This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk00: Good afternoon, everyone, and thank you for participating in today's conference call to discuss the financial results of Perasso, Inc. for the fourth quarter and full year of 2021. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Jim Sullivan, CFO of Perasso, Inc.
spk02: Good afternoon, and thank you for joining today's conference call to discuss Perasso's fourth quarter and full year 2021 financial results. I'm Jim Sullivan, CFO of Perasso, and joining me today is Ron Calabria, our CEO. This afternoon, we issued a press release and related Form 8K, which was filed with the United States Securities and Exchange Commission, or the SEC, The press release and Form 8K are available on Parasso's website at www.parassoinc.com under the Investor Relations section. There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on Parasso's IR website. As a reminder, comments made during today's conference call may include forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. Perasso advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net income, cash flows, or other financial items. Also, any statements concerning the expected development, performance, and market share or competitive performance relating to our products or technologies. All forward-looking statements are based on information available to Perasso on the date hereof. These statements involve known and unknown risks, uncertainties, and other factors that may cause PARASO's actual results to differ materially from those implied by the forward-looking statements, including unexpected changes in the company's business. More detailed information about these risk factors and additional risk factors are set forth in PARASO's public filings with the SEC. PARASO expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. except as required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the investor relations section of Parasa's website. Now I would like to turn the call over to our CEO, Ron Glibury, for his prepared remarks. Ron?
spk03: Thank you, Jim, and thank you all for joining us on today's call. Good afternoon. I'm pleased to be joining you today from our first earnings call as a public company following the completion of our business combination with Moses in December. To tell you a bit about Perazzo, the company has been in the millimeter wave or MM wave business for over 12 years. MMWave is a technology which utilizes a specific portion of the radio spectrum in the 24 to 100 gigahertz frequency range. What we believe differentiates Perazo from many MMWave suppliers or others who have attempted to develop an MMWave technology is we've been shipping in volume whereas many have failed to commercially scale this technology. MMWave is very complex and the shift from development in the lab to customer deployment is a significant learning experience. Today, we're shipping 60 GHz products to multiple Tier 1 customers and have an expanding pipeline of opportunities in a variety of end-user market applications. We are also actively working to expand Peraza's product line from our existing 60 GHz mmWave products to include 5G mmWave products. Over the next three years, 5G mmWave for consumer premise and hotspot applications is estimated to represent a $3 billion TAM. And we believe we're well positioned for growth in the coming years with the global expansion of 5G MMWave technology. The central theme underpinning MMWave technology is that the existing wireless spectrum simply cannot provide the necessary bandwidth to satisfy increasing user demand. This is driven by a couple of fundamental factors. First, the number of users on global networks continues to increase. An additional driver of user demand is video. Applications such as TikTok, Netflix, and Twitch are having a profound impact on global wireless demand. In fact, Facebook recently indicated they are rolling out Facebook Reels on a global basis due to direct competition from TikTok. When you compare a static Facebook page to a Reels video, the difference is an order of magnitude increase in the wireless bandwidth needed for a single Facebook user. Additionally, we're seeing ever-increasing video resolution, starting with HD, moving to 4K, and eventually 8K. This is particularly critical for over-the-top video applications such as Netflix and YouTube, as well as streaming sports. As video becomes the dominant traffic category on mobile networks, we believe MMWave will be the primary source of additional capacity for 5G networks. Specific to the 5G specification, The millimeter wave frequency band spans from 24 to 100 gigahertz. This compares to 4G, which utilize spectrum below 6 gigahertz. 5G standards organizations are anticipating the need for additional spectrum in the future. In fact, during very early discussions of various interest groups regarding 6G, there's been a clear recognition of MMWave as being fundamental to future generations of mobile technology. We see these trends as a validation of MMWave technology and the enormous market opportunity further supporting investment Perazzo has made to date. Circling back to what differentiates Perazzo and how we win in millimeter weight, Perazzo has several established and sustainable advantages in this market. First, our customers have derived field proven 10 times performance advantage in deployed solutions for the fixed wireless market. This means they're shipping devices with a range of close to 30 kilometers, which is roughly 10 times farther than competitive offerings at similar data rates. This expanded network coverage is achieved through our collaboration and deep engagement with customer engineering teams. Second, Peraza has the experience and know-how gained from designing MMWave circuits for over 12 years. MMWave technology is challenging and very sensitive to minor variations in the manufacturing process. As such, foundry models can prove difficult to develop and are often inaccurate when applied in the design of MMWave RF circuits. Our engineers must characterize and test manufactured circuits in order to validate their original models. And this refinement process takes years to fine tune. We believe this provides Peraza with a significant technical barrier. And while potential competitors may try to catch up, in the meantime, our engineering teams continue to produce improved new models. Driven by our experience shipping millimeter wave devices in volume, we have learned how to improve yields and reduce manufacturing costs. This has allowed Peralzo to improve efficiencies over time and allow for future margin expansion in the coming years. The manufacturing know-how also serves as an additional barrier to competition. Peralzo has developed deep engagements with our customers, enabling us to add new high-value features to our product into customer roadmaps, which assists in focusing our R&D efforts. These relationships put Perrazzo in an important competitive position as our products are optimized through customer feedback and interaction, which we believe has enabled us to establish a leadership position in the millimeter-weight market. In addition, we've made significant investments in software. By offering both silicon and software, we provide our customers a platform solution which incentivizes long-term commitments and increases switching costs given the system-level performance we deliver. This strategy contrasts with traditional RF vendors who relied solely on RF performance to remain in a dominant position. Horazo products deliver excellent RF performance, and when combined with our extensive software platform, further entrenches Horazo with customers and provides a long-term sustainable advantage in our markets. Our millimeter wave technology is backed by a strong IP and patent portfolio, which we categorize into four primary groups, millimeter wave RF silicon, essential standard claims, millimeter wave antennas, and comprehensive software. Early on, Peraza made significant investments in antenna technology and developed key knowledge related to the manufacturing and optimal deployment of millimeter wave antennas. This is critical in millimeter wave solutions. as the antenna plays a fundamental role in system performance, particularly in phased array systems. We've also actively participated in MMWave's standard setting process, and as a result, we've been awarded essential claims patents for the IEEE 802.11ay standard. Any company planning to implement a semiconductor device utilizing this standard must obtain a license from Perazzo for these patents. Finally, following our significant investments in software, the company has filed several patents related to the implementation of our software and MMWave ICs. We believe our MMWave patent portfolio provides us with a strong defensible position within the MMWave market. Beamforming is another fundamental aspect of MMWave technology, and Perazzo has built a core competency in robust and effective beamforming as well as beam steering. The primary function of beamforming technology is to concentrate RF energy, ensuring strong, high-performance, long-distance connections. The objective of beamforming is to focus RF energy towards its target, similar to using a lens to concentrate light or energy from the sun towards a single point. The focused and dynamic nature of our beams make it very difficult for third-party interlopers to eavesdrop on millimeter wave communications. As such, mmWave is gaining traction in secure private networks. Examples of industries with which Perazzo is engaged includes transportation, advanced manufacturing, and defense. Another inherent advantage of beamforming is a lower susceptibility to signal interference. This is important in wireless AR-VR, which has very little tolerance to interference. Finally, the narrow beam technology utilized by Perazzo allows mmWave systems to overlap, creating a mesh network in dense urban areas. This expands the available bandwidth for high usage applications such as private networks and fixed wireless applications. One of the key aspects to our product strategy is the development of mmWave modules. It's important to stress here that Peraza is one of the few MMWave vendors that controls most aspects of the module IP. This includes RF circuits, software, and importantly, our antenna technology. Through the control of this IP, we avoid third-party margin stacking, and we're able to provide a highly competitive, very cost-effective solution. It's important to emphasize the inherent value proposition of this strategy. MMWave technology requires a tight interface between silicon and the millimeter wave antenna. Historically, customers were required to test and calibrate the signal between our silicon and network antennas. With the introduction of our mmWave modules, we have removed the need for the customer to deal with the delicate manufacturing challenges presented by mmWave technology. Perazzo is able to provide customers with stable and predictable solutions for which we can guarantee certain levels of performance. Additionally, this strategy has successfully helped accelerate our customers' time to market in the order of six to nine months, given the need for less technical support and less testing prior to deployment. Our module strategy allows us to control Peraza's solution at the system level, offering enhanced performance and ease of use. We believe this provides an advantage over competitors that focus solely on the component level with limited software and system capabilities. The target opportunities for Perazzo can be broadly divided into two markets, fixed wireless access and consumer electronics. Today, we're generating revenue in both of these end markets with growing opportunity pipeline. Our initial solution for 5G networks is consumer premise equipment for fixed wireless access. In addition, our 5G roadmap is focused on expanding opportunities in consumer electronics, including hotspots, laptops, and tablets. Specific to fixed wireless access, we have proven ourselves as a leading supplier of ICs and modules for the 60 gigahertz market. We've been shipping mmWave chipsets in volume since 2017 and established Perazzo as a competitive alternative in the fixed wireless market. Enabling solutions to span 29 kilometer links requires customization of all aspects of our solutions, including our circuits, our antennas, and our software. Working closely with leading customers, we were able to optimize our beamforming algorithms to achieve optimal system performance. This is a feature we do not believe the competition can easily replicate. We are committed to extending our leadership in 60 GHz fixed wireless by continuing to expand and develop our product technology roadmaps to achieve even higher levels of performance. Building on our momentum in the 60 GHz fixed wireless market, Our strategy is to further leverage Perazzo's MMWave technology in the 5G fixed wireless market. Carriers around the world are challenged with a shortage of spectrum, and MMWave is an integral part of the 5G specification and provides greenfield network bandwidth capacity. We also believe that fixed wireless gives carriers the opportunity to deploy competitive fixed-line Internet alternatives for both urban and rural deployments. While we haven't yet announced our specific 5G product offering, Our initial focus will be consumer premise equipment. Key requirements for this market that we believe Peraza will deliver include a high level of integration, a cost-effective solution, superior performance, and manageable power consumption. We will employ all aspects of our existing module strategy to our 5G solution. Important characteristics of MMOA technology include high data rate for wireless video, low latency, under 5 milliseconds, and significantly reduced interference. These aspects of 60 gigahertz millimeter wave can enhance and enable immersive video applications such as AR, VR, video conferencing, and docking. Today, Perazzo is actively engaged with leading consumer wireless video customers, and we anticipate initial production shipments in the second half of 2022. Looking forward, we plan to leverage our existing skills and expertise in 60 gigahertz consumer electronics into 5G consumer electronics. Our 5G roadmap is targeting higher volume 5G opportunities such as laptops, tablets, and hotspots. With the introduction of the Metaverse over the last year, it stands to rapidly become the leading use case and driver of high resolution graphics, higher frame rates, and lower latency. The continued development of the Metaverse and enabling devices such as AR and VR headsets, which are typically wireless, will ultimately require the bandwidth and experience that is associated with cable-based connections today. mmWave is the ideal technology to support mass adoption of the metaverse-type environment. mmWave technology supports the key requirements needed for low interference, high bandwidth applications. Moreover, the requirements of the metaverse will continue to evolve and demands even higher levels of bandwidth as resolutions move from 4K to 8K in coming years. With over a decade of experience in MMWave design, Perazzo has developed a deep understanding of using MMWave in VR-based environments. We are currently engaged in AR VR opportunities with multiple Tier 1 customers and see this as a future source of growth for millimeter wave technology. While MMWave and 5G are expected to drive our future growth, in late 2021, we acquired a high-performance memory IC product line through the business combination with MOSES Inc. These memory products have an established customer base, and the design wins are generally sticky and long-lived. Our bandwidth engine ICs have been shipping in volume for years to leading Tier 1 global telecom and networking OEMs. The revenue contribution from the memory IC products come with gross margins, expected to exceed 60%, which would positively contribute to our corporate gross margin profile. Since the business combination, we have identified initial cost synergies, which we expect will improve the combination margins from this product line. In addition, we are pleasantly surprised regarding the opportunity pipeline for the memory business. And based on the current backlog, we have excellent revenue visibility into the second half of 2022. And now I'll turn the call over to Jim Sullivan, our CFO, to discuss the financials. Jim?
spk02: Thank you, Ron. Hello, everyone. It's great to be speaking with you today. During my comments, I will make several references to non-GAAP numbers. Unless otherwise indicated, each reference will be to an amount that excludes stock-based compensation expense, amortization of reported intangible assets arising from acquired assets, business combination transaction costs, and the change in fair value of warrant liability. These non-GAAP financial measures and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related current report on Form 8K, which was filed with the SEC today and can be found at the investor relations section of our website or on the SEC's website. As Ron noted in his remarks, Perasso Technologies, Inc., a Canadian private company, and Moses Inc., a NASDAQ-listed company, completed the business combination in December 2021. The resulting company was renamed Perasso Inc. and began trading under the ticker symbol PRSO and is headquartered in San Jose. From an accounting perspective, Perasso Technologies was the accounting acquirer, and historical financial statements of Perasso Inc. represent those of Perasso Technologies. The statement of operations for the three- and 12-month periods of December 31, 2021, are those of Parasa Technologies and only include the operating results of MOSIS for the period from December 17 to December 31, 2021. The balance sheet as of December 31, 2021 reflects the combined companies. Now for our fourth quarter 2021 results. Total revenue equaled $1.9 million, compared with $5.9 million in the fourth quarter of 2020. For the full year 2021, total revenue was $5.7 million, compared with $9.1 million for the full year 2020. Product revenue from the sale of our integrated circuits and modules was $1.9 million in the fourth quarter, primarily representing shipments of our millimeter wave RF products. This compared with product revenue of $0.3 million in the prior quarter, marking an increase of more than 6x on a year-over-year basis. For the full year 2021, product revenue is $4.9 million, up more than three times the prior year revenue of $1.5 million. We commenced selling millimeter wave modules during 2021 and this was a driver of product growth for both the fourth quarter and full year 2021. Licensing and other revenue for the fourth quarter of 2021 was negative $27,000, compared with $5.6 million in the fourth quarter of 2020. On a full year basis, licensing and other revenues for 2021 were $0.8 million, compared with $7.6 million for 2020. The year-over-year and quarter-over-quarter decreases were primarily attributable to $5 million of non-recurring license revenue recognized from a lead customer in the fourth quarter of 2020 combined with reduced non-recurring engineering or NRE revenues. Gross margin was 30.4% in the fourth quarter of 2021 compared with 89.2% in the prior year quarter. Gross margin reflected lower contribution from high-margin licensing and other non-product revenue combined with costs related to the strategic transition towards selling MMWave modules. For the full year of 2021, gross margin was 42.4 percent, compared with 80.8 percent in 2020. The year-over-year and quarter-over-quarter decreases in total gross margin were due to the shift in revenue, as licensing and other non-product revenue, which have high gross margins, represented a lower percentage of total revenue in 2021 compared with 2020. Product gross margin was 31.4% in the fourth quarter of 2021, compared with negative 82% in the fourth quarter of 2020. The improvement in product gross margin on a quarterly basis year over year was primarily due to the increased sales of our products, including a lead module customer commencing production, allowing us to achieve improved scale. We expect gross margin improvement in 2022 as we expect increased revenue growth, which will enable high levels of scale which should allow us to capture additional cost reductions, along with contribution from our memory IC products, which generally carry gross margins exceeding 60%. In terms of our GAAP operating expenses for the fourth quarter, total operating expenses were $5.3 million, compared with $3.3 million in the year-ago period. The year-over-year increase reflects higher personnel and consulting expenses and supported the growth of our business and development of our new modules and included $0.5 million of transaction costs related to the business combination. On a full year basis, GAAP operating expenses were $18.5 million versus the prior year at $15.5 million and included $1.6 million of transaction costs related to the business combination. Selling general and administrative or SG&A expenses for the fourth quarter of 2021 were $2.2 million compared with $1.5 million in the prior year period. Research and development expenses for the fourth quarter of 2021 were $3.1 million, compared with $1.8 million in the prior year period. On a non-GAAP basis, total operating expenses for the fourth quarter of 2021 were $3.7 million, which excludes stock-based compensation, amortization of intangible assets, and transaction costs related to the business combination, and the change in fair value of warrant liability. This compared with $2.1 million in the fourth quarter of 2020. For the full year, total non-GAAP operating expenses were $12.3 million, compared with $13.8 million for 2020. On a GAAP basis, net income for the fourth quarter of 2021 was $2.5 million, or 28 cents per diluted share, compared with net income of $0.1 million, or 2 cents per diluted share, in the fourth quarter of 2020. On a non-GAAP basis, net loss for the fourth quarter of 2021 was $3.9 million, compared or $0.70 per share, which excluded the stock-based compensation, amortization of intangible assets, business combination transaction costs, and the change in fair value of warrant liability of $8 million. This compared with non-GAAP net income of $1.6 million, or $0.25 per diluted share, in the year-ago period. Adjusted EBITDA for the fourth quarter of 2021 was negative $2.9 million, compared with $3.4 million for the prior year. For the full year of 2021, adjusted EBITDA was negative $8.8 million versus negative $5.1 million for the prior year. Adjusted EBITDA is defined as gap in net income or loss as reported, excluding stock-based compensation, amortization of reported intangibles, business combination transaction costs, the change in fair value of warrant liability, interest expense, depreciation amortization, and our provision for income taxes. Now turning to the balance sheet. As of December 31, 2021, our cash, cash equivalents, and investment balance was $18.1 million, compared with $1.7 million at December 31, 2020. The primary source of cash was the cash required from OSIS as a result of the business combination. As of December 31, 2021, the company had 19.8 million total shares outstanding, which includes approximately 8 million exchangeable shares with the same rights as common shares. which were issued by our Canadian subsidiary to certain Canadian stockholders across the technologies in connection with the business combination. We also have 1.8 million shares, which include shares of our common stock and exchangeable shares, escrowed pursuant to the terms of an escrow agreement that are subject to offset by the company for any losses in accordance with the escrow agreement. These 1.8 million shares will be released subject to any offset claim if the volume-weighted average price of our common stock is at least $8.57 million for any 20 trading days within a period of 30 consecutive trading days during the three-year period following the business combination. Looking forward, our current backlog provides us with excellent visibility for the first half of 2022, and ongoing design wins are expected to bring continued product revenue growth. In terms of guidance, due to the impacts of the continued industry supply chain issues on product shipment timing, we are not providing quarterly guidance at this time. This concludes my prepared remarks. At this time, I would like to turn the call back over to Ron for closing remarks. Ron?
spk03: Thanks, Jim. To summarize, wireless bandwidth demand is increasing exponentially, driven by a combination of new users and proliferation of video traffic. Global carriers are spending billions of dollars to keep up with consumer video demand, but inevitably, existing spectrum has definitive capacity limitations. Millimeter wave technology has been built into the 5G specification and is viewed by industry participants as the path forward to resolve spectrum shortages. In fact, even early research into 6G networks has identified mmWave as the incumbent solution for resolving future frequency shortfalls. Perazzo has been working on mmWave technology since 2008 and is a leader in mmWave solutions. Having invested millions of dollars and numerous years developing mmWave technology, we believe we've established meaningful barriers to entry for our competitors. Perazzo is shipping MMWave technology in volume today and is engaged with customers across a variety of applications, including fixed wireless, secure private networks, consumer electronics, and metaverse applications like AR, VR. I am pleased with the execution of the team in 2021 and the successful completion of the business combination with Moses. We believe Perazzo represents an excellent opportunity to participate in the broad adoption of millimeter wave technology and is poised for significant future growth. Thank you for your participation in today's call, and we would now like to open up the call to any questions. Operator?
spk00: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. Again, that's star 1 on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from the line of David Williams of Benchmark. Your line is open.
spk01: Hey, good afternoon. Thanks for taking the question. I certainly appreciate it, and congrats on the closure of the combination and just the progress you've made. Thanks, David.
spk02: Appreciate it.
spk01: Yeah, so just wanted to ask maybe quickly, Ron, I believe you had previously noted that you guys can address that 28% to 39% gigahertz range or where we are in that 5G kind of for the mobile space. And you talked about shipping in at 60%. I'm just kind of curious if you could maybe walk us through the challenges between where you're currently shipping and what are the real, I guess, technological hurdles to get to that maybe for the mobile side or for that more 5G frequency range?
spk03: Sure, Dave. Thanks for joining the call today. So we define millimeter wave as 24 to 100 gigahertz. So today we're shipping 60 gigahertz. we're actually reducing the frequency for 5G from 24 to 43 gigahertz. So actually from a technology perspective, you know, this is in our wheelhouse. So we actually think our experience in 60 gig actually is a little more challenging than what we're seeing in the 5G space. So I think from a technology perspective, it's in the same ballpark of what we're doing today. But certainly our experience... that we've amassed over the last 12 years is completely applicable to everything we're doing in 5G.
spk01: Okay, fantastic. And I think it's kind of interesting, but today I think Apple released a new lower-end handset, kind of the lower end of the market for 5G, and we're just starting to see that real proliferation of 5G handsets. I'm just kind of curious how you're thinking about the landscape and the development of the adoption cycle. And do you think we're in kind of that, I guess, that precipice of really tipping over where you'll start to see a lot more design activity on maybe the TPE equipment instead of the fixed wireless?
spk03: Yeah, that's a good question. I mean, I don't know if you saw Verizon's announcement last week, but their millimeter wave usage is up 856% year over year. So my two cents is people are getting used to the benefits of millimeter wave and 5G. I think specifically, you know, the carriers have talked about this 10X performance. Millimeter wave is the way you get the 10x performance, and I believe the more people use millimeter wave and get used to millimeter wave will really help that proliferation amongst the carriers. So I think we're starting to see that trend. I was really impressed to see that 856% growth in millimeter wave usage from Verizon last week, so that was very encouraging for us.
spk01: Yeah, that's fantastic. I had not seen that. Thanks for pointing it out. And then maybe just one quick last one for Jim, but just kind of thinking about the balance sheet and your ability to really pursue a lot of the opportunities that are in front of you, how do you think about maybe where the balance sheet is and your burn rate, about $3.5 million? Do you think you have the flexibility to develop and really drive the resources that you need? And what are the puts and takes there? How should we think about that balance sheet over the next 12 to 18 months?
spk02: Yeah, sure. David, you know, we believe that we have the quick cash on hand to support our current business plan. You know, we are, you know, obviously have a suite of products on the millimeter wave side, as well as the product line, the memory product long line that came along with with Moses. So we have, you know, kind of a full set of products to sell. Obviously, it's with the market expanding the way it is for 5g, we want to make sure we continue to invest. But, you know, given the current market conditions, et cetera, we want to make sure we can get, you know, quite far with the cash we have and get us to where we need to go.
spk01: Great. Fantastic. One more quick one, if I can, real quick. But just kind of curious, now that you've closed the combination, have there been any surprises either to the positive or the negative side in terms of what the Moses could contribute?
spk02: You know, I'll start off and then let, you know, Ron comment. You know, from the – From the MOSIS side, as I pointed out, the results here for the quarter included a very minimal amount, two weeks of revenue for MOSIS, call it somewhere around a quarter of a million dollars for that two-week period. Right now, based on our backlog and visibility, we're pleased with the outlook for the MOSIS memory products. What we've seen from customers have put on our backlog. You know, in addition, there's a couple of new design wins that, you know, those turning on are beyond our control. But we're keeping, you know, a close eye. And, you know, we've shipped some initial pre-production quantities. You know, a key point here is that those, you know, we have the existing products. We've been selling them. We have the design wins from the customers. And they carry, you know, 60% plus gross margin. So I don't want to, you know, speak for Ron. But, you know, I'm pleased for the outlook, you know, for that product line, too. contribute nicely in 2022. Ron?
spk03: Yeah, just to expand on that, I mean, I wouldn't say there's any surprises, but it's definitely a pleasant surprise on the upside, right, on the memory business for 2022. So, yeah, obviously very positive.
spk01: Thanks so much, Charlie. Appreciate the time, and best of luck on the quarter. Thanks, David.
spk00: Thanks, David. Thank you. Again, to ask a question, please press star 1 on your touchtone telephone. Again, that's star 1 on your touchtone telephone to ask a question. And as there are no further questions in queue, at this time I'd like to conclude today's conference call. Thank you for participating. You may now disconnect.
Disclaimer