Iec Electronics (IEC) 9 May 212021 Q2 Earnings call transcript

Greetings, and welcome to IEC Electronics' Second Quarter 2021 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Ms. Jen Belodeau of IMS. you. Thank

begin. may You

calling for in you today. Thank

call and CEO; the this morning, President Schlarbaum, Jeff have and we On Tom CFO. Barbato,

XXK, the expects statements prospects, that read call, statements risks I revenues, get statements events, except are Securities that we initiatives, or deemed similar this whether a operations, turn ahead, This any Please results and what future of regarding to started, would required undertakes and or call is the of obligation forward-looking to, guidance to than conference company's are expressed but like the update statement. and Jeff but implied occur, recent may or these forward-looking no call future safe over sales, are results, The statements. actual with quarterly believes, company's now the most certain issued but other call backlog, events. or be uncertainties by during or may correct on and its and describes the number Specific a form Before future company's Schlarbaum. reflect those and reports limited on statements financial by and statements, annual operating company and go immediately as set company statements. accuracy contains dependent release business form current as or information, result results, harbor other forward-looking such to risks forward-looking of expectations based the forth of future are reports will statements a to when not include, in uncertainties and law. these the XXQ, I otherwise, or earnings be to not Exchange to that fact, as anticipates cause include, company's limited report moment statements this Jeff. and take not strategic the The concerning achievements These the capacities different all upon will ultimate Commission. other capabilities new be it performance, in filed on before as of publicly historical to, made any rather

Thank good everyone. finds everyone person our for of we're and seeing kids, hope and number in and overall Great. how continuing this COVID-XX encouraging businesses I vaccines reopen, improve. you, obvious It's more activity And widely it's have to returning more Jen. morning, greater certainly to become call the healthy economic learning safe. increasingly see administered, a classroom that

maintain days As into we experience supplier minimal from create observe whereby workforce weekly, staffs, adopting the these pandemic to to reduced greater to everyone but bringing to and we the certainly continue office adapting on workforce a measures. we saw our staggered in-person density previously established in impacts on QX, And customer activities. we fiscal as our we impacts COVID-XX a steady IEC are while many by our basis, own participation protocols are approach improvements, in-office schools, administrative similar macro at

quarters. the portfolio already occasional in contributed to the we that pleased months from customers report and the believe industry worth of awards. Despite past. these to it's customer have some new partners, expecting I'm our new far meetings, they some which to levels customer While expected impressive delays, continued complementing we upcoming leading in logos to add of reduced are of delays, than cases are visits timing global still our business some and more the We slowed been noting, number modest our less we in a have seeing face-to-face facilities greater of are to down

raw materials, resins effects broad-based the worth and like is even situation, as chain utilize. noting that on current which having supply building components we basic is for the those some of like electronic item materials items plastics, global Another such

still of I'm sure challenges their top lower cited ability the not the past. products, in at negatively component signaled everyone we've that challenges to this they but logistical storms future. not and meet that ongoing sure, they has to the already Suez for announcement, I'm example, most which recently seen they're demands resulting quarters, For from read of US, but expecting earnings demand for levels foreseeable Apple's saw winter impact air earlier Layered the travel, shortages shipping on the like we Canal, are delays creating unprecedented are recent logistical in in of their those where one

with IEC While to customers without risks, collaboratively of continue stream products it its supply we to mission uninterrupted essential challenges an mitigate these to customers be and to has our the continued to lifesaving critical work won't serve.

quarterly achieving past, we've in of As $XX in our levels said higher increasingly the set revenues. sights of have we've targeted million our on next milestone and revenue

of higher the quarterly complex scaled $XX That We headwinds, IEC's this by remediate many consecutive the quarterly a ability million large-scale above effectively operate a XX X.X%. In second QX that an to ability of have prevented was this gives believe fiscal to challenges revenues year-over-year targeted revenue represent witness unusually in the the complex XX had from goal. team challenges aforementioned the over the And We above for represents given million, of of most programs quarter level ramp million were revenue the our to we received, despite goal. our fourth the issues. strengthened deliver Despite some newer from revenues we technical great achievement. increase satisfaction QX, our collaboration skilled internally these our highly to me but we've experienced experienced, between said, at of million partnerships which here solid been level. our infrastructure Revenues quarter up for and XX.X in IEC, which we have us X we our our at quarter to it industry. high technical technically deliberately of believe however, are our related achieving this, customers feedback some savvy

was gross at last which for this our at delays. XXXX, were margin gross result conversion a was was quarter. of lower As encountered time margins the look second our X.X% in these of another performance, recent level coincidentally, not we conversion quarter significant the fiscal where levels, the expected If first than quarter we

in XXXX the XXXX years quarters, of more levels. were to fact, industry of Given margin levels gross return span performance in second And will first consistently in the confident margin expectation quarter that we and than and during these leading those achieved lower margin believe quarter X-year between the we fiscal we've fiscal anomalies. between, both our the are

those remain, As you'll fiscal to a as continue of solid a as strong, we from remember, and demand XXXX well opportunities diverse we range programs, closed ongoing signals. with drive order and see we believe customers backlog

executional providing we As we focused a fiscal highly products. of on complex second excellence move critical as for partner XXXX, remain engineered mission into and manufacturing solutions highly the half life-saving and

continue also in build integrated a as unique our upon marketplace of vertically premier reputation the services. We provider to

second like ability As shop a both existing the result, our from challenges recognize the and fluctuations saw much we're value and seeing program model who complex continued strong one-stop the adapt quarter. we ones to during to our customers, and business demand in new

remain industry manufacturing, of supply We range XXX% IP are from is the protection, deliver throughout today, each industries levels and customers. we risks. our in recipe With and to of to a to well base expected capabilities believe chain of to advantage visibility new continue expertise XXXX. and often a partners customer and fiscal these our comprised attracting highest growth regulated positioned broad our drive ability requirements, on bullish organic of programs proven Our competitive be reduce US-based strong we who new on favor

a update to let on our me over the provide it hand quick new for I Before financials, Tom facilities.

the Hill And state-of-the-art that, over move the our for quarter location in the second into move not on have business conversion To We solutions to a electronic interconnect facility full the transition completed we assembly seamless. to York. nearly our business put transition the in new have a detailed was coming our Silver point Newark, and manufacturing issue at plan months. the finer of our new did contribute New

focused of anticipate at ensure supply While to our we this we of talented is and fully continuity successful exciting, is technical operational customers. and operating plan very that our the will a being importantly move complicated to in on our team The thought is efficiencies more brand leveraging footprint that and new our maintain improve a facility is performance. our location enhance built new custom and equipment

organic us local View fiscal to locations We're attract These in are summer. operational strong the base vocation during establishing we to Jet of demographics, IEC the a our continues occupancy, to New will our which local foundation Drive Rochester, half of businesses opportunities Rochester's from Our over building the the look addition community. and to as expected this York new capabilities local recognition double-digit the deliver high-tech XXXX. forward markets help believe we among we fiscal occur pursue marketplace, excited to growth in about high-tech we're seeing X our on is in progress leveraging and workforce the and With talent heighten XXXX. customer strong a goal second new for of

to fiscal Now our to provide quarter Tom. Tom turn over financial more the around performance. I'll call second detail

XXXX. of administrative fiscal million, of million, the Selling compared XX.X X.X morning, million, to diluted second XXXX income XXXX of Revenue share XXXX. sales, in and of quarter second to sales, per compared net as good everyone. $X.XX $X.X of per share of of a XXXX. was compared X.X was profit and for or to XXXX the $XXX,XXX fiscal increased fiscal $X.XX the the diluted the per quarter sales, the of of the second in quarter of gross X.X% basic or million, recorded quarter The a or profit quarter XXXX. X.X Gross $X.XX for second second quarter second me, of loss sales And XX.X% of X.X% the Jeff. slightly basic to or compared quarter in in XXXX. second quarter in Thanks, of company or increase million to fiscal or expenses of X.X fiscal million first an X.X% loss of Excuse of of net fiscal X.X%

sector the one medical demand various Various fiscal same medical of revenue in The customers increases due sectors XX%. $X saw aerospace for demand customers resulted with we of by to million. disengaging new saw decreases increase fiscal to were distribution of increase XXXX, XXXX, to aggregate fiscal a an reduction for $X.X to of one to of year. offset customer increases million. net XXXX. resulted in $X quarter compared defense customer an in revenue and decreases XX%, of resulted decrease in $X.X prior the $X.X second in fiscal the at of and second offset ramp-up of of and of of customer the market in quarter related a up demand Looking A and second a net from decreases $XXX,XXX. million related partially customer to XX%, an decreases our revenue $X.X production ramping and in customers and new in million, of million in our in of These program sales saw defense $XXX,XXX quarter $X.X decreases aerospace of increases various increases million increase customer X industrial We the period at at of were These amounting with by million. partially

of in sector the due X decrease going million continue customers. other to amounting program from delays million at industrial We the demand one in customer forward. of sector the out from customers. The customer at of some $XXX,XXX expect medical The phase and net to decrease $X to primarily $XXX,XXX $X.X is in remaining decreases net resulted volatility various

adjusted the the months $X onetime onetime fiscal and results $XX.X of and -- in to fiscal fiscal of XX.X% $X.XX sector prior fiscal million months defense $XX.X per Now X in compared or a the taken or in period. $X.X have inventory decreased diluted common XXXX, share of fiscal million income as reserve period. adjusted diluted and increased million per per XX, the XXXX. of Adjusted tables revenue administrative year to X measures. ended per the to XXXX, profit to per X.X% period. reorganization Revenues share revenue months million, $X.X reserve X from from of the the these the of first first reconciliation in increased or $X.X million. share onetime decreased one related of fiscal $X.X for net and morning $XX.X $X.X was to gross sales which basic press or same first the the XXXX fiscal the included the Please X.X% XXXX X for sector further the March inventory compared XXXX, compared $X.XX of X.X% a from $X.X medical to Gross of X months of revenue first for in fiscal million sector and profit for per of impact diluted months $XXX,XXX, looking regarding $o.XX million or basic of industrial first Net at prior comparable XXXX, in to in year of been fiscal X.X% first increased compared of net would months the aerospace in income of X was million for income prior of million the the the or this share medical the Selling sales included company's to at a non-GAAP negative $X expenses X information and sales refer release customers. basic impact sales $X.XX months million impact $X.XX for the the million

balance strong $XX.X remains capital with Now sheet our in and stockholders' sheet, equity. working million balance in $XX.X looking at our million

will compared XXXX. that $XX.X at inventory QX end fiscal million see the end $XX.X the of at million You was of to

XXXX, the customers comparison in And see million XXXX, associated $XX being to as of component almost of to $XX.X XX, grew million on existing part September April our deposits to result, XXXX shortages. a customer mitigate risks year. million within first deposits at despite continue $XX.X the We a with in consumed of the X, to willingness X months help ongoing fiscal

by months deposits year. I'll With a result, fiscal first As during XXXX of that, X Jeff. inventory netted decreased it $X.X back million turn the to

thank Great, Tom. you,

long-term the signals marketplace half goal which about in the digit XXXX, has the of for for programs, we're the demand achieve enter we our value, our seeing expectation of second year. fiscal fiscal double from optimistic we're we'll culminated As high growth that

may the improved that of be half half first XXXX the fiscal believe in same versus greater fiscal fiscal produced fiscal improvement dynamic Some second recall XXXX. occur in the of you the with we to half year will even in fiscal experienced second XXXX the of performance profit year. than We what that of expected

million as maintain revenue. time, milestone next performance our internal as from I an second existing we're continuing and As gain surpassing in our stated new customers. customers, goal the quarterly earlier, to logos At same of traction pre-existing anomaly, to we of view our quarter aggressive our distinguished we as marketplace, the of adding programs well $XX in winning new list

the experienced. it new XX% of we historically, business the opportunities track from logos XX.X%, and of believe generated fiscal percentage example, technical not in higher XX we and been sales levels previously if customers. opportunities, to increased of it the is business mentioned the internally and the more non-trivial as award by between X% consistently end And new we second than potentially our universally, value of QX, for In in challenges size of contribute program during that in are revenue. XXXX, relates XXXX. classify revenue quarter, saw of is course higher For the These percentage somewhere are fiscal the new would funnel even what revenue opportunities anticipated vary Furthermore, tracked future. they probability it represent new that total we QX, new opportunities industry and the new have in leading the from OEMs quarter complexity, from reach and the to but we new

focused for products. solid we to XXXX. call In reputation life-saving metric for by remain trend critical the position premier the balance to leadership this positively the US-based advance fiscal I our growing With to as of operator over XXX% to manufacturing continuing will that, any for a partner highly continue complex questions. and end, the turn mission back now our on expect We

Instructions]. [Operator

comes of Morales question first with & Our Mike Co. the Walthausen from line

just to can difficulties sense the and make understand bit into technical that to half from came the a sure year be manufactured color in was fully get to more that shortfall what facility, new I that Can And maybe the beyond. is being dig the any that difficulties? you clear, back work shed correct? more a just on none of and those of the is in just of I this caused want little that

Mike, So the question. for yes, thanks

obviously to of In production. have half So we be it usual substantial challenges, production a was wasn't we than And fairly the I'll complicated. snafu, X number a But were that fluctuations host midst and technical I issue, and try it because one who there of span them I to more proceeded had it's entire quarter, up whole more answer, affected usually would but ramp programs are managed concise quarter. be of can number to And in halted into a normally specific with days large of are and technical the weeks. particular happens challenges that to specific technical very that it. supply it business, those through large than the across what in the the programs. this a scale We supplier related and quarter month this challenges quarter, X one in say volatility case, a for base specific what would supply wasn't as

of the much of impact, us. and nature the cause, root understand that optimistic understand we is that we So behind the we're

we'll to outward-looking cruising QX, I'd on the well-positioned be resume to production get a, into hopefully, what say, rolls quarters. in and that altitude as So those programs

as issue that the be was characterization? the maybe sounds it to from crux, fair its supply if of at a you like So Would with disruptions chain defects understanding opposed I'm correctly, equipment. more

end given material, technology required inability and stages the the itself an of manufacturers from Yes. leading us this issues early supplying I at to maturity in the mean things the levels. of for program, of the steady the it's running raw product themselves and some materials actual keep fabrication in production the edge with culminated

of about right and for very largely that you're required chain-related, less in the of availability materials, applications. it's precise usability these so but exact were And that in supply materials but

it. Got got it,

back the in running margins go you year, was business at as look really the and back of half, especially in then, clip, think the back XXXX, right, guys I range. about the strong gross a As at the XX.X% half

as XXXX the here, looking crystal can reasonable our potentially, you it value of that? is good think to into even second given all back exceed balls As high levels the these programs, half get are, of or, to that those of

that our a And levels. us margin for at for from as demand multiple would say, much decent going would line No, even that, I'd had got we're of half we've I of other been that I product margins once programs, some Once higher. see see the the haven't, revenue we're QX that. about our thankfully, we in sure, we in see unlike much push sort we've say year. very quarter conversion customers, optimistic, again, into greater I solid We then could the it has say higher really back revenue converting to back altitude, from post-COVID firms production trending steady that to at where of get for margin-wise, and quarters of and customers. had era, cruising we finished in these that we sight

really Jeff. helpful, That's

to is are past, you How is raw the bearing Any in you'd of topic just to And and call out? there's about. been growth kind day. What you the bright or with challenges constraints seeing? kind One the the X that spots you is portion, I out. of labor, which of that? that talked labor like the think stick second are material guys factors As about

right. I the candidly, you're characterize mean down constraints Yes, they're it you simplify are, as greatest to those if you to overcome, them.

facility deliberately positioned. to side deeper new we area. than that previous tap relates into said it on hasn't have was strategy comments well a for our headquarter our incorporated pool us. constraint I to in the near been most labor in eastern of that my a Jetview much Rochester labor, As Rochester facility the into We're

So back the size. labor pool, of the the going is center into XXX the city, almost

having in want we that deliberate, in the So was constraints prevent future. to labor that

that For revenue the and double future. now, constraint see we're we're which next over own into to could for we hopefully new we're sustains of at the levels we sufficiently time, convert we staffed the with potentially addressing the a holding that quarters. facility, be envision growth our couple which see But digit

there, last about as facility. understand, just that touching hear that of the give into anything whether have learned or new Maybe guys the maybe what progress additional transitioned help just heading production so me new the far. challenges, me, bright facility? and programs, spots And you facility? to then can that Good that you've And far for any talked existing, some over maybe on have they're you cadence new so you to about

very, Newark. Yes, over, our went so well, we're seamless previous transferred we're is midst said, work, of way is in what a a and new the transition. flow. that Norton And much experiencing it almost it's in at facility the more headquarters that, out, Newark solutions laid operation really efficient as business Silver this And very transitioning I interconnect from Street the Hill to in

see I we seen also the assembly our as of the which is next help the call, more yet. sat be and business, the scale, help in of the executing we'll efficient already of much P&L We're areas electronic that so here. to obviously think, By going we phase haven't of which customer quality. assembly So phase have on-time delivery first volume that electronic should and business, we'll moved next complicated, more had effects start the

solutions see business execute to think we that And of business, kind group, and report interconnect for built flow. provides get of out efficiently we ability facility, mass our to it in much from it the advantage assembly. on business, planting of over early term, translate to in early better here, take be collaboration, laid problem over That to to too think this really tell But some we've better time the be to long critical we able new pool it'll we solving, better talent electronic will there's progress workforce doubt population. And access greater know finish, to I go, as course having serve of as be already we'll longer there. how much will the early well so So density in It's term. it's start that no us but we're it'll that Jetview. of on purposely to that time, too to said seeds,

So hopefully that helps bit. a little

of next question the from Our Research. comes line with Singular Chris Sakai

a Yes, I had just have had give a seen a inflation? could you sense, question. signs I you me question. any of Maybe

the We buying. components products pressure raw we're of for in demand. are And Chris, it's more on the seeing They're we for many electronic the specifically, manufacturing. upward purchased high materials around for sure, end

So there's certainly inflationary pressures.

address with on effect are it's collaboration mitigating, more, supplier, customers build impact customers with certainly with a quite prevent. that. manufacturers' customers they're sort P&L, a working lot of of around and a and our our there's And pressures. together effective of are to collaboration to causing supporting monitoring seeing inflationary But think intense, use, specify a happening, be on and we'll that and lot the the print I our customers we purchase we the the our to and but of that As the bit to specifications parts yes, technical working our that

could guess, would guess, for you segments. revenue some And medical decline drivers I if you shed for breakdown be and that the revenue the more about, that? great. target light Do a between then Okay. X on, have industrial, Wanted I the ask to

think and was that Yes, the probably regulated to so. likely, balance more basis, XX%. to Medical the on XX say going more split, I ideal and in probably towards like a the say would be in the I'd normalized to weighted a aerospace industrial, I if that that we're of be highly XX%, think I would about terms lands of defense. that where XX% or what

to a look way probably that So that. I think reasonable would at be

itself, quarter. we the of quarter to see business terms In fluctuations

Our strong. very aerospace and defense is business

also As on we compensate be see Tom come related that to this greater which offset, we COVID volumes. year was the board programs some not that mentioned, much we're demand the was is that lower inflating COVID But had to unexpected. demand new of some year, volumes last some for than year's last seeing

reasons strong stems from or the So think side. way established And the demand. anything really fluctuations. really defense we order what way to understand, think normalized kind there's but I one as that I supporting demand our there's to on another we've aerospace, about They're premier that of contractors, don't defense note down our the smaller reputation the and of all US for X customers defense marketplace defense Tier providers in one

I remain so steady. that'll think And

of with Our Mark next Next question Shawn comes from Capital. the line Boyd

okay? hear me you Can

you Shawn. hear can I fine,

script, you I got of but you -- Great. Jeff, the the missed comments mentioned, wrong. wanted I to just kind I I value opportunities that funnel sales might think back up to come a of in have of this, XX? couple earlier. in apologize, the And I by this,

Yes.

bit for that us? clarify a you Can just

Yes.

in request is decision careful been official we what sales our to and probability customers way to early the close a in high waiting delivered it's opportunities it's the price for referring response supporting to companies monitor facility. any qualify we But their are through when characterize some sales sales our that way classify, you been an pending program. and size are the quotation internally, All -- and what a the new a visit, waiting, we to the either what So you to we to, developments funnels ways. and be stage and funnel. very was classify I There process, focus are talk got here different our what on, about consider and for

early would sales I what we aren't high say consider process, them these probability. high stage in the So up

a referring and classification, quarter fair deeper will the dollars, since high was revenue I customer And on adding base And them future the new increase of substantial for really opportunities. in probability share. to, existing existing a we so and we is and of saw we're growing in convert our won't we bullish that it's the which number pursuing to a customers but sign share, last of convert strategy dollars our wider where all,

Got it.

Okay. coming transition your that back? think the And that newer economy also on now? just road booming offer and Or your a manufacturing you're things few to down do you facilities able and is kind are of months the facilities

I strong And starting of, in Yes, think of up phases things of to of came I a it's things think a kind COVID. real a now early open lot a are bit. to the combination slowdown

a that's think I part So it. of

led I have has as suppliers that engaging to think that some a maybe an future to today. replace us that our other companies continued they have of good underperforming interest performance also and in supplier reputation the

good So I facilities not stakeholders. our to some both are and think said are our our still that, it's saw that still a hosting the facilities. the the interactions, improving customer of in-person COVID to they coming visits in around out customers key nor my of and in remarks combination. I pretty things uptick Having many QX a but are I interactions, mention supplier think we our it's really interactions, much. in facilities don't wise, as at

of believe the moment a the to for our increased continue mentioned will new those win well ago, activity. that the we think we're share drivers positioned reasons programs. But I improve. to And fair I are behind really So those

Got it, got it.

yet. impact, being in you've funnel, that's have off not Newark not So that maybe of the boost new that the able and to That's in comes show seen far, of kind facilities sales impact there perhaps? so us in really and that the that fall potential to

household They the a recognize, I us business. we stages. One customer early a that's can we the global, going awarded And us. some they last leading quarter, a mean Very for with company, they be future would logo and And market here. where to customer particular won everyone audited deeper share wider were foundational programs. grow them.

that of that out audits. in So in-person one still are visitations slow the exceptions. were better. see it and us. actually, case, they progressively new the of facility the better their customers rolling But hopefully But other and showing helped getting Most we

Got it.

you about just seeing conversion? on numbers give tell on actual orders. year, know quarter? the sales tick us like you And moving actually What down you we they comments? starting can anecdotal can to the quarter up? funnel Are to from Okay. within Are to but to orders I don't talk us

that QX, Yes, had the seeing so some saw we in in an QX We up QX and from bookings drifted bookings actually quarter. so from anticipated current our into bookings. were uptick

I the substantially see current QX. being quarter in bookings So higher than

think I see I and QX another trajectory, So we're QX, on better QX being QX. better was than substantially than good

we see Okay. to one? greater To point where the book bill a could than

Yep.

Fantastic. Okay.

for the that's how on -- you comment we I year. I growth, double-digit a on little lost Your out bit growth year, know revenue started that target the was

X growth the that, We last the saying have different had year double-digit a for just had couple for lower we've quarters since have expect half. you that first still issues Are fiscal you the quarters of so of or happened, and a full year?

performance with a the greater much a for stronger to had that year. outlook year. certainly higher we we'll from perspective, maintain similar half, Still levels. full P&L the P&L second a I what that revenue have last And

was I full to year. yes, So referring the

fantastic. Okay,

drag from medical, there being comments must last any impact a was demand market point? the the maybe this and respect COVID year, alluded to to question the through so negative about little be bit we earlier that with largely segments at on And and of that

absolutely. Yes,

I to think at it. look a way that's good

Yes.

should to to up. I'll to want to try I have over Customer that. the see Okay. leave I kind mean no sorry quarter? see. hit in been to I'm on then for Or we wouldn't of the that be duplicate cash. to Tom, collecting the get lean you June there the continue deposits that's monopolize you Love out you out. Is move expenses and quarter but hit? we about relative way? the the here. kind I inventory. seem to and right about should wrap Great expenses moves it of think conversation you any questions might've that March mean, thinking of as anything guys that to

not is especially much business amount. a -- as we've good because our on a assembly sensitive own doing the significant We Yes, of do but it's move, there and expenses is we some, lot we the honestly, of equipment, electronic equipment. we quite a support we it are can job at as as got planned, just obviously,

our a to to road, process. it handle a is production it's got support team going in that we've only And ourselves. moving our changes facility lot accustomed within to of down So we're miles the that given X

So be costs, but won't it be there amount. will some incremental material a

is Obviously, CapEx it what also which March year? half Anyhow, quarter the a back seems we one Last the CapEx. be And year? about first half. me will Actually the more think out in for great. should on for of Great, from the normal it was year, next to high then that though. in not like high

I to see through I new equipment and new with significant think you'll a year with investments think and second the We've lot standing that of back then see And manufacturing qualification moderate year. certification in up moderate year. of the and you'll half this to of processes into building of going towards building align we've upgraded the coming I made end And this our XXXX. our online, kind last Yes, things think the customer.

good be support growth. should we we'll to the plenty and to So capacity have of go

Okay.

So back of that millions low budget? of single sort digits, kind into

Yes. Yep.

we the to call management Ladies closing to of like for I and answer remarks. reached and would back gentlemen, session. this over have today's end turn question

Great.

quarter. to interest participating say again everyone's as to everyone to thank for for with look health associated We all want we speaking forward you Thank everyone manage to next wish IEC. pandemic. the Just continued through today's with we safety, in challenges you call. And try certainly work and everyone in the and

today. Thank today's joining us you This conference. for concludes

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