Silicon Laboratories (SLAB) 26 Jul 232023 Q2 Earnings call transcript

Hello. My name is Sarah, and I will be your conference operator today. Welcome to Silicon Labs Second Quarter Fiscal 2023 Earnings Call. [Operator Instructions].

I will now turn the call over to Giovanni Pacelli, Silicon Labs Senior Director of Finance. ahead. go please Giovanni,

and everyone. Sarah, good you, morning, Thank

We be the available this meeting, Investor replay will and a silabs.com/investors. for at section our are of recording Relations website X weeks on

website. accompanying press earnings are on release the Our financial and also tables available our

today second and Executive Joining activities. and recent quarter Johnson; financial are Officer, They Hollister. Labs Officer, business Financial performance Chief John Silicon will Matt President me Chief and discuss our even

risk forward-looking statements take on remarks include We'll differ as statements. to obligation contained encourage review after today We filings, of uncertainties. no forward-looking and factors you materially comments assume our information date conference in this cause any us statements to our to important and SEC subject base that questions prepared results actual to from of these future. forward-looking could statements those and to in the our the call risks We identify update will which these available

refer financial press the release call website. the non-GAAP in Labs earnings today, company's Additionally, our reconciliation Relations section the Investor results is certain to information. to we and during GAAP of Silicon A included our will of non-GAAP on

over Johnson. Labs to the Executive Officer, Chief Matt I'll turn now Matt? call Silicon

a Thanks, and solid guidance. Silicon second line Giovanni, non-GAAP in challenging quarter earnings everyone. and good Labs' morning, our Despite with revenue environment, market team delivered per share

our of impacting win and our further revenue demonstrates saw favorable of business we momentum. our strength elevated Broad continue record resilience, commercial demand inventory design erosion, of industrial the achieving quarter. quarter, in market the during However, position This impact units, both showed although and the strong and customer the business our weakness

year-over-year. XXXX, the up first win half So design is our far, in of pipeline XX%

ramps ahead, market the Looking year continued will at that design of offset the headwinds some ongoing production in the level. half with second we've

opportunity in potential, our now challenges, call, design the dynamic at confident mid environment. However, over difficult $XX revenue growth excited to expanding short-term over continued with which funnel, these market year. is and It's an time XX% and how are stands long-term that strong we even last market important same up we the much by the win given growth are to billion, note and

over it the hand cover financials. now John to to I'll

good Thanks, and morning. Matt,

million Second our midpoint quarter X% revenue sequentially. was slightly down a the the sequential range ASPs and was basis. quarter volume of $XXX in Unit above on guidance year-on-year. declined up

unit, connected from the During I&C well. electronic segments In a X space, up of labels we period quarter. strength Industrial business All equipment strength in had In the performed which retail shelf commercial In the in segment, smart cities, strong we strong. year. million, and last quarter, saw in the business category our at the smart the metering. and we was XX% saw and $XXX Industrial Commercial same ended of

Life & we up declined Europe, continue Home for year-over-year of business shipments QX, levels the in The to during at Home XX% customer inventory which XX% to Life. Geographically, end unit for XX% quarter & DSI and stable the down stronger was in the at That QX was Revenue year-on-year. was second in revenue is the customers. QX first direct from down days. for shipments APAC to Americas strength year-on-year. High was $XX greatest saw to XX quarter. Distribution million. impact mix due

XX% and results. Our of top our customers historical X% revenue revenue, the largest was under our quarter consistent customer in with of XX about were

largely was at manufacturing changes This price lower to the for expenses mix. effect such due onetime combined costs combined no product based sequential the XX.X% gross lower $XXX were items with specific the quarter, Non-GAAP the at as in the than lower than no expected first the decline expenses million. year favorable margin States. in increases for input to we lower margin and expectations we with of quarter major fringe were mix. on our in experienced due the expected the on year, increases of primarily gross in The ending costs. ended There variable from Non-GAAP quarter, product beginning operating United price is in this at quarter

income operating million XX.X% or of Non-GAAP sales. $XX was

continues our tax on the higher above GAAP effective estimate the requirement impact expected, of in non-GAAP million. an in slightly development $XXX rate rate. range the than effect GAAP be We upside our non-GAAP R&D for Earnings non-GAAP On Our tax ended the to primarily midpoint tax inflationary that and normalized OpEx. was costs at long-term capitalize on operating expenses revenue rate slightly requirement we teens. of without tax research effective guidance have capitalization purposes $X.XX, margin XX.X%. high a favorability a in share basis, the the per basis at were ended would gross on a and to

was income favorable around pretax the guidance to GAAP Our our $X million. range midpoint of by

and GAAP the slightly for expenses our forecasted timing year, for earnings the $X income expense quarter, the about to by Accordingly, due was tax our However, guidance share range. million. of the of $X.XX were R&D unfavorable below GAAP capitalization per

ended Turning with to of the million. on the and investments $XXX balance quarter cash sheet. We

about accumulate receivable design accounts strategic we balance inventory in strong continue at X.Xx. the $XXX to to ended market we've of $XX quarter based a million momentum days. die outstanding $XX the softer Our win on bank as years. million, of XX leverage in days We few past million grew with turns Inventory to seen the in to the quarter for the sales total added net

the During quarter, notes. on the our we redemption process second finalized convertible XXXX

market July $XXX million, the the component shares shares, issued of the notes, also the Directors million. which shares, our of quarter activities is total through a the funded an buyback company's XXXX par in with XX, million in-the-money the $XXX around bringing shares were On the XX fully reduction ended cash. end of incremental million diluted around of The We $XXX since active share was in count Board net these authorized in XXX,XXX. our in an the shares. As share the settled We of under in at expected, all-time the QX X.X of $XXX executing total count about million stock, was result million authorized which to amount we purchase QX, low value our IPO. retiring common outstanding just

At fund years this a outlays for have To remains in credit we pattern time, are capacity have point we banking of new balance a in fully in company excess to and the the the QX, syndicate million various business I&A divestiture healthy, deployed X ample the we deployment. cash revolving we the drew existing strategy. facility, facility normalized from capital X-year $XX very execute partially with and these of and business capital our financial also for Overall, from the sheet the our renewed we term. ago

the over I Matt, cover I will turn call Before to third guidance for back the quarter.

comments. Matt in opening As indicated his

has low weeks, $XXX our are bookings. Over the have we third range quarter million, both for This impacted experienced very units units. we levels business business million expect Accordingly, to we $XXX of in QX. in of decline and several the past of guiding revenue the to both

$XX are environment, in range Given temporarily plus/minus to market the this from midpoint. million expanding we the the uncertainty

at margin to be the XX%. gross slightly non-GAAP quarter expect third in We higher

to Accordingly, We are third are OpEx in $XX the non-GAAP taking quarter. operating control the expecting interim additional million. we to our to third in expenses steps decline quarter

tax XX% a foreign The tax certain rate expect tax non-GAAP million the to rules in includes approximately related $X credits. rate the IRS approximately benefit a discrete unfavorable the third quarter. to lower related the pronouncement be We last of week, onetime to delaying from effective of effectiveness

Our GAAP non-GAAP earnings per margin be share to On in to we a basis, expect gross is of be range XX%. the $X.XX. expected to $X.XX

We $X.XX operating expect and per between to $X.XX we to of GAAP million, rates a share loss income per approximately expect be expenses be and $XXX GAAP share.

turn over call now Matt. to the will Matt? I back

top Disciplined John. we as execution environment. Thanks, current remains a navigate the priority

actions temporary John been doesn't way taken or mentioned, in or ability we've our all manage business service expenses a we've the impact that As new potential secured. to appropriately deliberate long-term mid- to but

of We market X that X our of products. in continued confident portfolio capturing In securing and share, a to ahead for industry-leading expectation we Series quarter, have recovery. we second our Series products our strategic invested expand is the are inventory portfolio market

FG-XX deploying radios FG-XX's over dual-band a low-power Amazon smart agriculture, allow month, area The gigahertz, communications for a for enables device edge new X which smart single like applications in new energy SoC band supports and sub customer Bluetooth protocols neighborhood networks. low and and Sidewalk. addresses networks capabilities key segments We wide for needs like on cities multiple growth design, which developing bill announced including and

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of announcement favorably the and of certification and administration development about positions the cybersecurity secure The coupled to products. bind the their most a to and offer commitment the market. manufacturers program, solutions cybersecurity recent device us with the labeling from numerous retailers connectivity in enhance

so. security a and already adopting of more of growing seen anticipate proactively products, customers trend have the in we all levels We higher for customers

will every skills IoT developers Work in-depth incredibly for and the XX developer in community will which year. A popular every major will practical IoT Conference come registration held virtual our with Also annual accelerate with quarter, their feature sessions ecosystem. be and XX, covering we on Conference, away X,XXX with product our fourth conference than development. over is 'XX and attracts knowledge more to technical protocol August opened

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despite maximizing are long-term the and In ahead closing, us we potential growth of current industry on the challenges. mid- focused significant

Our product strong confident to profitability. in our capture incredible of opportunity Despite execution strategic market the outperform short-term portfolio allow headwinds, maintaining we our through ability effective plan. are market to positioning while us the and this long-term

to now back over for hand it Q&A. Giovanni I'll

you, Thank Matt.

announce Before August Conference to Citi's Markets participation Global in in like City we open York in on September. Forum Keybanc early X the Vail Capital conferences, X Technology Technology call in Annual upcoming for New I'd Leadership Q&A, and XXXX our

question limit the your To you possible as ask people before X accommodate time market opens, I open needed. X the now for call as questions. follow-up if to that many and We'll

[Operator Instructions].

Our Matt first from Cowen. with comes TD Ramsay question

first outlook get could I'm just guide? I but the segment, you're I question, of to John, to & know guess going cleared I quarter, a Home shipping, the the all sell-through million real bit. take, just don't up to here part and segments a try guys guess, in is I embedding to delta -- the inventory got for And under specifically maybe was retrospect, in that or and peak give question you first, this And maybe at $XXX be you're clear guide my trying Life for and given bit the usually share to X the guess the the if out. by now I you it's what pretty assume, a segment over-shipping

perturbations end back the and assess serving of of steady to sort markets on that of segment, that sell-through in as segment, normal? get what revenue a looks sense any once home state for kind just inventory a you these you're your end if normalized in that markets to like the life all So sort

that as have Yes, to I our the a Matt, market I channel right as long XX% hard good digesting say, think I very mid call the you we where the since in inventory We a It's outcome. understand. to as there's realistic ourselves period business. excessive we it long-term Suffice the term, And to over about are indicated, and is we indicated. think of do now. CAGR clearing that and a feel as that goal for dollar. we a see that see in

the growing home over As in business the slightly in we a about is market commercial past, and we the business talked that itself online and time, of than has and higher industrial trend that that, do expect very business, wins for well. medical persist. applications and in new to in the [verbal] in have exciting example, But applications we as some particular, life like

split segments? up on the follow between there, John. Anything guidance to Just the

seeing third It's sequentially for what the roughly split, of Matt, quarter. in we're terms

here, to And said we're what that definitely showing resilient. seeing will itself of seeing that in that we're we've we immune impacted macro those is only exposure, we And be, with I'd do experience. saw to time, that's saying, addition each more not that, consumer most QX. unique industrial think, definitely better. The and we're that John and what what to and seeing their we're been but commercial. that's expect perform own Home but definitely over as add I segments in Life have definitely Matt, end

and within grow, are The but overall, softening, Home continuing to you trends and to like big other stronger ESL still metering see is Industrial spaces the continuing on think, within, within where than grow. Life, depends. Commercial, it then strength broad those I And more than industrial softer performing

being then you So each if both And and big overall commercial picture, the level, life market. of will. next weaker stronger, those impacted varies it the home by the industrial underneath subsegments, by

a wins. Got it. ramping design in about X longer term, you be talked you're stuff, bit Series going all maybe and Matt, to strength the

for looks to that like. generation about what quickly design So and needs programs what the I'm idea the revenue legacy to an of contribute happen burn is really maybe wins get balance trying how to new current can and ramp versus and inventory products that the

So time wins? secured to as you've segments Series be Any just color there for the helpful. kind of the design X would different platform revenue across

sure. Yes,

X has already So The a ramp things. few Series started.

I think So that's important.

easily. and look the $XX growth If few opportunity the it's you funnel back step at over funnel of driver of that billion, the last years

of the been has Series growth look our it's win revenue design growth. contributor years, of last Series that biggest And to last -- win design at over over the our you few X the If couple that X performance the driver growth. years, has been

that's still recognize to happening. That important rank. said, days it's being So early already very it's that in

If just the if design you of more at that and of look wins, growth. many come years cycle, there's to the look the at at funnel, that beginning we're you many,

to already frame way. It's So I think important it it's started. that

these I two environment. we're and macro design macro synthesize we wins things have the And think we difficult the to picture, ramping seeing when do ramping different we're as better one of it's and immune to the not is soft saying, but those things that think into we seeing. that can we're we hard keep businesses

you year XX% two up if one, confidence I which of first other design the over most design year year, IoT first to this for very year relative us an at businesses there. this back that that was think you year-over-year are: look things win half, even I performance, and in give year, think last And the strong the even look performed out we've last half wins. versus incredible if

to able now. with to we're able that we It's that -- not gives only to we that, market gives current do So it we'll been that. reconcile to continue us environment just the do seeing us be have but right confidence tough do confidence that

Fargo Next from Mobley question Gary with comes Wells Securities.

Bear Ultimately, with understand much to I'm trend I revenue me to trend what expecting how question. as the below by trying set this long-term we're up is line.

decrease. your the, in about headwind long-term as days in amount so about the I And the million above revenue terms is same -- at of believe, $XX sequential translates about expected XX it's about your distribution I revenue look into target, which inventory,

in weak is Or the that question so third primarily does expected inventory? sequential to is, with have just in booking trends? And the rightsizing it my distribution generally quarter, also decrease do revenue

I'll start.

you think I add, Gary. Thanks, John. should

more quick inventory. as just It's So a well. a answer. market than It's

end just As we uncertainty we were saw and visibility getting so towards QX, bookings just there's guess, I of the really slow, low. with customers much, is

the also or alarming for days that important, there's add but that's other So thing DSI us to also the as market a well. for But than inventory, of they're either. those not component historical higher us I'd

are substantial few are years not ramps, We’re of and that. for years ramps. over just anything going quarters need be They ramps of significant to it's prepared quarter that better And the for us has taught us. if that we but into one last

higher So that definitely we want -- scare we you not while in drive that business. future we're the historical historical confidence anything higher it and design, than a have it given level is us add? trying to than ramping at it's doesn't up to John, by

one as just perhaps. point we to refer point. customer talking But quick of clarification Gary, It's bookings, about Yes, end demand. we're a

and to referring to we're end to we weak So out what far third so that's QX refer we in really customers. here bookings are referring when the quarter, to round

How permanent? much some to expenses on respect of -- variable? is the recent structural is cost in specifically much how of With Okay. levers the the side, And or OpEx. operating reduction reduction

John, you go first.

limited at is structural discretionary We and referring some are not we and What second quarter this But variable Yes. comprehended the spending. actions year. half to moment. did third temporary. Gary, for earlier Sure. it take is is Yes. that

We have frozen hiring.

but that, hopefully be get downturn of like see that items items heading nature. that And similar upswing an this other and pay, into base to we start through temporary those in next more their year, is we and would revert considered reducing back. are should as executives -- Our

saying be the them. inventory, nature these the strategic to other setting side. we that in to design. That's support ramps. by don't We on anything ourselves that we're diminishes wins Temporary why ramp, support and able having it's doing design we're whether do temporary ramping the is that keep want to need up that resources for everything We to

with Barclays. comes Next from Blayne question Curtis

to home Just always want understand just double -- work now been correcting like on through it's quarter to kind I substantial if the things. down and a being industrial, correction? in And on start of I Industrial had I fourth comment it of the inventory this longer position sitting Industrial this the and of Commercial? could life has curious X. as just kind you digits. was is a

would quarter. different last on yes, been we've and I not clear. been has but that's it seen for as it's We've quarter little have as Commercial. what industrial had said characterize better it's it a in quarters, commercial record Industrial consistently environment. I this has still wasn’t line. multiple quarter impacted this diminished and its have the have market we definitely and That even, impacted. impacted been mean record ramping it and things been from has and And have a but designs quarter, would way a should from because that been helping it home been

we're that going in March actually sorry, I new on is going been a see not phenomenon, QX. and think its I'm So what’s QX, continuing to long

wanted I to ask gross on Then the margin.

think, your than margins, had but top a was I industrial/commercial you higher June, were mix okay, guidance. line in worse actually, So

what but pricing guidance. to just you have I cost, of guess, think something I changed was I'm you that when you mentioned and June? understand, kind should timing the trying that of Just gave in curious the contemplated, I know

September, you downfall, And flat. huge then the revenue look at are but when margins

inventory Does for walk you any for June margin? you through. there of time take perspective Can the headwinds. and in gross talk flow happen And me is higher-priced to through any can some September what it about So kind that? further beyond

than about. we to that in second a in mix gross is Blayne. margins, that and activity. what that others, stable the expect quarter, against long-time line that's was and time, is in was result the certain and trend quarter. Sure, we gross there margins over modest see explanation and the product third in decline referring products But the message shipped of should here we have mix The -- expectations little for increase really quarter of the Yes, the was a of erosion lower comment sequential out of variation guidance commentary slightly terms higher specifically in a very much this some haven't with top to our talked price

ago now the it and in there and mean of things, models seems in were and pressure new some margin industry to supply when normal. chain this these I time was types Yes. that we like crisis getting a the we're increase commentary long is

playing is and way pricing the if to on that's anomaly. seeing supply conceptualize they're view supply normal we it least are that out pre back experiencing that's we what we're temporary, easiest anything, pressure Our chain at just was was that what saw the prices crisis, normal things now the and chain was to And now.

weeks. the functions a early was mentioned days in if the I cycle. about. new Series dynamic if there that Series no think ramp And there's and that is anything or is the it's X portfolio product still came look announcing I way part and out. substantial and going this out worth that's pointing X of FG-XX, But be step And X we is strength keep in to that other talking on. it. the this the product that a We're a strength going Series to at like few just of steady,

the industry while Just incredible industry both price pressure. in to is it's new market some to normal AIML a Bluetooth, sub-gigahertz part industry-leading security there has an solution all capability, you integrates and helping us it give capabilities, and is that -- effect navigate perspective, that that brings

it ourselves margin John, a that get The of one we felt to gross delivering is premium IoT emphasis see more that. the that is like this point comment. just to Blayne, again important was market to

consistent hasn't been that's and That hasn't throughout -- changed.

from Srinivas Pajjuri James. with comes Question Raymond

down of DSI, going are Or that's X guess, few normal? you I be quarters? -- the clarify, bit the the to that to to you the days expect X come just do new over a thinking to next John,

here. that come may about concerned up monitor a that bit. we'll Matt where I and time just said, that know Certainly, little may overly setting. sponsoring We're Srini, do it is go not as Yes. really not over in. It

the focus of state on Our the really end commentary on that's our more the of basis is the market. demand, and

Okay. And maybe Got are talk looks the it. then, Matt, about can units up actually the like you It sequentially. environment.

Is So obviously, commentary? see is to meaningfully. of weak. you we Because cyclical said more pricing a correction, demand in it tend a units come down quite

through So units I how I'm quarter ASPs? guidance, we or as your the over just of does guess, wondering, look quarter, in unit X? just what contemplate are about I the next, And thinking guess, terms a and the September correction you

Yes.

I the think. so to way pricing We seeing that's is or there. driver. anything dynamics as environment, easiest -- not primary in think are we're pretty about the now new it demand-challenged expected, much a mentioned anomalous and just But the we're we

that frame story of story a demand, is ultimately of that helps navigating. a really If which units it's it. So we're really end

that's And quarters me. with the for Wi-Fi thinking just particular helpful. in you're any curious market there? you've last if been few a line. X product there's progress now that your update Yes, on for How Matt, the about obviously, solutions. then And maybe X

sure. Yes,

a mention big you we're I and progress. the guess the but Quick So go if is strong, good remarks, we that and back picture, happy answer didn't in with

That's years loved space our made said, fast increase live for fastest-growing there, focus as enough, in. enough. But the world progress our Let to ago we on a it's we never focus clear, Bluetooth. the big company. ultimately, We've me we've be

continue. expect We to that

Wi-Fi of being growth as have to the design stronger now then well. And added we of And We benefit one our the that. momentum continue Wi-Fi piece. areas the have we

seeing about progress strong with we we're we're market are in, performance, that the and we're environment Even there. that. Wi-Fi see the wanted seeing happy still we So to that

comes Kwan Jeremy with Stifel. question next Our from

Yes.

hear can Sorry, you me?

Yes.

questions. couple I Yes, Great guess a of

the that expected I cyber when look if you this -- is of couple initiative? when more next solution. or what months? that guess, impact see see When is at this we to impact of kind one, labeling, from do you to of impact the Or for over something on customers kind of clamoring expect see an you do of here line can First security new the really type top

play answer I'd is usually be it while. that's out. love would realistic way say term, don't a these Sure. to But awesome. be the that Quick will I think short things

really anyone administration end see standardization not exactly labeling what like securing program which who's terms, familiar devices, to companies for markets, creates, on needed. want or consumers better and is cybersecurity For Biden these what's for and you'd some around

in strongest to betting, I the is industry as a help. to time take like much it us And tailwind, this customers. it quarters I'd already see now known the and this game. the won't out been directly, the be portfolio think to answer you're And this It our to of be. us. going ramp impact capability This positioning, So question the we've way for to serves here. have it, short focusing a and starts on win only there years We our business deploy frame term you're talking security for will easy well. And for long long be and this as by gives customers. And a of for will good industry, to this as we're us but it because time.

is this Jeremy, John. Yes,

the Just of once or and advancing example, again an art IoT being the space. for of state a area silicon leader is thought -- as known it's in a labs good important

offering we some scratching and features their think way about think Years and same as of would capabilities were heads. ago, it security. people are I these the

portfolio. enable see the capability going of the just down designs same and to things in are going how advantage and the some is our devices of where think taking a devices, multiple these our to that win is later to applications already we capabilities people because to introducing Now We're edge. -- into say, of that enable these of that on road, few years new that efficiency concept processors entire it. you're AML. policies Look, is administration updating built inherent capability the the same today, help their

same road. way, So further just the down

question helpful. the any third out like Great. strong It's you How geographic second quarter? there Europe see It do expectations. the quick Maybe of sounded Is can in call in very was quite quarter this playing here. out? a areas just that weakness on or strength you relative

Jeremy. Sure,

in the note, about remarks, we I think to prepared and talk is the thing this did China. not first

of again, in not have Our and been revenue, we the the of recovery quarter weak signs economy the second impacted year. level full XX% by has Chinese first [indiscernible] for seen half China there. the And

at widespread it's So demand, is that this a not overall -- said, isolated a the There's point. weakness weakness to and we're global seeing in particular really

[Operator Instructions].

Our with Doyle from comes question Needham. next Nick

Gill. Nick wanted to I the mix just declining how drop? on is of when margin Raj revenue strength? seeing Doyle the ask guide indication focus keep directly or ASP a and we're able September such you're again. just declining margin from sequential kind that more to of And for an

Sure, it's Yes. John. Matt,

variable cost ban a but have amount full pretty internal As a operate model. of it's company, costs, a compared We manufacturing fixed chip. to a on fabless of modest we really strictly do limited

that explanation really point is say the variable what at based on best our influenced time. That's by not gross question. the main that's in really to So your to that we're margin seeing revenue level

it. Got Okay.

related cycle? this more be you could And are next on the commentary, of can bookings the markets cancellation a maybe do to positive And of slowdown? the order that on up then just or which seeing intra-quarter to over-ordering terms new hesitant you're customers applications expand you also, in policy? For that think

to it is add well. Yes. be start, and broad. pretty would The for as right bookings I'll pattern John now good

X% well of less trying customers ability channel see their terms broad confidence any chunks with our is I I clear customer biggest. and have demand customers for is And make strong and long What a You major pattern their revenue. our their is ordering broad inventory. than you is have big in not don't confidence navigate the as can don't a difficult seeing geos. It's visibility, their current their we're distill to mean think work to short pattern X remember; up across across really is out certainty, what to very a or shaken, brought but X in out the we across that of they're or time. term there. segments tease to clear and this lead through

short. very I mean,

Just all pre-supply way in tons has reverted -- it. current pre-pandemic to back backlog of the chain work position think way it to about supply where pre-environment, backlog now that our the navigate easy is to

even Now lead we’ve gone times that, ordering lack well. visibility to the and shorter with all way of of certainty back as because their but

you’re that’s know help what we’re seeing. for, doesn’t I it So answer what looking but

see don’t part is really affecting question, the things second – I overall. And Yes. of policy Mig, your not

short trying Our to the horizon as the visibility their term. longer approach try to and experience over we is own much confidence But to are position their and can a gain levels managing inventory home. customers

over for concludes This the like turn would call any our to session. back remarks. to question-and-answer Giovanni I Pacelli closing

you, for concludes and you Thank Sarah, all call. this today's thank joining This morning.

conference The for Thank concluded. attending now today's you has presentation.

You disconnect. may now