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spk01: Good afternoon, ladies and gentlemen, and welcome to the St. Minas First Quarter Fiscal 2024 Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, the 29th of January, 2024. I would now like to turn the conference over to Paige Melching. Senior Vice President of Investor Communications. Please go ahead.
spk00: Thank you, John. Good afternoon, ladies and gentlemen, and welcome to Sandmina's first quarter fiscal 2024 earnings call. A copy of our press release and slides for today's discussion are available on our website at sandmina.com in the investor relations section. Joining me on today's call is Yuri Sola, Chairman and Chief Executive Officer.
spk07: Good afternoon.
spk00: and John Faust, Executive Vice President and Chief Financial Officer.
spk07: Good afternoon.
spk00: Before I turn the call over to Yuri, let me remind everyone that today's call is being webcasted and recorded and will be available on our website. You can follow along with our prepared remarks and the slides provided on our website. Please turn to slide three of our presentation and take note of our Safe Harbor Statement. During this conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution you that such statements are just projections. The company's actual results could differ materially from those projected in these statements as a result of factors set forth in the Safe Harbor Statement. The company is under no obligation to and expressly disclaims any such obligation to update or alter any of the forward-looking statements made in the earnings release the earnings presentation, the conference call, or the investor relations section of our website, whether as a result of new information, future events, or otherwise, unless otherwise required by law. Included in our press release and slides issued today, we have provided you with statements of operation for the first quarter ended December 30, 2023, on a GAAP basis, as well as certain non-GAAP financial information. A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items. Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results. Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, taxes, EBITDA, net income, and earnings per share, we are referring to our non-GAAP information. I would now like to turn the call over to Yuri.
spk07: Thanks, Paige. Good afternoon, ladies and gentlemen, and welcome. And thank you all for being here with us today. First, I would like to take this opportunity to recognize Samina's leadership team, and our employees for doing a great job. So to you, Sanmina's team, thank you for your dedication and delivering excellent customer service. And let's keep it up. Please turn to slide four. And now, ladies and gentlemen, I would like to introduce to you John Faust, Sanmina CFO. John joined Sanmina on December 18, 2023. He brings over 20 years of finance, accounting controls, and operational experience. John previously served as a global controller and head of finance, transformation, and corporate services at HP Inc. He was also CFO of Aruba, a Hewlett Packard enterprise company. And he held various leadership roles at Hewlett Packard Enterprises. John has proven track record driving transformational business strategies. He's a highly accomplished leader with extensive background, and I can tell you I'm very happy to have John on Sanmina leadership team. Now let's go to our agenda for today's call. You have John to review details of our results for you. I will follow up with additional comments about Sanmina results and our future goals. then John and I will open for question and answers. And now I'd like to turn this call over to John. John? Great.
spk05: Thank you, Yuri. Good afternoon, ladies and gentlemen. It's a pleasure to be here today and to be on my first earnings call for Sanmina. I've been with the company for about six weeks now, and I've really enjoyed meeting the team and learning about the business. Sanmina is a company that I have long respected during my many years at HP because of its customer-centric approach, focus on operational excellence, and overall reputation of being a market leader in the EMS industry. While I've only been here for a short time, my experience to date has only strengthened that perspective. I'm excited to be here and to work with Yuri and the rest of the leadership team to continue to deliver on Sanmina's strategy and to drive value for our shareholders. With that, let's talk about the Q1 results. Please turn to slide six. First, I want to commend the entire Sandmina team for executing well and delivering financial results in line with the company's outlook while continuing to navigate a difficult period in the market. First quarter revenue was $1.87 billion, in line with our outlook of $1.85 billion to $1.95 billion. As a reminder, the decline in revenue results from the ongoing market-driven inventory absorption that we've been managing with our customers which is unfolding in line with our expectations. Non-GAAP gross margin was 8.8%, up 10 basis points sequentially and 30 basis points compared to the same period last year, which is at the high end of our outlook, largely driven by favorable mix. Non-GAAP operating margin was 5.5%, down 20 basis points sequentially and 50 basis points compared to the same period last year, which is at the midpoint of our outlook as we continue to carefully manage costs and make targeted investments when needed. Non-GAAP earnings per share came in at $1.30, based on 58 million shares outstanding on a fully diluted basis and at the high end of our outlook. Please turn to slide seven, where I'll talk about the segment results. IMS revenue came in at $1.5 billion, down approximately 8% sequentially due to lower demand and ongoing customer inventory adjustments, with non-GAAP gross margin down 40 basis points to 7.6% due to lower revenue and mix. DPS revenue came in at $394 million, down 10% sequentially due to similar dynamics as the IMS segment, but non-GAAP gross margin was solid at 13% due to favorable mix and operational improvements we've been driving across the business. Now please turn to slide eight, where I'll comment on the balance sheet. Sandmina has a very strong balance sheet, which is a key advantage of the company and a pillar of our value proposition to investors. Cash and cash equivalents worth $632 million. We ended the first quarter with inventory of $1.4 billion, which is down 6% sequentially and down 18% from a year ago, as we have continued to focus on improving our inventory position. We continue to have one of the strongest balance sheets in the industry with low leverage, which allows us to both navigate complex market environments and capitalize on the long-term opportunity in front of us. Please turn to slide 9. where I'll talk about cash flow and capital allocation. We did a great job managing cash this quarter, and as I've been reviewing Sandmina's capital allocation priorities, I'm confident we're bringing our cash to use in the right areas. Each quarter, we evaluate our capital allocation requirements and look for opportunities to drive shareholder value, taking a disciplined ROI-based approach when making decisions. As a reminder, those priorities are to, number one, Fund organic growth. Number two, execute on strategic transactions. Number three, reduce our debt and carefully manage our leverage ratio. And number four, do shared purchases. The actual mix of which depends on our needs and opportunities. To touch on a few highlights, cash flow from operations for the quarter was $126 million. Capital expenditures were $34 million as we continued to make investments in the end markets that will support Sandmina's long-term profitable growth. Free cash flow was $92 million. And during the quarter, we repurchased 2.1 million shares for approximately $106 million. And as of December 30th, we have approximately $174 million left on our board-authorized plans. Going forward, we will look to do share repurchases opportunistically. To conclude on the Q1 actual results, overall, it was a strong quarter as we delivered on what we said we would despite the headwinds we face as customers continue to adjust inventory levels.
spk04: Please turn to slide 10.
spk05: I'll now cover our outlook for the second quarter. which is based on everything we are seeing in the market and forecasts from our customers. Our outlook is as follows. Revenue between $1.825 billion to $1.925 billion, essentially flat with the prior quarter. Now, while we're not providing guidance beyond the second quarter, we are seeing signs that demand and revenue should start to improve in the second half of the year, which Yuri will elaborate on shortly. Non-GAAP gross margin of 8.3% to 8.8%, consistent with prior quarters and dependent on mix. Operating expenses of 60 to $62 million in line with normal levels. Non-GAAP operating margin of 5.2% to 5.6%. Other income and expense, approximately $12 million
spk04: in line with normal levels, a tax rate of 17% to 18%.
spk05: We also estimate an approximate $3 to $3.5 million non-cash reduction to our net income to reflect our JV partners' equity interest. Non-GAAP EPS in the range of $1.20 to $1.30 based on approximately 57 million fully diluted shares outstanding. Capital expenditures to be around $40 million to support new programs and future opportunities as we continue to invest where needed to support our long-term strategy. And finally, depreciation of approximately $30 million. Overall, I'm very pleased with our performance this quarter and excited about the opportunity ahead. And now that I'm on board, I look forward to meeting with many of you and hearing your perspectives. With that, let me turn it back to Yuri.
spk07: Thank you, John. Ladies and gentlemen, let me add a few more comments about our financial highlights for the first quarter, and I'll review our end markets and outlook for the second quarter and the rest of the fiscal year 24. Please turn to slide 12. For the first quarter, as you already heard, overall we met outlook and we demonstrated our ability to manage costs and operational execution in this macroeconomic environment. For overall markets, we are seeing ongoing customer inventory adjustment coupled with softer demand across the industry. What is the main advantage of this environment? Our business is aligned to adapt to market dynamics like this. We have strong cost management and operational execution. We are well diversified in growth markets. In the key markets that we focus on, our customer requires Samina technical capabilities, global regional footprint, and industry-leading IT systems managed by Samina smart connected MES. The bottom line is that Samina provides a competitive advantage to our customers, by delivering predictable and consistent performance globally. Please turn to slide 13. Let me talk to you now about the revenue by end markets. As we said, we are operating in a very dynamic environment. Our team did a great job delivering first quarter financial results in align with our outlook. As you can see in a graph, industrial medical defense and automotive was 67% of our revenue. came in at $1,257,000,000 per quarter. Quarter to quarter revenue was down 6.4%. What we saw in here is that some inventory adjustments and softness in the medical sector. For communication, networks, and cloud infrastructure, we delivered 33% of revenue, or $680,000,000. Quarter to quarter was down 12.8%, mainly due to inventory adjustment at communications market and softer demand from end markets. We also saw some softness in cloud enterprise sector. For the first quarter, top 10 customer represented 45% of our revenue. Bookings for the first quarter were slightly better than our fourth quarter of 23. Demand for the second quarter is sequentially flat, but we expect to see sequential improvements in second half of fiscal year 24. Please turn to slide 14. Now let's talk about the markets that are going to drive the future growth for us. Sanmina has been investing in faster growing and higher margin end markets. These are key markets for us, cloud, defense and aerospace, medical digital health, electrical vehicles, renewable energy, industrial and optical packaging. For cloud, basically build around AI and ML, we see a lot more new opportunities driven by upgrade of cloud networks to meet AI traffic needs for the future. Defense and aerospace will continue to see solid demand. For medical digital health, we have strong base of customers with positive trends for longer term. For electrical vehicles and electrical vehicle charges, we see fair amount of new project and lots of great opportunities in front of us. Renewable energy, new projects for us will drive the growth. For industrial, we have a solid base of business and new projects in a pipeline. And optical packaging, for us it's all about 800 gigs. We see a lot of trends in this side of the business. So I can tell you that the pipeline of the new opportunity is exciting for our future. Please turn to slide 15. Now let me tell you about Samina's priorities to drive long-term profitable growth. Number one, Samina, Culture is basically to build everything around customer requirements. We are very customer-centric company. Because of that, we're able to build a strong long-term partnership with the market leaders. We have great diversified customer base in key markets. And strategy, again, is to build around the customer needs. And I can tell you that we are, even in this market, we are adding new strategic customers to our existing base. Number two is to continue to provide leading technology in heavy regulated markets. Our technology is a competitive advantage. We provide total solutions from NPI to full systems. We are well respected by our customers and industry for quality of execution. We also deliver time to market flexibility for our customers so they can get their new products to the market at a faster rate. Number three, Sanmina is positioned for a long-term growth. For fiscal year 24, we're starting with a lower revenue base. We knew that beginning of the year with all the inventory correction that is going on, but we do have a strong pipeline of the new opportunities. We do expect sequential improvements in the second half of fiscal year 24, and we'll continue to invest in the growth opportunities. We also continue to optimize capital structure to drive the growth in next two to three years. So this way I can tell you that the revenue goal is to get back to $9 billion run rate and then drive that growth to $10 to $12 billion. But we don't want to just grow. Number four for us is margin expansion and cash flow generation. We are focused on margin expansion. And our business model will allow us to do that. Short term, our operating margin goal is 5% to 6%. And if you look at the last two years, we're able to deliver those numbers more than a high end. Longer term, we believe that our long term operating margin goal Internally, it's over 6% plus. We have high confidence we'll get there. And we'll continue to generate cash to drive this growth. And number five for us is how do we maximize the shareholder value short-term and long-term? As John told you earlier, we repurchased shares opportunistically. For the first quarter, we bought over $100 million. And what also positive in Sanmina business here is that we have significant leverage still in our business model. So now please turn to slide 16. For the first quarter, as you already heard from us, we had a solid execution and excellent performance by our team. Revenue of $1,800,700,000 in line with our outlook. We delivered a non-GAAP operating margin of 5.5%, and we delivered non-GAAP diluted EPS of $1.30. And this is at the high end of our outlook. For second quarter revenue outlook, we're going to be at $1,825,000 to $1,925,000. And non-GAAP diluted EPS, we guide in between $1.20 to $1.30, which is basically flat to our first quarter. For the year, as we already said, we are seeing ongoing customer inventory absorption and softness in demand for the first half of this year. But we believe for the second half of the year, we expect to see sequential improvements. Ladies and gentlemen, now I would like to thank you for all of your time and support. Operator, we're now ready to open the lines for questions and answers. Thank you all again.
spk01: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Christian Schwab from Craig Hallam Capital Group. Your line is now open. Hello, Christian.
spk06: Hey, Yuri. Can you just specifically... You know, on the growth markets, can you tell us which one or two that you guys anticipate driving the sequential growth in the back half of the year?
spk07: Well, as I mentioned earlier, if you look at our industrial medical defense and aerospace markets, we believe those markets are pretty stable for us. And, yeah, there's some inventory adjustments going on now. but we expect to see nice improvements in a third, especially as we exit our fiscal year and then first quarter of calendar year next year. So those are the markets. Also, when it comes to, let's talk about communication networks for us, if you look at that market, we had a major inventory correction with some of the projects there. Based on those, we see some improvements in the second half, and some improvements will probably take longer than a couple quarters to get there. But on the cloud infrastructure side, a lot of our networking customers are into cloud AI, and we are involved in a lot of the new projects that are coming up that basically will be upgrading the cloud infrastructure, and we believe that Semina will have a fair amount to participate in that segment in the second half of the year and beyond.
spk06: So on the communications equipment part, do you anticipate that exiting this quarter, for the most part, each customer's inventory levels vary, but Do you think after this quarter the worst is kind of behind you, or is this going to be puts and takes as some have, as you suggested, a few more multiple quarters of digestion and others are possibly returning to ordering again? I guess that wasn't clear.
spk07: Yeah, I would expect to see improvements in the third quarter of our fiscal year. even cross those markets, but to see more better improvements probably until the fourth quarter and some of that. But I would say worse is behind us. You know, we'll see how we go through this quarter, but I would, you know, I don't know if I'm smart enough to know when is the bottom, but I would expect, I do expect based on what I see and what I'm hearing from key customers that definitely third quarter we should be able to improve our shipments. So I can say that, yeah, I think the worst is behind us. Because some of these communication corrections have been going on for the last two and a half quarters. Right, correct, yeah.
spk06: So then my last question, Yuri, on the optical, you talked about seeing, you know, strength in particular at 800 gig. Are you guys seeing any strength or well-positioned as the industry possibly starts moving to 1.2 terabytes?
spk07: Yes, yeah, we are working on some of those new programs, yes, especially on the pluggable side of the business.
spk06: Okay, and you would anticipate that that market would be solid in 24, is that fair?
spk07: For us, I think, you know, definitely there's some positive movements around, but I would say end of the 24, 25, we expect a fair amount of upside in that segment.
spk06: Okay, great. Thanks, Yuri. No other questions.
spk04: Thanks, Christian.
spk01: Your next question comes from the line of Anja Soderstrom from Sidoti. Your line is now open.
spk02: Hi, thank you for taking my questions. Congratulations on the follow-up quarter here, despite the challenging environment.
spk07: Yeah, thanks, Anja.
spk02: to dive a little bit further into the end markets as well and the medical there. We heard from other peers there that there has been some inventory corrections there. What are you hearing in terms of that? And do you have new programs that are ramping that will sort of offset that if that prolongs longer than anticipated?
spk07: Yeah, Anya, you know, there's an inventory correction now across almost every customer out there, but at a different level, okay? There are some that not a major impact, and like in communication side, we had a more impact. On a medical side, during this quarter that we just finished, we had some softness in demand and some inventory correction, and we expect that to continue in the second quarter. and we hope that improvements in the third and fourth quarter of this year. So our base, you know, we're around 20% of our revenue comes from medical, so it's a very solid customer base for us. But with us, we also have a lot of programs that are basically changing into the end of 2024 and 2025 programs. in some cases, even to 26. So the next two years, we got a lot of new programs. They have upside, but also going through some upgrades.
spk02: OK. And was there any of these end markets within those groups that you're talking about that were particularly strong? Well, definitely.
spk07: Defense and aerospace for us is still solid demand. We're still chasing certain parts, especially in some of the unique technology. Renewable energy for us is demand is strong now, but a lot of it is a new program, so just ramping up the new programs. Industrial for us was solid. That was about 27% of our revenue, you know. So that continues to be solid for us. And as I said earlier in the prepared statement, on cloud, we're starting to see a fair amount of demand from our customers as they are switching to support AI and ML.
spk02: OK, thank you. And in terms of inventory, it seems like you are doing a great job in managing that as well. Do you think we should continue to see improvements from here, or where are you targeting there?
spk07: Yeah, we definitely expect to see improvements. Now with my new CFO, I should have a lot of improvements. So, no, we do expect improvements, and we have programs internally that we're working very hard on, and with our customers. You know, we learn a lot through the COVID days and how to manage it and so on. So there's a lot of focus both on our customer side and, of course, on our side to make sure that we are smarter and, you know, going forward, how do we manage inventory, especially if we have hiccups in our industry like we have with COVID.
spk02: Okay, thank you. And we're talking eventually achieving 10 to 12 billion revenue in a couple of years here. and 6 plus percent operating margin. What kind of revenue level do you think you need for that operating margin?
spk07: I think for us it's a mix of the business, how much it comes from our technology group and how much does it come from our products. But as you can see, once we get closer to the $9 billion plus, I think last year we exceeded a year almost, what, 5.9, 5.8%. But, you know, as we get to the run rate around 9 billion plus, we expect to be in that high fives, the low sixes. But the key for us is the mix. We're investing a lot of these new technology products, some of our components. We are investing in some of the defense industries. We are investing into lithography. You know, we have some European partners there that we have for lithography equipment, precision machining, and so on. So we've got a lot on our plate, and I think as long as those things come together the way – because we already spend a lot of the money for a growth, so – We've got to grow. I mean, that's the whole focus right now internally. But we've got to grow smart. We don't want to grow for the growth's sake. We've got to make sure that we have respectable margins.
spk02: Okay. Thank you. That was all from me. I'll get back in queue.
spk04: All right. Operator, we have time for one more question. Thank you.
spk01: As a reminder, if you have a question, please press star 1. Your next question comes from the line of Rupalu Bhattacharya from Bank of America. Your line is now open.
spk07: Hello, Rupalu.
spk03: Hi, Yuri.
spk07: How are you? It's good to have you back.
spk03: Yeah, thanks for taking my questions. Appreciate it. I have a few questions. Let me start by welcoming John. Thanks. You know, it's good to have you on board. Maybe can you just tell us what your maybe top two, three focus areas are over the next 12 months?
spk05: Yeah, thank you, Rupalu. It's nice to connect with you and looking forward to speaking more with you. A couple of things, right? So number one, I would just say learning the business, right? That is the top priority for me. As I mentioned in my prepared remarks, I've been here for about six weeks and been spending a lot of time meeting with the leadership team. In my first week here, I was able to make a trip down to the Guadalajara, and that was very important, just to be able to see our capabilities firsthand at one of our major facilities, and I've done some in the Bay Area too. And then really just getting into the details of the business. So just a couple weeks back as we were preparing for this earnings call, kind of in the normal course of business, we went through all of our quarterly business reviews. So that was a great opportunity for me to dig in deep to all the respective divisions, learn about what's happening in the market, what's going on with our customers, and and helping to decide what our priorities need to be, right, to drive some of the things Yuri was just talking about with Anya as an example. You know, where do we see opportunity to drive operational improvements, whether it be in inventory or otherwise?
spk03: Got it. Let me ask you another question, and either you or Yuri can chime in. So this quarter, the CPS segment saw about 220 basis points of sequential improvement on revenues that were sequentially down. I mean, part of this, you said, is mixed. Part of this is operational improvements. I'm trying to see if you can parse that out, because if we look from 1Q to 2Q, you know, as you've, in years past, you've had margins decline. So how much of this is structurally sustainable at the 13% level, and how would you characterize this as, you know, mixed-related versus operational, more structural improvements?
spk07: Yeah, Rupu, let me – this is Yuri. Let me kind of give you an overview of what was going – what's going on last quarter. As we said, you know, definitely there were some inventory adjustments that affected the revenue for us. Similar to the other businesses, we believe that our component business, we're starting to see light end of the tunnel. We're seeing, you know, because when you, as the demand comes back, it's going to come in our component businesses first, okay? So we're starting to see some of that right now. So the key to that, our goal for our component products and services, Ruplo, is to get that minimum 15%. So, yes, it is sustainable. And I think it's now for us, it's all about getting the revenue. We might have short-term plus and minus, you know, percentage of there up and down, but I think the longer term, just programs that we are working on and what we have in front of us, and investments that we already made, Ruplu, into our factories. If you ever have a time you come to the Bay Area, we'll take you around and show you some of the investments that we made in a component size of the businesses really to help us not just drive the revenue, but to go after the business that is more profitable. So, John, you want to add something to that?
spk05: Yeah. What you learned in the last QVR. Just in the six weeks that I've been here. But CPS is a big priority for us. I think I would add to what Yuri is saying. And really just focusing on expanding and adding more value for our customers and And if you look along the different lines of businesses there from precision machining, plastics, printed circuit boards, all of them we saw some good operational improvements. But we think that there is more that we can do there, to Yuri's point, to continue to grow that business, add value for our customers, and expand margins.
spk03: Okay, thanks for the details there. Since you mentioned revenue a couple of times, I think, Yuri, you've said that you expect sequential growth in the second half. If I look at consensus estimates, I mean, consensus is modeling double-digit growth sequentially for both 3Q, 4Q. What do you think about that? I mean, when you talk about sequential improvement, I mean, is that the kind of level of improvement you're expecting, like double-digit sequential growth? Any color on that? How strong a growth are you expecting?
spk07: Yeah, we're guiding RuPaul strictly to make sure that we are clear here. We're only guiding one quarter at a time in this environment. But I can, you know, as we get into the third quarter, especially in the fourth quarter, you know, the fourth quarter, you know, it's going to be upside. The question is how much, okay? And it can be double digits, okay? For the third quarter, I think it will be up, but it's really hard for me right now to – speculate that how much. It all depends how inventory shake out, but our customer base and the new programs that are coming up can drive the growth. We're just going to see it. So I don't want to overcommit, but I can commit that the longer term, this company's position to be a lot bigger than what we just did.
spk03: Okay, thanks for that. And maybe I'll just try and squeeze one more in. You also talked about strong free cash flow this quarter and inventory went down. I mean, is there a target? Like, how should we think about free cash flow? Typically, EMS companies, if the economy is weak, the counter-cyclical balance sheet, you should have strong free cash flow. Any thoughts on free cash flow, sustainability, and thoughts for free cash flow for the full year?
spk07: Yeah, I mean, Rupu, you know this business is just as good as I do. Yeah, definitely, we should be generating... In a down market, we should be generating a fair amount of free cash flow as we did last quarter. You know, and we're utilizing our cash properly. Our stock is a high value, so we bought over $100 million of debt. We continue to invest. Yeah, we expect to be, you know, cash flow free for a year. I mean, if you look at historically, you know, we've been generating free cash flow around $200, $250 million, and we should be at that level.
spk03: Port Fiscal 24?
spk07: I'd say in the general term, we'll just see how this inventory gets used up in short term. I think that short term is all, you know, first of all, the good thing about inventory, Ruplo, you know, in our industry, that we have a contract where we only buy what is our customer tells us to buy, and they're 100% responsible for this inventory management. We charge for carrying charges and et cetera. But just getting these things off our books and turning it into the cash might take a little bit more than just the three months.
spk03: Okay. All right. Thank you for all the details. Appreciate it.
spk07: Yeah. Come and see us.
spk03: All right. I will.
spk07: All right. Well, first of all, I'd like to say thank you to all our participants. And if we didn't answer all your questions, as John said, you know, we're available, especially for John right now as he wants to get to know you. So please give us a call.
spk04: Thanks a lot. Thank you, everyone.
spk01: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
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