Penguin Solutions (PENG) 5 Apr 232023 Q2 Earnings call transcript

Good afternoon. Thank you for attending today, the SMART Global Holdings, Second Quarter Fiscal 2023 Earnings Call. My name is Bethany and I will be the moderator for today’s call. All lines will be muted during the presentation portion of the call, with an opportunity for questions-and-answers at the end. [Operator Instructions].

to with conference SMART like host to now Schmidt, Suzanne Global. would pass over the our I Please go ahead.

and SGH’s Thank you, on call us you for to operator. Good afternoon, today’s and earnings XXXX quarter fiscal second thank joining webcast results. discuss conference

today call Chief Adams, Operating Mark Pacheco, Financial Officer. Executive Rizvi, and Ken are Chief Jack Chief the On Officer; Officer;

you the section You call on this throughout can release of website. for most press our for the find to the and current accompanying the to We company. statements I use like the also quarter note to the encourage would presentation. release Investor site forward-looking slide press everybody read Relations go information on presentation call of in the to earnings remind included and that the is the

certain differ the forward-looking company’s present today may that that statements events note actual materially. may that made of or are constitute these statements results expectations the and statements Please and

measures. both release. or measures We to superior discuss for when GAAP encourage will GAAP in not to substitute is A be measures you in Non-GAAP should included our also performance. all of results. reconciliation GAAP from, a analyzing measures press consider considered non-GAAP the We non-GAAP isolation as to today’s and our financial

And Adams, the with that, call let me Mark Mark? CEO. turn over to

thank Thanks, Suzanne, all you for and joining us.

fiscal Our team at what in XXXX, of been our solid has challenging results quarter SGH environment. delivered second a macroeconomic in

review our detail, in of a the segments. more that out financials I'd review before the few will in these our of turning times demonstrate business to Ken of like highlights While each a like resilience to call

operations cash $X.XX million share million. QX of high range end sales exited equivalents. $XXX in our exceeded strong from XX.X%, SGH including in $XXX and achieved of the excess gross cash of record balance million non-GAAP in sheet, which and the generated $XXX flow a and of quarter earnings with on cash guidance strong per We non-GAAP of margins

While throughout customer SGH our continues to successfully believe strong not well expertise, headwinds, extensive disciplined will immune relationships, model I execute near With and cycle. SGH manufacturing these sheet, navigate the operating to term challenges. market deep balance

believe Longer returns are AI, tied Storage Analytics, for secular XG, is our multiple to Machine attractive growth as and including business Specially and tailwinds, Learning, we term, positioned we Data well Enterprise Lighting.

each and comprised software me computing, Solutions hardware, of is business and let AI at design, Now, Technology we in with availability which review on-premise, high for edge. brands, of IPS, services our the performance cloud applications Starting Penguin and the our and Stratus manufacture lines. deploy and high

quarter we of In had $XXX going ago excluding QX more record reinforcing than IPS another million, which are of the by were Technologies, and including XXX% sales, Stratus SGH the up SGH. QX transformation Stratus. IPS XX% quarter sales at sales doubled versus through at year total represented

SGH, revenues gross part ahead performed given transaction. As margins the of we time Technologies Stratus of and has very announced by well guidance with the the

value more more higher to the base, addition year stream. in of the the more to Stratus, This than stable ago highlights sales doubled ability our services a IPS With of portion period. revenue margin, offer our from customer resulting

the compute the QX two node recognition National at ignition X,XXX system the to breakthrough see a recent Labs. based Lawrence Jade that were to receive fusion Xeon largest is world's one of Computing During Livermore as nuclear we Penguin Intel System, open amongst based pleased supercomputers platform power installations,

effort. part win proud is a to energy This was historic consumed. an time that is reaction future was fusion insights we more that artificial into the the this of and important provides fusion are This produced be energy, of by than clean, first

recognized with category. in Award the Edge Product Magazines fiscal during Processing Stratus Breakthrough Also QX, Computing was XXXX

which a across and fault-tolerance enables zero Stratus it's virtualization, offering generation Edge multiple second application segments, one in to for automated of in industrial Platform offers easy edge. solutions industry's system digital the built ztC secure only transformation highly an Computing Our install touch, the and design and ruggedized

about to in a support IPS deployment coming Nonetheless, on over lumpy As bullish remain significant our With needs on-premise, cycle customers' can the that due expand IPS prior our customer and we the can to engagements. we to and installations. growth the for customer larger Solutions at together, sales this our has calls, breadth compute of ability the Stratus edge. Penguin term, be longer drivers cloud segment portfolio have and noted see mid

Data We are still Analytics. in the early AI, and Machine Learning innings of

enterprise and system deployment design Given growth. large believe our term long years XX positioned we to with we capture working expertise, customers, over of well are

LED turning to LEDs Cree brand Now optimized gaming and lighting, display, video outdoor Solutions lighting. the and for under which produces architectural application Group, specialty horticulture, operates our screens, LED

demand which $XX For the levels. quarter of XXXX, due soft solution $X.XX fiscal or million continued down second LED stemming working current environment, sales the challenges suppressed was as from inventory sales. of customers Cree economic to LED totaled faced ongoing SGH further overall

tightly Given controls and such on manage diligently team to focused marketing navigate near-term business conditions, the challenges. is cost the

While invest strengthen being customer a mindful and and focused innovation. of position spending, as leader Cree LED this continues to

displays During the airport displays roadway quarter color format full LED high Cree such signs. new LED as brightness stadium targeted three for and second introduced video large signs,

with require rating, high the CRI High applications Efficiency, announced that high index color its light. it highest indoor of lighting industry's makes release commercial which for the LEDs, XLamp ideal rendering operating Additionally, ProX quality the team or new temperature

touch to most starting be to outsourced and modestly up customer on our has revenue expect QX. us recent continued of sector. demand that believe leadership fiscal customer We well in innovation in signs improvement recovery in are see model and we for Based positioned LED points, manufacturing our the

of lower the and global which enterprise, sales memory for Module to at Memory Shifting demand primarily were sales. Memory Brazil mobile Memory, total Solutions and and latter our Brazil $XXX PCs due is impacting significantly Sales to phones, in worldwide decline our on SGH continued Memory, sequentially, Specialty end million based Business. the or pricing the business. made a and Overall, up in XX% our both Group is of focused industrial federal two markets, came QX businesses;

Focusing Memory Specialty slightly flash related weakness our sales Business, solutions DRAM of from levels. offset quarter in first related sales our Higher were business. by first on were down the our

DRAM business continued due to challenged Our a was level pricing downward in key higher at pressure inventory of a accounts. and few

meet data of DRAM we longer memory and around focused business As term CXL. our customers. part Compute primarily with in remain our DDRX strength into to of desired Express requirements of intelligent an center, memory CXL Link strategy our combining enterprise specialty grow growth to on the our applications or revenues, the plays controller

will an increase new the as feature sets opportunity of increase share the for allows memory our a which that memory We technology with our Solutions. the Specialty the memory be to the Memory is along CXL ability interface believe servers. factors capacity, expansion well result TAM, in proliferation should as of and among form

already drives our our mobile environment customer Based are and Memory we from sales PCs feel and quarters. will we DDRX In phones. continue growth SSDs, Brazil on or that to in and what stabilize our XG our Brazil a Business, the starting in drive latest challenging coming see pressure for recovery over solid-state to is downward interactions, applications believe

of different operate continued Chip value materials model chips business we our for as memory, as well. incorporate part bill the memory add within and manufacturers, the customers. memory our traditional Unlike the Technology we semiconductor then to have above headwinds of the is Despite business Core

Therefore, demonstrated for our was which as been QX. our XX% have margin results stable for segment operating relatively approximately our by business, memory

lowering steps SGHs wafer being a that reducing optimistic the addition, balance suppliers, effect ultimately taken are supply have will In of output a positive we business. achieve as such larger and memory recovery memory expenditure better the selectively demand by on and capital

over Ken. review and of here it a QX to stop next our for performance detailed for and hand quarter. our Ken I'll financial guidance more

our GAAP our Thanks non-GAAP my earnings which release will results, Mark. focus reconciled are I to in on tables. remarks

let me to Now, XXXX fiscal our second results. quarter turn

the reported as segment, record our well income the helped record we and $XX on strength approximately operating discipline as both revenues QX, Despite of segment quarter macro-economic continued in operational a by million, of $XXX million. solid had which IPS of headwinds,

came guidance the end the Total revenues was quarter, non-GAAP earnings per second share in $XXX a and XX.X%, range. SGH our of our diluted the high gross high end also above margin Non-GAAP above for at were range. of $X.XX million record guidance

of SGH by Last overall providing revenue breakdown the our and services. quarter, we began products

As implementation a in logistics revenue our point well includes services reminder, longer services, as term as time such services. as services and

$XX $XX million. In acquired of overall million in quarter, revenue the services beginning QX ago which year from were and we year the product helped inclusion fiscal of this revenues Technologies, in up Stratus million, the by $XXX our totaled

and record memory, a for first of $XXX Memory for for represents than as follows: translates revenues quarter our XX% IPS, LED unit Second This was and had XX% and sales. million IPS $XXX IPS sales a million, by for XX% more time $XX million. of LED into had total approximately mix XX% the business at

SGH quarter, and the for Computing. IPS Non-GAAP $XX.X $XX.X Penguin ago helped quarter Stratus expenses higher in the second for of the by was million were a of QX down million, from quarter XX% XXXX. gross XX.X%, in year from margin record from up Non-GAAP first within in inclusion the sales operating

the the Operating cost due quarter, were due year inclusion however expenses expenses in up were to from million the Stratus. Operating quarter prior initiatives. of containment down to from primarily $XX.X ago

quarter to quarter. second XXXX from $X year XXXX million Brazil, ago In million first XXXX. from addition, of in is which of in provide in million benefits quarter expenses approximately in down the of financial the third $X.X in quarter of expected down credits million $X from our operating $X benefited credit in the This was and

year the XX% quarter with Non-GAAP the share $X.XX year to sales second XXXX $XX the or or compared diluted million ago earnings was sales ago quarter. of per $XX for per $X.XX, XXXX quarter. for second million of Adjusted XX% in in quarter was of the compared share of EBITDA

Now sheet highlight. turning balance to

compared last and for For of up with quarter, primarily receivables net account IPS. our working $XXX days, totaled million, timing from due XX at days sales last outstanding $XXX to Day quarter. in three million came capital, invoicing collections the

down at prior call of by of last million The during the second quarter. inventory quarter, $XXX outlined shipments as our the higher second primarily driven of $XXX earnings from million our was totaled decrease IPS the end levels in the Inventory at quarter. end in

net million recognize respectively services, net meaning related gross as profit between reminder, and for the the that second agent is in revenue were sales on Xx practice, the past sold X.Xx and goods the $XXX versus and accounts and inventory quarter prior turns on a Inventory in cost basis, with outstanding an which are to is a logistics quarter, calculated net the accounted revenue. million our services were only Consistent basis, on for which receivable, turnover and $XXX quarter. days logistic of second difference we gross as

and equivalents million $XX Cash quarter, at the up end the of second quarter. $XXX million million cash of end with totaled compared the prior the $XXX at

with totaled Second quarter activities operating compared million from $XX flows quarter. prior of $XXX cash cash activities for used in operating the million,

we from consideration. the due note As $XXX.X cash in cash this activities given the a of Cree a LED in accounted reminder, and flow, operating to it for million our was majority first the quarter, We pre-payment out operating contingent primarily earn used acquisition. a

we XXXX. million authorization spending shares shares January approximately April the To-date, executed approximately quarter, repurchased with share inclusive million $XX of aggregate. a $XX in million second of million quarter, since the In XXXX, million X.X our $X during spent convertible in repurchasing repurchase of aggregate, in exchange $XX connection we've approximately under XXX,XXX in

expenditures of capital tracking you of of million. balance million amount some million second Capital with sheet depreciation privately the exchange convertible quarter were notes in negotiated was of $X $XXX XXXX in our XXXX, the our those agreements holders. and depreciation, strengthened for notes. second our through exchanged new In $XX.X and principal We XXXX note quarter, convertible expenditures For we convertible further

of notes. a to as have coupon X% the as a compared compared notes convertible X.XX% to for conversion of for and XXXX new price the XXXX The lower notes, slightly XXXX $XX.XX higher $XX.XX slightly

economically protected per which also us protects per higher to to call, they share. addition, up the $XX.XX have XXXX whereas notes cap share, up economically are $XX.XX In a

XXXX Now, fiscal let to third me quarter guidance. turn our

for revenues XXXX of that third the expect or million $XX at the We midpoint will be approximately quarter plus $XXX minus million.

incorporates revenues. the IPS quarter for discussed we've guidance sequential prior third the calls, we lower For as on assumptions: expect following Our

from improvement levels from our modest a For memory, and LED second see stabilizing we the for quarter quarter. expect in second revenues business we

minus be is X%. to gross GAAP minus Our approximately is at Non-GAAP midpoint, plus third the X%. be margin the XX% for margin expected or quarter approximately expected the the for plus to gross at third or midpoint, XX% quarter

to expected consistent million Our or expenses third quarter the non-GAAP prior is $X the approximately quarter. be for minus $XX operating million, plus with

amortization expected On non-GAAP be earnings to basis, plus minus the share expect $X.XX. third minus for earnings based diluted debt approximately $X.XX. or asset $X.XX excluding is compensation per discount quarter or approximately be share GAAP we $X.XX adjustments other per expense, expense, share negative diluted a intangible and will plus

and is quarter quarter Our cash in XX a to share non-GAAP expected GAAP third of were diluted for to expected price, $XX million shares on and for the be approximately stock million. expenditures current third be $XX million to accounts the the range based capital

Our XXXX environment, is which supply global the headwinds of the chain on forecast current ongoing macroeconomic for third quarter contemplates the constraints. and based

also manner to operations to in invest prudent a continuing term challenging long navigate our We continue we our environment, manage as in while a growth.

in reconciliation details. tables our section information financial refer of measure GAAP release our Please to non-GAAP further earnings non-GAAP for to and

let it to back that, over comments for prior turn Q&A. And Mark with to few me a

in Despite competitive achieve non-GAAP uncertainty, economic testament we include machine to To our record remain of our end our times, global QX. sheet the I during SGH these we specialty lighting. strengthen data our EPS our their thank balance team. storage positioning turbulent global exceed and about serve, for learning, AI, XG, the want margins, a Ken. efforts enterprise and which guidance near in team at markets is optimistic the to execution term gross Thanks, analytics,

we With for are that ready operator, Q&A. now

Instructions] with go from comes Thank you. of Kevin Our Please [Operator question the Cassidy line Rosenblatt. ahead. first

question. Thank you my taking for Hi!

know split doing good you better us can give memory news, the be and more the how detail brazil solutions they just or and both stabilizing than that's on a you little would other? very specialty the is have Are between stabilizing, memory? memory that one We equally

One line. speakers now have moment while the back the speakers on reconnect. the We

can hear Kevin! you about Sorry that. Hopefully Hey Mark.

have here. technical some difficulties We

your Mark question and or answer – but question your again Ken, again? You have can you ask

Sure.

to in the the So is or it's Is I and solutions. to memory asking is better memory news it just know hear mostly great doing that stabilizing, was just both and Its the how brazil, both for details wanted the I you stabilized? on know, split stabilization? specialty specialty that it

the just Kevin. for feels price more it be It business. Thanks patience. out we're what kind kind demand Kevin it’s question, the stabilizing. Thanks the of bottom your and a for – side seen to of of bouncing feels like your bottoming side Where we've on the like appears pricing around on

get as the think little wise, to and again, that hard seeing optimistic timing are taken to such as such, I in QX, larger out And a some probably and think It's so, years dating supply/demand call you period, pretty an but seeing recovery memory, better we some stability back heard a steps hopefully been of there's unprecedented of in announcements we're the being in business. we're forthcoming. QX, a semi recent about place, or from the play that is know as you've balance to XX the bit guys more kind it’s of

a telegraphing I follow-up as IPS business, was this second beyond a building it third the quarter? you what visibility? as clearly guiding you still there’s have quarter, seeing Do as are is backlog you’ve the on you're wanted been since to the getting year that just note out a weak, for lower fiscal of And visibility low half beyond but that and or far Okay. third

that's way a think good of it. putting I

up the of our end process are ’XX. year heading We into towards fiscal in of building the our fiscal backlog

the term, IPS. market good machine earlier, AI in on likes analytics As learning, and markets – growth data the know for you are I did the environment long the they commented tailwinds being

or XX% growth plus off know course coming range. of You in that three years we're minus of of

know – the going the something business money, it's two things quarter, we're for we're April of and of income making now, right wasn't we're ago in One a incredible turnaround. in middle to an you that XX% so operating like years report this been think I

the is budget say their think but and sight manage in for of middle just enterprise are there I would be know don't how yet know process, We good don't April I just line caution process. we you fiscal we us, in would ‘XX. the a year going one to of on will it's XXXX, kind as But that budgets of have say

be you the to as little that to so make mid a QX. – might we get building can just us kind fall it of general, budgets feel for get the and But just kind mid-summer customer we to engagement in normally business, early into too visibility a know good, number on So in the again, our this to that But we backlog of set call is speak. and in want good path, the sure tap is we optimistic. process early approach we to

Okay, thank you.

you. Thank

go next Our from Brian question of Stifel. the Please line Chin with comes ahead.

guys know of bit Good faint. hear kind there! afternoon. Hi me Can I okay? you that it’s a little

we Yeah you Brian, hear hear can you. us? Can

got I've big end in big curious, clear pretty yeah, also I'm quarter, pretty market sequential a over in memory that memory, you, thanks. business, memory February pricing decline the also big on although the especially the decline pretty Yes, Yeah, a period. a

that's I'm if event, declines headwind Talk] reduced of specialty is the a So your plus pass-through of prices, the on to business, lower I that's put that curious, seeing? ASP to [Cross of do lose terms that memory memory you're in part real of momentum, the right start time part of particularly the guess way kind if it.

answer we the it, Yeah, have. exposure let so me Brian

where we inventory six that. for to They So ASP’s it's move, to so and of both there some carry is the typically to fairly balance on in and four that, are exposure. memory, sheet bad, of our neighborhood weeks limited on five, depending good but four

memory what and value components, memory know the our at our the various pricing is look for around customers pass-through, the most especially therefore specialty segment, a for you piece add really part when of and that is more specific the But work it's that's segment. we part business, saw of why operating with in customers for that provide and us. applications, QX margin performance the memory the top on of it's the reason overall that also our strong those from And you

in we So has year-over-year fairly quarter the looked income even testament you is a remained strength versus on the ago though which business quarterly segment. specialty we've and the that a seen how or revenues overall percent healthy, op the still results, of operate, some headwinds year the to if memory

yes, that guys had to think you that's downturn. that, the affects memory you a of kind than point out, I suppliers. differently And always some how guys Yes, helpful of course. It of maybe

to In going terms is of terms you second said a of your half of the – XX%. IPS sequential to of kind loaded. gross better first drive or margin gross I'm curious physical half to second in went the within it and most mix consistently to IPS sort margins IPS and more do in guide the XQ the revenue looks you momentum being be see from business, versus that about little what bit half in physical fiscal nearly of And how sustaining decline outlook? kind the revenue relative of not what like

I’ll take of Brian. the that, first part

to engage boost initiative the we of margins, talked is our with. we've by at lower ad a who to managed play. in commitment looking not to of our revenue only kind part past, up that and about value customers services provide We're driven As not revenues we're

this services, to and commented business business, solutions stable you really to systems with margin strong. the we continues and part strong services, profile when be and be continues think complement gross as solutions, on relatively And software our of the bundled of it we a

what's kind us. for driving that's So of it

our on we discipline to value revenue, really to So it’s solutions base. a not focus but customer just on bring really add that focus been

we at as margins portion Mark very that in non-GAAP healthy gross and basis. XX.X% services the QX, XX% down that at Brian, the we and of is coming A lot large guidance margins big and strength the IPS just had where QX, even that a solution you revenues just though our sales on we a services, what in even And the combination driven of look we had provided by record at guidance, remain of still within component. mentioned that have

having the a can always to about or in hardware is sales going more due to the been terms around seen the and able margins what that over lumpiness in maintain primarily couple bit, is but there's Now we be centric move mix, think talked part these we've you've which IPS. last overall of quarters I hardware some margins services of quarters, to that focused around that

occurs quickly kind you inventory on of since and mentioned Maybe have sort that much spoke down pretty can that to channel-in about channel-out, that in recovery grow terms recovery that At you you of in with you drawn just there. market. you this think channel LEDs, stage allowing versus whatever and is of demand

think I spot Yeah think, I Brian that's on.

burn quarters look about at over in it cycle, to in if where we takes channel. typically we two to if two quarters down a you are in the last that inventory and it quarters So talked ago of the three at that the it the neighborhood couple look of you

that two to inventory seen probably We've burned close channel. the quarters. last million down the $XX We've in of over

is So that the the sell-through. that less means than sell-in

into start at and least of starting to environment look so as get but revenues a QX. we're where QX, There to levels, we demand, environment see to and and at an equal normalized a a we our head revenue be little demand we bit back end should back channel seeing more we could burn, are uptick stabilization. to As

to revenues good which expecting up is modestly from QX levels, sign. We’re be a

you. Great, thank

Thank you.

question is Sidney Bank. Ho Deutsche Please ahead. next Our of go line from with the

questions. Thank couple a of Maybe you.

What is mix XX/XX. that, are forward last changed year? part as IPS on First and software click maybe I your mix are the IPS guys second of what ago you side, for XX%. talking and double about think services you the about the my being back going on you is math right, or versus is can XX/XX it and you half quarter now, thinking it’s the it's guys view highlight half How is first guess of about the maybe quarter If lower I services talk about or half software kind like software. of a XX% quarter. this has

Sydney, thanks so the Yeah, question, Ken. it's for

to In to that number half IPS for back the half QX think still we year I and terms half going first where at We that the that more strength years half ago. specifically. great was it although a of still the for the highlight second loaded business especially if of a of in was projects in tried as year to had IPS, two the fact is QX look of be continued front of range, true, relative year, you the and or to year that we looked a relative

There QX On are sometimes a quarter there's classify portion mentioned we levels, what a services are year, as like beyond adjusted be more the and is in where visibility, I from call there we as and would is up that even some point as I components. services more to point-in-time piece, that's time the services, designed. that as have overall so of last can that, had two services it those what services our services ongoing then pick. services and Implementation

look Now higher a levels, be if will in to that figures, a me, expect at versus potentially portion similar of bit would dollar little services I where terms QX he of in range in QX. be QX as we QX, that asked

opportunity. DDRX DDRX. Maybe in is standard timing the a ramp maybe versus Okay, that's a switching now terms super about What to your little expectation talk is gear of guys – of helpful. bit you

DDRX being some you Could timeline those you it maybe. have where mid ’XX. timeline And of memory the the similar some reminders memory in be are Thanks. think about I different supplies talking versus strength crossover guys. see there the the or than manufacturers a maybe calendar of

for the thanks question. And

little I that of think and so on businesses, edge. kind some And late think to right? consumer the a timeframe similar dependent actually mid that then speak we've see Brazil, think got less talked in it's to focused. we We'll by it's timeframe, ’XX We similar. business, you our about. leading of in specialty more bit large, the two

that We of fair existing now legacy have supply traditional on we of telecommunications some solutions an of of more and a obviously solutions technology then the current networking amount or continuity want, some platform product. legacy have people

leading have to So specialty on bit a less I'd DDRX, the consumer middle is timeframes And year be on calendar ’XX. the dependent we offerings of talked being edge you more probably out will in Brazil around more although going say focused little about. is prevalent

great Okay, thanks.

Thank Instructions]. you. [Operator

comes line next Nick ahead. Needham. the from question Doyle Our of with Please go

Hi! China how it demand on may for to business. that Nick kind you're maybe situation, if Gill. saying inventory outlook. you're signals, be increase. and that ask related This about expand that's of the kind but could I wondering your specific was you wanted to see the is some now of any there, if to contributing to Brian maybe Raji bottoming about I you of on sequential to Doyle a think Great LED question kind spoke

in more signals combination come to that way us also again, is have a QX highlighted. Yeah, and in in, are comment there's on this. customer a starting giving that's Yeah, demand business. that certainly I'd those they're I behaving a things they Ken the of seen you The say business two showing channel increase. And have visibility modest for we but yet encouragement a some confidence direct more in for think

Okay. a be kind would for inventory business. you timeline the the any there channel of great. And expand Yeah, bit Memory on could

manufacturers look minus or And just the that business primarily XX% related so we selling or it if contract inventory the we’re probably LED limited real about we have either business. so do LED comprises exposure. had to channel don't per have specific the OEMs the to a this and – se. we’re directly at of that know exposure is very either we exposure the to Yeah, LED you the The too. the that’s of memory Many just business times business, area really the plus distribution or

Thank time. There currently waiting questions I Adams for to remarks. back this are to no closing at you. like more any would the Mark conference pass

thank joining Thank for and all you today. you,

nature resilient the to at continue outset, our million business the very $XXXX the non-GAAP over mentioned with the and record alluded the gross in cash of margins. we Ken that quarter operate As we business, generating to well,

bullish and be our the and further to continue of growth to expanding we We look we forward business on secular markets tailwinds the the future. serve Thank you. in

your today's rest concludes call. I you enjoy hope That the conference of day. all

now may your You lines. disconnect