Q1 2024 B.O.S. Better Online Solutions Ltd Earnings Call
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Operator: Thank you for joining our call. Please come to the back of the chair, okay? We are excited to meet you again at the University of Queensland. Today, we have a comprehensive agenda. It was solved today by reviewing our promotion results. Visit Strange.org. After that, we have a Q&A session, so please, any questions or concerns you may have. Let's begin with the looking forward statement.
Thank you for joining our call.
Okay.
Let's see.
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Yeah.
We are excited to be here again.
You may begin.
Speaker Change: Hey, Jim.
Speaker Change: Today, we've got very competitive agenda.
Hey.
Speaker Change: It's a very important notion of installed base.
Speaker Change: Sure.
Speaker Change: Oh the battery.
Speaker Change: Any questions on the survey.
Speaker Change: Scott.
Speaker Change: Let's again.
Speaker Change: Okay.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the BOS conference call. All are currently in listen-only mode.
Speaker Change: Ladies and gentlemen.
Speaker Change: Hum.
Speaker Change: Conference call.
Operator: As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow. Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements about the respective company's business, financial condition, and results of its operations are subject to risk and uncertainties, which could cause actual results to differ materially from those contemplated. Such forward-looking statements include, but are not limited to, product demand, pricing, market acceptance, changing economic conditions, risk, and product and technology development, and the effect of the company's accounting policies, as well as certain other risk factors, which are detailed from time to time in the company's filings with the various securities authorities. I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.
Speaker Change: Our references.
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Speaker Change: As a reminder.
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Speaker Change: Available.
Speaker Change: Tomorrow.
Speaker Change: Great.
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Speaker Change: I would like to remind everyone.
Speaker Change: These statements for the respective businesses.
Speaker Change: And so if its operations are subject to risks and F&B.
Speaker Change: Cause actual results to differ materially.
Speaker Change: Please.
Speaker Change: Such forward looking statements.
Speaker Change: Ltd.
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Speaker Change: Christi.
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Speaker Change: <unk> accomplished.
Speaker Change: Base and product and technology development and the effect of the Companys accounting policies as well as certain other risks.
Speaker Change: <unk> time in the Companys filings the various securities authorities.
Eyal Cohen: Fresh water, fresh water is life. Retroducing income will save $740,000. We have a chip installed. Please find the link, reflecting our collective effort and dedication. [inaudible] Ziv Dekel, Eyal Cohen, Ziv Dekel, BOS [inaudible] Oh, 2.1 million people are gonna love it, and DPS. This result puts us on track toward achieving our financial targets for 2024 and a Net Income of 2.2 million. Yeah, we're making the storm. That's all we have for now. Have a good one.
Speaker Change: I will now turn the call.
Speaker Change: Mr. Cohen. Please go ahead.
Speaker Change: Okay.
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Speaker Change: But what to expect.
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Speaker Change: It's both.
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Speaker Change: And consistently.
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Speaker Change: Therefore.
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Speaker Change: Our training business.
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Speaker Change: Ed.
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Speaker Change: Thank you.
Speaker Change: Yes.
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Speaker Change: Hey, Scott.
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Speaker Change: Sure.
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Speaker Change: Each operator.
Speaker Change: Bob.
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Speaker Change: Yes.
Speaker Change: Akshay.
Speaker Change: Great.
Eyal Cohen: 20 million dollar shareholder equity, which accounts for 60% of... and third class of cash net applause of 1.3. Our business performance combined provides us with the right ecosystem for thinking, exploring, and developing engines for the future. The following slide concerns Force-Gauss Valuation Ratios Based on the Training Thread [inaudible] 7.7. The market cap ratio to projected net income for year 24 is 7.3. The market cap ratio to EBITDA is 5.3, and the market cap ratio to the shareholders' equities is only 82%. Despite our positive trends, our market cap remained at $15,000,000 on the Sunday of the 21st. When we earn only half a million dollars a year, and remain.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: Sure.
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Speaker Change: The balance sheet.
Speaker Change: The White house.
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Speaker Change: Thanks Logan.
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Speaker Change: Davidson.
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Speaker Change: Traveling.
Speaker Change: Good luck.
Speaker Change: You bet.
Speaker Change: Please standby.
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Speaker Change: All that remains.
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Eyal Cohen: 50 million 50 million dollars a day when you earn more than two million dollars a year. 365. I hope BOS will have finalist coverage this year to explore its value opportunity to more investors. Oh, this is strange.
Speaker Change: And Rebecca.
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Speaker Change: 365.
Speaker Change: I hope.
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Speaker Change: Thank you.
Speaker Change: This year.
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Speaker Change: More investors.
Eyal Cohen: The supply chain division has expanded the list of electronic manufacturers in its name and increased accessibility. Hence, we expect revenue growth from those programs. 2024, and P.O.
Speaker Change: Great.
Speaker Change: Sure.
Speaker Change: At the time.
Speaker Change: Good morning.
Speaker Change: Glen.
Speaker Change: Has it increased.
Speaker Change: Okay.
Speaker Change: Okay great.
Eyal Cohen: Inefficient, We are facing increased demand for means of expansion, and we anticipate it will positively affect the supply chain division's revenues. The emergence of robotic ambition is successfully transitioning from reason and human instinct to the disease of concentration.
Npls.
Speaker Change: Yeah.
Speaker Change: Belvieu.
Speaker Change: Thanks.
Speaker Change: That may dissipate.
Speaker Change: Yes.
Speaker Change: So effectively vision.
Speaker Change: Thank you.
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Speaker Change: Sure.
Eyal Cohen: We can promote strategic growth in 2024. This division's revenues in the first quarter of the year do not reflect its potential revenues for the year to come because a significant portion of the orders you receive. How is production? A lot of the patients' cells are turned into logistics centers.
Speaker Change: Thank you Paul.
Speaker Change: Okay.
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Speaker Change: No.
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Speaker Change: Significant.
Speaker Change: Good morning.
Speaker Change: Production.
Speaker Change: Yes.
Speaker Change: Thank you.
Eyal Cohen: We have significantly extended our offering for this. This was used for evidence purposes in the interest of the court. I also sent a call over to Mr. Dickman to join. Thank you. Thank you, Eyal. Good morning and afternoon, everybody.
Speaker Change: <unk> already.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Turning to our offerings.
Speaker Change: Yes.
Speaker Change: Thank you.
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Speaker Change: Great.
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Speaker Change: Yes.
Speaker Change: Ill start the call.
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Speaker Change: Thank you.
Ziv Dekel: In reference to Eyal's review and within the broader framework, BOS's first order record, revenue, and income are the primary effect of the comprehensive competitiveness buildup process that Eyal has been leading for the past years. But, in fact, the meaning of it is the rejuvenation of most of BOS's core business while bringing it to a consistent course of sound organic sales and profit. Specifically, freshwater is characterized by the continuous implementation of significant steps to strengthen capabilities, improve activity, and expand the organic source of water, as well as to strengthen the organizational structure and the basic processes in the expertise.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Very good.
Speaker Change: Thanks, guys.
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Speaker Change: Good morning.
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Speaker Change: Bye.
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Speaker Change: Question.
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Speaker Change: Productivity and expense.
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Ziv Dekel: Looking ahead to the rest of the end of next year, combining our strong competence with variable market dynamics in the Israeli defense and high-tech segments, we're optimistic about. We plan to continue expanding the business lines of all of our divisions in the premium segment, which should lead to further growth. In addition, we plan to expand our division's footprint on the production floor and warehouse to the retail stores.
Speaker Change: Yes.
Speaker Change: Please go ahead.
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Speaker Change: Favorable market.
Speaker Change: Indeed.
Speaker Change: You bet.
Speaker Change: Segments, we are optimistic.
Speaker Change: Thank you.
Speaker Change: We plan to proceed very exciting.
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Speaker Change: Ingredients segments.
Speaker Change: We should lead to further growth.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Great.
Ziv Dekel: I trust BOS TV, led by Eyal, to achieve these challenging goals. Our team's dedication, expertise, and hard work have been instrumental in our success so far, and I am confident that they will continue to drive our growth and achieve our goals.
Speaker Change: Got it.
Speaker Change: Depreciation.
Speaker Change: I Trust.
Speaker Change: Mcbride out to.
Speaker Change: To achieve this strategy.
Speaker Change: Our diversification.
Speaker Change: And powerful behalf.
Speaker Change: Everything.
Speaker Change: That was successful.
Speaker Change: Okay.
Speaker Change: Our.
Ziv Dekel: Thank you for your attention. I will now hand back the presentation to Eyal. Thank you. Thank you, Ziv. At this time, we begin the Q&A. If you have questions, please unmute or present yourself while all other participants remain mute. Thank you.
Speaker Change: And achieve our goals.
Goldman Sachs.
Speaker Change: Presentation.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: We begin the Q&A session.
Speaker Change: If you have questions.
Speaker Change: It's a defensive so why are they all over past expenditure Maggie thank you.
Speaker Change: Okay.
Questioner: Why are you shooting? I don't know. Bye, and I would like to know why the revenue for the first quarter of this year was less than last year. And is there any impact of the war that influenced this quarter? And what do you think about the gross margin? Do you think these levels are going to stay? Do you think they can improve? And Do you think that the second quarter could be better because of the war, or is there no impact?
Speaker Change: Yeah.
Speaker Change: Hi, Julien.
Speaker Change: The audio.
Speaker Change: Alright, thank you.
Speaker Change: And I would like to now.
Speaker Change: Why the revenue of the first quarter of this year was the less and less.
Last year.
Speaker Change: And is there any impact of the weather.
Speaker Change: Does that influence the this quarter.
Speaker Change: And then what do you think about the gross margin do you think these levels.
Speaker Change: I'm going to stay they think they can grow.
Speaker Change: Yes.
Speaker Change: Do you think that the second quarter, it could be better because of the rural or there's no impact.
Speaker Change: That's all for now.
Speaker Change: Okay.
Speaker Change: Total media.
The treatment revenues.
Speaker Change: Dress department with Walter.
Eyal Cohen: Okay. [inaudible] It's not a sign to any effect. And because of that, we keep on our albums all year. [inaudible] And the other thing is, by the way, a lot of the decreases in latency... I'm going to be talking about the the the the the the the the the the the the the the, We got through the war, we got through the situation in Israel. About 25% of our business is thanks to the Israeli friendship network. [inaudible] We are trying to increase the volume. They absolutely support our... It could support or continue to grow. During this year and by the day, be open.
Speaker Change: Rocket science where needed.
Speaker Change: Sure.
Speaker Change: And because of that we keep on our outlook for the year.
Speaker Change: In particular.
Speaker Change: Electrical almost $6 million.
Speaker Change: Yes.
Speaker Change: Okay.
Regardless because baidu.
Speaker Change: By the way welcome by the Threep installations.
Speaker Change: Please turn with revenue results for the year with one division reached at every level of efficacy next quarter, because most of that all the above.
Speaker Change: We recognize the revenue upon the rebuild.
Speaker Change: Okay.
Speaker Change: Regarding the world or the opposite situation misled.
Speaker Change: About 25% of our business.
He is on the defensive measures.
Speaker Change: Thanks.
Speaker Change: We try and we are trying to treat the soldiers.
Speaker Change: They absolutely support.
Speaker Change: And can support.
Speaker Change: Good loans.
Speaker Change: During this year.
Questioner: OK, so you see another place of another space of improvement for the gross margin?
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Another place of another space of improvement for the gross margin.
Eyal Cohen: I'm not sure regarding whether it was the smart drink or smoking, and we agree that 46 million dollars this year, and we believe it will continue to increase in revenue next year as well. Okay, thank you.
Speaker Change: I actually got the embedded gross margin off market margin, but Mcdonald's by revenues.
Speaker Change: Yeah.
Speaker Change: Read that $46 million this year.
Speaker Change: We believe it will continue to close the directly to next year I'm sorry.
Okay. Thank you. Thank you.
Questioner: Hey, congratulations on the great quarter and the record earnings. It's nice to see that. I know you just mentioned that about 75% of your revenue is defense related. What was this a year ago? How much has the defense business grown?
Tom: Thanks, Tom.
Speaker Change: Hey, congratulations on the great quarter and near record earnings. It's nice to see that I know you just mentioned that about 75% of your our revenue is.
Speaker Change: Defense related.
What was this a year ago, how much is the defense business grown.
Speaker Change: And I guess it draws.
Speaker Change: Jonathan.
Speaker Change: Yes.
Speaker Change: 60%.
Speaker Change: Okay.
Speaker Change: And midstream continues to grow because of loan government reporting convention globe.
Okay.
Speaker Change: 90% of its revenues attributable to the decline.
Eyal Cohen: And I guess it was 50% and, and nature in particular, to grow because I think that 90% of the children in Saudi Arabia... How are you? Eyal Cohen, Ziv Dekel, BOS Better Online, We are seeking some more opportunities. [inaudible] So when you gain more peace, for example, and we integrate a new line of products. And those wires, in these wires, we present American property, which is wire muscle, and we believe this line of products will increase revenue from education.
Speaker Change: And.
Regarding the supply chain Division, we are seeing some multiple charities.
Speaker Change: In the detached expand or extend our offering.
Speaker Change: So again getting more fees for example.
Speaker Change: And really the.
Speaker Change: In recent months.
Speaker Change: Integrated a new line of uncertainty.
Speaker Change: Thanks.
Speaker Change: <unk> essentially completed.
Speaker Change: Reach out wires.
Speaker Change: Are those wire in this water because that's the backbone of images water muscle.
Speaker Change: We believe.
Speaker Change: This line of products will increase the revenue.
Speaker Change: The defense.
Questioner: Okay, that's great to hear. I know the last caller had talked about the first quarter revenue being a little lower. During the last conference call, you had said that there was some business in Q4 that was being pushed back to Q1 and Q2. With everything that's happened and given your projection of $46 million in revenue, can we expect a stronger Q2 and Q3 than last year?
Speaker Change: Okay.
Speaker Change: Great to hear I know I know the last caller had.
Speaker Change: <unk> talked about the first quarter revenue being a little lower.
Speaker Change: During the last conference call you had said that there was some business in Q4 that was being pushed back to Q1 and Q2.
Speaker Change: With everything that's happened in giving your projection of $46 million in revenue can we expect a stronger Q2 and Q3 than last year.
Okay.
Eyal Cohen: I think it may not provide the output based on factors, but in general, years went to years old when we got up, as years went to trees. [inaudible]
Speaker Change: I think as we talked about.
Speaker Change: Why the outlook based on Broker's filed inkjet.
Speaker Change: Yes on GTA, Paul with regard.
Speaker Change: The tree.
Speaker Change: Buy revenues.
Questioner: Okay. And then finally, it was nice to see the profitability in the robotics line. If you had to estimate which one of your segments would have the greatest revenue growth, do you think robotics is finally poised to have significant revenue this year and maintain the profitability that you've now achieved?
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: And then finally it was nice to see the profitability in the robotics line.
Speaker Change: If you had to.
Speaker Change: Estimate, which one of your segments would have the greatest revenue growth.
Speaker Change: Do you think the robotics is finally poised to have a <unk>.
Speaker Change: Significant revenue this year and maintain the profitability that you've now achieved.
Eyal Cohen: Yeah, I can see it in the Robotic Division at Palisades, from gross losses to gross profit, then after from operating loss to operating profit, and then after from breakeven to profit. So it's a process. It's a natural process.
Speaker Change: Yes.
Speaker Change: Welcome to the patient.
Speaker Change: Okay.
Speaker Change: Process.
Speaker Change: Losses.
Speaker Change: Okay for large losses was salt JD, then offset with an operating loss of 40 installed base and then also from breakeven that with some of the mix program.
Eyal Cohen: And we see that in the recent... 3-4-4-7-6. We are working very hard to continue. This year, and absolutely, I think that this year, the Obama presidency, but we have to work very hard to deliver, to produce all the work, and to solve all the projects that we are committed to developing. Another aspect of that is that I think that in the robotics division, we have successfully built a relatively strong competitive position in the market.
Speaker Change: So it's a process, it's a natural boxes and we see that there will be attrition.
Speaker Change: Three or four quarters.
Speaker Change: But it gave them been impossible, but love to hear it again.
Speaker Change: Okay.
Speaker Change: And we are working very hard to continue this.
Speaker Change: This strength this year by industrial plays nicely for this year the loan Division rebate.
Speaker Change: Great.
Speaker Change: But we have to work very often the vapor.
Speaker Change: To produce all the bulk.
Speaker Change: So the project.
Speaker Change: Amit.
Speaker Change: Dependency.
Speaker Change: Another aspect of that is that I think that the robotics division.
Speaker Change: Just for me.
Speaker Change: A relatively strong competitive position in the model with the segments, which we are focusing on really bad you can everybody can trust that if we choose.
Eyal Cohen: These are segments which we are focusing on, meaning that you can, and everybody, you know, can trust that if we keep the thorough work that we're doing there, then revenues and profits will follow. The segments are poised to grow during the market.
Speaker Change: Total war.
Ben: Yes, Ben.
Ben: Revenues and profits.
Ben: Okay.
Speaker Change: Was that in the segment Sean Boyd.
Speaker Change: Uh huh.
Speaker Change: The growth in <unk>.
Questioner: Okay, and then just one quick follow up. I really appreciated the slides showing how undervalued the company is. By my math, I now have your book value per share of over $3.40 based on this quarter. Is there any, you know, M&A activity, whether you are acquiring some other companies or there has been interest and possibly, you know, you being acquired? I just, I can't understand why your stock is so undervalued. And, you know, at this time, are there any M&A updates you can give us?
Speaker Change: These market trends.
Speaker Change: Okay.
Speaker Change: Okay, and then one quick follow up I really appreciated the slides showing how undervalued the company is.
Speaker Change: By my math on now have your book value per share of over three.
Speaker Change: $3.40 a share based on this quarter.
Speaker Change: Is there any.
Speaker Change: You know M&A activity, whether you acquiring some other companies or is has there been interest and possibly.
Speaker Change: You know you being acquired I, just I don't I.
Speaker Change: I can understand why your stock is so undervalued and.
Speaker Change: You know at this at this time.
Speaker Change: Is there any M&A updates you can give us.
Speaker Change: Eric.
Speaker Change: Followed by <unk>.
Eyal Cohen: [inaudible] You're right. What's reflected in your mind is fire.
Speaker Change: Yes.
Speaker Change: As reflected in the spot.
Eyal Cohen: Ziv Dekel, Eyal Cohen, Ziv Dekel, BOS Better Onlin, The step that I believe we need to do, beyond the M&A, which is not to increase the shell price. So why don't we? to have an analyst help, which I believe will have an immediate impact on our valuation.
Speaker Change: Yes.
Speaker Change: If the prices undervalue the company vulnerable.
Speaker Change: Bob.
Bob: And I believe we need to do.
Bob: H not small tweak to the shelf life.
Bob: The long term.
Bob: Yes.
Speaker Change: So what it means.
Speaker Change: Russell <unk>.
Speaker Change: Japan, M&A stuff, which is so rich.
Speaker Change: Many of the.
Speaker Change: New products.
Speaker Change: Well valuation.
Speaker Change: Okay.
Eyal Cohen: I hope that... that it will be doubled in the next 30 days. That's how you try to recruit kids, to complete the rule by doing the shaded project. And other than that, we are seeking opportunities from the government and for all of the patients. We have several processes that we are checking.
Speaker Change: But also say stage tsunami.
Speaker Change: All of those.
Speaker Change: That's it.
Speaker Change: Dave.
Speaker Change: On fitness.
Speaker Change: Paul.
Speaker Change: But I would try to retool to complete.
Speaker Change: Complete the wall by during the second module.
Speaker Change: And other than we.
Speaker Change: We are seeking the opportunity to sell every day.
Speaker Change: Adding dedicated for all the divisions.
Speaker Change: David will be out of the <unk>.
Speaker Change: <unk> also spoken about we are checking.
Speaker Change: Okay.
Eyal Cohen: This should be a fabulous song.
Questioner: Thank you for taking my question.
Speaker Change: This was established.
Speaker Change: Okay. Thank you for taking my question.
Operator: Any further questions? Okay So, we appreciate your active participation. [inaudible] If you have any further questions or concerns, please feel free to reach out to us. Thank you for your time. Thank you, everyone.
Speaker Change: Thank you.
Speaker Change: Let me follow up questions.
Speaker Change: Okay.
Speaker Change: So.
Speaker Change: We appreciate your participation.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Ravi I shouldn't insights on patient care.
Speaker Change: If you have any further questions or concerns please feel free to reach out to us.
Speaker Change: Thank you for your time thank.
Speaker Change: Thank you everyone. Thank you.
Speaker Change: Bye bye.