Sierra Wireless (SWIR) 12 May 222022 Q1 Earnings call transcript

Thank you all for standing by, and welcome to the Sierra Wireless Q1 2022 Earnings Conference Call. [Operator Instructions] Please also note that today's call is being recorded. I'd now turn the call over to your host, David Climie. Sir, you may now begin.

Thanks, and good afternoon, everybody. today's and joining for you conference webcast. call Thank

Phil and CEO; the call Sam President are today CFO. On and Brace, Cochrane, our

reminder, being is on the today's will a call. available following our webcast be website, As and presentation

strategy, meaning we statements facts cautionary regarding objectives, Company's outlook statements and goals, certain and constitute forward-looking reference not include are the contains note information presentation forward-looking get that commentary started, of Today's based and Before These regarding will our statements for the our securities I laws. statements. on expectations within historical the business.

statements on are Our of forward-looking incorrect. prove based material could assumptions, which significantly number be to a

to are investors could time, differ expressed are longer and based statements and significantly management's our subject we to attention forward-looking substantial those by that current your material that I particularly our caution statements, results uncertainties known risks and expectations, or filings. to draw be discussion from to with With EDGAR and his can relate forward-looking presentation quarterly risk form implied our Phil information update. statements. periods Additionally, forward-looking analysis, unknown annual cause of on that and I'll events actual or other discussion that, also conjunction turn earnings management's for found quarterly our a as regulatory well over now on should to SEDAR be of as viewed factors and call in in those longer release. This our which the

million generated our first in for In profitable the $X.X EBITDA, quarter earnings $XX.X first QX joining year-over-year a strong more adjusted start sequentially, with Thanks, continuing XX% million of of total the year us from and most the had in years. quarter. thanks, We our three quarter, guidance well and to operations David, on million the in than ahead and in grew XX% everyone, $XXX.X call adjusted quarter. revenue for the today. revenue we

the XG especially were demand, in manufacturing and starting and offerings, ramp. routers Our execution in and strong operations, growth result and in improved customer modules of product revenue QX profit to solid expanded our

series we low-latency demanding In routers higher in EMXX, asset enterprise We've business, In truly bands RV and year-over-year. availability use for low-power volume. sequentially, our including markets, of solid global for coverage announced modules case. the optimized module, QX, networking to enables connectivity of just next-gen ramp. XG SKU. And the high-speed, wide-area a continued design XG single which do our edge first seeing and avoid enterprise, pandemic accelerated are network. XX% are the important a up more first business-critical from includes of In IoT had to are QX, customers monitor including quarter, Industry industrial, preventative the We X.X. product field markets, In year. in we COVID-XX in last and compared companies our our the equipment to in costly are responder data performance in revenue, has modules wanting XG The our RF industrial Difficulty] with meters, improved manage and in And getting XG, areas maintenance. utilities energy momentum downtime, XG collecting as the key modules, and lighting shipments routers, smart to first both, devices are management. which our increase shipping including saw strong was their our continuing into XR public And responders we AirLink sales series and key rugged traction [Technical

in position services build and in responder and new our we closed in be the these product market including global our more fastest and history leadership on XR first we We sector wins. continue of and a public with county utilities leading quarter, major manufacturers, the on number line get the with first emergency state our deals routers new network ramping carrier to the are XR industrial In UK. Series expecting to the networks, as certified

We our Orange AirLink In partnered are select reach. and business, routers are a strengthen and our their expanding reliability. we for especially Wholesale of that to coverage ruggedness responders QX and number connectivity with in ambulance global European growing fire, our police, proud network access

digitizing supplier strengths. machine increase analytics. beginning collect that and with We accelerate market. Many two-way connectivity. a XG partnership and growth so remote connectivity rollout also exciting new, with decade in that for can T-Mobile APAC IoT these western can that Australia in for business their We're to IoT expanded the are our their play starting U.S. wireless trusted LPWA and of Zealand. XG high-speed I especially AI. the equipment, from in applications and they incredibly is right believe will learning control that them customers and a seamless provide these continues we're of data devices, multiyear to are All data into grow, both industry. assets customers endpoints Sierra's important enterprise industrial our And Leading just New looking run introduce a coverage that trends and

turn update manufacturing some provide on then our the the I'll like comments on the brief over the Sam Omnilink and to quarter, an on to to capacity I provide details Before I'd make business. first more sale call And of the [currency].

us a for help our of products, This opportunities. and keeping build Regarding gateways. continue QX eye ramp manufacturing, XR in while will With especially production place, series cost we to sharp Mexico and on and routers QX up reduction capacity RV we in flexibility, now in as routers. more multi-factory production new cost ship in and

to materials. procurement tight using balance the do partners continues secure our great chain, sheet and Regarding strong raw we're supply team job suppliers, to with to our continue a our and

and quarters, chain XXXX, to we to orders out tight into remain throughout customers for for from our expect the are semiconductor XXXX and the continuing components. particularly secure supply We

closed million Sentinel XXth, the monitoring offender $XX.X Omnilink the our for we we of and XXXX. announced cash, sale Regarding times business. of signed to X.X On Advantage in April equivalent that

we're embedded providing with them connectivity customer, We growing Difficulty] [Technical and continue value going as Sentinel and forward. an to our important modules

business. monitoring our Regarding security home

decided the this of this strategic products inventory We to year. and for absolute have not options which quarter additional impairment reviewed business, resulted first has develop charge in an and our in

COVID-XX and approach are comments. to to for work year a With a the and portfolio the global Sierra investment summary, highest and would customers start dollars employees, our best QX, that, be challenges through expect shareholders. our once like collectively for efforts we good to turn of on environment, supply chain for robust focusing tight Wireless. his I to to We our in We're XXXX a return Sam I'll off the we over and call pandemic. In very-disciplined business as the again for value taking for thank our our customers suppliers

Note Thank results everyone. on GAAP you, Good and our we afternoon, financial a U.S. Phil. report dollars that in basis. U.S.

operating the year. of was understanding GAAP million, We results to an also revenue first between compared period and present $XXX.X million increase is the available results Total to our performance. a reconciliation full provide of $XXX.X quarter website. A XX.X% non-GAAP in on non-GAAP better last our our same

$XXX.X at segments. Solutions Solutions in million, two year-over-year. was revenue Looking year-over-year. XX.X% of Enterprise QX, million reporting revenue our XX.X% up IoT $XX.X an increase was

decreases of our home Difficulty] of business. to Revenue connectivity, gross in last services performance the in was which previously of incident. down [Technical revenue freight disclosed legacy the revenue to working million. million was was software XX.X% quarter to to down X.X% Increase core and up security Difficulty] shutdowns. year-over-year. to were home in products the XG/XG first growth result by and The QX XX.X% European investments impacted partially our compared the prior the higher our revenue and last basis, the expenses offset software including quarter gross meet business for GAAP first was sequentially. year-over-year margin in capital by in improved obsolete of year in Connectivity, to was Improved in million, gross our expedited fourth and in XX.X% connectivity ransomware business QX grew the $XX.X year. $X.X customers. of in to by was included first primarily QX XXXX and to first first also our smart components to negatively [Technical sequentially brought by security services XX% compared quarter year. margin connectivity Non-GAAP in from on million XX.X% parts sourcing Non-GAAP product $XXX.X the $XX.X due quarter last demand the quarter Gross and related compared first capacity we our our non-GAAP the margin primarily during inventory manufacturing strong $XX.X Improved quarter to compared quarter last profit in in operating XX.X% year, year. COVID million, the area,

adjusted $X.X of EBITDA earnings in million continued We in and to a was QX, adjusted of areas all X.X% CapEx $X.X adjusted million revenue to loss compared and $XX.X continue million manage to across of and our of Adjusted $X.X adjusted first In the or XXXX year business. QX. negative $X.X the from EBITDA OpEx QX of EBITDA in tightly $X.X last was million in operations in million earnings will quarter QX. million in compared

both, So, financial year-over-year see to and a sequential good improvement in performance.

million. in in balance the in was million Capital used deliver allowed the to QX was QX cash. inventory with spending Cash investments results our investment of operations has both, primarily $XX.X Moving in We quarter flow million to ended prepaid provide in inventory, quarter $XX.X strong including sheet. strong and advances. the QX, $X.X first to due This us guidance. XXXX of first

business to the Regarding uncertain. on remain second guidance quarter, the of COVID-XX our continues for impact global

impacts experience financial we reasonably results beyond overall business, severity remainder adverse of of and be on on XXXX continue the and cannot related and at cash flows business, time. the to this estimated duration to COVID-XX and effects operating While our our for condition, evaluate the

our products strong. global demand remains mentioned, Phil As for

are year now we open million range of lines. the midpoint guiding $XXX will Given the I in With a please $XXX that, this revenue to of with over second million, the questions. of Operator, environment, $XXX.X million. quarter to call a turn the

from Here's the Instructions] It's first of line [Operator Craig-Hallum. question. of Anthony our Stoss

Hi, you. guys. Congrats. Thank

I And after kind quarter. for Just sequentially you're be the But, think quarter also, awesome your love next the on it that. year to on gross throughout follow-up your year. of Sam, book execution. guiding up based other Then, is then, backlog hear Phil for that revs? for one order had thoughts each or fair I know I'd of remainder the will the to or margins

demand right this of -- Tony, is we're take strong. for now, I'll gross margin kind you our question. the Yes. Phil. I comment incredibly on of kind the Sam, the Hi demand is question. Sure. can products mean Look,

and now, Our getting the backlog of supply things optimizing the really right just it's parts, the excess can we chain about is And ship. in what far getting kind in of place.

at a point, half guiding right strong. second the execution for now, we're it at we're year to the -- us but the do for it's of are quarter think time, So, just remains just really for to products demand not it this about say I a going fair quarter-on-quarter. it's and And

And the mentioned improvements sequential say in gross Phil. margin. I Thanks, yes, margin, quarter, I think on like that we that gross providing margin -- expect guidance Yes. we're small on I did gross not but last

I non-GAAP think here year. that it the to we've the expect continue a of I basis, and seen rest on for

Sam, might the then, it for OpEx what following OpEx the business a sale the just And just Okay. up, do flattish, your Is June thoughts where just I'm for expect unit? kind curious little down on after of quarter? of be. on you

the Yes, question. I appreciate

OpEx year-over-year, down It's down First, I the management in pretty sequentially. mean tightly.

up, way. going we'll not forward, that to it it put tightly. continue Going I'll it's manage And

So, I that answers think your question.

shortages, question And more supply? place caught going side next likely just the the orders Phil, to customers it. or router the module get Are of with even last on just to you, if year your is willing one for guarantee picture. side? Also, demand component you're to Got business it additional then for

Yes.

this So, ever are into Yes, us are seeing your which into gives parts Customers demand orders the at to -- point, so placing question. had environment better before. than visibility probably two demand. we XXXX we've the

more just just will In and to more enterprise constrained. because affected components, to the tend components the terms little by number highly be more to of semiconductor have tend component be the them, are say, of of in But -- I lines that product bag. a given mixed use components that some shortages, we it's we a tend

modules So, the chain business is the affected supply this more than enterprise I’d point. by shortages at say,

line the from Walkley Canaccord is question Mike next of The Genuity. of

within how Difficulty] competitors on the that, margins the [Technical little maybe I’m guess, maybe but upside struggle their congratulations provide outperform and to color components, components. as so shipments your you continue there? color. to on some your team, to procure to just get might to team it gross Phil, supply guidance. to to what to supply trying environment Credit and I even deliver are a near-term you to expedite meet to continuing able securing many out you more And you're of can in mean

Yes. Thanks, Mike.

China. the up. I points get of think, team been the we time to QX now of we the of with up the resilient good were the the in did quarter third took kind as at ourselves remind I using the put orders was with that's achieved running you to may went really And our our offense. inventory of you, of The place in work to some we We've a -- with job the of to be continued one we laid that. year, went to that the think, up of continued factories challenges to and the things, were up. us quarters and previously. We've challenges -- real X-point and a to to to work COVID-XX our the and impacts, look seen. that when And our [Technical -- some remember, to we of look, also in We sheet our last frankly more the out forward, was, foundation be did -- back have respect multiple remains balance us key closely in And done in enabled investments a capital proud continuing the got little one some than actions play Difficulty] of let of suppliers we managing we working I'm action in plan particularly kind it. kind by prior we we just had of place depths them.

manufacturing sheet, of decisions made in balance this play kind place So, having prior strategy execution and our of offensive multisided point. we combination it's a with to some at solid a

of the once Solutions. of haven't playing can with seems Just other customers? are again gross you're like dynamics. in Because maybe a time. to follow-up because your and the going Is you cost maybe like discuss private that that mix, The to I to is XX% your area. you and environment XX% that sustainable competitive on it changes long a telecom And just question, outperforming pass some or guys in number IoT a forward? margin, that in just peers, level this Was that offense, on seen able

When I mean, a would I helps, that's a gross one And specifics guess, of in We're more lot is our some at margin Sam, uptake the Well, jump the Scale there's end, -- seen higher also factors good if I there's modules, answer. say look performance, multifaceted is of there. mix. which you can kind we now. of We've a right? a products helpful. higher-performing producing certainly some

them amortize to what more have. amortize we're to over able So, able of kind costs volume. We're we

we're we doing getting an environment, behave to we competitive with work pass pricing price same a really that hard They're been this impact. in I things sure that. will themselves, in Customers situation the have products are we're environment, customers, think, and we we business an in need kind giving well. and that them our in And environment, the my closely of bit right inflationary are Our And to for but to make just the I dealing remember think understand with customers. we're the have and also little message working so. with to as our Keeping got team, constrained how that working we makes our increases, And bit, routers some that of so to been a right? mind, I'm along. of a respect

me, question pass helpful. last And and That's I'll line. the for

the is I of on business, think metric the Just disposition And what sale? timing you I Omnilink threw the for a that missed. out

what And Just of have contribution? the to division's comes as what might that margins out? annual it it gross is impact kind

that? to take want do you Sam,

Yes, sure.

profitability, there much have an closed a customer, in impact And our as in a about The and going is to get no QX numbers. modules it XXXX, right? I So, that -- not I in think Sentinel so on very important point. So, it's have won't to forward. this going the part mean, about our valued therefore, is impact exciting connectivity April, profitability to we in which both be

be in there'll course, adjustment an of Now, CSMS our revenue.

I million the think $XX was revenue. we disclosed or in so XXXX

So, impact there line top will profitability. be a no adjustment but on

in there question sorry, And there? of was kind another

Yes. for metrics. That those looking was it. just I was

appreciate... So, I

really parties. we're it with close at revenue. both Good for Yes, to Thanks. win-win Okay. price, X happy times

of BMO the Your line next from question Thanos Moschopoulos is Capital. of

in strong the the on execution quarter. Congrats

Omnilink the Just on following up disposition.

of that terms that the think gross $XX of and comes sort that back we revenue So, of then of million, revenue? connectivity some as being should in

Yes.

the And CSMS revenue module those You adjustment yes, with in Sentinel will just connectivity XXXX. the from $XX won't piece whole portion because think the Sentinel we'll get in an the That to we'll on CSMS with revenue well, module based total be obviously, back to of be right? was a customer that levels. going there XXXX, revenue, recurring they're be piece, our then some was in revenue our then, connectivity a buyer. but revenue mean, that I of at the as agreement million. And get our

Right.

I Phil, I say Hey you think ramping. Okay. that heard is Mexico still

Mexico...? in to continues ramp, what incremental might that as subsequent benefits the quarters that So, be from getting we'll see

newer XR strong we're kind going we've into manage of which products, XG/XG Well, transition look, ramp QX. newer routers. I products certain the is the to we've the reflected really, that our or from That's there assumed guidance. Series; mean, our a thing in two got trying of a I think level of of are product biggest

for as One, our movement it's that and and for product ramp to there us two can a as customers. up we trying reasons. are better We Xfast accelerate the basically for

Second very tend we constrained. better the be third, availability. and products, -- had MG of highly other some older are up, And our to series,

the some is I of our our guidance. And in kind some really the towards underneath newer Mexico included -- of of migrating it's ramp-up think in around covers products. So, there, kind of our

Great. From that revenue a all the perspective, uptick. bad working $X capital at which sequentially, given up million all, inventory went isn't

think hard we increase, a of kind Do how So, just kind forward? think parts? of going the modest should of about or it is given call, you to that

Yes.

in Let there. me jump

inventory, at of sense to of look work So, our it to when how some them because of get we also prepaid have with prepaid kind of at kind terms you is you our a look contract in manufacturers. of

So, we an to investment. working the base, revenue quarter, basically higher invest base investment have in in And capital we higher that in did is, that growing that and that right? again, made revenue

and working expect capital to revenue to those been mean, forward, I Going made, expect happy at investments and right? need higher with it's we we make that don't we're to our level, that. in levels, normalize

And then, Okay. ramp there. the on finally, XG and

I about, margin grand and not as takes products in scheme impact that side? puts on typically, of the there's material or temporary the a something is think ramp, a to new things, impact, I on think mean, margins.

Yes. I'll give you comment. take -- can you -- a high don’t you level why no,

talked a volume recovery of scale. that sequential it's mix, be earlier I increases margins from sure. XXXX, gross talked about the honest. increases, forward reasons of yes, going the COVID-related into cake expect about, It's sort to we not things, shutdowns, what all small that mean, those all price we've for baked more in Yes, material, I really

term. expect the product new we So, gross a small baked near of sequential releases. impact increases from cake, small the to into margin have in that's do sort And in

of Josh question Riley. the of line is from Next Nichols B.

challenging. of to execution in competitors quarter, a pretty to Great found type here the where see second be of have it lot the

fairly mean, to strength bit mostly, you markets? I Solutions end growth a from there Just regarding ask industries such your I and pockets driving are provide or could more wanted little evenly the of across IoT particular is strength that the Are markets it business. if spread detail, any

strong there. industrial in in good uptake very It's our some a mean, I particularly control, mean, XG meters, lighting, This seeing products question. asset products. smart I very is our Phil. demand strong of we're

our of safety pickup there good new really also in are getting public XG Some networking and modules as well. environments industrial,

really, kind energy, products are IoT say, there. Solutions strong would really new very perspective, those safety, and smart gas, demand meters, reviews. of markets, our So, from getting in oil from an very it's public I great industrial, strong And

the to And likely about That's last Company thinking off are out and invested quarters, of paid pretty the well in year. then, for great. the The has heavily inventory the things how Is remainder the just over clearly that's several levels? is play kind it it unwinds source of what's Company. to previous around likely in significant working improves, But forward? a capital the cash to investment maintain these going for that become flow likely of or expectation as balance the

closely. you then in first comment. think, Sam some kind expenses levels we mentioned, I do our working quarter. the kind to inventory expect our made peak -- we I We the fact investment And in I'll Sam, make think capital. to here comments. contain of going of can the And Look, we are commented Sam

So, turning it's more? comment we do to Sam, our you cash. this expectation that into any start want

I capital to right? we We working base. we be our free at obviously in on capital QX, normalize the chose higher Yes. working have levels. expect But And a basis, invest revenue back, do up a support higher listen, in of Omnilink, cash those to cash mean, looking will Right? divestiture that to lot, which helps flow right?

when cash the it run out. therefore, half of sure, year. into you you free then models, second the So to positive ahead, looking you're And QX, at be going flatten looking for in that flow through to the can expect

helps. So, hope I that directionally, just

second the up expected relatively bit? be you're some second based the what on the comparable of stuff like flows That's order first regarding sort to Is kind here half Then quite down just Is or mean or for seasonality been and good has half have trends thinking or that you're revenue strong the backlog to You any 'XX? seeing trajectory, on going there getting? half. the color. I about half first a into the

seasonal difficult customers, not rest what there our get It's to need from into it of put even they I so the supply, even is our supply able what to So, right? to stuff the from what just us, because so get stuff respect noise they're much with to a if in to say is and the so it's environment, system "normal" the is able they're is demand think market. environment. just

think, what excess kind our comprehended I able guidance we of see our is remains what's what in and to backlog far ship. of in we're

secure We orders XXXX, to and we probably what into are and That's starting now. XXXX expect we see to remain into right supply constrained throughout certainly well. as XXXX

from Here's of Treiber question. your It's RBC of next line the Paul Capital.

Congratulations on in couple COVID comments made the as -- of in just on well. quarter I on you to hone China. wanted a

mentioned You how exactly potential challenges COVID and elaborate the on Can you you China. there? mitigated in job impact good managing that

managing partners do I Yes. there, affected gave able our mean, certain us along we're job so manufacturing results. pretty have times. financial situations, they and Suzhou with both to mean, I the when in And impact and guidance, the we in a been Shanghai those by COVID didn't past good

So, job well. we a our some around. some of helping partner kind move frankly, stuff did able were that And as of pretty of manage to good

about that's can I all So, say.

all other China? I to like within moving Vietnam? You it facilities, that But Mexico weren't execution is or, your think,

so days back and modules, China we in built China is and kind between and what's flex forth these of Vietnam. of Most

forecast. that just to prepared makes specific difficult chain that comment? remarks elsewhere? your fairly, in the the year, Is general of it the supply you concerns a or Okay. there Thank a like, the in may is COVID you. uncertainty boilerplate that picked you around Or anything there have in And up remainder comment then, for -- was

unique… nothing There's

ahead. go Yes,

way, in the like to chain shutdown us. The but to is ongoing. in And There Yes. I right? cause to things soon? in to There's It is to indication pandemic think risk continues language that in is better, the don't are that a when hope. impacted. China. the unforeseen China mean nothing a but supply it's away go we So, happen, unique I boilerplate shutdowns yet. lot is that's getting that it we first And going there's quarter time Yes, good remove were guiding,

me. And last one for

terms these XXXX. you other that mentioned if out -- put are from like going out have? get agreements? in the or you in that orders normally to orders able perspective additional then, so those to into your terms of You Can lead either And with customers, that times far, you contractually commitments are

look, probably Yes. think the I I lead to goes mean, ever. is time. time It fair historian, say a long that that our from be this it could it's not I mean, but certainly that longest the longest long, seen customers. we've back,

realization, well visibility just of unique components are the their recognize move in that some world yes, lead kind give And it or and working orders to that we particularly some is, for have cases, I think difficult to very And new long some us the side. from new other are as give non-cancellation through time they around. that of need provisions customers that in of those that suppliers orders, more

through the the seen. some give as or some the So, the And special good working downside. on best probably of protection visibility some we is yes, in think answer that short is, I us as terms are we've some cases, ever

Next question is Capital. from of Scott ROTH the line Searle of

do can profitable? There's that standpoint, gross gross front on margins job need Hey. in from scale could bit where quarter, that of area phenomenal Absolutely jump just growth. to? you the at pricing maybe services on be a of equation. doing been the lot connectivity margin be terms of there. been a one guys. to Phil, fixing how in of little you we get there That's if I you're segment from hasn't what a a do about And on standpoint. wondering level some talk to thinking what should And to that a where side about need business the was for of you that

so in try there, let me of A my Yes. lot best. questions

call the So want a you you that. are focused portion we're of got number are on that, -- other to enhanced is sub We've connectivity APAC underneath in strength, I've our certainly if major, The I businesses of This in pockets of if look where big and think kind business. some connectivity. these I'll about do connectivity I constituents portion comment talked grow. Both There business. and of -- core just care kind what smart that to of of is the growth. continuing

growing. are businesses those So,

some businesses. We businesses, noncore legacy also businesses them I'll have other that call

the I from saw to business to prisoner that that mean, some business. we work them, security out And the to new there, our that kind public view, frankly, of for about look, margins think be do our that probably in got of think point think I home get talked we're are is We and XXs divested some is harvest. should in compares business. You -- of I've one goal to more kind there I of Gross there. get starting the there. I tracking goal

maybe equation. And Perfect. of side enterprise the over Okay. switching gears the to

Just clarify couple a things. want of to

basis You had and obsolete points. XXX costing inventory written off, they're

think I the it's normalization still been. about when So that, where of below it's

going XG availability some sounds on bounce the Do are with on still I that component a little we there other mix to to clarify, So want issues gross it margins back issues like products, solutions. Or like front. the there's expect just some new there bit?

take that one. jump and Let me Yes. in let

expedited as were related security also So was there GAAP ramped to Mexico down Vietnam in for inventory was freight numbers saw getting COVID. in few obsolete nature, with onetime some impairments sort which shut in of up the There we things. there. decision sort around home the freight, an you That's also a there's of that. the the in Correct, harvesting business,

XG the of product rushing mix, as front. well some product, new that happening was a nothing but new there. impact is with on there material there And a introduction bit small So, little the like

So just items, that onetime there forward of and improves, pace, again, move see in those as improvements mix gross we sort the the we'll margins.

Got the the you. to And I models are attach higher point Very rate on to with that, there. could helpful. to follow business, starting Services you ability if cradle a or enterprise go component for like maybe up Phil? see along

of with say I going area think focused of products that, think are early focus It's on I rate it's for Scott. part that much rest a focused I don't an a Yes. That's on of key an key company. kind driving we And But area clearly as forward. to attach up. think us, assured, we as our

today, in where Okay. But, mean we category, look And like the out. quarter you it ask. world the know, X, X to maybe put as I'll -- at you first you unfair quarters as be last results the expect are I to one, I'd we

absolutely as we're my a hands environment side. growth the So, get I'm supply side the job about we level 'XX are to then of on normalized When second job around if an the trying still a normalized it the about phenomenal modules, thinking operations, maybe services again. constrained, I think rates And that in enterprise for front. and what quarter call great it's Thanks.

continue new I at are than on going think traction. I super on us products. there. And comment we've in doubt this to it's we our forward -- we what's XXXX build fair point have books to And for loving demand. customers continue to other The make to continue got order strong in

just at going we're that, to with one delivering to do time a on focus growth. profitable continue and quarter So

remarks. the final over now to call for Phil participants. you, back Thank I'll turn

thank Great. a continuing the want a you. customers, like come We to us for I to helping thank working start today. look for momentum the XXXX. situation. through I'd been to the just everybody support. suppliers, year. our again employees Thank call on forward difficult the strong into once It's appreciate joining to I

for This concludes today's conference Thank call. joining. all you

You disconnect. may now