National Instruments (NATI) 30 Apr 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Q1 2020 NATI Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker, Marissa Vidaurri, Head of Investor Relations. Please go ahead.

afternoon. Good joining earnings for QX our you call. XXXX Thank

President Executive Officer. Officer; today are Karen Chief Starkloff, Eric Financial Speakers and and Rapp, Chief

We update take will an business start then and on your our questions. with

including We momentum, may differ reduction public of changes trade allocation this fluctuations regulatory from outlook. in inefficiencies, plans our position, the and to factors, profitability we to COVID-XX forward-looking global numerous growth materially During virus, the exchange plans manufacturing disruption strategic you rates. the accelerators from that large any current statements adverse customers, and of plans, direction, our in conference or effective future objectives, course regarding by revenue focus, foreign capital concerns, expense results and in and and caution fluctuations, shall economy, technology dividend be call, statements and wish impacted make further changes environment, policy, any statements, vision global related price just negatively including are our that overruns, effect market uncertainties weakness and our health tax events expense could actual such the predictions

differ documents factors Securities that the XX-K could cause the important to from company you actual with February contained the materially XX, to the those forward-looking on filed statements. refer We annual report regularly contain documents and identify and files including Commission, in Form Exchange that company's on XXXX. our results These our

are our release this GAAP measures most comparable ni.com/NATI. of our financial in call disclosed non-GAAP press disclosures to related reconciliation financial the on in A measures and or directly contained

months, revenue. to our cadence, non-GAAP which $XXX within to on on adding reminder, of more a of relevant XX In was To of we million closed to balance. to AWR. subsidiary the divestitures enable acquisitions currently and completed use exclude certain a to sale we cash the will impact AWR organic X% January that last measures XXXX, AWR approximately refer term approximately refer As compare, the includes our XX, the

prioritize of rest and to conference, have safety as addition, XXXX. in-person employees, the through This made hear our we shareholders continue team investor to conference communities, customers. gives directly user you In our includes customers, the we events Each the of with in to offers leadership decision NIWeek. NIWeek, annual cancel from conjunction our the and held health year, access to our our opportunity is our and which

to connections detail format, a how reimagining share are these more soon. in create new We I will and

in to virtual at conferences in For We with virtual we of will June. look America and conference speaking participating the May JPMorgan the these upcoming you Stifel be now, Baird, forward Bank in and events.

turn now the will I Starkloff. Chief Officer, call Executive Eric over that, With to

your appreciate you We staying we and taking Thank and families us safe, good time hope you, you And afternoon. to join Marissa. are today.

in the I this QX with we commentary today long-term start are it Karen far on Given QX our Then provide some commentary the unfolded financial circumstances, will on our to before are seeing crisis to we and strategy. will handing update. over how what commitment and so for I how approaching

COVID-XX communities The our a continue and to and dynamic our of the priority. employees top remains health and situation safety very be globally

we of work have my an so exceeded have and a our evolving months, at Over productivity the level. that majority performed swiftly high and for past for our the incredibly from two team level employees home achieved. global responded to implemented the crisis of has expectation We far,

physically also interactions have communication connected apart. while adapted and even to remain employees customers direct We ensure with are our and we we

innovation strengths on the XXXX the differentiated of very diversity of business the software uncertain, While of is remain core our the position, highly and full NI clear, our COVID-XX impact people. of our

today, areas and strategically are tests opportunities before, believe in navigated position we a growth that customers. stronger we with a a have position on I tough stronger of for are focus in times also remain in structurally. We priorities our strategic

In key to in are drive principles this our decision-making. time grounded we of crisis,

live XXX-year will our plan. we First,

While and we'll decisions long-term do framework to is all to for so of well term, our served our value customers, adjust horizons It short with we stakeholders, commitment time and this. facilitates decades, the our times to in has This communities. balancing a and important employees, particularly delivering shareholders us objectives. our like across

are and our COVID-XX. nanofilter to front crisis. who Second, extremely to critically lines production a global help applications this technologies partner in our of to up with as for proud I'm and of part do the ventilators, their of important our technology to includes of assist continues company our treatment is new applications one. virus. research step and like The we lifesaving this This through of customers masks the work utilizing prevention a fight customers will ability like numerous crisis and on

challenge with to respond the will innovation. we Third,

than to interact. broadening more Now be customers, we how a of while to supporting reach our to especially new challenging presents with in opportunities ways remote customers the we applications our us creative, myriad adapt engage virtually also ever, test ones time our need our and new software. This with

critical to is intent and our finally, maintain investments And capacity.

while marketing reducing R&D, our strategic other sales, expenses core investments discretionary elsewhere. sustains plan capabilities Our and in

come our in investments to our stronger people. out strengthen crisis investing position to We the continue are when committed ends. These

our within employees in and the in to resiliency QX, am our of from turning I proud our business results QX. Now

less And $XXX quarter. reported organically, within and approximately our orders had was new delivered X% year-over-year. to X% million, globally. revenue range. As in up execution team year-over-year business up down you strong yet were expect, guidance Organically, ways, revenue first year-over-year our QX, across X% our might adapt our of than the to In we

were news APAC down in regional in were the As Greater up first X% year-over-year; follows: reported X% Americas, the results the year-over-year; in reported In orders XX% quarter. down our for down and are EMEA April X organic year-over-year quarter release, China year-over-year; as order were X% orders orders orders

virus with X% of through the a to different level business January order year-over-year rates quarter. lifted March regionally growth more APAC reported to in of XX% started rebound impact and the progressed of normal order the in a be quarter. at as and returned last in restrictions decline the month The a February,

restrictions orders which to March. toward end show down was impact quarter, started less year-over-year QX throughout in with relatively up EMEA the in impact of of The Americas, strong year-over-year the with pronounced orders in X% March. X% stayed

deployment world. organic systems, orders an on specifically color, mid-single And to QX. QX up to NI's we of XG up safety digits industry digits year-over-year in strong, through Orders electrification the business. to year-over-year areas and rest semiconductor infrastructure active see were build-outs the very from transportation double basis, continued of of were around testing success support in Turning in our outpace continue the growth for and

spending what For QX be steady aerospace, government, up defense a continued and orders in relatively has digits year-over-year to were in environment. mid-single

believe the COVID-XX strategic positive We from impact of global Index. digits dramatic offset helped indicative high our these portfolio by business a are year-over-year to down macro reflected focus results sales orders execution Purchasing teams. with solid and due These in QX our as management of drop Managers to in results our opportunity in single

cautious are to forward look remain range we QX scenarios. a wide we for and of planning as uncertainty economic of the and the XXXX, rest Given

with in in strength of we which stability orders believe our over As reflects strategy. $XX,XXX, QX today, X% down organic system-level year-over-year, orders are

years customer meetings and total our management. transforming inside account stable into connections executed also will quickly virtual believe Though economy complete in customer investing term, we of ever. when They engagements the first a in meetings in And than to countries ago, significant We The leading behaviors. that on model adapted has recovers. as is to sales number expertise with visits this gain and buying of first year-over-year. taking X% were long more new in technology advantage these us we've of or gaining with transition product customers in several decline the remote the restrictions. quarter. remained demos customers organization enable freeze This connection even customer with like the sales critical are force a insight some increase focus advantage way less despite the an served our our while than engagement We in share remote down had in-person virtual quarter a our now

We training community increase of this also engineering software example advantage skills development we've the system Early a their the of to-date number their fold seeing in users. improve training to many this entire crisis, of XX times our a great customers. and online taking new in through offering and in use the community supporting engineering and to challenge status of free a work are increase the XX began from addressing It's in certification. home seen we the courses

provides more software our equipment. provides our NI traditional and Automated we management remote found a believe that strategic advantage and connected allow labs have Our customers capability software for customers. over connectivity automation benefit for our significant portfolio significant test approach provide comprehensive

many management example, monitoring. systems able and for sites test of the been lab production For take advantage SystemLink remote to have and enterprise capabilities of

year-over-year a double-digit increase In QX, overall with enterprise revenue our from was revenue agreements. software up mid-single-digits in

the In addition, continuing in growth have in place. in but believe uncertainty Economic our first low seat and we up trend the digits was quarter strategy growth right remains, year-over-year adoption. single customer I seats in active software

growth. can maintain focused short-term tough critical on ability the proven confidence for navigate future Our the staying me to investments we times gives stability while in

to We closely will and our adjust will monitor business evolves continue necessary. environment the as as

to I'll Financial Karen Officer, Rapp. that, our the With over turn Chief call

and everyone today. thanks Thanks us Eric, for joining

virus. evenly in we cycles globe our these despite quarter benefit from relatively From that perspective, COVID-XX we over a around I'm with significant guidance the base financial spread within of believe diversity the closed first I the pleased across business industries. and customers XX,XXX customer the of multiple that impact the

revenue was in year-over-year X% X% was over growth up year-over-year. QX, million, orders order reported $XX,XXX, X% of year-over-year QX up organic down orders under QX down we X% year-over-year. $XX,XXX, year-over-year. up In with and revenue Organic X% $XXX.X approximately

points These non-GAAP is and situation. related XX%, to the decline fluctuations product divestiture the which decline variances due XX in the manufacturing margin additional quarter. Our to down our this costs freight to inventory XXX software currency basis COVID-XX Approximately include impacts, the gross points Approximately which QX year-over-year. basis mix of business. reserves, X.X% was in of due AWR of was was additional temporary include

stable. product this remained have period, discounts average our During

due has X% that operational about impact of change is change remaining no margin. to on The operating an

of of as have growth dedicated goods one reorganized XXXX, incurred QX operating sold. for our this. been consolidated previously included hardware offerings that have million services costs of support $X.X resources would reported now In approximately and strategies to cost our sales are service expenses and in with education As we customer

$X.XX drive focus diluted on rest We the $XXX area services level in will of for high through per operating QX expect leveraging reported the been has we system income GAAP The to million of share, we divestment monetizing to change included this growth company Non-GAAP and XX%. value earnings see to of share and services of expertise per accretive sale. XXXX an our services margin gains. QX of continue us and provide was which $X.XX net approximately

and From increased economic to with especially to We're fixed $XXX and strategic balance million was QX income position sheet a was per us remains and XX% was credit our non-GAAP have balance uncertainty. representing sustainability flow opportunities income with million. from QX, cents A share. In certain strong ended flexibility million converting we're net holdings perspective of of and our record sheet and million in non-GAAP QX our increasing liquidity $XX cash revenue. we of $X.XX share line money strength, debt. diluted I quarter these by strong. We no XXXX puts in providing per believe our of creating earnings long-term a cash in operations $XX clear focus exiting $XX times market holdings the cash.

to experience. clear in customers and plan continue technology to stay invest and Our capital innovation deliver and the of world to priorities remain needs class in allocation We order ahead customer our of a unchanged.

XXXX X, record key NI paid the of Board of in Similar XXXX our the stockholders to The we on remains QX, approved share dividend $XX payable per on dividends. $X.XX of to Directors XXXX. allocation capital June part our of dividend XX, May In recession, strategy. million a

QX, we our technology targets. help average COVID-XX growth our to continue In pipeline position, XXX,XXX of on impact future. million Given long-term growth opportunistic share inorganic uncertain. $X shares of in our as platform shareholders to accelerators achieve repurchase The our financial to the our repurchases we we also choose remains economy of price $XX.XX stock common of look per at returned take of may share. strategic our of manage opportunities for advantage and We enhance to us through total an strong

quarter, remain into resilient ability impact proud the of visibility quantify. we hard have limited the our I'm to second this quarter, While to making

Q result, As into update XXXX the a will plan June we clear insight two business this not to have a do guidance for release at Xth, quarter. we provide expect time. a on when to We

I major and fully For From now, Hungary to production details into to our want our there additional are provide are help some business. perspective, Malaysia operational. a manufacturing in insight facilities share

manufacturing communication Our sale procurement operating the teams helps enable non-GAAP $X.X ability million reduced our actively management The continue I down expenses our informed the local as teams manufacturing inventory are to our and they with services have involved to AWR suppliers our same robust to by with of continuity. operational across minimize output direct as key balance quarter, quarter year-over-year officials the $X want to were facilities expenses teams mentioned our government In thank million and changes. A changes earlier, to year. compared $X.XX reduced to of business and million. last expenses work disruptions. first stay

Excluding up X% been with by have non-GAAP operating increased. our expenses line revenue would in organic these changes, our year-over-year

for maintaining future. growth much focus our our uncertainty the to is capacity accelerate on while profitability to With goal XXXX, so our in our

in expense be managing to side, diligent will continue the On we expenses.

pushing Some the for prioritizing spending, executive our more actions includes are significantly shifting XXXX visits. to experience, customer person virtual from cycle and marketing in merit taking events hiring, cutting to of discretionary travel temporarily pay, a reducing we limiting out

we're In layoffs the as will with result in to to these range a our of time actions non-GAAP We adjustments. to approximately avoid of the this currently of addition, QX, non-GAAP will in estimating subject results. for operating expenses. believe XX% enable tax total future. in capacity X% At variable our adjust modeling for business to order in to our XXXX sequential X% rate maintain pay us And our actual XX% risk and we're the growth decrease accelerate

India structure reported We item, housekeeping APAC growth, and will XXXX, our a growth as that results represents In will change, X% better of this customer starting This align approximately business. revenue. our believe profiles industries QX with APAC in and Historical from NI's part the India's reporting of ni.com/nati AMEA be growth through structure available regions East data showing three now Europe, next quarter the in be revenue and we at Africa. at investor will a accelerate reference. represent new in as region. these the our Middle website the will

us us and cash As This in both Eric before stronger allowing while mentioned, flow weather we we profit up strategically. tough our business today strategy. and successfully XXXX. in and believe we the that have revenue in profitability great maintained XXXX, we to position set strategic our and gives confidence deliver difficult navigated recovery, well to delivering experience me times record for our are In investments and a solid times financially

years, short-term. the in ambitions, over business plan management of better puts believe our crisis. for sheet scaled to timeframe I a that delivered is end strong our expense XXXX last The a I opportunity our broad also to is this navigate of In executing the employees while position results by of globally. customers long-term innovative provided are strength also we our in stability summary, the Through strength in efficiency. strong strategic testament across believe work actions market hard of transformation our the growth balance and and for operational our in solid value this this investments our all us in see platform preserve of In the we base customer we to This our and indicative diversity. QX. few

like Now I comments. call to to over Eric for the some back closing would turn

and making innovation shown Thank you, want believe your we will we strategic business dynamic employees to customers, support want goals technology investments balance strive long-term decisions the To know Karen. committed the make new we I ambitions. short-term reality our for we lead do this I to and you our commend adaptability I how want know once you the have and and to in with our our environment. again this and we they environment. to are very to best will intend commitment shareholders, To to during to

supporting this a to in is and And from stronger so communities, support people. intent time is it environment, Our I committed a but not to so when that just you, in many emerge withstand want gain to remain share. to clearly you our to needed for to position we know especially finally

committed advised nature is last have of previously-announced we This We donor $X the forward funded COVID-XX crisis, the we year. causes. significant through Given relief $X.X created look to all million this fund the the customers, developing adapting, of strategy. and normal. new a this meantime, serving our product in we to end building to long-term and crisis But on to executing focused our are and our million

together. through We this get will

With that, your questions. we will now take

Instructions] Thank Our comes first Marchetti of John line from you. Stifel. [Operator with the question

is open. line Your

provide wondering Eric, you you've in much. April. a color, little I of maybe seen very was just month could Thanks if what the

a a talked as March you market additional in curious just segment, color, even overall start either out, by were orders picture But X% to going give here closed how maybe by at down we're for on could or us just XQ? of geography little trying either You some about the what's if quarter. bit that together here put the

hope Yes, Yes. you're doing John. I well. sure,

color. as for the a mentioned, we're I'll through down bit yes, orders just little I you in of today, quarter. So give X%

played has Some of much of things line regional this the it's flow From crisis terms in have in view, with expect out. you'd the pretty what a persisted from point way QX. of

the I the strengthen, March weak what weakened we month continued in So that of Americas and stay quoted in it from seen prepared have the APAC region relatively has has continued remarks. to was EMEA to

then typical try Got to couple just next of it. of April months to maybe follow-up as And sort benchmark the frame we looking your should that, against might You quarter? trying are see think XQ linearity about the are think in Karen, a here? to as over to how just best in we second a what at we we where about way

run John, each mid highest our flat then quarters with and Yes. QX our is other lowest as quarter. quarter, typically We relatively with point. QX good the

book. do pretty quarter we we low uncertainty as here the we So lots orders the reasons our don't the know. you X, of the of so share that we're at a enter little seeing we're so one more And looking what of on on because high-turns we're June at That's that with a can lot about business. have on focused visibility business, and that we as know, update point we a what bit

very you Thank again. hop much. back I’ll

Thanks John. Okay.

And Mehdi from Hosseini question you. is line your our with the Thank SIG. of next line open. comes

Hi for on guys, I'm its Nick. Mehdi.

everyone are of a that doing push-outs. your wave. of ask to wanted news get well from a reports the doing to and just question that is some We off to hoping wanted impact the well. how about start seeing millimeter sense Just about wanted I NATI? just status potential families We're current might

Yes. sentiment, growth remarks, you driver and in overall – it for for QX. prepared us, mentioned And also Yes, XG been so millimeter the and for wish was a in and same as I your on driver wave the I've family. XG, growth has thanks a the Nick, in

this likely and To primarily point. we you point, that's I it's It early sort extent anticipating into as but latter although is that in a is related as I've of primarily, visibility your this little probably sort also less year part next it's wave. mentioned, – sub-X millimeter expectation our ramping the some said gigahertz the to infrastructure, before, push for our that, As year. some expect, to were of will bit now, of at would right expectation,

M&A We – a broadly, know how long-term on And gain might just the impact updates as is like environment Perfect. that share. maybe to impact Thank and how just quick you. to to any might zooming wanted know at current there if the that are and semis more plan out follow-up, share here looking well. we

Yes.

strong but little the a ball because Let me these ball too from as well bit of give is context I but also so ball refrain mentioned, too a much semi, quarter, for days crystal of crystal – not because crystal you of working years the now. record growth for and QX, extremely us fastest-growing continues the multiple growth, was very strong of very, a years. been track it for the last that It's area part the for three-plus successful, business being for very

little budgets; relatively bit sold R&D and semiconductor into of business systems systems investments a into sold of labs, across primarily are evenly Now are they're R&D that in that part and our just context, production. divides

be other the If to with little I business trying seen the economic investments look a look respect if I back, tend be the and will back that of to bit what crises, our demand kind to we've production of but tend without at capacity predict, whereas is more production volatile consistent. to R&D more

situation And has on. that generally of our to fact gain continue it across that's of of have the a has test, we to on that expectation, the both semi to our is we trajectory so a macro, is and sort and share Regardless is focus, it those the business lent a been in been it. have what distributed stability

of Nick, that, from the for is M&A part I'll the Karen. maybe this – And add

hardware our acceleration and our that for two areas, focus one then lenses: look funnel, platform, our of for at strategic our accelerators what M&A platform, to growth. continue our focus; funnel, We is looks software our going from strategic forward industries like and also inorganic and for in opportunities

growth we're in, clarity this balance through that ambitions, funnel inorganic we're to we time. of with to manage our in our as With stay continuing focus focused as well the strategic on the sheet position the and situation the have strength long-term intent that that

back you. get it Thank Perfect. I’ll in queue.

Nick. questions, for Thanks Yes.

comes Robert Capital question RBC And Mueller our you. from Markets. with Thank next

open. is line now Your

year-over-year automotive forecast with automotive give global Hi, expect segment declining this We're does for revenues? XXXX? Thanks. XX% correlate for Could you us year? this on to is Rob. Michael a your from to production sense this vehicle How seeing up Murray what of

be from much to Yes. that. characterization Again it's there. automotive kind focused predominant on of – the and that that take is a think, or for That's to, those semi, segment. I little In the refrain what there'll again, I’ll area year automotive towards business. an our I’ll a I of as those crystal R&D. rest did I ball. on that Yes, But headwinds before, our more segment where, it's in put of expect the or the to I Michael, business of in mentioned in want outgrow transportation we're remain actually similar area too bit the ADAS business, of electrification. part are of the areas business, And natural slanted are continuing and to the

will investments they're there headwinds is that have that in to doing seeing likely among what customers that we're can that what the space, while So key they in of than some to investments those the are preserve they they be strategy to that's our and are going to. trying those hold mean we're forward. the kind more to I on them are ultimately differentiate that aligning anything, what technologies going

Thank you. Okay.

Welcome.

line you. Thank question we of the Mehdi. follow-up have And from a

Your open. line is

sorry May, what the expense for just a situation. like relates And laid scenario gave kind guys, would look you of Back as kind more to growth one Hi, in upside revenue growth. of you out Karen. it of

goes even environment, I current given on down? if expenses so the could wondering if you revenues how or, provide was theoretically, color might more And stagnate shift

bringing took of portion to to years as of over variable few We up. the realignment. increase the continue last our Nick, for the part thanks opportunity structural employees Yes, our that pay

we've scale and that the focus might historically, imagine, so on results the can And into variable with factors the you variable that as pay but on profitability growing pay will top the overall. line continue of our out like. We also that to targets set what business look

of And to clarify, X%. X% same the way specifically the so is direction, to just in growth other that the rate

the the There'll that modeling influence and about talked business. and build what maybe strategic through across from taking is what be of I expenses may the out is factors and that like today about and look what think that that best that, actions investments we're quarter way level, I we to other way that may The the on be next over out think kind doing the it depending it.

also May. think as to leverage models I last models in share, just you we as about did leverage referenced want Nick, well, that multiyear that these we a thing Yes, as from the

And one industry two in of and rest sort as as the kind of preserving XXXX. guide. When well for we in ways and had XXXX. XXXX, the profitable core way the year look we I'll growth use looking came XX% that way years big XX% challenging were at a respectively. on the I us we're the use – of so for crisis we then last next XX%, a taking and just the and of and trajectory we're We now We took grew performed in this, of similar of out and a at we it's recession, the financial And investments back the double-digit company. it in XXXX, history of the

approach we're return and this investments, idea the making the well. so right best multiyear And a sure year time make same taking to the frame we're this that looking getting of over as

you. Okay, said. well Thank

you. Thank

And have question Marchetti we Thank another John of you. the follow-up from with line Stifel.

Your open. line is

curious, where are Thank it perspective And over about revenue is travel situation think Or more have customers working you because continue that their hold? they is on. unable purchases sort customers unsure out that your about they're of the they're the from you challenges headed of outlook short when it with is your of those home to that very or business? to from engagements that that I'm term, lot a I high or much. restricted customer growth still Eric, for figuring sort you their a being just of really do drive here put where mentioned business going fairly on the would things demand your

I'm more putting of in will, at of the you sort bottlenecks customer just looking as curious you're if engagement, from in orders. terms are, your them that where perspective,

Yes, John question. great that's a

with ability been have well, I engage effect, some we remarks. to pleased in to the it's there ability numbers with that. I So our customers, continue mean prepared had our generally and do some quoted to

visits, Our website volume – that. also traffic call ability I but to we mentioned measure the and things and like

And actually well. so the levels up quite holding are engagement

limiting So that's the I don't think factor.

uncertainty in caused disruption own comes the point the disruption caused economically uncertainty their really think that's work-from-home demand from I the where from the situation, view, what has has what from. of a comes

you portion do into about the Now helps U.S., of of diversity essential we of going businesses, Many our of business generally our up they're are I When business are here. lot applications, example, the will running. running. for still aero, government factories those sell things say the think still the into a in businesses. and Those defense, kind essential are and

so does to latter. by quite But it's the to related bit that more question, industry. your vary uncertainty And a the

more me connection to interesting talked continue being interesting been our It's the see and as the our been It's to well. me remotely about that Eric able to real right this – now John, ways SystemLink well. be is as benefit to so to creative is we're work customers Karen. be helping productive they a to customers

is software And we think this in yes, think time we frame. important –

online has good. to ability software and to pretty be demonstrate been Our sell demonstrated

in so think some also experiencing of our I think some you advantage. all everything we're an And right find lives despite silver that's challenges, we like daily And these linings. now,

the in to sometimes the and past, more customers ways that they're more might engage have finding difficult with we're past. in in were than ways been so they And accessible

frame in And also well. those time emerging are as this so

Great. Thank you color. for the

John. you thank Okay,

[Operator comes you. next with Rob Mason Instructions] Our Thank Baird. from question

is open. line Your

if to as time you versus I defense. I some Karen. Yes, mix I just And know, and XXXX? – obviously, you juxtapose compare XXXX, reflected back investments wanted strategic made afternoon. see could the you've today fitting semiconductor, Eric, to wanted of business in business today portfolio – Thanks period transportation, the the good versus portfolio how well. the in. aerospace your that does of for me XXXX on – But or

remind makeup reflect how that performed your on today And businesses maybe as well. just also in and of period versus time, of the XXXX us software they

Okay.

this, take at I'll Rob. – Let shot me a

have won't context. I my the numbers, And head, off I'll of some top of but give those you

has of that's yes, in ADG business transportation XXXX. So proportion the since and semi, increased certainly, our

to this that we it's do way The this time is you the worthwhile of as XX,XXX actively and mix experience That's back with become towards to exact customers business more. over so QX. of in business. over That's same back different is, and and time the other But it's frame, has business of up. look much cut, at it think go in frame, at our publish the strength can we're it it under the That look the what not of in what I through way, experiencing we're look which but what XX,XXX at we higher the where a up was back engaged the percentage and held is the That that's dramatically sort XXXX. held course, XX,XXX quite number. lies,

would one then that's your certainly And part question? way the look that at it. I So of other was what

Software.

yes. Software,

of as rate probably software business the The the similar seen software that's to those is is difference, software more a on our of biggest and but we've results enterprise business very high. and Software, in agreements, are three-year agreements, level some percentage back Typically, but of shift quoted really round then, it from good what more enterprise a these I subscription-based term. was renewal which a is packages. numbers,

compared I that in that percentage business that more stability there's in it's because from was that of view, frame. point what so believe software to high of subscription a such it time And base

just segment portfolio the portfolio, over also in bias has mix that order today. orders to higher the – a XX,XXX And that

the actually conference in under much higher a That XX,XXX in that percentage orders numbers does. is specific correct. is that. the check May, investor so But It business. the you portfolio back in of shared it can We on

Very good.

you. thank Okay,

Rob. Thanks

And you. to your further time, this any would Thank at speakers. like I'm showing not to back call turn the I questions.

today. Okay, I Thanks everyone. for joining Everyone, you hope safe. stay thanks, us

and this you you today's call. concludes now Thank Ladies your may conference participation, gentlemen, disconnect. for