National Instruments (NATI) 1 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 NATI Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’ presentation, there will be a question-and-answer session. [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. ahead. go Please

you I’m Thank Chief our XXXX Officer. QX Officer; Good today for by call. Financial Chief joined Karen and Eric earnings and afternoon. Rapp, joining Starkloff, Executive President

an will share your and for questions. update We outlook with on performance second our up in opening before our QX quarter the for start

forward-looking models, may related to and XX, the weakness this the guidance allocation press current contained to Our ni.com/nati. results will statements, forward-looking any you materially the on the and update contain and with disruptions Exchange non-GAAP target the include A discussion February economy results including are annual expense plans, directly company’s differ our no contained and on outlook. call important differ to growth our factors forward-looking XXXX. reconciliation numerous objectives, duty identify actual expectations. in on or in release dividends, our and market focus, measures to in We be earnings and GAAP to the financial in our just Form most events measures by on and We from our on statements. results documents regularly caution filed our changes from such further plans, to including disclosed quarterly cause impacted and profitability, factors, uncertainties revenue any to COVID-XX, management financial We and Commission, the report or report comparable May to in our economic filed actual you materially Form disclosures assume any resulting or XX-K plans, including documents statements environment. today XX-Q refer conform that changes the statement company’s X, global files actual further and COVID-XX Securities XXXX, These could in could and that those of statements position, global statements capital negatively and predictions regarding wish related pandemic future regulatory are trade company and that

As OptimalPlus. organic Participants measures live a OptimalPlus long-term Chief forward the term ni.com/nati. to divestiture acquisitions to and information reminder, more acquisition. will to certain the on now To more July we August on within With turn of for over exclude which and Eric relevant market financial close growth and X. We refer the the compare, the more use by AWR connected industry includes impact the the about that, non-GAAP look To strategy please XX announced register, completed the in beginning of that we systems, divestitures last value acquisition stream of investor QX, at sharing will opportunities of about of months, enable our the our model. conference Officer, long-term Starkloff. will to our call hear software via our Executive I now virtual visit X, our

everyone and hope really your families you, and safe and Thank are joining and you appreciate us afternoon. Marissa, good We well. today

it long-term before Karen our for update. commentary as results well context provide strategy I’ll as over second First, handing quarter the financial on for to

Together, our strategic exceeded employees expectations we be through continue to enable economic remain and also diligent tough will to adapt. of our ability consistent: the our executing I to of growth investments will As of we for this have continue the at managing XXXX, we the the our safety in remain level productivity on impressed our achievable ambitions. globally, environment. supporting half Though employees, priorities strategy. COVID-XX continue and effects pandemic second long-term customers the to our its of in our expenses executing

and the employees direct economic time physically strengths Our in apart. customer the uncertainty, though continue ensure with connected And a engaged, are quarter. stay to communication demand meet to of to we customers able In core and us ensured operational NI continuity most of and we even were clear. of interactions are

innovation of highly software of and commitment Our business the the our and differentiated people. position, diversity our

intend times in structurally. in engineers an In first the build changing bringing customers our management, creating are systems alongside grow by position how to software CEO, products. to market And focus I’ve to We we machine strategically concepts about as tough stronger connectivity needed months today, our way enterprises. of believe parts customers’ often software I ultimately stronger have and together also our our and my are design, believe before. new plan We artificial to software design on in capability spoken learning intelligence by NI’s the I of of with and their a customers leadership enhance and today’s the position few market position our navigated and are by to on data kinds that test needs we position where in continue a we even invest. the

next Our our strategic processes. been these there and means growth conference. investor each built easier more is share at providing on software, an in meet This customer efficient share. do our have level strategy customers like pursuit virtual with making our by assisting more to our developments to streamlining business I’ll needs, more eye few with week services interactions. accelerate to to to and that I’d our capabilities, system-level of QX, strategy growth and time detail a customer In of differentiated four systems, streamlining through enterprise pillars: it services software on broadening market

logo fresh of our AI to in out change First, we standing It of analytics, data and color. and This category. cloud a our is about is market stronger launched corporate positioning a a than software identity. areas differentiation in new modernize new more much or a

the refined is focused engineer elevating need our engineers. critical on in We are and again to role disrupting market, of the This for captured purpose test ambitiously. our

customers And to a Carla I’ve with experience revenue. our our and accelerate we our goal in growth doubling served addition through us made level enterprise third, addition our to of her assess of role needs enable believe asked capabilities organizations, increasing including this recurring CMO. our of business Carla’s in the and future Second, critical from leadership products support my provide level acquired Sublett team. part enterprise Combined the We investments increasing outside-in we’re SystemLink, will data to business. portfolio as Piñeyro marketing from strategy software. opportunity lead and analytics and sales current the change market I Dell, expertise capabilities the OptimalPlus. to and perspective such extensive Rackspace on organic the right to for available with as by value for down of OptimalPlus

hear managers virtual growth their and investor general other Carla from strategies will our You for conference. about at the

our Now results turning to in QX.

The a business environment. we have QX, a less in there’s this managing weakened level a we are caution about time in In of to this We correlate about point at business tend customers, to lot our remote $XX,XXX. more business-critical working with the to grow. in our of economic more impact over of is in decline broad-based $XX,XXX, investments spending COVID-XX. experiencing a environment learned which year-over-year under believe across Orders orders continue and

believe of half demonstrates were in economic orders organic the environment. For we X% XXXX, organic which a business year-over-year, down first our strength revenue tough of the and resiliency and both

the Software overall trend our QX. business also followed of in

continued year-over-year. growth number While down, to to adoption largest software This total level of our active of X% our provide indicative software agreements, at value in customers. up increase saw is focus the seats enterprise we were and enterprise

first On the and results. up half. industry up for orders high to semiconductor year-over-year in Turning basis, double an digits QX organic were single digits

around seen the have deployment We NI’s continued systems, from infrastructure world. testing success XG by the build-outs of driven

are strength We in our XG also additional chips customers for are automated validation providing handsets systems preparing for rollouts. seeing as

Managers ECU test COVID-XX economy due the to further, a active continues. also headwind were down and from portfolio year-over-year year-over-year test in as current economic digits for first systems. the and the in to see continued QX, year-over-year system, business XXXX. our production double to steady double safety weakness In through the automobile which first QX. business half reflected orders were offering, down in continued the our through global double For transportation is how and the the production a system-level spending such QX macro U.S. and environment, aerospace, impact Orders of be in QX in in of QX weakened focus Purchasing has and in NI’s of in Overall, did weakened continue Index in both in I’m Global defense as environment QX, navigating as released government, in pleased growth transportation. In we’re we half areas first targeting particularly with relatively up digits also in we what orders But the digits

comments. Karen to over I Now before Officer, a the call will closing Rapp, with few Chief turn Financial

And shared second was year-over-year the revenue within down organic and Organically, June on closed year-over-year. revenue down X. We expected our Eric. Thanks, with were X% million, orders QX $XXX range of year-over-year. XX% quarter X% down

basis approximately year-over-year, began EMEA Our region. XX% these offset our comparisons, gross our In XXX orders X% total up on success structure India were organizational in We second organic will million was QX was an year-over-year cost basis accretive in provide remaining This which continue was to change net QX were $X.X in Non-GAAP the as for is margin. and the in X% AWR to flat represents non-GAAP new We Pac Asia due quarter, EMEA services net was guidance. to services margin XXX within income including earnings is share geographic aligned company year-over-year. included of to $XX up decline sales our the diluted due was sales. operations data no per XX% of an related organic software orders. QX income leveraging million, high-value currently this at our us, in we available points reported amounts and $X.XX economic or is strength QX the under share, to structure. due and $XX,XXX region changes Approximately is our of per to been of to approximately on expertise million fluctuations XX share of industry weakness strategy was include we per indicative operating In in reflect per the partially reflected down of which the focus. and the attributable been drive was divestiture our earnings has to down which XX%, basis historical customers APAC XXXX, system monetizing The was and gross costs revenue The X% business. by diluted in $X.XX were in non-GAAP approximately change net Approximately midpoint of in non-GAAP year-over-year. Non-GAAP within share. reporting basis XX%. change to our The XX year-over-year, to continue year-over-year. within additional over and GAAP temporary focus recent operating COVID-XX. year-over-year our India has the points our orders we the margin reflected growth orders of this Services quarter these margin Americas, website. is impact on in area services invest has year-over-year. the our orders points critical $XX,XXX, operational that previously down points of in believe in projects $XX

operations received Our on ended cash XX% as restricted remains with OptimalPlus $XX In used investments, were cash, million announced $XX cash from $XXX our million of strong. our partially that borrowing July under revenue. QX, fund acquisition representing our of sheet flow X. arrangements to million, which balance in quarter the was We included and

priorities record unchanged. needs customer of of our plan and We world-class XX, QX, In X, ahead capital technology of we in approved order of stockholders a to continue priority. dividends. customers XXXX. of NI experience. dividend to $X.XX paid Our per innovation payable to remain August and million The XXXX, invest stay on a remain to a Dividends and Board the share clear $XX allocation in in Directors deliver September on

opportunistic be to share repurchase. continue will with We

for position as our through shares This not of average quarter, also stock at we shareholders returned of strong price our share. repurchases dividends an and repurchase, a in investments We our but and future XXX,XXX to per way view of stability. $XX.XX to share shareholders common provide strategic growth returns for cash only $XX our long-term through opportunistic million to

methodology identifying strategic to Over value. with faster. technology acquisition years, The the and commitment our last complete to M&A targets on and achieve has is M&A now and few OptimalPlus focused of been as funnel accelerators our growth consistent our our expertise shareholder

includes $XXX of range quarter XXXX, million, OptimalPlus. approximately of range revenue revenue third the $X have million slightly. cautious expanded the in remain we For currently We to million be expect $XXX guidance and which to GAAP our for

$X to of million, expect non-GAAP includes million which approximately in $XXX range to We for be OptimalPlus. total revenues million the $XXX

Sequentially, fully be range earnings per of of share our relatively be we the earnings standpoint, $X.XX of GAAP to $X.XX. range share of our costs. QX, fully to an OptimalPlus at to share for midpoint guidance, to minus organic in to to per with diluted from $X.XX in We approximately be earnings $X.XX per the expect $X.XX integration flat diluted estimate non-GAAP $X.XX and from non-GAAP with dilution the expected

Our outlook for is second OptimalPlus expectations. original with half for line the in performance our

recognition. it However, of as standardize we an into our which OptimalPlus is revenue impact to terms the timing NI, have intent enterprise contract our integrate on will software

China, customers of NI, also million We’re QX to estimating OptimalPlus We $XX regulations. region $X of GAAP in for relevant focus revenue our be dedicated the complying in range million. with while remain export in serving a to to

combined negative revenue into XXXX, anticipate which landscape, of guidance. X% our at half regulations QX the current Looking and about second a the we is impact in trade geopolitical of built

and Our focus our quarter services while to the expenses $XX goal capacity last $X to were operating by as accelerate year. non-GAAP year-over-year reduced to the $X.X The related non-GAAP on in expenses is the AWR to sale In expenses million. our our business operational of reduced down future. change our quarter, operating maintaining second compared million growth same our million profitability, the

the manage provided work hard primarily for indicative to in X% see globally. revenue opportunity and line we have profitability shared our summary, long-term are are model to we plan have a the believe management platform, guidance non-GAAP minus also testament that industry the OptimalPlus. total also X% X% and customers the despite of the of the innovative a of expenses to June a all a For non-GAAP our our well expenses, operating approximately is To acquisition of is and XX% positioned on we our and revenue, includes while efficiency. proactively OptimalPlus. strength. minus customer value This the estimating employees broad uncertainty. In our XXXX. preserve ambitions, we delivered our by believe adaptability assumes at second driven strength We stability strategic sheet QX, for investments economic results believe the of path In X, to operating this half, XXXX, and X% operational in increase I sequential base diversity, of puts that scenario a of non-GAAP expense executing in which created with currently we short income current a for in our strong across we growth business position strong I in term. for balance us by

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

Karen. you, Thank

strategy. our economic remains, the in uncertainty environment. our proud challenging resiliency adaptability am economic While of and I confident in I’m a of employees

focused term, focus to navigate scale we growth business times opportunity and on maintain of confidence now while With and believe our team to shareholders. leadership our our sustainable ability short future. a ability ago, And strategy. and can modernize again software to our as of long-term me on staying We have will leverage we’re once to we investments the for and take new our profitability, drive your in position. did we combination with industry We deliver proven focused a questions. building Our sustainable the tough decade our to on the growth on to disrupt a renewed the innovation, returns enter unique that, that stability growth decades gives and we aligned critical

from Our with Richard first Eastman Baird. question comes [Operator Instructions]

line is open. Your

just questions. and we puts down this. between a Could you kind questions, walk I’m Yes. assuming I – quite the could here in through for EMEA second has of rate just it. maybe walk dispersion adjustment the there’s mean, plus through Americas. to of to Maybe and A quarter orders, But XX%. for growth takes of around X% the you organic here. from thanks quarter through the and flat India kind the couple decline walk just go EMEA.

some color looking kind there. for Just of

that, Yes. Rick. could to I take hear you. from Yes. Good

Karen first In apples-to-apples. mentioned, Certainly, as of we numbers. all, the remarks, the in India history prepared out comparisons we’re weakness quote is well when most as the factoring So the as mentioned words, change in year-over-year, other these you pronounced EMEA. in the

was that as the Europe seeing out with So persistently would that indicators both expect now being a right as sort well that space. business exposure industry a kind our aligned of of you’re general weak transportation amount in economic of of disproportionate you

I what in So markets think performance that with that’s in the And by the weakest regionally industry. the had that quarter. and the was seen area we’ve consistent

– piece but that’s portfolio And products? the to more is of just products also your do they that mean, portfolio exposure I transportation business? have

transportation disproportionate Yes. and have an They portfolio exposure a at to rate.

broad and the has If in ADG you think the with set Asia. business, semiconductor bit a of correlates more of largest our percentage Americas

that statement Rick. correct, yes, is So

then from Maybe just ones Karen. question. clarification And a Okay. some quick

Just you’re when million third of gave guidance the second here, revenue your just you quarter, of so acquisition closed? have in couple will bucks a OptimalPlus revenue quarter though even including that

the Sorry, third Rick. quarter, no, that’s

third, I’m sorry, sorry, I’m yes.

Correct. correct. That’s

yes. But that’s –

would the okay. for why rate, to I be I And – a If mentioned there But think a you’re $XX fourth would OptimalPlus. more of you like – on rec upfront quarter, of talking why is Okay. about deferral $XX rev that? think, kind – million, million run which why

Yes.

it’s quarter range million we is provided to for – the for $X million fourth So $XX OptimalPlus.

assessment. through the still going We’re contract

our for enterprise intent the to and OptimalPlus terms used Instruments the that software. conditions standard here, our subscription-based agreements work integration and we align historically As with do has is National and

to OptimalPlus what that there. that purchase a would with business bit forward, we there’s align more the believe contract smooth have may terms strong that But been as believe you’re going and that drive consistently QX quarter NI, Traditionally, that, of may do the we that, of accounting little that a implications as a that’s that also piece OptimalPlus. smoothing with a comes do non-GAAP out we some And help next into with we seeing difference. push there’s we for year GAAP some price well. that As of the will lumpiness

I were QX, core looking we at $XXX $XXX get guide a if are for to to non-OptimalPlus at like So million revenue million?

$XXX the is million our includes of midpoint the guidance for numbers. that QX, So OptimalPlus

So it’d with which organic line being our previous consistent relatively if in be pull with seasonality you with flat. both and QX relatively is OptimalPlus, out QX QX,

Okay.

right. Okay. All

Let me – and second just head the What count quarter? end of one more count. head around the question the at was the

it Yes, to was QX. flat

to ability at retain our point. our seeing We’re this employees

Okay.

little X,XXX. over just So

Okay.

Yes, just over X,XXX, exactly.

you. got I

Okay. I you. if back hope I will queue, in to. Thank need the

you. question line comes Thank And our Stifel. John the of Marchetti with from next

is open. line Your

business. how X% could demand much. revenue? be pieces second as out hit particular there. aren’t I it very with that – back of for the about some vertical that there’s to I you Thanks just of revenue just in for customers, because in should comment situation being wanted wondering they customers something placed particular ship the if percent need? other able was either business in to us customers? certain Karen, a Is that because here looking the outlook China relation a China Is curious you’re color China. expected to that’s actually that go you or to to a restrictions we to just made the more much a or give unable I’m if total to get of of where a some on of And it overall within more bit little sense of just is APAC half

to consistently impact the represents Yes. tend heavily. about business, that most and to what’s Do to Asia nice still about our second to add X% half, our we’re forward, limiting revenue of who coming a semiconductor that of evenly business half and that’s and able said, defense as hear level. going And more pretty customers QX. around are from The that the the that? factor changes there. related it of Sure. I for impact government are aerospace, to QX with our the of across sell you both and be split will opportunities to China seeing that’s John, regulations you. the and want to It’s pretty

we add Yes, you John, But bit can think think – term. little little John, color, a just ask bit longer I me a let of another. as

we sales the that to they’re we’ve to mitigate the most and places are of to make of impact we that’s couple yes, opportunity by think that in Clearly, on that might the So quantified sure is the taking different there regulation. trade obviously, focusing side aligns where to terms we’re our be regulation. of the that think we’re aligned, those can we regulation where companies changes of actually as have teams term, that what in also longer within some that beneficial steps

as But view the in do believe of reprioritize. we moderating we level of that it So impact. time sort over term, that has we short

Just there, that on point following Eric. up

to some If part mean, given of potentially has becoming goal everything independent, more laid the becoming is have goals sort in presence China’s of semiconductor you administration that that ability think that. big test stated out this obviously, I on in limiting big side? a more impact clearly of somewhat independent do of terms and again, ability think China the out of the a longer you term, would of

you opportunity that how curious over about Just the longer think term.

regulation Yes, mean, challenges else. that and been question, I sure. say from it’s get big That’s certainly Yes. that dynamic everything there and look, trade sort John. the are that. will But from presented a of environment, I real opportunities

of which certainly put also need solutions start-ups think start-ups for more are for in doing semiconductor us things semiconductor for creates example, they’re you If that opportunity that in – that investments restrictive. being more that. about that with are locally significant technology, There’s testing semiconductor,

But of significant are investments these exist Obviously, semiconductor. well like regime work that still focus. happening trade an us. some in within we have. area a areas that’s the from It’s of the market opportunities So for and as the local we’ll that laws

it’s – were maybe as just impacts from as that customers them we’ve ago? I then last Mainly, economic they if a the little question were this uncertain talking three where an you’re there. globally. ask now now even with of more get ago, bit months seen one do can you it. there to months sense lot three a Got the than Relative you maybe guess, I more And standpoint, of to

You’ve on gotten just a full of your your customers, get customers When pandemic for quarter you’re than full cautious are three to impact sort with of the are now how more they were business the they right talking customers. those of I’m view curious months behaving now? your ago?

that, sure. virtual settled perspectives we a of we two the visits kind this in to Yes, little those all uncertainty ability interactions I things stuff, realize at remarks, people and I through can work home connect the on have And certainly, more like bit stable. gotten quite of feel little it. on you and measure that really I’ll stayed that to about and give and related customers. all we actually working effective. the but I and that our look One, think from to customer really mentioned of in environment have be and a When good

businesses part to pretty uncertainty think each the much we’ve that And well other works work has our become sustain everything else. as lower so with realized, and of sort I hey, and and technology

a become that But uncertainty know. And probably with clear and didn’t and our commentary a that’s guidance. global an months still this that in gave reflected under-$XX,XXX certainly happening, was certainly I was there’s we think think the headwind, orders ago higher industrial uncertainty, the think experiences there’s we our the I it if recession. few I economic on on economic thing – compare when I side,

it we’re that’s seeing right And now. so how

Got you. it. Thank

you. Samik Thank JPMorgan. of from the line next And question comes our Chatterjee with

line open. is Your

Samik. This on is for actually Joe Cardoso

of we Just transportation? see other market you the – first quarter. Was – order there if compare wanted Are we kind order to the towards end by the particular how it as any end I in on guys just question. the did to if trends as for market, starting trends of like of well the recover end ones? that bifurcate kind and could double-click my see

picture little that leading guidance Joe, Maybe on we’re came We caution it’s this. a gave And expecting. seeing June for just weaker to of a that’s June of the the end towards X part QX. some than and saw of Karen. what’s high-level we – were in that the on

really thing the to across to board kind to in. broad-based of where orders one and specifically call came we There to to how we seems from than other that with any just out that that is heaviest. So tried saw this wasn’t under-$XX,XXX the point point standpoint, maybe that hit that be weakness was

of Got delay ramp on it. we just your here. Last a kind an X-gig of millimeter kind in expectations the around XG And kind of expectations being Can the just with your update the gears then where or guys you potential are out ramp. and around thoughts wave. there waves quarter, of kind the around you commented And you millimeter your of and called sub-X today? get bifurcated

Joe. bit drill of infrastructure sure, another versus the sort down yes, which little that, the a gave of – I’ll take is sort commentary And can on I I take of on handset. Yes, that.

handsets. in last few that then into in and We chipsets are seen, the both of little we’ve of lot our going And expect some XG bit. on semiconductor validation we’ve a validation commented are in as to quarters, that So business wins a the more moderate of that to production. related commented infrastructure early strength sort from rollout, I

more The would up a that validation wave on millimeter design. as cycle So that precedes commentary in I we production sort now shifted of as of of be coming of advantageous have, the position few out sort made magnitude an quarters, flow that’s course, probably next an see that the early part that, opportunity over exists of view that of because, and the substantive same last the that and year. last quarter in which in those we kind we still is

timing. yes, view of we how kind so so And that that’s

has half it’s I a there’s that the Now It’s to been I contributed double-digit I that’s driver. places growth overall, semiconductor weakness. that the also mentioned. that some been And will at of mentioned order one where say first XG through things growth offset

at some the with sort in results. see and bellwethers of players some semiconductor, of see look of you negative certainly a the You but lot mixed-signal strength, you

So with of or XG the some some related that deployments been to strength these we’ve chips overcome those. headwind in able to of

you. very questions. Thank helpful. for Thanks it. Got That was

comes SIG. Thank Hosseini And question from next you. our Mehdi with

is open. line Your

impact, I better OptimalPlus. that’s for Thanks in [Audio regarding have If offsetting is OptimalPlus the that X% wash, question. [indiscernible] margin incremental Dip] almost for the line my China. just And this, look at taking One may actually context follow-up to a a top from

Mehdi, and if sorry, your we broke I didn’t don’t could get I whole – Yes, you question. quite up, know

Okay.

just a the If take there I that. be almost haircut the China, could incremental statement? to contribution Let me Is top regarding be offset fair X% be line to by commentary That second for were repeat your that quickly from OptimalPlus. half. could

Yes, that’s pretty – fair. it’s pretty close. That’s Yes.

Or because – it? Okay. it trend up if X% OpEx should does Would into for go to X% I by QX? how how acquisition, And is then they flat? your about going of think

with It’s stays demand. future consistent a it relatively fluctuates flat. It Yes, spend. pretty

actually order All trend. than APAC one Okay. the And before America. little because I’m APAC. follow-up relatively stronger bit was just on North surprised right. But a then regarding America turned North

customers Or like the large – just just in there APAC? placing Could these with be APAC? there is are associated orders? So a a it more-than-$XX,XXX way orders pent-up orders is for that’s with catch-up

Yes.

what of the of that is the effect from virus, you’re timing referring You the Mehdi? to, mean because

Yes. yes. Yes,

Yes.

timing of multiple there’s certainly, think at true I think of that’s in factors I the the impact of terms I yes, play. the virus. mean,

is economic the interconnected effects point really the though, sort of more at the As I this before, bigger said impact global I economy. of think

create disproportionately the strength think ADG, business sort mentioned in that things if region. in as certainly, I economic the questions, because the one it’s Americas, at Americas look represented you I there there’s of Americas in sort our helps the The headwinds. in earlier of of

that offset of some some So strengths that contributed headwinds. other the

the trends and that’s been for order it’s and fairly the regionally, $XX,XXX, consistent think been I actually quarters over several consistent from now. under

those – we’ve, that of And an strength portfolio customer deliberately area fact, higher-dollar course, these and think the that’s interactions shifting of our been is more to In our it’s our really I been of these of systems. capability the strategy been investments under pressure And making those preserve that when some more be more bit discretionary. companies. which critical lower-dollar more their critical to that might things, tend than so they’re experience correlate a they of to they’re in investments

that, of the strength. area fact So that’s has an up multiple multiple been regions held quarters,

And one you. if follow-up. just Got I quick may,

to referenced wave validation millimeter relates as You smartphone. it

just terms for Are beginning Some have are discussed validation test of they of smartphone high-volume and Are millimeter a the into validation. we the before – wave peers same? also for system-level in characterization these methodologies and they at finalizing manufacturing? system-level of your application go

When about than Sure. actually my sub-X primarily was I talking millimeter a for broader amount that. was still it’s – on handsets gig, Yes. still comments Mehdi, small And of were validation chipsets wave. fairly

wave millimeter next then So wave a infrastructure I of just to happens think, that the timing I’m being is we and natural in which in view broadly then handsets of handsets, of year. referring speaking, waves infrastructure, and waves what

it. Got much. so you Thank

Our of comes next from Murray Markets. question RBC Michael with Capital line the

open. is line Your

and wanted as for I Murray segment. ADAS previously on compared Michael transportation the market? little us Have this is you on Muller. see to if you info give up as held to well overall your more Robert the could electrification a auto segments Hi, hoped bit

is this Eric. Michael, Yes,

in the mentioned active synonymous those saw I was have remarks, grown. the prepared active we combination safety still this ADAS two biggest actually and or in case. strength with in the the safety of So

the which we – And is of headwinds, little both a areas are the at that remain under at really areas there has area, strength. those least fact really fastest-growing in that past, longer of light last narrowing look to other When business industry, parts term, we’re the bit strategy of these think has more I the as quarter. getting quarters. safety kind when areas been for general tending of our are in more of are critical so few investments just areas to follow And the our the transportation those been focused the said customer that the particular, is on that to active you on, it’s and focused in

received? follow-up if increased feedback you touched any site been Any just I’m but or question, portfolio And customers? feedback do has your Okay. on earlier, you I and rebranding how have traffic have on this sorry from a

we in actually Yes, and significant response the I actual see Michael. doing. traffic some pretty early, like in Thanks, mean, do assets of some been Sure. increases site obviously. things Yes. to we’ve that advertising

So I’d company, stuff. as say a measure this that data early response is all we the head positive anecdotally because and, of measurement course, count, through

positive. but have far the been early, quite so it’s results yes, So

right. you. All Thank

further And Thank call questions any speakers not showing you. now turn to time. this the to back your any for like remarks. further I’d at I’m

for virtual a everyone, conference. you, to hope you our at today. We week see good next day. Thank Okay. joining investor Have

call. participation. Thank Ladies this your and today’s you concludes gentlemen, for conference

a may now great day. You Everyone, have disconnect.