Rambus (RMBS) 2 Feb 212020 Q4 Earnings call transcript

Welcome to the Rambus Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. At this time all, participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Rahul Mathur, Chief Financial Officer.

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Luc our results, will turn now of will an I Q&A. Luc of follows. to the with to call an operational to for order future to today continue billing start our such and then discuss provide including will quarter. financial end and business. the I the periods our will Luc? our over we guidance of license with performance. investors as will We The be will call better into insight our metric provide operational give overview as overview

markets. and one safe data advance performance automotive and challenges center, IoT connections successful for most exponential was for infrastructure. hardware shift limiting across on year growth XG, in Thanks, in ongoing company. and data intelligence demands remains in systems the led to across of widespread good The along the cloud afternoon, a an everyone. and advancement artificial design very mission data the Rahul, usage has the and the these fast XXXX of increasing critical both Creating to with

As profitability to finish across we Annual In sustained across We a investments that Rambus the and solutions This products demand no help full our our continue security in to data of strong cloud, lines. our million exceeded primary earnings. with ideally the great fueling activity. generation see critical from targets. enable with and are up product center generation provider driver delivered for business to our continued expect growth the With and profitable continues ongoing and of address execution global ahead and revenue improvements and a suited in investment year, our businesses. to expectations of QX, tremendous our for all that We we in the the industry brought cloud the chips year million line infrastructure, and demand demonstrating data $XX.X is IT XXXX that performance revenue is for operating improve surprise will in it customers performance be and these leading to cash that XXXX of grow. beyond. we was this had in of challenges. With $XXX.X XX% guidance roadmap, cash from poised

in outpace the driven steady was overall gains of in This allowing share in guidance revenue Annual at increase Chips. above market. of up now well product the DDRX XXXX. by this year Interface the businesses, significantly was provided to another to year-over-year growth the XX% market Memory Turning for was our Investors us record finishing growth Day

to inventory following As gains bulk market growth believe begun of continue in the We in as This we to in further expect was the in with share. half. adjustment year quarter up previously, mentioned this our the there levels the and completed has build the have first quarter third returning fourth we normal. a been correction consumption short-term

customers leading and in for qualification with For CPU memory the our DDRX, position we are partners.

the customers. are early We data shipping with to our center and sampling with chips cloud DDRX suppliers of all volumes major DRAM modules

the Looking value forward, for companionships continue the our development to invest DDRX to portfolio. we expand of platforms in of

and development In annual as Silicon applications. our a demanding architectures and year, edge. was for year memory the and we of business, was performance win drive revenue revenue. cloud with overall Logic new by IP teams their for innovation alignment and deliver roadmap subsistence, in for momentum in and best-in-class XXXX are continue on integration design trends former by data leaders supported up Northwest acquired sold edge solutions we This XX% being are and partner. Additionally, both of targeted the a to market Verimatrix strong actively continued XXXX center, successful the ecosystem forefront rates and XG run ending with with

agreements multiple license Lastly, the we year. and manufacturers signed throughout renewals DRAM new SoC patent and with

we our agreement license additional relevance and renewed years. with our CXMT DRAM agreements patent the with previous for Supported ongoing testament an Micron and of these A&D to addition great In agreements to quarters, strength our five the are programs. growing discussed by in also portfolio,

licensing in roadmap solidified a agreements inorganic we growth. sustained and these to secure, foundation cash our of product allows invest With generation have that fuel us

demands of hungry the the data insatiable research center market forward development. growing Looking performance in and over our applications and drive

and We are to challenges memory the the produce continue to address fundamental industry that critical of products and innovations data. accelerating

begin XXXX, last over the am the we made progress team years. the has steady As with few pleased I very

closing, opportunities am customers of ahead call and will has that, allowed and to continuously have focused With In results. This I and of improved our excited Rahul us. I over to proud our company’s performance. operating the Rahul? shareholders. discuss us the serve turn financial better return to We the the capital growing the quarterly performance to our strategically business by

like with Thanks, financial I’d and for quarter results to Luc. XXXX. fourth for begin our the

Let me five. start with some highlights of on slide

in financial very ongoing the QX. with we execution line cash with to make as share revenue XXXX with in performance the year we program earnings We great the solid our in sheet. expectations and and expectations. with year This We are quarter high mentioned, implementing million in on long-term of our we delivered continue and implement well-positioned, a Once continual pleased initiatives. the very Luc $XXX.X strategy. $XX and As financial on after had QX, the improvement ended growth was balance after million again, repurchase ended end in -- coupled results at progress in results delivered strategic our our

and our our initiative. solid results us discipline on affords execution has operational continued a and our sheet strategic Our that the strategy support to strong balance financial yielded flexibility

compelling and market of profitable well-positioned in We for in opportunity us, are front the beyond. data cloud XXXX are center and on growth and focused

billings fourth we don’t and talk licensing royalty our Now let revenue was revenue million. primarily range. expected in you $XX.X quarter the me to we our always in with billings through difference million, quarter was million as some bill revenue timing, line was for recognize while the between The relates same six. customers. $XX.X $XX.X licensing slide and details revenue Revenue on Royalty

our Going $XX.X into million, was buffer consisting additional of detail, business. product our primarily chip revenue

IP Silicon other and primarily million was business. $XX.X our revenue contract of consisting Our

across has there For our at million the business Day of been $XX our in Silicon expected in Strength enable IP had almost year we is We our license billings. in IP and This strong our quarterly year. revenue to roughly reflected to Analyst twice business our is what enabled meet that streams revenue particular us business. us Multiple in expectations variances a QX. any XXXX. offset fiscal

the saw are we gain increased generating and improving margins while gains continue market We share. we and pleased to cash. XX% with as Notably, also significantly these execution made our product outpacing our revenue

expenses revenue portfolio. convertible yet our a over of XXX, This of of interest targets financing Let was We lower licensing expectations we which ASC interest associated continued non-GAAP expense primarily we slide on on for focus profitability align our our our expenses incurred We by $X.X the not expense, Under income and quarter income of Operating million interest income growth me continue related done statement to million. XXX, related at Total notes, quarter adjusting have the payment. efficiency. lower of interest resulted in operating quarter, We the million. you programs markets. million notes. than our the and with non-GAAP offset seven. in previous product other including came the $X.X COGS components to fourth to million as due our than the arrangements cash headcount have many incremental fee our quarter fixed investment but for income recognized at After consistently our years. in with return we through past the exceeded recorded in through on for XXX walk again $X.X $XX.X with ended this we as convertible our operational were non-cash interest on $XX.X to received

income With XXX, $X.X disciplined other continued execution $X.X the the would net focus rate we was this quarter been of component expectations. for pretax an ASC financing significant related XX% our flat interest above non-GAAP have for and delivered the to and to was nicely million. profit income cost assumed million interest Using of Excluding related on income, non-GAAP expense. that

we what XX. despite at than Our better challenges presented XXXXs Analyst unprecedented expected by Day, financial XXXX COVID results for are substantially the

are by continued delighted team. execution our We the from

Now let sheet me turn eight. on to details the slide balance

This year cash of $XXX.X total the totaled year’s repurchase year-to-date million related was offset from above million. of in $XXX.X total new have million million, of million we equivalents very our full cash to quarter Cash, operations accelerated past marketable last by sheet. year’s QX. million, as million from facility, of million. above share down brings was we flow strong of from $XX to Over $XX $XXX.X $XXX.X a several last built free well and cash $XXX.X capital with cash the balance securities previous headquarter $XX.X expenditure the years announced well operations program Even

on revenue deliver operational to to number us to QX, AR which the It has to allow unbilled this cash entire bill royalty-based on the no company as to I we of operations of contracts. in metric this as that expect obligations. of agreements value we worth to doesn’t the licensing contracted important topline and from the value collect quarter. future each note the existing recognize present continue trend related reflects we assets that several which future. to down, for execute strong our performance continue to end these represent arrangement, have and the $XXX continue have is licensing we efficiency, million, for net deliver arrangements At As expect have customers

sign over extensions others, to variable we agreements agreements As to take as new renewals we revenue and endeavor opposed to upfront. that renew could transition allow time and to us

agreements and dates at existing previously, renewal two agreement in CXMT pleased with existing Micron beyond terms. As year the for licensing the licensing that financial we QX our last we to in Samsung announced announced we September were SK our extend Including announced DRAM Hynix. and extend with next

and these relevance Our new success to and portfolio. partners as with in ongoing completing of strength patent contracts the the our testament serves existing both

recognize the million revenue Between million basis to million. CapEx chip buffer quarter headquarters expect in of Full strong $XXX.X of continued Micron $XX is $XX Going the $X.X million extension this growth, was extension on revenue XXXX. first the in depreciation million $XX related forward, in for which was cash $XX.X licensing and new quarterly and XXXX. we growth Fourth related to starting quarter poised free CapEx a was was We year of million, quarter. delivered XXXX to building. our of our

new XXXX. I year million to as less for expect XXXX of allowance offset refund CapEx the depreciation $X also I $XX ‘XX -- forward, will by expect roughly headquarters. related Looking our be spend tenant the than full to our be of of improving million

slide Now, our let me turn quarter on to nine. for the first guidance

materially differ am forward-looking reminder, from our our reflects about actual I review. what a current As assessment could and to results guidance

the providing reflects financial to outlook is operational during certain metric billings, amounts licensing to customers on for which XXX, ASC differences. also under our we invoiced the information period have adjusted that been In an licensing addition

under As first XXX. quarter we with we information revenue would to royalty on reported what between the XX we $XX slide the closely million. revenue Under as ASC historically million in billings our XXX, deck, ASC you see $XX correlates in licensing provided expect supplemental earnings of

expect and We royalty $XX between million. revenue $XX million

expect and million between $XX $XX We also million. licensing billings

with thereafter. the the the a with licensing projected buffer patent term inventory guidance for to growth as mentioned we in Our royalty will Micron, levels contract normal expectation I reflects chip previously, return see spring consumption sequential extension

to and between million ASC non-GAAP COGS be to be includes results to cost $XX expenses, continue for XXX, profit. first in million and million and quarter million non-GAAP which expect We $XX $XX we between total invest operating programs. as $X is the QX expected Under operating

For expense million in to to XXXX. exclude expense, and $X.X expected non-GAAP of of interest to ASC XXX, interest expense, related includes interest we approximately and income the $X million other which which related due be notes income

the to rate our jurisdictions. roughly pro The X%, expect to XX%. rate forma statutory tax in We rates higher XX% of than foreign at is higher tax remain our due consistent the primarily

As cash pay our agreements primarily licensing of roughly partners we tax in year a million driven with Korea. by reminder, each $XX

taxes $X non-GAAP be We expense to and an QX. expect in between zero million of

$X a $X.XX We expect that bottomline share guidance profitable provide said, we our are shares This beyond for share be comfortable non-GAAP with and consensus of outstanding. the the XXXX. don’t we QX $XXX to for million diluted to analysts’ basic With each count the you of QX, estimates between leads and at quarter quarter. and while topline

While continue our any us broader long-term currently industry. our product the are for and continue near-term estimate macroeconomic reflecting current conditions will gain our predict, we in strategy to outpace reception, of consensus semiconductor share in line belief, will to to with growth difficult are

summary a with slide finish me Let on XX.

of proud in macroeconomic are by performance team We the environment. our excellent this unpredictable

made have several and Over substantial operationally we progress years, financially. the past strategically,

our and support cloud our We to our and generating sheet, opportunity, consistently cash balance growth portfolio delivering data to shareholders. our value the address have long-term while and improving center realigned strategy,

represent in the years. the beginning we expect actual coming see Our of results growth XXXX the to

we back to to I will again Before would the employees and Everyone, up families. and uncertain I first during their yourself our call turn begin please our With Could call I of open resilience and once please the question? stay care to thank our continued safe that, Q&A, take for your Q&A. teamwork Operator these for execution like times. have

Thank Wells you, from Securities. Mobley Fargo Your Instructions] first comes Rahul. [Operator Gary question with

You may ask your now question.

of buffer in all the for question for and Hey, guys. chip execution wanted tackle the on first on throughout outlook XXXX. XXXX. sales the the I my the taking to Thanks balance strong topic congratulations

not to about Lake utilize mass large am its your channel Thank but well I Cascade of of rolled of of and and you. DDRX? particular what increases process if realize does impact Intel channels, count to a that timing from How mistaken, that XX. recently will your as I assuming is memory that do. portion assessment for them out not growth their that customer then related shipments Now all the generation every

your for question. Hi, Gary. Thanks

by will saying… So start I

Yeah.

the on At But you design between customers. to buffer grow growth And our going see with in in has to footprint year a Lake, expect product that wins … in been Lake. continue as on market. and we grow as Skylake the our we were was for what we be DDRX, to DDRX is said, with to improvement a last you ones continue that first to remember, introduced the basis positive on share we side. Skylake, Cascade great Cascade us there as grow well better transition this introduce one XX% were to continued it We to is chips. our transition to of in the going and those Cascade this for and a it in to had year comes Lake the current the that year, be chips expect because -- us invest was version When first than market. we to

We old they that to start year. their customers. modules next from expect, we have orders DDRX shipping And to customers received build volume who small ship to

years. market between get to But expect towards first that in to to that to not The over for three XXXX. gain this is going share the DDRX in market last established of the following orders year. the happen We we before DDRX expect crossover is the market and end trend us continue XXXX we a the and good

the and in XX% chip every And category margin that not for trend about Okay. quarters. category crept revenue to and up. notice precede three product was high that business, am quarter, If to quarter it to gross up buffer XX% I fourth or in each that even mistaken and that continues related Thanks, the the help Luc. I can’t

maybe if just And that with little can buffer you detail sales? those what’s more driving margin gross that so for us a stronger show chip

is chain control that say discipline. to improved on stressed good supply an a continually see which having keep allows of discipline type this that very We yields. over the the the under insisted last that for really few side. have operational margins as high high products base quality us We great a Yes. that side you cost on That’s margins drives we to We a that our and market. question. so those operational This pricing and years. in products And operational

your It’s over kind the at words recognizing Rahul. Thanks for the first Hey, very beginning, Gary. performance XXXX.

a cycle we I that kind as where think well. on range. XX% I Obviously you from are product-to-product, expect the long-term as we ramp basis, in margins in of those maintain platform-to-platform, gross margin that shifts

I strong in that think our of improvements also of margins we to performance, our terms bringing Luc well value that a show the quality. to are mentioned lot the partners as as

is, the the you think operating thing while product other very what last high gross have to seen with I as that, years those and margins pleased been margins have dramatically been we maintaining business, have is well. I able our improving over also grow

you pleased and been that it show flow. So very have our see with we cash performance up operating in

Thank you.

comes question next with Ho Your Deutsche Sidney Bank. of the line from

Your line is now open.

and know and $XXX revenue EPS a and was am and the adjusted million above for on $X.XX, the that EPS that XXX, the taking for imply Thanks if ballpark? guide revenue QX. of I billing. It over you to for wanted similarly Is in to just based I make $X.XX thanks quarter. $XX XXX, ASC follow that XQ replacing above were good Light would sure congrats and ASC but Hi. don’t with licensing I on questions

your ASC that we very and close to think were substitute much as to reported numbers under reported from the you math, think, under we do I numbers numbers historically same you your if do. what you revenue XXX question. provide have I get get are have the to ASC what XXX. that if and Hi, I But we licensing royalty billings Sidney. Obviously, Thanks for were only

and Day you the than good a XXXX, for One, what that category, number guys and you think of business not question, That’s business, which maybe that last Analyst us us know. XX% revenue right versus how Okay. And the that. we gave thinking, each you follow is, in range what rate are two, how of within start for to and by better organic should of in the inorganic, base IP XXXX? Thanks. of to specifically for much maybe sense did but you question you XXXX is up quantitatively? to follow that related about calendar Silicon position a in the at give -- a much obviously, and is up My qualitatively to expectations term an to growth grew Are idea year-over-year. segment longer

questions. of Sidney. Hi, Lots

XXXX, Let I provide me terms numbers of the them for with time. XXXX. I see quarter each and only if in am that one for consensus remarks, a we comfortable our quarter One, I can one-by-one. bottomline guidance as on go prepared at topline through With mentioned, in for annual said, estimates

course you nice over of If consensus the see would growth you at look XXXX. some would estimates, fairly

think business. again I a going to that’s chip from predominately come

I think of XXXX business growing million from revenue like in our something $XXX XXXX. chip analysts or million $XXX product million $XXX have to in most

structural the saw I step think we is in licensing of we consistently our significant licensing downs XXXX that, represented a of from the that perspective, said last program. QX what patent

licensing past, So roughly years several in XXXX be expect I to flat. for and patent

there be partners, between should a year, in well as reason, new that with So at $XXX process as renewing million the about perpetually range so year that partners. call is $XXX $XXX midpoint. a The million it were and a of our somewhere signing the million

kind that $XXX on just several the million structure timing the for we to of variability, of but so renewals, years. some $XXX to see stay and patent based quarter expect licensing million And in

reminder, and extension and the now signed As XXXX, as mentioned, through Micron of with Luc end them the pushes CXMT we in a Micron XXXX.

terms just looks major us is that comfort in of like. after what next have that’s for the So XXXX renewal and number we why

revenue and then patent remainder at business. look product the of So Silicon pieces is licensing, in terms those then, the IP if you

structure the there billings. mentioned our closed of we prepared IP because I in our up business related really as XXXX in the our of $XX that remarks, of, because as about mentioned, that million Now Silicon and is to acquisitions agreements, you showed licensing in in XXXX,

take a business and it certainly million very other, to IP in if provides our for range at that it Silicon of So $XX XXXX what you discussed that’s we and what much Day. add reported the Analyst contract we

For the majority the growth what and benefit represented of we was we certainly that XXXX, saw in inorganic growth that that’s the the there saw in XXXX.

Going to to business see forward, the double-digit like I’d this continue grow range. in

as I there market a great great focus to differentiation, continue think particularly, growth. I narrow think, where opportunity on both support for we and is security can and we us, into have that we our memory markets

So, hope all there. Sidney, I questions the I you that answered have

Congrats guys. you, Thank Yeah. again.

support. appreciate I the again. you Thank

Credit comes of line Your next question Pitzer Suisse. the with from John

You your may ask question.

about I cloud about of competition in business. again of that’s do some afternoon, me your bit the to for mostly share correction that’s am you Luc, kind the up Good results. there’s the inventory talked a ask out. Thanks this March of QX, to relative with think in from to clearly curious continue Luc, in year product Yeah. prepared letting revenue your side QX, guys. for heating buffer your the Rahul, on and March kind solid ability growth playing capture comments and memory Asian we little how question. being congratulations guidance

to think over competition next as curious how of years? kind about are several you we So the

good That’s Yeah. question. a

resuming. inventory is in we run, behind the as We short said, see think correction I the us. consumption So

The where to us first the introduction had we design on Skylake. the Lake of step is to use win have for market Cascade shares better we

to QX. grow revenue beyond So going that’s the

of DDRX, the to year. the And in on that, happen DDRX new of to than the dollar of every product, the the end towards are on going we is module the DB is the finally, us the that thing second where which kick especially memory products second half in contents is year higher initial demands kicking introducing DDRX family, The is the to are going year. this contents, in we

continue allow So series have year we trigger us quarter-over-quarter. will points to throughout share a of to the grow that

quality in without we and generation In based of ship any terms disruptions our share the very the gained we of in early new early have with ecosystem started way with for ecosystem these market, of of on and products, the ahead we products. ability next are on performance on products competition from current is of terms to products engaged feedback that that generations the the development the our very, have we

makes these that see buffer this are I that and is, add longer run, So new comfortable. cloud by feel the would driven us chip being What guys with to in to there based the play architectures potential we for we of expect IP that a type the new markets. of and role on focus are key we type required have as well on products the the

to generate So we see go that the steps that to through growth. we have

did as you on growth a quarter got for you the accelerating. the ASR great follow-up job but Rahul, guys in have then my And revenue Perfect.

goals that relatively CapEx sort have for the think kind balance requirements of just ‘XX? potential come How I versus M&A, here, looks cash stock do from your ‘XX use around also outflows frame of corporate know but of ‘XX. cheap, down I we you think other of but about in the still

Sure. from it’s a and John, question you. great great hear to

We have of been capital very consistent in terms our allocation.

is continue come XXXX do help show I’d then to our the years out What our us you flat cost SG&A to I show is of grow to organic very very roughly continue company, and the specifically to in in have and our product kind to and that products continue infrastructure have with strong at our that a spend. level, to businesses. take around first P&L IP but will ability maintain to up seen like and invest of growth. growth to pleased in for in R&D, in been The support specifically

on goal invest topline, that really absolute the the bottomline capital licensing that in to on looking seeing to behind come. is as growth first we forward growth, organic that allocation from I continue and now both as a am to to the So the years the us, perspective well in have step-downs from

we that at perspective allocation thing capital second growth. inorganic from a The is look

specifically and the Verimatrix our are terms the that acquisition engagement. have We we customer supplemented Those XXXX, complemented pleased did with of transactions you Logic. very offerings seen nicely, have and of in Northwest business in of in terms very

it of as seen well. terms have You engagement employee partner in

we continue you that opportunity in firepower different a very significantly certainly little relatively with to of would that hand we for acquisition than have size. be So on the that’s expect at leverage and bigger we looking terms our active cash company have of

be have terms to But of in But continue strategic an at as there. and any transactions. financial just But fit. that ambition we operational are depends We well. of to and not course, it will will that larger do thoughtful look what’s smaller very on things continue to certainly

The have have is to capital shareholders. XX% of third to What return perspective flow our allocation we shareholders. from XX% our talked free is cash of to capital priority our a we about back returning

at consistent What flow capital. returning what a from If but cash the operations, is you share earnings fantastic and presentation, in deck our cash also see up growth now, our investor over you free investor free look presentation, per see commitment years. the to is past that several we cash not that you have flow

at part So, we share so program repurchase announced allocation. QX a announced that share QX, capital as $XX $XX part our to as as in also a program and our afterwards a results QX repurchase after look in we consistent continue accelerated million you noted, of million announcing of then

not and too is answering your that John. hopefully, in complete So, complete hopefully question,

Rahul. you, Thank Perfect. No.

next Your of Instructions] comes Capital. the with ROTH question [Operator Desilva Suji from line

You now question. ask may your

on year. the Hi, to strong Luc. the Hi, Congratulations Rahul. end

are guy buffer of come am -- curious, feeling you AMD will -- your persisting here? earlier. half memory if the about you business. I about there, contrast the second of cloud So talked Can and like maybe maybe questions in the helpful it a position, ‘XX, Intel out kind versus difference asked that’s have the element talk been whereas digestion till you the your Intel, the about

question. That’s Yeah. a Hey, Suji. great

of We ships these to the guys. are who kind cloud agnostic processors to

cloud space. little stronger are in the strong the are server Others with guys. Some with

them indifferent of continue of strong it’s processor in and or have whether as we kind as this, -- that long Intel manufacturers, of all AMD relationship are grows grow all We share the kind engaged to we market with this. to immune and to with it’s market, are we

ramping. So start going happy that Lake Ice we are is to to see

We as between our I relationship the are think to well share happy two, AMD XXXX. will and we gain have continue with to in

And to That’s redeploy able R&D helpful. coming Okay. then down. OpEx being think Rahul extent, talked to employee count and about the some I you

further or there, Just growth you just what investments I emphasizing the trajectory? redeployment am there and we any are to into the is what OpEx understand investment your areas are focuses opportunity wondering understand so

Sure. Absolutely.

spending So certainly more of as cash, it’s well IP. Silicon where our in in terms are products we in our as business, growth

chip be related continues companion well it So, products buffer business on DDRX. to chips the in to the program, the as as

that’s help in think exciting Suji? come the for an question, that Does your that I us grow opportunity nicely. years to answer business really to very

are you or Yeah. No. reaching kind I just whether steady was a in the opportunity redeployment there? to more of want there state if understand

investing IoT, markets centers. share customers markets working markets. in is we saying you very of cloud, focused attractive, high-growth are we hearing portfolio XXXX for Luc. our high-growth keep that at This listening are -- we us Day about in days is us this have is AI, Analyst and that, that’s and The auto, a these and and are Suji. we explained gaining One Hey, where our thing data nicely XG,

use of high security. them interface All of use these interface markets of speed technologies, technology, them speed high use memory lot a all

great our we the focus really, feeding is And to background these us. happening really thing activity also in product is have been as we for portfolio, every growth has that have us. So other good the for that a targets high we focus is And this the that market potential markets our other.

IP portfolio. Our activity product development and in we markets, our products develop for patent feeds licensing IP versa development our our our what patent feeds vice feeds IP development those and

that conference. those So last market cycle we developing growth circle to virtuous And have markets explains gone markets. activity virtuous demand continue have enjoyed and those other we that and we IP for to the focusing upcoming having all into a of high this see high between to that address the year growth

Okay.

We explain will you. to

Luc. you, Thank

perspective. out. years small the I and invest dollar SG&A try you calling a add from what for apologize, program. is new normal year might years we longer going as see you In roughly and small out, what XXXX, see the keep is, every growth a I to continue will this to was flat I term increases related percentage in But in you spend I’d are R&D on Suji, expect basis think that, a we is to that will to what is

a I but XXXX. might as our more continue down, as products, get see you strong margin would gross saw tick think performance perspective ship margin. you operating delighted we been more have the with to margin gross maintain product like that from in we we products, to overall I But

Thanks, Thanks, Okay. Luc. Rahul.

Suji. you, Thank

time there Luc the no further questions. hand any this will for call closing I back are to remarks. At

who forward everyone and Thank safe New for joined interest great you has with hope in you to you. you and speaking stays We healthy day. continued Thank Have the of your us soon. today look a each and time. again Year

concludes now This conference. you. Thank today’s

disconnect. You may now