Q3 2023 Smith Micro Software Inc Earnings Call
Good day and welcome to the Smith Micro third quarter 2023 earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on your Touchtone phone and withdraw.
Your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Mr. Charles Messman, Vice President of Investor Relations and corporate development. Please go ahead Sir.
Thank you operator, and good afternoon, everyone. We appreciate you joining us today to discuss Smith micro Software's financial results for the third quarter ended September 32023.
By now you should have received a copy of our press release with the financial results.
Have a copy and would like one please visit the Investor Relations section of our website at www.
Scott Smith micro Dot com.
On today's call we have Bill Smith, our chairman of the Board, President and Chief Executive Officer, and Jim Kempton, Our Chief Financial Officer.
Please note that some of the information you'll hear during today's discussion consist of forward looking statements, including without limitation those regarding the company's future revenue and profitability.
Our plans and expectations.
New product development.
New and expanded market opportunities.
Future product deployment migration and or growth by new and existing customers.
Operating expenses and company cash reserves.
Forward looking statements involve risks and uncertainties, which could cause actual results or trends to differ materially.
Suppressed or implied by our forward looking statements.
For more information please refer to our risk factors included in our most recently filed Form 10-K and in our subsequent filings on Form 10-Q.
Smith micro assumes no obligation to update any forward looking statements, which speak to our management's beliefs and assumptions only as the date they are made.
I want to point out that in our forthcoming prepared remarks, we will refer to specific non-GAAP financial measures.
Please refer to our press release disseminated earlier today for a reconciliation of these non-GAAP financial measures.
With that said I'll turn the call over to Bill Bill.
Okay before I kick this off I need to let everybody know I missed.
The recovery mode recovering from our battle with Covid. So if I don't sound like myself, it's probably because they don't totally feel like myself, but all that said, let's kick this off.
Thanks, Charlie Good afternoon, and thank you for joining us today for our 2023 third quarter conference call I am excited to provide an update.
What I feel has been a very strong quarter for the company specifically are achieving both operational and financial targets that we previously outlined earlier this year.
From a financial perspective, we executed an aggressive plan to significantly lower expenses improved gross margins begin to grow our core revenues and achieved non-GAAP profitability, while generating cash flow from operations.
During the quarter, we delivered revenue of $11 million up from the previous quarter.
And the non-GAAP pretax profit of approximately $700000.
We also produced cash flow from operations of approximately $1.5 million.
I am pleased that we achieved these goals during the third quarter. This is a strong testament to our team's commitment and focus I also believe that these results really demonstrate the earnings power and potential of the business now that we're past the significant investment.
And migration activities that we've made over the last two plus years.
Speaking of those migration activities with At&t's launch of secure family on the same path platform. During the third quarter, we achieved an important milestone for the company.
I believe that we are now well positioned for significant growth at this customer.
This has been a tremendous undertakings for Smith micro and I'm proud of the efforts of our team.
This across the finish line.
I am very happy to have these activities behind us.
As it allows us to fully focus on the future.
And pivot towards future innovations to advance our core focus of helping to protect families.
Later in the call I will talk about how we are.
Re imaging the vision of digital family lifestyle for 'twenty, 'twenty, four and beyond to leverage AI and machine learning to better safeguard customers' safety and privacy as well as simplifying safe fast deployments to capture broader set.
Most of the market and new geographic opportunities.
But first let's turn the call over to Jim to discuss our financials in detail then I will return and elaborate more on this topic Jim.
Thanks, Bill and good afternoon, everyone.
Were all we were really pleased with results this quarter, because we had sequential revenue growth of 6% improved our gross margins by another 200 basis points over the second quarter.
Decreased our non-GAAP operating expenses sequentially by a half million dollars and produced a non-GAAP pretax profit of approximately 700000 for the.
Third quarter.
In addition, we produce cash flows from operations of approximately $1 5 million during the quarter. These.
These results align very well with the plan and expectations that we had outlined on our 2022 year end earnings call back in March.
Now, let me take a deeper dive into the results for the quarter.
For the third quarter, we posted revenue of $11 million compared to $11 7 million for the same quarter of 2022.
A decrease of approximately 6% as a result of a decline in revenues and family safety in Comm suite.
As I noted in my opening remarks, when compared to the second quarter of 2023 revenue grew by approximately 700000 or 6%.
Year to date revenues through September 30 of 2023 were 32.3 million versus $37 1 million during the third quarter of last year.
The $4 $8 million decrease is primarily due to declines in legacy safe <unk> found family safety revenue related to continued attrition of legacy sprint subscribers driven by T. Mobile's acquisition of sprint coupled with a decline in column suite revenues.
During the third quarter of 2023 family safety revenue decreased by approximately 500000 or 5% compared to the third quarter of the prior year.
Primarily as a result of the reduction of sprint safe <unk> found revenue.
Family safety revenues increased by approximately 400000 compared to the second quarter of 2023.
During the third quarter of 2023 comp suite revenue was 700000, which decreased by approximately 300000 compared to the third quarter of 2022.
This decrease is attributable to a decline in dish revenue coupled with a period over period decline in revenue generated from the remaining legacy sprint appointment.
Which generated no comm suite revenue in the third quarter of 2023.
Revenue from Comm suite was essentially flat sequentially compared to the second quarter of 2023.
He was spot revenue was approximately $1 1 million for the third quarter of 2023, which grew by approximately 800000 compared to the third quarter of prior year and increased by approximately 200000 compared to the second quarter of 2023.
The increase in beef spot revenues was primarily due to our new contract with the U S mobile virtual network, operator, which launched during the third quarter.
I did want to note that in September one of our abuse by customers notified us that they were terminating their views spot contract effective immediately as a result of their cost reduction initiatives.
Subsequent to the end of the third quarter. We were also informed by another significant piece by customer that they would not enter into a further extension of our existing view spot contract.
Distinct contract runs through the end of the year and then we will have a transition period of up to six months during which time, we will continue to deliver services to that customer.
In the fourth quarter of 2023, we are expecting consolidated revenues to decrease by 18% to 23% compared to the third quarter of 2023, when as anticipated the Verizon family safety revenues declined in the fourth quarter as the Peru post termination.
Transition period for that contract concludes.
For the third quarter of 2023 gross profit was $8 5 million compared to $8 1 million. During the same period of the prior year due to the period over period decline in cost of revenues.
Gross margin was 77% for the third quarter compared to 69% in the third quarter of 2022.
The gross profit of $8 5 million in the third quarter increased by approximately 800000 compared to the gross profit produced in the second quarter as a result of the increase in revenues coupled with an increase in gross margin of approximately 200 basis points.
In the fourth quarter of 2023 due to the decline in revenues, we expect gross margins to decrease by 4% to 5% from the gross margin of 77% reported for the third quarter of 2023.
For the year to date period ended September 32023, gross profit was $23 9 million compared to $26 2 million during the corresponding period last year.
Gross margin was 74% for the September 30th 2023 year to date period.
Yeah.
GAAP operating expenses for the third quarter of 2023 were $10 7 million, a decrease of $5 8 million or 35% compared to the third quarter of 2022.
Operating expenses for the year to date period ended September 32023 were $36 2 million compared to $50 million in the year to date period ended September 32022.
A decrease of $13 8 million or 28% compared to last year.
non-GAAP operating expenses for the third quarter of 2023 were $7 7 million compared to $12 8 million in the third quarter of 2022.
A decrease of approximately $5 1 million or 40%.
Sequentially non-GAAP operating expenses decreased by approximately 500000 or 6% from the second quarter of 2023.
We expect fourth quarter 2023, non-GAAP operating expenses to be flat to a slight increase of up to 3% compared to the third quarter of 2023.
non-GAAP operating expense for the year to date period through September 32023 was $27 3 million, a decrease of $12 4 million or 31% compared to last year.
I would also note that since the cost reduction efforts undertaken in March our non-GAAP operating expenses have declined by an aggregate $10.6 million in the third and second quarter of this year versus the third and second quarter of last year.
This really puts the magnitude of the actions that we've been able to execute over the past six months in perspective.
The GAAP net loss for the third quarter of 2023 was $5 1 million or eight cents loss per share compared to a GAAP net loss of $5 8 million or 10 cents loss per share in the third quarter of 2022.
I'm pleased to report that the non-GAAP net income for the third quarter of 2023 was approximately $600000 or once and income per share compared to a non-GAAP net loss of approximately $4 9 million or nine loss per share in the third quarter of 2022.
Within today's press release, we have provided a reconciliation of our non-GAAP metrics to the most comparable GAAP metric.
For the third quarter of 2023. The reconciliation includes adjustments for intangible asset amortization of $1 5 million.
Stock compensation expense of $1 3 million.
Note in stock offering amortization of $1 3 million.
Changes to derivatives and warrants of $1 5 million and depreciation of approximately $100000.
For the year to date period. The non-GAAP reconciliation includes adjustments for intangible asset amortization of $4 4 million stock compensation expense of $3 3 million.
And stock offering amortization of $5 4 million changes to derivatives and warrants of approximately $500000 depreciation of $500000 in.
In personnel severance and reorganization activity related costs of approximately $1 million.
Due to our cumulative net losses over the past few years, our GAAP tax expense is primarily due to certain state and foreign income taxes for.
For non-GAAP purposes, we utilize a zero percent tax rate for 2023 and 2022.
The resulting non-GAAP tax expense reflects the actual income taxes expense during each period.
From a balance sheet perspective, we reported $8 million of cash and cash equivalents as of September 30th 2023.
As I mentioned in my opening remarks during the quarter, we generated cash flows from operating activities of $1 5 million.
The principal balance remaining on the convertible notes was approximately $4 1 million as of the end of the quarter.
And I would also note that we had approximately 2 million warrants expired unexercised during the quarter.
This concludes my financial review now back to Bill.
Yeah.
Thanks, Jim.
But this quarter's call I'd like to change things up a little moving from a more traditional update to focus a bit more on some of the larger trends, we are seeing that affect the family safety market, our vision and how we see this market evolving.
First though I'd like to touch on AT&T as I know everyone would like an update on how that is progressing.
As you know secure family was launched at the end of August.
On the SaaS platform.
As with any launch of this magnitude we continue to address migration issues and customers adapting to change by delivering subsequent releases.
Overall, new subscribers have provided very positive feedback, which we believe really underscores the growth potential of this product.
We continue to partner with this customer to drive marketing activities to grow the subscribers on the platform.
Just as with prior calls I can't speak to the details around our customers' specific plans, but I can tell you that I remain very bullish on our prospects for substantial revenue growth related to this customer in the coming quarters.
Now pivoting to the macro family safety market. There are some trends that we are observing that are driving our expanded vision that I had.
Mentioned in my opening remarks.
As we all know we continue to see an escalation of conflict chaos violence all around the world.
The dangers are not only limited to the physical world, but also exists online in cases, like cyber bullying and exposure to harmful content and bad actors.
A recent Wall Street Journal article cited an increase in teams willingness to share their location, where their parents highlighting kids increasing concerns for their own protection and safety.
Another trend that we have observed is the proliferation of AI based machine learning models in consumer applications, which are being leveraged to simplify our lives.
Additionally, there is a growing demand for consolidated is super apps that cause by greater functionality within a single platform and unified application.
Gartner recently predicted that over the next five years more than half of the global population.
We'll be daily users of such Super apps.
Our research shows a similar demand for our Super App centered around family safety.
Lastly service providers continue to look for ways to provide greater value to subscribers, while reducing associated operating expenses. We believe that we are well position to capitalize on the market opportunities that these trends are creating.
You didn't aggregate.
These factors affirm our strategic focus on family safety and the peace of mind that we offer with our digital family lifestyle solutions.
And further align our solutions to address these trends impacting family safety.
We are excited about some upcoming enhancements to evolve the safe path platform.
In 2024.
We'll introduce safe as premium that delivers AI and machine learning driven experiences for users to address the growing risks associated with cyber bullying and other inappropriate content.
Social media safe TACE premium will monitor detect and alert parents about children's exposure to potentially harmful content, including cyber bullying self harm violence and profanity of popular social media platforms and is.
Cross multiple languages.
Taste test premium will also provide expanded physical and location safety features.
<unk> platform will monitor thousands of public safety data feeds to correlate public safety incidents with family members physical locations and provide necessary safety alerts.
We are calling this physical safety intelligence.
This will also increase consumers' use of our solution beyond parenting to protect extended family members.
And other loved ones safety as well.
Now, let's talk about safe tough global.
Sage past robust platform and poised as integration into operator's infrastructure have created a valuable differentiable and tightly connected solution for our customers.
For some tier two and tier three operators as well as N V N O's however.
They are more limited resources.
The fully integrated deployment, a safe path more challenging.
We faced similar obstacles and smaller fragmented markets like Europe, Latin America, and others globally.
While we believe the demand is there.
They may not have the I T resources and other staff to support the integration activities.
Ploy, our digital family lifestyle solutions.
This serve these customers and markets, we're introducing a new alternative global deployment model to allow operators to distribute safe path with a more rapid time to market and lower dependency on their I T resources.
We believe that safe TACE global will accelerate our penetration among tier two and tier three providers worldwide.
With particular focus on high RPM markets in Europe.
Safe past global should also reduce our investment in development resources related to safe path deployments in these markets while at the same time expediting our timeline to revenue with these customers.
In summary, the core pillars of our vision for family safety include physical safety, which includes location and driving safety digital safety, including on social media platforms and data safety, which is.
Safeguarding the individual's data privacy.
As to data privacy protecting user data is paramount.
It's important to end users and our customers and it's important to us.
Protecting consumers data privacy builds trust between service providers families and the technologies on which they rely.
S Smith micro we.
Honor the trust that has been placed in us when we deliver our family safety solutions, and we provide data securely and only for the purposes entrusted to us.
In terms of our business model, we continue to believe that M. N o's are the ideal distribution channel for safe that.
In addition to our long standing M. N O relationships. We also recognize that as the primary providers of consumers mobile and broadband connectivity and the nose, our best position to serve as trusted gatekeepers and curators of consumers Digi.
Little lives.
Daily subscribers remain among the most profitable type of consumer accounts for and then knows and therefore.
An integral piece of Msos consumer strategy.
Safe path offers a proven platform through which we can serve these customers needs well growing brand loyalty and our food.
With the evolution of our safe TACE platform through safe past premium and safe path Global we believe we are further innovating the digital family safety space to address the trends we're seeing.
This should position us to penetrate additional customers more rapidly, including in new geographic markets, while also driving additional value for our <unk> customers and their subscribers.
I can also say with great confidence that this is just the beginning.
We have a robust roadmap in place and we will continue to rollout new features and services to better serve the marketplace.
In closing.
Ahead to the remainder of the year and beyond I am both confident and very excited about the next chapter of our company.
Operator, please open the call for questions.
Yes, Sir we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys and to withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
And the first question will come from Scott Searle with Roth Capital. Please go ahead.
Hey, good afternoon, thanks for taking the questions Bill I hope you're feeling better.
Hey, maybe just to dive in real quickly on the on the guidance.
I want to understand the sequential decline that you're expecting in Verizon versus view spot.
How big are what's the magnitude of some of those few spot losses that we should expect sequentially I think in the case of Verizon who were supposed to phase out over the course of this quarter basically have zero revenue contribution once we got into March did that happen a little bit quicker could you help us just understand the mix there.
Yes, as far as the Verizon family safety contract.
We have been informed that the transition services periods going to end at the end of this month that being November and so we would expect no material revenue from the contract beyond that.
And in terms of the view spot contracts.
So one of the contracts that we had mentioned that.
That contract continues till the end of the year and then there is a transition period of up to 180 days.
The other contract.
Was terminated immediately so we will see no revenue from that contract during the fourth quarter and that's.
Several hundred thousand dollars like roughly.
So somewhere in that range so.
Gotcha, Okay. Thank you that's helpful.
Maybe the follow up I think there was an expectation you were building a pipeline within Europe and that was looking at.
Optimistic that you could secure a new contract in that region by the end of the year I was wondering what your thoughts were.
On that front and then just in general maybe to wrap up the AT&T ramp I know its kind of difficult to give any sort of detailed account, but maybe some broader based comments in terms of where you see that relationship as we get into 2020 for how youre thinking about defining success and one last one Jim.
The convert I want to make sure I understand what we ended the quarter with and what the expectation is to end the year interfere outstanding convert thanks.
Do you want to take that last one first Jim.
Sure sure I'll take the last one first.
At the end of the quarter, we had.
Approximately $4 1 million in principal remaining on the convert however, as required under the agreement we had pre funded approximately 1.3 million that was included in prepaid.
And we would expect the balance of the note to be zero by the end of the year, we expect.
12, 31 that completely go away at this point.
Yeah.
Alright, so, let's let's dive in into Europe, first because I'm, sorry, I cut you off.
No I apologize I, just just to follow up on the interest before moving to Europe does Jim is your expectation then basically there'll be no interest expense as we get into the March quarter.
Yeah at this point, we're assuming no interest expense in Q1.
Great. Thank you.
Sure.
Alright, let's dive into the into Europe, Yes, we remain very positive and very very bullish.
Our expectations remain in intact, if anything they give us hope for even further growth.
In 2024 so.
You'll have to wait until we can publicly state.
What is all about but I think you should assume that our business relationships are in great shape there.
As far as the 18th.
So just to clarify before I go ahead, so is Europe going to be safe.
<unk> global or is some of the existing relationships that are developing or percolating on that front can be more I'll call. It safe path classic.
If we can get safe path global completed it would be perfect for some of these deployments in Europe.
But on the other hand the business is here now so we can use the current.
Cause if that's what is necessary. So nonetheless, we have no.
You know targets in time as far as for Wednesday deployments will start.
The dates are set and we are busy right now.
Okay, let's move on to AT&T.
So turning to a AT&T that.
Okay. We started the migration to the end of August as I said in my prepared comments.
We've moved through.
This process. It is a big undertaking we knew it going into it we already done this once before when Lee.
<unk> migrated.
The circle code at T T mobile over to safety. This was more complex because the.
The ring code code base that we acquired from our boss was a much more complex product than the circle product was and as such it takes a little bit of time, we have worked their way through the customer I think is a very good very happy with the level of service and our execution.
And we continue to work our way to the end of it I would say the end of all migration activities will be done by the end of this this year after that 100% of the focus will then move to growing in marketing and moving.
Things forward for 'twenty four we believe that we have a number of initiatives that we've defined with the customer they are either approved or in the process of being final approvals and we are setting the date for the launches of each.
So we would say that.
We're very bullish about where we're going in.
<unk> 24 will do you know very very well for us.
Does that answer your question Scott.
Perfect. Thanks, Mel Hope you feel better.
Yeah. Thanks for taking my question really good to see the family safety business up 400000 sequentially.
I know you cant dive into too many details on it Bill and I Hope you feel better.
In coming days, but if you were up 400000 right in the first quarter I'm just curious your expectations that at least for atg that.
You would grow that business by more this quarter or if there's anything you could kind of highlight on for seasonality for <unk> and what that means for Kerry.
Carriers and promotions and what you guys may be doing on that front.
Well I guess I would say say this first off because we started at the end of August.
We're fairly well enter into Q3, and so you do see any significant growth in in Q3, just probably wasn't practical.
This was on my migrating existing customers over and as I've already stated that is a process that.
Is a lot of work and we're working our way through it and we see the end in sight.
However, when we start talking about the growth.
I'd love to say, we could get a lot of growth in Q4, but right now we're sitting in AR.
Out mid November and.
This is also you know holiday season, and you know carriers tend to focus 100% on selling mobile devices and bringing on new new subs.
I think the major focus for us will launch after the first of the year. So.
I think that's where you should be looking for some sort of growth to start to kick in.
Thanks, and then did you.
Frame anything sorry, if I missed it in terms of the magnitude of what you're expecting.
In terms of the revenue trajectory and for Q. When you factor in where you are today with <unk>, but with some Brian some revenue runoff from Verizon and <unk> spot.
Okay.
I'm not really following your question, 100% get can you ask it a different way yeah. I am just wondering you said that you thought revenues would be down in four Q.
Any color you can provide on how much revenue you think is going to be running off from Verizon and <unk> before it totally goes away in the beginning of next.
Next year as you previously talked about.
Your mute.
I think all we can say is that we expect any of.
The revenue associated with the Verizon contract.
Would be.
Ending.
By the end of this month so by the end of November so like we would see absolutely no revenue in December associated with that contract.
Yeah. Okay. So I guess, if you were doing like 4 million a quarter right, you'll get presumably like two thirds of that recognized if you were going through November of this year is that a ballpark.
Approximately right.
That's that's.
Yes, that's an approximation.
Great. Thanks, guys I appreciate it feel better bill.
Thank you. The next question will come from Jim Mcilveen with Dawson James. Please go ahead.
Yeah. Thanks.
Jim can you just repeat what you said the quarterly decline in revenue is youre expecting in Q4.
Would be 18% to 23%.
Great. Thank you and so that the two big components, while the big component is Verizon, but then you have the view spot also as comp suite relatively.
Relatively flat.
We have modeled a slight decline in column sleep.
Okay.
And I think.
Yeah.
I think Josh was asking this also so it sounds like.
November at Verizon is kind of trailing down to zero or do we get a cliff at the end of the month with Verizon.
You go to cliff.
Hit a cliff great. Okay. Thank you.
And can you talk about any.
Plans for further cost cutting in order to bring margins back up to.
What you'd like to get them to or is it.
Going to be a function of scaling with AT&T and eventually T mobile that get your margins to the proved back to prior levels.
It's clearly a function of scaling at AT&T and.
We would be.
Very happy to get some added help from T T mobile as well so.
I think theres, a theres reason to be hopeful for that.
<unk>.
You know the whole subject that we that we talked about the <unk>.
Importance of family safety in the World that we live in now.
Is so profound.
And you know there's I don't think there's any of us that are impacted by some of the horrific events that we see around us.
On a daily weekly monthly basis.
And for carriers, who really.
Want to attract the family subs.
There's not a better way than giving them some peace of mind by distributing a really top notch family safety application to get that mission done.
I believe that all carriers going forward as part of their corporate responsibility.
We will be looking to really invest and to grow this space.
We all need a little help right now.
And I think that's how I really view this.
And Jim if I could I could add one more piece.
Piece to your question.
One of the things that we are able to look at once Verizon goes away.
And some of this will actually fall off.
Not in the fourth quarter, but in the first quarter, but taking some of those RIN cost those legacy ring cost that we've had related to.
Horizon and be able to eliminate those so that's the other thing we will be able to take.
Take down cost of sales.
Associated with some of those legacy RIN cost is it the third party costs.
And any chance you can put.
A range on what those costs might be.
No I I feel like we.
We don't give guidance beyond.
You know one quarter.
Is it fair to think of those wringing costs ending shortly after <unk>.
November.
Yeah, they would they would fall off.
Yes, shortly after that but again some some may go into the.
The first quarter, but and quickly in the first quarter.
Yeah.
Got it.
Got it and my last one is.
Bill.
This.
Task global initiatives or a product that youre developing.
That's.
Is that taking incremental.
R&D dollars to do that or are you redeploying R&D dollars from other projects or can.
Can you help understand that the cost involved with developing and marketing that.
No.
Excuse me.
Yeah.
Go ahead, Jim answered it it's really a redeployment Jim.
So because now.
Bill had said in his prepared remarks now that we are beyond the AT&T migration.
We are able to.
Redeploy those.
Resources to things such as say past global.
Okay very good understood. Thank you and.
I hope you feel better soon bill.
Yeah, sorry, Jim on that.
The next question will come from come from Matthew Harrigan with benchmark. Please go ahead Sir.
Oh. Thank you I was going to ask you about Europe, but I guess, even more fundamentally given how important family safety is becoming what are you seeing clearly not everyone can say south would your horizon is doing its own thing.
What are you seeing in terms of companies doing things.
And internally the telecoms and also nascent competition on the software side, because there's clearly a huge demand there and if you don't plug it people either have to address it in house or they have to find another another provider because the tools like everybody else to do something in this environment.
Charlie you want to try that.
Yeah.
Yeah, I think that so I think what we're you know I think one of the reasons that I look at it in two ways.
I think what's happening with the carriers is really important because you're starting to see particularly in Europe to some laws that are coming down where they are required to do things. So I think there's this aspect of that.
But I also think that.
The reason that we've really started to roll out these new products. So that we can get to market faster. So I wouldn't say we're seeing.
More competition.
In our space.
Think what we're seeing is an increased awareness in the space if that helps does that make sense Matt.
Yeah.
It puts what's happening in the world obviously right.
People are they're happy to talk to you where they have to do something.
Because I think there's more to try to balance this as well.
Possible, but I hope I hope.
Thanks for the answers I appreciate it.
Okay.
This.
<unk> our question and answer session I would like to turn the conference back over to Mr. Charles Messman for any closing remarks. Please go ahead Sir.
Oh I want to thank you for joining us today, Thanks Bill for.
Powering through and we're really excited about where we're at right now and then for those that are going to be at the Roth Conference, We'd love to sit down and meet with you guys next week.
If you have further questions. Please feel free to give us a call and we'll look forward to talking soon thanks have a good one.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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Okay.
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