we call a perfect synergy.

Okay and this is definitely one of our our preferable.

M&A consideration to look for a company that is easy to integrate that.

Probably I would say the same.

The same environment the same system.

Copy exact but not something totally different for what we're doing or if maybe or issue that we are not you know understand very well the market and the potential. So we continue and we are definitely considering more M&A.

Thanks for that perspective, and good luck team.

Thank you thank you Craig.

Our next question is going to be from Gus Richard of Northland. Gus You May go ahead and ask your questions.

Yes, Thanks for letting me ask a question.

Just in terms of as you ramp.

Do you foresee any capacity constraints or maybe a better way to ask the question is.

Where where do you need to focus to make sure you have capacity.

Demand growth.

You are talking about the capacity here to manufacturer Gus wrecked yes.

And lead times on Opex is it.

Manpower or space, just sort of where which first run into capacity constrained. So so first of all I think we discussed this in previous calls we have to date capacity, we've increased our capacity last year and today, we have enough capacity for roughly half a billion dollars in sales annually. So so the clean.

<unk>, which is the longest time.

Is there and also the main power training we have enough.

<unk>.

So the rest is really planning and as I said before.

Because we understand more or less what is going to happen next year, we have backlog already for next year. So we have we're talking to customers, we understand what we will need to ship.

We have already put in orders for what we need for material point of view, we have enough inventory on hand for the next few months. So we do not foresee any reason not to ship all of the machines in 2024.

Got it. Thank you and then I think in Europe.

Prepared remarks that I think you're starting to see.

Chip, let's expand into auto and I think you said mobile as well and I'm. Just wondering if you could talk a little bit more about those opportunities and when you might start to see those <unk>.

Impact your.

Your backlog or your shipments.

No no.

I think here in our remarks, what we said that there are other opportunities for non business that is for business that is not related to triplets and H BMS, we see opportunities there as well our business will be in the range of let's say more than 30% for the HBM.

Triplets, the rest will come from the other segments that we serve.

So I think today the market is focused on the triplet in HBM. This is high performance computing.

I think this is going to what people call AI applications I think this is today.

The main application.

Definitely they seem in two to three years no doubt will become the standard in computing in the industry, but I think the <unk> deal will get to that point.

Got it and then the last question for me in terms of.

Demand, obviously is going up because of the unit volume, but I also wonder if you could comment a little bit about.

Inspection times and.

Increasing bumped density and then.

Whats happening for you.

How long it takes to inspect the wafer.

As CMO.

This is really application dependent but no doubt.

And I think.

Rafi mentioned in the prepared remarks.

That we understand where the market is going to so we've talked about the fact that the number of bumps are becoming.

More the increasing numbers and obviously, they are becoming denser and smaller and Dcs This will require.

New capabilities some of those capabilities, we already have installed these customers.

New capabilities that we are going to qualified customers.

Those capabilities first of all we'll improve the throughput on one hand to address the.

The increase in the numbers of bumps or intensity, but definitely all in all some of these applications the slow the inspection and metrology time.

In certain applications and.

Obviously I mean.

This is the physics of the business and customers are required to purchase more machines.

But we are doing on our hands our best.

From the <unk> to supply the best ROI in the industry and improving the throughput the accuracies and everything on our machines.

Got it thanks, so much.

Thanks Scott.

Next question is from short stray from Jefferies. Please go ahead.

Please on mute as well.

Hi, Thanks for taking my question. The first one I had is on the two final system I guess that you have for packaging.

Could you help us understand how how maybe the.

<unk> revenue nearly flushed half 'twenty four English as a second half is there is it more first half weighted versus second half any carnegie in would be helpful.

So obviously.

The fact that obviously the orders that we see for 24. So we said most of the 240 somewhere went through Q3 and Q4 some needed a quick deliveries.

But when we look at next year, obviously, the oldest lean more to the first half naturally and the second half.

We have less.

Backlog, but we have an understanding from customers. This is where the pipeline comes into place where people stick with us that they need certain machines in the third quarter or the fourth quarter, some even ask for certain slot, but they have not issued yet.

So the moving the pipeline are converting from pipeline to orders.

Definitely this is what we will be doing in the next couple of months.

And maybe maybe zooming into that and they have they kill most HBM manufactures and ang.

It kept blade manufacturers have talked about doubling the capacity by 2020 for shell. So what do you kind of I don't want <unk> do you think they have already been achieved.

That tankage.

And I know the visibility maybe eliminate any color here.

Well you know what.

I understand and what we see we think that they are getting the tools that they need.

Hum.

I can tell you that if there will be a shortage and they will feel that they will need additional tools, we have enough capacity and enough inventory in place to manufacture more machines. So.

I think we will not be the bottleneck is this is this will be needed at least from our understanding what we're seeing at least for the I would say for 'twenty for at least the first half I think they have enough tools.

Okay.

And then Ah.

Another question I had right.

There are some notebook desktop Champs finished adding to huge jump that occupancy changed which I start ramping healing.

Help me understand what this FY <unk> means for you do you think it becomes <unk> HBM that youre seeing right now.

So that's definitely something that.

Will.

I will say we will enlarge.

Our markets.

And this is what I think will happen I think people are starting to use it.

The same architecture, but not at the <unk> I think this what will happen.

Some of the applications of gaming and so forth actually requires the hbm's, but many do not need.

And this is what I said in one of the questions before.

Personally we believe that as the ramp DHT EMS, they will get the cost structure, which is today I would say one of the limiting factors for the HBM cost structure will go down with the volume and then I don't want say that it will become standard but definitely it will become the I would say the preferred Arctic architecture for most.

The computers.

So thats something and you know in most cases the high end becomes the standard over time and I think this would happen in this case as well.

Thanks, Thank you for taking my question.

Thank you that that's just as a reminder to everybody you can raise your hands on the platform if you want to ask.

Our next question is going to be from Vivek Arya from Bank of America Securities.

Please go ahead.

Ask your question.

Yes.

Taking the question. This is <unk> on behalf of the bank.

<unk>.

A question on gross margins and I'm curious about your outlook into 'twenty four.

Not looking for a guide obviously, but what are some of the puts and takes and drivers of margins next year.

Would it return to our targeted 50 plus levels.

Yeah.

So yeah, we said basically that we took certain steps in the beginning of the year, we are seeing the fruits of it.

Starting to affect our gross margin. This is the second quarter or the third quarter actually narrow of improved gross margin.

We expect continued improvement.

Gradually the target is too.

Uh huh.

To reach 50% Mark.

The only given date here is that.

This is all subject to sales mix. So in some cases on some quarters, we have more favorable.

Mix.

And then other quarters. This is less favorable. So this is also an impact on the margin but overall.

Our target for next year is to be at.

At least 50%.

Yeah.

Got it.

And then could you talk about your order trends outside of AP.

Maybe some of that visibility and compound semi as you said.

Mobile phones on Automotives have also been encouraging because I'm curious about your outlook there. Thank you.

So <unk>.

In general our I would say advanced packaging, which includes the cheap, let's HBM true genius integration and so forth. This is I would say, it's about 60% can count up to 65%.

Then I would say the next sizable business is what we call the silicon carbide in the front end, we combined them together they would be they would come to anywhere 20% to 25%.

And then we have a few others.

<unk>.

Cmos image sensors have been low lately for the reason that mobile phones are down. So this is more or less couple of this business with mobile phones I assume that next year. They will be better this business can be anywhere between 5% to 10%.

And then there are RF Mems.

A lot of smaller businesses.

Jim.

That will account too.

2% to 100%.

If we look at the I would say the strongest driver no doubt today is on the advanced packaging part, which is the triplets and DH BMS and that's no doubt.

A growth driver that is going to be dominant for the next couple of years at least.

And then the silicon carbide and the front end definitely this market may be a little bit slower now, but definitely this is overall behavior is in the range of 20% annually definitely a market.

With the sizable opportunity.

Alright, thank you.

Thank you Vivek. Our next question is from L. A preload ski and a sponge Ella. Please go ahead and ask your question.

Hi, Hello, a question about the geographic pay everything is fleet for this quarter. Please.

Yes.

So Asia was.

Around 80% eight zero.

U S and Europe.

20%.

Okay. Thank you sure. Thank.

Alaska.

Our next question is from Shanghai Cohen of Licit capital Shanghai, You May go ahead and ask your question.

Hi, guys. Thank you for asking the question.

And going back to revert to your question about <unk>.

Some of the laptop or desktop application you spoke about <unk>, but I'm not sure.

<unk> in there.

Is lickable too.

Maybe maybe.

Trying to understand in Australia meant that <unk> would be adopted in.

In <unk> the advanced packaging.

Next will be adopted and dose and giving.

Given the magnitude.

Of laptops Cpus compared to let's say.

<unk>.

Wouldn't you expect.

A major lift from <unk>.

Vince packaging next year.

Im giving you another ramp up.

Some of the laptop CPU advanced packaging applications. So shallower, let's say that two questions and let me start with the first one the question that came before it.

Is that you see today notebooks and in general the Pcs starting to adopt to accumulate architecture.

Now down the road.

I will add also hbm's currently there are not that I think could be the only application the diagnosed in the in the PC in the PC Arena, that's using the.

<unk> and HBM is some gaming applications, but so but from the structure that's starting to use the structure of the triplets, which will eventually we'll probably start to use also hbm's as well as they need more and more power, but this is still down the road.

A.

Now regarding your second question no doubt there is an opportunity.

But the question is how fast it will grow and how fast <unk> will go to other applications other than AI.

This is still not clear.

Therefore definitely as we said this segment will be more than 30% of our business I mean this is a.

Signet significantly more than this year and.

Dramatically bigger than it was a year or two ago. So definitely. This is this is part of the big growth one of the reasons for the growth of contact over the last two years definitely that's an area that's going to increase and definitely an area that is has a very big potential for us but.

How fast it will grow further in what is going today.

Still hard to say.

Okay. Thanks.

Okay. Thank you sure.

That looks like it ends the Q&A session say before I turn the call back to Rusty.

Just to let everybody know that a recording of this call will be available from the same zoom link on <unk> website in the next couple of hours.

And Rafi. Please go ahead and make your closing statements.

Okay I would like to thank you all for your continued interest in our business.

I want to especially thing the employees and my management team.

The tremendous performance.

To our investors I. Thank you for your long term support.

I look forward to talking with you again next quarter. Thank.

Thank you and goodbye.

Thank you.