Virgin Galactic (SPCE) 9 May 232023 Q1 Earnings call transcript

Good afternoon. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's First Quarter 2023 Earnings Conference Call. [Operator Instructions]. I'll now turn the call over to Eric Cerny, Vice President of Investor Relations.

you. Thank everyone. afternoon, Good Galactic's XXXX Virgin Conference First to Earnings Quarter Call. Welcome

are call Chief Chief with the Michael Financial me Ahrens, On Doug today Colglazier, and Executive Officer. Officer;

call Doug, prepared will Following Michael and from open remarks the for questions. we

press safe today's are accompany harbor website. see disclaimer. available that the of Relations remarks Slide Investor and X presentation our presentation Our release Please will slide on for our

a statements result, call, During subject assumptions, make are These based may statements. and on we and today's and risks forward-looking as are to uncertainties. expectations current certain

Many from factors on differ could cause actual events this the to materially made forward-looking statements call.

information the uncertainties, please company's more to refer in made these filings factors time from risk For risks SEC time. about to and the

the forward-looking You to whether any information, are events cautioned that to statements as undue new future not during otherwise. and specifically or update a company obligation put this the reliance be statements, may discussed disclaims of call result forward-looking on

non-GAAP we reconciliation information Please of that a also financial refer today's these for call. financial on non-GAAP note metrics. will our release Please to to earnings refer certain

to the With would like Michael, ahead. turn that, Michael. call over please I go to

Good afternoon, our last quarter months progress. on with joining everyone. for We of X that call. ago. have Thank you just within short made significant us spoke And earnings period first we you time,

and our May, saw yesterday, late space to return with announced will for point planned our there. We for you As XX company. we are defining build at the Unity mission from a it

planned June. to beginning our civilian on basis, astronauts be late with opening and access flight XX a We applying space, researchers scientific will Galactic regular for

our fleet followed an agenda development. on update Slide on with commercial line space operations, future our by Turning our X. I'll to start

review who call will model. over and to financial Before turning on our the economic commentary a provide Doug,

the take open to questions. our call we'll your remarks, prepared Following

to X, space So line operations. let's turn commercial Slide

Eve. mothership the testing several to flight that We made Our launch configurations. pylon of team fit Eve with enhancements VMS rate These to flights VMS both modifications our made on upgraded service and where life. validated validation in we flights and Eve's capability in validated including overall ground then increase February, completed solo checks were conducted

the avionics points the On and glide rocket a Test without space the runway. ability the of verified Unity of flight Spaceport the feet power we back America, systems. handling stabilizers, to XX, April for VSS of controls The glide performance glide upgraded our of including the checks highlights up and completed mechanical to need ship. one successfully further Unity system. tests the flight distinctive new vehicle and these conduct horizontal releasing included above the flight functional benefits in to That of phase, flight qualities taking to the XX,XXX many

mission and to will our mark before flight space performed opening the quarter. later provided XX, for are service customer our with Galactic We necessary the for the of return both mission, commercial to assessment late experience way full pilots the and pleased ships and making clear Virgin specialists a X flight with this the XX. vehicles Unity scheduled May, X final next space data our very Unity

first flight Our research the with scientific members planned XX be will for Air a Italian flight late June commercial and Galactic Force. of is

thereafter. XX customers Galactic intervals follow to regular plan on civilian We with research and both flying astronaut

Slide Turning X. to

has As major X we of our shared February, line areas in focus. commercial space

Unity current and VMS ships, a is VSS basis. on Eve first flying our The recurring

space. allow barriers scientific We private access unprecedented are removing researchers citizens and to to

long as fleet, business of of particularly development The term. class over the we growth our ships will future is progressing the the which the space revenue Delta driver profitability be the focus second key and scale

in With our place, we road the XXXX associated fleet the primary suppliers map production high-level with on ships, tooling space for fabrication development the strategy ships. our the building and this shared multiyear beginning focused a required the On parts is of for completing program. designs call, and last delta overview manufacturing

move the Delta begin subassemblies spaceships we the also parts using As into class XXXX, for suppliers. assembly and phase we from our will continue, fabrication anticipate will the

layout XXXX. working assembly phases through of interior the Delta XXXX. supports that are of in support to ship facility time XXXX Phoenix, line on This in continue commercial to facility the and advance deltas. We the first can to be entering expected in design, manufacturing the and operational production fit-out service Arizona, final a operate our of testing is in We

review. program going is Delta Doug share his economics financial the behind in some to compelling of the

returns investing we drive to financial strong deploy profitability. program optionality, to is capital. discipline in that time, we recognize At markets are our this we and be class, strategic our Given today, challenged the see same in us future requires maintain how growth priority this and more Delta and cost exercise in the top the

be As we of call as part programs, And with sequencing his Doug, turn said an before, let's share Doug around and will able various the to to you. have that, we flexibility of the example over remarks. our

Good Michael. Thanks, everyone. afternoon,

financial work driven membership X Operating a current expenses engineering were increase on tied fees. the Slide future We and the the generated million $XXX costs $XX our year period. increase by to the and fleet primarily million prior in The our million first to is for revenue astronaut results quarter. to future in compared period to for Turning fleet. of $XX $XXX,XXX enhancement attributable R&D

the loss and as nonrecurring in and as organizations costs SG&A reported investments prior the as million, We by to million business. year scale to in $XXX prior in compared costs. legal driven in we GAAP increased supply severance primarily chain our $XX $XXX $XX million negative R&D negative $XX other support well net the of was the a year first Adjusted higher by EBITDA driven compared quarter period. million period, primarily million

quarter X. Slide negative to cash $XX first to flow in period the million $XXX negative same in year. Moving the Free last million was compared

equivalents marketable cash in $XXX million cash, securities. sheet remains and balance Our strong with

million of our we part gross million quarter, the aftermarket the of in X.X equity ATM as or issuance program. raised During $XX offering shares through proceeds

We returns. the we've strong To highest balance the profitability sheet, we maintaining Delta and said for end, the class company. see that are committed to the be driver will in prudently investing that growth growth where a while revenue of initiatives often

So detail ships share around and our let's I'll strong turn Slide illustrates additional these return bring will Delta to anticipate ships the that the X, we company. financial that to

attractive margins expect operation seat very X Delta vehicles. We from of our the class

of fly begin space least $XXX,XXX ticketed we a $X.X flight. to we more million for As astronauts to or generate each our expect with seat, per in revenue price recently at

rocket approximately hospitality space for motor costs variable training mothership spaceship, and low relatively for of the $XXX,XXX the and astronauts. have fuel We costs for the for including flight, the

Following incremental ship, the first in development nonrecurring ship cost the costs produce of an of the range Delta the $XX associated be to will to Delta anticipate $XX million with the million. we

associated to passenger exceeding of flights first we $XXX,XXX Delta Assuming amortized were per the ship, see include of costs XXX following the estimate flight, the spaceship cost that expect be a useful approximately least to would if both at XX%. costs we margins spaceship to amortized each to we $XXX,XXX nonrecurring per of the mothership development the mothership, with to and the life flight. Extending analysis,

the payback for is unique it why laser-focused the X be system advantageous so on the strong flight is This production such delivers way, our class, model expected period investment With program. are and the we of spaceflight on progression the cash significant is as we the flow-through scale pursuing return as fleet. a weekly approximately assuming delta associated Delta months, for to another we attractive cadence. this at remain each with Looking incremental ship economics

year As protect our of to sheet. in we drive strategic our spending half forward, balance strong also we're the managing programs our the back

cash third negative we the quarter, million negative cash that For and in and million fourth the quarters, million. $XXX in million $XXX to range anticipate quarter. our we second of free the flow $XXX the per will forecast of negative be $XXX In negative flow to to improve free be range

Clearly, demands flexibility. operational the current environment economic

We are effective levers fortunate that costs. be to can employed have manage to

programs. One adjusting of of various sequence is levers these our the

Eve ships As flight the through period, our has strong of programs. the their the the capability test mothership performance an modification following carry given Delta initial example, to VMS now

capacity Delta is ramp for us leveraging are of future mothership sequence to growth later our planned, spending This than enter of flexibility originally to just increased the drivers. we one example This the our next-generation but while on simultaneously service time manage in where Eve our of fleet. enables to still executing

monitor fulfill to capital strong a are market continue conditions business our committed We to to maintaining order and sheet in priorities. balance

With the Michael call that, comments. some to closing I'll hand for back

of we finally space excitement are build, cusp moment the defining will at company, Thanks, commercial for Doug. be what our line a and operations. continues The to

regular month. are space We flights starting this beginning to

we excellent are production that will We Delta system returns, experience. are best-in-class a economic a astronaut and delivering ships building with deliver

while at management, our vigilant are ensuring with focus programs. same We cost on core continued our being the time,

the progress to industry. available paths to of strong, and forward become company we multiple a have at a profitable vanguard We new as us inspiring

With that, begin questions. the we'll Q&A Operator, to we're ready turn portion the call. of to

[Operator Instructions].

line question the The is first of Greg Jefferies. Konrad from with

evening. Good

you peak HX you terms in to Just next bit. in flow and as mentioned we little we modest the where forward-looking usage that, into where go cash run and down? I see Is flow just HX maybe talk HX, year? then the R&D free should additional the kind we kind we online, in of that information. coming about a of will the you And coming financials? about revenue kind whether appreciate But a rate it see Eve. the of have cash about start, you always Can of with usage, Like improvement think free that, it's talked it as

Thanks, Doug. Greg. This is

in is seeing down. R&D spending are of we in what coming So the terms our really

and completed Eve The and we've around first the with is Unity. that's happening investments the that period associated enhancement thing

so service, much that. now they're we into to moving have so on So spending don't commercial be

of then about the we sequencing fleet. the spending talked the And program future secondly, on

mothership timing, we're spending we is So and opportunity mothership, the new Delta shift first on future. And foremost. on this to which the have program, into the the the the focused then

those you the revenue levers kind So that of rather some larger are asked as about. a the as R&D than see you changing things that of are impact,

through our not engine we level spending we of adjusting we always as guidance giving up while to opportunities past it spending reasonable So may this did an appropriate focused is the we're going forward. company. second is or down toggle half the that And this And growth assume that, see year. as of think on guidance appropriate. I And give the of and that

If in lumps The or spending a down I particular keep But There tooling something as may future. like and for comes be reasonable to levers we foreseeable to can is a continue key quarter. assume needed. we're going up think that's along exercise we have flexibility, the that some some in there. to level

around expectation the on When lot And chain of that's per $XX for Delta, in? then million since just $XX $XX and Delta. past How made, quarters production. supply that you've then a is about much to what $XX obviously, part I production million that X think And to of within amount recurring million? assumed the you million locked the mean

production? locked is Greg, question clarify how Sorry, and for to Could clarity, much me? much you in Happy answer. just just how is for the

Yes.

mean, percentage you chain. of I you into. of the to cost obviously, have then have What supply obviously So reached some do And out fixed the costs. XXX% that there's visibility building

X? does assuming around X So to about have you I costs thinking production. just X mean that get it you are assume -- said you that a capacity I you know fixed year? for Is

to want you take do one? Doug, this

Sure. Yes.

our planning the the materials suppliers. the moving of So with out refining fixed time and are that scoping through it we a point scheduling with way to and today. where And moves the firm give with to based estimates in then it's range estimating what and we're were and we we to basis. the kind price a But we know comfortable and were today able those through process on beginning, quite

gave cost, And NRE So it's to the production the any not ship level. think tied we our The and the mind, development labor we produce right, to one particular think million is we isn't the when per range in we the to then there's about cost. it, way about to for -- incremental particularly the one, each $XX the which first provided. range it is to is you, sensitive $XX volume million, given materials the the

a Phoenix to to ships We'll expect that for handle up volume ramp building volume to a And you that produce of against basis. range on the just first year that. we're the in we clarity, on X the numbers. facility X yearly of But gives matches that expect, that these facility we

Capital The Leshock the question of next from Markets. is Mike with line KeyBanc

guidance at we're past, and on quarters, flexibility example up burn following going any start for that or X we the have It near next ago? months the made But or peak that as you of burn. to the you the the the cash that progress you given I'm you that wanted assume X provided. the guidance In guidance? I you here. talked into afternoon. the peak investment you rate the Good looking appears at you gave Or about any -- rate as some does scheduled cash the thought planned incorporated that and that have -- would flexibility have have,

main thing in sequencing the The changed there that that the is was mothership. of

tooling us about parts of for then and engineering on the allows to phase the and And program, of Delta staging mothership spend Delta each example, peak a you that modeling follows think phases maintain into mothership fabrication. roughly today. and class, on it on program, work in move If is we're of there's class spending the next the you some by that that in level what the kind such an these spending investments then layer way the

on So key say plus the maintaining the I growth is one can time. just those smooth staggering not out have we the about and that top or as XXXX, each This talked would deliverables fundamentally, some spending, allowing staging after bumps that to I minus, peak laying as by they're in talked same be us about right, and it's indicated I other but creating before, it, last in other. engine a so there of

enabled kick with, just us hey, I'll do to now. that what in Michael. is This

you originally, we deltas, would shipped Eve bring can the showing more And the mothership we it modification early flying next-generation when have to with the it Unity capacity through of have So look Unity to Eve, it's the as service, is space fly up fly the time We're as at XXXX. happy came fly. in the Eve have mother flight frequently quite our than with in how program which can and plan far mothership to test program.

to the enough And carry mothership us delta have we so capacity existing program. our within class test through

gave next-generation do delta to program, flight it the the when that then opportunity mothership. ramping don't it the the So fleet. test class need need for sequence we We we're us up

And cash just next so here more what burn going you're and taking through the of our advantage of of that a couple seeing consistent kind is years. opportunity having

are learned could might some potentially and/or looking the over the testing? then flights that class need be And of Delta on Or we've the from technological longer any advancements time Eve term Unity expect few reduce you past? you've as you similar in the process for or years seen testing, Delta past the things do class and there the a that to number of it testing

say, many, what definitely in program much than will Unity, happened I'd a It be over faster which faster, years. you test saw many

in So we test test 'XX to that program and 'XX. in that program start expect conclude

changing, you line technically things so. the keeping we're year-ish outer we're vehicle, shape, of the that past, same. within look, may the the from main us in So have mold the or the a the And heard

the that. system are with a composite We high temp with and moving changing composite

the weight That ability a of we thermal upon in gives the the reduce ship. variety the places, us way change forces manage to

a to things ship a turn across that the All We basis. turns program the that Imagine. avionics confidence development and basis, which will is a generally of give will those across X-month all Unity, flight like take had weekly packages, and to on on our currently make combined which updates learning we've things the test that, able us versus design advantage be of into

program the a roundly -- So year. I constrained test be itself will within think flight but

Matt the Wells of line Akers with from Fargo. The next question is

follow million $XX Delta class wanted to the ship. on the for million up I to cost $XX

a we usually aircraft much the a down I of think is the see there's is little one side then it the learning first less bit then expensive, is and curve. on goes and commercial second aircraft steeply sort more

curve And the you the is learning down cost too? further are is $XX so, that $XX million, kind guess I of million learning So a somewhere on similar like curve? expecting it like of ship, if these? Or

I We've as don't this that the have think generally built ship from a right? a same isn't range be think learning a down it what is And design, we're is far -- scratch curve. the the one. We we're giving too will I flying here. fundamentally building good

being And so a our more advances built. on things would that confidence than far new ship in all that's see of you sheet clean kind

so So have tooling going what the to done, to we the are stay is planning, same. though, that's

piece We feel keeps generally confident they're that, doing. in that same parts the the as

up have doing companies for to adding assemble little And in quickly. those Phoenix down before suppliers to if Qarbon parts I'll that there then and into are in of fairly Phoenix. with primary able in And you Our early, -- subassemblies these call be Bell up They'll and open major dial we but be will actual should get the bit the arrive. those that a subassemblies. that, a we'll Delta will, final with rehearse, in it, up plan facility ourselves and, sophisticated actually

we difference couple processes dial assemble we'll there gate. the be a so start vehicles. of move But bit the And really that, start in that fairly -- flight will to flight expect off be be little then and will side the But as do dialed to so in the those test us time we that our bit time the we're use well to in. first we a vehicles. I as takes with to we into start then we it have that production quicker test Just of little think

about the common think to design? of is to there content -- is sort prior Okay. of makes guess much how the or the that? percentage way of Or parts That sense. I kind is a what

little same with specifics that. common, right? facility very probably line, more same design handling could feathering It's Generally, is the a bit mold we the of same come Well, ship aerodynamic back I generally we the ships changing doing, as we're upgrading are and ability there. materials. systems, What said, turn avionics maintain to fly We're so are the there. general that the systems, mechanical composite systems and outer

So in. those changes are going real the that are

call touch to a, the to system. the with system, have be is are the don't getting with especially, count anything what there. the function I do What material in Qarbon doing process when but know a back have we we that, new want we and I'll is parts change just part through it, we part most we go we the retouched, of go composite

line The question the Cowen. Chen TD is from next of Oliver from

This Phoenix? And on Oliver you for some is time sort Delta progress facility construction Can looking discuss forward in that Are other the major that? to? classes of what's the [indiscernible] with there any Chen. on line you're ahead more of milestones that manufacturing

Sure.

You some rendering it at call built starting saw facility. is I'll as our just tools in in-progress when our facility bring a, well. But the this just construction and to fabricated. call, next of there year, are are be Phoenix a the Probably of we'll timetable outside general to share being photos parts presentation that in

to parts using not & facility Bell Phoenix Bell beginning partnership the and building with designs we're and Orange tools So tools. and doing those here Qarbon knock this out County, are the year. for in We're the Qarbon.

that us will those that fabrication put arrive XXXX. and parts parts and become in XXXX, in with will the In and start subassemblies will us with begin Phoenix into facility continuing, and for Qarbon, subassemblies is while operational Phoenix, being Bell to

that's when that you'll actually up So and see plant operating.

program of up probably and actually pick with go assembly We'll testing flight then to of up their service then America where flight commercial Phoenix, vehicles. will vehicle through into they out Spaceport where the we'll start come those in, XXXX, of in, out used come bring flight into we that have the testing we'll ground continue XXXX, initial leads the early testing. conclude ships. of And and test Phoenix We'll the vehicle that have through a that. we'll testing. and in that couple And Eve then we'll pick And

plan have Okay. to sales. then travel agent those ticket have very for ticket Do sales you trending? sale? been That's your issue helpful. briefly more tickets How And through partner? how Got And those it. just on

. You're welcome,

sales minimal So X-plus up we the have know, you do expect just our have we We've cancellations start XXX we backlog a generally flying. with year held back we as after seen have. that or so to in we and already sales that, process open

So talk then start today with the XX then a Galactic will service, you've basis. about and heard recurring be of we us and will start commercial astronauts civilian on

a go on of expect momentum go group the we following Virtuoso length the clear Galactic sales But and their flights, about, and kind have somebody few eye our right makes when we'll time it we the XX make will and in talking the I'll our get their and with under expect on back now, I momentum, So a towards where call of open would they would I then ahead Galactic the, side as as group a there, get manifest, would flights pushed we belt market will be kind up. it, that you're sales the of little XX easier ahead we're

next from the of with Wolfe The Research. is Myles Walton line question

of more Thanks size costs. side? if you basis, kind operation that the weren't on you that those couple could those, on I a operations for you of items A the flight variable, the in on can out the per-fleet lay the have maintenance, you I insurance relative some maybe what's of was fixed. were curious, basis, think here, ground a variable on But just All of thinking the on economics. economics maybe the you is XXX,XXX to is X ground touch color

There's multiple pieces This Doug. there. is

did So the insurance cost. actually, that in we include

there but relative included. other costs that's the fairly So to There's that's in $XXX,XXX. small components,

contribution of fixed for other outlining to our the similar -- right, we and variable operations you costs, cost. terms ground margin, are what something the after for In a is

that our such costs it's our and fixed the towards one maintaining So the of contribution would larger ground costs cadence. company as be flight operations, which running

on something we yet have team cost that more you visibility that flight. that get But be terms that scale, scale practice be will we'll get we better have will and That's we in focused is we getting of lay would for as that and but the estimates, efficient economies into. be of efficiency We more and what our per out what there. didn't

I we'll it's think on out but be of to we something there, that best put So focused make it's we to premature out little get sure flight. the can each a economics

And variable, Doug, what as of maybe more maintenance, you that's about think I would but it fixed. think

that put as in They the well. fixed cost Yes.

think our So of it Spaceport. as all the with costs associated

our we flight of So have fixed. we our are or all if out things, there, that teams day on have would a and not. technical we have that and are be maintenance costs missions flight team, a there space operations and support crew fundamentally Those the these which

but forward. that manage But those discussion. ones in looked I they it the as are we at important we So did bucket go put for to way, fixed this

your for you still commercial Okay. mean? to next And think, October. years? as in it dual how to mandates high-level doesn't gets operating does do if impact around FAA sort I Michael, then plan renewed, couple over of spaceflight, sort of it your get renewed, what a human the maybe mandate of expires one, the any expectation anticipate What's And that

Are period, you talking Myles? the learning

spaceflight. they that promote the as safety have ensure Yes, to well human both as

Right.

operating our talking here. you're Just for clarity, not licenses

No, not licenses, FAA... just your operating

Yes.

all program through think the way. our control I at along We've step right. you the each FAA partnered with this this the from having the of way foundation mission So the in know FAA very

of say gone to that typically, we industry. with commercial I'd that with the with Is the lot on -- that's shorthand, the with learning review FAA, a is So there's expire, space. period government,

along part conversations the are those way. of We

our space to continuing learn. early standpoint, we partners and it's are industry of in commercial our obviously, and From course, other

However, in FAA regards. chooses will government just the wherever the our to operation and that, whether we those chooses feel go be to fine continuing go we with

an the So our those I dialogues Safety on. maintain Moses, for are good Mike Chair are going that President, Committee active we think on voice, ComStack, really and is

the space to of we'll evolving I how as commercial way it business it way but model industry, an our part I see as see really, -- grow. and or in important one don't the an other,

line question next from Morgan of the with is The Liwag Instructions]. Stanley. [Operator Kristine

off XX But XX could know been that and have questions I Delta Unity, month, you the see today, to between with How now on month? to do be on Unity. test Unity to your start make tests. it's focused from you my complete compared encouraging and these this last I anticipate follow-up any lot Maybe test expectations? Unity question. And might have a data with tweaks of XX later very Unity the

question, the high is of And company proud all Unity. for excited for and really for Kristine. continues flights. And momentum Thanks we're very course, build and these to in the

flight I where important an flight time So the it glide validating it was a -- us, but changes we was been were for call that had made.

as It So we were thought. did expecting we we the thought. flight to as perform just perform

very from us, to data, giving a we for us that came analyze made it us the flight so -- was validating successful -- data clean. And the through

Unity technical weeks operations or dialed pretty procedures. the their And ourselves we're is through this into point, cleared only team XX this away move the so forward. now moving to we've much what's So is X.X happening At flight. from

add level So here there. between planning we a and to nothing at are materiality of

helpful really a And That's Great. Delta. on color. follow-up then few questions

$XX you when to at So to about million get unit talked the what full of had delta? production? this about you've of when it years Is anticipate few after cost? $XX million, are million production cost to full Or expected you year we $XX of delta talking Is after closer XXXX that a a units? do million to recurring a few to of $XX

outer to not terms of on earlier about changes ship, the with helps of of clean Kristine. made dramatic some learning and part manufacture things to Michael so This we're this we we making Doug. sheet Yes, curve. and haven't in how line, Thanks, a mold the refinements touched such paper. is like us And which the starting

so other I same surprises. the as is using of of databases, the with might process partner through so practical mention eliminate and streamline as thing we manufacturing working really The that to all possible that much are suppliers, our the we're we all technologies leveraging latest digital side

in So help much things faster have again, that go these than us are we past. the

So the that, be expect long where cycle it types see too costs. those to of shouldn't we manufacturing into

be a put we we'd that And benefits curve might learning we've be the on much in before. expect. So hitting short expect I earlier faster ways to but in. number been you a otherwise cycle wouldn't it, than much than specific

do Yes, more well rate as vehicles learning. X ramp-up shift learning right? faster you first should program, embedded effort, run kind a I'm I we'll of those. then of a much our into will XXXX, be the in out, in sure test flight that before think which be on And

really helpful. conversations partnership suppliers of arise? the sharing how your And cost in Is component production, as suppliers? with a partners of overruns shared and that matures, expecting you manage Delta contract they for the cost there are with to That's your or with that terms should your risk

risk There Yes. is contracts. built the sharing into

right, if penalties So are it ahead, things behind, for both there's that. running them. running works benefits ways, that they're If

it a arrangement. So yes, in risk-sharing we're together with

for one. you I nonrecurring one sneak could you last On provide dollar the that more Delta, annual program? costs, engineering the can If on anticipate Great. color spend

entirety. its in quantified So we haven't that

that I it just think best about. it's of that talked we've in think of terms cash to flow

we're envelope we've our You can the there. total to the our at bulk R&D But still going out comfortable working spend. we everybody, we're something of in cost envelope. date, be spending that going that to through forward given inside NRE and that a million with That's put That's you. it see but haven't fitting R&D $XXX

your day. the concludes session. today's That that, conference Thank conclude you today's call. we Q&A for rest enjoy participation. Thank your also will With Please of you.