Precision Optics (POCI) 30 Sep 242024 Q4 Earnings call transcript

Good afternoon, and welcome to the Precision Optics Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Thank you very much, Gary, and everyone, joining the call today.

As the operator mentioned, on today's call, we will discuss Precision Optics' fourth quarter and fiscal year 2024 financial results for the period ending June 30, 2024. call company the is on us representing today the Dr. With Officer; Precision Optics' Forkey, and Chief Joe Executive Mr. the Coll, Wayne company's Chief Financial Officer.

of Act of Act safe Section are question-and-answer as XXA during of amended, statements of may we within by Securities Securities of the conclusion Exchange XXXX call to harbor and the record, the Securities and the we the course the Private the of Litigation today's XXE team Section Statements the we'll meaning of the forward-looking remarks, made contain At made pursuant statements amended statement: open Act submit, of for for Reform a call XXXX. with as provisions of session this such the forward-looking XXXX begin of Instructions] Before management conference following [Operator prepared remarks, prepared the Precision Optics

risks plans, describe draft, a cautioned Commission. to preceded as statements and to risks in from the words multitude such Securities future the statements projected cause are or are that from future and materially statements, including identified that and of the expected, as could Forward-looking plan a will generally differ expectations, Listeners circumstances, uncertainties or the subject forward-looking are statements by forward-looking company's with or Exchange factors planned, the projected. should, future, events results those may, such strategies risks other those various results that or or eventually and may anticipates, differ results in filings actual in materially projected of result

the and estimates Precision of Joe, Forkey, obligation company said, to not new otherwise. With in the only speak please Executive management's such any Officer, date. call update assumptions which any and the conference receipt whether of the me as of future of or Optics. let Chief this during contained over on Dr. result forward-looking statements information, undertake publicly Joe that events they made were occurrence of based turn forward-looking as date a The to statements does call are All proceed. as

and you, call fiscal thank our joining year to Robert, our for quarter Thank discuss you and XXXX results. fourth all today

you of for on to in we of be year range a $XX.X expectations preannounced the million to revenue $XX.X million. most As XX, know, August

May. Our than today for final of the we revenue year that quarter. revenue our for August $XX.X levels $X.X reported in we were call million the the at numbers million range the in anticipated time were somewhat last we These lower above but slightly preannounced and fourth conference

half in in were few by remains delays case delays These detail of quarter. each the these more right causes top, of programs each lower levels customer product the is the from key relationships fourth emphasize a I in specific the but minute, and explain market let in me a driven latter potential of strong, will in the the intact.

outlook have QX and preview about programs QX long-term We growth these to since just overall business our and for So completed our on of QX. a high. lot calls have our a cover have we remains always

XXXX. step a fiscal the of discuss back take first and and of successes me Let year some challenges

not development As were production significant the two discontinued: products programs facing fiscal through need to our included redesigned we XXXX. revenue our record-setting customer orders. XXXX. communicated burn million by was spinal that which and past exited we up This or pullback additional represented excess product inventory two placing year, of long-time that that over a our fiscal our program XXXX, These aerospace that in $X.X for loss they had defense, programs before programs the built one, customer when surgery in were were approximately and fiscal we product forward few in moving

the reduction in in business. a of approximately $X.X our revenue in XXXX saw quarter of year-over-year overall division over optics components revenue the of in fiscal these starting In fiscal million. in Optical drop told, XXXX a This sharp a XXXX. reduction $X by starting represented with base Ross million industry, All addition, slowdown situations caused fiscal first a an had

fiscal was revenue that programs While This from production succeeded May this certainly we development product record-breaking in progress product number made into a by pipeline by successfully development revenue for bringing year-over-year. million development our and segment order base and a the our of XXXX, on challenging we nearly moving programs record XX% rebuilding business of our announced growing production with new the pipeline. in $X this punctuated by into product

XXXX a happy starting we to contributed am which all position. fiscal that one, continue will only significantly not Of XXXX. our $XXX,XXX that that revenue, to about much are fiscal we I into in report fiscal programs have stronger contributed XXXX

business So, this we us on XXXX. strong allow building will that year, a base fiscal record are levels of of revenue in reach to

XXXX fiscal ramp-up revenue suppressed levels see specific beginning still due we to will some to While in expect step a increase the challenges, the quarter quarter. second have of revenue first in

in increase years over Marketing, and Jeff platform XX imaging during Clay company, during from invest capabilities, our to small Vice of top Senior support systems. This digital and many I larger business. new begun some by a by and critical largest, fiscal Scientific talent of Jeff played to our in as sales now want overall companies and his operational of also than strengthen led the industry's To former product support medical has in along positions the medical us device DiRubio, in we recovery Clay and new market of take to over our more VP tenure. continued engineering has management Boston team our growing previous in XXXX, product the our taken our ongoing with from well of marketing to managed infrastructure Schwabe. opportunity marketing for a line device revenue we the in space the new our as and experience developing Medtronic. management extensive XXX% rollout this that is sales interest the President, recognize Beyond Clay has of to our development helping our being who of team draws experience years. effort, increase team on added have with role sales and Sales

With system. significant growth have a team expected in ERP our of we manufacturing updated and new the infrastructure production, also implemented

manufacturing decision year while Maine of Massachusetts As made part Imaging to of maintaining our optical excellence. engineering last house location digital Lighthouse center an in we office the integration and consolidate our business, of the imaging to systems all the in

and but to transition product running the this Massachusetts, have We final now next all we programs expect one our of of in months. couple production in

senior updated employees our have particularly area, from hiring We Massachusetts, Maine for folks this moving management engineering. manufacturing structure roles resources, additional redefining and some in to some

All beyond. XXXX are positioned support growth told, we well and expect during to the fiscal we

take from complex Optical what customer separate see to business revenue we top-tier in and We highly optical started more in QX QX particularly impacted At and detail, for in now things many development, we micro-optics contribution streams: going the off strong of of production, with laboratory. optical QX product in QX revenue me coming manufactured defense few minutes revenue fiscal programs a assembly where and discuss, the Let have a our our in four labs, years. manage micro-optics $X.X for happened systems Ross XXXX of that beyond. we the in QX a latter part and million a

from In announced order April, we follow-on a this customer.

the $X move that $XXX,XXX, the through was than revenue larger almost that lower nature of the rates order lower process, grow as million this Given from revenue of production order. about we this QX. program starts with QX therefore

and production of development the we this Within growth expected For from these the the $XXX,XXX the XX from and second is that systems product continued production, during from to from fiscal programs. which And quarters shutdown revenue recover program, XXXX, approximately months. to the otoscopy we Two achieved first has transition complete third significant of $XXX,XXX our and pandemic. our last QX in optical are QX of for programs to X order. expect revenue pipeline

programs doubled, quarter, expected the were continue QX through well and would ramp from increasing approximately $X beyond. three QX All we part output production running of they to fourth in these The three from to nearly early nearly million QX. and in the $XXX,XXX in

still some challenges point experienced increases quarters, in they ramped all as to indicators significant programs While these we've of couple in up. next have the

specification potential the into middle product we longer The tools August measurement these of itself. in went existing the first We In until operators when and than of is been failure, second shipping production year, defense additional training be QX, our XXXX. by program however, production and to Duplicating had our in QX aerospace we these determined saturate a of fixtures testing QX. steadily expected not identified line. ramping during and and technique took fiscal issues the to began quarter our that customer with new a problem continued but of this customer later used acceptance the resolved in the

starting some stop This measuring tight QX to, temporary higher tolerances this at available approximately by to line we a the that most million. product that investigation, building is we expect tolerances during week contribute equipment revenue can production news, and QX. to the a is in which however, are customer of measured reduced the the restarted $X.X be the an of ordered of indication extremely today. only fully approximately production on $XXX,XXX with good last sophisticated The revenue level Unfortunately,

deliveries confidence follow-on Importantly, us new was to even production for had year, QX. later our orders while customer give stopped the during this

a program began product. new that The was bit in the second into QX production laparoscopy stalled year last in but went robotic January. Production

we expected, delivered QX variable of lot in resulted units, QX. to lower experienced from have in significant shipments in This a lot. we than also number While and yield both have

process ago. on the believe cause restarted beyond. little variable began otoscopy the we and a but we improve are yields we findings, of identify be product we confident would year increase to a thorough the will of experience, recently with build preliminary in We deliveries yield. the Based a to review we over able QX yield Originally, of more root

experienced resolved While and the by were recognized fourth XXXX, we restarting in the that quarter. revenue largely supply and chain some yield which approximately quarter issues, fiscal line, of we $XXX,XXX

replaced. electronic in requested the been first their we reduce to as the which dealing demand has with customer our were shipments an match quarter they now discontinuation of component, However,

result, not the we of deliver QX. produced a were able units we to all As in

to more of shipments run that the expectations end expect quarter beyond depending at market regular increase on by significantly per may approximately penetration. with this 'XX be $XXX,XXX and in a rate fiscal QX We of

of impact QX expected in QX revenue reduced our approximately $X.X million. overall in challenges and will by impact and $X.X $XXX,XXX, revenue between the million three $X.X resulting revenue approximately QX The these negatively programs by million

$X.X the in a production major few the imaging other to revenue been production When announced last this anticipated fiscal forecast, customer The that product just approximately demand we their assembly we order transitioned from up million single-use for $X receive months in program increasing May. endoscopic XXXX would we order, our already is With development million. record and that have pulling we in their deliveries. be ramping

single-use We ongoing for manufacturing program expect estimate high ongoing revenue of $X.X per to impetus at second the market. and consistent are currently the hope use provides of performance delivering end could strategic on efficient points Based market strong a of a at manufacturing XXXX. details achieve POC customers' to result production continue more at This endoscope market, this approximately line million up order in scale in our future. provide be in we with and technical quarter fiscal will $XXX,XXX to that updated rate standing for price with ultimately the platform to soon. advantage. on now provide demand an the dynamics endoscope single-use are grow We the in will able investments This our

production QX better higher exiting In systems running in supporting far levels are summary, shape for and will at and levels optical programs contribute beyond. at we with production expectations much that QX the

is This of as imaging development stronger we segment, ever, XXXX, robust the to to which the on device continue faster. strong regular the is to Xx XX% opportunities our product even and add As growing we is X% medical pipeline which as is single-use a start a of new overall Xx growing per year strength at market, indicator basis. fiscal and

as we for continuing with engineering support can than we have are recruit more team. existing we the We believe talent to opportunities

to competitive that launch specification. This risk specifically POC's well-qualified will new years this the to an marketplace customers platform engineered design As from call, the few engineering provide components and of starting entice hardware I to this We on reduce product into of utilize received, development limited programs. provides path point already as their well accelerated to to many product The baseline can last of a Customers has existing gives customers this of baseline draw customers now because systems less be on concept customer's these a product a our for high-margin as can advantage resource our select approach. a into pre-existing family have to and us been to coming choose our offering Financially, that product. customers. mentioned development a we our customers of developed development offer three new pipeline. have in based this and we very software market our experience, may from a designs, baseline designs which an then act platform a set new call

the with become We of the proceed months. medical expect believe we help approach next-generation Systems. coming in us to to choice provider Ultimately, device, Digital launch Imaging this will formal more for a

Ross up product deliveries accept into the is in for now of of many calendar feeling have This pick see attitude orders. with customers is beginning our consistent again beginning to starting the XXXX. will Finally, to impact delayed begin that are who industry some industry-wide we follow-on general optical the the business division sales, slowdown in months, the just although still place to component Optical in

budget to rebound hopefully We in are and increasing accelerate for its fiscal Optical marketing XXXX. our Ross in magnify order

depressed resolved. QX ongoing from QX believe production revenue three largely To summarize, are we programs that issues and

a deliveries expect ramp. order against $X We to for endoscope assembly continue imaging million the to single-use production

pipeline compared higher to development continue to slightly we to product quarters. and expect at record levels revenue revenue recent We our Optical Ross similar continue near division expect or rates at

and Taken XXXX. see support in before fiscal together, strong in these revenues quarterly the that of with a we sharp QX record expectations our increase will end revenue confidence

over I'll now turn the call to review the Wayne to financials.

Thank you, Joe.

Joe's starting some of Let comments on results, me the financial expand on with revenue.

was year, technology onetime million of million, results revenue the $XXX,XXX license For of revenue. $X.X decrease year. year's last Last a $XX.X from included

a and million this, Excluding with year X.X% XXXX. a business, level was to started revenue. a loss XX% as fiscal development to XXXX year-over-year of that previous recovery significant revenue posted of fiscal engineering compared programs was XX%. XXXX $X.X of major revenue, product of of segment a which the This A fiscal accomplishment representing we $X the revenue our representing or or at contributor pipeline down record year million, is increase about

$X Looking specifically here. the at last Joe X%. decrease the commented fourth quarter, drivers on already revenue was $X.X year, million key has compared million to of a

and With the costs absorption fixed production, Lower revenues Ross by Optical margins. saw revenue of which the $X.X $X pullback we certain in overall revenue to impacted reduced specifically gross less by year, margin for our million gross in related million.

gross year, last the compared XX% XX% For margins to were year.

have license been range. margins the would gross year's last in mid-XX% Excluding revenue, the

last challenges fourth also to quarter year's led which gross particularly to the by were in ramp-up XX% impacted For Joe XXXX, margins quarter. only not compared summarized, fourth but was the gross lower reduced fiscal revenue, of fourth quarter margin. XX% significantly The

onetime recognized resulting charges fourth also the revenues margin We raw expect We value and in to to the stabilize unfavorable inventories. as quarter recover processes adjustments of quickly in production COGS increase. our do carrying materials from gross

for last QX, There compared there in year. compared costs expenses a million a ago. $X.X the also Operating million million last to year to QX year compared for $X.X and $X.X that million to few year, $X.X renew were were are

this a First, past focus year. have on put as Joe mentioned, recruiting we

expenses. we During in approximately had quarter, $XXX,XXX personnel-related the fourth onetime

are to engineers, investments this growth. especially up achieving target getting utilization. our new in and the long-term of people, expense, speed there's Beyond specific These cost

new the we investment Second, platform higher but impacts to anticipated positive strong will our internal of also significant believe years, expenses R&D and platform quarters that rollout were near term. product incurred in the with compared that sales we product earlier the have in a represent

have production been in manufacturing increase of the the expansion we possible facilities. with Third, volume, our exploring

not the best during $XX,XXX area we concluded how expenses approximately with needs on quarter. in to this fourth did our We yet investment costs, balance incur in have but growth

of compared last during result $XXX,XXX a net was to a year. $X million our loss lower As XXXX the fiscal revenue, loss

net compared For loss was year's million loss last the to fourth quarter. fourth quarter, a $X.X in the $XX,XXX

excludes depreciation compared which million XXXX of EBITDA, fiscal in interest amortization, and to was compensation, stock-based positive Adjusted $X.X expense, EBITDA adjusted year. last negative a $XXX,XXX

For and in hit the to quarter, biggest fourth and driver expenses lower fixed negative with the $XXX,XXX expenses, that onetime had operating million we the was compared operating $X.X the last year. manufacturing revenue adjusted largely Again, fourth EBITDA here quarter. along negative

year, our to approximately for goals quarterly breakeven upcoming million, with be expect quarter second aligned to we look we expectations $X.X achieve levels which our EBITDA the is and for revenue the As beyond. adjusted revenue

close participation million XX, capital. completed After the working the of Our past we cash registered our and August, to supplement directors year, included common this offering from at balance was $XXX,XXX XXXX, June $X.X which officers stock, of a direct

This high submissions well have the for the As in are included FDA retention our evaluating the physical as business of are degree we model strong and the of financial as very as of customers. and revenue the consolidation, and our will that expansion likelihood result supported long-term return of support we by as is efficiencies will to key the of to and facilities is embedded earlier, growth recurring in drive technologies alternatives of alluded are our them our relocation a the result invested the high We scale. production on in single-use attractive products our capital. customer high in we to focus believe

in invest manufacturing physical time, methods expectations, well for both our we efficiencies. as over on Based growth as will, capacity

alternatives will multiple the confident of model financing appropriate investments. business afford us for are attractiveness We the

some call comments. to Joe the over for turn now will final back I

summarize, challenging was made we a lower $XXX,XXX base while To program progress year, bit revenue fourth than fiscal to in rebuilding fourth the came quarter during substantial Wayne. quarter about that impacted This you, expectations. was certainly delays XXXX year. few by in Thank a the our by caused initial a revenue And revenue our $XXX,XXX.

of these to $X.X $X.X of Some resolved. expect of these of also million most as issues today, to be will fiscal issues in But which revenue, range quarter XXXX been the impact million. have first we

defense visibility hold the our and quarterly will have and of strong program that also top leverage before All in Coupled of optimistic revenues put improve starting now in with week. business substantial in on production temporary QX, profitability see of was growth grow that in a This a We growing our line last revenues record we we XXXX. of higher QX fixed the program starting our both in up again bottom and line with programs, single-use due other we re-ramp that the fiscal confidence to number see significantly end are in costs will to very XXXX. should fiscal model. all, aerospace performance

it Before Conference Lytham XXXX the will over questions, participating in we tomorrow. Investor I that I Partners to be want mention turn to Fall

a you schedule meeting, to Blum Robert to reach out to one-on-one like please If would coordinate.

all any continued at happy thank time. this To be of the to I questions take your Precision for Optics. on support of call, you you We'd

[Operator Instructions]

in a to I live see we Blum. call, Robert guess is submissions this wait some here. Gary, webcast on anyone I've got if while comes

a let's and couple So, through of you these. have, Wayne, if walk Joe

and calls, you were million we mentioned or a complete by expected, any was August completed, on $X.X follow-on follow-up is question order would it orders? and here 'XX have orders previous discussion seen we First defense

Yes.

the customer that months. the commented aerospace was that on of almost new is program here. by couple the put defense a during for a that we So was comments on This program hold

reduced to And The I orders will shipping. that this finish us so that in hold, the question to. the mentioned time allowed was referring here, take is it the customer as good news, script of because that it that to the has restart

significantly that to we're to is quite so QX program and And beyond. confident going contribute this

of customer part the question, the second the for new us has As given orders.

were had things issues of on new hold customer able to us the with the a that this we I production while they remarks, be in confident gave even In out is mentioned would one sort orders my them fact, they because the what us were.

the deliveries, we have question So because finished the put that's customer answer but to our us hold. not on is the

next expect quarter. orders that after finish now We follow-on the And the will to we have deliveries in do continue that.

next various question, margin Our is, contribution Instructions] through a the programs? [Operator for?" contribution Joe, believe you your what is you Great. right. you "can margin walk All target Is on there look

answer Wayne let this to going one. I'm

Yes.

got tend tends those for aerospace of So margins of lines lab, the the the between And are the tends higher, is that the on of be both XX% type tend manufacturing material segment. XX%. the got the you of forth. part And mid-XXs, -- When the the revenues to in do the range differ. utilization, we some manufacturing product defense, margin to that particularly the be profile depending nonrecurring it's micro-optics lower work that probably margins lower the on excess more to again, those a that to related Ross and that, business, the profile. into revenues that instance, side, at compare elements, mid take, revenues, in are of then experiences single-use be, that you the product and margin business, in then highest the low so development in moment. And you've the which engineering again, And to labor that almost in company to margin of in the in margins account to taking Optical with fuller XX%, margins

Great. Okay.

the is a you "For I POC this were but what Next was to was question hold, this forced and on factors bit. you up back program here, unrelated?" any of this hold? Was to running, put related some the know that defense expand of that can aerospace little now and on or touched on

can we a is sure. that transmit this. more used The a comment to on assembly I Yes, little laser beam. provide

and the to the and And measurements finish the so are when similar very, being by XX very can components then the microns. there very I our and that some motion that some facility. The way is equipment that there of measurements as are ultimately, of made made sophisticated their mean be production as are small complicated and the do are customer made by some impacted inspections beam at have measurements requires laser that are we here made are fairly sensitive. of we that even measurements maybe we be assemble the it's the

so what customers were were here, And them shipping happened making was then end. and on was measurements time our we to their measurements it taking make some we for

When had movement. making drift measurements, compared that they microns to of the started concern so there tens a may we been to they measurements saw differences in is there what even what have so of because and -- measured, a sensitive are

collectively they us we soft was what cause. the worked sort while So to out to ultimate asked production

Ultimately, parts was motion but we sensitive one belief devices, were a that a the now one and sensitivity of issue assembling, is with not they the two we that highly were using. were instead it using that

test they've and do to some likely back test some and tests a and agreed measurement restart allowed they've based to some we've QC all And assemblies to measurements, they us measurements. and that, asked issue, send and of so was then troubleshooting, forth agreed so And our we on them production. that us it align

that bit collectively just that As order done in the we've was little we that the to confirm we further that, came to right a conclusion one. we've to added make the measurements

producing. such really the caused and measurements. because problem was that sensitive doing error measurement is there a So making all, indication by used a no was a highly or or specified this what all particular were tightly was with part, in POC But it devices is the that make being to there

Great. Okay.

provide expectations leading dynamics is to on mentioned single-use question "You next the increase?" here any program. Our revenue the increased. commentary Can have you the for

Yes, sure.

on of can and a place we that general I I with are So going we're on what's of such, think comments give nondisclosures to how couple that what's I give happening. in sort of much will But course, understand help -- can will everyone limited here. hope detail as

together product the now have for FDA, single-use that market going an with are product market product product put case making, their system making from to we're the product in own a is is into that they're we're had. clearance this new in that recently It doing very customer they this that's on and market the the market, they risk new actually so so because the existing really, already So in in the expand they low that the today. received going in market replacing market the associated a the have our relatively they product already were a and market, with the that product cannibalizing well they they

Their out able of marketing actually confirm product that has field though there by the in the in folks out there surgeons. So the I for delivery release of got their once group's actually even gone some the got the were mode, of and realized with and it's were surgeons, still up. expectations it it, with once that the limited a benefits market, the they believed would think, they in some product, come to

increases us. course, of comes from product want that, they so at and And the us back which to rate

So that's what's happening.

I there -- think said very continue feedback. to we And dynamic. opportunities are for out they to grow the in as there script, more I continue to market a go it's positive think think good as and this get in I the

that R&D of in margins. to couple the change for a by sort which entirely new and [Operator model how Okay. platform profitability use increasing this of gross these platform. expenses allow not company the by to Instructions] We expenses "Will does of to custom can R&D now you expenses, is from increasing transition you offering more and the pipeline I'll are together. sort will and to future, Great. yourself. Presumably product of researching companies R&D that, pay the questions here platform expenses R&D bill stage the you the customer." pertaining custom adding to established gross your clients sort bring of products. have But affect the margins, entry-level How and have the will a client

there, at can need So me I I rephrase know a out I to. lot if you threw

No, fine. no, that's

I a great get of sense I think question. question. It's the the

to because marketing remarks, So And in terms said few clarify of product. next in in is the good this my having something months. more platform I be doing want the we'll on and I launch formal and such as a

clearer information platform think But more in this in do of to internal to clearer bit here and more a product to market as we the R&D idea and the become is order going. do I general. provide get need we So the little that will

for work the R&D we the done our the last kinds many in X products years product over work large, that and by But developing X, platform have for of the these X, customers. all of is

that X model that elements that maintain of key You'll use of of the IP during we development developed products. to we process ability is the the our the recall these business

can't duplicate sell go and their it to customers' direct we competitors. product and our Now

are is all we to products that products. the But that discovered what common we've there make. core There of elements of that are core are different design of elements all the

a bolt And customers in very made very products, that so quickly, design provide we pieces, come the we prototype can other an are which which these off and And is to we model be other way them reconfiguring products elements that initial pieces we've can shelf. of taking for from customers almost modular baseline what we're doing various core a that should sort our that fast, other have then we're on.

design. on the think, can you you baseline that to of are, LEGO blocks These add

that that part in R&D need incur design. first bit it. baseline the all turn to into the of order common a that's them we we've to of take designs There's now expense little and a before done different So

where But to it give customer a now. to So simply design that's customer. for them we is model, what us our is when we're it level able allows than were base have we're overall going does the what one right customize higher give which to this does not before we business change them we technology. a were doing showing our What

in accelerates And our time higher on. And the still customer, so of them is outside for going giving have unique expectation design design, wrap the there's pieces custom our of a a modular which each requirement go also it level to base decide and by other base to customer pieces this they're needs that but to on. couple to that it and take to configuration have bolt that the to market, the

So the customers they not our it development we go remove product the charge for materials through process. does and that as charge time

It allows designs, us just that and for customer. will customers accelerates every charge which our to it be the the for same baseline

and margin can product everyone, incurring side gross should be bit we now, because we're charge baseline that product risk go up scratch. market on continue but bring comes because standpoint, things from our development starting for to it reduced the advantage to So design, reduced which the into of competitive add and to slightly, will the of the that development pipeline customers our time this will the from a for will it margins of this R&D same after our that help from

follow-up, happy answered I'm hope your I if most to of the there's I take. a whoever of think the pieces I So question, asked Robert, question,

questions additional no show I Well, Great. here, right. Joe. All

you So over for any closing to I remarks. will turn it

Thank all very much. soon. Have you, Thank you forward to of I us Robert. look everyone, for Okay. the Thanks a good call joining to evening. on today. speaking you,

for The you conference concluded. now has Thank today's attending presentation.

disconnect. now may You