Q1 2024 Silicom Ltd Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the Silicon first quarter 2024 results Conference call. All participants are at present in listen only mode. Following management's formal presentation instructions will be given for the question and answer session.
As a reminder, this conference is being recorded you should have all received by now the Companys press release, if you have not received it please contact silicones Investor relations team at U K Global Investor Relations at one to one to 3788040 or view it in the news section of the company's website www.
Got silicon that's USA dot com.
I would now like to hand over the call to Mr. Kenny Green of Ek Global Investor Relations. Mr. Green would you like to begin please.
Kenny Green: Thank you operator, I would like to welcome all of you to Silicon first quarter 2024 results conference call.
Kenny Green: Before we start I would like to draw your attention to the following safe Harbor statement.
Kenny Green: This conference call contains forward looking statements such statements may include but are not limited to anticipated future financial operating results and telecoms outlook and prospects. These statements are based on management's current beliefs expectations and assumptions, which may be affected by subsequent business political environmental regulatory equivalence.
Kenny Green: <unk> and other conditions and are subject to known and unknown risks and uncertainties and other factors many of which are outside of silicones control.
Kenny Green: These may cause actual results to differ materially from expectations expressed or implied in the forward looking statements, which include but are not limited to telecoms, increasing dependence for a substantial amount of revenue growth on a limited number of customers the speed and extent to which should it come solutions are adopted by relevant market.
Kenny Green: <unk> been commercializing and marketing of <unk> products and services, maintaining and protecting brand recognition protection of intellectual property competition disruptions to manufacturing sales and marketing development and customer support activities.
Kenny Green: Impact award in Israel and in the Ukraine.
Kenny Green: Rising inflation rising interest rates volatile exchange rates as well as any continuing on you effects, resulting from the COVID-19, pandemic and the global economic uncertainty, which may impact customer demand through the exercising greater caution and selectivity of short term investment plan.
Kenny Green: Factors noted are not exhaustive.
Kenny Green: Further information about the company's businesses, including information about factors that could materially affect silicones results of operations and financial condition.
Kenny Green: Just in the annual report filed on form 20-F, and other documents filed by the company that may be subsequently filed by the company from time to time in the Securities and Exchange Commission.
Kenny Green: Therefore, there can be no assurance that actual or future results will not differ significantly from anticipated results consequences.
Kenny Green: <unk> are cautioned not to rely on these forward looking statements telecom does not undertake to update any forward looking statements as a result of new information or future events or developments, except as may be required by law.
Kenny Green: In addition, following the Companys disclosure of certain non-GAAP financial measures in todays earnings release, such non-GAAP financial measures will be discussed during this call such non-GAAP measures are used by management to make strategic decisions forecast future results and evaluate the companys current performance.
Kenny Green: <unk> believes the presentation of these non-GAAP financial measures are useful to investors understanding and assessment of the company's ongoing cooperation and prospects for the future.
Kenny Green: Unless otherwise stated it should be assumed that financials discussed in this conference call will be on a non-GAAP basis non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing financial conditions and operating results. These measures are not in accordance with or a substitute for GAAP.
Kenny Green: A full reconciliation of non-GAAP to GAAP financial measures are included in today's earnings press release, which you can find on silicones website.
Kenny Green: With us on the line today, I'm still Iran, Eitan, <unk>, President and CEO and Mr. Iran, Gilad, CFO and Iran will begin with an overview of the results followed by Ron who will provide the analysis of the financials. We'll then turn the call over to question and answer session and with that I would like to hand, the call over to Iraq and Iran. Please go ahead.
Speaker Change: Thank you Kenny.
Iran: Welcome everyone to our financial results conference call for the first quarter of 'twenty 'twenty four is.
Iran: We move through 2024 as many of you know we are currently in the midst of significant headwinds all coming together at the same time and strongly impacting our revenues, while I discuss them in detail last quarter, the factors or effect affecting us all.
Iran: Number one excess customer inventory of our products, which were previously built up doing post COVID-19 and component shortages era, when the supply chains where tight.
Iran: Number two a microeconomic at an industry slowdown generally delaying it infrastructure investments and ultimately slowing down or pausing customer orders of our products and number three in some cases customer specific factors, causing them to delay or not to make new purchases under existing design wins.
Iran: In light of those factors as we explained last quarter, we launched a five year strategic plan with the goal is to generate significant value for our shareholders, even under the new market reality of the day, our five year strategic plans aimed at returning silicon to graduate and steady topline and EPS growth with the financial long term objective to increase our earnings per share to above.
Iran: $3 in 2028.
Iran: A key element is to use our $80 million plus cash position to increase shareholder value through an aggressive share buyback, which would reduce share count by leveraging our strong balance to ensure our long term growth potential remains intact. Our plan calls for purchasing one 6 million shares during 'twenty 'twenty, four and 'twenty 'twenty five.
Iran: Which represented approximately a quarter of our full share count as of when we announced it in the first quarter, we repurchased approximately 250000 shares representing a return to shareholders at a cost of 4.1 billion. The board of directors has approved a new repurchase plan for the coming year.
Iran: And our aggressive buyback will continue.
Iran: I would like to stress that our very strong balance sheet and cash position allows us to continue business investment at an aggregate face without compromising our future.
Iran: Sports are broad and deep pipeline as well as allows us to continue with our core R&D effort, while not being significantly significantly impacted by a loss of a few million dollars over the upcoming transition period at.
Iran: At the same time, an important factor in our strategic plan was to stabilize the opex at the level that on the one hand maintains continuous support and educate investment into our main growth drivers while on the other hand conservatively balances our expenses footprint with today's expected revenue level under the current market environment.
Iran: We continue to strongly believe in the long term potential of our main product lines, namely server adapters and edge systems and this includes investments in the development of two strategic new product families with significant revenue potential that we believe will increase our future success and further step in our strategic plan was to shift focus for sales and marketing efforts to our.
Iran: Broader range of potential design wins, including smaller ones, which have the potential to ramp up quicker and then ultimately bring greater diversification to our revenues. We therefore made changes to our salespeople compensation package to create the right incentives. We are already seeing the initial momentum momentum with small to medium design wins, and we see a broader pipelines of.
Iran: Future potential design wins.
Iran: In terms of our financial performance for the first quarter, we reported revenue of $14 $4 million within our expected guidance range, which we shared last quarter on the bottom line, we reported a net loss of $2 4 million.
Iran: Despite this loss demonstrating the strength and quality of our working capital we generated an impressive positive operating cash flow of over $13 million contributing to a very strong net cash position of over $80 million, which I discussed earlier I want to stress that our current working capital and marketable securities as of the.
Iran: The end of Q1 is $133 million with a very high quality of inventory amounting to $46 million accounts receivable net of accounts payables of $7 million as well as the $80 million in cash all of this represents about $21 per share.
Iran: Looking towards the near term, we expect that the second quarter 'twenty to 'twenty four revenues will be between $15 million to $17 million. We continue to expect that our 2024 revenues will be at about $70 million impacted mainly by the headwinds in issues I mentioned earlier, we believe that the excess customer inventory and global economy headwinds would ease.
Iran: As we move forward throughout 2024, and second half revenues will be higher than those of the first half looking further out towards 2025 and beyond we are modeling an approximate 20% compound average annual growth from 'twenty to 'twenty four baseline over the course of the five year of the five years plan we.
Iran: Expect that this growth will come from the ramp up of already achieved SD Wan and subsea design wins additional edge system sales, two leading telcos and service providers and from increased revenues related to a large roster of design wins and pipeline or potential design wins for server adapters and edge products with leading networking security and service and service providers.
Speaker Change: I believe.
Iran: This growth rate does not consider potential significant individual upsides that we may experience. Some very large projects like the ones. We had in the past, which may provide additional incremental growth for our business to summarize as you know our environment is must be much more challenging going into 'twenty 'twenty 'twenty four for all players in the industry I want to stress that.
Iran: Silicon is very well positioned as a key player in the industry with over $80 million on the balance sheet, a deep pipeline and a design win roster I'm confident that our long term growth story remains intact, and we will achieve renewed growth starting from 'twenty to 'twenty five and beyond.
Iran: We have a strong strategic plan in place, which focuses on ultimately bring value to our shareholders not just by returning to revenue growth, reducing expenses and growing profitability, but also by enhancing it through an aggressive buyback and a strong reduction in share count over two years, we have a very dedicated and loyal management team with a lot of experience in the hardware.
Iran: Business most members of our management management team and board of directors have been with us for many years and have already navigated our business to success through many market prices and transformation into it in 2000 2008 and 2017 just to name a few I strongly believe that the target that I outlined are attainable, but I see it.
Iran: I'm optimistic in our ability to successfully execute on this five year plan and bring earnings per share in excess of $3 by 2028 with that I will now hand over the call to Iran. For a detailed review of the quarter results, Iran. Please go ahead.
Iran: Thank you Ron and good day to everyone revs.
Iran: Revenues for the first quarter of 'twenty 'twenty four were $14 4 million downloads and decline from revenues of $37 $2 million as reported in the first quarter of last year.
Iran: The geographical revenue breakdown over the last 12 months was as follows.
Iran: So America <unk>.
Iran: 82%, Europe, and Israel, 16% far east and rest of the world 3%.
Iran: During the last 12 months, we had to over 10% customers and our top three customers together accounted for about 40% of our revenues.
Iran: I will be presenting the rest of the financial results on a non-GAAP basis, which excludes the noncash compensation expenses and risk.
Iran: <unk> of options and our Skus granted to directors officers and employees acquisition related adjustments as well as lease liabilities financial income.
Iran: For the full reconciliation from GAAP to non-GAAP numbers. Please refer to the press release, we issued earlier today.
Iran: Yes.
Iran: Gross profit for the first quarter of 2024 was $4 $1 million.
Iran: Renting a gross margin of 28, 5% and compared to a gross profit of $11 $9 million or gross margin of 32% in the first quarter of 'twenty to 'twenty three.
Iran: As discussed last quarter for the near term our gross margin is expected to be at the lower end of our 27% to 32% expected range and as our revenues grow from current levels over the longer over the longer term it will increase.
Iran: Towards the upper end.
Iran: Operating expenses in the first quarter of 2024 were $6 $8 million compared to $7 $1 million reported in the first quarter of 2023, we believe that this level represents our expected quality.
Iran: Operating expenses during the rest of the year.
Iran: Operating loss for the first quarter of 2024 was $2 $7 million compared to operating income of $4 $8 million as reported in the first quarter of 'twenty two 'twenty three.
Iran: Net loss for the quarter was $2 $4 million compared to net income of $4 $2 million in the first quarter of 2023.
Iran: Loss per share in the quarter was 38 since this is compared with diluted earnings per share was <unk> 61.
Iran: Reported in the first quarter of last year.
Iran: Now turning to the balance sheet as of March March 31st.
Iran: 2024, the company's cash cash equivalents and marketable securities totaled $87 million with no debt. This represents an increase of $9 $2 million just in the first quarter as a result of a positive operational cash flow.
Iran: Of $13 $3 million net.
Iran: Net of share repurchases cost of $4 $1 million.
Iran: During the quarter silicon repurchased approximately 250000 shares.
Iran: Our current share repurchase plan as mentioned by live alone based on our strong balance sheet and improved cash flows.
Iran: Position, we intend to continue repurchasing our shares at a full pace.
Speaker Change: That ends my summary, I would like to hand back over to the operator for the question and answer session.
Iran: Operator.
Operator: Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment kind of lift the handset before pressing the numbers questions will be pulled in the order. They are a seat please.
Iran: Standby, while we poll for your questions.
Iran: The first question is from Alex Henderson of Needham and company. Please go ahead.
Alexander Henderson: Thanks, So a couple of questions just on the conditions in the field.
Alexander Henderson: To start with.
Alexander Henderson: Can you talk to what you think.
Alexander Henderson: The customer inventories looked like in the field how much maybe they were brought down by and how long it will take to get back to a normalized condition within.
Alexander Henderson: The field inventories.
Speaker Change: Yeah, absolutely so.
Speaker Change: It's really case by case customer by customer we on the one side I can say, where we have customers that are almost back to normal.
Speaker Change: On the other hand, those customers that it will take them longer maybe the.
Speaker Change: Second half of 'twenty, 'twenty, four or maybe even a little bit more than that it really depends on the customer I can even say that we had some good and bad surprises that we've seen recently where customers that we were not expecting.
Alexander Henderson: To place orders in Q1 placed orders in Q1 for a specific SKU.
Alexander Henderson: It doesn't mean that they compete.
Alexander Henderson: Completely depleted inventory noise, but it means that at least for certain parts they need more but on the other hand. We also had other customers that we were expecting to place orders, but eventually they said that they it will take them a little bit more time, so it really depends on customer to customer.
Alexander Henderson: If you were to aggregate all your customers can you talk to the percentage of field inventory that might have been brought down.
Alexander Henderson: Clearly.
Alexander Henderson: That clearing is the critical variable I'll give you an example.
Alexander Henderson: With extreme networks yesterday, they talked about a $45 million reduction in.
Alexander Henderson: And channel inventories.
Alexander Henderson: Which gives us a sense of where they are and when they expect that to come come into closer balance can.
Alexander Henderson: Can you just talk about maybe the percentage of that field inventory I assume you have calibrated at Samsung to some degree.
Speaker Change: But right now there's no specific number I can provide.
Speaker Change: Pivoted your go to market strategy too.
Speaker Change: As long as I can remember and I've been following you guys for a long time.
Alexander Henderson:
Alexander Henderson: And.
Alexander Henderson: It's my understanding that those generally are fairly long.
Alexander Henderson: Process cycle.
Alexander Henderson: From the time you win.
Alexander Henderson: Doing it it takes time to get it engineered in and then second once it's engineered and it takes time for those products launch and.
Speaker Change: So how long do you think it will take for the small deal momentum to build as it is at 18 to 24 months type type cycle.
Speaker Change: So the one of the main reasons to go to the let's say small to medium or bring back the focus to the small and medium design wins.
Speaker Change: Is it's partially because it's actually going faster much faster than the big design wins. So I can even say that we have seen a few.
Speaker Change: Small to medium design wins recently.
Speaker Change: That theyre, starting because sometimes it only takes one engineer to qualify a card and then put it into server tested give the green light to purchasing and it starts moving maybe not in big quantities, but.
Speaker Change: But we see it started moving so I can say, we are already seeing some success and and and and part of the reason to go in the second part, let's say of the reason to go back to small to medium design wins is it sometimes those small to medium become big eventually those immediately and so they're none of it.
Speaker Change: Those that we won recently is small medium is become more than that but definitely we see some small to medium design wins already won already starting.
Speaker Change: And the big one that they will take more time for sure.
Speaker Change: So again.
Speaker Change: Is it typical for these to be 12, 18, 24 months cycle times four.
Speaker Change: With no further towards the small to medium it's shorter than that for the small and medium. It's usually a shorter time cycles and that it's in.
Speaker Change: Seven months timeframe, but it doesn't mean that they fully ramp up in in this timeline. It means that a decision can be made in a short period of time several months and then the ramp up starts.
Speaker Change: The the bigger ones are probably more 12 months, sometimes sometimes even more than that.
Speaker Change: But for the small to medium it should be shorter than that.
Speaker Change: Alright.
Speaker Change: Shifting from the small deals to the larger deals.
Speaker Change: Obviously, you had a lot of large deal.
Speaker Change: Momentum going into the supply chain problems.
Speaker Change: Yeah.
Speaker Change: Clearly.
Speaker Change: But others are likely to still ramp.
Speaker Change:
Speaker Change: He was a delay in terms of the timing of the launch can you.
Speaker Change: Quantify or qualify.
Speaker Change: The mechanics around those.
Speaker Change: Those deals to what extent you have clarity on.
Speaker Change: What portion of them are really gone away and are no longer there and to what extent are you.
Speaker Change: Do you think the other ones might.
Speaker Change: <unk> still be in the pipeline and still be ready to ramp at some point.
Speaker Change: When I think of the big ones that I have in my mind right now.
Speaker Change: They are not gone, but they are suffering from two main pinpoint one is that the customer was over optimistic.
Speaker Change: Which led to a situation of over inventory. So they thought that they will roll out the units much much quicker, which means day they both parts.
Speaker Change: But to many parts because they thought that it will that they would sell much more and that is right now leading to a situation where they have too much inventory.
Speaker Change: And and to some extent the second item is related to the first one which is that they're actually suffering probably from the global economy and slowdown in infrastructure investments, so theyre not able to sell as much as they wanted.
Speaker Change: But we know we're in touch with those big accounts and big wins, they're still deploying even though the fact that they're not even planning to order from us.
Speaker Change: This quarter and next quarter.
Speaker Change: And we don't know exactly when they will return to buying from US definitely it's something that they are still selling they're running out but not at the pace that they wanted to do so.
Speaker Change: Okay. So.
Speaker Change: I mean is there any you know.
Speaker Change: Portion.
Speaker Change: Three quarters or so.
Speaker Change: Are more of them are still operative are any sense of what might've gone away versus continuing.
Speaker Change: So right now as I said I don't believe any of them went away I believe that in the time frame of a year give or take we will see some of those big guys.
Speaker Change: Coming back and generating revenue with us.
Speaker Change: Okay.
Speaker Change: And then just going back to the to the balance sheet your inventory is quite a bit higher than.
Speaker Change: You know normal relative to your.
Speaker Change: Revenue run rates can.
Speaker Change: Can you talk a little bit about how rapidly you can bring that inventory down.
Speaker Change: What do you think the risk is that some of that inventory might be.
Speaker Change: And you know.
Speaker Change: You know kind of monetization of that obviously you did a great job on the receivables here, but I.
Speaker Change: I think the inventories in the next piece of the free cash flow generation.
Speaker Change: So first of all we believe that the inventory value is real value I mean, that's.
Speaker Change: We believe its high quality inventory and we're monitoring it and it did decrease by $7 million. This quarter. We believe it will continue to go down there I cannot.
Speaker Change: Given the exact number because I don't know exactly.
Speaker Change: What it will go down by but yes, we expect it to continue to go down.
Speaker Change: And and despite the fact that you know with certain customers.
Speaker Change: They're not ordering as quick as they said they will they are still ordering and we believe they will continue to order in the future and our purchases also from suppliers is obviously lower and we're not in.
Speaker Change: We'll be in a position that it goes back to.
Speaker Change: Relatively normal size to where revenue business, but.
Speaker Change: But we don't see a reason for that we don't see a risk for having that stock or something of that sort insignificant value none of them.
Speaker Change: Okay great.
Speaker Change: I'll cede the floor, if there's if there aren't any other questions I'll come back in.
Speaker Change: That's more but.
Speaker Change: If somebody else a chance if they are in the queue.
Speaker Change: If there are any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
Speaker Change: The next question is from Alex Henderson of Needham and company.
Alexander Henderson: Please go ahead.
Alexander Henderson: Didn't know whether there would be anybody else there or not.
Alexander Henderson: So going back into the cost cutting moves.
Alexander Henderson: You talk about what you've done in terms of.
Alexander Henderson: The timeline of the staff cuts are they all now completed.
Alexander Henderson: Where are they in for the entire quarter.
Alexander Henderson: Uh huh.
Alexander Henderson: How do I think about the.
Alexander Henderson:
Alexander Henderson: The.
Alexander Henderson: The degree to which that's already in the first quarter or Alternatively.
Alexander Henderson: Whether there is still further cuts to come.
Alexander Henderson: Fitting our future quarters.
Alexander Henderson: So currently we completed are the cuts that they wanted to do.
Alexander Henderson: Right now, we're not expecting a significant cuts here and there maybe but not something that should impact the numbers are significantly. The the cuts were made during Q4 or the full impact of them I think was completely realized in Q1, if not then.
Alexander Henderson: Let's say, 90% or so so we the numbers that you're seeing right. Now is around said earlier is what we expect to see on the opex going forward.
Speaker Change: Okay great.
Speaker Change: Going forward do you think that youre done with anything else.
Speaker Change: The completion of all your intention on that front.
Speaker Change: Can you repeat the question I Couldnt hear it yeah, just just to be clear, there's there's no additional cuts or other things.
Speaker Change: Things being contemplated.
Speaker Change: Contemplated at this point.
Speaker Change: No not at the moment.
Speaker Change: And then.
Speaker Change: Going back to you.
Speaker Change: The timeline for the year.
Speaker Change: Assuming.
Speaker Change: The back half is considerably stronger.
Speaker Change: Still think youll be at the lower end of the.
Speaker Change: If you're talking about a.
Speaker Change: A band of 27% to 32 should we be in the midpoint.
Speaker Change: The lower half of the gross margins, even as we exit the year because the baseline is so so much lower than normal.
Speaker Change: I think that's a fair assumption I think that's pretty much where we find ourselves.
Speaker Change: Okay, and any thoughts on the tax line, whether that will be a.
Speaker Change: You're still paying out or do you think there's any opportunity to.
Speaker Change: For that to zero out.
Speaker Change: Because of the very low level of profitability.
Speaker Change: Assuming 2024 will not be profitable, we expect annualized income tax of approximately half a million barrels.
Speaker Change: Okay, so pretty pretty much similar to the first quarter for the year maybe.
Speaker Change: Maybe a little larger.
Speaker Change: The first quarter was lower than.
Speaker Change: Expected.
Speaker Change: Level due to onetime reasons.
Speaker Change: Yeah, So I repeat it should be approximately a familiar for the full year.
Speaker Change: Yes.
Speaker Change: That's better than the million plus we had in our in our model. So.
Speaker Change: That's what I meant.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: I'll cede the floor. Thanks.
Speaker Change: The next question is from Don Mckiernan.
Don Mckiernan: Landlocked Securities. Please go ahead.
Don Mckiernan: Yeah. Thank you I think earlier on the call you mentioned a couple of maybe larger deals you're working on my question is are these.
Don Mckiernan: All deals that have come back or are these new opportunities and if so can you provide some color on that.
Don Mckiernan: Thanks.
Speaker Change: I'm not sure, which because you you're referring to that we worked on.
Speaker Change: Maybe you can clarify the question a little bit more well, yeah, just well I guess you mentioned some larger opportunities I think that the early part of the call I mean, maybe just provide some color on that.
Speaker Change: I'll try I hope I'm aiming for what you were asking for it okay sure.
Speaker Change: So we I mean.
Speaker Change: We changed a little bit of our mythology in the cells.
Speaker Change: I think so.
Speaker Change: For if we're talking about design wins that we already achieved.
Speaker Change: And in that are ramping up slower than we expected I think I touched on it a little bit on Alex's question.
Speaker Change: We think it will ramp up the ramp up will continue from our perspective.
Speaker Change: Let's say in about a year and if you are talking maybe you were asking about the two products. We discussed that were developing a product families that were working on and we believe that those will be something that could be significant for for our customers and for us as a big revenue projects in the future right.
Speaker Change: But like I can add a little bit of color on that is that one of the product families were developing it together with for a customer of ours that already committed to the product and it's also being developed together with a major chipset vendor.
Speaker Change: And the second probe product family it actually add some critical features to our edge products. So it's within within our existing customer base.
Speaker Change: Of our edge products and they need some very critical features that are not found in common products.
Speaker Change: So there is a level of customization here and.
Speaker Change: And it will allow them to deploy those products in the areas of environments. They are not able to do so today. So we think that could be very big as well.
Speaker Change: I hope I awesome I got it.
Speaker Change: It was really more about two new product families rather than maybe two opportunities so that the okay. Thanks and then.
Speaker Change: You have a sort of a.
Speaker Change: Our relationship with a company in the AI space is up.
Speaker Change: Panning out at all three of those resulted in any opportunity for you.
Speaker Change: In Indiana artificial intelligence, Yeah sure sure. So in the aerospace right now yeah, we do have a few AA vendors. She vendors, we're working with right now we're in POC stage, there's no design wins yet.
Speaker Change: The one area that were looking at and right now it's POC stage with a few customers I cannot add much more than that right now at least in part from the fact that we were hopeful maybe some of those will materialize into into our product.
Speaker Change: A halo is one of those vendors are an Israeli company as well so very close to them working with them closely we hope it will generate maybe another five.
Speaker Change: 5 billion of new deals as well.
Speaker Change: Okay, great well, thanks for taking my questions. Thank you.
Speaker Change: All right.
Speaker Change: There are no further questions at this time before I ask Mr Island mine to go ahead with his closing statement I would like to remind participants that a replay of this call will be available by tomorrow, and silicon website, www dot silicon that USA Dot com, Mr. Eisenberg <unk> do you like to make it.
Ehud Helft: Concluding statement.
Eisenberg: Thank you operator, thank you everybody for joining the call and for your interest in Silicones, we look forward to hosting you on our next call in three months good day.
Speaker Change: Thank you. This concludes silicon labs first quarter 'twenty 'twenty four results conference call. Thank you for your participation you May go ahead and disconnect.
Speaker Change: [music].
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Speaker Change: Yes.
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