Q2 2024 Everspin Technologies Inc Earnings Call
Operator: Good afternoon, and welcome to the conference call to discuss Everspin Technology's second quarter 2024 financial results. At this time, all participants are in a listen-only mode.
Operator: Good afternoon and welcome to the conference call to discuss Everspin Technologies' second quarter of 2024 financial results. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be provided for the question-and-answer session. As a reminder, this conference call is being recorded.
Good afternoon, and welcome to the conference call to discuss every spin technologies second quarter 2024 financial results. At this time all participants are in a listen only mode. At the conclusion of today's conference call instructions will be provided for the question and answer session.
Operator: At the conclusion of today's conference call, instructions will be provided for the question and answer session. As a reminder, this conference call is being recorded. I would now like to turn the call over to Cassidy Fuller, Investor Relations, for Everspin. Thank you, operator.
Cassidy Fuller: A reminder, this conference call is being recorded I would now like to turn the conference over to Cassidy cooler investor relations for ever spin.
Operator: I would now like to turn the conference over to Cassidy Fuller, Investor Relations, for Everspin.
Cassidy Fuller: Thank you, Operator, and good afternoon, everyone. Everspin released results for the second quarter 2024 and June 30, 2024, 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 Matt Tenario, Interim Chief Financial Officer.
Cassidy Fuller: Thank you, operator, and good afternoon, everyone.
Cassidy Fuller: Thank you operator, and good afternoon, everyone.
Cassidy Fuller: Everspin released results for the second quarter 2024 and is June 30th, 2024, 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 Matt Tenorio, Interim Chief Financial Officer.
Speaker Change: It's been released results for the second quarter 2024.
Speaker Change: 30 F 'twenty 'twenty four this afternoon after the market close.
Cassidy Fuller: I'm, Kathy Fuller Investor Relations for <unk> and with me on today's call are Sanjiv argue while president and Chief Executive Officer, and Matt scenario interim Chief Financial Officer.
Cassidy Fuller: Before we begin the call, I'd like to remind you that this conference call contains four 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 NRAM technology, successfully bringing to market and manufacturing products in Everspin's design pipeline, and executing on its business plan. These four 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 four 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 Everspin.
Cassidy Fuller: Before we begin the call, I'd like to remind you that this conference call contains four 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 MRAM technology, successfully bringing to market and manufacturing 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.
Speaker Change: Before we begin the call I'd like to remind you that this conference call contains forward looking statements regarding future events, including but not limited to the company's expectations for future business financial performance and goals customer and industry adoption of technology.
Speaker Change: Our fleet, bringing to market and manufacturing products and ever since design pipeline and executing on its business plan.
Speaker Change: These forward looking statements are based on estimates judgments current trends and market conditions.
Speaker Change: And involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward looking statements we.
Cassidy Fuller: 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.
Speaker Change: 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 Arizona.
Cassidy Fuller: All four 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 four looking statements made on this call, whether as a result of new information, future events, or otherwise.
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 estimates and are based on the information available as of the date hereof and are subject to further review by Everspin and external auditors.
Speaker Change: 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.
Cassidy Fuller: The financial results discussed today reflect the company's preliminary estimate and are based on the information available as of the date hereof and are subject to further review by Everspin and external auditors. 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 final time in the time the financial results of this period are finalized.
Speaker Change: The financial results discussed today reflect the company's preliminary estimates are based on information available at the date hereof and are subject to further review by ever spin.
Speaker Change: Journal on it.
Cassidy Fuller: 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 final time that the financial results for this period are finalized. Additionally, the company's press release and statements made during this conference call will include discussion of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and a reconciliation of GAAP net income to adjusted EBITDA, which provide additional details.
Speaker Change: 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 or I think between now and the final time.
Speaker Change: And the time of 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. Included in the company's press release are definitions and reconciliations of GAAP net income to adjusted EBITDA, which provide additional details.
Speaker Change: Additionally, the company's press release and statements made during this conference call will include discussion discussions of certain measures and financial information in GAAP and non-GAAP terms included in the company's press release are definitions and reconciliation of GAAP net income to adjusted EBITDA, which provide additional details.
Cassidy Fuller: A copy of the press release is posted on the Investor Relations section of Everspin's website at www.everspin.com.
Speaker Change: A copy of the press release is posted on the Investor Relations section of Everson website at Www Dot understand dot com.
Cassidy Fuller: 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.
Cassidy Fuller: And now I'd like to turn the call over to Everspin's President and CEO, Sanjeev Arguwal. Sanjeev, please go ahead.
Speaker Change: And now I'd like to turn the call over to ever since President and CEO Sanjiv Arguable Sandeep. Please go ahead.
Sanjeev Aggarwal: Thank you, Cassidy, and thanks everyone for joining us on the call today. Before I discuss the results, I want to make a moment to welcome Matt and Oreo back to Everspin as our interim CFO. Matt previously served as a company's corporate controller and as an interim chief financial officer in 2020, and he rejoined Everspin in June 2024 as an independent consultant to support finance operations.
Speaker Change: Uh huh.
Sanjeev Aggarwal: Thank you, Cassidy, and thanks, everyone, for joining us on the call today. Before I discuss the results, I want to make a moment to welcome Matt Tenorio back to Everspin as our Interim CFO. Matt previously served as the company's corporate controller and as interim chief financial officer in 2020, and he rejoined Everspin in June 2024 as an independent consultant to support finance operations. On behalf of the board and management team, I also want to thank Anuj for his hard work and dedication over the past three years, and we wish him well in his next endeavor.
Speaker Change: Thank you Cassidy and thanks, everyone for joining us on the call today.
Speaker Change: Before I discuss our results I wanted to take a moment to welcome Matt Tenorio back through our spin as our interim CFO.
Speaker Change: Matthew if he served as the company's corporate controller and interim Chief Financial Officer in 2020, and he rejoined our spin in June 2024.
Speaker Change: An independent consultant to support finance operations.
Sanjeev Aggarwal: On behalf of the board and management team, I also want to thank Anuj for his hard work and dedication over the past three years, and we wish him well in his next endeavor.
Speaker Change: On behalf of the board and management team I also want to thank <unk> for his hard work and dedication over the past three years and we have.
Speaker Change: Wish him well in his next endeavor.
Sanjeev Aggarwal: Turning to our second quarter results, we delivered revenue and net loss within our guidance range, with revenue of 10.6 million and a net loss of 12 cents per basic share. We ended the quarter with a strong balance sheet, including cash of 36.8 million.
Sanjeev Aggarwal: Turning to our second quarter results, we delivered revenue and a net loss within our guidance range, with revenue of $10.6 million and a net loss of $0.12 per basic share. We ended the quarter with a strong balance sheet, including cash of $36.8 million.
Speaker Change: Turning to our second quarter results, we delivered revenue and net loss within our guidance range with revenue of $10 6 million and a net.
Speaker Change: Net loss of 12 cents per basic share.
Speaker Change: We ended the quarter with a strong balance sheet, including cash of $36 8 million.
Sanjeev Aggarwal: During the quarter, Everspin had advancements in a number of areas that showcase our key corporate capabilities. I will discuss a few of these here that span our persistent product portfolio, design and technology development services, and family services. Starting with our toggle MRAM solution, as expected, during the quarter, we continue to experience weakness partly due to inventory consumption at customers and partly due to unfavorable currency exchange rates in the Asia Pacific markets, which have resulted in a slow recovery for our toggle MRAM products. Looking ahead, we see positive signs of inventory consumption at our customers, giving us increased visibility into demand for the rest of the year.
Sanjeev Aggarwal: During the quarter, Everspin made advancements in a number of areas that showcase our key corporate capabilities. I will discuss a few of these here that span our Persist product portfolio, design and technology development services, and foundry services, starting with our toggle MRAM solution. As expected, during the quarter, we continued to experience weakness, partly due to inventory consumption at customers and partly due to unfavorable currency exchange rates in the Asia-Pacific markets, which have resulted in a slow recovery for our toggle MRAM product.
Speaker Change: During the quarter, However, sprint had advancements in a number of areas that showcase our key corporate capabilities.
Speaker Change: I will discuss a few of these here that span our persist product portfolio design and technology development services and foundry services.
Speaker Change: Starting with our toggle MRM solution.
Speaker Change: As expected during the quarter, we continued to experience weakness, partly due to inventory consumption of our customers and partly due to unfavorable currency exchange rates and the Asia Pacific markets, which have resulted in a slower recovery for our toggle <unk> products.
Sanjeev Aggarwal: Looking ahead, we see positive signs of inventory consumption at our customers, giving us increased visibility into demand for the rest of the year. We expect a modest ramp-up in our toggle solutions worldwide in the second half of 2024. During the quarter, we experienced strong traction with our 4 meg, 228 megabit STTM RAM Persist family globally, especially in the European and Asia-Pacific regions, where we saw our highest design activity and production volume, respectively. As a reminder, this family was brought to production last year.
Speaker Change: Looking ahead, we see positive signs of inventory consumption at our customers, giving us increased visibility into demand for the rest of the year.
Sanjeev Aggarwal: We expect a modest ramp in our toggle solutions worldwide in the second half of 2024. During the quarter, we experience strong traction with our 4-meg, 228-megabit, STTM RAM, persist family globally, especially in the European and the Asia Pacific regions that we saw our highest design activity and production volume, respectively. As a reminder, this family was brought to production last year. We expect to begin delivering on these design wins later this year or in early 2025, and based on customer discussions, we expect a few design wins to go into production later this year, with revenue ramping in 2025.
Speaker Change: A modest ramp in our travel solutions worldwide in the second half of 2024.
Speaker Change: During the quarter, we experienced strong traction with our <unk> 228, megabit STM Ram persist family globally, especially.
Speaker Change: Especially in the European and Asia Pacific regions, where we saw our highest design activity and production volume respectively.
Speaker Change: As a reminder, this family was brought on production last year.
Sanjeev Aggarwal: We expect to begin delivering on these design wins later this year or in early 2025, and based on customer discussions, we expect a few design wins to go into production later this year with revenue ramping in 2025. Earlier in the second quarter, we announced that IBM chose our Persist 1 gigabit STDM RAM solution for use in its Flash Core Module 4 for data center applications. This is the fourth generation of IBM's FCM that features Everspin's STDMRAM technology.
Speaker Change: We expect to begin delivering on these design wins later this year or in early 2025 and based on customer discussions. We expect a few design wins to go into production later this year with revenue ramping in 2025.
Sanjeev Aggarwal: Earlier in the second quarter, we announced that IBM chose our persist one gigabit STTM RAM solution for use in its Flash Core Module for data center applications. This is the fourth generation of IBM's SCM that has featured ever spent STTM RAM technology. With a DDR4-like interface, our persist solution delivers 2.7 gigabytes per second of both read and write bandwidth, coupled with non-volatility. Since the announcement, we have seen continued growth in orders from IBM and expect to see sustained growth in this product over the coming quarters.
Speaker Change: Earlier in the second quarter, we announced that IBM chose our persist one gigabit <unk> solution for use in its flash core module for for data Center applications. This is the fourth generation of Ibm's SCM, but is featured our expense STM Ram technology.
Sanjeev Aggarwal: With a DDR4-like interface, our Persist solution delivers 2.7 GB per second of both read and write bandwidth coupled with non-volatility. Since the announcement, we have seen continued growth in orders from IBM and expect to see sustained growth in this product over the coming quarters.
Speaker Change: With the DDR for like interface or persist solution delivers two seven gigabytes per second of both read and write bandwidth coupled with non <unk>.
Speaker Change: Since the announcement, we have seen continued growth in orders from IBM and expect to see sustained growth in this product over the coming quarters.
Sanjeev Aggarwal: Turning out to our radiation heart programs. On our previous earnings calls, we noted that we were engaged in two rad heart programs utilizing our STTM RAM technology. The first program related to an ad hoc 64-megabit STTM RAM project remains ongoing. The second program is aimed at building a strategic rad heart FPGA. As recently announced, we executed a contract to continue our collaboration on this program with Quick Logic and Honeywell. Under the contract, Everspin will provide its innovative Agilist M-RAM technology, logic design, and backend offline manufacturing services to advance the development and demonstration of strategic radiation-hardened and high-reliability FPGA technology.
Speaker Change: Turning now to our aviation heart programs.
Sanjeev Aggarwal: On our previous earnings calls, we noted that we were engaged in two RADHeart programs utilizing our STDMRAM technology. The first program related to an ad hoc 64 megabit STTM RAM project remains ongoing. The second program is aimed at building a strategic Red Heart FPGA.
Speaker Change: Our previous earnings calls, we noted the viewer engaged into reinhart's programs utilizing our STM Ram technology.
Speaker Change: The first program related to an AD hoc 64, megabit <unk> MRI and project remains ongoing.
Speaker Change: The second program is aimed at building a strategic Reinhard FPGA as recently announced we executed a contract to continue our collaboration on this program with quick logic and Honeywell.
Sanjeev Aggarwal: As recently announced, we executed a contract to continue our collaboration on this program with QuickLogic and Honeywell. Under the contract, Everspin will provide its innovative Agilist MRAM technology, logic design, and back-end offline manufacturing services to advance the development and demonstration of strategic, radiation-hardened, high-reliability FPGA technology. This initiative supports both current and future DOD strategic and space system requirements. Earlier this month, we attended Semicon West, where we engaged in meaningful conversations with automotive companies about use cases for STTM RAM chiplets. With increasing vehicle electrification, central processing units require much higher density and faster memory that current technology cannot provide.
Speaker Change: Under contract <unk> will provide innovative agile list and Ram technology logic design and backend offline manufacturing services to advance the development and demonstration strategic radiation hardened high reliability FPGA technology.
Sanjeev Aggarwal: This initiative supports both current and future DOD strategic and space system requirements.
Speaker Change: This initiative supports both current and future Dod strategic and space system requirements.
Sanjeev Aggarwal: Earlier this month, we attended Semicon West, where we engaged in meaningful conversations with automotive companies about use cases for STTM RAM chiplets. With increasing vehicle electrification, central processing units require much higher density and faster memory that current technology cannot provide. As a result, we are starting to see increasing interest in our STTM RAM products to handle the vast amount of data that EVs generate. We see this as a meaningful opportunity for Everspin over the next few years and expect to have further conversations with potential automotive customers at the Automotive Chiplet Alliance conference in October.
Speaker Change: Earlier. This month, we attended Semicon West, where we engaged in meaningful conversations with automotive companies about use cases for STM Ram triplets.
Speaker Change: With increasing vehicle electrification central processing units require much higher density and faster memory that current technology cannot provide.
Sanjeev Aggarwal: As a result, we are starting to see increasing interest in our SCDM RAM products to handle the vast amount of data that electric vehicles generate. We see this as a meaningful opportunity for Everspin over the next few years and expect to have further conversations with potential automotive customers at the Automotive Chiplet Alliance Conference in October. We are also pleased to share that we entered into a strategic agreement with the leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device.
Speaker Change: As a result, we are starting to see increasing interest in our city MRM products to handle the vast amount of data that TV generate we.
Speaker Change: We see this as a meaningful opportunity for <unk> over the next few years and expect to have further conversations with potential automotive customers at the automotive Chip led Alliance conference in October.
Sanjeev Aggarwal: We are also pleased to share that we entered into a strategic agreement with the leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device. Everspin has fundamental IP for TMR sensors and a long history of manufacturing these devices. This agreement will allow our customer to enable a consistent, high-quality product supply for their end markets, including for industrial and commercial applications.
Speaker Change: We're also pleased to share that we entered into a strategic agreement with a leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device.
Sanjeev Aggarwal: Everspin has fundamental IP for TMR sensors and a long history of manufacturing these devices. This agreement will allow our customer to enable a consistent, high-quality product supply for their end markets, including industrial and commercial applications. To date, we have manufactured and shipped over 150 million toggle MRAM, SCDM RAM, and magnetic TMR sensors from our Chandler, Arizona facility.
Speaker Change: <unk> has fundamental IP for TMR sensors, and a long history of manufacturing these devices.
Speaker Change: This agreement will allow our customer to enable a consistent high quality product supply for their end markets, including for industrial and commercial applications.
Sanjeev Aggarwal: To date, we have manufactured and shipped over 150 million toggle M RAM, STTM RAM, and magnetic TMR sensors from our Chandler, Arizona facility.
Speaker Change: To date, we have manufactured and shipped over $150 million.
Ram: Ram as CDM Ram and magnetic TMR sensors from our Chandler, Arizona facility.
Sanjeev Aggarwal: Turning to our outlook for the remainder of 2024, as we have discussed on our last two earnings calls, we expect the year to be weighted more heavily towards the second half of 2024. Despite the short-term challenges outlined above, we continue to see a path towards the stronger second half as we begin to recognize revenue from our new STTM RAM design events.
Sanjeev Aggarwal: Turning to our outlook for the remainder of 2024. As we have discussed on our last two earnings calls, we expect the year to be weighted more heavily towards the second half of 2024. Despite the short-term challenges I outlined above, we continue to see a path to a stronger second half as we begin to recognize revenue from our new STTM-RAM design. I will now turn it over to our Interim CFO, Matt D'Onorio, who will take you through our second quarter financials and third quarter 2024 guidance.
Ram: Turning to our outlook for the remainder of 2024 as we have discussed on our last two earnings calls, we expect the year to be weighted more heavily towards the second half of 2024 despite.
Ram: Despite the short term challenges I outlined above we continue to see a path towards a stronger second half as we begin to recognize revenue from our new <unk> design wins.
Cassidy Fuller: I will now turn it over to our Interim CFO, Matt Pinorio, who will take you through our second quarter financials and third quarter 2024 guidance. Matt?
Matt Tenorio: I will now turn it over to our interim CFO, Matt Tenorio, who will take you through our second quarter financials and third quarter 2020 for guidance.
Ram: Jack.
Matt Tenorio: Thank you, Sanjeev, and good afternoon, everyone. I'm pleased to return to Everspin at such an exciting time.
Matt Tenario: Thank you, Sanjeev. And good afternoon, everyone.
Matt Tenorio: Thank you Sandeep and good afternoon, everyone I am pleased to return to ever spent at such an exciting time.
Matt Tenario: I'm pleased to return to Everspin at such an exciting time. Now, turning to our results. For the second quarter, we're pleased to deliver quarterly results within our guidance range, with revenue of $10.6 million, compared to $15.7 million in the second quarter of 2023. M-RAM product sales in the second quarter, which include both Toggle and SCT M-RAM revenue, were $9.9 million, compared to $13.4 million in Q2 of 2023. This decrease was the result of a decline in product sales due to the timing of customer
Matt Tenorio: Now, turning to our results. For the second quarter, we are pleased to deliver quarterly results within our guidance range, with revenue of $10.6 million, compared to $15.7 million in the second quarter of 2023. M RAM product sales in the second quarter, which include both toggle and STTM RAM revenue, was $9.9 million, compared to $13.4 million in Q2 of 23. Decrease was the result of a decline in product sales due to the timing of customer demand. Licensing, royalty, patent, and other revenue in the second quarter decreased to $0.7 million, compared to $2.3 million in Q2 of 23, due to a decline in revenue from our Radhard projects.
Matt Tenorio: Now turning to our results.
Matt Tenorio: For the second quarter, we are pleased to deliver quarterly results within our guidance range with revenue of $10 6 million compared to $15 7 million in the second quarter of 2023.
Ram: MRM product sales in the second quarter, which include both toggle and <unk> <unk> revenue was $9 9 million compared to $13 4 million in Q2 of 'twenty three.
Ram: The decrease was the result of a decline in product sales due to the timing of customer demand.
Matt Tenario: Licensing, Royalty, Patent, and other revenue in the second quarter decreased to $0.7 million compared to $2.3 million in Q2'23 due to a decline in revenue from our RADHeart project. Turning to gross margin, our gross margin was 49% for the second quarter, down from 58.4% in Q2'23. The decrease was due to a decline in product sales and licensing revenue related to our Rad-Hard deal. GAAP operating expenses for the second quarter of 2024 were $8 million, compared to $7.6 million in the second quarter of 2023. The slight increase in OPEX was largely due to expenses related to our new XSPI family of SDT-MRAM products.
Ram: Licensing royalty patent and other revenue in the second quarter decreased to <unk> 7 million compared to $2 3 million in Q2 'twenty three due.
Ram: Due to a decline in revenue from our Rad hard projects.
Matt Tenorio: Turning to gross margin, our gross margin was 49% for the second quarter. Down from 58.4% in Q2 of 23. The decrease was due to a decline in product sales and licensing revenue related to our Radhard deal.
Ram: Turning to gross margin our GAAP gross.
Ram: Gross margin was 49% for the second quarter down.
Ram: Down from 58, 4% in Q2 'twenty three.
Ram: The decrease was due to a decline in product sales and licensing revenue related to our Rad hard deals.
Matt Tenorio: Gap operating expenses for the second quarter of 2024 were $8 million compared to $7.6 million in the second quarter of 2023. The slight increase in off-ex was largely due to expenses related to our new XSPI family of STT M-RAM products. Due to these factors, our second quarter results were a loss of $2.5 million or a loss of $0.12 per basic share within our guidance range of a loss of $0.09 to $0.14 based on $21.6 million weighted average basic shares outstanding. This compares the net income of $3.9 million, or $0.18 per diluted share, in the second quarter of 2023.
Ram: GAAP operating expenses for the second quarter of 2024 or $8 million compared to $7 6 million in the second quarter 2023.
Ram: The slight increase in Opex was largely due to expenses related to our new X Spi family of STP M Ram products.
Matt Tenario: Due to these factors, our second quarter results were a loss of $2.5 million, or a loss of $0.12 per basic share, within our guidance range of a loss of $0.09 to $0.14, based on 21.6 million weighted average basic shares outstanding. This compares to net income of $3.9 million, or $0.18 per diluted share, in the second quarter of 2023. Adjusted EBITDA was a negative $0.2 million, compared to $5.4 million in Q2-23. Looking ahead, we expect to see a modest improvement in our loss per share next quarter.
Ram: Due to these factors our second quarter results were a loss of $2 5 million or a loss of <unk> 12 per basic share within our guidance range of a loss of nine to.
Ram: 2014.
Ram: Based on 21 6 million weighted average basic shares outstanding.
Ram: This compares to net income of $3 9 million or <unk> 18 per diluted share in the second quarter of 2023.
Matt Tenorio: Adjusted EBITDA was a negative $0.2 million compared to $5.4 million in Q2 23. Looking ahead, we expect to see a modest improvement in our loss per share next quarter.
Ram: Adjusted EBITDA was a negative <unk> 2 million compared to $5 4 million in Q2 'twenty three.
Ram: Looking ahead, we expect to see a modest improvement in our loss per share next quarter.
Matt Tenorio: We're pleased that our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalence of $36.8 million, up from $34.8 million at the end of the prior quarter. Going forward, we continue to believe our capital is sufficient to meet our anticipated capital requirements for the next year.
Matt Tenario: We're pleased that our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalents of $36.8 million, up from $34.8 million at the end of the prior quarter. Going forward, we continue to believe our capital is sufficient to meet our anticipated capital requirements for the next. Cash flow generated from operations was $1.7 million for the second quarter. Turning to guidance.
Ram: We are pleased that our balance sheet remains strong and debt free.
Ram: We ended the quarter with cash and cash equivalents of $36 8 million up from $34 8 million at the end of the prior quarter.
Ram: Going forward, we continue to believe our capital is sufficient to meet our anticipated capital requirements for the next year.
Matt Tenorio: Cash flow generated from operations was $1.7 million for the second quarter.
Ram: Cash flow generated from operations was $1 7 million for the second quarter.
Matt Tenorio: Turning the guidance. As we mentioned on our last two earnings calls, we had anticipated lower revenue for the first half of 2024, which has proven to be true. Looking to the second half of the year, we still believe that we will begin to see a ramp in revenue as well as design winds, and we have already begun to see positive signs of recovery in inventory consumption of our customers. Taking these factors into consideration, we expect Q3 total revenue in the range of $11.5 million to $12.5 million and GAAP net loss per basic share to be between $0.5 million and $0.10 million.
Ram: Turning to guidance.
Matt Tenario: As we mentioned on our last two earnings calls, we had anticipated lower revenue for the first half of 2024, which has proven to be true. Looking to the second half of the year, we still believe that we will begin to see a ramp in revenue, as well as design wins, and we have already begun to see positive signs of recovery in inventory consumption by our customers, taking these factors into consideration. We expect Q3 total revenue in the range of $11.5 million to $12.5 million and Gap Net Loss per Basic Share to be between 5 cents and 10 cents.
Ram: As we mentioned on our last two earnings calls we had anticipated lower revenue for the first half of 2024, which has proven to be true.
Ram: Looking to the second half of the year, we still believe that we will begin to see a ramp in revenue as well as design wins and we have already begun to see positive signs of recovery and inventory consumption of our customers.
Ram: Taking these factors into consideration.
Ram: We expect Q3 total revenue in the range of $11 5 million to $12 5 million.
Ram: And GAAP net loss per basic share to be between five and.
Ram: <unk>.
Matt Tenorio: In summary, we remain optimistic for the second half of the year and remain focused on scaling our business and converting design winds to revenue. We are focused on growing our persistent toggle M-RAM and FTT M-RAM products and anticipate modest growth for our products for the remainder of this year. We also expect to see strong growth in our data center products in the second half with our high density FTT M-RAM. Overall, we remain confident in our ability to expand and scale our business in the second half of 2024.
Matt Tenario: In summary, we remain optimistic about the second half of the year and remain focused on scaling our business and converting design wins to revenue. We are focused on growing our Persist, Toggle M-RAM, and STT M-RAM products, and anticipate modest growth for our products for the remainder of this year. We also expect to see strong growth in our data center products in the second half with our high-density SDT MRAM. Overall, we remain confident in our ability to expand and scale our business in the second half of 2020. Operator, you may now open the line for questions. Thank you. And I'm sorry.
Ram: In summary, we remain optimistic for the second half of the year and remain focused on scaling our business and converting design wins to revenue.
Ram: We are focused on growing our persist tahoe amiram in FCT MRM products.
Ram: We anticipate modest growth for our products for the remainder of this year.
Ram: We also expect to see strong growth in our datacenter products in the second half with our high density <unk>.
Ram: Overall, we remain confident in our ability to expand and scale our business in the second half of 2024.
Operator: Operator, you may now open the line for questions. Thank you. In a third reminder, if you do have a question, simply press star 11 on your telephone and wait for your name to be announced. If you withdraw yourself from the queue, press Star 11 again. Please stand by for our first question.
Speaker Change: Operator, you May now open the line for questions.
Operator: Thank you. And as a reminder, if you do have a question, simply press star 11 on your telephone and wait for your name to be announced. To withdraw yourself from the queue, press star 11 again. Please stand by for our first. And he comes from the line of Quinn Bolton with Needham and Company. Please proceed.
Speaker Change: Thank you and as a reminder, if you do have a question simply press star one one on your telephone.
Speaker Change: Wait for your name to be announced to withdraw yourself from the queue Press Star one again.
Speaker Change: Please standby for our first question.
Speaker Change: Okay.
Quinn Bolton: Any comments from the line of Quinn Bolton with Needham and Company? Please proceed.
Speaker Change: And it comes from the line of Quinn Bolton with Needham <unk> Company. Please proceed.
Quinn Bolton: Hey guys, thanks for letting me ask a few questions. I just wanted to start. You mentioned some increasing design wind momentum, especially in Europe and APAC. I'm wondering if you could give us some more details on that. Are there particular applications for these designs? Is it a NOR flash replacement? Are there other applications? I assume a lot of these are sort of embedded industrial type designs, but I was wondering if you could give us some more, you know, more color, perhaps on some.
Sanjeev Aggarwal: Hey guys, thanks for letting me ask a few questions. I just wanted to start. You mentioned some increasing design momentum, especially in Europe and APEC. What are you to give us some more details there or their particular applications for these designs? Is it Norflash replacement? Are there other applications? I assume a lot of these are sort of embedded industrial type designs, but just wondering if you can give us some more, you know, more color perhaps on some of that design momentum?
Quinn Bolton: Hey, guys. Thanks for letting me ask a few questions just wanted to start.
Speaker Change: You mentioned, some increasing design win momentum, especially in Europe, and APAC wondering if could you give us some more details there are there particular applications.
Speaker Change: For these designs is it nor flash replacement or are there other applications I assume a lot of these are sort of embedded industrial type designs, but just wondering if you can give us some more.
Speaker Change: Yes, more color, perhaps on some of that design win momentum.
Sanjeev Aggarwal: Sure, Ken. I think, as you we have discussed in the past, these design ones are targeted towards the programmable logic controllers in the industrial automation area, and we are seeing them both in Japan as well as Europe. Also, we are seeing some traction with the FPGA companies and the aerospace and defense industry. So basically, we have three different areas where we are starting to see some traction with the FPGA, like you mentioned.
Sanjeev Aggarwal: Sure, Ken. I think, as we have discussed in the past, these design wins are targeted towards programmable logic controllers in the industrial automation area, and we are seeing them both in Japan as well as in Europe. And we are also seeing some traction with the FPGA companies and the aerospace and defense industry. So basically, we have three different areas where we are starting to see some traction.
Speaker Change: Sure Ken.
Speaker Change: I think as we have discussed in the past. These design wins are targeted towards the programmable logic controllers in the industrial automation area.
Speaker Change: And we're seeing them both in Japan, as well as Europe and also we are seeing some traction with the FPGA companies in the aerospace and defense index. So basically you have three different areas, where we're starting to see some traction with the FPGA like you mentioned.
Sanjeev Aggarwal: It's basically targeting Norflash replacement with the programmable logic controllers. So backing up a little bit, low density, SDM rampart basically has both interfaces compatible with Norflash as well as SRAM. So when you're looking at FPGA, that's where they're taking advantage of the Norflash type interface, and we're looking at programmable logic controllers that are taking advantage of our SRAM type interface. So those are the primary design when areas that we're looking at and what it goes that we're looking at.
Speaker Change: Basically targeting nor flash replacement.
Sanjeev Aggarwal: With the FPGA, like you mentioned, it's basically targeting NOR flash replacement. With the programmable logic controllers, so back up a little bit, our low-density STDM Rampart basically has both interfaces, compatible with NOR flash as well as SRAM. So when you're looking at FPGAs, that's where they're taking advantage of the NOR flash type interface. And when we're looking at programmable logic controllers, they're taking advantage of our SRAM type interface. So those are the primary design areas that we are looking at and the verticals that we are targeting.
Speaker Change: <unk> programmable logic controllers, so backing up a little bit our low density SDM rampart basically is more the interfaces comparable is not a flash as well as SRAM. So when youre looking at FPGA, that's where they're taking advantage of the nor flash type interface and we're looking at programmable logic controllers or taking advantage of our SRAM type interface. So.
Speaker Change: The primary design win area that we're looking at in verticals that we're looking at.
Sanjeev Aggarwal: Great, and just maybe a follow-up question: just you mentioned starting to see signs of momentum in the customer base in terms of the inventory digestion. Where do you think we are in that inventory digestion process, and perhaps more importantly, do you think you get back to sort of shipping in line with consumption? Say, by the end of the year, do you think this inventory burn for various customers potentially last into early 2025?
unknown: Great. And just maybe a follow-up question.
Speaker Change: Great and just.
Speaker Change: A follow up question just you.
Speaker Change: You mentioned starting to see signs of momentum in the customer base in terms of inventory.
Sanjeev Aggarwal: You mentioned starting to see signs of momentum in the customer base in terms of inventory digestion. Where do you think we are in that inventory digestion process? And perhaps more importantly, do you think you get back to sort of shipping in line with consumption, say, by the end of the year? Do you think this inventory burn for various customers potentially lasts into early 2025?
Speaker Change: <unk>, where do you think we are in that inventory digestion process and perhaps more importantly, do you think you get back to sort of shipping in line with.
Speaker Change: Consumption say by the end of the year or do you think this inventory burn.
Speaker Change: For various customers potentially last into early 2025.
Sanjeev Aggarwal: So we are seeing signals of inventory consumption. We are also seeing our customers placing orders with very short lead times. So even though our lead times will be 20 to 26, we'll get an order where they want us to fill the order within a week kind of time frame. So all of this is basically suggesting that our customers have inventory that is being consumed and they're hand to mouth, and just because they're trying to conserve their cash, we're getting the orders last minute.
Sanjeev Aggarwal: So, you know, we are seeing signals of inventory consumption. We are also seeing our customers placing orders with very short lead times. So, you know, even though our lead times will be 20 to 26, we'll get an order where they want us to fill the order within a week kind of time frame. So all of this is basically suggesting that, you know, our customers have inventory that is being consumed, and they're living hand to mouth.
Speaker Change: So we are seeing.
Speaker Change: <unk> of inventory consumption and we are also seeing our customers, placing orders with very short.
Speaker Change: Lead times.
Speaker Change: I mean, there are lead times will be 'twenty 'twenty six we will get an order where they wanted us to fill the order within a week kind of timeframe. So all of this is basically suggesting that.
Speaker Change: Our customers out of inventory that is being consumed in their hand to mouth and just because they're trying to conserve their cash we're getting the orders last minute. So I think the behavior is going to change over time, where they're really starting to see orders come in and they will want to build inventory on their side as well. So I think by the end of the year, we should see returning to normal.
Sanjeev Aggarwal: And just because they're trying to conserve their cash, we're getting the orders last minute. So I think the behavior is going to change over time where they're really starting to see orders come in, and they will want to build inventory on their side as well. So I think by the end of the year, we should see a return to normal lead times and inventories over here.
Sanjeev Aggarwal: So I think the behavior is going to change over time, where they're really starting to see orders come in, and they will want to build inventory on their side as well. So I think by the end of the year, we should see returning to normal lead times and inventories over here.
Speaker Change: Lead times on inventories over here.
Sanjeev Aggarwal: Great.
unknown: Great. And then I guess a couple for Matt, the gross margin down at 49%. I certainly understand the makeshift away from some of the royalty income is going to have a big impact on the gross margin. But it looks, even if I account for that mix, that the product gross margin was probably in the mid-upper 40s to get the blended gross margin at 49%. Can you just give us a sense of what's going on on the product side? Is that just purely absorption on lower revenue? Were there other issues that might have affected product gross margins in the quarter?
Matt Tenorio: And then I guess a couple for Matt, the gross margin down at 49%. I certainly understand the mixed shift away from some of the royalty income is going to have a big impact on the gross margin. But it looks even if I account for that mix that the product gross margin was probably in the mid upper 40s to get the blended gross margin of 49%.
Speaker Change: Great and then.
Speaker Change: A couple for Matt gross margin down at 49%.
Matt Tenorio: I certainly understand the mix shift away from some of the royalty.
Speaker Change: Income is going to have a big impact on the gross margin, but it looks even if I account for that mix that the product gross margin was probably in the.
Speaker Change: Mid upper Forty's.
Speaker Change: Did you get the blended gross margin of 49% can you just give us a sense on what's going on on the product side is that just purely absorption on lower revenue.
Matt Tenorio: Can you just give us a sense of what's going on on the product side? Is that just purely absorption on lower revenue, or are there other issues that might have affected product gross margin in the quarter?
Speaker Change: Were there other issues that might have affected product gross margin.
Matt Tenario: That's a great question and I think you've got it, but really, what we're seeing is a mix of some of the lower margin products and then also because we are running lower volume, we are having to absorb our fixed costs over that volume, but we do expect that to improve as the year progresses.
Speaker Change: Quarter.
Matt Tenorio: That's a great question. And I think you've got it. But really, also what we're seeing is a mix to some of the lower margin products. And then also because we are running lower volume, we are having to absorb our fixed costs over that volume.
Speaker Change: As a great question and I think you've got it.
Speaker Change: But really also what we're seeing is a mix to some of the lower margin products.
Speaker Change: And then also because we are running lower volume.
Speaker Change: Our having to absorb our fixed costs over that volume, but we do expect that two to.
Matt Tenorio: But we do expect that to improve. of Year Progressive.
Speaker Change: To improve as the year progresses.
unknown: Got it. Thank you very much.
Matt Tenorio: Thank you very much. Thank you.
Speaker Change: Got it thank you very much.
Speaker Change: Thank you.
Richard Shannon: Our next question comes from the line of Richard Shannon with Craig Hallen. Please proceed.
Operator: Our next question comes from the line of Richard Shannon with Craig Hallon. Please proceed.
Speaker Change: Our next question comes from the line of Richard Shannon with Craig Hallum. Please proceed.
Speaker Change: Okay.
Richard Shannon: Good guys, thanks for letting me ask a couple of questions. First of all, I guess it's just on the third quarter guidance, trying to get a try to fit this into the theme here of second half improving our first half. I guess I want to get a sense of whether products is expected to grow at all sequentially, or is this all coming from the license and royalty bucket.
Richard Cutts Shannon: Great guys, thanks for letting me ask a couple questions. First of all, I guess it's just on the third quarter guidance, trying to fit this into the theme here of the second half improving over the first half. I guess I want to get a sense of whether products are expected to grow at all sequentially, or is this all coming from the license and royalty bucket?
Richard Cutts Shannon: Great guys. Thanks for letting me ask a couple of questions.
Richard Cutts Shannon: First of all I guess is just on the third quarter guidance trying to get a trying to fit this into the theme here of the second half improving over the first half.
Speaker Change: I guess I wanted to get a sense of.
Speaker Change: Whether products is expected to grow at all sequentially or is this all coming from the licensing.
Speaker Change: License and royalty bucket.
Sanjeev Aggarwal: Yes, we are expecting our product revenue to go up sequentially.
Matt Tenorio: Yes, we are expecting our product revenue to go up sequentially. Okay.
Speaker Change: Yes, we are expecting our product revenue to go up sequentially.
unknown: Okay, and can you characterize whether there's, I assume there's very little, if any, persist revenues on there, but how about, you know, toggle versus high-density SDT? Is there any pickup in the high-density stuff, or is it all toggle? Well, I think
Matt Tenorio: And can you characterize whether there's, I assume there's very little if any persist revenue there, but how about, you know, toggle versus high density SDT, Zerni, pick up, pick up in the high density stuff or is it all toggle? Well, I think, as we mentioned, we do expect high density SDT products to ramp up as well in the next half. Okay. Fair enough.
Speaker Change: Okay and can you characterize whether there's I assume there's very little if any persist revenues in there, but how about.
Speaker Change: Toggle versus high density STG is there any pick up pick up in the high density suffer as it all toggle.
Sanjeev Aggarwal: Well, I think, as we mentioned, we do expect high-density STT products to ramp up as well in the next year.
Speaker Change: Well I think as we mentioned, we do expect high density <unk> products to ramp up as well in the.
Speaker Change: In the next half.
Speaker Change: Okay Fair.
unknown: Fair enough. Sanjeev, maybe this is a kind of a multi-part question. You're kind of looking at some of your major projects that are recognized in the licensing and royalty bucket here, specifically the Rathard projects and contract you announced, I think, last week, maybe. How do we think about the revenue stream here, you know, going forward, comparing it to what we've seen over the past year, year, year and a half or so? And then how long do these contracts, I think you've talked about three of them, go on for?
Speaker Change: Fair enough.
Richard Shannon: Sadji, maybe a kind of a multi-part question you're kind of looking at your, some of your major projects that are recognized in the licensing royalty bucket here, especially the Radhard projects in contract. You announced, I think, the last week maybe. How do we think about the revenue stream here, you know, going forward, comparing it to what we've seen over the past year, year, year and half or so? And then how long do these contracts? I think you've talked about three of them. How long do they go on for?
Speaker Change: Sanjay maybe a kind of a multipart question here kind of looking at your <unk>.
Sanjay: Some of your major projects that are recognized in the licensing and royalty bucket here, especially with the Rad hard projects.
Speaker Change: Contract you announced I think last week, maybe how do we think about the revenue stream here.
Speaker Change: Going forward comparing it to what we've seen over the past year year year, and a half or so.
Speaker Change: And then how long do these contracts I think you've talked about three of them how long do they go on tour.
Sanjeev Aggarwal: Yeah, how are you doing, Richard? Thank you. You know, with our Radhard revenue, as you have talked in the past, there is always a little bit lumpy, but we have talked about two Radhard projects right now. One is the ongoing one where we're building out days, add off 64 megabit as CTM RAM for Honeywell. And that project is basically reaching a point where we would, where I think Honeywell would be ready to qualify those devices once they complete processing in the individual fab. As far as the QuickLogic project is concerned, building out this strategic Radhard FPGA.
Sanjeev Aggarwal: Yeah, how are you doing, Richard? Thank you. You know, with our Red Hat revenue, as we have talked about in the past, it is always a little bit lumpy. But we have talked about two Red Hat projects right now. One is the ongoing one where we are building out an Ad-hoc 64 megabit STDM RAM for Honeywell.
Speaker Change: Yes, how are you doing thank you.
Speaker Change: Yeah.
Speaker Change: Without <unk> revenue as we've talked in the past there is always a little bit lumpy, but we have talked about.
Speaker Change: Two reinhart projects right now one is the ongoing one where we're building out is paradox 64 megabit.
Speaker Change: City Amazon for Honeywell and that project is basically reaching a point, where we were I think honeywell will be ready to quantify.
Sanjeev Aggarwal: And that project is basically reaching a point where we would, where I think Honeywell would be ready to qualify, qualify those devices once they complete processing in the individual fabs. As far as the QwikLogic project is concerned, building out this strategic RADHARD FPGA, it is a project in several phases, right? So this is the next phase that has been renewed. Basically, as QwikLogic announced, it's $5.2 million. Everspin's share is $1.8 million, which we announced in the press release.
Speaker Change: Qualify those devices.
Speaker Change: Meat processing and the individual pads.
Speaker Change: As far as a good logic project.
Speaker Change: Our strategic Rad hard FPGA.
Sanjeev Aggarwal: It is a project in several phases, right? So this is the next phase that has been renewed. Basically, as the QuickLogic announced, it's $5.2 million. I wish when share is 1.8 million dollars that we announced on the in the press release. And we expect you, you know, to continue this project going forward. What this covers so far is just a design part. We still need to go ahead and build the device and then characterize it and bring it to production. I think those phases will get funded as we keep moving forward. But for now, the funding on this phase is simply to complete the design.
Speaker Change: In several cases right. So this is the next phase that has continued.
Speaker Change: Basically as quick logic announced its $5 $2 million.
Speaker Change: <unk> sure.
Speaker Change: $8 million that we announced on the.
Speaker Change: In the press release, and we expect to.
Speaker Change: Continuing this project going forward.
Sanjeev Aggarwal: And we expect to continue this project going forward. What this covers so far is just the design part. We still need to go ahead and build the device, and then characterize it, and bring it to production. I think those phases will get funded as we keep moving forward. But for now, the funding for this phase is simply to complete the design.
Speaker Change: This covers so far is just the design part.
Speaker Change: You still need to go ahead, and build or do I characterize that bring into production.
Speaker Change: Those pages really get funded.
Speaker Change: Moving forward, but for now the fun.
Sanjeev Aggarwal: In anticipated simply complete the design.
Sanjeev Aggarwal: Okay. Is that something that lasts through the end of the year, specifically to the strategic Radhard contractors extend beyond that? They'd extend into Q1 as well. Okay.
Sanjeev Aggarwal: Okay, is that something that lasts through the end of the year, specifically the strategic Red Heart contract, or does it extend beyond that?
Speaker Change: Okay is that something that last through the end of the year, specifically to the strategic Rad hard contractors extend beyond that.
Sanjeev Aggarwal: It extends into Q1 as well, Richard.
Speaker Change: It extends into Q1 as well Richard.
Richard Cutts Shannon: Okay, okay, fair enough then. Maybe touching on the Persist product line, some nice commentary here. I just want to get a sense of how we think of the scale of the revenue potential over the next several quarters relative to the product revenues you had today. Obviously, hopefully, building nicely on what you built, a nice space you haven't toggled so far. Why do we think about, you know, the potential for the design ones you have and those that you're expecting to close on soon?
Richard Shannon: Okay, fair enough then.
Richard Cutts Shannon: Okay, Okay fair enough.
Richard Shannon: Maybe touching on the persistent product lines and those commentary here, I just want to get a sense of how do we think of the scale of the revenue potential over the next several quarters relative to the product revenues you had today. Obviously, hopefully the building nicely on what you built, nice space you haven't toggled so far.
Richard Cutts Shannon: Maybe touching on the persist product lines, some nice commentary here.
Speaker Change: I just wanted to get a sense of how do we think of the scale of the revenue potential over the next several quarters relative to the product revenues you had today, obviously allstate is building nicely.
Speaker Change: Nice space you have to toggle so far how do we think about the potential up to the design wins you have in those that you are expecting to close on soon.
Sanjeev Aggarwal: Why do we think about, you know, the potential for the design when you have it in those that you're expecting to close on soon?
Richard Cutts Shannon: I mean, can we get to, you know, revenue levels in say a couple years that's half of what toggle is doing today? Or any other ways you can characterize how we can try to quantify and build our models for this new product family?
Sanjeev Aggarwal: I mean, can we get to, you know, revenue level in, say, a couple of years that's half of what HOG was doing today? Or anyways, you characterize how we can try to quantify and build our models for this new product.
Speaker Change: Can we get to revenue level and say a couple of years, that's half of what Todd was doing today or any way to characterize how we can try to quantify and build our models for this new product family.
Sanjeev Aggarwal: So, without giving any guidance, Richard, using Anuj's phrase. Yes, that is our desire, right? We would like to reach a toggle type, or 50% of toggle type revenues over here in the next couple of years.
Sanjeev Aggarwal: So without giving any guidance, Richard, using Anuj's phrase. Yeah, that is our desire, right? We would like to reach toggle type or 50% of toggle type revenues over here in the next couple of years. We will start converting some of the design wins towards the second half of the year, more probably towards the end of 2024 and early 2025. So I think meaningful revenue will be only in 2025, but there will be some recognition in 2024 as well.
Speaker Change: So without giving any guidance Richard using <unk>.
Speaker Change: Okay.
Richard Cutts Shannon: Yes that is our desire right have you would like to reach a total day about 50% of our target type revenues over here in the next couple of years.
Sanjeev Aggarwal: We will start converting some of the design trends to a second half over here, more probably to the end of 24, early 2025. So I think meaningful revenue would be only 25, but there will be some recognition in 2024 as well. Okay, for now.
Speaker Change: We will start converting some of the design wins.
Speaker Change: Towards the second half of the year more probably towards the end of 'twenty four.
Speaker Change: Early 2025, so I think meaningful revenue with nearly 25, but there will be some.
Speaker Change: Recognition in 2024 as well.
unknown: Okay, fair enough. I think that's all the questions. I will jump along, guys.
Speaker Change: Okay Fair enough I think thats all the questions for me I will jump out of line guys. Thank you.
Richard Shannon: I think that's all the questions. I will jump it along, guys. Thank you.
Operator: Thank you. Thank you, Richard. Thank you, and, as a reminder,
Operator: And as a reminder, ladies and gentlemen, if you do have a question, simply press star one one to get in the queue. And as I see no further questions in the queue, I will conclude the Q&A and conference for today. Thank you to all who participated, and you may now disconnect.
Speaker Change: Thanks, Richard Thank you and as a reminder, ladies and gentlemen, if you do have a question simply press star one one to get in the queue.
Operator: And as I remind our ladies and gentlemen, if you do have a question, simply press star 11 to get in the queue.
Speaker Change: Okay.
Operator: And as I see no further questions in the queue, I will conclude the Q&A and conference for today. Thank you to all who participated.
Speaker Change: And as I see no further questions in the queue. We will conclude the Q&A and conference for today. Thank you to all who participated and you may now disconnect. Thank you.
Operator: And you may now disconnect. Thank you.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.