Impinj (PI) 24 Jul 242024 Q2 Earnings call transcript

Welcome to the Impinj Second Quarter 2024 Financial Results Conference Call and Webcast. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Strategic Finance. Please go ahead.

Rocco. you, Thank thank Impinj's and for us joining Good Quarter you XXXX discuss Second results. to afternoon, all On today's and and call, provide Chris second with Diorio, Impinj's Co-Founder of review outlook. overview Impinj's will our our a Baker, detailed a financial and of market quarter Cary opportunity results performance; quarter CFO, follow third brief CEO, will

Q&A. questions. will join CRO, will We Dossett, Jeff then open the Impinj's for call the for us

Relations website. can management's Investor on remarks the trended plus data find financial You prepared company's

reports forward-looking or with obligation alter except except cash to the balance most All and all revenue, state are of metrics expressly financial earnings actual We in are reconciliation performance otherwise, metrics, on subject forward-looking differ statements in or and to today. non-GAAP we results to required statements we Securities any such we update and do disclaim explicitly risks non-GAAP. our We will we financial these release quarterly future our and Whereas to because not comparable statements XXXX. could making the Private except law. On today's any flow Please our such of financial make believe basis reasonable Litigation our metrics. as have materially are cash a for for flow refer uncertainties. about call by this sheet annual call, of Reform and uncertainties as file for risks GAAP. where statements undertake We expectations and metrics, are free based that the or the Any for describe statements, Act under outlook SEC. these a forward-looking GAAP

XX Annual Genuity Technology Conference Note ISI IT our the Needham Hardware Communications results Conference Virtual will Summit Robotics Annual and Cleantech August XX, Tech, XXth in Chicago, one-on-one and Jefferies on on the Growth Before in XXXX XXth we and Growth the Boston, in that with on the XX on August Conference Semiconductor, and IT Goldman XX there. turning forward in on of Industrial Piper to the [indiscernible]. September Sandler outlook, participate August Canaccord Conference many Semiconductor will Conference Frontiers turn September and I the the in now Hardware connecting over call XX XX August look Evercore We Technology Imunocopia and Chris. to Networking you on Sachs in to Chicago, Nashville

Andy, for joining you, the you Thank thank all call. and

topped second well of were of and million, including footwear and several growth applications early including and strong, Our quarter results drove $XX outperformance, million. $XX that million flow platform. a guidance. trends records. setting growth, EBITDA general strength, above Revenue both continued specialty $XXX long signs topped apparel new Multiple in our for demand tail cash our topped Free products adjusted strong retail merchandise, and rebuying, steady secular

strength. same drive XXXX record, quarter million doubling. IC product trends as the We revenue exceeded quarterly quarter MXXX product than with new added to unit solid revenue third Anton to The expectations payment set expect a revenue growth. Starting volumes more licensing $XX these silicon, shipments including second our

expect we [indiscernible] to quarter, again third sequential product revenue growth. to Looking deliver IC

ramping, albeit qualification. market base, MXXX inlays MXXX expect from continue as also pass modest We sharply growing to but a

our capacity meet post during operations COVID Finally, paying downturn rising the today dividends well processing in demand. are our investments with the to positioned team

ICs. reader Turning to

broad printers market readers. and e demand Family for our fixed handhelds, expectations, volumes quarter Second exceeded by driven

in prior modestly e-family to IC strong reader we see down third overall the as we our by albeit generation wind continued shipment IC. quarter, masked Looking revenue volumes, lower

Turning to solutions.

ICs demand visionary as mode revenue. We continue modest retailers rollout enabled our delivering to of ongoing prevention as growing protected for endpoint expect self-checkout well the gateway European loss solution and our driving

we And footprint, ICs. second general by demand a fixed IC American increase at supply to product retailer and volumes label merchandise large ICs reader continue driven American rebuys. to consumption e-family end growing, large logistics their driving chain and the reader both user expect expect for tagging North North and endpoint We and our

in continue chain North usage expansion on piggyback tagging the specialty efforts merchandise, In expanding, benefiting solutions American growing readability see are driving increasing in see dividends enterprise see our expectations item-level retailer. of MXXX. the volumes. Touching the demanding food our And really market In work large we we now apparel, paying on opportunities, retailers silicon including where pilots together, supply we general large. pioneering see Taken we volumes higher-performing as growth applications. in-store

a trip to the consumer to tagging a comic in-depth which opportunity magazines match demand. consortium in Japan, books, Japanese For see of better inventory X are and recent books example, had to store I to during when publishers

Gahan, Richardson you. team. we On and President Executive Senior Christina. In growth second and President to closing, steady the CTO HR. Balam Products strong front, heartful very Vice promoted a Impinj into we for Gahan Oberto we congratulations, Christina our see product A executive revenue And a organizational added Alberto Vice delivered We looking veteran Platforms. Casamento, to and quarter third. to our and promoted XX-year thank the as of

layering opportunities our solutions and and driving logistics will in specialty the retail, endpoint believe applications efforts On continue Further top. share we continued and IC are on with see we secular and supply out, gains. food volumes front, growth chain

connect to remain everyday continue I vision in our world, in ahead. bold and we confident driving every our the by energized our market opportunities item As position

to Powerbolt to and call like financial third your the effort outlook, member Before Impinj quarter I for of turn I'd our for thank review every the team again driving Cary vision. over constant

to incredible my by Cary? honored work with feel I good you. fortune always, As

afternoon, and Thank you, good everyone. Chris,

up $XX.X revenue quarter up $XXX.X second from year-over-year from million in $XX million, in first and million XX% XX% quarter sequentially quarter XXXX. was XXXX, Second

from XXXX, million and XXXX. Second up from quarter in million, million up endpoint $XX.X second quarter $XX.X revenue IC was XX% sequentially XX% first in year-over-year $XX.X quarter

expectations $XX for the the year-over-year. our revenue reasons grew exceeded second XX% XX% and revenue licensing cited. million Excluding Chris revenue, product already quarter sequentially Product

sequentially. quarter to third product expect we forward, Looking endpoint increase revenue IC

million, XXXX. below channel was first sequentially million from quarter XX% our $XX.X in reader year-over-year expectations $XX.X from sales. revenue due XXXX, revenue down in Second quarter to down primarily lower Systems and was second XX% million $XX.X systems quarter

Looking expect forward, to increase revenue systems quarter sequentially. third we

Second quarter compared second offset of was first sequential XXXX with XXXX. XX.X% primarily by partially XX.X% mix IC licensing also was by revenue. The quarter XX.X% in primarily The driven higher increase increase gross quarter driven endpoint licensing in and revenue, was margin by a revenue. year-over-year

margin the was quarter revenue, product licensing gross Excluding XX%. second

quarter gross expect with sequentially. Total million our $XX.X quarter expectations Looking consistent third Operating expense was forward, quarter first quarter $XX.X $XX.X in second with expense we and revenue even outperformance. million was to second margin with operating million XXXX compared increase the product XXXX. in

$X.X million. million. and and was Research development General expense $X expense expense Sales was administrative and marketing $XX.X million. was

expect quarter increase Looking third sequentially. forward, operating to expense we

adjusted $XX.X second was in quarter million quarter with Second compared $X.X million million EBITDA $XX XXXX. and first in XXXX quarter

margin was EBITDA adjusted quarter XX.X%. Second

margin revenue, licensing XX.X%. the EBITDA adjusted Excluding was

Second quarter $XX GAAP net million. income was

net Second or basis. was diluted $X.XX a million quarter non-GAAP income on $XX.X per share fully

with to quarter million, We the million from cash million balance of quarter second the second Turning and $XX.X $X investments quarter million Inventory $XXX.X equivalents cash, sheet. million in quarter. compared the $XXX.X XXXX XXXX. and ended totaled $XXX.X in down first prior with

$X.X totaled expenditures quarter flow $XX.X Second Free million. was million. capital cash

results items highlight I want our to our turning to guidance, to specific X outlook. and Before

working free favorable First, trends capital flow. boosted second cash quarter

purchases second also We half. and to ensure normalize in meet accounts recently favorable levels. wafer we those the trends demand, second half second increase expect to inventory to our inventory receivable from expect increased We can so quarter

leverage once scales. future. our revenue our That with model we leverage scales operating most adjusted will ramp again third EBITDA to in And product the display again. expect in outperformance second as of business quarter Finally, MXXX quarter in yet revenue pre-due the be on leverage the come, additional as

our outlook. Turning to

between in third compared third midpoint. $XX and with XXXX, million $XX quarter quarter XX% million revenue increase million at expect We a the $XX

$XX.X We million. and expect million EBITDA adjusted $XX.X between

non-GAAP the the customers, expect now reflecting our On $XX the thank between the to team, million earnings the suppliers, $X.XX Impinj to our to session. fully closing, between open $X.XX. In your our $XX.X and turn and non-GAAP I bottom for ongoing million, net Rocco? want question-and-answer will call support. share I investors, income line, per operator diluted and you, we

question first our today from comes Sandler. Kumar Piper And with Instructions] [Operator Harsh

rest that. congratulations, results investors all fantastic Chris, the fantastic analysts and guide. sure Cary, all, the Chris, the for Impinj questions. of appreciate -- have my of First team sell-side at I'm X Andy, I

update penetrated? how I Where are fronts? readers in of are before Where to about second in than your they a bit have of both XXX% they I your ask provide you embedded IC? are of logistics endpoint your they curious long the little wanted getting could in in then will First out it mention be on more follow-up. of terms a terms to in And And fully commentary. perhaps customers, if was you went commentary. all, them way I of terms

Okay. Harsh, words. your for Thank you, kind

North consumption opportunities they rollout. my proceeding the and see end end see second relationship said And supporting user. label as also we've to end partners committed got for The full and with is in On as that them as supply we the that deployment we their a American well user large user's close user, as enterprise remain reader They anticipated. ICs. chain inlay increasing logistics our multiple I supply a that prepared and and labels end direct to we remarks,

made get do, referring I for you the to made of think In that plan to they've market they plans pretty what terms to just against the delivering and see about what statements about to executing commitments. and their those we the them them strong comments to time They've are. some frame XXX%, better I to

one the and of will, inlay question, market, and other down spooked previous rate from growth of intelligent the by your on distributors yesterday if labels. partners expectations my from And you reported sort talking

again, point, particular is. lot think I this than growing that distributor at are a you faster

us going maybe how than us through. of you large maybe are could distributor And some much to understand you that there's fundamentally So it that yours? think this help help faster color

Okay. Harsh. the question, for Sure. Thanks

close dividends those have We in silicon leading have and enterprises. today solutions relationships that paying volumes. and feel are really been for we visibility direct relationships And building innovating

suppliers closely smaller supply X ones. the dozens Additionally, we as of as large partner market with deliver to inlay broadly and well that

got or we've broad reach many through provider label the many, through one So them. just inlay not of but into provider, market,

feel leading like And good in We our We add? in the for strong to and demand my Cary, strength think in market prepared as you'd the seeing see said market we Finally, remarks, today. the overall, products about I position. we've our we're anything market. got products platform.

in everybody quarters. Yes. up the we Thank like X would last And just with that in Dennison Harash, I always line given quarter. remind haven't in fact, we them don't a Chris. Avery to up you, lined with

for their public with strong up always partner So but they're an us, comments. line just don't incredibly we

today our And & Company. with question next comes James Ricchiuti Needham from

about were talk I did Maybe customer to don't maybe just AB I'm them certain to signs follow question. on line just that last that And know seeing anticipating curious, versus any are what right. rollouts you quarter-to-quarter. up But in you of year? earlier the with shifting Yes, the you up

level, There's account. Jim, takes highest this At no, is I'd not Chris. with puts and the given really. any say,

about supply gave large user just and they I we their anticipated. we logistics as answer and North the to proceeding So end chain Harsh the deployment American second see

see So speaking, rebuy, We of in and -- in strength, and as merchandise, market. specialty applications general we're actually in steady was tail reasons we products long the not our I and also And market gave retail platform. seeing the I strength today. pullback growth the some in apparel footwear strength

actually rebusy retail not leading. over retail evidence it, the those up On see see beginning The and no Europe we market, caught see now is shipping as us of you demand. yet with we rebuys

do we see not a So pullback. broadly

wondering about a talk regarding I'm you is That's question. sight just it. And in And the could the if you systems business. systems have follow-up Got line clear. the of business.

suggesting you're the a business in broadly a or base QX. think Is business? just in pickup I project more that pickup systems

take I'll that Cary. is one. this Jim,

correct. yes, So you're

prior been modestly little We occurred quarter-over-quarter largely revenue a masked continued ships but revenue family in in the increase Recall expect reader which what look in reader of hope to all readers see generation And IC the in they're historically, QX. play. a systems be We're a to future. for couple as overall by we has our grow we lower as product coming makes time last low component systems the in tough business. Outside expect bit lines QX. systems of off IC sequential QX, those to DICs. down a strong the point components wind IC of to IC, we we compare We volumes, systems sequentially at the QX, There's shipment business reader stronger.

QX. of the traction point, phase final is in is this at big to project encouraged by some loss number that at we volumes for seeing. up across X thought encouraged prevention going the In Now it's guiding today not deployment too number we're play that seeing what early guide We're systems. a But Recall that we're but QX given guide be business. being in modest of more The complexity we're expected. a quarterly brands. that clearly the the we're as by QX a would that's different little bit our systems

Scott next ROTH comes our from Searle question today with And Capital.

on job Great quarter. the

Thank you, Scott.

into maybe haven't guidance to went I had into I take, Chris, a XX% seems environment is historically so little into implies seasonality, think larger. thinking XX sequentially. and growing, probably perspective, the from bit the a than your Cary in, couple I before a the supply we Blending a were that better of constrained but like we on days last know or jump of ICs about we it years, chain systems that ago. traditional was third uptick, think, trajectory it endpoint or are give quarter

if So that little could the especially wonder that, strength saw fourth the the what just about standpoint quarter we I from in you an IC third June you're quarter. quarter, endpoint talk the and bit into seeing about given a

that This Thanks, Yes. one. Scott. I'll is take Cary.

up prepared IC So in seasonality and typically up. and endpoint have IC is you QX highlighted was significantly normal outperformed our business end that XX% is QX, noted, slightly We around sequentially. I seasonality. normal XX%. to up QX both were up In flat point XX%, as the QX remarks, volumes

little QX. of we outperformed significantly into the year. but seasonality signaling end systems of us again, cautious first QX of approach on business -- business seasonality. up signaling a on the the That's half the through bit up, still given a So We're lower maybe systems maybe

little you. bit -- Cary, there. that But tie a just Got just more

more pullback. XQ anything a It's a customer not traditional specific caution from just You're XQ seeing standpoint given and and norms.

in here we we guide Yes, what delivered we're always puts our of but business, the There's in as strength IC not that's takes and year well customers. into and in see pullback seeing any broad QX. there, through this and our endpoint half first as reflected

at product Yes. we quarter my quarter, And time. do revenue remarks, prepared we guide X talked solid I IC. extending see typical Scott, about then in expect third seasonal growth, -- but seasonality some endpoint to fourth to quarter a in

quickly up. if And follow I you. Got Chris, could just

I'm starting You're you're starting get to take talk now. it we think and if us to through pilots, and about about should how food and vertical wondering talk you beyond? could seeing into, as about again, opportunity. Huge we 'XX that or I how the early implementations guess,

Yes.

around real potential case -- slower see we the and yet tagging in seeing that's stores continue promising through freshness. there earnings looking accelerating or the on see to further volumes stores. I for in things said, moving on more we food or my but significant. in new. had expectations remarks the item-level and further are saw had previously said opportunities multiple freshness that, I is and based then time turned are of top Those food supply the Scott, the accelerated waste I to food pilots we're of just opportunity tempered quarter's Those my saw in That's last pilots not second food, quarter, chain think in -- I food it some go. have into very out. On opportunities them reducing prepared and rollouts, and opportunity this now relatively is that anticipated, than actually and pallet acceleration around as But call, are we're the So bigger they the was tend I and quickly seeing

on I the time So for the they're pilots the that turn they seeing we're fact me and opportunities just stores and to you give into very layering will chain pilots already in-store for very pilots me is exciting. exciting. is the can't those fact size in a frame of that of the scope when and the are but supply top deployments,

And question with next Cantor from Jensen our comes Troy Fitzgerald.

a follow-up I'll on quarter. going? gross think Chris. OpEx with can what Cary, a spectacular you with margins, out you of another But help QX got that for Congrats margins, kind here just I of directionally we're kind us follow-up start Maybe where Cary, versus

sure. Yes,

gross QX, So in margins. product our we expect

Now revenue. that's again, license about the

increase margins We for product I to our gross to gross expect few our say product below quarter-over-quarter. running targeted are our would XX% reasons. range a currently, margins XX%

business mix our than of lagged typical First, as we that systems IC has revenue endpoint stronger have endpoint ICs. recovery of

range we revenue degree, in before product generations Second, before while and and perspective percentage line And sharply, effort running SKUs at are again gross product Investor this Day be we X impact overall, at higher QX. finished it just point, visible targets ramps. That QX, expect And year. we lesser we growing MXXX were the QX. then to our old a remain finally, in lower-margin mostly I should to a mix is our have the small the enter confident we it outlined expect in add a XXX-millimeter to MXXX margin would will that and of volumes last our margins. That I long-term a volume not moving that from

Okay.

XX% QX... grow to expect sequentially that in So and you NXP out QX here if ex you in

Correct. to correct I sequentially QX. increase that's OpEx expect in

should it On up an sequentially. absolute be basis,

Yes.

Okay. All right.

but I wafer like to kind or recently. longer-term head thought that just on now my a needs So lot For in Chris, There's supply. talked much right curious for about visibility kind I about talked of you. that, shortages the it just if know coming on I'm out capacity. of about wafer we've of I for kind AI, right? so chatter [indiscernible] don't for kind of process your much on remember of of just COVID, chatter

sure but about it a about much, it we've thought Troy, We haven't lot. talked

As growing remarks, increasing our we are said our the to wafer ahead demand. of in we orders prepared stay

We really market the And today recognize into that to way have has operations the have our good now, evolved, medical right those to and transformed hospital their partner shipments RFID. parts we support supplies to airline delivering foundry parts cash from and enterprises baggage. to are RAIN together critical they from carts and enterprises on that and rely we are everything supplying

Impinj's growth say So with have foundry of because the that another do won't never support to semiconductor recognition the critically are RAIN in I RFID go we is industry the and that cyclical. our feel overall, shortfall delivering can the market I what through today from we good growth partner. we

And the as promises, terms No of forward. opportunities, ahead and to I continue understand ahead with good be we need also but availability the market foundry we in feel in feel I'm the long we'll as wafer we going the stay forecasting, today. can't at good able and that able And I [indiscernible] future, our are are to to optimistic our that project deliver delivering support better into from are able it. buying partner, into what

is Cary. this Troy,

different sheet. we balance today insulate XXXX from of just customers other that And carrying semiconductor on that being didn't do the We piece forward inventory cycles. our that today, to The best days target have than insulate we XXXX. can XXX is in is so or our

with question next Our Markets. from Guy Capital Instructions] [Operator [indiscernible] comes Hardwick

Just to everyone else trends results. the congrats echo what on says

volumes Are a the same for us range [indiscernible]. and commercial of a which provided MXXX same prepared math, the talk us series by simple in like NXP you is proportion -- your the increase a range. performance XX% I I of MXXX are could the to of what the previous are increase just of firstly? the MXXX secondly, Because implications the step-up path implications the XX% closest or Maybe XX% said reduction like for think of that think that? doubled. power series, So mean, is competitor, I something And MXXX volumes something my commercial give the is the think I through in the sense versus wondering in you you my you question MXXX IC regarding what

volumes and then are take is first to it small. I'll I'll this Yes, over the piece, hand Chris. Cary. The

qualifications working MXXX really We qualified piece until have that now is few we're socket. completed. the getting and received won't We a the into first market on see ramp

of days encouraged early still right We're we a portion where small by growing are. now. So It's our mix. very sharply. We're

And Guy, impact. the question to about answer your

on in You [indiscernible] It the greater the in XX%, improve it the readability. XX% additional are between correct the gets capabilities numbers also lag, depending has range. overall IC MXXX that

and more that cite the with a We boxes are Retailers prepared DCs I'll retail my supply difficult and and more they'll MXXX is, on chain. box very seeing putting readability in DC. problems the into items items to as remarks, into unlock the were the are examples. it in that solve reading I the opportunities or manufacturing X XXX% into mentioned solve. One get outgoing boxes from as expectation incoming comes in previously

boxes We're there's really readability meaning containing now several impact. account. items in. in those situations, where into employees That's stacked, better less manual have box a open big MXXX exception The packed hundred the handling a to seeing closely that very gives much

is, Second with cite items readability food the proteins I'll to they tend difficult. lot one inlays wasn't give The using they're before. that in solve for good to on the of very those foil. mentioned finding food innovate MXXX, a Food where that liquid items have our innovate be either is we're that able readability if partners, readability may We're certain cases inlay and pilots. achievable I wrapped that use

into actually pilots. food those fairly aggressively inlays we're so And MXXX based pushing

we ability high penetration overall, in the new its to terms for MXXX So drive in overall opportunities. very have of expectations market and

really but off volumes And right high sharply. ramping We now, expectations the for are coming of future. modest

today Rolland our comes Christopher And next Susquehanna. question with from

your and opportunities any about update. I opinions them. wanted guess get And first, I just the on to talk

talked digital Europe. Any secondly, passport update I self-checkout. And then in think about the you there?

overall? this much draw and better. X increase an seen aversion Obviously, talking you IC-driven as there's do traditional loss do Or out checkout. And a in barcode interest think them to below would be think there's X have self-checkout, via retailers the checkout? towards you were there checkout? But an self-check about you of around think doing IC-based ICs it I with

I'll Okay. them question take I'll the Chris, this take second order. -- is I'll first. Chris. in reverse

In terms satisfaction. customer seeing today self-checkout And are stores. those of opportunities the opportunities retail really self-checkout improving we're in self-checkout,

have items point line, reading of self-checkout, sale The a the essentially in the I of I've in times. You wait of at done do earliest you was it don't many of the walk store. to is did you out instantaneous. -- some ones Japan. the personally

to go to put just counter, and is items a you the checked line down, instantly you your incredible checkout of now. waiting walk are, you see compared they store. a You you up items, hit the to on up the the in where screen getting pick It out pay, experience seamless,

store at prevention is loss in effective near we that the loss prevention what leaving -- exits. find the stolen the a right store problem requires difficult other the And item, have that's of readers because is and very sea a exit. items do what to Self-checkout the store

that able that been solve problem, to solution effectively self-checkout. enabling and have We is the

very and retail unit We're that, working that working to to business the We, ensure is from participating an Voyantic now question right incredibly working visionary they consumers European are they the with step make well. to partners your have which to course, together our be that pull the very also today, back DPP. participating, that and DPP. closely. have were repeat And carrier see approved There's to DPP we to successful. closely tagged robust in directly to able looking we're initiative first solution, them read for RAIN market. To retailer market. Bodies We're focusing Alliance as really who European the Standards into an is with So RAIN necessary make solution the via sure we on Impinj, then the together After sure are data items. -- to others go our step next enable first with on of our the

able to know really companies pull of are at I I RAIN push. for what the just consumers of that that be specific community, you that from but the can user entire companies readability. to level, tagged end to it need end And to behind galvanized items. there consumers lot in to all say read there's at level, can't now, proof right lot is points our a point enterprise there's the user a enable And provide the

but consumers. approved time as fast out, enable tell will X So things: get how are carrier; a second, the those rain this DPP rolls first,

and those expect both efforts. hard of So others to work very us on

Just a quick a follow-up then question. and

For think workaround very And years the they as consumers results they a have second your the about that now to Do that's on there. app well? talked for share in Do you my that that? imply possibility think and to they would accelerates IP read done? you having read phone And their strong a lawsuit that, is also, in able would their next RFID X or be so. competitor main -- question, how just then an question, or readability would your in had

try have to down. order. do to write come We I'll my best questions it. those and answer may that Okay. going in to to I'm back

terms initial be consumer in target target. of won't is That devices. one, exclusive mobile First readability, consumer the

devices. things they helps. like for users pushing readability of the pulling target it, mobile that, lot When the that that it. app the course, reading That's we in which really what and homes end towards in consumer is users a suppliers. be want have community initial in voice of readability see phone the the It's there that getting can but You and would supports then, matter say We're community. end than they have quite larger our enterprise enterprise and, it, frankly, a is an

for solution we gains our each or we position We feel we And market really good where can and and comment the On position, and of platform. number drive about the But stand in us. now believe for I is don't All and Alliance platform, about good compiles products those a the the for of the wants in there's deliver almost potential about or if about that market. our until doing. we say composite then about believe work. And for out good to we to in a the feel solution to year to really the order the when case, demand way. will end tell the the products flat products many get share gains always RAIN in right there's have NXP -- demand efforts feel effort and actually somebody in lot losses share the ways, overall leading share to share products feel market our we require part, our on question just in for can't is products Any what in was our good -- we around. enterprise use data give and, us enterprise design IP order around have put we work, who some and solutions design ability just those IP, about leading to Time a there. a third to in every

products. exceptions couple IC it number effort, in a there in cite in space, can to a for that IP, into IP patents NXP, use that what to the lot around RFID and large You out takes speak But whether going IP. effort they very going the effort historically. a put be put to innovating systems new or solutions do. kind It's that into space a is but of and design they're way Impinj I of of has can't and designing up to

us and the leading in that is do terms in in least a licensing $XX we've payment going about brought this portfolio, will that Impinj fact reached well time the at feel market the we a provider terms the fact million, upfront in first about IP million good which I of our of settlement revenue. products good forward. for $XX I And at that in feel

question-and-answer I'd session. remarks. back over CEO, like Co-Founder the for conference And to to closing and Chris any this Diorio, our concludes turn

Rocco. you, you I'd thank thank So for the your thank and joining like ongoing call to all today, for support. you

you, sir. you for presentation. thank all Thank now conference concluded. today's attending Today's has We

and a You may now disconnect your wonderful lines, day. have