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.
spk03: Good afternoon and welcome to Skyworks Solutions' third quarter fiscal year 2024 earnings call. This call is being recorded. At this time, I will turn the call over to Rajat Gill, Vice President of Mass Relations for Skyworks. Mr. Gill, please go ahead.
spk02: Thank you, operator. Good afternoon, everyone, and welcome to Skyworks' third fiscal quarter 2024 conference call. With me today is Liam Griffin, our Chairman Chief Executive Officer and President, and Chris Finnesol, Chief Financial Officer for Skyworks. This call is being broadcast live over the web and can be accessed from the investor relations section of the company's website at skyworksinc.com. In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call. Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, The results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the investor relations section of our company website for a complete reconciliation to GAAP. With that, I'll turn the call over to Liam.
spk10: Thanks, Raji, and welcome, everyone. Skyworks delivered solid results for the third fiscal quarter of 2024. We posted revenue of $906 million delivered earnings per share of $1.21, and generated free cash flow of $249 million. Revenue, gross margin, and EPS met or were slightly above our prior guidance. Importantly, year-to-date free cash flow was $1.3 billion, or 40% free cash flow margin, which reflects strong working capital management and operational excellence In mobile, we are seeing encouraging signs that inventory levels and order patterns are normalizing. We are energized about the prospects of generative AI catalyzing a meaningful smartphone replacement cycle and driving higher levels of RF complexity. We expect new AI features will only be available on the latest next-generation smartphones, potentially fueling a multi-year upgrade cycle. We are uniquely positioned given our long-standing relationships with the leading smartphone OEMs, best-in-class RF technology, and a global manufacturing footprint. In broad markets, we delivered two consecutive quarters of sequential growth since the December bottom, and we anticipate modest growth for the balance of 2024. In Edge IoT, where demand is improving, we have a strong design wind funnel for Wi-Fi 7 systems, and we expect a healthy multi-year upgrade cycle given faster data transfer speeds and lower latency. In traditional data center and wireless infrastructure, inventory levels remain elevated, which is prolonging the recovery as we continue to undership natural demand. However, once industry conditions stabilize, we expect end customers to replenish inventory back to normal levels. Lastly, in automotive and industrial, we are working through excess inventory levels but seeing signs of stabilization. We remain bullish on our Design One pipeline across our power isolation, RF, and digital broadcast solutions. for the connected car and EV markets. Over the medium to long term, we believe generative AI will migrate to the edge. Most significantly, we believe the rollout of compelling AI applications will drive a smartphone replacement cycle, one that is currently the longest in history, standing at over four years. In edge IoT, AI-enabled devices increasingly incorporate machine learning to support language and computer vision models. Robust RF is critical to facilitate the continuous training to inference between device and cloud. Over time, automotive OEMs will train on big data in the cloud and stream software downloads through over-the-air updates, supporting higher levels of autonomy in vehicles. To facilitate these trends, OEMs need power and extremely fast RF connectivity. For next generation data centers, complex workloads supporting large language models will propel upgrade cycles in switch, compute, and optical networks. Over the medium to long term, Skyworks is well positioned with our high performance timing solutions, targeting 800 gig and 1.6 terabit Ethernet switches and optical modules. Ultimately, our view is there will be a hybrid approach to AI computing, a combo of on-device and cloud-based. Data can be trained in the cloud and deployed to the edge for inference on new inputs. More complex AI tasks will be processed in the cloud and less complex on-device. In addition to these new usage cases, AI-enabled smartphones will further elevate the technological burden, resulting in premium onboard space, requiring higher levels of integration and advanced packaging, energy efficiency translating to lower power consumption, low latency pushing the boundary of signal integrity, and higher throughput and connectivity upgrades with 5G advanced and 6G. These increased technological demands played a Skyworks strength, given our deep customer relationships, exceptional engineering talent, and strong IP portfolio. Turning to our quarterly business highlights, we secured 5G content for premium Android smartphones, including Google Pixel 8a, Samsung Galaxy M, and Oppo Reno 12, among others. We supported the launches of Wi-Fi 7 tri-band routers and access points with Netgear, TP-Link, and Cambium networks. We accelerated our design wind pipeline in automotive, including telematics, infotainment, and CV2X. Despite a challenging demand environment, we continue to make strategic investments in our long-term growth areas, expand our customer base, and diversify the reach of the business. With that, I will turn the call over to Chris for discussion of last quarter's performance in our outlook for Q4 of fiscal 2024.
spk01: Thanks, Liam. Skyworks revenue for the third fiscal quarter of 2024 was $906 million, slightly above the midpoint of our outlook. Mobile was approximately 61% of total revenue, down 21% sequentially. Broke markets were approximately 39% of total revenue, up 1% sequentially. Gross profit was $416 million, with gross margin at 46% in line with expectations. Gross margin grew 100 basis points sequentially, reflecting our ongoing cost reduction actions and favorable mix shift. Also, during Q3, we further reduced our internal inventory resulting in six consecutive quarters of reductions. Operating expenses were $197 million, reflecting our strategic investments in our technology and product roadmaps. We delivered $219 million of operating income, translating into an operating margin of 24%. We generated $3 million of other income, and our effective tax rate was 12%. driving net income of $195 million and a diluted earnings per share of $1.21, which is in line with our guidance. Third fiscal quarter cash flow from operations was $274 million. Capital expenditures were $24 million, or less than 3% of revenue, resulting in a free cash flow of $249 million. Year to date, we generated $1.3 billion of free cash flow, or 40% free cash flow margin. We continue to drive robust cash flow through consistent levels of profitability, careful working capital management, and moderating CapEx intensity. During fiscal Q3, we paid 109 million in dividends and repurchased 764,000 shares of our common stock for a total of 77 million. Cash in investments grew to nearly 1.3 billion and we have one billion in debt, providing us excellent optionality. We remain committed to delivering shareholder value through a disciplined approach to capital allocation. Given our conviction in SkyWorks' long-term strategic outlook and consistent strong cash generation, we announced a 3% increase to our quarterly dividend to 70 cents per share. Now, let's move on to our outlook for Q4 of fiscal 2024. We anticipate revenue of 1 billion to 1 billion and 40 million. We expect our mobile business to be up approximately 20% sequentially as demand and supply patterns appear to be normalizing. In broad markets, we anticipate modest improvements representing three consecutive quarters of sequential growth. Gross margin is projected to be in the range of 46 to 47%, increasing 50 basis points sequentially at the midpoint. We anticipate gross margin expansion during the remainder of 2024, driven by our cost reduction actions, favorable makeshift, and higher utilization rates. We expect operating expenses in the range of 197 to 203 million. as we continue to make strategic investments in mobile and broad markets to drive share gains and increase defacification. Below the line, we anticipate roughly $3 million in upper income, an effective tax rate of 12%, and a derivative share count of approximately 161 million shares. Accordingly, at the midpoint of the revenue range of $1 billion and $20 million, we intend to deliver diluted earnings per share of $1.52. Operator, let's open the line for questions.
spk03: Thank you. Ladies and gentlemen, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 1-1 again. Given time constraints, please limit yourself to one question and one follow-up. Please stand by while we compile the Q&A roster. Now, first question coming from the lineup. Matt Ramsey with TD County line is open.
spk00: Yes, thank you very much. Good afternoon, everybody. Guys, I guess from my first question, your company and all of your industry peers have been through this cyclicality in broad markets for you guys and lots of industrial businesses for your competition. And it's great to see us get back on sort of a sequential growth from a revenue perspective and a chain of that, which will, I assume, continue as you guys come out of the cyclicality here. But as you've revisited that diverse set of businesses, I mean, it's a question that a lot of companies in this space get. Any sense now of what the, I don't know, kind of equilibrium is sell-through revenue level is that this business supports right now? We were obviously overshipping for a bit and then have undershipped for a bit to try to clear the channel, but any sense of where you are right now on the shippling levels you guys are guiding to relative to end consumption and when we might get back to equilibrium? Thanks.
spk10: Yeah, sure. This is Liam. So if we start to take a look at those markets, we are actually gaining some share and driving revenue. You know, we're seeing opportunities in in auto that have substantially been grown uh we see the connected car as a significant opportunity for skyworks we already have meaningful design wins and i know we can do much more uh we're looking at more and more opportunities uh in safety systems driver assist we talked a little bit about that all those markets are actually doing quite well and we have a lot of room to grow uh then moving into some other markets that are quite powerful today are the Wi-Fi cycles. We have a Wi-Fi 7 upgrade today that is going really well. Very important technology, lots of volume coming, and certainly an extension here as we get to more and more opportunities. Home enterprise, commercial, industrial, wearables, all of these markets fall into that category and have been really powerful for us. And we expect that to continue. And further, we have some great opportunities in infrastructure, leveraging networking and cloud. We talked about 800 gig and 1.6 terabit speeds. A lot of really powerful vectors there that can come about here as we move into the next quarter.
spk00: Got it. Thanks, Liam. I guess as my follow-up, if we look at... into the wireless market, it seems like the market has some fairly bullish expectations on units with your largest customer. And you guys had talked last quarter about how the content had changed there a little bit. I just wonder if you could give us any early thoughts Chris on sort of the shape of, of the year or this cycle in, in your wireless business. Um, maybe you have a chance to lean into Android a little bit more and there's the dynamics in both directions that I, that I mentioned with, with Cupertino. So if you have any early thoughts, we'd appreciate it. I know it's early to ask about that, but I get asked about it a lot.
spk10: Yeah, look, I mean, there's a lot of opportunity there. Uh, we are seeing stronger signals in demand for sure. We're starting to see that actually accelerate, leveraging some of the more unique products that we have within the Skyworks bench. So it's a lot of opportunity there. Our outlook looks very good as we look forward. The technologies that we're working on right now are really difficult. They're very, very challenging. It takes great companies and great people to make it happen. As you've heard many, many times, our labs-to-fabs approach really does work. There's a lot of customization as we start to grow into some of these new markets, mobile and others. So we feel really good about that, and I think it's an opportunity for us to continue to move forward. We're just beginning to now engage in AI, and we see that in the phone. We definitely see that as a major, major catalyst for smartphones. And I'll tell you, I don't think there's a company that can do that better than Skyworks. So we look forward for the opportunity. We've got the key pieces in place, and it's a time for us to just put up a little bit more revenue here.
spk00: Appreciate the call, guys. Thank you.
spk10: Sure.
spk03: Thank you. On to our next question. And our next question, coming from the line-up, Chris Castle from Wolf Research, Atlanta, South Bend.
spk09: Yes, thank you. Good evening. The first question is on broad markets. And, you know, it seems like that revenue is just kind of bouncing along the bottom here. You mentioned, you know, expectations for some modest growth going forward. Can you speak to the different end markets within broad markets? You know, I'd imagine that some of the consumer markets that corrected earlier are perhaps some of the ones that are coming out, but I know some of the industrial markets still have some inventory to go through. What's the stage of the inventory correction and kind of how much of that business is normalized and how much of that still has customer inventory that needs to be burned through?
spk01: Yes, Chris, great question. So first of all, we did call out broad markets at the bottom in the December quarter. And so we really turned a corner there And we have seen now two consecutive quarters of sequential growth. And we do expect further growth in the September quarter that's incorporated in our guidance. And we do, beyond the September quarter, further sequential growth and actually an acceleration of that sequential growth, returning back to year-over-year growth in our broad markets business. Now, as you know, there's multiple different end markets there. As it relates to consumer enterprise where we mainly play with our connectivity solutions, I would say that's getting a more stable environment. Most of the inventory correction is over there. and we are growing the business there mostly because of a content uplift story right as Liam indicated Wi-Fi 7 a lot of good traction there that's a big step up in content compared to Wi-Fi 6 some of those other end markets there's still an inventory correction ongoing automotive industrial markets very similar to what our peers and competitors have seen in that market but again as Liam indicated we have strong design wind momentum there we have great opportunities in EVs with our power isolation or in the connected car with our connectivity solutions Wi-Fi 5g digital radios and so we are able to bug the trend there and see some stronger revenue growth opportunities.
spk09: Thank you. As a follow-up, I want to ask a question on gross margins and understand you're guiding up 50 basis points for the September quarter. I know that you've taken some cost reduction actions, depreciations coming down. You know, what would you say is the trajectory for gross margins as, you know, perhaps some revenue comes back and utilization comes up? You know, what's sort of the slope and the destination for the gross margins as those things occur?
spk01: Yes, Chris. So there as well, March was the bottom for us at 45%. You saw already 100 basis points improvements in the June quarter. And we just guided another 50 basis points improvement going into the September quarter. And we do expect further gross margins improvement in the December quarter. Obviously, then there is seasonality in our business, but when I look at fiscal 25 or 26 and beyond, we do expect further gross margins improvement. And it's basically a combination of multiple factors, right? We continue to execute on cost reductions into our factory. As the top line is growing, we are getting better utilization into our factories. We are bringing higher value products to the market for which we are getting paid. And we have a little bit of a tailwind from a mixed point of view as broad markets is growing at higher than above gross margins. So we think we are on the right track here. and we will see ongoing further gross margins improvement.
spk02: Thank you.
spk03: Thank you. And our next question coming from the line of Timothy Arkery with UBS. Your line is open.
spk08: Thanks a lot. Chris, can you give us a sense of how big the large customer was for June, and then in September it's ranged between mid fifties when Android was higher to the high sixties last year, any sense of how to think about how that's going to trend and what you're embedding in the guidance?
spk01: Yeah. So our largest customer in the June quarter was approximately 65% of total revenue. That was down sequentially, maybe a little bit more than normal seasonality. And we explained that at the last earnings call where we saw some buildup of inventory in March, April timeframe. And so we pushed the brakes in June. But looking ahead now into September, we think the largest customer will be slightly above 65% of total revenue. And it will be up on or about 20% sequentially as we execute and support our large customer in ramping up new products that they are bringing to market.
spk08: Thanks, Chris. And then can you give us a sense also of what December, I mean, December is kind of all over the map seasonally, but it's up in the range of 10% usually. Is that a reasonable bogey to think about for December?
spk01: Yeah, so we only guide one quarter at a time, and I would really stick with that. But, yeah, it's clear that we do expect further sequential growth going into the December quarter, but we will guide next quarter on that.
spk08: Okay, Chris, thank you.
spk03: Thank you. And our next question, coming from the lineup, Christopher Merlin with Susquehanna Yolanda Southman.
spk07: Hi, guys, thanks for the question. You referred to some AI smartphones, and I think we all got excited about some new AI announcements this quarter driving a refresh cycle. So I guess my first question is, How much of this kind of acceleration or, you know, pulling in the refresh cycle did you see or is in your September guidance? Did you see kind of the same excitement that we all kind of felt? Or do you think this is something really to play out December and onward as we move through time and new product launches?
spk10: Yeah, great question. I think this is the early stage of a very, very long ramp in mobile. There's no question that AI is going to make an impact. I really believe that, and I think most of the market does. But what comes with it is also a challenge. You have to have very, very difficult challenges to be able to manage the AI world. Fortunately with Skyworks, this is what we do all the time, and we're a deep technology company. We know how to handle the really challenging opportunities. We're dealing with higher levels of MIMO, more paths, uplink and downlink, bringing in carrier aggregation, better filtering. And you know that at Skyworks, really, really important to get those filters down and new frequency bands. So it's a very challenging ask to deliver. But fortunately at Skyworks, these are technologies that we understand. So we are looking forward to this. It's very early stages, but I believe and our team believes that we're going to have a very meaningful cycle in mobile led by these technology innovations.
spk07: Thank you very much for that. My next question is around Android. So you talked about a couple of cool Android phones, Google, Samsung Galaxy M, Oppo. Can you point to any marquee sockets, either new areas that you're playing or big, chunky sockets? And then just more generally, how would you describe the Android environment and kind of your outlook there and revenue contribution moving forward?
spk10: Yeah, that's great. I mean, we are certainly engaged in Android, and most specifically with Samsung and Google. There's some great products there. The Pixel phone is an amazing phone. There's other products as well. Great partnership with Google, actually. And the technology inside is very rich, very impactful. So we should see more and more of that from Skyworks, probably less of the low end in China, of course, but the higher end in Android has been really powerful, and I think there's a lot more we can do from there.
spk07: Thanks, Liam. Appreciate it.
spk03: Thank you. And our next question, coming from the line of, Craig Ellis with V-Riley Securities.
spk06: Yeah, thanks for taking the question. And Liam, nice to hear the enthusiasm about a smartphone refresh cycle in the middle of the 5G cycle. I wanted to follow up on that. So as you look at the opportunity for AI to drive more up and down link content, increased carrier aggregation, and some of the other technologies that the company specializes in. Can you talk about the content gain opportunities that might exist in Gen 2 and Gen 3 smartphones? Because I think from commentary a quarter ago, we may not be looking at so much in this year's version of your largest customer handset. But what could we look at in coming years from AI on the content gain side?
spk10: Yeah, I think this is going to be a long, long run here and a successful run in the industry if the technologies come about the way we see it. So we have some of this technology in place right now, and we're able to capitalize on that. But this is going to be, Chris, it's going to be a long-term cycle here, very meaningful, akin to the first 5G cycle in my expectation. But I think it's going to be much more powerful. The challenges are, You know, much more demanding, more challenging. Fortunately for Skyworks, we can do a lot of this stuff in house, very difficult, but we can do it in house and we can, we can craft and curate account by account to get it right. Cause we're not seeing one fits all here. This is going to be a customized platform when you get into AI and each customer has its own needs and specs. So it's early innings. Uh, the companies that are deeply involved are going to win. The customers that we pick are also going to be really important to us, but we're looking forward to it. I think it's going to be a significant move in the industry and certainly for Skyworks.
spk06: Got it. And then a two-part follow-up. The follow-up specifically to the implications for revenue is what does this mean for the company to get back to the gross margins that it was executing at a couple years ago in the 50% range and maybe even up to that 53% target and then switching gears. The company just continues to throw off tremendous cash. You talked about it in your comments. The dividend just raised again. You have very little debt. How are you thinking about what happens next with cash return? Is it a lot more buyback or are you thinking about strategic M&A? And if so, what type of cards might you be thinking about playing there? Thank you.
spk01: Yeah, so maybe first on the gross margins, I think I already answered that question, right? I think we're going to continue to see further gross margins improvement. Obviously, with accelerated revenue growth, we will have better utilization in the factories, and that will exponentially result in further gross margins improvements. That is very clear. As it relates to the financial output of this company, it's just outstanding. If you look at in the first nine months of the fiscal year, we generated $1.3 billion of cash. That's a 40% free cash flow margin. I think that is outstanding in the semiconductor business compared to many of our peers and competitors. In addition to that, we have a strong balance sheet. We have almost $1.3 billion of cash on the balance sheet and only $1 billion of debt, which is cheap debt with long maturities. So we have a very strong position here that allows us to, on one hand, continue to invest in our business, in our technology and product roadmaps, continue to invest in our factories and if and when needed and so currently the capital intensity of the business has come down a lot but if and when needed of course we can make those investments as well to maintain our leadership position and in addition to that there's not going to be any hesitation we are going to return all the excess cash flow back to the shareholders and we do that consistently through our dividend program and our share buyback program. On the dividend program, we just announced a 3% increase up to $0.70 per share. Right now, that's translating into a 2.4% dividend yield. And as you noticed, in the June quarter, we restarted the buyback program. And so there's not going to be any hesitation to that. In addition to that, we still have optionality for M&A. But you know us. We're not going to do anything stupid. We're going to remain disciplined on that. And if there are no deals, we will return the cash flow.
spk06: Thanks for all the help, guys.
spk01: Sure.
spk03: Thank you. And our next question coming from the lineup, Kevin Cassidy with Rosenblatt Securities. Your line is open.
spk11: Thanks for letting me ask a question. When you mention AI in the handsets, and I understand the improvement that you'll get in content, what about AI is moving out into all types of robotics and IoT type of products? Do you have accelerated opportunities in that market too?
spk10: Great question. Great question. The good news is the technologies that we have can absolutely work in those environments. We just haven't gotten there yet. So, you know, we're making those investments. Obviously we've got a great position in smartphones and the technologies that we work there, but to take that through an IOT cycle across multi-markets is going to be a real powerful opportunity for Skyworks. The good news is we know what the technology, how they work, where they need to be. It's just about putting it together and getting into the right markets, the right partners. But we really do believe this could be a very powerful cycle, independent of the smartphone, looking at the IoT opportunity. So look forward to it. It's a great question. And we'll hopefully update you more as we get more information. But we're very, very interested in making that happen. Thank you.
spk11: Okay, yeah, great. Thank you for answering the question. Just maybe as a hint, do you need more scalability to be able to service more customers?
spk10: Well, I mean, we have customers that are actually working with us and asking us how they can engage in AI and using IoT as a vector. And so we're working with companies like that that we know already, but there's a whole range of other opportunities and applications that we haven't yet addressed. So I think it's going to be a meaningful part of the strategy at Skyworks here as we move forward with a lot of runway that hasn't been covered.
spk11: Okay, great. Thank you.
spk03: Thank you. And our next question coming from the lineup, Quinn Bone from Needham & Company. Your line is open.
spk05: Hey, guys. This is Nick Doyle. I'm for Quinn. If your largest customer switches to an internal modem, can you talk about how that change, how that would impact Skyworks' content opportunity?
spk10: Yeah, I hear you. You know, we really can't go into specifics with that customer, but certainly we have a great relationship. We're a trusted partner. There's a lot of opportunities that we can pursue, but we just really can't get into any details here.
spk05: Okay. You mentioned that inventory remains elevated in the traditional data center and wireless infrastructure. Do you have a sense of how much inventory remains in days or dollars and what types of products have the most inventory left?
spk01: That's really hard to answer that question. I mean, it really depends from end market to end market. As I said before, I think in consumer enterprise, most of the inventory correction is over. Automotive, industrial, you've heard it from peers and competitors, there's definitely some excess inventory that's being flushed out. And then if you look more at the infrastructure, networking, data center, there is still some excess inventory, but the demand is definitely improving in those areas, and it will be a long recovery in those markets. Again, it really depends end market to end market. But again, when you look at our broad markets business, we're growing it sequentially for three quarters in a row, and we'll start growing it on a year-over-year basis. And so there's definitely some good traction for Skyworks.
spk08: Thank you.
spk03: Thank you. Our next question coming from the lineup. Thomas O'Malley with Barclays. Your line is open.
spk04: Hey, guys. Thanks for taking my question. Mine was just a broader industry dynamic on integration. A competitor at the recent analyst like kind of showed a slide with, you know, the mid high band socket, you know, integrating diversity receive over time and high end Android. Can you talk about are you seeing integration in some of the design wins that you're competing for today? And then could you just maybe speak to the fact, is that only going to appear in high-end markets? Do you see that across broad markets? Just where you're seeing the industry move to in terms of maybe silicon getting integrated into smaller dye space. Thank you.
spk10: As you know, we really can't get into details with our customers and our design wins, but we certainly have the best in class RF technology and the manufacturing scale to compete to win for sockets. And frankly, the tech specs are getting harder and harder every year. On top of that, our customers are relentless in terms of driving higher levels of performance. And in this environment, only the strong will survive. And Skyworks, of course, this is what we do. This is our bread and butter. RF technology continues to get more and more difficult, and that's the way we want it. And so we expect more opportunities and more engagement, especially with the top-tier customers as we go forward.
spk04: Helpful. And then just more broadly, when you talk about AI proliferating to the edge, I think people have generally a good idea of how they see that playing out. But when it comes to AI in the smartphone, do you think you could talk specifically as to where you see the content uplift? Is that just additional bands? Is that additional filtering? Can you just point to where you think in the near term AI you see additional content as it relates to AI in the smartphone.
spk10: Thank you. Yeah, just at the high level, think about transmit back and forth, right? Transmit and receive. The burden to be able to do that in an AI environment, the speeds, the latency, all of that, the filtering, the range, all of those issues become problems that need to be solved. And that's exactly what we want to do. And this is the stuff we do all the time. So we're going to take all the know-how our own IP, our technologists, our capital assets, our scale in our factories to curate solutions that will meet the demands of AI. So it's not going to be a one-fits-all kind of thing. It's going to be highly curated and customated.
spk03: Thank you. And ladies and gentlemen, that concludes today's question and answer session. I will now call back over to Mr. Griffin for any closing comments.
spk10: Thanks everybody for participating in today's call. We look forward to seeing you at upcoming investor conferences during the quarter. Thank you.
spk03: Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect.
Disclaimer