Q4 2023 Everspin Technologies Inc Earnings Call

Operator: Good afternoon, and welcome to the conference call to discuss Everspin Technology's fourth quarter and. At this time, all participants are on a listen-only basis. At the conclusion of today's conference call, instructions will be given for the question and answer session. As a reminder, this conference call is being recorded today, Wednesday, February 28th, 2020. I would now like to turn the call over to Cassidy Fuller, Investor Relations, for Everspin. Thank you, Operator, and good afternoon, everyone.

Good afternoon, and welcome to the conference call to discuss ever spent technologies fourth quarter and full year 'twenty to 'twenty three financial results. At this time, all participants are in listen only mode.

At the conclusion of today's conference call instructions will be given for the question and answer session.

As a reminder, this conference call is being recorded today Wednesday February 28 2024.

Now ill turn the conference over to Kathy Waller Investor relations for ever spent.

Thank you operator, and good afternoon, everyone.

Cassidy Fuller: Everspin released results for the fourth quarter and full year 2023 and did December 31, 2023, this afternoon after the market closed. I'm Cassidy Fuller, Investor Relations for Everspin, and with me on today's call are Sanjeev Aggarwal, President and Chief Executive Officer, and Anuj Aggarwal, Chief Financial Officer. Before we begin the call, I want to remind you that this conference call contains forward-looking statements regarding future events, including but not limited to the company's expectations for Everspin's future business, financial performance, and goals, customer and industry adoption of M-RAM technology, successful delivery to the market of products in Everspin's design pipeline, and executing on its business plan. These forward-looking statements are based on estimates, judgments, current trends, and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statement. We would encourage you to review the company's SEC filings, including the annual report on Form 10-K and other SEC filings made from time to time, in which the company may discuss risk factors associated with investing in Everspin.

It's been released results for the fourth quarter and full year 2023 ended December 31, 2023. This afternoon after the market close.

I'm, Kathy Fuller Investor relations for ever.

And with me on today's call are Sanjiv, Arca wall, President and Chief Executive Officer.

Huge argue wall Chief financial Officer.

Before we begin the call I want to remind you that this conference call contains forward looking statements regarding future events, including but not limited to the company's expectation for ever since.

Financial performance and goals.

Customer and industry adoption of <unk> technology.

I'll bring to the market and manufacturing products and ever since design pipeline.

Executing on it.

These forward looking statements are based on estimates judgments current trends and market conditions and involve risks and uncertainties may cause actual results to differ materially from those contained in our forward looking statements.

We would encourage you to review the company's SEC filings, including the annual report on Form 10-K, and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in <unk>.

Cassidy Fuller: All forward-looking statements are made as of the date of this call, and, except as required by law, the company undertakes no obligation to update or alter any forward-looking statements made on this call, whether as a result of new information, future events, or otherwise. The financial results discussed today reflect the company's preliminary results and are based on the information available as of the date hereof and are subject to further review by Everspin and its external auditor. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments, and other developments arising between now and the time that the financial results for this period are finalized.

All forward looking statements are made as of the date of this call and except as required by law. The company undertakes no obligation to update or alter any forward looking statements made on this call whether as a result of new information future events or otherwise.

Results discussed today reflect the company's preliminary estimates and are based on information available as of the date hereof and are subject to further review by ever spent in its external auditors.

The company's actual results may differ materially from these estimates as a result of the completion of our financial closing procedures final adjustments and other developments ranking between now and the time that the financial results for the period are finalized.

Cassidy Fuller: Additionally, the company's press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Also included in the company's press release are definitions and reconciliations of GAAP net income to adjusted EBITDA, which provide additional detail. A copy of the press release is posted on the Investor Relations section of Everspin's website at www.everspin.com. Now, I'd like to turn the call over to Everspin's President and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead.

Additionally, the company's press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms included in the company's press release or definitions and reconciliation of GAAP net income to adjusted EBITDA, which provide additional detail.

A copy of the press release is posted on the Investor Relations section of ever since website at www dot ever spend dotcom.

And now I'd like to turn the call over to ever since President and CEO and Chief Arguable Angie. Please go ahead.

Sanjeev Aggarwal: Thank you, Cassidy, and thanks, everyone, for joining us on the call today. We are pleased to report record annual revenue and profitability for 2023 with a strong gross margin, a solid balance sheet with no debt, and the highest cash balance in our company's history. During the fourth quarter, we delivered revenue of $16.7 million, above the high end of our guidance range of $15.4 million to $16.4 million. This led to a record full-year revenue of $63.8 million, which was up 6% year-over-year.

Yeah.

Thank you Cassidy antagonists to everyone for joining us on the call today.

We are pleased to report record annual revenue and profitability for 2023 with a strong gross margin and a solid balance sheet with no debt and the highest cash balance in our company's history.

During the fourth quarter, we delivered revenue of $16 7 million above the high end of our guidance range of $15 4 million to $16 4 million.

This led to a record full year revenue of $63 8 million, which was up 6% year over year.

Sanjeev Aggarwal: We delivered gross margin of 58.1% in the fourth quarter, up from 51.4% in Q4 2022. We recorded our 11th consecutive quarter of Gap Profitability, a strong focus for the company, and we ended the year with a cash balance of $36.9 million. On the product side, we had a total of 217 design wins in 2023, up 3% year over year. Our pipeline of new design wins for our M-RAM products remains strong and has exceeded our internal expectations. We expect our existing Toggle M-RAM product customers will qualify for our new industrial STD M-RAM products this year, while our newer M-RAM customers will qualify later in 2025.

We delivered gross margin of 58, 1% in the fourth quarter up from 51, 4% in Q4 2022.

We recorded our 11th quarter in a row of GAAP profitability, a strong focus for the company and we ended the year with a cash balance of $36 9 million.

On the product side, we had a total of 217 design wins in 2023 up 3% year over year.

Pipeline of new design wins for our MRM products remained strong and exceeded our internal expectations.

We expect our existing toggle and brand product customers will qualify our new industrial city in brand products. This year, but our newer MRM customers will qualify later in 2025.

Sanjeev Aggarwal: Additionally, our new industrial STTM ramp product line has continued to gain momentum in terms of design wins, showcasing the importance of ramping technology in the last few quarters. Looking ahead, we expect to begin translating these design wins into revenue in the second half of 2024. We remain committed to preserving Everspin's position as a leader in M-RAM technology, and this is reflected in our extensive intellectual property portfolio and the successful licensing of our technology. As we discussed on our last earnings call, we entered into two new Radiation Heart Program Arrangement Agreements. The first related to Toggle MRAM to develop reliability models for strategic radiation hardened Toggle MRAM applications.

Additionally, our new industrial SDM ran product line has continued to gain momentum in terms of design wins.

Okay. Thank the importance of ramping technology from the last few quarters.

Looking ahead, we expect to begin translating these design wins into revenue in the second half of 'twenty 'twenty four.

We remain committed to preserving <unk> position as a leader in our brand technology and this is reflected in our extensive intellectual property portfolio and the successful licensing of our technologies.

As we discussed on our last earnings call, we entered into two new radiation hard program agreements.

The first related to travel and Ram to develop reliability models for strategic radiation hardened travel MRM applications.

Sanjeev Aggarwal: The second agreement was to license our STTM-RAM technology to build a strategic radiation-hardened FPGA. This second project remains ongoing into the first quarter of this year. As the project progresses, we anticipate additional government funding to help support the build of this FPGA device. We anticipate this project to continue progressing this year. We also want to provide an update on our existing ad hoc 64 megabit STTM RAM project that we started in early 2022. We expect to receive additional silicon from our supplier, which we will use to create a demonstration of working silicon.

The second agreement was to license our <unk> technology.

Strategic radiation hardened FPGA.

The second project remains ongoing in the first quarter of this year as the project progresses, we anticipate additional government funding to help support the build of this FPGA device.

We anticipate this project to continue progressing this year.

We also wanted to provide an update on our existing AD hoc 64, megabit STM Ram project that we started in early 2022.

We expect to receive additional silicon from our supplier, which we will use to create a demonstration of working silicon.

Sanjeev Aggarwal: This will be a higher-margin, lower-volume product, and we expect to recognize revenue from this project throughout 2024. As we mentioned on a previous call, a new key focus for us is distributed MRAM or dMRAM. As discussed, we believe our dMRAM approach is revolutionary and will give us an edge on energy efficiency and scaling as we deploy the solution in FPGAs and AI inference engines.

This will be a higher margin lower volume product and we expect to recognize revenue from this project throughout 2024.

As we mentioned on our previous call our new key focus for US is distributed M. Ram R. D. M. Ram as discussed we believe our DM Ram approach is revolutionary and will give us an edge on energy efficiency and scaling as we deploy the solution and FPGA is an AI inference engines.

Sanjeev Aggarwal: We look forward to updating you on our progress here over the coming quarters. Turning to our outlook for 2024, we continue to have good visibility and a strong pipeline driven by a solid product backlog. We expect the first half of the year to be more muted given economic weakness in China and softness in the industrial and automotive sectors, in part due to inventory digestion and rebalancing. However, we expect a ramp in the second half of 2024 as we begin to recognize revenue from our design wins for our STTM ramp products that we have discussed over the past two years. Moreover, we expect to see continued growth in our toggle MRAM products, as well as additional design. I will now turn it over to our CFO, Anuj Aggarwal, who will take you through our fourth quarter financials and first quarter 2024 guidance. All right.

We look forward to updating you on our progress here over the coming quarters.

Turning to our outlook for 2024, we continue to have good visibility and a strong pipeline driven by solid product backlog.

We expect the first half of the year to be more muted given economic weakness in China and softness in industrial and automotive sectors in part due to inventory digestion and rebalance.

However, we expect a ramp in the second half of 2024 as we begin to recognize revenue from our design wins for our <unk> products that we have discussed over the past two years.

Moreover, we expect to see continued growth in our travel and brand products as well as additional design wins.

I will now turn it over to our CFO <unk>, who.

Who will take you through our fourth quarter financials, and first quarter 2020 for guidance.

Anuj Aggarwal: Thank you, Sanjeev, and good afternoon, everyone. This is part of our fourth quarter and full year 2023 financial results. We are pleased to announce that we have achieved record annual revenue of $63.8 million and record profitability with net income of $9.1 million in 2021. Q4 2023 also marks our 11th consecutive quarter of positive netting. In addition, we generated positive cash flow from operations, resulting in the highest cash balance in our company's history of $36.9 million. We delivered strong quarterly results above the high end of our guidance range of $15.4 to $16.4 million, with revenue of $16.7 million and diluted earnings per share of $0.09. We also recorded positive cash flow from operations of $2 million. Our revenue outperformance was preliminarily driven by the success we had seen in our rad hard day, which has continued to progress well from a technology standpoint. MRAM product sales in the fourth quarter, which includes both Toggle and SCT MRAM revenue, were $12.4 million, compared to $14.6 million in Q4 2022.

Rich.

Thank you Sanjeev and good afternoon, everyone as part of our fourth quarter and full year 2023 financial results. We are pleased to announce that we have achieved record annual revenue of $63 8 million and record profitability with net income of $9 1 million in 2023.

Q4, 2023 also marks our 11th consecutive quarter of positive net income. In addition, we generated positive cash flow from operations, resulting in the highest cash balance of our company's history at $36 9 million.

We delivered strong quarterly results above the high end of our guidance range of $15 four to $16 4 million with revenue of $16 7 million and diluted earnings per share of <unk>.

We also recorded positive cash flow from operations of $2 million.

Our revenue outperformance was preliminarily driven by the success, we had seen in our Rad hard deals, which have continued to progress well from a technology standpoint.

MRM product sales in the fourth quarter, which includes both toggle and <unk> <unk> revenue by $12 4 million compared to $14 6 million in Q4 of 2022 licensing royalty as patents and other revenue in the fourth quarter increased to $4 3 million compared to $1 1 million in Q4.

Anuj Aggarwal: Licensing, royalties, patents, and other revenue in the fourth quarter increased to $4.3 million, compared to $1.1 million in Q4 2022. Shipments to suppliers for our high-density SDT product for data center applications represented 17.1% of revenue in the fourth quarter versus 4.7% of revenue in Q4 2022. Turning to gross margin, our GAAP gross margin for the fourth quarter of 2023 was 58.1%, up from 51.4% in Q4 2022. GAAP gross margin for 2023 was 58.4%, an increase from 56.6% in 2022. The year-over-year increase in gross margin is a result of being able to offset increased pricing from suppliers with increased yields on our toggle products and increased licensing revenue to offset the decrease in product sales. Gap operating expenses for the fourth quarter of 2023 were $8.1 million, compared to $7.5 million in the fourth quarter of 2022.

2022 shipments to suppliers for high density STD product for data center applications represented 17, 1% of revenue in the fourth quarter versus four 7% of revenue in Q4 of 2022.

Turning to gross margin our GAAP gross margin for the fourth quarter of 2023 was 58, 1% up from 51, 4% in Q4 of 2022 GAAP gross margin for 2023 was 58, 4% an increase from 56, 6% in 2020.

Two the year over year increase in gross margin as a result of being able to offset increased pricing from suppliers with increased yields on our toggle products and increased licensing revenue to offset the decrease in product sales GAAP operating expenses for the fourth quarter of 2023 were $8 1 million compared to seven.

$5 million in the fourth quarter 2022.

Anuj Aggarwal: The increase in operating expenses in the quarter compared to Q4 2022 was primarily driven by the development and enhancement of our new XPI family of SDT-MRAM products and increased professional service costs. Fourth quarter 2023 net income was $2 million, or $0.09 per diluted share based on 21.7 million weighted average, fully diluted shares outstanding. This compares to net income of 0.6 million, or three cents per diluted share, in the fourth quarter of 2020. Fully diluted EPS of 9 cents was above the high end of our guidance range, reflecting our strategic operational discipline and ability to drive profitability in the face of macroeconomic uncertainty. Fully diluted EPS for 2023 was $0.42, compared to $0.29 in 2012. For Q4 2023, adjusted EBITDA was $3.6 million, compared to $2.1 million in Q4 2022. The adjusted dividend for 2023 was $15.3 million, which includes the employee retention credit of $2 million, compared to $11.8 million in 2022.

The increase in operating expenses in the quarter compared to Q4, 2022 was primarily driven by the development and enhancement of our Nu X pie family of STC MRM products and increased professional service costs fourth quarter 2023, net income was $2 million or <unk> <unk> per diluted.

Share based on $21 7 million weighted average.

Fully diluted shares outstanding. This compares to net income of <unk> 6 million or <unk> <unk> per diluted share in the fourth quarter of 2022.

Fully diluted EPS of <unk> <unk> was above the high end of our guidance range, reflecting our strategic operational discipline and ability to drive profitability in the face of macroeconomic uncertainties fully diluted EPS for 2023 was 42 <unk>.

Compared to 29 and 2022 for.

For Q4, 2023, adjusted EBITDA was $3 6 million compared to $2 1 million in Q4 of 2022.

Adjusted EBITDA for 2023 was $15 3 million, which includes the employee retention credit of $2 million compared to $11 8 million in 2022.

Anuj Aggarwal: We ended the quarter with cash and cash equivalents of $36.9 million, up from $34.9 million at the end of the prior quarter. The increase in cash quarter over quarter is a result of Everspin's continued focus on strong cash management while growing cash flow from operations as the company continues to operate debt-free. Cash flow from operations was healthy at $2 million for the fourth quarter.

We ended the quarter with cash and cash equivalents of $36 9 million.

From $34 9 million at the end of the prior quarter the increase in cash quarter over quarter. As a result of <unk> continued focus on strong cash management, while growing cash flow from operations as the company continues to operate debt free cash flow from operations was healthy at $2 million for the fourth quarter.

Anuj Aggarwal: Over the full year, cash flow from operations was $13.1 million, up from $9.5 million in 2022. Turning to guidance, we anticipate revenue to ramp as we move through the year, with the first half a bit lower than our traditional seasonality given ongoing economic weakness in China and softness in the industrial and automotive sectors. We expect growth to accelerate in the second half of 2024 as we begin to recognize revenue from design wins for our SDT and Toggle MRAM products. Taking these factors into consideration, we expect Q1 total revenue in the range of $13.5 million to $14.5 million and gap net income per diluted share to be between break-even and $5.6 million. In summary, we are pleased to report another solid year of growth with record annual revenue, profitability, and earnings per share. Our financial position remains strong, boasting a debt-free balance sheet and the highest cash balance in our company's history.

For the full year cash flow from operations was $13 1 million up from $9 5 million in 2022.

Turning to guidance, we anticipate revenue to ramp as we move through the year, but the first half a bit lower than our traditional.

Seasonality given ongoing economic weakness in China, and softness in the industrial and automotive sectors, we expect growth to accelerate in the second half of 2024 as we begin to recognize revenue from design wins.

Our SDP and toggle MRM products, taking these factors into consideration. We expect Q1 total revenue in the range of $13 5 million to $14 5 million and GAAP net income per diluted share to be between breakeven and five.

In summary, we are pleased to report another solid year of growth with record annual revenue profitability and earnings per share our financial position remains strong posting a debt free balance sheet and the highest cash balance in company's history, while we expect to experience a slower start to the year, we expect a.

Anuj Aggarwal: While we expect to experience a slower start to the year, we expect a solid second half of 2024. We also expect to see additional growth in our toggle MRAM and DRAM products, and we expect to begin recognizing revenue for our STT MRAM products. Thank you for joining us today.

Solid second half of 2024, we also expect to see additional growth in our toggle emeril and DRAM products and we expect to begin recognizing revenue for <unk> and Ram products. Thank you for joining US today operator, you may now open the line for questions.

Operator: Operator, you may now open the line for questions. Thank you. Ladies and gentlemen, if you'd like to ask something..., star.

Thank you, ladies and gentlemen, I'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star one wondering your telephone we do ask that you. Please limit yourself to two questions and then feel free to rejoin the queue one moment for our first question.

Operator: Again, after... One moment, please. Our first question comes from the line of Quinn Bolton of Needham and Company. Your line is open. Hey, this is Neil Young for Quinn Bolton.

Okay.

Our first question comes from the line of Quinn Bolton of Needham <unk> Company. Your line is open.

Hey, this is Neil young on for Quinn Bolton, Thanks for taking my questions.

Neil Young: Thanks for taking my question. I first wanted to ask about the gross margin number in the fourth quarter. You gave some color on the year-over-year change, but I was hoping you could share what drove the sequential decline in gross margin, considering that the licensing, royalties, patents, and other revenue appeared to be strong. Yeah, hi there, it's Anuj Aggarwal.

I first wanted to ask about the gross margin number in the fourth quarter. So you gave some color on the year over year change, but I was hoping you could share what drove the sequential decline in gross margin considering that the licensing royalties and other revenue appeared to be strong.

Yes, hi, there its owner Jaguar, yes, so the gross margin.

Anuj Aggarwal: Yeah, so the gross margin has performed really well over the last year, right? So we've been saying we'd be in the mid-50s in gross margin. I think what you're seeing is as the yields kind of tapered off and we had a slightly lower licensing revenue compared to the prior quarter, you see a decline in the gross margin. But it's still above our internal model.

[noise] has performed really well over last year right. So we've been saying we'd be mid fifties and gross margin I think what youre seeing is as the yields kind of tapered off and we had.

Slightly lower.

Licensing.

Revenue compared to the prior quarter, you see a decline in the gross margin, but it's still above our internal model and expectations.

Anuj Aggarwal: Okay, thanks for that. And then my follow-up question is, last quarter, you talked about some of the weaknesses in industrial automation in China. It sounds like that continued in the fourth quarter, given the quarter over quarter decline in product revenues. So did you see that weakness spread across other geographical areas or end markets? And then regarding the first quarter outlook, I was hoping you could share what you're thinking across the two segments, products and licensing, and then maybe within products, what you're thinking separately for toggle and SCTM ramp. Sure, absolutely. So there are a couple of questions. Let me try to go one by one.

Okay. Thanks for that and then my follow up is last quarter, you talked about some of the weakness in industrial automation in China. It sounds like that continued in the fourth quarter, given the quarter over quarter decline in product revenues.

So did you see that weakness spread across other geographical areas or end markets and then regarding our first quarter outlook was hoping you could share what youre thinking across the two segments products and licensing and then.

Maybe within products Winter stadium separately for toggle and STM ramp thanks.

Sure absolutely. So it's a couple of questions. So let me let me try to go one by one so I think from.

Anuj Aggarwal: So I think from a backlog perspective, right as you look at the backlog, you know you're seeing challenges within the industrial and automotive space, and to your question, in terms of geography, APAC, in general, has shown some weakness, so Japan and China have had some challenges there. So we saw that starting in Q4, and we see that in Q1 as well. And then from a guidance perspective, sorry, what was it? Part of the question forgot to ask. Yeah, so I was wondering if you could share what you're thinking across the two segments between product and licensing and then, you know, maybe within the product segment, what you're thinking separately for the two buckets. Yeah, absolutely.

Backlog perspective, right as you look at as you look at the backlog.

Youre seeing challenges within the industrial and automotive space and to your question in terms of geographies.

Pack in general has shown some weakness so Japan and China, there's been some challenges there. So we saw that starting in Q4, and we see that in Q1 as well.

And then from a from a guidance perspective, sorry, what was the second part of the question for guidance.

Yes. So I was wondering if you could share what you're thinking.

Crop.

Segments between product and licensing and maybe within the products segment, what youre thinking.

Currently for the two buckets. Thanks.

Anuj Aggarwal: So for revenue, we're expecting $13.5 to $14.5 million. We expect KeyOne to be strong again from a licensing and royalty perspective, with some decline in product revenue, and so that's why we're guiding to that number. It's again mainly because of the APAC challenges and the challenges in China. We're also seeing customers looking at bleeding down inventory and being concerned with their inventory. And so because of that, we're conservatively setting guidance at those numbers. So just to add to that, Neil, I think we are still, you know, optimistic about the second half of this year, and we are really focusing on a few things. One is, you know, this low-density STD mRAM product that we brought out a couple of years ago. We are seeing good traction in the industry, even in Asia-Pac, so we expect that we'll be able to get some traction in the second half of 2024. And as you know, with all the supply chain issues that everybody had last year and the year before, Everspin actually managed the supply chain very well.

Yeah, absolutely. So so for revenue, we're expecting 13 five to $14 5 million, we expect Q1 to be strong again from a licensing and royalty perspective, we do see.

Some decline in product revenue and so that's why we're guiding to that number.

Mainly because of the APAC challenges and.

The challenges in China, we're also seeing customers.

Looking at bleeding down inventory and concerned with their inventory and so because of that we're conservatively setting guidance at those numbers.

So just to add to that deal I think.

We are still.

Optimistic on the second half of this year and we are really focusing on a few things one is the.

It's low density yesterday I'm around product that we brought out a couple of years, we are seeing good traction in the industry even in Asia Pac.

That will be able to get some traction in the second half of 2024 and as you know with all the supply chain issue that everybody had.

Last year and the year before.

And actually manage that supply chain, very well and because of that we have some some goodwill with our customers. So without all the customers that we had actually going back and talking to our customers to see if we can actually present date, some design wins actually win sockets from some of our customers and those discussions are going well and giving you color on.

Anuj Aggarwal: And because of that, we have some – gained some goodwill with our customers. So with our toggle customers, we are actually going back and talking to our customers to see if we can actually precipitate some design wins, actually win sockets from some of our customers. And those discussions are going well. And giving you color on the Red Heart deals, basically, we do expect the project that we are working on for the FPGA to continue throughout the year. And so we will see some revenue from licensing Red Heart from there. And then also, our initial project, the 64-megabit STD mRAM, will continue through this year, and we will recognize revenue along the way.

The deal basically we do expect the project that we're working on for the FPGA to continue throughout the year and so you will see some we expect to see some licensing.

Revenue from there and then also our initial project.

Ah 64, megabit SDM ramp will continue through this year and we were able to recognize.

Revenue along the way.

Anuj Aggarwal: Great, thanks. Thank you. Again, ladies and gentlemen, if you'd like to ask a question, please press star 1-1 on your telephone. Again, to ask a question, are you?

Alright. Thanks.

Sure.

Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star 111 moment. Please.

Anuj Aggarwal: I'm showing no further questions at this time. I would like to turn the call back over to Anuj Aggarwal. Okay, with that, we conclude today's call. Thank you all for joining us and we look forward to updating you on our progress next quarter.

I'm showing no further questions at this time I'd like to turn the call back over to <unk> Agarwal for any closing remarks.

Okay with that we conclude today's call. Thank you all for joining us and we look forward to updating you on our progress next quarter.

Operator: Operator, you may now... Thank you. Thank you. Ladies and gentlemen, this does conclude today's conference. You may now disconnect. Have a great day. ? Sound Hodori ??? ??? ????? ???

Operator, you may now disconnect. The call. Thank you. Thank you ladies and gentlemen. This does conclude today's conference. Thank you all participating you may now disconnect have a great day.

Okay.

[music].