Q1 2025 Corning Inc Earnings Call

Unknown Executive: Thank you. Thank you for standing by, and welcome to the Corning Incorporated First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode.

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Speaker Change: Thank you for standing by and welcome to the Corning incorporated first quarter 2025 earnings call.

At this time all participants are in a listen only mode. After the Speakers' presentation, there would be a question and answer session.

Unknown Executive: After the speaker's presentation, there will be a question-and-answer session. To place yourself into the Q&A queue, please press star 11 on your telephone. You will hear a message advising your hand is raised. To withdraw your question, simply press star 11 again. Please be advised that today's conference is being recorded.

Speaker Change: Nice yourself into the Q&A queue. Please press star one one on your telephone you will hear a message advice senior hands is raised to withdraw your question simply press Star one again.

Speaker Change: Be advised that today's conference is being recorded it is my pleasure to introduce to you Ann Nicholson Vice President of Investor Relations.

Ann Nicholson: It is my pleasure to introduce to you Ann Nicholson, Vice President of Investor Relations. Thank you, Carmen, and good morning.

Speaker Change: Thank you Carmen and good morning, welcome to Corning's first quarter 2025 earnings call with me today are Wendell weeks, Chairman and Chief Executive Officer and Ed.

Unknown Executive: Welcome to Corning's first quarter 2025 earnings call.

Ann Nicholson: With me today are Wendell Weeks, Chairman and Chief Executive Officer, and Ed Schlesinger, Executive Vice President and Chief Financial I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial report.

Speaker Change: Sure.

Vice President and Chief Financial Officer.

Speaker Change: To remind you that today's remarks contain forward looking statements that fall within that.

Speaker Change: The private Securities Litigation Reform Act of 1995.

Speaker Change: Once involve risks uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports.

Ann Nicholson: You should also note that we'll be discussing our consolidated results using core performance measures, unless we specifically indicate or comments relate to gap data. Our core performance measures are non-gap measures used by management to analyze The first quarter, the difference between GAAP and Core EPS primarily reflected non-cash, market-to-market losses associated with the company's translated earnings contracts and Japanese yen-denominated debt, as well as constant currency adjustments. As a reminder, the mark-to-market accounting has no impact on our cash flow. A reconciliation of core results to comparable gap value can be found in the investor relations section of our website at corning.com.

You should also note that we'll be discussing our consolidated results using core performance measures unless we specifically indicate our comments relate to GAAP data our corporate governance measures are non-GAAP measures.

Speaker Change: To analyze the business.

Speaker Change: The first quarter the difference between GAAP and core EPS, primarily reflected a noncash mark to market losses associated with the company's translated earnings contracts and Japanese yen denominated debt as well as constant currency adjustments.

Speaker Change: The Mark to market accounting has no impact on our cash flow I.

Speaker Change: A reconciliation of core results to comparable GAAP value can be found in the Investor Relations section of our website. According dot com.

Ann Nicholson: We also access core results on our website with downloadable financials in the interactive analog.

Speaker Change: Also access core results on our website with downloadable financials.

Speaker Change: The analyst Center.

Unknown Executive: Reporting slides are being shown live on our webcast. We encourage you to follow along. They're also available on our website for download.

Speaker Change: Slides are being shown live on our webcast. We encourage you to follow along they're also available on our website for downloading.

Wendell Weeks: And now I'll turn the call over to Wendell. Thank you, Ann. Good morning, everyone. We delivered outstanding first quarter results that exceeded guidance. We grew sales 13% year-over-year to $3.7 billion. We grew EPS more than three times the rate of sales to $0.54. We expanded operating margin 250 basis points year over year to 18%. for quarter two, we're guiding continued strong year over year sales growth. We expect our quarter two sales to be approximately $3.85 billion. Our Q2 EPS guidance of $0.55 to $0.59 includes the financial impact of existing tariffs, which is $0.01 to $0.02, and Accelerated Production Ramp Cost for our new products in optical communications and solar of about $300,000.

Wendell Weeks: And now I'll turn the call over to Wendell. Thank.

Wendell Weeks: Thank you and good morning, everyone. We delivered outstanding first quarter results that exceeded guidance, we grew sales 13% year over year to $3.7 billion. We grew EPS more than three times the rate of sales to 54 cents.

Wendell Weeks: We expanded operating margin 250 basis points year over year to 18%.

Wendell Weeks: For quarter, two were guiding continued strong year over year sales growth.

Wendell Weeks: We expect our quarter two sales to be approximately $3.85 billion.

Wendell Weeks: Quarter, two EPS guidance of 55 to 59 cents includes the financial impact of existing tariffs, which is one to two cents.

Wendell Weeks: Bad.

Wendell Weeks: Accelerated production ramp cost for our new products and optical communications and solar of about three sets.

Wendell Weeks: Even including those items, we expect EPS to grow year over year about 21 percent, three times faster than sales. Ed will explain more about our guidance later.

Wendell Weeks: Even including those items, we expect EPS to grow year over year about 21% three times faster than sales and we'll explain more.

Wendell Weeks: Our guidance later.

Wendell Weeks: Overall, we're coming off a strong year one of our springboard plan and our results and guidance show we're off to a great start in year two. We just held an investor event in March to upgrade our springboard plan. Normally, I would focus my remarks on our strong progress and upcoming milestones.

Wendell Weeks: Overall, we're coming off a strong year, one of our springboard plant and our results and guidance show we're off to a great start.

Wendell Weeks: Here too.

Wendell Weeks: We just held an investor event in March to upgrade our springboard plant.

Wendell Weeks: Normally I would focus my remarks on our strong progress and upcoming milestones.

Wendell Weeks: However, many investors requested that we address two questions. Pitter on their mind. What is the financial impact of tariffs on Corning? And can you deliver your springboard plan if there is a macroeconomic downturn during the planned timeframe? So I want to start by answering both of those questions. And then I'll go into more detail on each before turning things over to Ed to discuss our quarter one results and outlines. Let's start with the financial impact of tariffs on Corning. First, our longstanding philosophy to locate our manufacturing operations close to our customers serves as a natural hedge against tariffs and mitigates the financial impact.

Wendell Weeks: However, many investors requested that we address two questions.

Wendell Weeks: That are on their minds.

Wendell Weeks: What is the financial impact of tariffs on Corning.

Wendell Weeks: And can you deliver your springboard plan.

Wendell Weeks: If there is a macroeconomic downturn during the planned timeframe.

Wendell Weeks: So I want to start by answering both of those questions.

Wendell Weeks: And then I'll go into more detail on each before turning things over to Ed to discuss our quarter, one results and outlook.

Wendell Weeks: Let's start with the financial impact of tariffs on Corning.

Wendell Weeks: First our long standing philosophy to locate our manufacturing operations close to our customers serves as a natural hedge.

Wendell Weeks: Hence tariffs and mitigates the financial impact.

Wendell Weeks: Second.

Wendell Weeks: The direct financial impact of existing tariff structures, which are primarily between the U.S. and China, is only $0.01 to $0.02 per quarter. We've included that in our second quarter guidance. Based on our significant U.S. advanced manufacturing footprint. We're seeing early signs. of Stronger Demand for Our U.S.-Made Innovations. Next. Can we deliver our springboard plan in a macroeconomic downturn? The simple answer is yes. And today, we reiterate our confidence in our ability to deliver our recently upgraded high confidence springboard plan. that more than $4 billion in annualized sales and to achieve operating margin of 20% by the end of 2026.

Wendell Weeks: The direct financial impact of existing tariff structures, which are primarily between the U S and China is only one to two per quarter.

Wendell Weeks: We've included that in our second quarter guidance.

Wendell Weeks: Third.

Wendell Weeks: Based on our significant U S advanced manufacturing footprint.

Wendell Weeks: We're seeing early signs of stronger demand for our U S made innovations.

Wendell Weeks: Next.

Wendell Weeks: Can we deliver our springboard plan in a macroeconomic downturn.

Wendell Weeks: The simple answer is yes.

Wendell Weeks: And today, we reiterate our confidence in our ability to deliver our recently upgraded high confidence springboard play at Tat.

Wendell Weeks: At more than $4 billion in annualized sales and to achieve operating margin of 20% by the end of 2026.

Wendell Weeks: Our growth is primarily driven by powerful secular trends. and more Corning content in our customer's office. And in order to provide you with a high confidence plan, we already applied a risk adjustment that accounts for multiple factors, including a potential macroeconomic slowdown. With that, let's dive into each answer starting with 10. As I said a moment ago, our company has a longstanding philosophy to locate manufacturing operations close to our customers. We find the geographic proximity leads to better innovation and more delighted customers. This also has the benefit of serving as a natural hedge against global trade tensions and tariff structure.

Wendell Weeks: Our growth is primarily driven by powerful secular trends.

Wendell Weeks: And more Corning content.

Wendell Weeks: Customers offerings.

Wendell Weeks: And in order to provide you with a high confidence plan, we already apply to risk adjustment that accounts for multiple factors included.

Wendell Weeks: Potential macro economic slowdown.

Wendell Weeks: With that let's dive into each answer starting with taps.

Wendell Weeks: As I said, a moment ago, our company has a long standing philosophy to locate manufacturing operations close to our customers. We find the geographic proximity leads to better innovation and more delighted customers.

Wendell Weeks: This also has the benefit of serving as a natural hedge against global trade tensions and tariffs structures.

Wendell Weeks: We apply this philosophy globally. As a result, the direct impact of current terrorists for us is minimal. To illustrate the point, let's take a look at the impact of the terrorists between the US and China. In the US, we have a large advanced manufacturing footprint. This includes our optical communications business, where we have the largest fiber factory in the world in North Carolina. We also manufacture products for our automotive, life sciences, mobile consumer electronics, and solar businesses in the U.S. Almost all the products we sell in the US originate from our 34 advanced manufacturing facilities in the U.S.

Wendell Weeks: We apply this philosophy globally.

Wendell Weeks: As a result, the direct impact of current tariffs for us is minimal to illustrate the point, let's take a look at the impact of the tariffs between the U S and China.

Wendell Weeks: Okay.

Wendell Weeks: In the U S. We have a large advanced manufacturing footprint. This.

Wendell Weeks: This includes our optical communications business, where we have the largest fiber factory in the world.

Wendell Weeks: In North Carolina.

Wendell Weeks: We also manufacture products for automotive life Sciences, mobile consumer electronics and solar businesses in the U S.

Wendell Weeks: Almost all the products, we sell in the U S originate from our 34 advanced manufacturing facilities in the U S.

Wendell Weeks: In fact, nearly 90% of our U.S. revenue comes from products of U.S. origin. The majority of the remainder is generated from products that are fully compliant with USMCA rules. Only 1% of the products we sell in the U.S. come from China. Now let's look at our approach for our customers in China. 80% of our sales in China. we make in China or process in customs approved tax and duty freezing. 15% is made in region, for example, in Korea, in Taiwan. Only about 5% of our China sales are imported from the U.S. and subject to China tariff structures.

Wendell Weeks: In fact, nearly 90% of our U S revenue comes from products up U S origin.

Wendell Weeks: The majority of the remainder is generated from products that are fully compliant with U S. MCA rules.

Wendell Weeks: Only 1% of the products, we sell in the U S come from China.

Wendell Weeks: Now, let's look at our approach for our customers in China.

Wendell Weeks: 80% of our sales in China, we make in China or process and customs approved tax and duty free zones.

Wendell Weeks: 15% is made in region for example in Korea and Taiwan.

Wendell Weeks: Only about 5% of our China sales are imported from the U S and subject to China tariff structures.

Wendell Weeks: and we will mitigate the impact of that exposure primarily by optimizing our supply chain to minimize. and adjusting price where necessary. In total. We expect a direct impact of approximately $10 to $15 million or $0.01 to $0.02 for currently enacted tariffs in the second quarter. That is included in our guidance. Of course, we will seek to improve this through additional mitigation strategies. Ed will provide more detail on guidance. Bottom line. The Direct Impact of Currently Enacted Terrorism. is not significant. Interesting. We are seeing early signs of stronger demand. for our U.S.-made innovations from our large advanced manufacturing footprint in the U.S., our customers in optical communication.

Wendell Weeks: And we will mitigate the impact of that exposure, primarily by optimizing our supply chain to minimize tariffs and adjusting prices where necessary.

Wendell Weeks: In total we expect the direct impact of approximately $10 million to $15 million or one to two cents for currently enacted tariffs in the second quarter.

Wendell Weeks: That is included in our guidance.

Wendell Weeks: Of course, we will seek to improve this through additional mitigation strategies Ed.

Wendell Weeks: Provide more detail on <unk>.

Wendell Weeks: Got it.

Wendell Weeks: Bottomline.

Wendell Weeks: The direct impact of currently enacted tariffs is not significant to accordingly.

Wendell Weeks: Interestingly.

Wendell Weeks: We are seeing early signs of stronger demand for our U S made innovations from our large advanced manufacturing footprint in the U S.

Wendell Weeks: Customers and.

Wendell Weeks: In optical communications.

Wendell Weeks: Soller. in Mobile Consumer Electronics and in Life Sciences. are seeking to leverage. Our US Manufacturing And we expect to close and potentially announce commercial agreements in the coming months.

Wendell Weeks: And solar and.

Wendell Weeks: In mobile consumer electronics and in life Sciences are seeking to leverage.

Wendell Weeks: Our U S manufacturing footprint.

Wendell Weeks: And we expect to close and potentially announce commercial agreements in the coming months.

Wendell Weeks: Next. Can we deliver the springboard plan in a macroeconomic downturn? As I previously stated, the simple answer is yes. Today we reiterate our confidence in our ability to deliver the recently upgraded Springboard plan. Let's walk through life. Our internal springboard plan is to add $6 billion in annualized sales run rate by the end of 2026. We have a significant sales opportunity. And our growth is fueled by powerful secular trends that I'll discuss in a moment. As a reminder, our springboard base is quarter four of 2023, when sales were $3.27 billion or $13.1 billion annual. Adding $6 billion in incremental annualized sales brings us to a $19 billion sales run rate by the end of 2026.

Wendell Weeks: Next.

Ken: Ken we delivered the springboard plan in a macroeconomic downturn.

Ken: As I previously stated the simple answer is yes.

Ken: Today, we reiterated our confidence in our ability to deliver the recently upgraded springboard plan.

Ken: Let's walk through life.

Ken: Yeah.

Ken: Our internal springboard plant is to add $6 billion in annualized sales run rate by the end of 2026.

Ken: We have a significant sales opportunity and.

Ken: Our growth is fueled by powerful secular trends that I'll discuss in a moment.

Ken: As a reminder, our springboard base is quarter four of 2023, when sales were $3.27 billion or $13.1 billion annualized.

Ken: Adding $6 billion in incremental annualized sales brings us to a $19 billion sales run rate by the end of 2026.

Wendell Weeks: That is the sales level we would expect to achieve if we deliver our internal springboard plan. Our internal plan is the output of the strategic planning process we run with each of our market access platforms. These are our actual business plans. We set our objectives and compensation based upon those plans. When our businesses submit plans to corporate, they factor in a variety of probabilistic outcomes. They try to account for the known unknowns. The business plans aim for a 70% confidence interval, which means that based on their analysis, there is a 70% chance that they will deliver sales greater than or equal to that number.

Ken: That is the sales level, we would expect to achieve if we deliver our internal springboard plant.

Ken: Our total plant is the output of the strategic planning process, we run with each of our market access platforms.

Ken: These are actual business plans, we set our objectives and compensation based upon those plants.

When our businesses submit plans to corporate they factor in a variety of probabilistic outcomes. They try to account for the known unknowns.

Ken: The business plans aim for a 70% confidence interval, which means that based on their analysis. There is a 70% chance that they will deliver sales greater than or equal to that number.

Wendell Weeks: What we wanted to do with Springboard was to provide an even higher confidence plan for our investors. So we take that internal plan and translate the opportunity into an investable thesis. for all of you. At the corporate level, we seek to probabilistically adjust for factors, including macroeconomic slowdowns, changes in government policy, and timing of multiple secular trends in our related innovation. Our corporate-level risk adjustment is $2 billion. This is how we get to our $4 billion high-confidence plan. Annualized, that is a $17 billion sales run rate by the end of 2026. So let's unpack the macroeconomic component of that corporate level risk adjustment.

Ken: What we wanted to do with springboard was to provide an even higher confidence plant for our investors. So.

Ken: So we take that internal plan and translate the opportunity into an investable thesis for all of you.

Ken: At the corporate level, we seek to probabilistic Lee adjust for factors, including macroeconomic slowdowns changes in government policy and timing of multiple secular trends and our related innovations.

Ken: Our corporate level risk adjustment is $2 billion.

Ken: This is how we get to our $4 billion high confidence plant annualized that is a $17 billion sales run rate by the end of 2026.

Ken: So, let's unpack the macroeconomic component of that.

Ken: At corporate level risk adjustment.

Wendell Weeks: We use third-party forecast of potential macroeconomic slowdown scenarios. And we apply that to our demand planning model that underpins our $19 billion internal springboard. That economic slowdown scenario would result in a sales run rate by the end of 2026 of a little less than $18 billion. well with it. Our $2 Billion Risk Adjustment We also run a shock... using the worst downturn over the last 25 years. That scenario results in an adjustment to our plan that is still within our two billion dollar risk adjustment. In other words, When we constructed the high confidence. The impact of a potential economic slowdown was already built in.

Ken: We use third party forecast of potential macroeconomic slowdown scenarios.

Ken: And we apply that to our demand planning model that underpins, our $19 billion internal springboard plant.

Ken: That economic slowdown scenario would result in a sales run rate by the end of 2026 or a little less than $18 billion.

Ken: Well with it.

Ken: 2 billion risk adjustment.

Ken: We also run a shock case using the worst downturn over the last 25 years.

Ken: That scenario results in an adjustment to our plan that is still within our $2 billion.

Ken: Risk adjustment.

Ken: In other words.

Ken: When we constructed the high confidence placed.

Ken: The impact of a potential economic slowdown was already built in.

Wendell Weeks: That being said, remember, we're innovators. We're not macroeconomists. We are not projecting a macroeconomic slowdown. We're simply providing this context for you to make your own decision. I hope that's helpful. to understand our risk adjustment as it pertains to a potential economic downturn. And that's one of the reasons that today we reiterate our high confidence plan to add more than $4 billion to our annualized sales run rate by the end of 2026. We feel good about our innovations and the secular trends driving our growth.

Ken: Okay.

Ken: That being said remember we're innovators.

Ken: Macro economist.

Ken: We are not projecting a macroeconomic slowdown.

Ken: We're simply providing this context for you to make your own decisions.

Ken: I hope that's helpful.

Ken: To understand our risk adjustment as it pertains to a potential economic downturn.

Ken: And that's one of the reasons that today, we reiterate our high confidence plan to add more than $4 billion to our annualized sales run rate by the end of 2026.

Ken: We feel good about our innovations and the secular trends driving our growth. So now, let's turn to those trends, we continue to see and hear Reconfirming evidence.

Wendell Weeks: So now let's turn to those trends. We continue to see and hear reconfirming evidence. that our secular trends are intact and remain relevant. We see it in our results. and we see it in our order book. and we hear it in our detailed dialogues with our customers. In optical communications, we are seeing remarkable customer response to both our products used inside Gen AI data centers, as well as our innovations to interconnect AI data data centers across the country. We shared some of our new products with you at our March Investor event. These products are driving positive customer response and rapid adoption.

Ken: There are secular trends are intact.

Ken: It made relevant.

Ken: We see it in our results.

Ken: And we see it in our order books.

Ken: And we hear it.

Ken: Detailed dialogues with our customers.

Ken: In optical communications, we are seeing remarkable customer response to both our products use inside Gen AI data centers as well as our innovations to interconnect AI data data centers across the country.

Ken: We shared some of our new products with you at our March Investor event.

Ken: These products are driving positive customer response and rapid adoption.

Wendell Weeks: In our enterprise business, where we capture sales for inside the data center, adoption of our products drove a record $2 billion in sales last year. At our March IR event, we upgraded our four year enterprise sales compound annual growth rate from 25 to 30% based on strong customer demand. in the first quarter. continue to outperform. with sales growth of 106%. year-over-year. just completed detailed reviews with our major hyperscale customers that reconfirmed our growth expectations. And as you've also seen in recent public announcements from the top hyperscalers. they've reaffirmed their capital. and they expect to continue to spend significant amount of capital.

Ken: In our enterprise business, where we capture sales for inside the data center adoption of our products drove a record $2 billion in sales last year.

Ken: At our March IR event, we upgraded our four year enterprise sales compound annual growth rate from 25% to 30% based on strong customer demand.

Ken: In the first quarter, we continued to outperform with sales growth of 106% year over year.

Ken: We've just completed detailed reviews with our major hyperscale customers that reconfirmed our growth expectations.

Ken: And as you've also seen in recent public announcements from the top hyperscale as they.

Ken: They've reaffirmed their capital plans and they expect to continue to spend significant amount of capital in this space.

Wendell Weeks: Another way Gen AI is fueling our growth is reflected in our carrier. Last year, we introduced a set of innovations to interconnect AI data centers. We shared that we reached an agreement with Lumen Technologies to provide our new Gen AI fiber and cable system that enables Lumen to fit anywhere from two to four times the amount of fiber into their existing conduit. And the agreement reserved 10% of our global fiber capacity. 25, and 2026. Last month, we announced that we have fully commercialized this program. We now have three industry-leading customers adopting the technology. and our production tripled every month in the first quarter.

Ken: Another way Jan AI is fueling our growth is reflected in our carrier business.

Ken: Last year, we introduced a set of innovations to interconnect AI data centers.

Ken: We shared that we reached an agreement with <unk> technologies to provide a new gen AI fiber and cable system that enables lumen to fit anywhere from two to four times the amount of fiber into their existing conduit and the agreement reserve, 10% of our global fiber capacity for 2025 and 2026.

Ken: Last month, we announced that we are fully commercialize this product.

Ken: We now have three industry, leading customers adopting the technology.

Ken: And our production tripled every month in the first quarter. So this innovation is now turning into a revenue stream to make a positive difference in our financials. This year.

Wendell Weeks: So this innovation is now turning into a revenue stream to make a positive difference in our financials this year. We continue to field strong, positive customer response to our innovations, and as a result, we're accelerating our ramp plans in the second quarter to meet growing demand. Additionally, in our carrier business, as you've seen from recent telecom earnings calls, our key customers have stated they like the economics of fiber, and they remain committed to their fiber deployment. We believe they have completed drawing down inventory they've built during the pandemic. And the conditions are now in place for our carrier business to spring back to growth later this year.

We continue to field strong positive customer response to our innovations and as a result, we are accelerating our ramp plans in the second quarter to meet growing demand.

Ken: Okay.

Ken: Additionally, in our carrier business as you've seen from recent telecom earnings calls RT customers have stated they liked the economics of fiber and they remain committed to their fiber deployment plans we.

Ken: We believe they have completed drawing down inventory they've built during the pandemic and the conditions are now in place for our carrier business to spring back to growth later this year.

Wendell Weeks: We saw the beginning of that in the first quarter.

Ken: We saw the beginning of that in the first quarter.

Wendell Weeks: turning to solar. In March, we said we expect our new market access plan. to grow from a billion dollar business in 2024 to a two and a half billion dollar business by 2028. Drivers include increased energy demand, favorable economics, and government policy focused on energy independence. We are commercializing our new Made in America ingot and wafer products this year. Our production will come online in the back half of this year. We said in March that for our entire platform, we had committed customers for 100% of our capacity available in 2025, and 80% of our capacity for the next five years.

Ken: Turning to solar in March we said, we expect our new market access platform to grow from the $1 billion business in 2024 to a two and a half billion dollar business by 2028.

Ken: Drivers include.

Ken: Increased energy demand favorable economics, and government policy focused on energy independence.

Ken: We are commercializing our new made in America, ingot and wafer products this year.

Ken: Our production will come online in the back half of this year.

Ken: We said in March did for our entire platform, we had committed customers for 100% of our capacity available in 2025, and 80% of our capacity for the next five years.

Wendell Weeks: And recent trade actions are increasing new customer engagement. The goal of U.S. policy is to ensure domestic energy security. So our U.S. solar assets just became even more valuable. We're experiencing increasing demand for U.S. sourced solar. As a result, we're accelerating our ramp of U.S. advanced manufacturing in our Midland Michigan wafer facility. We're increasing our workforce to 1500 manufacturing jobs from our previously announced 1100 persons. So, recent events continue to validate our low-risk, high-return entry into the solar In display, we continue to expect TV screen size growth of about one inch a year. In March, we said that the price increases we implemented last year will help us deliver net income of $900 to $950 million in 2025, and to deliver net income margin of 25%.

Ken: In recent trade actions are increasing new customer engagement.

Ken: The goal of U S policies to ensure domestic energy security, so our U S solar assets.

Ken: <unk> became even more valuable.

Ken: We're experiencing increasing demand for U S source solar as a result.

Ken: We're accelerating our ramp of U S advanced manufacturing.

Ken: Midland, Michigan wafer facility.

Ken: We're increasing our workforce to 1500 manufacturing jobs for my previously announced 1100 person level.

Ken: So recent events continue to validate our low risk high return entry into the solar market.

Ken: In display we continue to expect TV screen size growth of about one inch a year.

Ken: In March we said that the price increases we implemented last year will help us deliver net income of $900 million to $950 million in 2025 and to deliver net income margin of 25%.

Wendell Weeks: In the first quarter, the business marked net income of $243 million and net income margin of 26.9%. In automotive, we expect almost triple sales in our automotive glass business by 2026. Our growth comes from more Corning as automakers add more in-vehicle content. For example, larger, shaped, immersive, and high resolution displays. Given the milestones we've achieved in our automotive glass business, we're graduating the business this quarter out of the Emerging Innovations Group and into operations. It will be managed along with environmental technologies forming a new segment called automotive. In mobile consumer electronics, our growth will be driven by demand for more Corning content as customers adopt our new higher value innovation.

Ken: In the first quarter the business Mark net income of $243 million and net income margin of 26.9%.

Ken: In automotive, we expect almost triple sales in our automotive glass business by 2026.

Ken: Growth comes from more Corning as automakers at more in vehicle content for example, larger shaped immersive and high resolution displays.

Ken: Given the milestones we've achieved in our automotive glass business. We're graduating the business this quarter out of the emerging innovations group and into operations.

Ken: It will be managed along with environmental technologies, forming a new segment called automotive.

Ken: Yeah.

Ken: In mobile consumer electronics, our growth will be driven by demand for more corning content as customers adopt our new higher value innovations in the first quarter, our major innovation streams remain on tap and we remain optimistic about adoption of our new technologies, we expect those innovate.

Wendell Weeks: In the first quarter, our major innovation streams remain on tap, and we remain optimistic about adoption of our new technologies. We expect those innovations to drive growth as we enter 2020. In total, our secular trends remain consistent with our recently upgraded Spring-Board Plan. our grilled remain intact. The direct impact of current tariffs to Corning is not significant. and our $2 billion risk adjunct. should provide a sufficient buffer against potential economic downturn.

Ken: <unk> to drive growth as we enter 2026.

Ken: In total our <unk>.

Ken: Secular trends remain consistent with our recently upgraded springboard plan.

Ken: In summary.

Ken: Our growth trends remain intact.

Ken: The direct impact of current tariffs to Corning is not significant.

Ken: And.

Ken: Our $2 billion risk adjustment.

Ken: Should provide a sufficient buffer against potential economic downturns.

Wendell Weeks: So now, I'll turn it over to Ed to get into more detail on our results and outlook.

Ken: So now I'll.

Ken: I'll turn it over to Ed to get into more detail on our results and outlook.

Edward Schlesinger: Thank you, Wendell. Good morning, everyone. As you just heard, our results and guidance show we're making great progress on our high confidence springboard plan to add more than $4 billion in annualized sales and achieve an operating margin of 20% by the end of 2026. And as we successfully execute the plan, we continue to improve our return profile. Year over year in the first quarter, we grew sales 13% to $3.7 billion. We grew EPS 42% to $0.54. We expanded operating margin by 250 basis points to 18%. And we expanded ROIC by 300 basis points to 11%.

Ed: Thank you Wendell and good morning, everyone.

Ed: As you just heard our results and guidance show, we're making great progress on our high confidence springboard plan to add more than $4 billion in annualized sales and achieve an operating margin of 20% by the end of 2026 and as we.

Ed: We execute the plan, we continue to improve our return profile year over year in the first quarter. We grew sales 13% to $3 7 billion, we grew EPS, 42% to 54.

Ed: We expanded operating margin by 250 basis points to 18% and we expanded our ROIC by 300 basis points to 11, 6%.

Edward Schlesinger: Looking ahead, we expect our momentum to continue. For the second quarter, we expect continued strong year-over-year sales growth, with sales of approximately $3.85 billion, and EPS in the range of $55 to $59 billion. Again, growing significantly faster than sales. We expect to continue expanding our operating margin as we march toward our springboard target of 20% by the end of 2026. And we anticipate continued strong growth in our enterprise Driven by our new products for Gen-AI. Two other things I want to note related to our second quarter guidance. First, our guidance factors in $0.01 to $0.02 for the expected direct impact of currently enacted tariffs.

Ed: Looking ahead, we expect our momentum to continue for the second quarter. We expect continued strong year over year sales growth with sales of approximately $3 85 billion and EPS in the range of 55 to 59 again.

Ed: Growing significantly faster than sales.

Ed: We expect to continue expanding our operating margin as we march toward our springboard target of 20% by the end of 2026, and we anticipate continued strong growth in our enterprise business driven by our new products for Gen AI.

Ed: Two other things I want to note related to our second quarter guidance.

Ed: First our guidance factors in one to two cents for the expected direct impact of currently enacted tariffs.

Edward Schlesinger: We plan to further mitigate this impact going forward, primarily by optimizing our supply chains and adjusting price where necessary. Second, we shared with you that we are accelerating our production ramp for new products. given high customer both optical communications for our new Gen AI products for both inside and outside the data center, and in solar for our new solar wafers. Our second quarter guidance includes temporarily higher costs associated with these of about 3 cents. We expect the impact of these costs to dissipate as our production and sales increase in the second half of the year.

Ed: We plan to further mitigate this impact going forward, primarily by optimizing our supply chains, and adjusting price where necessary.

Ed: Second we shared with you that we are accelerating our production ramp for new products given high customer demand in both optical communications for new Gen AI products for both inside and outside the data center and in solar for our new solar wafers are.

Ed: Quarter guidance includes temporarily higher costs associated with these ramps of about <unk>.

Ed: We expect the impact of these costs to dissipate as our production and sales increase in the second half of the year.

Edward Schlesinger: Now I'd like to share some more detail on what we're seeing in our business. And then I'll review our capital allocation priorities as we expect to generate significant cash over the springboard time frame. In optical communications, first quarter sales were $1.4 billion, up 46% year-over-year. Net income for the first quarter was $201 million, up 101% year-over-year, reflecting strong incremental profit on the higher bond. Enterprise sales were $705 million for the quarter, up 106% year-over-year, driven by continued strong demand for our new Gen-AI products for inside-the-database. We're tracking ahead of our 2023 to 2027 enterprise sales CAGR of 30%.

Ed: Now I'd like to share some more detail on what we're seeing in our businesses and then I'll review our capital allocation priorities, we expect to generate significant cash over the springboard timeframe.

Ed: In optical communications first quarter sales were $1 4 billion up 46% year over year net income for the first quarter was $201 million up 101% year over year, reflecting strong incremental profit on the higher volume.

Enterprise sales were $705 million for the quarter up 106% year over year, driven by continued strong demand for our new Gen AI products for inside the data center.

Ed: We're tracking ahead of our 2023 to 2027 enterprise sales CAGR of 30%.

Edward Schlesinger: We also grew 11% year over year in our carrier. The growth included sales of our new data center InterConnect product. Additionally, our carrier customers have completed drawing down inventory during the pandemic, and the conditions are now in place for our carrier business to return to growth. 25. And we are seeing the beginnings of that in the first quarter.

Ed: We also grew 11% year over year in our carrier business. The growth included sales of our new data center interconnect products. Additionally.

Ed: Additionally, our carrier customers have completed drawing down inventory.

Ed: During the pandemic and the conditions are now in place for our carrier business to return to growth in 2025, and we are seeing the beginnings of that in the first quarter.

Edward Schlesinger: Moving to display. First quarter sales were $905 million, up 4% year over year on both volume and price Net income was $243 million, 26.9% of sales. We successfully implemented double-digit price increases in the second half of 2024 to ensure that we Stable U.S. Dollar Net Income in a Weaker Yannick Environment. Our first quarter results provide the first proof point that we have achieved our objective. As a reminder, Hedged our Yen exposure for 2025 and 2026 with hedges in place beyond. In 2025, we reset our yen quarry to 120 yen to the dollar, consistent with our hedge We are not recasting our 2024 financials because we expect to maintain the same profitability and display at the new core rate.

Ed: Moving to display.

Ed: First quarter sales were $905 million up 4%.

Ed: Year over year on both volume and price increases.

Ed: Net income was $243 million 26, 9% of sales.

Ed: We successfully implemented double digit price increases in the second half of 2024 to ensure that we can maintain stable U S. Dollar net income and a weaker yen environment.

Ed: Our first quarter results provide the first proof point that we have achieved our objectives.

Ed: As a reminder.

Ed: We hedged our yen exposure for 2025, and 2026 with hedges in place beyond 2026 in 2025, we reset our yen Corey to 120 yen to the dollar consistent with our hedge rate.

Ed: Are not recasting, our 2020 for financials, because we expect to maintain the same profitability and display at our new core rates.

Edward Schlesinger: We remain confident that we can deliver net income of $900 million to $950 million. Five, and Net Income Margin of 25%. Assistant with the last five. Overall, we are maintaining our market, technology, and cost leadership while benefiting from market growth and a glass supply demand. that is increasingly balanced too tight. Turning to specialty materials, first quarter sales were $501 million, up 10% year-over-year, driven by cash. Strong Demand for Premium Glass for Mobile Devices. Net income grew 68% year-over-year to $74 million, reflecting strong incrementals on higher volumes, as well as strong demand for our...

Ed: We remain confident that we can deliver net income of 900 million to $950 million in 2025, and net income margin of 25%.

Ed: Assistance with the last five years.

Ed: Overall, we are maintaining our market technology and cost leadership, while benefiting from market growth and a glass supply demand environment that is increasingly balanced to tight.

Ed: Turning to specialty materials first quarter sales were $501 million up 10% year over year, driven by continued strong demand for premium glass for mobile devices net income grew 68% year over year to $74 million, reflecting strong incrementals on high.

Ed: Your volumes as well as strong demand for our premium glass innovations.

Edward Schlesinger: Now, I'd like to take a moment to elaborate on our new automotive segment. Our Automotive Glass Solution has been part of our Hemlock and emerging growth. which is designed to launch early stage projects and growth opportunities. This is where our solar business currently resides. Beginning in Q1, we graduated our auto-glasses. and together with our environmental technologies business created a new segment. Automotive. We recast the comparative segment results for prior periods to align with our current reporting. Our environmental business has been an established leader in the industry for more than 50 years. Now we're leveraging that market access to drive more Corning automotive glass into the market.

Ed: Now I'd like to take a moment to elaborate on our new automotive segment.

Ed: Our automotive glass solutions business has been part of our hemlock and emerging growth businesses, which is designed to launch early stage projects and growth opportunities. This is where our solar business currently resides.

Ed: Beginning in Q1, we graduated our auto glass business and together with our environmental technologies business created a new segment named Automotives.

Ed: We recast the comparative segment results for prior periods to align with our current reporting.

Ed: Our environmental business has been an established leader in the industry for more than 50 years now were leveraging that market.

Ed: We're leveraging that market access to drive more Corning automotive glass into the market.

Edward Schlesinger: We have several recent partnership and projects. tied to automotive interiors and adjacencies and are making nice progress. With that, let me provide some color on what we're seeing right now in automotive. In the first quarter, automotive sales were $440 million, down 10% year-over-year, primarily driven by continued softness in light and heavy-duty European vehicles. as expected. The North America Class 8 market also continues to lag year-over-year following a strong Q1 2024. We remain confident that the underlying secular trends in automotive will be strong growth drivers for Corning as demand for more, larger shaped, immersive and higher resolution displays grows.

Ed: We have several recent partnership and project announcements tied to automotive interiors.

Ed: And Adjacencies and are making nice progress.

Ed: With that let me provide some color on what we're seeing right now in automotive.

Ed: In the first quarter automotive sales were $440 million down 10% year over year, primarily driven by continued softness in light and heavy duty European markets as expected.

Ed: North America class eight market also continues to lag year over year. Following a strong Q1 2024.

Ed: We remain confident that the underlying secular trends in automotive will be strong growth drivers for Corning as demand for more larger shaped immersive and higher resolution displays grows our segment change reflects our continued confidence.

Edward Schlesinger: Our segment change reflects our continued confidence.

Edward Schlesinger: Turning to life sciences, on a year-over-year basis, first quarter sales of $234 million were down 1%. and that income of $13 million was...

Turning to life Sciences on a year over year basis first quarter sales of $234 million were down 1% and net income of $13 million was consistent.

Edward Schlesinger: Finally, in Hemlock and Emerging Growth. First quarter sales were $244 million, down 25% sequentially on normal season out. As I just explained, these results no longer include automotive glass solutions, and we recast 2024 for this change. We're still reporting our solar business results in Hemlock and emerging growth businesses for the moment as we continue to ramp production for our new solar wafer product. We expect to grow our new solar map to a $2.5 billion revenue. by 2028, and we expect a positive incremental impact on Corning's sales, profits and cash flow starting in the second half of 2025.

Ed: Finally in hemlock and emerging growth businesses first quarter sales were $244 million down 25% sequentially on normal seasonality.

Ed: As I just explained these results no longer include automotive glass solutions, and we recast 2024 for this change.

Ed: We're still reporting our solar business results in hemlock and emerging growth businesses for the moment as we continue to ramp production for a new solar wafer products.

Ed: We expect to grow our new solar map to a $2 $5 billion revenue stream by 2028, and we expect a positive incremental impact on corning's sales profits and cash flow starting in the second half of 2025.

Edward Schlesinger: We are commercializing our new Made in America ingot and wafer products this year. We have committed customers for 100% of our capacity available in 2025 and 80% of our capacity for the next five years. We plan to update you on our solar sales and profits as we continue to make progress.

Ed: We are commercializing our new made in America, ingot and wafer products. This year we.

Ed: We are committed customers for 100% of our capacity available in 2025, and 80% of our capacity for the next five years.

Ed: We plan to update you on our so our sales and profits as we continue to make progress.

Edward Schlesinger: With that, I'll shift from segment results to free cash. The first quarter was essentially breaking point. Normally, Q1 is negative, a seasonal low, driven by our typical compensation and working capital cycle. So, we're actually off to a great start. We expect to generate a significant amount of free cash flow this year, and we expect to invest approximately $1.3 billion on capital.

Ed: With that I will shift from segment results to free cash flow.

Ed: First quarter was essentially breakeven.

Ed: Normally Q1 is a negative a seasonal low driven by our typical compensation and working capital cycles.

Ed: So were actually off to a great start in 2025 and expect to generate a significant amount of free cash flow. This year, and we expect to invest approximately $1 3 billion on capex.

Edward Schlesinger: And finally, let's move to capital allocation. As we shared with you in March, the upgrades to our internal and high-confidence... We expect to convert that profit into more cash As an early proof point, in year one of the plan, we grew free cash flow 42% for the full year 2024 versus the prior year. Always front and center to us is capital allocation. How do we choose to invest the expected higher cash flow? Companies do capital allocation in different ways. We prioritize investing for organic growth. that drive significant returns, and we grow primarily through innovation. We believe this creates the most value for our shareholders over the long Our investors have confirmed.

Ed: And finally, let's move to capital allocation.

Ed: As we shared with you in March the upgrades to our internal and high confidence plans include higher sales and higher profit, we expect to convert that profit into more cash flow as an early proof point in year. One of the plan. We grew free cash flow of 42% for the full year 2024 versus the prior year.

Ed: Always front and center to US is capital allocation, how do we choose to invest you expected higher cash flow.

Ed: Companies do capital allocation in different ways, we prioritize investing for organic growth opportunities that drive significant returns and we grow primarily through innovation. We believe this creates the most value for our shareholders over the long term our investors have confirmed this.

Edward Schlesinger: As we see high return opportunities in the future, we will invest in those opportunities. We also seek to maintain a strong and efficient balance We're in great shape. We have one of the longest debt tenors in the S&P 500. Our current average debt maturity is about 23 years, with only about $1.2 billion in debt coming due over the next five years. and we have no significant debt coming due in any Finally, we expect to continue our strong track record of returning excess cash to shareholders. We already have a strong dividend. Therefore, as we go forward, our primary vehicle for returning cash to shareholders will be share buybacks.

Ed: As we see high return opportunities in the future we will invest in those opportunities. We also seek to maintain a strong and efficient balance sheet.

Ed: We're in great shape, we have one of the longest debt tenders in the S&P 500, our current average debt maturity is about 23 years with only about $1 2 billion in debt coming due over the next five years and we have no significant debt coming due in any given year.

Ed: Finally, we expect to continue our strong track record of returning excess cash to shareholders.

Ed: We already have a strong dividend therefore, as we go forward our primary vehicle for returning cash to shareholders will be share buybacks, we have an excellent track record.

Edward Schlesinger: We have an excellent track. Over about the last decade, we repurchased 800 million shares, close to a 50% reduction in our outstanding shares, which at today's share price has created $17 billion in value for our shareholders. Because of our growing confidence in Springboard, we started to buy back shares in the second quarter of 2024, and we have continued to do so. In the first quarter of 2025, we invested another $100 million in share repurchases, and we expect to continue buying back shares in the second quarter.

Ed: Over about the last decade, we repurchased 800 million shares close to a 50% reduction in our outstanding shares which at today's share price has created $17 billion in value for our shareholders.

Ed: Because of our growing confidence in springboard, we started to buy back shares in the second quarter of 2024, and we have continued to do so since then.

Ed: In the first quarter of 2025, we invested another $100 million in share repurchases and we expect to continue buying back shares in the second quarter.

Edward Schlesinger: So as I wrap up today, I'd like to reiterate the important points we've shared with you this morning. In Q1, we exceeded our guidance on both sales and EPS and continue to deliver strong sales growth while continuing to improve our return. and we expect another strong quarter as evidenced by our second quarter guidance. which factors in the expected direct impact of currently inactive tariffs and temporarily higher costs as we accelerate production ramps for our new Gen-AI products in optical communications and our new solar wafer products. Stepping back, we feel great about our progress on Springboard, and we're energized about the tremendous opportunity for value creation we've built for our shareholders.

Ed: So as I wrap up today I'd like to reiterate the important points, we've shared with you. This morning.

Ed: In Q1, we exceeded our guidance on both sales and EPS and continued to deliver strong sales growth, while continuing to improve our return profile and.

Ed: And we expect another strong quarter as evidenced by our second quarter guidance, which factors in the expected direct impact of currently enacted tariffs and temporarily higher costs as we accelerated production ramps for our new Gen AI products in optical communications.

Ed: And our new solar wafer products.

Ed: Stepping back we feel great about our progress on springboard and we're energized about the tremendous opportunity for value creation for our shareholders.

Edward Schlesinger: Our internal springboard plan adds $6 billion in annualized sales run rate by the end of 2026. Unexpected growth is driven by powerful secular trends.

Ed: Our internal springboard plan at $6 billion in annualized sales run rate by the end of 2026.

Ed: Expected growth is driven by powerful secular trends in particular, Gen AI and solar.

Edward Schlesinger: D distinguished guests. And our risk-adjusted high-confidence plan adds more than $4 billion in annualized sales, and we continue to expect operating margin to improve to 20% by the end of 2026. Therefore, we expect to continue improving ROIC, growing EPS, and strengthening cash Our $2 billion risk adjustment provides a sufficient buffer for a macroeconomic downturn.

Ed: And our risk adjusted high confidence plan adds more than $4 billion in annualized sales and we continue to expect operating margin to improve to 20% by the end of 2026.

Ed: Therefore, we expect to continue improving ROIC.

Ed: Growing EPS and strengthening cash flow.

Ed: Our $2 billion risk adjustment provides a sufficient buffer for a macroeconomic downturn.

Edward Schlesinger: I look forward to updating you on our progress.

Ed: I look forward to updating you on our progress.

Unknown Executive: With that, I'll turn it back over. Thank you, Ed.

Ann Nicholson: With that I'll turn it back over to Ann.

Unknown Executive: Okay, Carmen, we're ready for questions. Thank you so much. And as a reminder to our audience, press star one one on your telephone and wait for your name to be announced. To withdraw your question, simply press star one one again. Please stand by for our first question, please.

Ann Nicholson: Thank you Ed Thanks, Harman, we're ready for questions.

Speaker Change: Thank you so much and as a reminder to our audience Press Star one one on your telephone and wait for your name to PNM to.

Speaker Change: To withdraw your question simply press Star one again, the standby for our first question. Please.

Steven Fox: And it comes from the line of Steven Fox with Fox Advisors. Please proceed. Hi, good morning, and thanks for all that detail. I guess for my question, Wendell, you talked a lot about the different aspects that could play out in this new world order. I guess the one that maybe you left out, I was wondering if you can touch on is just your pricing power in uncertain markets and how you think all this plays out versus competition. Obviously, you got pricing sort of settled on the display side, but how do you think about just where you're at with some of the other key markets like solar and auto and especially optical?

Speaker Change: Okay.

Speaker Change: And he comes from the line of Steven Fox with Fox Advisors. Please proceed.

Speaker Change: Hi, good morning, and thanks for all that detail.

Speaker Change: So my question Wendell you talked a lot about the different aspects that could play out.

Speaker Change: In this new World Order I guess, the one that maybe you left out I was wondering if you can touch on is just your pricing power in uncertain markets and how you think all this plays out versus competition.

Speaker Change: Obviously, you got pricing sort of settled on the display side, but how do you think about just where youre at with some of the other key markets like solar and all.

Wendell Weeks: Thanks. It's a great question, Steve. The most recent example we've had of our ability to pass cost, increasing cost, on to our customers in the form of price was part of the recovery from the pandemic, where we successfully shared the impact of inflation. And so we're coming off of that knowledge and those tools. At this moment, we're actually seeing. increased customer interest in U.S. And because of events. Raising our potential realized price in that business and our customers. Similarly, our product sets in opto, the bulk of the growth is being driven by unique . We haven't really been exposed to any.

Speaker Change: And especially optical thanks.

Speaker Change: Okay.

Speaker Change: Great question Steve.

Speaker Change: The most recent example, we've had.

Speaker Change: Our ability to pass cost increasing cost on to our.

Speaker Change: Customers in the form of price was part of the recovery from the pandemic, where we successfully share the impact of inflation.

Speaker Change: With our customers.

Speaker Change: And so we're coming off of that knowledge and those tools.

Speaker Change: At this moment.

Speaker Change: We're actually seeing it.

Speaker Change: Solar because of the.

Speaker Change: Increased customer interest in U S or solar.

Speaker Change: And because of events and trade.

Speaker Change: Raising our potential realized price.

Speaker Change: That business.

Speaker Change: Our customer dialogues.

Speaker Change: Similarly, our product sets and up to that.

Speaker Change: Bulk of the growth is being driven by unique products, we haven't really been exposed to any.

Wendell Weeks: Tariff Friction Those Businesses. Should there be some changes or things like that, that fundamental competitive moat we have should serve? Automotive, as of yet, we just don't have enough exposure to tariff structures to have entered into direct dialogues with our customers. So more to be General. We feel really good about the way our footprint naturally reduces our exposure to changing tariff structures.

Speaker Change: Tariff friction cost in those businesses.

Speaker Change: Should there be some changes or things like that that fundamental competitive moat, we have should serve us well.

Speaker Change: Automotive as of yet, we just don't have enough exposure to tariff structures.

Speaker Change: Who have.

Speaker Change: Entered into direct dialogues with our customers so.

Speaker Change: More to be seen on that space in general we feel really good about the way our footprint.

Speaker Change: Naturally reduces our exposure to changing tariff structures.

Unknown Executive: And our relationships with our customers are such that we feel good about our ability to mitigate any impact that Great, that was very helpful. Thank you. One moment for our next question, please.

Speaker Change: Our relationships with our customers are such that we feel good about our ability to mitigate any impact that comes our way.

Speaker Change: Great that was very helpful. Thank you.

Speaker Change: Thank you one moment for our next question. Please.

Wamsi Mohan: It comes from the line of Wamsi Mohan with Bank of America. Please proceed. Just morning. Thank you so much.

Mohan: It comes from the line of <unk> Mohan with Bank of America. Please proceed.

Mohan: Good morning, Thank you so much.

Wamsi Mohan: You spoke about temporary capacity ramp costs in optical and solar, but your CapEx outlook did not change. It stayed at 1.3 billion. So is this largely an OpEx ramp? Is it a pull forward of any demand that you're seeing or are there under the cover changes in CapEx allocation? And if I could, could you also address maybe just your visibility in the NAI orders? Obviously, you had very strong growth, but there are some concerns around pullback in data center spending. I'm just trying to get some sense from you if you're seeing anything different in your order patterns at all.

Mohan: You spoke about temporary capacity around cost and optical in solar but your capex outlook did not change. It stayed at $1 2 billion. So this is largely an opex ramp does that a pull forward of any demand that youre seeing or are there under the cover of changes in capex allocation.

Speaker Change: And if I could could you also address maybe just feel visibility in getting the orders obviously you had very strong growth.

Speaker Change: But there are some concerns around pullback in data center spending and just trying to get some sense from you if you're seeing anything different in your order patterns at all thank you so much.

Wamsi Mohan: Thank you so much. Thanks, Wamsi. Great questions.

Speaker Change: Thanks, <unk> great questions, Let me take the first one on the cost ramp so as we bring up capacity you heard Wendell talked about for example in solar us, adding 500 jobs. So we're bringing on fixed cost to actually get that capacity.

Edward Schlesinger: Let me take the first one on the cost ramp. So as we bring up capacity, you heard Wendell talk about, for example, in solar us adding 1500 jobs. So we're bringing on fixed cost to actually get that capacity up and running. So until we're actually at scale producing at the level we're capable of and selling, we actually have a fixed cost that is embedded in our financials. And that's how we think about that cost. It remedies itself when we're actually at scale and selling and in solar for example, we believe that's in the second half.

Speaker Change: <unk> up and running so until we're actually at scale producing at the level, we're capable of and selling we actually have a fixed cost that is embedded in our financials and thats. How we think about that cost drag it remedies itself when we're actually at scale in selling and in solar for example, we believe that's in the <unk>.

Edward Schlesinger: And then, you know, in optical, as an example, we are bringing on capacity, but where we're bringing it on is not really costly capex. And so I think if you think about our capex guide, we've reflected our view of what we think . to be able to deliver the $6 billion and the $4 billion in our springboard plan as we go forward. You know, we'll obviously continue to update you on that, but that's sort of how you should think about it. Do you ever remember in Springboard that... What helps lead to the very powerful incrementals that you're actually seeing this print with EPS going up three times as fast as sales is that we already largely have Capacity and the Capability in Place to Service the Grown.

Speaker Change: <unk> have.

Speaker Change: And then in <unk>.

Speaker Change: Optical as an example, we are bringing on capacity but.

Speaker Change: Where we're bringing in on is not really costly capex and so I think if you think about our Capex guide we've reflected our view of what we think we need to be able to deliver the $6 billion 4 billion in our springboard plan as we go forward. We'll obviously continue to update you on the on that.

Speaker Change: But that's sort of how you should think about it.

Speaker Change: Remember in springboard.

Speaker Change: That.

Speaker Change: What helps lead to the very powerful incrementals that you're actually seeing this print with EPS going up three times as fast as sales is already largely have that.

Speaker Change: Capacity and the capability in place to service.

Wendell Weeks: So what tends to hit here is, let's say. thought excellent job on so let's do opt up is these are products that we're making for the very first time. so that the amount of throughput we're getting through those given lines that we're dedicating, we switch a line over to do this product, is a lower throughput, lower productivity than our more established. As those revenues grow, as we get better and better at making the product, which we do every week, we'd also see some of those friction costs drop. Wamsi, did that answer your question effectively? Yes, absolutely.

Speaker Change: The growth.

Speaker Change: So what tends to hit here is let's say.

Speaker Change: Excellent job on so let's do opt out is these are products that we're making for the very first time.

Speaker Change: So that the amount of throughput, we're getting kudos given lines that were dedicated when we switch align over to do this products is a lower throughput lower productivity.

Speaker Change: More established as those revenues grow as we get better and better at making the product, which we do every week.

Speaker Change: Also see some of those friction cost.

Speaker Change: Drop away.

Speaker Change: Once he did that answer your question effectively.

Wendell Weeks: That was super helpful, Wendell.

Wendell Weeks: And if you could comment on the visibility of Gen-AI orders too, that'd be great. Thank you. So we just completed. Our quarterly detailed dialogues with our major hyperscaler customers. And what we see is that is reinforcing of our growth estimate. I think what causes Noise Level To Some Extent A different players can alter their plans in various sort of subtle ways. But given the range of our customer What tends to happen is these will balance out so that in total, what we see Continued reinforcement of our growth expectations. Dialogues tend to be, how can they get more?

Speaker Change: Yes, absolutely that was super helpful. Wendell and if you could comment on the on the visibility of the NII orders too that'd be great. Thank you.

Speaker Change: So we just completed.

Speaker Change: Hi.

Speaker Change: Totally detailed.

Speaker Change: Dialogues with our major hyperscale customers.

Speaker Change: And what we see is that is reinforcing of our growth estimates.

Speaker Change: I think what causes nausea.

Speaker Change: His level to some extent is.

Speaker Change: A different players.

Speaker Change: All to their plans and various other subtle ways.

Speaker Change: Given the range of our customer footprint, what tends to happen as these will balance out so that in total.

Speaker Change: What we see is continued reinforcement of our growth expectations.

Speaker Change: By and large the dialogues tend to be how can they get more.

Wendell Weeks: of our new product. And how can they take advantage of that? of Advanced Manufacturing. Those tend to be where all of our attention with our customers are is. not quite getting them as much as they would like from us. Now, that being said, it can be hard for us. As those dialogues are happening, to determine the difference between are we gaining share or is it increase in market, we tend to only be able to sort that out. usually in the rearview mirror after we get. the end of the next month, the month after to be able to reflect on what other was that helpful.

Speaker Change: Our new products <unk> and.

Speaker Change: And how can they take advantage of our advanced manufacturing footprint in the U S. So those tend to be where all of our attention with our customers are.

Speaker Change: We're not quite getting them as much as they would like from US now that being said it can be hard for us as those dialogues are happening to determine the difference between are we gaining share.

Speaker Change: Is it increase in market, we tend to only be able to sort that out.

Speaker Change: Usually in the rearview mirror.

Speaker Change: Do we get.

Speaker Change: The next month for the month after to be able to reflect on what other people report.

Speaker Change: Was.

Unknown Executive: Yeah, that's that's great. Well, thank you so much. Thank you. One moment, please.

Speaker Change: That helpful to UMC.

Speaker Change: Great well thank you so much.

Speaker Change: Next question. Thank.

Asiya Merchant: It comes from Asiya Merchant with Citi. Please proceed. Oh, great. Thank you for taking my question. Just back on a comment on optical, you know, obviously, very strong demand here. And I'm wondering, you know, is this an environment that's very supply constrained at this point? And if there is an opportunity, you know, to further press on pricing or further strengthen Corning's moat in this in this segment? Thank you.

Speaker Change: Thank you one moment please.

Speaker Change: It comes from <unk> <unk> with Citi. Please proceed.

Speaker Change: Oh, great. Thank you for taking my question.

Speaker Change: Back on the comment on optical.

Speaker Change: Obviously very strong demand here and I'm wondering.

Speaker Change: Is this an environment, that's very supply constrained at this point and if there is an opportunity.

Speaker Change: Further progress on pricing or further strengthen Corning note in this.

Speaker Change: In this segment. Thank you.

Speaker Change: Okay.

Wendell Weeks: answer is think strategically. You're right. I think it'll be especially applicable. Next Generation of Products. more to come in that space. See some of what you're talking about already reflected in the financials. As you see the rising profitability of our office. Segment. That includes actions around that strategic centrality of what you're pointing out, Asiya. for NextGen Innovation. are as competitively advantaged as we hope we would believe that improvement in margin profile would be. Thank you.

Speaker Change: The answer is.

I think strategically.

Speaker Change: You're right.

Speaker Change: Strategically you are right.

Speaker Change: I think it will be especially applicable.

Speaker Change: Sort of the next generation of products, we're introducing.

Speaker Change:

Speaker Change: So.

Speaker Change: More to come in that space, you see some of what Youre talking about already reflected in the financials.

Speaker Change: Because you see the very the rising profitability of our optical segment that includes actions around that strategic centrality of what youre pointing out.

Speaker Change:

Speaker Change: If our nextgen innovations.

Speaker Change: Our as competitively advantaged as we hope we would believe that improvement in margin profile will continue.

Okay.

Speaker Change: Next question.

Speaker Change: Thank you. Thank you please.

Samik Chatterjee: It comes from the line of Samik Chatterjee with J.P. Morgan. Please proceed. Hi, thank you for taking my question. And Wendell and Ed, thanks for all the prepared remarks in terms of tariffs, as well as a potential sort of recession. Maybe Wendell, if I can ask you more in relation to what your customer conversations have been since Liberation Day tariffs, and whether when you're sort of outlining the scenarios in relation to recession, is that a discussion that's becoming more frequent with your customers? And maybe even related to tariffs, what are you seeing in terms of customer behavior since Liberation Day tariffs?

Speaker Change: It comes from the line of <unk> with J P. Morgan. Please proceed.

Speaker Change: Alright. Thank.

Speaker Change: Thank you for taking my question and thanks for all the.

Speaker Change: Third remarks in terms of tariffs as well as a potential sort of recession, maybe wendell if I can ask you.

Speaker Change: More in relation to what your customer conversations have been since liberation beat Arabs and where they were when you had sort of outlining go Bob scenarios in relation to the session is that a discussion thats, becoming more frequent with your customers and maybe even rich data. If so what are you seeing in terms of customer behavior.

Samik Chatterjee: Has that really changed compared to prior to that?

Speaker Change: Since Liberty shouldn't do that has that really changed compared to prior to that and just adding on to that in terms of capital investment plans. When we think about your solar ramp how should we think about sort of the flexibility in that plan.

Wendell Weeks: And just adding on to that in terms of capital investment plans, when we think about your solar ramp, how should we think about sort of the flexibility in that plan? If we were to Thanks. on the first one. What we're experiencing was in that sort of third area that I spoke about on tariffs is We're seeing early evidence. of increasing demand. from our existing and new customers. for More Information www.FEMA.gov are advanced manufacturing platforms. These are significant. These dialogues are ongoing. would hope to close some of those agreements and potentially they're significant enough that we would share those.

Speaker Change: Water go into a more significant downturn, how should we think about flexibility around sort of.

Speaker Change: Reading that plan. Thank you.

Speaker Change: On the first one.

Speaker Change: Sure.

Speaker Change: What were experiencing was in that sort of third area that I spoke about on tariffs is.

Speaker Change: We're seeing early evidence.

Speaker Change: Increasing demand.

Speaker Change: From our existing and new customers.

Speaker Change: Four.

Speaker Change: Our advanced manufacturing platforms in the U S.

Speaker Change: These are significant.

Speaker Change: These dialogues ongoing.

Speaker Change: We would hope to close some of those agreements and potentially.

Speaker Change: There are significant enough that we would share those.

Wendell Weeks: publicly in the coming months. Again, because of the fundamentals of Springboard, we have available capacity here. So we would expect that incremental demand to come in at really strong profitability. as well. So what our dialogues with our customers tend to be about is less, you know, capital risk, because we have that in place. And more, we want to have very long term commitments. because what the exact tariff structure becomes over is difficult to predict at this So as we allocate that capacity, we want it to be with folks who have a long-term commitment. Does that make sense, Samik?

Speaker Change: Publicly in the coming months.

Speaker Change: Once again.

Speaker Change: Because of the fundamentals of springboard, we have available capacity here in the U S.

Speaker Change: So we would expect that incremental demand to come and at.

Speaker Change: Really strong profitability performance as well.

Speaker Change: So what our dialogues with our customers tend to be about is less.

Speaker Change: Capital risk because we have that in place and more we want to have very long term commitments from them.

Speaker Change: Because what the exact tariff structure it becomes overtime.

Speaker Change: It's difficult to predict at this moment, so as we allocate that capacity, we want it to be with folks who have a long term commitment to U S based sourcing.

Samik Chatterjee: Is that responsive to your...

Speaker Change: Does that makes sense is that responsive to your question yes.

Edward Schlesinger: Yeah, and specifically on Subalore is that when you think about your plan, there is it sensitive to the macro or given the long term nature, should we think of it as largely, you can continue on that. Yes, Samik, maybe I'll take that one. I think, you know, a couple of thoughts. First, you know, the need for energy is somewhat insulated from the macro. And as you know, Wendell said, we're seeing a demand for US sourced solar that actually that demand is increasing. I think that's somewhat, again, insulated from the macro. In fact, we may actually have some further commercial announcements in the near term.

Speaker Change: Yes.

Speaker Change: Specifically on so lower is that when you think about your plan there is that sensitive to the macro or just given the long term nature or should we think of it as largely.

Speaker Change: You can continue on that plan. Thank you.

Speaker Change: Yes, maybe I'll take that one.

Speaker Change: A couple of thoughts first.

Wendell Weeks: Need for energy is somewhat insulated from the macro and as Wendell said, we're seeing a demand for U S sourced solar that actually that demand is increasing.

Wendell Weeks: I think thats somewhat again insulated from the macro and in fact, we may actually have some further commercial announcements in the near term. When we were with you in March we actually shared that our capacity for wafer facility. We're building in actually all of our solar capacity is essentially sold out for this year, what we believe.

Edward Schlesinger: When we were with you in March, we actually shared that our capacity for the wafer facility we're building, and actually all of our solar capacity, Essentially sold out for this year We're obviously trying to make more, and then we have 80% of that capacity sold out for the next five years. And in this space, we generally use tools like long-term supply agreements with take-or-pay provisions. So I think, again, this is an area where we feel really good about the growth trajectory from where we are now as we go forward. And I don't think the macro environment has...

Wendell Weeks: We can make we're obviously trying to make more.

Wendell Weeks: And then we have 80% of that capacity sold out for the next five years and in this space. We generally use tools like long term supply agreements with take or pay provisions. So I think again. This is an area, where we feel really good about the growth trajectory from where we are now as we go forward.

Wendell Weeks: I don't think the macro environment has a significant impact on that.

Wendell Weeks: a way to think about the strategic situation of where our He's got about 40, 50 gigawatts in that. just the solar was installed. will be installed this year. Our plan has less to do with that growth. as it does as import substitutes. Today, the part of the value chain that we're moving in. has close to zero percent of the ingots and wafers and polysilicon that are installed in the U.S. today come from. our strategic is that we would like to take double-digit sort of share.

Wendell Weeks: A way to think about the strategic situation of where our demand is.

Wendell Weeks: You've got about 40 50 gigawatts in that range.

Wendell Weeks: Solar was installed.

Wendell Weeks: Uh huh.

Wendell Weeks: It will be installed this year.

Wendell Weeks: The U S.

Wendell Weeks: Our plan has less to do with that growing.

Wendell Weeks: As it does as imports substitution.

Wendell Weeks: Today, the part of the value chain that we're moving into <unk>.

Wendell Weeks: As close to zero percent of ingots and wafers in poly silicon that are installed in the U S. Today come from the U S.

Wendell Weeks: Our strategic plan.

Wendell Weeks: Is that we would like to take double digit sort of sure.

Wendell Weeks: Hello! of that. Product that is installed in the U.S. for U.S. soil. So it's less about macroeconomics and it's more about the success of our low-risk, high-return entry strategy. which is why, with the current sense of trade dynamics and a number of different areas in which trade acts. Place, it has made that job of share substitution . Reported Product to Domestically Produce. a little bit easier and a little bit more Thank you.

Wendell Weeks: Love.

Wendell Weeks: That.

Product that is installed in the U S for U S source. So it's less about macroeconomics and it's more about the success of our low risk high return entry strategy, which is why.

Wendell Weeks: With.

Wendell Weeks: The current set of trade dynamics and a number of different areas in which trade action is taking place. It has made that job of share substitution from imported product to domestically produced product.

Wendell Weeks: Little bit easier and a little bit more valuable.

Unknown Executive: Thanks. Thank you.

Wendell Weeks: Thank you thanks for all the color.

Wendell Weeks: Thank you.

Unknown Executive: Please stand by.

Wendell Weeks: Please.

Mehdi Hosseini: It comes from the line of Mehdi Hosseini with Susquehanna International Group. Please proceed. Yes, thanks for taking my question. A couple of follow ups. Wendell, can you tell me what you hear from your panel customers regarding end market demand? Obviously, the TV is part of the consumer electronics is very sensitive to macro trends. And I was wondering what you're hearing from your customers. And I have a follow up. Sure.

Speaker Change: He comes from the line of Mehdi Hosseini with Susquehanna International Group. Please proceed.

Speaker Change: Yes. Thanks for taking my question a couple of follow ups I window can you.

Speaker Change: Tell me what you hear from your customers regarding.

Speaker Change: End market demand and obviously the TV as part of the consumer electronics.

Speaker Change: With trades and I was wondering what youre hearing from your customers I don't have a problem.

Speaker Change: Yeah.

Edward Schlesinger: Hey, Mehdi, this is Ed. So our view of the display market is that units for the year will essentially be flat, roughly 207 million, somewhere in that in that We do expect there to be growth in the glass market driven by screen size increasing, you know, somewhere in the zone of about an inch. In the first quarter, I would say that China's stimulus has had some impact on demand, but we're not necessarily hearing anything that would take us off of our view of the numbers I gave you for the end market at this point. So follow up here, given your reported Q1 and assuming that there is a price increase embedded and you're out for a flattish volume shipment, does that imply a significant uptick starting in Q2?

Speaker Change: Sure Hey, Matt This is Ed.

Speaker Change: Our view of the display market is that units for the year will essentially be flat roughly $207 million somewhere in that in that zone.

Speaker Change: We do expect there to be growth in the glass market driven by screen size, increasing somewhere in the zone of about an inch.

Speaker Change: In the first quarter I would say that China's stimulus has had some impact on demand.

Speaker Change: But we're not necessarily hearing anything that would take us off of our view of.

Speaker Change: The numbers I gave you for them and marketed disappoint in time.

Speaker Change: So follow up here given your reported Q1, assuming that there is a.

Speaker Change: Our price increase embedded.

Speaker Change: Hugh.

Speaker Change: Outlook for flattish volume shipment does that imply significant.

Speaker Change: I'll take a study in Q2.

Edward Schlesinger: So what we're seeing in Q1 is, as you No, we didn't. press in U.S. dollars. And that's what we're seeing in quarter. on the volume. A quarter one panel maker utilization was a little higher than we would have expected for normal. So that could. to that, some folks who are building. ahead of any trade-out. What we've done is we have reflected in our quarter view guide. that panel maker utilization would fall some to its... Carter, to correct for any sort of movement one way or the other in support. Overall, what we're seeing in this market is Glass Supply and Demand are in balance and relatively tight.

Speaker Change: Yes.

Speaker Change: So what we're seeing in Q1 is.

Speaker Change: As you.

Speaker Change: No we did the price movements.

Speaker Change: In conjunction with.

Speaker Change: Move to the new core rate so that we would have the same profitability.

Speaker Change: In U S dollars and that's what we're seeing in quarter one.

Speaker Change: On the volume side.

Speaker Change: Quarter, one panel maker utilization was a little higher than we would have expected for normal seasonality.

Speaker Change: So that could be.

Speaker Change: Some folks were building song.

Speaker Change: Head of any trade actions.

Speaker Change: What we've done is we have reflected in our quarter two guide.

Speaker Change: That.

Speaker Change: That panel maker utilization would fall some towards the end of the quarter to correct for any sort of movement, one way or the other in supply chain.

Speaker Change: Overall, what we're seeing in this.

Speaker Change: Market is that.

Speaker Change: Glass supply and demand.

Speaker Change: Balance.

Speaker Change: And relatively tight.

Edward Schlesinger: We don't see any reason at this time... raise our forecast the television unit demand Day where it's at, we're just assuming all this sort of evens itself.

Speaker Change: And we don't see any reason at this time to raise.

Speaker Change: Forecast that TV unit demand would stay where it's at we're just assuming all the sort of evens itself out.

Speaker Change: Our growth is primarily driven.

Speaker Change: Through.

Speaker Change: Okay.

Unknown Executive: All right, great. Thanks for the details, Wendell.

Speaker Change: Alright, great. Thanks for the details Wendell and actually going back to Ed you talked about.

Edward Schlesinger: And actually, going back to Ed, you talked about having confidence with a strong free cash flow. You're investing in operation, given your $1.3 billion capex. You have also done really well in bidding and raising. So given that context, why not step up and be more aggressive with buyback? What is holding you back? If you're so confident with the springboard and how you actually executed better than expected, why not reflect that in a more aggressive buyback? Any thoughts? Thanks for that question, Mehdi. So just as a reminder, we started buying back shares in the second quarter of last year, we've continued to do that every quarter.

Speaker Change: Having confidence with a strong free cash flow youre investing.

Speaker Change: And the operation given your $1 3 billion Capex you have also done really well in.

Speaker Change: Beating and raising so given that context, why not step up.

Speaker Change: B b more aggressively buyback what is holding you back if you so.

Speaker Change: I'm confident with the spring board.

Speaker Change: And you've actually executed better than expected why.

Speaker Change: Why not reflected in that.

Speaker Change: The buyback any thoughts.

Speaker Change: Yeah. Thanks for that question Mehdi. So just as a reminder, we started buying back shares in the second quarter of last year. We've continued to do that every quarter and we bought back $100 million in the first quarter and we certainly expect to continue to buyback our shares.

Edward Schlesinger: And we bought back 100 million in the first quarter. And we certainly expect to continue to buy back our shares. I think for us, we like to maintain a really strong balance sheet. So that's important. And as we go forward and generate that cash, I think, you know, you should expect us to continue to buy to buy back shares, that will be our primary vehicle for which we return cash to shareholders.

Speaker Change: I think for US we like to maintain a really strong balance sheet. So that's important and as we go forward and generate that cash I think you should expect us to continue to buy to buy back shares that will be our primary vehicle for which we returned cash to shareholders.

Unknown Executive: Thank All right, one more question.

Speaker Change: Thanks.

Speaker Change: Alright, one more question.

John Roberts: Thank you so much and it comes from the line of John Roberts with Mizuho. Please proceed. Thank you. I think of tariffs a little bit like scope one, two, and three emissions. You're one to two cents. That's basically scope one and two and there's nothing from scope three or tariff impact on your customers in there, right? What we try to do, correct, what we try to do is instead say if our customers have a tariff based or the macroeconomies have a tariff-based effect, we try to capture that in our overall risk adjustment. What we see for most of our customers is their degree of supply chain sophistication is extremely and that.

Speaker Change: Thank you so much and it comes from the line of John Roberts with Mizuho. Please proceed.

Speaker Change: Thank you I think of tariffs a little bit like scope, one two and three emissions your 1% to <unk> based.

Speaker Change: Basically scope, one and two and there is nothing from scope three or tariff impact on your customers and their right.

Speaker Change: What we try to do correct, what we try to do is instead say if our <unk>.

Speaker Change: Customers have a tariff based impact.

Speaker Change: Or the <unk>.

Speaker Change: <unk> economies have a tariff basically we try to capture that in our overall risk adjustment, what we see for most of our customers.

Speaker Change: Is there.

Speaker Change: Their degree of supply chain sophistication is extremely high.

Speaker Change: Ed.

Wendell Weeks: What our main dialogue with them is how they can shift to be able to optimize around tech. So given that, it's hard to predict sector by sector and customer by customer. Exactly how their tariff profile will look. So instead, we try to put all that into our risk adjustment. and capture that in total and how that would impact our demands. And then something like...

Speaker Change: That.

Speaker Change: What are main dialogues with them is how they can shift to be able to optimize around tariffs. So given that it's hard to predict sector by sector and customer by customer exactly how their tariff profile will look.

Speaker Change: So instead, we try to put all that into our risk adjustments.

Speaker Change: And capture that in total.

Speaker Change: How that would impact our demand scenarios.

Speaker Change: Okay, and then if something like.

Speaker Change: Yes.

Wendell Weeks: I was going to say, something like a customer moving their production from China to India that's there, is that something that would be material to Corning, or how would you have to adjust for that? So we started a number of years ago to be able to effectively build the channel to finish our products in India, to be able to support Our Customer's Thoughtful Moves to Different Regions, a simile for different customers. We've done the same thing. Longstanding position. Day, All there's, what we try to do is it takes a while to get these changed in place in our production.

Speaker Change: I'm sorry go on down.

Speaker Change: I was going to say something like a customer moving their production from China to India. That's there is that something that would be material to corning or how would you have to adjust for that.

Speaker Change: So we started a number of years ago to be able to expect if we build the channel to finish our products.

Speaker Change: To be able to support.

Speaker Change: Our customers thoughtful moves to different regions are similarly for different customers. We've done the same thing.

Speaker Change: Long standing.

Speaker Change: Physicians with Samsung in the Vietnam War, all theirs, what we tried to do is it takes a while to get these changes in place and our production in place. So we try to preemptively prepare for it.

Wendell Weeks: So we try to preemptively prepare for it. As far as a shift to India versus a shift to China, either one of those, we will capture revenue from those, and we are already in place to be able to do that.

Speaker Change: As far as a shift to India versus a shift to China.

Speaker Change: Either one of those we will capture the revenue from those and we.

Speaker Change: We are already in place to be able to supply.

Unknown Executive: Great. Thank you very much. Thank you so much.

Speaker Change: Great. Thank you very much.

Unknown Executive: And this concludes our Q&A session.

Speaker Change: Thank you so much and this concludes our Q&A session and I will turn it back to Ann Nicholson, great. Thanks, everybody for joining us today before we close I wanted to let you know that we're going to attend the Jpmorgan annual Global Technology Media and Communications conference on May 14. Additionally, we'll be scheduling management visits to offices in select <unk>.

Ann Nicholson: And I will turn it back to Ann Nicholson. Great. Thanks, everybody, for joining us today. Before we close, I wanted to let you know that we're going to attend the J.P. Morgan Annual Global Technology, Media, and Communications Conference on May 14th. Additionally, we'll be scheduling management visits to offices in select cities. Finally, a replay of today's call will be available on our site starting later this morning. Once again, thanks for joining.

Speaker Change: Yes.

Speaker Change: Finally, a replay of today's call will be available on our site. Starting later this morning. Once again, thanks for joining operator that concludes our call. Please disconnect all lines.

Unknown Executive: Operator, that concludes our call. Please disconnect all lines. Thank you all for participating. You may now disconnect.

Thank you all for participating.

Speaker Change: May now disconnect.

Speaker Change: Yeah.

Speaker Change: Okay.

Unknown Executive: Thank you for watching!

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.