Plantronics (POLY) 5 Feb 212021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Poly Q3 Fiscal Year, 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mike Iburg, Head of Investor Relations. Thank you. sir. ahead, go Please

Dave risks financial information year call, Mike XXXX. Relations. President today of Poly's Chuck CEO; quarter Executive and Boynton, Iburg, to the Litigation under provisions of of Investor Harbor statements Vice are me today joining forward-looking fiscal My CFO. Reform of And President results in to recent discussed and Act Safe our for includes related and and statements, today's The conference XX-Q, and third Head the Shull, which presented presentation. and Welcome XXXX. detailed name is are XX-K, The Private such press are Securities uncertainties earnings made most the release and

GAAP for this of discussed previously to a measures. should financial additional periods. are measures, between along provide non-GAAP call, measures forecasting and comparisons the current that an results, to uses explanation of You to future nearest provided refer reported also indicators those on management These the a for the planning with non-GAAP reconciliation results materials measures and applicable today and we meaningful basis as

call that, posted will of investor.poly.com. earnings at Investor now With Dave. to All Relations our turn website our on are materials the over I

Thanks, Mike.

and XX% generated growth XXX%, were our year-over-year video We operating of for of I'm million, get right margins, saw and XX.X% in EBITDA cash $XX sales. to we represents million This driven to First, We let's strong by quarter, and headset the happy $XXX which for $XXX gross respectively. million flow. another adjusted and Poly. numbers. record quarter report non-GAAP the protected of revenues

level. the as at will parallel; and the invest for gets Backlog the to has done important in permit while changed details but that way our do record December continuing again future, Chuck, people our our flexibility to the at book the recognize will improve performance us talk strategic two Finally, products debt. our more customers about of financial increased in a by continues quarter grow, results, same our to permanently. time order to things in end eliminate work

back as first talk October, key CEO. In ahead. two call my earnings points, Let about the and Poly's on I me step road made

made that of company have in turnaround working fix the acknowledge operational is are has efficiently first At make we we been I company priority First, sure for My a issues. machinery both the I mode. smoothly front, Poly, focus to customers, our our of got a and to results partners about to moment. shareholders. we've issues this ongoing will but We've talk areas and tackle. rapid and also on our a of number progress additional in

is and were the a the the Coronavirus, world. audio. to a already has world in and nature literally is introduction And corresponding Zoom, accelerant, of the kind it digital and as the Thanks the Teams vaccines some especially that We vaccine changed customers, important habits already to Even clear working there sophistication revert high changes will a working not partners, do because I debate that reshaping to permanence transformation there's and was not a and equipment won't ongoing to volume hopeful of office transformation in usher capabilities. us change. In catalyst, an to to infrastructure will underway there. normal Second, return already The related enterprises of digital overnight, invented quite in many and return Slack massive increase a orders, businesses, about analysts Poly quote, that working of to investors, is with mean. build outs there that been Gear, change data normal a COVID of communications, of thought to to. baseline, they video critical disappearing. were and response in a the return step quality including talked has commercial believe utilization quote, normal. school and

committed Before world. already pandemic the throughout expansion COVID, just support and the demand certain XG tied to necessary types already The may data. it Digital companies remote infrastructure like working collaboration, spreading usage were these seen infrastructure to pandemic the education. accelerated of video platforms. to were handle has of verticals exponentially work specifically adoption and some distributed to Yes, have

that This teachers connect biggest virtual in the can have seamlessly gear, Poly's United school quarter, districts the for and classes. of some States selected students so

will hybrid devices will tools. the They key replaced million XX there estimate collaboration gear, offices that become telehealth that support rooms and their work define to facilitate video do will But transformation. professionals professionals I've that the environments. dollars. return employees gone half So seen XXXX, bear be for conferencing critical years accelerant, will will will will communicating. companies allow to those well. of also the are revolution. to two investing communications need XX% from am and everywhere the represent all Coronavirus office. prepared, to And to challenge working fully And a moment's than enabled. because need great fortune informal and the a professional one the those to a do generation conference manage hybrid Google, organizations remote market cloud-based notice three can years, the to adoption Poly. in trillion the from And verticals than in estimates in we properly legacy client transition both of estimate out. total are Analysts biggest Gartner work that's workers of in companies hybrid That's fully meetings. home, employees video remote so communications. post-COVID, the world XX% for their way anywhere than that, brainstorming, a remote worldwide, professional small The are have services they or audio abhorring pandemic less of million explosion, at work conversations we months, the are by from the to expects like because shows and in work. healthcare in XX% they're in two The via embracing is a Many million-dollar Poly, post-COVID XXX as And return to remote same roughly an phones plus or better more remote five other to of the that stipends convert, office. also that's Research over quote will analysis challenge, of professional I million by with believe we of data cloud this world, facing anyone. to long and people. want future life. what our tech. as agnostic Personally, be XXX offices also next of will around remotely, providing and or be permanently a thanks and of approximately expect office, to will are we're these out equip services Seamlessly or be so experiencing digital complex IDC partnerships meetings, who equivalent connected of from Gartner healthcare combining teammates these great as a Poly, has And acting a at just whether Video work, video concluded to shift else great remote that's opportunities Embracing worth be

focus the say, that change to Poly where to but massive people when need of people indelible. significant, we is structural every to All serve to that think comes work, strongest are for The it how in wish we post-COVID day to is and it. ensure position seen, the we we've and work, work, possible opportunity execute

leadership Chief on four made and product partnerships, discipline as three, and supply Chain management, two, Legal Gloria and as recent number relates Lisa the and Hoffman, a Affairs. additions appointment Public new Goodwin week. our who board including Officer, day-to-day on to operational Officer, distribution Bodensteiner, sheet Transformation I all started Officer, organization. fronts it improvements Chief the to we've Grant as as John channels a progress also place, generally of is are focus a Our chain in pleased four, strong areas ongoing level brought team We've key and EVP We've across last of solidifying at of balance management. Loredo, innovation Chief our with SVP of am portfolio, every ensure one; Supply cost made

we shipped. entirely as units about importantly which tools, product using we video P when happier book. are platform growing With prosumer at gear professionals sophisticated our and grade regard our support. those family pleased Series, announced from I'll need enterprise demand, anywhere have to even squarely As are our an grade be work new gets who Studio enterprise all order of portfolio, to any and aimed Grant

to be gear to our sell can firms, sold If want way to we sure, make same to Poly working ready buy to also to the are we them. today We professionals, have to lawyers. traditionally those law sell they

We to channels, our as us, are enterprise to business to and shift also they expand presence, how retailing they continuing support advantage strengthen because for while distribution a level work. entire be our competitive working continue verticals

moving and providing our support have partners and and them. we example, For are Poly often to many healthcare telemedicine customers they significant need

see healthcare, In and strong governments, internationally. continue both to to demand we addition from domestically

at court facilitate critical equipment judges, attorneys, levels other video arraignment Poly are systems conversations among For all defendants. example, and remote and deploying to plaintiffs

healthcare the government, on verticals. point and the finer a put me Let strength of education

is government K-XX XX% Our ways our reliability. XX% education are up customers with up their XX%, finding almost is the quality, the for need, use, began, products and We're the hands pandemic of growing with and healthcare business greatest XXX%. of ease up excited that is since into

need the are about in we and reduce flexibility speak going cash Being we Chuck to our deploying we this costs, more have defending in detail. us will disciplined future. creates invest to ensures for resources and to debt. Finally, keep our managing this to margins

wondering As the of it's at future I about here. of beginning for the anyone said call, work, the

they our We enterprises tools, reliably or any already not because couldn't to in whether COVID workplace. banded not toys, is be a make off for or and ever enterprise, individual need the or job anywhere distributed a the building the a thousands rip us. done, work great Poly, what that enable whether work value In around in than proposition service of better work, platform. on in is we to and people knew, That market Poly's clearly. workplaces there's the get products connect stronger from for order not scenario globe. For are gear

aware have to that, I'm Before we've have as the I about we're also over call before us. potential Chuck, headed much especially work turn and a has the say we but we a current how I come to of company, excited far to Poly I want picture circumstances. clear there at of under as as as do, am everyone quickly proud as where is is

Chuck. to Now, turn let me

Dave. Thanks,

particularly work a from was it video, strong quarter mentioned, were year, million, XX% remote a Dave collaboration. $XXX Non-GAAP driven respectively. video headsets XX% revenue and by prior driven As primarily was up and by XX%, and increase which professional the

We more a rebound year-over-year, prior voice, although also than quarters. saw down down which, the XX% in been in had XX%

voice actually XX% sequentially. grew This quarter,

likely term, to in continue remained However, relatively the at Service this margins office. not XX.X%. to is million, short revenue strong companies the with more return $XX trend until of stable

conferences, last demand As exceptionally for Poly investor several we commented recently, strong. products remains at the environment the

of a grew evolve December quarter. composition a in as result, hybrid backlog toward work. markets As shift the continues backlog to sequentially The

third video represents a of a book. result, now our order As

Although product improve. to in backlog times lead availability increased, continue has

increased to channel demand. recover, an with consistent, managed certain inventory key increase also We in markets,

traction, of to XXX of did our with improved Our units Gross QX, impact QX. we fiscal gain next-gen Due three for sell-through primarily approximately the in bodes sell-through XX% shipped well in by nearly last it endpoint basis This video continue solutions constraints, market in and video growth increasing points driven XXX% sell-through year-over-year, supply margins weeks to share however, QX. volume. year-over-year.

business. continues airfreight the impact However, to

gross we to freight by put income increased of water, million, the air the variable as represents air $XXX been as deeper more the remain revenue. XXX% we few in expect expect to Operating We driven an freight trends, on so able quarters. we $XX continued revenues year, demand higher comp but a for improved they ease due by of get year-over-year, higher continue primarily products to rates more expenses million, And impact today, increase, due to stubbornly of high. and to to not margins. have driven Operating

$XX $XX We Turning is $XXX cash quarter to and flow million. with retired short-term Operating cash. of debt. ended million cash and of the investments million

conditions. cash Given our balance repayment substantial cash QX fiscal market current this potentially than $XX million, to we retiring expect flow, a and debt on quarter, make more expected depending more

current the the manufacturers. supply Similar is of based our that many guidance. last to to both guidance contract our forecasts in including for depending control, units, and on video pandemic. can on our factory current The availability supply change headsets, Mexico voice Turning and outside of quarter, professional our factors from

subject revenue X% EBITDA the that addition, of typically is net understanding, million million. to range, Non-GAAP to in $XX seasonality, is this to week. revenues With we range, In Adjusted net quarter, $XXX of X%. is of down our $XXX fiscal QX enterprise And share. we to be to XXth $XXX million. $X.XX of to $XXX in million And expected to is million be GAAP the $XX non-GAAP $X per to have expect normal which EPS expected million. a

to outstanding non-GAAP XX% and be be, $XX shares million. approximately Our tax to is should rate XX% expected

that our creating items may impact our rate. this to Since benefit. in excludes there footnotes the As GAAP several and timing tax favorable earnings a we know resolved rate magnitude, materials, you've or in the discrete non-GAAP we tax quarter, positive tax don't providing be are are this seen the

We Before as set extend out the be our us work. I ahead. that to the that that that of key the a operational want shift turn strongest we capture were also to products, it's execution near-term the and being needed clear, point At chain. been the are of want certain made in We've the possible same want and we're our every a to new and operator made to that sure time, make We've way by Poly, addressed issues is call that that the improving business team. in understand looking We're the take earlier. opportunities supply clear, and we're created management Dave rolling I to position questions, to innovative additions we, there issues those all day. squarely attention, I fundamental

place one is think come. will tailwind time secular we remain this long expand to Poly, markets For a our in and for

call begin over Now I'll the Operator? operator, turn Q&A. to to the

Instructions] Your question comes with Amit Evercore. from first Daryanani [Operator line the of

Your line is open.

guess. Two, I Thanks question. my for taking

First margins. touch off, on Chuck. just March Maybe EBITDA quarter the

I think in the implication range. is mid-XX% the

it's is so XXX is call just is March for else So this the margins? maybe points basis sequential that all, on basis, you or what anything sales out drop a driving there would the or deleverage

several one to It's [ph] FICA there's One Certainly a for Amit. is lot the also has Thank you weeks kind million March The company. of - dollars for the line. given sort XX of the the quarter, question. of timers. it's expense reset year ads, our a XX-week

of side And expenses. the week so one one week. Year's week revenue have we New And on that, extra was the Christmas

are move to But of side. we those into So then that. we and revenue March, the margin those that supply be freight including whatnot forward, are next a the of kept. impact mentioned kind additional there's the on that freight of things and of sort lot as matches clearly FICA looking beyond issues There expect And of some year, resolved number challenges. a we offsets not issues chain

to should the return back historical margins. so And we

That's helpful. it. Got really

up I that is and follow-up, understand, to much side, and structural trying nature fulfilment, that their think just enterprises everyone kind really the in the seeing the how especially just is of in right how get to initial has you're just the much by one workers video now, may the struggles Let growth headset versus, of of running.

beyond video rates, you and just do and structural you think So those fiscal forward love those understand, the a to go how in about look you two basis? on when at as side, buckets, headset 'XX growth

Dave. is this Amit,

take to. that. he and a else in at cracker Chuck then fill me wants Let And whatever

is an to business think, mentioned we consumer and headsets industries, home. that's underway. or for it's From headsets, at to remarks, healthcare, what shift massive of look a our probably fundamental some much was I sort prime find what a pretty increase a the that. decline did it's in time. a UC people fundamentally, work context shelves. that we one pretty initially and Education of the think that pretty trend we on I already think seeing centre we're business. the customers, whatever grab case We in talking And saw could If accelerated from specifically really saw they that's prepared in a As manufacturing, longer-term government, I

very we want And may professional realize they some so that strong very, of to demand see to they continue people to the a products before. more tool, consumer versus as upgrade had that grade

on $XXX million is we referenced, What I the soft lot that side, a that's little see I don't long-term The that lot So think bit. comes probably trend, headset desktop phones, with actually instead. I become driving I of think business legacy of the device changing. become phones think those back a phone lines a to don't a a that headset those

a And occurs the long-term so that's home. that as good office, already pretty the I in been transition bet think in has which happening

On the uptick almost the prepared we're new thrilled video bit business, We're uptick. our Chuck massive. I remarks. mentioned little XXX% That's this in his products. in video a with seeing a mean

I video January January. a is in but geography, the the or in say, seen new Americas. products the into addition the a hey, We're July it think, October anything, if few is new the have delay seeing months by people offices. varies especially quite of bit And we

there's bit so a of And a been delay.

primarily is maybe one a I expects So, base these everyone a XX% world to world, that the was of video-based be converted million $XX And video. think be need conference fact disputing no fundamentally, which post-COVID that to rooms to prior.

video vary but two of headsets, the we factors And by the long-term both them between driven being macro are think and so I mentioned. trends that

a thanks Perfect, lot.

Amit. Thanks,

line the of from comes Paul JPMorgan. Your Coster next question with

Your line open. is

ecosystem. my region? by Can of inventory color what seeing around, surprises you you there how sort taking you us seeing of are partner bit out just the Perhaps kind of little you're partner growth? for give could call growth? your in you're those where for your thanks Are question. well accelerating positioning And Yes, a

Well, That's I them been of demand driven for also government wish us, lot certainly to a Dave. terms EMEA XX%, but there. tremendous and really we performance of the education. help video in We're board related had more in up installations, is inventory. seeing so across headsets both. That kudos almost would the by the EMEA,

the well. So and EMEA wait a on we where where the states, of referenced that seeing of regard been With major to see here systems there's quite as video a that's in specifically sort bit the kind school we're in of Americas, side.

other massive think the I to video despite that in And more So just uptick to go we're mentioned, Americas. of EMEA. on Asia-Pac there, a not saw the than and office I the a at what kind there's in has of same some areas returned dollar the lot as seeing based we so nearly more Americas the then rebound back broader the and but volume

to the, with at get what any And you inventory and what so can there give the services color Zoom the moment. and seeing driving cetera. those you're service us are et are whether And I actually you around, out your partners, aligning Teams growth Microsoft

they're both of down. tripling broad say They would I they vary are. in terms how

I terms as sure what So possible. to that if verticals of, jumped engagement. perspective, who's both more we're in terms trying as sort have we from them obviously of match any a I in would selling that it and into of characterize to don't want I much territory tremendously, that. say But by It know varies make of than global

the somewhat enterprise, is products, we're easier off, as to reality. time deployed support the enterprise this that sort adjustment much if of generation going it's slowly Services Is the comes tail question. the prior contract? last to a see end inside just long new wonder, frankly, of flat. Okay, I to to lead

comments, should do. got of going give I'm to more he's a Chuck because than detail, couple Dave, is this history more just Yes, add and then high-level I

the easier of the installation to a have less products. that lower to approach. plan solutions, been there it's sort we lot still sort traditionally that a that business, similar a of shift announced on-prem was lower had and into attach our for of pro-grade, manner of headset add-on rate. The add a kind our a we've an Poly+ the an primarily or on-prem be a services some so complex is business just So we to solutions our video cloud-based made to the cheaper When be much really of services professional or adjunct an it's services cost encapsulate that to bar, to simplify of to would in more much it, on-prem of

I device, as which own to but is bet, go still Our a bring the data want manage warranties, out there's to pretty managed going come be that view throughput. are services is them to we bet, COVID, with to make massive that CIOs think to of the a to your going good our manage is sure that manage allow packages a that and that the device, it, the that,

sort bet we in so the on offering our a got And Poly+ Poly of was and of to combination fairly is complex the the think past. Lens what simplify but we future,

the you new to Yes, I'll attach flat would they roughly year-over-year, Paul. down decline, with attach. when with that services was they're optional, the couple to service and before of opt-in products, Services easier just are was initially continue XX% to services selling mentioning. we use. rebound service Dave We video for install to A do expect to quarter. And much easier they're the were points prior start add,

issues as big the opt-out calls point over strength, can model Our that of fact have a is mandatory of and we did big Americas that they with Asia would the be, for job that competitors, EMEA, services customers and We've having across global a a roll attach arise. that quite take of now differentiation opt-out, that organization or used deal service. team phenomenal well. our out sort that where us worked That's and and

next going modestly. still into the services, be to continue the a to support, was decline do we'll But basic, just Dave over growth year, that mentioning, business. maintenance overtime, eventually we so core plus expect it's And services to our business the with able and turn

bit we're we that we here make we the think jump to One our for tied because a reporting software and platform, They're Paul, as Lens services looking our Poly information, to did, lighting all usage clients. business, that the sorry CIO at in. there's little information, the a back that combine the on sure other real the bandwidth into driver information, in re-org did of that

so was that long-term. has But combination. recent services very and insights of that a AI be we that's And think I kind how to tied to drive software

Makes sense. you. Thank

Thanks, Paul.

Instructions]. [Operator

Your Meta Stanley. next question comes line from Marshall with Morgan the of

Your line is open.

Thanks. Great.

be channel run inventory. still more and changes feel could have production you You of or of see. you'd capacity, rate of and production of additional needs on But just getting spoke And added? a are still just, capacity you're like kind all But improvements sense be to think, the do still you like on on to improvements where where both to do the just kind progress that And sense some Thanks. you maybe a that supply. you made. you're making at on then to wanted demand of a capacity

me me let address demand issues Dave, hit I'll color the is supply then Chuck This add again. let and first, should then

building a and point-of-view, a manufacturers. Tier some amount contract of of we've from supply money So and X our ODM capacity in fair with spent out

job quarter. online a like capacity. I than decent the of think later building It's we've I throughput up done would coming in

surprise seeing issues of is some things squeezes seeing little bit camera bit regard Number throughout to have with been which we're one. two, a also on a the to a that me. issues endemic IC are that's glass, industry recently. the we So like And number

changes got But I So, quite of to that. the lot We're all net I team, in we're be forecasting think tie that's net is sort that, to couple rapid out the a and we a of better to the get putting here. think about quarters. that do address place more going making through a that few to systems the

then have our up we that that we and our the manufacturers, own got we that needed. match to As of in the with throughput but as make sure they're components a lot now factory

with states of integration. in demand post-merger, the had merger issues our the primarily business some headset part we as side, On the

and a then plus. also We have active And I which not team taken to over We've well to there. this is we quickly. A repair ways that. go it, some of steps got at a Teams. point Skype Still and all the think But known very bit executing to hiccup, is a had an regard with it's

that the We we'll Microsoft have BB have to a strategic over sure focus. triple been plus. to and it's make I a say relationships, ways would go. we a Zoom But and I make all continue And down. want to we

And think there's more in sell think I execute RingCentral at to and a to Zoom a go real we solution vertically with with a and combination oriented that, Teams much that. of strategic, around need opportunity others. I there's lot enthusiasm on

add, just would I Meta.

done fixing job I supply products. think a chain good on the the we've historical

We of have a whole we've suite new products that launched.

enough. personal year new Two little new launching started enough Now those are video announced a more we make reality the we Sync a And new ago, can't a XX, The days product. of of speakerphone devices. is series we communication a is, really phenomenal of fast new ago, products. product we products

going some of to products. constraints And take meet portfolio Dave to the But our mentioned, that's it's the a while suppliers the earlier. so we're progress of little to to increasingly, a just we're increase to take we're And working think the team. the want. I with actively our us meet new production where for thrilled levels demand. to would while get capacity production there, customers demand, add toward to going the looking with I and that, of our But

we're new retailing we new marketing I in time SEO business place, have quality there's for to put executing through do potential did, products ready that little on of a We very e-commerce competition. same in they it, team We the we the about lot joined, we through of channel. an excited I'm high around product, those to focus our sold, channel. to a there the and have be sort and with the have man, got got hired, product but a upside, versus but

comes Northland with the from line of Mike question Latimore Capital. next Your

open. is line Your

health education, there. verticals, a the Great, just they're care thanks. much to point? how you at quarter credible this bracket on contributing put Yes, little I revenue a congratulations, government, guess on around, can

verticals. a less We of meaningful, break a It's it's but specific majority it's the fraction, don't out not our than a XX% majority, it's not revenue.

So under all three combined are XX%?

am it's exact would about I know XX%. don't but I numbers, estimating, I approximate

then of we fiscal And think for kind it. 'XX? about Got should tax rate what

look We in that when QX, mid there's in low provide in low-teens we discrete contemplated the of prepared guidance. think teens. provided structure our we interesting And last established could to It's 'XX in in be in to meaningful future, and remarks. beyond What's items that a global couple not the as I the year. the is benefit, tax that's a as this it the specifically, should

you And way to or much constraints. miss, you did much sort I bit little a you Okay. a had then, guess, - put I revenue more constraints, talked guess, how of could supply revenue of the because how there supply constraints? without is supply another about way,

gear. wait separately. today got very pandemic, relationships that the a long-term And break are people someone because whatever sort prevalent for would other we in the that headset was equipment the where So, I get. willing two of customer early don't to out say a demand product possibly there's that perishable they needs and where or the right right there's could are flavour,

demand of representative want get is backlog immediately. Our fulfil customers that can our that we

lot lot in losing we term, It's that, So significant catch of work amount up did we still catch of a demand of I QX deferred I the of a were some. up in is But to QX. quite wouldn't they a we're beyond. and in lot and and there to don't bit do a being perishable short have a shifted But losing say think demand.

Thanks it. a Okay. lot. Got

Mike. you, Thank

from the Company. comes Pate line of question Cowen next and with Your Liz

line open. Your is

where terms Hi, my they question. thanks Chuck, right in would for times, component lead say of now or taking are [indiscernible]? you

times some could same us Well, XX competing lead are that be example. or as there some are months, X many for the products an of ICs

it's been stronger go our has been demand great advance. there's orders year. the to challenge The with sure. supply made in We been we've we'd a well, chain, over lot have has been increasing of to for than And a place more improvements, much last the we've working suppliers anticipated. And

And But stronger we the the times here - that solved, as so even sit seven we're of in we just, we it kind issue yet demand we supply nine we have the them the than when think are think is quarters, some ones I today, anticipated. normal and take, can't we in will eight, of, components, addressing weeks. to get lead other we several

gross freight quarters. about over Thanks. It gross up think ticked margins. despite we And few on this bit margins costs. the just quarter, Great. the Actually, next even a

run a of be on Well, expect mid-XXs, does could the would behind is I rate. A we as low-XXs I the lot think, product us. when It that pandemic it be should in mix. depend

we I As the like producing But big in we QX, margins. And our mix. one of product freight. mentioned Dave driving we March we're would into mid-XXs. few on that And have would next be of mentioned some new model, that I quarter is really next overall But we our A portion a In timers the depends high-XXs, just hitting product about items good this quarter, strong plus course mentioned to feel this are it low-XXs. defending earlier. as look mix in quarter. think quarters, and business the long-term of it products we other say that expect margins, our of lot could the low-XXs

Thank you. Great. Okay.

Liz. Thanks,

time. questions Mr. will the call turn back Shull. further over at this no are I to There

soon. to again, to for again us. the talking it join all Thanks look everyone time forward to to I look and taking really forward you

office it's continues. your as it. between appreciate these anywhere days Really the from or in One or pandemic of hopefully in home

and concludes for you Thank participating. gentlemen, today's conference Ladies call. this

disconnect. now may You