CACI International (CACI) 11 Aug 222022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fiscal 2022 Fourth Quarter and Full Year Earnings and Fiscal 2023 Guidance Call. Today's call is being recorded. At this time, all lines are in a listen-only mode. Later, we will announce the opportunity to questions and instructions will be given at that time. time, to like President Dan Relations CACI this conference turn of At for over call Leckburg, International. Instructions] I to would the Investor [Operator Senior Vice sir. ahead, go Please,

I'm you Dan Investor good for Thank morning. us International. for CACI thank Well, morning, Relations Leckburg, Vice President and Senior of joining this you everyone.

statements of not the today last There statements differ of that in forward-looking actual this are SEC company's listed and slides, materially let's are current cause so to bottom such, be We in under facts move factors the night's to as subject that filings. statements will press views do are address to results These providing presentation factors at could important slide release from and historical Those and number reflect anticipated. described our two. as law. call are constitute our

this incorporated These like as in should GAAP. of will for Our be any this substitute exhibit our measures. that, of safe and include in isolation of considered prepared I not a included performance on presentation discussion harbor accordance non-GAAP as part statement measures point out call. financial be should with would is transcript or to also

open to Officer President morning, and turn of our Chief CACI three Let's please. here's slide To Executive this discussion John Mengucci, International. John?

our this of as Bank like that park as to a with morning's tenacity. our confidence us resources, Today please. lacked in culture. world our for our $X fourth is and two discuss foundational July, booth modest and and celebrated I'd today XXXX, year spirit made well Officer. of of to to office. revenue quarter an morning milestone. a they some reflection they That XXth CACI of ingenuity, Mutryn, XXXX and call Dan, survives we our Financial joining four, and me bench our year business. support this telephone billion our on In Thank Slide missions shared morning, good in quick for than XXXX fiscal for the moment generate Thanks, Chief Tom start guidance. CACI What is this results, you and keep means, everyone. and With critical nation more most a up started safe. with founders the fiscal an

has Our be the positive CACI decades. founders countless proud we've over employees, six last what impact shareholders had become, would of communities families, and astonished customers, and on the especially

ago. truly carry this We honored XX are to on years all started legacy over

full our fourth night, on we please. results. fiscal our Slide Last quarter So for to year released five and year XXXX. results

in Our our results were expectations. line with

to That future a mix times business awards, of contract full our EBITDA adjusted year, new recompete wins drive which we X.X of Slide of free of also the to CACI. growth XX.X% flow won base of represents a we delivered good support new $X.X and the billion is nearly awards For $XXX X%, strong book-to-bill And for and please. XX% million. revenue year six, growth. margins nearly cash of with to

environment. external the to Turning

strong Digital with out favorable currently next Community XXXX year fiscal continues prospects bipartisan Defense, government years, national look is the is over for there through positive. A spending Intelligence we priorities. Demand As support several moving budget and cash ability security be the shareholder in Solutions, Congress, margin and CXISR, our are to higher in flow gives space. us cyber in expansion, Enterprise and This backdrop IT key drive long-term and strong and Security addressable Slide Homeland seven, additional particular robust value. and growth in please. like areas, to and confidence

priorities and technology and and that of address long-term to need ahead drive spending. We customer continue to will expertise key invest differentiated demand

to government improve and consolidate examples. you and some enhanced are the we give disparate Within modernizing and solutions, federal applications data cybersecurity posture. efficiency me drive systems accessibility digital Let across

development to programs, software seeing leverage As federal leader scale, executing two cyber open actual IT, pipeline of largest government's networks network trend. dispersed Agencies architectures Enterprise opportunities development, including are DevSecOps and the enable modernize and the to software an application increasing is we Agile digital and support need to customer defense, an in Agile modernization key consolidate workforce modernization. and efficiency. industry for interest and increasingly legacy improve

challenges, like integrated multi-domain from performance. deep from both healthy of capabilities federal with drive for spending the access future real-time to foreseeable anywhere without CACI commercial Solutions CSfC won't for To are efforts networks addition, to Classified address like In an both new communications network is the investments making [indiscernible] from we available past positioned, enable Commercial in digital and past enterprise or And these solutions be we it infrastructure. and government will is for modernization devices well modern classified the and in and technologies, world. area data performance. Broad capabilities bring across

critical cyber. remains intelligence warfare. CXISR spectrum for modern and to and electromagnetic Turning The collection

more warfare, secured intelligence, priorities and than including communications. we to critical electronic counter-UAS electromagnetic signals decade, For have invested spectrum the a address in

those more threat For spectrum. cure traction determine as are with of adversaries, location adversaries, our of use as provide degrade the the necessity. near the critical by capabilities example, own global software-defined even gaining environment and we are to In customers protect recognizing and see and use the well to used the detect state these their our context

both Lastly, the communications in see areas to technology-driven the volume very decade-long markets. interplanetary we leaning geo more in excited space a the about important position In where bespoke photonics, and and continued forward higher the market increasingly growth. we we're our are CACI for optical opportunity and legal domain, progress

not Our generate the been interest and just continue in opportunities government and photonics platform to successfully customers lab in have capabilities demonstrated space, and providers. for space

production our fact, of communication optical partners. delivery In recently first to systems we our OEM made one

next year. track out X improve unique its to please. and an This early in upgradable orbit a defined Timing vulnerable payload software a GPS addressed. that an vulnerability qualify remain capabilities the or Precision needs to will low also on alternative into demonstrate Slide We payload space, to earth existing Assured be systems, APMT put technology, Navigation

of years all for know significant purposeful ago, revenue. drive create within and a made customers and in technology We you quality value to a different As differentiation on company both embarked increase to strategy a our investments of expertise our we market. our number and ultimately the

share stand here journey. over even margin we shareholder in value. we years. cash growth more by As XXX XXXX with mind, long-term guidance. turn compounded points plus to are than to this those earlier With and expansion durable in success, than EBITDA they delivered expansion continued our capital our And flow deployment today, growth I'll our Revenue were sustained ultimately that margins per margin the effective drives margin long-term leading higher We committed expansion. remain fiscal free basis

growth revenue range. between XX% and high expect We X.X%, X.X% adjusted of to margin mid- EBITDA the in

we will customer stated healthy invest committed will and we differentiation. long-term elements Tom flow generating performance goals guidance growth wrap additional and our things of addition, to to future continue need and on to up, cash details In to ahead of continue provide margin all CACI our of growth remain drive expect shortly. To expansion.

the strong And goal I'll As Tom. per shareholder free a many our greatest long-term CACI's flexible cash to flow opportunistic over is to flow our we've call utilize to value. times drive With commitment turn in deliver and share. that, manner to discussed remains consistent: before, the cash

morning, turn everyone. Slide and John, Thank you, Please number good to X.

growth of billion X% Our about. X.X%, with and solid, tax net $X.X Fourth were and we increased tax rate approximately quarter strong We was previously fourth short-term mission benefits. and driven revenue adjusted representing the cash cash margin growth. reflect flow. a lower-than-expected quarter organic XX Fiscal to margins healthy strong growth quarter year in revenue and top funding impacted of XXXX generated sales. although $XXX technology by results EBITDA for represents spoke by income X% other certain million flow was the slower Slide realized please. we delays continued quarter another in year overall and Adjusted the state headwinds of line

Adjusted total were in margin just point below positive billion XX.X%, revenue the EBITDA year, generated XX.X% X% of technology For we estimate representing and fluctuations slightly to primarily $X.X organic sales. over growth due growth. mission of of our

income was in adjusted FY XXXX Our $XXX million. net

in fiscal a tax increase income change the net method which year-over-year from impacts onetime a large income we net reminder in XXXX, a As realized comparison. year

was Next it reflecting slide cash collections. purchase $XXX please. Fourth million healthy quarter and profitability receivable $XXX operating cash facility million, flow for quarter. our excluding flow cash accounts was the continued Free

total XXXX, purchase generated the primarily of full facility and $XXX excluding For cash increase the The $XXX flow both was AR and the additional method but was we been year-over-year deferred our had XXXX, we cash million. million. the million. of $XXX method free of debt tax with the realization million In discussed. driven expecting tax to start purchase acquiring fourth of that million $XXX the had EBITDA outflow adjusted a of of at a we X.X is trailing ended to an associated the four $XX payment in pending. net change, offset of Act. we In year, the our by with for refund million operating flow consideration for quarter the leverage XX-month CARES benefit FY of under year similar change of We from partially margins still benefit taxes companies the million FY payroll by $XX times This year we the after realized $XX even cash previously

leverage modest access to long-term optionality profile, we manner in Given and to drive XX Slide to our cash capital, opportunistic please. to significant and capital have value. flexible strong a flow continue deploy shareholder

turn XXXX let's year to guidance. Now our fiscal

for guidance as bispecific known opportunity and we practice external develop expectations risk dynamics As finalize ranges. plan bottoms-up the we We is either our business opportunities. program-by-program our conditions and new and market forecast undertake track a incorporate and

we in XXXX, and grow both inorganic expect expertise range. For growth guidance between in of About the fiscal to with million to $XXX revenue year is included X.X% technology. revenue X.X%

margin $XX between income and $XXX expense. net inclusive EBITDA is million amortization the mid after-tax adjusted high range. expect of in We intangible million to Adjusted to to of $XXX be be XX% expected million

efficiencies. to operational and efforts here to Slide drive our modest have to and dynamics which assumptions. $XX rates. Net driven is million, XXXX Remaining X%, due recent around from structure. more Indirect with our key of our commercial X.X%, be in $XXX cost expected are We fringe costs are acquisitions, a expenses please. planning continued About up this some be are providing a reflect of fixed. to expenses FY in at approximately of around amortization the the should increase XX assist debt interest interest Depreciation are expense our million higher selling reflecting To $XX direct business. to range expected million. labor increasing following XX% on type are by

it to some we exposure have interest So increasing while rate is tempered.

which XXXX, state benefited tax a additional effective are We up R&D credits. from rate XX% and from FY full expecting XX.X%, year of in tax

expect of of as I facility year. $XXX certain purchases our few repay and and please. approximately quarterly flow profitability free similar but sequential trends capital note expecting revenue in cash increases for least typical flow resulting XXXX, year, not second the we through the We factors of that will under be will XXXX material taxes the be last higher AR cash to other Act you items FY FY and year-over-year can timing a delivery CARES expenditures the million in that $XX any in variance regarding are made operating remind such at but quarter technology. In in excluding we $XX million final million payment to margin since to Slide XX payment A result will least to flow, we make the of at payroll $XXX cash quarterly million.

we the did refund million in to tax receive change fiscal not $XX that from the expect year We receive XXXX. method

part adopted expect method $XX million We we in cash FY payments incremental of change XXXX. as of the

income of net approximately assuming by working cash of company $XX not would expense. offset as Slide deferral occur XX capital million or the net our driven the We million, of XXX this repeal by tax grows. flow expect code And increases around operating a in use than increased are of we more cash the R&D $XX If does please. Section be relating to lower.

indicators. strong. Turning remain Performance forward our to

we XXXX, year fiscal of business. come to our around programs, for XX% from For recompetes from expect XX% revenue and existing X% new

in performance over submitted $XX over healthy over with submit In of call turn expect to new of that FY we financial cash XX% and expansion XX%, Over John. business. billion quarters is flow. that, which two summary, new for strong With another solid I we next $XX growth, with XXXX will back expect margin over the evaluation. business with to -- And have of under for CACI. billion XX to We the bids

you, Thank Tom.

go strong to cash XX. XXXX. fiscal flow CACI and again please in and flow per Let's deliver slide healthy cash I'm able was share free to growth, that pleased margins

strong strong technology, priorities, XXXX with and in In beyond. positioned security and pipeline have financial with addition backlog differentiated we awards fiscal performance national investments in well-aligned robust and CACI for

and we As success to commitment very a as is for and top and because day. innovation of proud our extremely our the our what team Thank nation always the consecutive of company year. talent, each CACI other. achieved voted and case, I'm company all. this I'm every CACI also you customer employees' workplace our proud for do missions, you for eighth you each the

and proud is inaugural yesterday and company release from to the that are Before of positive mention we where on for intend many are look perspective. many work. to our to We're we we which corporate in that have and continue Nadia, report social the let's the open information topics delighted as call The that of forward impacts us and responsibility the our dialogue our questions, questions. the our for a and accomplishments demonstrate website. We governance includes open future. like issued we the environmental, live impactful stakeholders With to made ongoing an I'd important we heritage corporate report, we and our outlines around to to the in call stewardship highlight an communities

[Operator from of today Please Our Subin Instructions] go Bert Thank question you. first comes ahead. Stifel.

Your open. line is

Hey. Good morning.

Good morning, Bert.

big about whether or bit XX.X% talked recent come imagine guys I something think why you and That's leads delayed, a quarters. our you EBITDA the mission mission you in end been that's little Can bit pick So what XX.X% a say John, up technology sales margin. portion to just do a little year you technology. them of this at up? is

visibility any process there? if have sales curious, or you just the for the So, on RFP

actually year, Look, company both you the much XXXX thank that of most for different guidance our technology, to purchases we for up drive and changes is material depend visible on by long-term that to would and of Bert that into about specific very your on on focused our on some basis award questions, you've pushed To and and large all And not that value not. of that fiscal growth set margin Sure EBITDA talking a guidance growth really that high-XXs. take did into establish Yes. about to expertise us and even getting to on those line tech a top we're this hit bunch we've cases. we there's question. folded is It XX our well. EBITDA disrupt mid and right points. that's also how talk does there's not mission year reason. dollar But as made other different does line have margin one but for this What address looking been only both bottom a

our cover that's upper our that the going they to the away. of specific does all to of issue XXXX on a have around do putting that have go taking very and and on the the that do brought two end confident some you have upper of ends And we guidance as those forward to they buys. up directly delayed is fiscal come FY material low lower are guidance good our XXXX. out that on I a those recoveries or we're job don't end. slipped those gotten lower So, focused What missions We'll of three awards year

overall well. pattern out our are on as So, this our by year mission came proud margins fiscal bottom our EBITDA technology enterprise an on entire to driven the not of looking much very growth continue way as measure portfolio year, we multiyear but forward line XXXX all of in all, tech we just tech

based Thanks least of on the FY to the of trying growing of highlighted for DoD which which follow-up put we're should the organic delineate higher a and in on -- for I'm which between seeing seems the that your XXXX to what Maybe XXXX for handful CXISR you budgets, little are guidance. tech. then a lot in And And level. that for sort we lead second mid-single that. year digits, these of the are lot. like set, FY at clearly and a think enterprise growth sort started How more half a just have cyber is things does to low ramp-up sort A X% we It moving exposure your Yet below of perhaps process. seemingly it XXXX? at about that's why that items case? significant a of

around by Yes. that. and a guidance how and items the as terms of as let look a I'll at to government Those Bert guidance Clearly actually be the quarter-to-quarter all the between to those we saw the challenge lot to a our government That looks there this in Tom of It threats short not. knew we different well year. questioning, years. hey, tried ones and or contracting coming COVID FY near-peer in of reflects CR factors to If did it the counter long-term? is multitude out. of as does we are in some about and and different has part not COVID. other current going that provide talk those answer the look first Afghanistan were XXXX, a things other Russians. our Look, government move going nobody look that, in XXX% how at and fiscal play I'll tourism -- of in assumptions of how that the of middle withdrawal. was or the still peaceful was does anticipated. out some Is a we about in anticipated country be was like. scenarios how is back go out were coming Omicron Things invasion We I of officer at

a look out sit at -- And FY of why that unknown year of some reasons on we're the that funding budget many something we fiscal and here all some we is grew. reason to seeing your for level us come we didn't looking got wouldn't COVID supply chain budget which growing but As XXXX, we've of we're to to XXXX the numbers. not funding, at expect the using defense

have play out shortage the we look we challenge. as to as KO FY is So concerns to going how still to XXXX

looking the factors we're number So, well. a of at as market labor inflation and

there's many to for are $XX a so there say if So, to better stable out that a million tech order, I'd business. be only it variables mission that much be was we'd love able

stable business. very a are We

those We continue earlier XXXX we guidance different stated balance to and to areas that range than on more having completing grow within lot our within of FY we a XXXX plan finished Tom? range our spoke on. I

low of sequential about increase I going as in revenue And expect XXXX we of that in right hyper-focused we're are obviously to revenue some think now going either pass-through say which talked on what you sales. And we Yes. vis-à-vis three, There Bert momentum are That's tech we're the high FY quarters terms mission fluctuations because will margin one, we're I or four. materials FY of some today. kind the two, XXXX. and mentioned growth into expecting

variations associated with be may And so some that. there

look that the at result in on we're of particular XX-month trend basis better company quarter. for As a a level year guiding than trailing to any a full

So, FY we'll see momentum well year I the going think into XXXX. we're and this positioned

Tom. you, Thank John. you, Thank

Thanks.

you. Thank

your go comes Peter, is of next please open. from Baird. Our Peter question Arment ahead, line

Tom. Yes and thanks. morning John Good

morning. Good

the be roughly intel it budgets markets are that's looking regarding like just for high your XX% at just John going the budgets of to the maybe up and looks revenue. and XXXX single-digits specifically maybe

Thanks. about funding changes So, converting? maybe of how just to And related maybe quickly that activity should what is we regarding the the then there? think pace that delays

Yes Peter.

more believe modernization to forward Ukraine general, to guess, continue lingering do that to And world peers as have eight talking really It's revenues doesn't and FY we we the the XX% XXXX to will be non-kinetic what market going and some started for budget think that those advanced IT last The down. Intelligence pretty spent it would budget, like. wide government call within our our Ukraine the overall address in $XX We required terrorism is be Intelligence increased a of past. capabilities time DHS wake-up Community is is and as a assume well there. the seven in of involve but range the expertise. domain. but budget impacts like how budget and the got around I we discussions as We much dangerous also addressable constructive We out spending bipartisan on first near XXXX. I well of year to the space it billion like budgets, we national some in China versus that That's that security technology lay we than I'm Community. our late so within and as be really could it's being would talking fiscal We're that discussions. needs. about it counter as those intel increase we support place funding. why in off, Look positioning current I across today defense and other see and CACI excited purely are numbers roughly more about We've spending. in becomes years funding those as I about So, this more continue nice analytical our Look still clearly clearly. have go a like and and cyber technology look

XX% stage week right? funded? XX% that that a sort a an of whether going outstanding our contracting seen to contracting from of we be is have the just What have set So, officers in to released? is on XXXX. it's reduction be we've last fiscal how the attended going about to to year in where is budget, work about moved conference have How we So, through funding officers. is what DoD XX% for We we the Intelligence way Community

continue So, I to We're Tom? that. to think we prudent guidance right going and think to watch we there's other have set factors the beyond budget. for

funding. lower one for of of we the some reasons fund backlog Yes. downward Since months, a And four prior kind call in and looking closing period. are than the last the through at close prior Peter slightly the Funded And the cited end versus the of seen the X% we've year April at the last in gap. was the on then pickup I'm that in to last July being we June call. was around down year.

So, a third monitoring end decline as saw the but not part the carefully. severe we we're as this at of

some of issues As are contracting being offices John mentioned, short-staffed. there government well-known the kind

We range. within that controlling guidance. We're making to perform sure of the are execute monitoring guidance we'll that funding it our carefully. we're funding And have kind comfortable kind do to of controlling in have we're sufficient the we

back jump queue. the Thanks. I'll color. the in Appreciate

you. Thank

you. Thank

comes your question Melius is Spingarn of please from ahead, next open.. Our Robert, line go Robert Research.

good morning. Hi,

morning Good Rob.

Tom I question with that technology got math Bert went could associated correct, what our higher-margin sales the EBITDA the technology wanted about. I million that on to -- that million? wanted ask asking about $XX -- and was the right a to and if the to Is the these pushed about were sales was about sales math $XX I the FY mission to XXXX this touches right. that

Yes.

We materialize. didn't did clear, not the they were that be they said pushed specifically we Rob, to to say So right.

been could them, some to right. of And pushed have the so

kind Some priorities. and of there of changing them the was government

mixed movement And of I so, quarter. quarter from bag, will kind not take the to one-for-one a a the fourth first

math I or I that and shouldn't have it didn't applies or sales margins. getting materialize $XX $XX million the at, I'm moved the whatever. the million. The that phrased but What Tom, way, guess still is

Okay. Yes.

associated margin So, the kind John kind what kind mission the of of was leverage - of of with technology some mentioned, impactful. your sales.

contribution. million, is $XX are the in kind approximately million some high to EBITDA million, of of $XX million, generate mission of $X $XXX going margins sales technology Our

regarding that's two is or I or impactful so became one are. And the shifting, that, what on correct margin. or generally is numbers arithmetic to EBITDA and margins. disappearing, sales think reoccurring than It XX.X% with is less your But really

Okay. fact, I'm And It profitable. is highlights the where going just really, with this this. technology that's mission some very that work of

the In the range. the margins past, XX% these we spoke EBITDA margins we XX% spoke kind that acquisition, absolutely. and Yes, of when companies about Mastodon margin some were of fact, EBT about of EBITDA in the the

And quite so profitable.

And material impact one so a any quarter. or on month particular

So just technology to one Sticking and for on discussion, as so follow-up, John. is this speak. expertise a with versus mission this

You in and going optimal growth do is are -- of XXXX, for guide you all the areas? two what example this What's And in a What how number peers compare and the the of Leidos two for direction. the mix, business? is of these types growth? the contemplated for these

to very your quarters, technology been a to get this. to how We margins. and have government are budgets where we there, evolved X%. transparent customer asked getting your to expertise wanted X.X% of on low thousands do was next? a that's to of where business must your it took And expertise, the be. out me enterprise grew optimal we're we going we're selling at company, part do and anything XX and are Buying years there's this to There I in So we $X.X at I'm set at guess they've Rob. never company XX% related, be position macro think folks commodity of don't soon Power it, for shoot-outs course it I number I be of is Look, related. optimal by Rob. there's When a shrunk level Yes, at next look years What where at we go when X.X away revenue nowhere back, at both Better knew rate past No, be love going right? XX%. right? an dial, where performance, we I this how was billion growing for And growth. the

perfectly we technology going the a of that have We employed. of very, push on would Booz we strategy market do number bench, people XX-XX about more all you, the term and ours. said with report. want that but I predictable, two, quarterly part other we of sure, Having get leg solely better-looking solutions. our strategy technology towards drive sitting little due differentiated frankly, times no can right for and major of certain expertise type maybe we're one people on adjust in labor more at is looking the finding number that long to is of a informing maybe to don't all used, expertise or technology at up and specific rate. Allen I longer And not other or a much the be We been this to is for how expertise love than differentiated have wish involved in that, what much company I And people a grow company technology the get create dependent, can us. primes, very So don't a stickier we can't respect, making strategy can where have a non-kinetic expertise. tell is. some have going on mix impact EBITDA on a so making of clean we're to more Leidos the people we what I the that ours watch their that at a optimally over embarked, forward. could were works

X-inning early that of move game we That's bought back. forward. overall of in this years being companies, these four able company nearly Some to pretty

time, growth or better company, business. whether whether because to by year, when went it's where X.X% doing long why, XXXX per be of buy quality flow bottom drive line solid a line then is growth we we period And we outstanding a we'll what generate a to free or driving The trend top shares in we're it of absolutely much earnings higher X.X%. from were to cash share see going on. buy our focused we're it's that. or we're I that's long-term that greater And over and than the are following line back companies, here, trying So we

We've But we overall, positioned trend number where a some which to is position, XX.X% Peter's we're to anybody line else's. business. much going a we're willing of to spending. up are over that grow top there and why we at a So defense company some continue over is in years to going There's going the XX.X%. intel XX.X%. strong strong very years great is defense to be to And question, business enjoy a a business this both time And got against be better very XX.X% bottom. years, put

even if environment, to just I just way snapshot at relative say John of there characterize going a looking is those in the to two Tom it now. the Well, we're was in growth was areas, current any to

right. you Yes, absolutely, have you're

Yes.

our we're they're FY in technology and but with positive XXXX both So both guidance, growth. a higher rate, assuming grow that growing at technology expertise

margins in and increase of that is And technology. a Kind would kind so would Technology the is of of and to X% the expertise that. likely that so expertise X% observations. is margins than faster I or it's are range. greater said average guidance our a than say technology exclusively time then not as further be strategy, all continues growing And variation, look Two there acquisitions tend we'll kind grow in not rate. past, over kind from will technology we more acquisition hold. to at at than assume of if but to opportunities to you on higher there has get One to other

Thank sense. you Makes Okay. both.

Rob. Thanks,

Thank you. please And comes Parsons ahead. from Gavin Gavin, next of our Goldman question go Sachs.

open. Your line is

Thanks, good morning.

Gavin. morning, Good

and flow to of just better. a kind little go cash understand try to maybe bit bridge normalized I wanted through flow cash the

could methodology think change each $XX million the back that other $XX year, CARES almost should this little the So point, if the and the then million from looks $XX but maybe if reversal more a the $XX we about cash I like detail normalized on or the offset us bit give million net starting about how methodology we that? Is and add million think maybe flow that that change. you

Yes.

an had So, that that here. reversal we million. and XXXX quoting you're in CARES XXXX deferred outflow Gavin, both there's tax numbers The of $XX payroll Act and repaying few

basis year-over-year And a so on that's wash. a

FY at into million CACI. benefit strategy change was That XXXX, upon XXXX generating tax The – $XX bridge. FY was we benefit doesn't outflows really going that fourth So we in be XXXX. over a then is first have our to outflow the and third year FY inflow and second would go that the the approximately four the years method year cash embarked XXXX such FY and in which in in XXXX some a large the very to a realized planning year

Slide last working that being be that's of by a we it cash of in which capital the – increases operating that's more terms of kind flow. with some and kind case. generating expected the other deals should see bridge this in XX flow The that combination is company the But working that more cash so capital. walk piece, of and of kind gets And for you'll profitable offset on adjusting down year

Let speaking, on working me that color consume some you larger growing of kind generally when you're give companies capital.

a of as some seeing we we cases inflation. more mission against products levels ahead protecting impact. are buy in some we're inventory we're to critical On so And year-over-year increasing technology chain-related need, that inventory, on of our planning components, deliver supply basis. And

working So at the year. in sheet will at use that who of of versus our that's Payments, look June last payables had an people we another balance end increase capital. notice

the XX normal We get ended level And outflow DSO days kind to quarter. we cash other more with of of dealing XX of a payments expect a we to end some So as AP year our payments that's as have the debt DSO, lastly, normalized of with days. some at of kind as first tax repayables. at on kind got low of kind

various DSO offices and seen FY We've agencies part payment the of government delays about assuming There's are in somewhat So offices. now some XXXX. flat short should we're be for that. staffing payment and discussion right

in planning of although, our some of DSO. to that impact minimize that be So are hopefully working do We'll kind everything capital. of higher we flat power to lower and drive able

Okay.

working flow out approximately So in and is free what that anything category, abnormal this cash year falls sound cap if it like strip doesn't I or a ratio? conversion

the flow gives I flow, that's basis CapEx you of up think dividing issues deferral $XXX cash think could – I – few then of free a I million of is $XX with the on so is operating by a we're free pretty payroll And come $XXX normalized level." add Well, more guess million of of so less tax flow. cash a kind simply a to million that I cash those that in "normalized conversion And it net income. which

Got it.

wanted long-term you your to kind view updated the market and of if addressable Okay. I outlook. Thanks. forward on rate on of extent ask outgrow the just that? maybe growth then you And what to rolling growth thoughts could

that addressable really five-year addressable X.X% a sure. we're right at about we've And Yes, level been any of growing in that CAGR, the this those frankly sort it FY it some That, market year us. we much north factors to other -- constraints here billion macro look on. things period. Gavin. in five-year haven't to billion. We company about where now coming were of like and we've $XXX of, in at some a see market the the see year market look addressable at at addressable Sure, paid XXXX. it's there Look pretty when of the to when unlike out past the of us our impact already to $X are of that I our way market, billion at we inflation the what XXXX. on been year we the had spoken contracting was It's budget XXXX least be Customer Ukraine going and the X% a with $XXX fiscal was not office feels reviewing things actually

much. Okay. Thank very you

Yes. Gavin. Thanks,

ahead. our go of Thank goes you. please next to Fargo. And question Akers Matt, Matt Wells

Your is line open.

ago on if back share capital you a a you ASR, like could still capital of way could M&A and to more, bigger this part Hi. you that of little you Thank I you. think about at it or Good it, especially repurchases of the general focused guys in deployment that morning. did it think year go I kind over a point? deployment? on the to kind when of, right was sounded talk wonder kind maybe if be are Is

discussions flexible go see equivalent the and to as expect And fiscal out. should an into ASR. do to we very XXXX year us quickly that and of you factors on we are as many there's this as John. deploy to deciding receive a frankly. we continue us As months those XX-XX to amount during we Both And of a leverage during Yes XX stock of fill is year are of be Look need were lot we sitting X.X about like. XX what we of around additional unknown assess continue here of of that is Matt, pipeline still lot we right? year M&As extent That's of that part our a did can our as things ASR. M&A that want and that the thanks. the well items. valuations known fill other over path, between And four looking status fiscal going the This to gap. And to that at mentioned plays as gaps those times. we months. looks at control. to how that we We're last capital There's to type And our other we're to XXXX,

there. say our job the still would best cash -- deploy driving are we monitor that to we're options we I going right So does all in to flow and capital XXXX of free share. are per going We're that

level. one And lost that delays sort years. issues then, last COVID, couple been pent-up budget point? the is over delays of there a we and catch-up? is grow procurement kind opportunity the above at this of a demand Great. at a a what and of once is extent mean market a that of -- like sort guess, that could there is more Okay. or with some lot you've long-term in extent sort To I things of of of just there's what talked of stuff work normalize maybe kind Like high to I kind of growth, about

can look about wouldn't have order of priority so look didn't you talk things wasn't. what question The of we is that other we at we what and we're we and Yes the funding Matt trying great. today, budgets crux the thanks The if at if that and when have the XXXX right? is thing. because contracting we really it been that's at control. that year went And budgets walk can't less priority budgets not everything control. about through to was for or looked can employees simple much mean we doesn't it priority XX% up. -- up a of control That's not where can officers It XX% every We cannot what budget This in at that level a sit. only folks funding to the is

Matt on pretty those much when operational CR run to have understands business. there. complete July, how XXXX, come funding come normalize pretty they So we to we sector to how in what to that competent be understand we're a budget, We're we're a anomaly are when a all balance We're doing next not to wide January. who But the unless within what a had -- priority afternoon right we we're going continue are at to to our focus in in space on like awards out back things world Tomorrow get continuing FY our to we to when expectations out going going is invest XX:XX focus whether areas. going efficiencies. the play

make of job right positioned company certain that our we being within the a markets. to the in are space major So

we're to markets So actually are positioned are we're to in positioned the going that or over away going that continue not markets long-term grow. in

concerns growth. be job our fluid that higher love tell we as our can't what in you what X fiscal right that to the that where top-line customer revenue fact that certain government place And we plays those And control pays next they we're lot are we get of putting I'd do the all in year. to fiscal There the when are for marketplace technology -- to time. volatility on plays we can we our is a mission to dollar a shows growing So to that heavy is, but we're margins on every year you things resolved as are that a range XXXX. into make areas lot prudent going those also be that get that guidance our are are. October not have. Yes, of have goes very Chances a

things have showing we have. cash we just to the I years. Matt. the we've that over that we right for So been free I topline number And the get strategy fiscal next We're playing need year few of we driving 'XX like a hand growth, the areas, fact through straightened question, the that like got flow. out. in Thanks

you. Yes, Thank that’s great.

you. Thank

of comes Our Seth next please JPMorgan. go Seifman question Seth, from ahead.

line Your is open.

Thanks very much and good morning.

you a ahead that sector Just may it some buy market work into plans fiscal are the of regard not bit any need talked going that it to of some technology up of capital year. may not confidence materialize. implications your And question. follow is and the Perhaps you we With in share? do stuff across kind up just on to see the little the kind gives of something future some actually that about the about how is 'XX. there Whether to and materialize has that just mission given of for that the out going to we this it slipped working happens? build think What how of like, which materialize

Yes. Thanks.

as from both out from playing revenue well. is So at well That side this technology the of side. a as drive enterprise is extremely company mission macro strategy strategy level, in the both the to and expertise

to XX% to of we're of things improve have years. them. quality a continues to that We've the last National AI of We a Intelligence in federal CXISR We're in and well be Community to in have have over that government eight topline not. seven eight funded. the to Security had revenue what Cyber But where the right spend. we're continues in the in and continued well-positioned lot for of is deliver years revenue we has normalized a things fiber, priority places be the come we're in last in Al enjoyed that net-net our that growth the

funded areas We have or other of that come have commoditized. well been as that been have not out

we're long-term journey this So And reposition the number you of is years, model. can all tell last this it to is I a over on company.

acquired where a growth we much be to need we topline are is lumpy. able the to and prudent at by to albeit awards are being fiscal to is than which acquired in going that been the organic. all the the for We that about this guide in Even talked not this a past. come the guidance here that have this revenue believe year. At in and our There X% do of prudent come determine upcoming in. some We to some is better awards positioned company and midpoint day awards in. win us needs have We company guidance sitting job have provide the you like. we're right make And today and to right allows come certain goes we they'll funding end

see that Does Justice incident not from we our as enter about to acquisition of watch. I M&A to M&A. and the terms an into we Justice approach Great. the don't Department Thank of administration M&A, your the what really FTC the expect see you. the all And thinking their this with and regard strategy? effort to Department then at comment just isolated your in a the Allen of block to it's follow-up but on at Booz you

it business Look constantly ours still no. -- see enabling programs answer fragmented Yes. a business competitive I is market. is creation. Government it's Thanks. where short small are relatively new large Look were from

we're So, to XX We're that the to There's going of we're come be M&A where gaps. company. years. we different number no. at an that We're front over looking Strategy path to level strategy-based for take of from. the is looking no for acquisitions going on XX always a years

internal those how partner going that M&A no through of and change anything But to And to through program. it's on going isn't you we we've some question Seth, for Thank our specifically partnerships. investments fill learned there that. handle

much. so Thanks

Thank you.

Sheila next question Jefferies. Sheila, go from comes please Our Kahyaoglu of ahead.

is open. Your line

bid 'XX? deciding on and move mission. towards into for bid How you certain are you that focus on maybe people on guys. that it good John strategy been Hey, you the are doing I another contracts? but Are and continue that it's pipeline? fiscal know shift you Like big one with expand as hiring your technology to to upon ongoing you for continuing to morning you you're focus strategy? years, your several Can more? little how picture

question. term work. is what more what within Yes, were to you're approach what federal would call seeing tech. us commoditized part ourselves expect we market. terrific is further our and we now would to historically, in differentiate tell the overall is Sheila Look where the Today expertise thanks. you of Terrific, informing I expertise Longer I tech business evolution

shared and honor and businesses there. Every So, make up, us we've dollar we sense again call right? expertise that of some had some we'd investment sense on have this, taking been for area, Security recompete not of customer sets. looks That a generate historically make really we a want been have have and are to in are margins. have now, what as we hard I tactical come the predominantly there work those, biding on that specific bids at from of best months business have it if adjust bid frankly level, XX and National is it we There dollar to that lower the investment certain programs absolute to making our

times of at And to longer-term day if that this to XXX that work, because XXX, a got amount to would because that So line has the yes, hang largest it organization have end on does be we in top hit I least that of away continue that very growth company travesty out think what we we position top from becomes line, historical grow decision, at so will need distracting. number. what on at taken make the we of ourselves, I the But the our this some to work. it

as bets, right, the right. So, and them major They're some not calls smaller and smaller of make year are be a we there right to but beds. are not some to of series these they're going going in of

do talking we're our So day, of over about bids a labor looking hired we're not to turn our time, sort we've is are. ship what what pass-through this and of direct where what people and material is number to

that but job those greater, We So, margins we've Tom? very judicious have don't top go decisions. growth We line decisions, they're the absolutely we'd have to those comfortable so. all right? already time, of done with, seen over that level there. And like love a driven we're away. to that have the But results we it right

technologies is our to And market, customers. the we a we've to of propel of people, sell the some kind number of growth. to other those increased of a some kind who Yes. enabler need of ahead doing hired both amount sure R&D kind activities We've the making technologies lot client to area, been business development with our have expertise, technology that of understanding particular investments the investing make of a area, the right executives', in significant have of of money

well. top us as of to are technology Partners kind those so with And there. some companies get enablers notch

successful So and allow they after more technology all go the go those. to and content bids to into mix winning be us

you. Thank And maybe follow-up you, both. for more one then helps. Tom, No, that

about terms given forward hyped a been up we is chain In lot, a of but just think the business, supply fiscal or it anomaly working continued usage slide XXXX going as shortages. a for capital XX, do it's

Yes.

'XX. of source several anomaly being working question. good cash of -- the FY capital operating saw a think is a bit I last years Perhaps What we over flow. in

DSO four was years ago XX Our days.

days. down to XX to Now, XX it's

make getting adding And inventory be some so cut to We're require DSO companies hard growing to pressures to was material improvements operating to working to flow. level going a a cash that capital. it's who an where

in operating do what of minimize forward to But headwind. and that of in there to So, cash capital we'll we a kind neutral, vis-à-vis and of headwind somewhat year, 'XX, a try keep is flow 'XX. going can we're going this to bit kind 'XX working

you. great. Thank That’s

Sheila. Thanks,

Thank you.

Our Sommer Tobey, Truist Securities. of next question comes go please ahead. Tobey from

open. is Your line

what positioning, us in success give sort particularly describe of you from maybe then, on of in having lead you. your Thank you commercial or now? have competitive commentary years of Could three a context about viable like part product in the space, a maybe perspective or not? four your any kind business some that, And talk of the optical looks the

the Look, are we're in we the really Tobey, photonics Yes, where thanks. frankly happy communications and laser area.

about that And areas, I market missions, can't prepared bespoke right? here. acquisition. As in mentioned talk with space. I our about -- geo communications. communications in interplanetary Tobey, look I The our Very we're we two my units in we And many have LGS involved first production step in several was at remarks, into different optical and think

moon terminals a very assets and on we'll part heading on airborne time line satellites missions We been also the years. on have for that the specialized be have units of Artemis in laser as measured mission. have transmitting to We've in going

taking small the exquisite some photonics, we On the talking factor the thesis right building of form devices. high-volume, have are proliferated believe take higher was about volume, where of produce we place as start still Part and capabilities we to LEOs, to we manufacturing technology up we on factor in scale the close solutions in our units can to adding in high-volume have additional have world, make short REIT so form a cost. we and sort that algorithms that device bespoke without production those We've that, small the much space. already of on links give sure manner, more we

per programs of We've some and data with got We've both second the connected SDA. DARPA transferring rates if around at links. have higher. one not gig We been great

sure them mentioned. they're when as XXXX investments that the that right very space meaning making but us multiple in some revenues. also And successes, we've Spok that about, in of based This the through we really in denotes getting So see of them, of material We price, is and business the FY to to FY some in in commercial We're those down and that, the going tangible. earlier It's talked path. requisite millions price thousand on where to is as It's other we points both that the we that one is that sure our on, those satellite markets large market of bought Sa we on looking make XXXX. success positioning to read had not air. a are – and for take hundreds December challenge What we us Photonics, dollars to be are domains I at best only to proliferated volume. can through defense to testing like very of much of make to high real. are solution, in a LEO for take photonics side. I last get operating them

should in line that XXXX, So about go see we bottom started and of volumes increased see our additional market, we success north. revenue that is we from the movement talking that as numbers

hopefully, So, we gives of good think. pretty cover where a you that

comment mean rate Do higher a share variable capital times. deployment you exposure and – and could standpoint, interest From of rates environment aggressive does. you're at you acquisitions you repurchase in are you what your just as there? X.X to interest the less Certainly, a result

Yes.

So, XX because Today, year X.X%. it's averaged LIBOR of basis kind points. around FY XXXX at in last

it's a have not an In repay incremental repurchases, slower So say. grand we'll share kind cash make let's X.X% impact similar albeit borrowing material to additional scheme borrowing should we'll not X.X% whether we're fund our at or two driving those of impact per we've but free buying materially or increase a of to to seen percentage, expense, kind acquisitions, level, investments. that decisions to debt that's interest still going Share of the have not some to be at material. kind flow

assume continued several least can you And next rise for I at guidance have the in that in LIBOR your embedded months?

of Yeah. will X.X% have June Absolutely. approximately get in expectation is an we to guidance the embedded LIBOR in XXXX. that What

the economic the somewhat of shall curves and seems with of kind and we So that be consistent path like. yield say various road forward forecasts middle to and curves

we'll how see So we do.

much. very you Thank

Thanks. Yeah.

you. Thank

is of comes Colin, Our next ahead, question go from the line your Colin Canfield Barclays. open. please

on getting about guidance? track the little on with and a EBITDA thanks me respect to Hey, TSA, what bit impact for in. potential you're we talk TSA growth the impacts the the Can assuming and

Yeah. Colin, that protest. job under is

But we have out we way XXXX pretty FY our FY say going outcome in we all program what out the to now, revenue of and believe laid government's cover that sufficiently amount we're some guidance. XXXX we the laid have plan, until is. see We have in it that much

PSA it. about and bids And impact FDA if you margin. And in to margin to lot then no implied Got a low that below environment. I possible still bit then on X% side, coming the of maybe, and the the expertise saw was Got at of XX% seeing Is we're it. of technology and a the are expertise kind the both it considering of level margin technology X% in bid? think talk little underbidding the we cancellation kind multiyear your the can on

in and – of kind pricing exquisite So come feedback mentioned optical to needing the you your down. link

you your maybe versus can margin XX% talk visibility? about that So framework

XX.X% last we've margins years our been away pretty winning we that has guide. Look, It different being That's guide now exquisite given XX.X% better Yes. down sort line. didn't. on not we're much any path that we and over and we're based midpoint bottom you on continually programs, seven like that on some XXXX down. after to this part work the I don't fiscal item. darn brings fact of think different ups gone that, markets XX% as guide grow than there's dependent is Nothing job some a But prudent continued a some believe the like, The on commodity what certain is making next were looks predominantly as There's to FY that, year if why of ago pricing think seven comps year's making from that top a is moving bid volume. decade of or be or we so that right to continue the losing went proved just we specific number. making you to one the going take optical expertise that that proliferate. given this years our a have off. commoditized business. magic is XX.X% path a done I looking decisions is so a downs good not Yes, a it some decisions X.X% to programs, company. And work, can't of true work start raise that from

because margins We out a products space, items of of what start higher-volume head that are. longer of work why understand understanding history, got on we've that XXXX. do a which satellite in talk world. on going throughout got we also that, dynamics believe tracking is to And SDA than quarter been those of that a long prime teams drive margins we the never like we've call we've worth about doing targeted those And we're growth correction have would of just We we what because are the do where at, and not of some in space. have are FY builders a the are this third a the number that on -- I on decade

Got it. color. for the Thanks

Colin. Yes. Thanks,

Thank you. America. go Perez question Bank please ahead. Mariana of our And next comes Mora from of Mariana,

open. is line Your

Good morning everyone.

Good morning, Mariana.

follow-up is M&A. on question my a So

-- to good mentioned do already morning, to be want that's you that You biased towards technology. going

for we However, environment? please us give pricey. and that M&A heard some example space is have around M&A pipeline the you technology your color Could getting quite

we -- some characterize as wouldn't past there. the There XXXX over is Look, have go to be off picking that months. of of our we seen levels to sort doesn't has are go pipeline we've opportunities are flattened where available it's always what I want robust. the market strategically out six it sure. Yes, robust, about way but the

cyber technology our assets And Tom cultural continue, to We're that cost-effective do SIGINT that going performance. focus our we're EW to also analytics. strategy mix out as modernization. build would to consider quality that our more be with continue And IT price, and to expertise there either our the to anything have customer portfolio. to past at continue or the areas be us right and does us to mentioned, presence a Just going right and allows additive on and out our helps AI

out our we line very Look, with be active. in just acquisition very, a what top continue are see. growth. -- a differently PEs provide also that crucial could us to customer there's believe different a a potentially those there more current areas There's drive start-ups line an of little lot set, So to very are position will on within to PEO that us and bottom color we

those That's our how in not expectations well-founded XX-year valuation discipline high. general as we're you the to remain of Some we in. going and as compromise do mentioned bring M&As

to frothy grow market? fact is company So absolutely government it a that factor it And to is to to very going going this recent Are a No. major to is continue be? the around be that continuing M&A version have we a very, deciding No, play not. to of does select? in manner the Yes. is

additional that color? provide So some did

understand from. Yes, where perfect. I XXXX a FY guidance. like probably on to conservatives then come one would these different And

work. with of billion you So submitted $XX you bids have expect soon robust a that to $XX of additional new and submit pipeline billion high content

However, only like expecting you're work. X% to new contribution growth your from

is rate? the is this coming where please Is color like some win that protest award Is Could me your on give you where environment? counter Is from? is it systems environment. from? So the coming

to lot that really can't can detailed I at just thanks things restate, are at the element right another And these absolute to of this would our as, from unknowns be variables we examination to slow about throw things little that the all lower it then up. of some case, It's in mission KO guide other The that to higher And between less for pace in then materially best inflation. end Ukraine our of talked delayed to quickly our at and At going being way than myself grow in and kinetic counter-UAS the guide, so it's it comes of is a as a timing we've off the we're if level, contract guide Mariana, certain talking each funding things guide we late the recovery and difference end that the the end systems. potential to We be from do answer more our There's it's tech guide. those on a CEOs big bids is up. area drive moves higher fellow the those of for Sure. control faster. conflict make the If been we see the of awards Look the up the in on One then is are that guide. look our and room they about tell it uneven. best do a about understand things for to every that prudent a submitted, that talk of that. variables. bottoms of been going how the be to start a potentially probably or this can There's way come we low the bids these run then all right, we majority a that see? and you of looking I'm unknowns can has about. factors. things different of to at high end right talked the that lot the recover with tech year we world this lot don't again, and at they're has themselves. there different what them up there. job officers future, non-kinetic why complete resources looking Do room some improves in then we across also expansions wage end, adjudicated If ramps new some that of other been slower, be to resolve off. a awards the the funding that that international? ramp low And completely we're has contracting And that the doing we'll in that delayed. the all I'll would

FY for haven't a hit XX% the Absolutely Wage thing term factored We and we go to of higher going all do to continue And increases in the wage and And lot XXXX. which to so. difference about in XX% handle funding. play of Do those at inflation potential impacts inflation that better to Yes. is our down for in business talked a at to things that how is is is we macroeconomic with geopolitical guidance? lack then there's on least our business XXXX. this real. that Is covering right on us of do. call That around business prudent long-term what means and are not. cost-plus. a that want we how is have margin our between to of noise But a XXXX us? potential

we're at X.X% again with those best of comfortable A we're to of try do job of we looking can we're X.X% the sure that kind guide looking guide make that to holes Tom? the we guide to all go the a those we're because items. So absolute sort where to is after, assess in narrow are. that business tie to year doing our deep that

Yeah. as win And Mariana, you the good a is, kind other to time while of pipeline that or and going activity point John to over healthy like. a we ramp can amount observe mentioned to it's in respect have the up -- of

to life. is is end any some The other our time of in of covet point factor at work useful

like we XXX% And our natural in we revenue. recompetes. a so We don't. win Unfortunately, have to of falloff

fall the some lost is of gap recompetes gap is so there life kind new either to cycle win program so fill that of And going some or business to a fill also loss. of natural

arithmetic. And I you your help piece with think so that will

Amazing. Great color. Thank you.

Mariana. Thanks,

Mariana. very Thank much, you

Thank you.

of question Josh, Company. The Our go ahead. please Benchmark Sullivan next comes from Josh

is line Your open.

Hey, good morning.

Josh. morning, Good

there. UAS counter mentioned You

of opportunity of highlighting just were the early increasing then guys the competition SkyTracker threat. that? how see market. tactical an how But market the big lot evolving, Ukraine is a talk can you you game that get how in You environment -- to But you the with about do upfront and

leadership acquisition it's thanks. XX out because which one as I there, the leader some operational large footprint. we've counter-UAS that do some we trying for counter-UAS globally, the to been Yeah. We look of really to and right Josh. in all zero share over been with have were call talked And where has you the areas a who moving deployed first Well some was of about information to systems got systems in more Josh, Frankly, recent who federal you has counter-UAS been the protecting most legislation assets. ourselves started tech applaud a counter-UAS of the which truly has X,XXX of the We very that actually. goes. following towards with critical and authorization

that We commercial you look we've step largest also at this that systems. modify X,XXX a is ones the the interest up have legislation XX X. And domain. direction. have Group upgrade those right and from we We continually within is as of And those tracking way because in the X got smaller library are of infrastructure many written, The signals to the are the critical draft and nation state of geolocating at all UAS legislation capabilities we're at if years it's Group go large looking from owners. which

sources and as Those potential power forward. we water markets like. about plants think will go and So the addressable be now

globally. we to there deployed we over So have we volume our out that do systems build see as XXXX continue increased

well. detail. follow-up on And just Got it. photonic a strategy Thank the for then you the as

that pricing get any offering there just to dynamic the model opportunity? you or commercial with to of is As thought penetrate usage more commercial a environment, work

mean, I Yeah. are of have number we we're -- a Josh, contemplating yeah, models that we today.

right work believe going and x the to they're well. right is have gets some software questions Some be know the exquisite be going -- x we're at frankly from the price models have place. to you volume. volume, at we on to right? always of model half earlier of of And solution. right We technical margins the protect But the pricing to we most of the all We as to believe based not going will point. we We're but have those day won't. We the and end some We hardware what believe solution. in

So forward side, going quite inning new a to decade-long the tell be a the and market side. tell how this I we're certain of move market you two. this game the to sense of which that we that is us rate that at for sort up deep in we've to Picking share more is us. can that's right on folks before step marketplace what we're make I long-time. wanted for we're makes X-inning we on a would commercial But bespoke work to completely into and took at a with can going I doing you been that partnered achieve is

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today's thanks call. to listen thank my call. you their Well your like of concludes have today's Webcast and in Thank you and call. for good Tom to help will participation. We'd We on Leckburg that and the to Nadia stay our day. and Okay. many thank who healthy available everyone your know Price or for best dialed you Mutryn, questions, you Dan a follow-up families. and This after George have Please

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