Q4 2024 Ultra Clean Holdings Inc Earnings Call

Yeah.

Unknown Executive: Good afternoon, ladies and gentlemen, and welcome to the Ultra Clean Technologies fourth quarter and full year 2024 earnings call and webcast. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session.

Good afternoon, ladies and gentlemen, and welcome to the ultra clean technology for fourth quarter and full year 2024 earnings call and webcast.

This time all lines are in listen only mode.

Following the presentation, we will conduct a question and answer session.

Unknown Executive: If at any time during this call you require immediate assistance, please press star zero for the operator.

Any time during this call you require immediate assistance. Please press star zero for the operator.

Unknown Executive: This call is being recorded in Monday, February 24th, 2025.

This call is being recorded and Monday February 24th 2025.

Rhonda Bennetto: I would now like to turn the conference over to Rhonda Bennetto, Investor Relations, please go ahead. Thank you, Operator. Good afternoon, everyone, and thank you for joining us this afternoon.

Speaker Change: I would now like to turn the conference over to Rhonda been out, though Investor Relations. Please go ahead.

Rhonda Been: Thank you operator, good afternoon, everyone and thank you for joining US. This afternoon with me today are Sheri Savage, Chief Financial Officer, and Chris Cook, President up our products Division and Sheryl can I, sorry, our VP of marketing our CEO, Jim shall hammer is unable to join our call today as he is suffering from a temporary flare up in his back incentives.

Rhonda Bennetto: With me today are Sheri Savage, Chief Financial Officer, and Kris Cook, President of our Products Division, and Cheryl Knettler, our VP of Marketing.

Rhonda Bennetto: Our CEO, James Scholhamer, is unable to join our call today as he's suffering from a temporary flare-up in his back and sends his sincere regret.

Speaker Change: Okay great.

Rhonda Bennetto: Sheri will begin with some prepared remarks about the business and follow that with a financial review, then we'll open up the call for questions. Today's call contains forward-looking statements that are subject to risks and uncertainties. For more information, please refer to the risk factors section in our SEC filings. All forward-looking statements are based on estimates, projections, and assumptions as of today, and we assume no obligation to update them after this call.

Speaker Change: Cary will begin with some prepared remarks about the business and followed that with the financial review then we'll open up the call for questions.

Speaker Change: Today's call contains forward looking statements that are subject to risks and uncertainties.

Speaker Change: More information please refer to the risk factors section in our SEC filings.

Speaker Change: All forward looking statements are based on estimates projections and assumptions as of today and we assume no obligation to update them. After this call.

Rhonda Bennetto: Discussion of our financial results will be presented on a non-GAAP basis. A reconciliation of GAAP to non-GAAP can be found in today's press release posted on our website.

Speaker Change: Discussion of our financial results will be presented on a non-GAAP basis, a reconciliation of GAAP to non-GAAP can be found in today's press release posted on our website and with that I'd like to turn the call over to Sherry Sherry.

Sheri Savage: And with that, I'd like to turn the call over to Sheri. Sheri?

Sheri Savage: Good afternoon, everyone, and thank you for joining our call today. I will begin with a brief summary of our 2024 Financial and Operations Highlights, and then outline our thoughts on the short and long-term state of the industry landscape. After that, I'll provide more detailed financial review, and then we will open the call up for questions. UCT executed at every level in 2024, growing 21% over the prior year and significantly outperforming our customers, our closest competitors, and the overall WFP market. Our unique and extensive suite of vertically integrated offerings, global manufacturing footprint, and ability to quickly flex to meet customer demands enabled us to capitalize on several windows of opportunity throughout the year.

Sherry Sherry: Good afternoon, everyone and thank you for joining our call today I will begin with a brief summary of our 2024 financial and operations highlights.

Sherry Sherry: And then outline our thoughts on the short and long term state of the industry landscape after.

Sherry Sherry: After that I'll provide more detailed financial review and then we will open the call up for questions.

You see T executed at every level in 2024 growing 21% over the prior year and significantly outperforming our customers our closest competitors in the overall wf feed market.

Sherry Sherry: Our unique and extensive suite of vertically integrated offerings global manufacturing footprint and ability to quickly flex to meet customer demand enabled us to capitalize on several windows of opportunity throughout the year Eric.

Sheri Savage: Areas where we played an instrumental role included growth at the leading edge driven by investments our customers made and continue to make within the artificial intelligence space through our Czech Republic site and our long established in China for China manufacturing business supplying domestic Chinese OEMs in country. Overall, UCT was specifically positioned with our largest customers to quickly align and support their technological roadmap at every turn throughout the year. As the world demands higher quantities of chips, chip manufacturers demand more and higher quality manufacturing equipment and processes. As technology evolves, UCT is evolving with it. The drivers of our industry, currently led by artificial intelligence, will play a profound role in transforming economies, businesses and societies over time.

Sherry Sherry: Areas, where we played an instrumental role included gross at the leading edge driven by investments our customers made and continue to make within the artificial intelligence space to our Czech Republic site, and our long established in China for China manufacturing business supplying domestic Chinese Oems in country.

Sherry Sherry: Overall, UCT was specifically positioned with our largest customers to quickly align and support their technological roadmaps at every turn throughout the year.

Sherry Sherry: As the world demands higher quantities of chips shipped beta factors demand more and higher quality manufacturing equipment and processes as technology evolves you see T is evolving with it did.

Sherry Sherry: The drivers of our industry currently led by artificial intelligence will play a profound role in transforming economies businesses and societies over time.

Sheri Savage: We are in the dugout and the first inning of this new world in overall spend. To see mass adoption of radical new technologies, we need to see large enterprise use cases and integration at scale. AI will not affect the entire value chain equally, or at the same time. UCT is in this for the long haul and will benefit through the various growth stages, albeit in waves and to varying degrees at first. To measure success, one quarter time would not truly reflect the overall value of the contribution we will make over the long term. We know that initial proliferation of AI use cases will require more chips in smartphones and personal computers to run applications.

Sherry Sherry: We're in the dug out in the first inning of this new world and overall spend.

Just see mass adoption of radical new technologies, we need to see large enterprise use cases and the integration at scale.

Sherry Sherry: AI will not affect the entire value chain equally or at the same time, you see to using this for the long haul and will benefit through the various gross stages, albeit in waves and two varying degrees at first.

Speaker Change: Is your success one quarter at a time would not truly reflect the overall value of the contribution we will make over the long term.

Speaker Change: will require more chips in smartphones and personal computers to run applications.

Sheri Savage: UCT's unique portfolio of vertically integrated product and service solutions are critical catalysts in helping our customers manage the expanding complexity and growing demand for all manner of devices and applications. Turning to the semiconductor industry as a whole, advancements are progressively enabling innovations in materials, science, and engineering, where our customers have clear leadership. Additionally, our customers are seeing opportunities in advanced depth and edge applications that are set to encompass the growing share of WFE. And as leading edge logic transitions to gate all around nodes, the total available market expands dramatically for our customers and for UCT.

Speaker Change: UCT's unique portfolio of vertically integrated product and service solutions are critical catalysts in helping our customers manage the expanding complexity and growing demand for all manner of devices and applications.

Speaker Change: Turning to the semiconductor industry as a whole, advancements are progressively enabling innovations in materials, science, and engineering, where our customers have clear leadership.

Speaker Change: Additionally, our customers are seeing opportunities in advanced depth and edge applications that are set to encompass the growing share of WFE. And as leading-edge logic transitions to gate all-around nodes, the total available market expands dramatically for our customers and for UCT.

Sheri Savage: Our innovative technology has expanded our engagement beyond hardware and is supporting our customers recipe development and optimization. In the shorter term, as reflected in our guidance, we are experiencing some air pockets after an extraordinary growth year. AI represents incredible opportunities, but as noted, until such use cases reach enterprise scale, there will be ups and downs. We are experiencing some unexpected demand softness from our In China for China business relating to extended qualification timelines and some inventory digestion. Right now, our focus remains on driving efficiencies and keeping a close eye on our cost structure to ensure we continue delivering value to our stakeholders.

Speaker Change: Our innovative technology has expanded our engagement beyond hardware into supporting our customers' recipe development and optimization.

Speaker Change: In the shorter term, as reflected in our guidance, we are experiencing some air pockets after an extraordinary growth year. AI represents incredible opportunities, but as noted, until such use cases reach enterprise scale, there will be ups and downs.

Speaker Change: We are experiencing some unexpected demand softness from our In China for China business relating to extended qualification timelines and some inventory digestion.

Speaker Change: Right now, our focus remains on driving efficiencies and keeping a close eye on our cost structure to ensure we continue delivering value to our stakeholders.

Sheri Savage: We are very energized by the many opportunities we see heading our way. UCT's longstanding leadership role in the semiconductor equipment manufacturing space will play a pivotal role in advancing the industry to new heights in the coming years.

Speaker Change: We are very energized by the many opportunities we see heading our way. UCT's long-standing leadership role in the semiconductor equipment manufacturing space will play a pivotal role in advancing the industry to new heights in the coming years.

Sheri Savage: And now, I'll switch to a review of our financial performance and outlook, where I will be referring to non-GAAP numbers only. For the fourth quarter, total revenue came in at $563.3 million, compared to $540.4 million in the prior quarter. Revenue from products increased to $503.5 million from $479 million last quarter, due to increasing demand for advanced packaging applications and other AI-related processes, including CMP, which offsets and softening from the domestic China market. Services revenue was $59.8 million, compared to $61.4 million in Q3.

Speaker Change: And now, I'll switch to a review of our financial performance and outlook, where I will be referring to non-GAAP numbers only.

Speaker Change: Revenue from products increased to $503.5 million from $479 million last quarter due to increasing demand for advanced packaging applications and other AI-related processes, including CMP, which offsets some softening from the domestic China market.

Speaker Change: Services revenue was $59.8 million compared to $61.4 million in Q3. For the full year, total revenue was $2.1 billion compared to $1.7 billion in 2023.

Sheri Savage: For the full year, total revenue was $2.1 billion, compared to $1.7 billion in 2023. Total gross margin for the fourth quarter was 16.8% compared to 17.8% last quarter. Products gross margin was 15.2% compared to 16.1% and services was 29.8% compared to 30.5% in Q3. Margins can be influenced by fluctuations in volume, mix, and manufacturing region, as well as material and transportation costs. So there will be variances quarter to quarter. Total gross margin for 2024 was 17.5% compared to 16.6% in the prior year. Operating expense for the quarter was $55.3 million compared to $56.5 million in Q3.

Speaker Change: Total gross margin for the fourth quarter was 16.8% compared to 17.8% last quarter. Products gross margin was 15.2% compared to 16.1% and services was 29.8% compared to 30.5% in Q3.

Speaker Change: Margins can be influenced by fluctuations in volume, mix, and manufacturing region, as well as material and transportation costs. So there will be variances quarter to quarter.

Speaker Change: Total gross margin for 2024 was 17.5% compared to 16.6% in the prior year.

Speaker Change: Operating expense for the quarter was $55.3 million compared to $56.5 million in Q3.

Sheri Savage: As a percentage of revenue, operating expense decreased to 9.8% from 10.5% in Q3. For the year, operating expense as a percentage of revenue decreased to 10.6% from 11.6% in the prior year. Total operating margin for the quarter came in at 7%, compared to 7.3% in the third quarter. Margin from our products division was 6.6% compared to 7% and services margin was 9.7% compared to 10.1% in the prior quarter. The overall margin decrease was largely driven by higher mix of our products revenue.

Speaker Change: Total operating margin for the quarter came in at 7%, compared to 7.3% in the third quarter.

Speaker Change: Margin from our products division was 6.6% compared to 7% and services margin was 9.7% compared to 10.1% in the prior quarter. The overall margin decrease was largely driven by higher mix of our products revenue.

Sheri Savage: For the full year, operating margin increased to 6.9% from 4.9% in the prior year due to higher overall revenue levels and increased efficiency. Our tax rate was 14.5% this quarter compared to 27.1% last quarter as we finalized our full year tax rate at 21.1%. Our mix of earnings between higher tax jurisdictions and lower tax jurisdictions can cause our tax rate to fluctuate throughout the year. For 2025, we expect our tax rate to be in the low to mid 20s. Based on 45.4 million shares outstanding, earnings per share for the quarter were $0.51 on net income of $22.9 million, compared to $0.35 on net income of $15.9 million in the prior quarter, primarily due to the lower tax rate and lower operating expense on increased revenue.

Speaker Change: Our tax rate was 14.5% this quarter compared to 27.1% last quarter, as we finalized our full year tax rate at 21.1%.

Speaker Change: Our mix of earnings between higher-tax jurisdictions and lower-tax jurisdictions can cause our tax rate to fluctuate throughout the year. For 2025, we expect our tax rate to be in the low to mid-20s.

Speaker Change: Based on 45.4 million shares outstanding, earnings per share for the quarter were $0.51 on net income of $22.9 million, compared to $0.35 on net income of $15.9 million in the prior quarter, primarily due to the lower tax rate and lower operating expense on increased revenue.

Sheri Savage: For the full year, earnings per share was $1.44 on net income of $65.2 million, compared to $0.56 on net income of $25.2 million in 2023. Turning to the balance sheet, our cash and cash equivalents were $313.9 million compared to $318.2 million in Q3. Cash flow from operations was $17.1 million compared to $14.9 million last quarter, primarily due to higher net income and a decrease in inventory.

Speaker Change: For the full year, earnings per share was $1.44 on net income of $65.2 million, compared to $0.56 on net income of $25.2 million in 2023.

Speaker Change: Turning to the balance sheet, our cash and cash equivalents were $313.9 million compared to $318.2 million in Q3.

Speaker Change: Cash flow from operations was $17.1 million compared to $14.9 million last quarter, primarily due to higher net income and a decrease in inventory.

Sheri Savage: For the full year, cash flow from operations was $65 million, compared to $135.9 million in the prior year. As mentioned earlier, the growth we saw last year supporting AI buildouts should stay around current levels with some up and downs as the industry prioritizes its spending patterns. We are seeing a reduction in demand from our domestic China customers as qualification periods are taking longer than originally planned, and we presume they are consuming inventory purchased in 2024.

Speaker Change: For the full year, cash flow from operations was $65 million, compared to $135.9 million in the prior year.

Speaker Change: We are seeing a reduction in demand from our domestic China customers, as qualification periods are taking longer than originally planned, and we presume they are consuming inventory purchased in 2024.

Sheri Savage: Recognizing these are likely short-term headwinds, but with limited visibility and no clear indication that the industry is in full recovery mode, we are taking a proactive approach to maintaining our profitability and long-term growth. As part of this effort, we are conducting a comprehensive review of our expense structure and evaluating balance sheet alternatives to optimize financial performance.

Speaker Change: Recognizing these are likely short-term headwinds, but with limited visibility and no clear indication that the industry is in full recovery mode, we are taking proactive approach to maintaining our profitability and long-term growth.

Speaker Change: As part of this effort, we are conducting a comprehensive review of our expense structure and evaluating balance sheet alternatives to optimize financial performance.

Sheri Savage: We project total revenue for the first quarter of 2025 between $505 million and $555 million. We expect EPS in the range of 22 cents to 42 cents.

Speaker Change: We project total revenue for the first quarter of 2025 between $505 million and $555 million. We expect EPS in the range of $0.22 to $0.42. And with that, I'd like to turn the call over to the operator for questions.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number 1 on your touchtone phone. You will hear a prompt that your hand has been raised.

Speaker Change: Should you wish to decline from the polling process, please press star followed by the number 2.

Speaker Change: If you are using a speakerphone, please make sure to lift your handset before pressing any keys.

Speaker Change: Your first question comes from the line of Krish Sankar from TD Cowen. Please go ahead.

Speaker Change: Thanks for taking my question. I have a few of them, Sheri. Number one, how much is the sales to China semi-cap customers, the AMEX P.O. Techs of the world in the December quarter and how much was it in all of calendar 24?

Speaker Change: Yeah, generally, we were about $40 million for the Q4 timeframe.

For the year, it was about $215 million.

215

Yeah.

Speaker Change: No, that wasn't really factored in at this point, but I'm going to turn it over to Chris Cook to answer a little bit more about China.

Yep.

Speaker Change: Thanks, Chris. Chris Cook here. Yeah, I mean, we have not factored that in. We've seen a very strong 2024 up through the end of Q3. Then we started seeing softness in Q4 that extends through kind of the first half of the year of 2025.

Speaker Change: Just to clarify, the softness and digestion you're talking about is more with...

You're China's semi-conductor customers, not your semi-cab customers, right?

The semi-cab customers, there was a combination of two factors.

We have a

Speaker Change: Customer in particular that continues to have ramp issues at one of their large customers But in addition to that we see overall kind of softening and demand partially due to just kind of organic demand and and also

Speaker Change: some buildup in inventory that is well known to have occurred through 2024. We expect to see some recovery in the second half of the year as we work through both those issues and start to get more visibility into greater demand.

Speaker Change: Gotcha, and then just one last question, Chris, just wanted to check, so...

Speaker Change: You know, obviously, you know, in December, we had that export control restrictions and some of your China semi-cap customers were on that entity list. So I was assuming you cannot ship to them, but are you telling me you're still shipping to them? I'm just trying to wonder if there is a risk to that $215 million that you did last year when you go into 2025.

Speaker Change: No, we're not affected by that, of course. As you can imagine, we're all over those developments, but they did not impact our shipments, just given our footprint and how we manufacture and deliver those products locally in China.

Speaker Change: Yeah, Chris, I'll add on a little bit. We've done extensive analysis surrounding our export control and our shipments within China are encapsulated within China and with the manufacturing and engineering happening in China. So there's no back and forth between the U.S. and China at this point. So as a result that has allowed us to continue to ship to those specific customers.

Got it, got it. Thanks, Shirdi. Thanks, Chris.

Thank you.

Speaker Change: Your next question comes from the line of Charles Shee from Needham. Please go ahead.

Charles Shee: Hey, good afternoon. I think so far I've heard three, probably three, independent issues related to your China for China business.

Charles Shee: One, a little bit of customer specifics, seems like one customer has some.

Charles Shee: Really just wanted to understand relative to let's say a quarter.

Charles Shee: Changed thank you.

Charles Shee: Yeah. So.

Charles Shee: By the way Thank you Charles.

This is Chris Cook and I.

Charles Shee: I I would rank those in order.

Charles Shee: As you described them actually the customer specific.

Charles Shee: Ramp issue that we expect to too.

Charles Shee: To be resolved in the second quarter was a what was a hit.

Charles Shee: Followed by a blend of the inventory and demand corrections that we see and obviously to the extent that our customers burned through that local inventory that shows up in reduced demand for us and excess inventory burn.

So it's a combination of those three in that order.

Charles Shee: Got it so let's let's.

Charles Shee: Let's say if you take out that our China for China business.

Charles Shee: What would the guidance be like I mean for the ex China business from Q4 into Q1.

Charles Shee: Do you still see sequential growth or what what's the picture there.

Charles Shee: Oh I would say.

Charles Shee: We're not growing sequentially, where we're off and.

Charles Shee: We expect those.

Those things to be resolved, we do expect for recovery in the second half.

Charles Shee: But we'll continue to see softness through the first half of the year.

Charles Shee: No Chris I missed the ex China business, the non China business I was trying to ask yes from Q4 to Q1, what's embedded in guidance.

Charles Shee: Thanks, Greg.

Charles Shee: Yeah, sorry, I misunderstood the question Yeah, we're flattish.

Charles Shee: Okay.

Charles Shee: Okay, maybe last one for me the gross margin for Q4.

Charles Shee: And it seems like the implied gross margin guidance in Q1.

Charles Shee:

Charles Shee: Obviously, you don't really guide to gross margin I heard you you were talking about product versus service mix seems like a little bit lighter than you thought about that but the product product gross margin it looks like a little bit lighter as well, what's the reason for that that gross margin.

Charles Shee: The weakness.

Charles Shee: In a product.

Speaker Change: Hi, Charles Yeah. The really the key thing is the mix of the products that got shipped and where are they got shipped from so obviously with China being a little bit lower we started to see that in Q4 and Thats a high margin business.

Speaker Change: We also saw some of our other higher margin products be a little bit lighter for the quarter. So I'm also being at year end. We did have some additional expenses surrounding just truing up some of our inventory and things like that so that's what really affected it we see it somewhat flat going into Q1, and we will continue to.

Speaker Change: Looking at our cost structure with a close eye and make sure that we continue to help that as we move through the year as well.

Speaker Change: Alright, thank you.

Speaker Change: Your next question comes from the line of Christian Schwab from Craig Hallum Capital Group. Please go ahead.

Christian Schwab: Great. Thanks.

Speaker Change: Sure.

Speaker Change: You've kind of implied.

Speaker Change: Oh.

Speaker Change: Anyway so.

Speaker Change: Second half is stronger than the first half, but you're kind of implying kind of.

Speaker Change: Flattish type of revenue I didn't know if you applied for a year or so.

Speaker Change: Yes.

Speaker Change: Revenue in the first half.

Speaker Change: They get up in the second half.

Speaker Change: Are you assuming that that revenue year over year.

Hi, Dan.

Dan: Flat ish is that what you were trying to say.

Dan: No I think we're we're assuming right now that the first half is somewhat flat. We obviously don't have a crystal ball I don't know the second half, but I think you know we're we're we're basing it on everything else that everybody else is putting out there that hopefully the second half is a little bit higher but obviously, we'll continue.

Dan: To attract that quite closely and look at our cost structure as we move through that but for now we think the first half is going to be somewhat flat.

Dan: Okay, and then as far as like the real driver.

Dan: One.

Dan: Segment or another.

Inside that value chain.

Dan: More important to you.

Dan: Where do you have design wins with leading customers.

Dan: More positively impact your revenue.

Dan: First I'd say growth and another in other words.

Dan: As leading foundry logic.

Dan: Shrank.

Dan: Yes.

Dan: <unk>.

Dan: And high bandwidth memory et cetera.

Dan: No.

Dan: What should we be monitoring.

Dan: If it shows up in your business, if they chose them elsewhere.

Cheryl: Hi, Christian this is Cheryl.

Speaker Change: Obviously, we've seen a benefit from the high bandwidth memory, both from the packaging side as well as from the expansion in DRAM.

Speaker Change: So we can continue to see that as a contributor and we also see the transition for our gate all around and that the transition.

Speaker Change: Transition to two nanometer as a benefit to us as well as those higher deposition and etch than the previous node.

Speaker Change: Okay.

Speaker Change: Great Alright, perfect no other questions. Thank you.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: Your last question comes from the line of Edward Yang from Oppenheimer. Please go ahead.

Edward Yang: Hi, Sherri you mentioned.

Edward Yang: A comment about balance sheet alternatives I was wondering if you could clarify that.

Speaker Change: Yeah, we're just obviously the market has.

Speaker Change: Been pretty open with them being at remaining open from a debt and equity perspective for us in general, but we are continuing to look at our capital structure, we want to have flexibility with our working capital.

Speaker Change: Honestly, making other M&A potentials in the future and increasing our cash flow through lower interest rates. So we're just really taken a look at different options just to be able to.

Speaker Change: Add more.

Speaker Change: Add more to our balance sheet as well as.

Speaker Change: For our shareholders to have more <unk>.

Speaker Change: P S going through so we're just taking a look at the options.

Speaker Change: Okay.

Speaker Change: Hmm.

On China, you mentioned for the year was $250 million of revenue, so I back into 44 million of <unk>.

Speaker Change: Fourth quarter revenue for China for China business is that.

Speaker Change: The sustainable run rate that you see for the first half or where you're exiting at a lower run rate than that 44 million you saw in the fourth quarter.

Speaker Change: Yeah, we see it being a little bit first going into Q1, and staying somewhat flat there for Q1 Q2, and as Chris mentioned it would hopefully recover somewhat in the second half maybe not to the peak levels that we saw but <unk> seen it go in going back up in Q3 Q4.

Speaker Change: Okay and just final question.

Speaker Change: Back in January.

Speaker Change: You had updated your view on Wi Fi growth and was looking to outperform that by about five 5% to 10% and so as that.

Speaker Change: Has that changed.

Speaker Change: You know, what's your updated wf fee.

Speaker Change: What would the range of outperformance be.

Speaker Change: At this point.

Speaker Change: So for Wi Fi at this point, we're looking at about five points of growth in 2025 mm and we are looking to outperform obviously last year, we outperformed quite a bit.

Speaker Change: So with potentially having a little bit pulled in with the upheavals in the U S.

Speaker Change: We may see a little bit of a balancing of that across the two years.

Speaker Change: So we will continue to look that our target is to outperform by 5% to 10% and we certainly believe that as a possibility, but we will continue to have to monitor.

Speaker Change: The mix is across the various products.

Alright, thank you.

Speaker Change: Thank you.

Speaker Change: There are no further questions at this time I'd like to turn the call over to Sheri Savage for closing remarks Ma'am. Please go ahead.

Speaker Change: Thank you everyone for joining us today, we will talk to you again next quarter. Thanks a lot.

Speaker Change: Okay.

Speaker Change: This concludes today's conference call. Thank you very much for your participation you may now disconnect.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: No.