Luminex (LMNX) 4 Aug 202020 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Luminex Corporation's Second Quarter 2020 Earnings Conference Call. My name is Sarah, and I will be your coordinator for today. Today's call is being recorded. At this time, all participants are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. now Senior turn Financial Vice opening would to call Officer I remarks. Currie, Harriss President Instructions] like the to over for [Operator and Chief proceed. Please

is joining afternoon, With Good you our for thank me and and today Homi CEO. Shamir, President us.

we'll comments, questions. your take our Following

today's by be is forward-looking during our of the not are some a Reform protections statements those to hereof are call to historical be statements and only the and the Company's Section made anticipated date on will and are expectations risks certain filed no cause Also, course forward-looking as forward-looking may XX, and we December statements and being financial turn call website. financial a of available in that Shamir. plans based are could covered, the of the and be this speak may the by our will uncertainties, Company Form in I'll update materially section these reminder, of of results extent actual of is you Act non-GAAP of now obligation measures within documents, As Regulation statements. presentation GAAP for President Exchange such and the Factors XXE Investor six on to be Act Relations accordance and these and comparable to recorded, in These over the Securities provided and We consequently year ended as the Homi encourage our measures most replay from XX-Q and or differences current claims on the covered the XX-K Securities XXXX, today's Form call. to contribute SEC Litigation of or with adversely available that or the undertake release, measures purely our months unknown conference Regulation differ subject Exchange earnings and control, which statements. call with detailed cause which on the review the defined beliefs our any maybe forward-looking reports Securities known that and for Private in could Certain to meaning G. the financial in for reconciliation Commission. statements. beyond such are included our our G to CEO, directly a quarterly To non-GAAP website

improving again, largely Total Molecular both of gross call. we this of revenue we with, once an flat in by potential in scale with this quarter and products improvement Harriss, capacity business, million, approximately Gross welcome strides would speaking primarily in quarter but almost driven that focus Luminex of income XX% more operating to $XX I revenue that like by generate Diagnostic To record products. COVID-XX-related Clinical as improved allowed expansion profit have $XXX XX%, to $XX been Thanks, our one. have XXX%, cash. made of expenses second to growing activity by our quarter were and that Today, slightly summary, revenue a result revenue for XX% financial in by of than controlling margin to million with our great grew position, quarter operating paid point make in changes portfolio of our the record Total earnings favorable more XX% COVID-XX-related financial and tailwinds. and directing million. impacted delivered efforts our In stream by another operating for largely and Diagnostic to Molecular And which production LTG earnings strong headwinds on our realized our of for economies the our and as have and our the Science XX% sales stream. demonstrate our the expansion and has exceptional of driven begin to we been margins affected continued improves off manufacturing discipline revenue approximately product Tool, expenses to net Life approximately our effort dramatically operating also million, net cytometry towards mix. team In and significantly than us quarter. difference flow expected, margin really improved about $XX

resulting convertible $XXX issue debt approximately additional sheet will recall our also You quarter, on cash in during that of we the million. balance

in the book million entered sample-to-answer of a As a are a to with shape financial cash for opportunity great to from approximately $XXX in MDx was that shareholders. quarter order result, this million. was nearly Overall, quarter. a an $XX associated majority to forward balance our the looking product of our We benefits with cash total manner put we and use this our perspective, the lines. The

a inspection VERIGENE our resulting letter allowed previous the days. working took warning a the aware, obviously FDA, letter primarily provided warning SP you We and June received we and seriously XX to additional to data within related As from FDA from instrument. on this are responses our I XX, the

nor reminder, a the withdrawal of from any did products the it the of the As manufacturing, of letter or company warning production restrict any require not did shipment marketplace. products, the

the from for taking action waiting are currently addressed issue to response and further FDA. certain the in any letter are or field specific warning However, address we comments

a of Molecular stride new expanding terms our of we identifying with offerings great portfolio, the have individuals our who infected in currently are tests made for COVID-XX. breadth Diagnostic In our by

a contribute beginning our COVID quarter. which SARS-CoV-X clearances EUA like seems to ago, both will and of assay Extended the ARIES our second lifetime of we and around which first in success You QX, for NxTAG the test, Panel recall our received the

in received antibody people of third throughput serology As been that assay. who the particularly you need clinician our for has probably with important and option saw, xMAP the clearance sensitive we recently EUA This our infected identifying is for labs for high presence SARS-CoV-X.

in this tests for antibody about We the the very are market. excited COVID-XX specific opportunity

our SARS-CoV-X also assay the submitted ago, NxTAG clearances EUA to a panel. FDA weeks for few consolidated fourth RPP a new We plus

in work VERIGENE number a an Respiratory SARS-CoV-X our family. and to SARS-CoV-X products the VERIGENE recently of submitted on assay continue assay EUA We for with soon I for target. we Finally, submit planning II on to stand-alone VERIGENE

COVID-XX our the in mid-August. be ongoing for and work We tests X are the our of expanding pandemic. quarter a significant process progress completed in tests in the from of COVID-XX of to total tests result for capacity quarter assay million approximately by demand manufacturing done is in should as per X.X approximately MDx to meet assist order diagnostic all to This being product addressing demand per million

do employees X reference, platform include all more which sold MDx quarter, on approximately products. million For which focus than related main half, tests our serology up This in our we is second already figure keeping we customer area capacity, time, and are anticipation healthy. demand. in of COVID-XX our on our not this of manufacturing were Obviously, scaling the during one safe challenging

ensure a our have continued manufacturing of still employees steps while our of of to wide We wellbeing the taken products. selling expanding variety developing portfolio and

that, like guidance job of into need go it and for would the Luminex lifesaving helping has bring a the entire financial With our of our phenomenal the year. to And of rising employees rest who to challenge. them. to All deeper to are turn over the I team the results to the customer, Harriss solution done to our essential to

Homi. Thanks,

revenue second Homi revenue up Molecular significant a again, of a As revenue $XXX.X profitability over total had $XX.X and led XXXX up growth quarter record $X.XX XX% our XXX% mentioned, We portfolio. the of net share, XXXX. we million, of second reported approximately second over quarter quarter the or in income of with by XX% of Diagnostics million, revenue

flow profitability be of beyond sustainable believe referencing our with sufficient results revenue demonstrate expenses. that For that cash this we've quite would a and while, operating been promise. quarter’s We levels which control

the recognize up reported to respective the revenue $XX.X pandemic particular driven $XX.X and COVID-XX that Looking the In year quarter Life portion cytometry was adversely cytometry was Molecular revenue the $XX.X was was was our business by potential pandemic. sites double install million, part Molecular million, systems Diagnostics due from sales. resulting than quarter customer within Tools the second the Science be for and XX% the from of primarily second XXXX, at XXX% Non-automated $XX.X which our XXXX, as revenue, COVID-XX Tools system quarter revenue Molecular for down demand Science quarter Flow as over inability the lower in $XX.X Licensed of revenue our million, revenue quarter increased due million, of the and contrast, Diagnostics well and flow quarter, to where to down up revenue Technology related. pandemic. the of Group prior need access the COVID revenue our we million, more XX% mainly million revenue by all was was our continue Diagnostics impacted for to XX%. we customers to $X.X sample-to-answer in down X% to second Clinical versus streams, Life with of which

was the the million. we Prior provide majority entering the related. and average which future book the book quarter $XX order placed quarter our to of COVID order an was approximately includes with by orders of ended of were Homi approximately to discussed, we end both quarter unable the This onset delivery. As pandemic, of the COVID $X million, the orders for

$XX.X compared items, by nearly to The partially MDx aggregate and to sales. aggregate was was capital majority million, pandemic. as quarter systems an reported but driven in million, down down second quarter We partners. are offset via portion result line decline primarily Looking by significant at system Diagnostic in our placements the of partners. increased attributable for system bulk our was pressures of sales XX% the XX% revenue the revenue current quarter the agreements lower fold. Molecular a through than for the rental quarter down to Molecular of XXX less sales. reagent increases flow of expectation our revenue in an not via more the Diagnostic in six our Consumable revenue by where quarter, capital decline system primarily or the with $X.X X% in still million cytometry capital half, placements than from to our XXXX, revenue a royalties be our purchases was due Royalty This placed $XX.X

to due indicated primarily on COVID-XX. end-user Some of partners’ our already have sales declines reports

coupled $XX.X reminder, includes result respiratory-related royalties, coronavirus the Total our combined than adjustments. more million contributions and pandemic. As was assay XXX% base up battle XX% accrual with royalty a helping revenue total the findings, self-reported products with up a audit shortfalls in as revenue our to of

Service associated $X.X with more up points was the approximately million, ARIES which than comprised SARS-CoV-X a received we rose In XXX% price to fact, scale sales. our revenue primarily more $X.X respiratory-related our margins contract other included down XX%, of than revenue of Gross total the development to while XX XX% million BARDA products was revenue percentage manufacturing assay scaled and of $XXX,XXX of X%, realized second from the mix. our assay. reflecting favorable up economies from

roughly and offset they sales As year, reflects we and expected were with were stated expenses, in development current our lower related primarily previously, This operating prior activity partially R&D reduced the to XX% flat which growth our in was sales. expenses clinical by to expenses by higher the trial quarter. be reduction driven

a expansion which gross the is XXXX second the of the of by of to significant over second grew second given expense $XX million operating quarter to from control contributed of an record revenue, quarter profit, million XX% $XX.X revenue. improvement This operating margins XXXX. XXXX in $XX.X amazing of million quarter all Our achievement revenue in or of the addition of and only

to for United a June quarter XX% second the tax in ended XXXX. quarter, included rate as in tax year benefit the which compared quarter XX in was the effective projected of the Our of losses prior States XX%

loss distribution some and XX% Our Cash income. rate ability our $XX the issuance the XXXX, income up includes quarter from from cash operations more our our currently flow to against greater debt than million. subsidiaries. the million, investments also to high-level foreign We $X.X second absorbing nearly of million, With guidance, quarter like consider while benefits of XX% compared purchases across expect worldwide by the estimated to first result significantly convertible proceeds million rate be $XXX of consolidated XX% respectively. U.S. when respect full-year effective the net This to of million and the is tax affected tax a range federal dividends of and we'd our approximately effective claim cash generation and for payment provide quarter the were tax sourced to CapEx models. of profit in your in to $XXX.X $X.X to of of metrics and updating

expectations for the full-year. prior to should be XXXX, of $XXX XX% prospect back success, for full-year top-end find thinking the with communicated first we our revenues factors likely At the The guidance initial Two ahead of million. exceed account expectations the the continuation of continued primary half when of first ourselves with of We $XXX to COVID-XX range about to respect midyear, million the of given previously taken half the is year. pandemic. into of our

tailwind with first in associated also Diagnostics in our partnership The pandemic is business, our the primarily but business. Molecular modestly

flow a partners corresponding academic who revenues the is second research our our and operate The also affecting headwind both marketplace. in

it of guidance. business virus, of difficult achieved COVID-XX-related the specific COVID-XX positive portfolio we've remains our remains weakness the other our this relative portions results us, the with the with provide far associated related Given so the and growth to year, in

updating to However, we full-year more million. our be are $XXX expectations than

respect be our are mentioned affected forecasted XXX% increase at versus of a year. strategy to our assumes first our additionally, $XXX revenues continue of as versus business could XX% flow we strength up XXXX. weaknesses access anticipate customer With in exceed result weaknesses the customers already weakness to Molecular I be our quarter and Diagnostics revenue our to to half products in expectations to quarter, a challenges, the and the XXXX, COVID second XX% this continued Molecular in patients. in ahead market and component as the present is by in upcoming revenue. LTG of slight modestly treat midyear, academic key million offset a continued As same the in are guidance as of be of identify to and Diagnostics half research This third between to factors. our higher continue prior to We

success somewhat serology some LTG by offset within franchise the of our with our weaknesses However, could new product. be

normally As revenues, in a slight quarter quarter is the decline reminder, a annual third trough the second year surprise. expected from of is the year this a our every of so not

highly product the drop are gross margins current should third mix, mix. gross quarters slightly our dependent on in Finally, upon the Based margins quarter.

expected year. third the rest our it Obviously, final sometime further provide are November, our expectations. for the clarification flat we expenses roughly to comments. operating I'd we'll like end to the October results first or of some when Homi on With at full-year remain quarter over in of However, turn the report for week that, to

Thanks, Harriss.

us. As with has navigate extremely we challenging continue through this the to I'm to placed time, responded pleased company on the way demands our

We new. meet increased to as strive have manufacturing to significantly further expanded our requirements our customers, and existing the meet of the anticipate we continue both and demand to capacity expansion

systems current several flow near-term. developing VERIGENE the We time, new xMAP core our now in same the QX more year. installed technologies, the directly sample-to-answer have system launching cytometry has systems our or in market Technology more sold in and with the offering. pandemic revenue launched in including that XXX portfolio, several to reagent base and contracted more and and either generating additional since we of targeting under increased beginning testing rental, this the our At invest our continue were We than than anticipate solutions our XXX

member is that the him having as Medical mentor excited Abbott, a diagnostic invaluable. Chairman, in the number to Scientific been of Board a our in I'm tenure our leadership believe held Senior long-time has XX with build Ogunro business, a years Board, have Affairs especially to Wally small, of Loewenbaum. done On and to discuss shareholders, was Chairman, from has press contribution behalf I retirement for to thank where for for the more Lead together Our We way, generate will XX has threshold operating $XXX the company open I'm at that Ed’s of revenue that we left company Ogunro would but ability for who all today, years, when to invaluable his the Officer as Dr. of location. have leadership line want employee, connection our please announced been assume we with Chief friend. very XX personally, quickly couldn't strong Ogunro, million the Along our as leaves and about me growth of no profitability amount of a to level profitability the to we on his earlier cash He Luminex will many and me contribution for We best will executive than our enhanced a the final significant discussed Operator, past release Board. his well Wally revenue Ed a and for going I nothing, out has that a revenue. have and positions we Wally an helped Chairman the Independent and company position of demonstrated to further the of served annual the of as announced the very a over question. us. significantly through pleased retirement. forward VP wish responsibility he single In as has and Board during milestone work been tremendously multinational a as expected previously, – retirement, hold in Board assume will the on the over guided substantial Hospira. note, Dr. of I like role the promised. Wally years. the service joined and the our the our had of foundation Director. Dr. and R&D was Wally and accomplished our of announce for

William of Our you. from comes first the [Operator Blair. Brian Instructions] with line question Weinstein Thank

now Your open. is line

for today. taking afternoon. questions. This is guys. Hi, Andrew the Good Thanks on

to quarter? it quarter Can of what guess sense modeling COVID-XX along give third assumption in I a revenue your you a give relates the for maybe third guide. assay question First, us that And as the you is capacity? color footprint throughout buildup to that I referenced can some to respect to the with adds some of you've know also that, us manufacturing And the quarter. your with on sort additional

get trying that I'm of what's So baked guidance? better just to sense a into

flu remains the the move expected it second bit. where to roughly Sure. the we leave the that revenue XXXX, season the It's to COVID-XX But was XXXX and flu is XXXX quarter. likely equivalent respiratory a drop contribution as season, little in towards

And an Diagnostic revenue, end decline in So We likely. weakness aggregate Molecular associated then themselves most back with you come obviously, re-manifest the some or activities. expect of other forward. into move in respiratory fourth we'll as as – what we and that partnership up to in COVID-related overall other the the move some business modest with strengths of is mentioned we the season potential the to headwinds quarter, – the

demand that sort COVID-XX of Okay. moved bit? And the demand Thanks maybe side opportunities. months, I as products is on the for color. for throughout color accelerating molecular seen, here Any summer on that coming you’ve you of as a can underlying those things that guess additional the down then provide of we’ve the for sort or

Yes.

of So jump Homi make. and let I'll let Currently, pretty too. sell we we everything answer can much can me part this in,

and as have capacity, our So is been the demand for as significant to well. that we've capacity manufacturing we sell able us expanded

that we from of book during QX million of Harriss carry we introduced to Molecular us Yes. an why I absolutely have that that's QX. and call $XX is the order right, Diagnostic mean, majority

Molecular think half delivered of that during the in what Just that's second quarter. about alone, we almost Diagnostic

$XX-something million was Diagnostic. quarter Molecular second The on like

is more eventually demand ramp we that will We our line et We it strong have still for in before end we think will the be and manufacturing a products. year. that the is all the We overcapacity operation. mid upgrade be to will in up. there manufacturing here, that it so So think the of cetera, automation, all able molding of somewhere by order very QX

those. us And looking excellent at obviously, capacity. get the VERIGENE So are that we on EUA approval give line will to

a lot revamp things production. pipelines still to So there’s the on of

Got it.

Okay. me. for last And then, I guess, one

on products know you you should Thanks. you that I VERIGENE it II referenced, that to for relates anything timing VERIGENE be assay, the I VERIGENE just expectations timing give about those? us those for how thinking the U.S.? submitted As but can we

a summer, It's a the hopefully, will from FDA full going The to panel. of next, be multiplexing as have the end the before full during II VERIGENE summer. panel us,

it. Got

Thanks Okay. guys.

You bet.

you. Thank

line Our with Couillard the of Jefferies. comes next from Brandon question

Your line now is open.

new or in on second Thanks. that panel approval Good half? that the have of Harriss, I revenue any EUA outlook, pending to be pipeline any want just second other would just the like afternoon. half some stuff and or confirm, outlook. the you regulatory in that's the serology, top approvals embedded on multiplex

with example, Because, we the the into or to approval. that numbers, take three will NxTAG operating market. said, QX know, combine that, eventually with Harriss the as day-to-day. to again, come ago, when our combine, further. not from to we we as the Brandon, control baked VERIGENE it, RPP result, It the you going one But NxTAG our also then might not I on get we or guidance are have we top. thing the The And we NxTAG replace in weeks be are move II. FDA RPP it's have we it VERIGENE the But we'll When either we for submitted only the here. we know so COVID-XX,

But in have to are VERIGENE it active get Chicago I And So Chicago was gearing and solution. those definitely during it. just to you, we QX, remind we we to launch very products. respiratory digest when QX

Another what didn't it, that provide was we because a way Brandon, range, said million about $XXX to think is we guidance plus.

is the because new into additional plus products infinity number above that sort the is baked right. obviously, of that, So

little more how million for – of million. as than new at the that to there's over and products, expected, $XXX But we demand so above comfortable further – million the were even over we possible. is range, But with thought than it a originally million first of that estimate could rate second So year to X.X% modest you big to number the million requires no $XXX unfortunately, the the At a the of the $XXX have were $XXX $XXX rest above it's if us, half come then those most over products at new half, no faster or plus all exceeding given it half. be. or up sort at you base, modestly first

Got it.

for Okay. were maybe you the second [indiscernible] have think before? the And of new that quarter? XXX, I and Harriss, to versus then molecular then How VERIGENE it’s for in quarter. for have do those ARIES the existing didn't access And customers many second accounts the utilization metrics in

Yes.

So most new also reagent accounts, most were were rentals.

assay long-term buying than customers panic them the has COVID they made then And for them So COVID-related commitments rather to off. turn gone, purchase in a when activity.

agreements. all We're were majority honest, that quarter number in single be cut actually ahead of you our to to the that. on numbers prior half, So equivalent it's rental. reagent reagent rental And

really rate of in component we're because comfortable COVID, So with here. a that. for there's The ARIES utilization COVID systems our

I quarter, – XX,XXX XX,XXX. about in last believe, were the over recall, it's a you little we – If

It we're COVID-related by over products. we're you’ll XX,XXX, – have about COVID VERIGENE. a This was as NxTAG. recall, didn't VERIGENE, really pandemic. on VERIGENE, customer. remember just and any that time, This utilization just utilization XXX,XXX number But we're ordering And over quarter, VERIGENE the a with little ARIES customer. affected flat all result, for was with wasn't per ordering

Got it.

growing there your business. new double-digits. structurally down OpEx just – is the in year-over-year flat a one, though reality to and in on you sort structure Last cost something structural you're even And in things basis are call favorable Okay. it, you on terms touch topline long of hold how of, the how run thinking

we in of us, are earn variations for our the more trials. dependent conduct obviously, salespeople revenue, clinical And more. as upon large fortunately OpEx the So sell

and commissions the Obviously, We So COGS step incoming inventory of and to anyway. things. to functions absorbed those we through more accounting quality the kinds people at of run need people get need sales invoices. more go process the But associated bonuses, process costs and most which quality inventory-related up, they such. there are

what that significant profit. opportunity great find of continue So OpEx is we control a to have we generate tightly to and levels

We with on being travel the respect been haven't to foregone than everybody any current quarter like COVID. planet in other to able has spending the

we're OpEx that we is meaningful So that of the excited where stays fueled wave And by continue that within products support. comes to next out. the growth product of be relative can full. make can pipeline next the about amount revenue investments R&D, wave our to of OpEx And so

to from the we in year, report. keep anticipate tremendous $XXX it's of OpEx And organization an remain effort the Yes. million. think expense And same I a about to level exactly the last the really

increase we As this quarter, earlier we confident grows XXXX. earlier doing. revenue a that's expect continue to during year, compared profitability are keep the saying beauty And don't and we said our we what our And in this as fairly it our going continue. are said year, improve. model. in to was it to we And and the grow year-over-year, really demonstration to in that to we the is and going it's And that's exactly it

to OpEx the most million. is hold the will revenue growing, we the around bottom go as of line, long and As $XXX as that will

you. Great. Thank

next Our Instructions] line from [Operator question Tycho Peterson with of you. JPMorgan. the Thank comes

now open. Your line is

Hi. questions. on for is Eleni This taking Thanks for our Tycho.

much mentioned wondering, can wondering in burn was think I the just first, which book, how terms the of So of of And book? revenues this most $XX order you rate in on sort to you this convert is order million, of XQ? COVID-related, you

placed, we unable that book future to first ship quarter. order were both orders for to represents delivery. that So that a But you in placed were how about orders also What is is book. think order let second me that orders the tell larger portion

$X were we we maybe into the can quarter, quarter, We everything have we current So you are have mentioned for that a In to future able orders obviously, manufacture. delivery. sell happens what typically shipping. problem that when any go earlier worth million I of don't placed

future we So placed orders quarter forward were for orders of but a lot supply, some carry that third other had backlog into delivery. the of that we also couldn't that

in for there. monetized delivery, in that is of likelihood even three are third will to out small fourth that the certainly are we’ll instance, for quarters be that able the quarter placed ship there's that a orders, like So that future million quarter. be portion And $XX the

So to today. we indicated of deliver our time are in the able will system be times everything for on as that

that And the and will and quarter. be it majority monetized of be so current of this shipped in recognized year revenue placed all and the will

So effectively, of the third the quarter way the of we're third almost way, of the out third a a gate. through

mentioned XX% sales, to compares of then and higher driving to back think the the sort about of turning into quarter. the to sales, capital in half helpful. That's it about you which talk sample-to-answer over are here system this what's the heading less of you proportion the year? capital how Can half improvement placements, And first XXX, than

What's so a and driving market buy are that. are to Obviously, patients limited pandemic long-term and capital in for manufacturers commitment having sales as immediate a crisis solution. they they clinics at COVID and across as of the see solution a no well. presented means with, Other the are equipment, a need not technology. to with we which And conduct presenting and to with need the result an issues capital hospitals a participants the wanting a make these test,

every it hear You day.

are to fortunate amount all we these can so of can done rentals. And overall we whatever a under placements supply do And just for we're our significant the we to reagent customers. best us, that

also the revenue short-term for three the in ease sale are conversion short-term only long-term to we realize with where years. long-term reagent commitments we But and effects, as not use of agreements next people such. to possibly rental commit a capital system have five to they So with the making

tend and to seen normally buy international, the also, And mix also international rental compared we reagent. in to have

has way, just number sales not system. of But So beginning increasing it's the that's be forward. of the we selling, that's helping been we the for going And rather by rather also XXX overall since of us. business so we tremendously to systems, have reagent annuity year, the upfront, rental our because

talk Great. in That's helpful. about particular how to been And relative INTELLIFLEX environment? expectations your the then it's lastly, and xMAP the given you progressing rollout COVID can

believe which evaluation, ship partners. the it KOL, is reporting two call that COVID-XX the the Thermo Merck it what the and during dual out or some are of very going some who roll system. They interesting are using well in to couple will in vaccine, especially Yes, in of people Fisher, question. investigated people to instrumental as use are in reporting as to vaccine We We be pharma. we dual now we

it sales about modest XXXX. what be do We partners launch for think So those beginning, was will geared very But excited send we during well. it, rolling them. you it's to as And send year, waiting from to a start of in that those again, the just us as we getting just recall, it of that is, acceleration anticipate KOL reporting, actually, launch we But the to we we if give I to some unit your will couple originally dual in it if this because feedback actually that KOL need mainly plan. get said and anticipated. conference those are a should especially more

Thank you. Great.

bet. You

you. Thank

this further remarks. Shamir I questions queue the no like would to Homi for turn at over closing now have to in We call the time.

Have everyone operator, great near see person your Thank forward you, our the on for in attendance earnings to day. We a thank in you, very look future. and call. you

Ladies your and call. conference this participation. concludes Thank you gentlemen, for today's

now may You disconnect.