Onto Innovation Inc.

Good afternoon, everyone. Onto Innovation issued its 2021 fourth quarter and full year financial results this afternoon, shortly after the market closed. If you have not received a copy of the release, please refer to the company's website where a copy of the release is posted. Joining us on the call today are Michael Plosinski, Chief Executive Officer, and Steven Ross, Chief Financial Officer. As always, I need to remind you of the safe harbor regulations. Any matters today that are not historical facts, especially comments regarding the company's future plans, products, objectives, Forecast and expected performance consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These estimates, whether expressed or implied, are based currently on information and the company's best judgment at this time. Within these is a wide range of assumptions that the company believes to be reasonable. However, it must be recognized that these statements are subject to a range of uncertainties that can cause actual results to vary materially. Thus, the company cautions that these statements are no guarantees of future performance. Risk factors that may impact Onto Innovation's results are currently described in Onto Innovation's Form 10-K report for the year ended December 2020, as well as other quarterly filings with the SEC. Onto Innovation does not update forward-looking statements and expressly disclaims any obligation to do so. Today's discussion of our financial results will be presented on a non-GAAP financial basis unless otherwise specified. As a reminder, a detailed reconciliation between GAAP and non-GAAP results can be found in today's earnings release. I will now go ahead and turn the call over to Mike Blazinski.

Mike? Thanks, Mike. Good afternoon and a Happy New Year to everyone. We're pleased to start the year off by reporting fourth quarter revenue exceeded the high end of our guidance, growing 12% over the third quarter and resulting in our equipment business growing nearly 50% for the year. This was our fifth straight quarter of revenue growth, and it was our eighth consecutive quarter of increasing operating margins. The ON2 team has done a great job unlocking operational synergies, even in this environment of rapid expansion and disruptions from the pandemic and global supply chains. Despite these ongoing challenges, we expect to maintain our growth momentum into the new year with projections for first quarter revenue up slightly at the low end and up approximately 7% at the high end of our guidance range. But before looking to 2022, let's begin with a few highlights from the fourth quarter, starting with the advanced packaging and specialty device markets, which grew by a very healthy 21% over the prior quarter. Revenue from compound semiconductor and RF manufacturers increased by 140% in the quarter and represented roughly 40% of total revenue from our specialty and packaging customers in the quarter. Our powerful combination of process control technology and process analysis software is delivering higher levels of productivity to our customers and contributed to this strong demand. As an example, a recent customer leveraged our integrated solutions to increase factory output by an estimated 10%. We see similar opportunities to increase productivity for our advanced packaging customers, especially in heterogeneous packaging. For example, by integrating our... In the fourth quarter, we delivered our third StepFast solution to a leading supplier of panel-level fan-out technology used for packaging high-performance 5G devices. We expect to uncover additional opportunities to provide productivity solutions to our JetStep X500 customers as we begin to deliver against our 100 million of backlog. In parallel to heterogeneous packaging, we see a universal acceleration of interconnect strengths, creating demand for more precise metrology and higher resolution inspection systems. The Dragonfly platform meets these new industry demands by providing accurate 3D metrology, clarified reliability, and sub-micron inspection resolution in a single system. In addition, We leverage our software to automate the analysis of these data streams to provide not just critical data, but critical decisions. As a result, revenue for our Dragonfly platform increased 67% over the prior year. Turning to our Advanced Nodes customers, revenue from this market increased 6%, resulting in another quarterly record. Our Atlas platform is proving to be a powerful base for optical metrology. It can be configured to measure everything from the most advanced 3D transistor structures down to common planar films. We see increasing capital intensity for the Atlas platform, especially in advanced logic, where we provide measurement sensitivity required for complex transistor structures such as advanced FinFET and gate-all-around at speeds orders of magnitude faster than X-ray systems. In fact, 60% of our advanced logic revenue in the quarter was to support metrology for the 3 nanometer node. Metrology for DRAM memory represented the strongest growth in the quarter with revenue from several large capacity expansions in Asia. The combination of our Atlas platform and AI diffract software delivers improvements in sensitivity and modeling times by, again, aggregating data from multiple sources. We've shown this hybrid metrology solution provides a five-fold increase in sensitivity for our integrated metrology platform, resulting in a 74% increase in integrated metrology revenue for the advanced nodes in 2021. With several memory customers forecasting additional expansions in 2022, we're optimistic that this growth will continue into the new year. Before we discuss our outlook for 2022, I will turn the call over to Steve to review our financial highlights for the quarter. Steve?

Thanks, Mike, and good afternoon, everyone. I will start by providing some details on our Q4 results and then follow with our guidance for the first quarter of 2022. As Mike mentioned, we had another record revenue quarter. In fact, we had several company financial records this quarter. Our fourth quarter revenue was $226 million above the high end of guidance, up 12% over the last quarter, and up 45% over the same period last year. The revenue growth was broad-based, with metrology, inspection, and software all experiencing record revenue in the quarter. Breaking down the revenue by market, 48% of the sales were in our specialty device and advanced packaging markets, which continued to strength from the previous quarter and increased 21%. That increase was driven by RF, MEMS, and power customers, as well as growth from the OSETs. The advanced node markets represented 33% of sales, with strong memory sales being partially offset by weaker logic foundry sales in the quarter. Finally, software and services increased slightly and represented 19% of revenue. We continued to maintain strong gross margins at 55% in both the third and fourth quarters. Higher revenues, including stronger software sales, were offset by supply chain and logistic cost increases in the quarter. We continue to work on product margin improvement programs and supply sourcing programs to mitigate the impact from the supply chain on our gross margin. The fourth quarter operating expenses was $54.9 million, an increase of $3.3 million from $51.6 million in the third quarter. The increase is primarily due to onboarding of new headcount to support the growth we're experiencing and variable compensation plan adjustments. We continued our quarterly operating margin improvements each quarter since the merger, with a record fourth quarter operating margin of 31% and well within our published long-term operating model on a quarterly run rate basis. We also published a new long-term operating model just after the quarter closed, with revenue targets of $1 billion to $1.4 billion, operating margins of 31% to 36% in those revenue ranges, and earnings power north of $8 per share at the high end of that model. Net income increased in the fourth quarter and was $61.2 million, or $1.23 per share, and above the high end of guidance. In the third quarter, we reported net income of $48.7 million, or $0.98 per share. Moving to the balance sheet, we ended the quarter with a cash position of $511 million, up $50 million from Q3. Our free cash flow for Q4 was $51 million, or 23% of revenue, and for the year we generated $163 million of free cash flow. Accounts receivable decreased to $177 million in the quarter, and our day sales outstanding declined to 72 days. Our inventory increased to $243 million in the quarter on higher planned sales for 2022 and continued acceleration of inventory deliveries as a hedge against supply chain disruptions. Now turning to the first quarter guidance. We currently expect revenue to increase from the fourth quarter and be in the range of $226 to $240 million. As noted last quarter, we currently have several of our new lithography systems which have shipped or are shipping in Q1, with the revenue being deferred awaiting acceptance from the customer. It is currently unclear whether those systems will be accepted by the end of the quarter and recognized as revenue. The high end of our revenue guidance anticipates inclusion of those lithography systems. Earnings per share in the revenue range are expected to be between $1.13 and $1.20 per diluted share, and are partially affected by a reset of our effective tax rate for 2022. We also expect our gross margins to be between 53.5 and 55.5%. As we previously discussed, our new lithography systems will put some pressure on our gross margins during 2022 due to manufacturing inefficiencies as we ramp our production throughout the year. For operating expenses, we are aggressively hiring to support our growth, and typically have higher operating expenses in the first quarter as payroll taxes and other compensation plans reset. Therefore, we're currently anticipating our operating expenses will increase in the first quarter and be in the range of $55.5 to $57.5 million. With that, I'll turn the call back to Mike for additional insight into Q1 and the remainder of 2022. Mike? Thank you, Steve.

Looking broadly at the industry, we see a growing number of end markets being enabled by advances in semiconductor technology for wireless communication, high-performance compute, power devices, and sensing. These new end markets are simultaneously increasing the need for additional chip capacity as well as advances in manufacturing process technology to make future devices faster, smaller, and greener. At Onto Innovation, we're collaborating closely with leaders across the semiconductor value chain to deliver the manufacturing solutions needed to accelerate their roadmaps and fulfill expanding end market demand. These partnerships strengthen our ability to serve core markets while also opening the door to new markets. We estimate an increase of $650 million in new addressable markets spanning substrate, device, and packaging. This should provide additional tailwinds independent of projected industry growth over the next several years. Zooming into the first quarter guidance Steve just outlined, we project revenue from memory customers in both DRAM and NAND will increase by over 50% in the quarter. As we mentioned earlier, our integrated suite of metrology is providing important value to our customers. As an example, we're contributing to yield improvement at one of our largest 3D NAND customers by aggregating Atlas OCD with integrated and films metrology data. This aggregation is providing a more complete view of deposition, etch, and CMP process steps, again, at speeds suited for high-volume production. For the year, we see NAND continuing to be strong with capacity expansions for 128 to 176-layer NAND devices. We also see technology ramps to 192 and above increasing during the year. We expect similar strong demand from several DRAM customer expansions, which we also believe will remain at elevated levels through the year. The strength in DRAM memory this year is being driven by the positive impact the work from home trend is having on cloud and server markets, as well as the growing number of memory-hungry AI applications. Simultaneously, continued 5G handset and device adoption creates a 2x increase in NAND demand over prior generations, and the increase in a mobile workforce is pushing up demand for reliable solid-state drives. Within our specialty device and advanced packaging markets, we expect to see demand for our advanced packaging solutions grow by over 40%, primarily from the top IDMs. In addition, we see solid traction in the advanced image sensor market with revenue in the first quarter from three leading customers and six manufacturing sites. We do see a reduction in spending in the first quarter from advanced logic and compound semiconductor manufacturers after each contributed so strongly last quarter. Our positive outlook for the first quarter reflects our best understanding of the risks presented by global supply chain shortages and COVID-19. So far, the ON2 team has been managing admirably through the unpredictable nature of these challenges. However, we are certainly not immune to these challenges, and so they remain an ongoing risk. We expect this uncertainty, especially in the supply chain, will continue to be a factor through at least the first half of 2022 and possibly the entire year. However, if we look more broadly at the year, We see demand across several end markets continues to be robust. In response, industry estimates for semiconductor equipment spending continue to increase across all of the markets we serve. As a result, it appears 2022 will be another double-digit growth year for the industry. With the solid demand we see today for our products in our core markets and from new served markets, we feel we are well-positioned to outperform industry growth. With that, we'll now open the call for your questions. Keith?

Thanks. Ladies and gentlemen, if you'd like to ask a question, you may do so by pressing star 1 on your telephone keypad. Please make sure the mute function on your phone is turned off so the signal can be read by our equipment.

Star 1 for questions. We'll pause a moment to assemble the phone queue. We'll take our first question from Craig Ellis with B. Reilly Securities.

Please go ahead.

Yeah, thanks for taking the question, and congratulations on the very strong performance in the quarter and the outlook, guys. I wanted to start just understanding a little bit more about Panalitho, really a two-part question. I believe there's $100 million in backlog there, and if you could provide any color on the pacing of how that backlog might shift through 22 and 23. It would be helpful. And then, Steve, with the commentary on gross margin in the near term being impacted by rep rec of that product and in a 53 to 55% range, the question is, is that impact something that's in the initial part of the manufacturing ramp, or is that something that would persist through the period where we have the 100 million in backlog?

All right. So, Greg, I'll get to that one first. Yeah, so I think we're going to see the manufacturing impact throughout the year. I mean, we're not shipping a lot of systems. You know, we can only ship a couple systems each quarter. And so, you know, that $100 million, as we said, goes through 2022 and through 2023. You know, I would say, you know, maybe a little less than half of it going this year and, you know, then going into 2023. And I think some of it might even be driven into 2024 now. The margins, as we ramp, I think it's going to be kind of a full-year event in 2022. I mean, obviously, some efficiencies as they get better at building the systems, as well as, you know, that's the manufacturing side of it, as well as we continue to obviously work on cost downs from the engineering side and quantity buys and things like that as we grow. So I think it's going to be, you know, for the pretty good impact throughout 2022, and then you'll see improving in 2023, the impact of the litho business on our business.

Got it. And then combining that with a longer-term question related to the target model, and I'm not sure if this is better for you or for Mike, but with the target models, $1 billion, $1.2 billion, and $1.4 billion points, were those anchored either in points in time or specific levels of WFE? How should we think about the way The executive team and the broader ON2 team is looking at some of the underlying drivers to attaining those different levels and over which time period.

So, Craig, what we look at is pretty conservative estimates for WFE. So we look at industry growth and we consider growth as well as potential contractions. But the bulk of the model is based on the tailwinds that we can create through SAM expansion, through new product introductions, through some of the solutions that we have either recently introduced or in the pipeline where we know where the customer's demand drivers are and what their needs will be. So our model is really a combination of the market, but mostly what we're trying to drive and have a little bit more control of, if that makes sense. And it's not based on time. If you want to look at a timing, you know, we don't, we don't, you know, we don't have a set time, but you could guess that, you know, based on the last models and we achieved that in this relatively quickly in this industry, you know, kind of a, five-year time frame would be a reasonable one plus or minus on either side. More to the plus.

Yeah, well, certainly the annualized level of the first quarter's earnings guide is making very robust progress towards the $1 billion model. So good for you. But clearly there are some, you know, gives and takes with gross margin based on some of the things that Steve said about Panalito. Okay. Okay. Very helpful, guys. I appreciate it. And congratulations again. I'll hop back in the queue. Thank you. Thanks, Craig.

We'll take our next question from Quinn Bolton with Needham. Please go ahead.

Hey, guys. Let me echo my congratulations on the results and outlook. I guess, you know, in 21, you saw a number of product lines growing at, you know, rates well above the WFE industry. And it looks like you guys expect to do that again in 2022. Wondering if you might, you know, rank order for us or if not rank order, just give us your thoughts on which segments of the business do you think will be the fastest growing in 2022? I mean, it sounds like you've got good tailwinds in litho. You've got good tailwinds in advanced packaging, but also in metrology. So, you know, kind of hitting on a lot of cylinders. So how would you rank the growth drivers in 2022?

So, Quinn, from a percentage basis, obviously litho would be the top because it's starting from such a small base. So, you know, I'm going to put that to the side. From the core products, the metrology, the advanced node metrology products, we think are going to have the strongest demand in support of the very strong demand we're seeing in the markets. and the share game opportunities we see with some of the new products and the traction we see with the solution approach we're taking with the hybrid metrology leveraging the AI diffract software. Not too far behind that, we see real strong demand for Dragonfly in the advanced packaging, primarily to support some of the initiatives that I mentioned on the call for much, much smaller companies interconnects, more dense interconnects, bumps starting to approach 500 million per wafer, and the need for not just inspection but metrology and also that reliability path that we can do with the clarifying technology that we have. So there's several drivers on the Dragonfly platform, including the CIS, which we've seen some really nice traction in the last two quarters. So Dragonfly would probably be the and advanced packaging would probably be the next. Then third would be the compound semi, and that's going to bring in our overlay metrology as well as our inspection and software. And that's a much smaller market, but from a growth perspective, the traction has been pretty robust in the last, I'd say, four quarters, maybe even going back six quarters, and we expect that to continue into 2022.

Great. And then I wanted to follow up on Craig's question about gross margins. Steve, would you expect, I mean, obviously that litho pressure sounds like it's going to be with you for most of 2022. So would you sort of expect gross margins to trend relatively flat during the year? Or do you think, you know, growth in other product lines, you know, cost out, hopefully lower COVID related and logistics costs through the year that you know, Q1 might be a trough in gross margin with, you know, modest increases, you know, in the following quarters?

Yeah, it depends. So, you know, obviously Q1, we have several list of tools. If they all, if they get accepted, that's, you know, probably, that's obviously what's kind of the low end of my margin guidance there, obviously without those list of tools. We're up north of 55, right? I mean, on the high end of my guidance, it's kind of the range bounds we're at. So it's going to depend on how the litho tools layer in each quarter. But, you know, I would say, you know, we've been at around 55%. So is there room to be anywhere 55.5% is probably the top end if we have level litho throughout the year. You know, somewhere in that, I think we're going to be in that 53.5%, 55.5% probably all year range. If the litho is evenly spread. Got it.

And the concern will be, obviously, is if it gets lumpy, it'll have more of an effect. I'll hop back in the queue. Yep. No, thank you. Okay.

And we'll take our next question from Brian Chin with Stiefel. Please go ahead.

Hi there. Good afternoon. Congratulations on the nice results and execution of the quarter, and thanks for letting us ask a few questions. Maybe just fine-tuning maybe the question or two that was just asked. Mike and Steve, once you get beyond the revenue recognition acceptances, and maybe that happens in Q1 for a customer, too, maybe it happens in Q2, but from there out, it should be pretty much you're revenue against sort of your linear shipments. Is that a fair way to place that dynamic?

Yeah, that's for sure.

Okay, great. And then, you know, again, looping back on the substrate opportunity, it sounds like there is some room over the next, say, 12 to 18 months to drive litho margins up. But are you more focused on wrapping higher margin Firefly inspection and software around the litho tools you're placing at customers? Is that really the bigger focus? And that will obviously drive a good margin point for that sort of blend.

I wouldn't say it's one focus is above the other. Both are other focus. So we see opportunities for both. We're aggressively pursuing both areas. And we have the you know, the organization to do more than one thing. So nobody gets a free pass on that one.

Okay.

Fair enough. And maybe kind of a bit of a technology question, but hybrid bonding, it certainly enables significant interconnect density. And I realize we're still a ways out from broader industry adoption, but given that systems are hitting your backlog now, vis-a-vis your press release, Can you describe the impact hybrid bonding will have on inspection intensity in the years ahead?

Yeah, I think that's going to drive a significant shift in some of the metrology and inspection requirements. When you're talking about bonding wafers and expensive wafers together, just one interconnect or let's say coplanarity across these interconnects and And when you bring them together and they don't match or they don't mesh tightly enough to make a good bond, you're destroying not just one chip, but multiple chips. And so not just the coplanarity, but also the surface roughness and the surface shape of these interconnects is going to be critical. We're in the process of developing technology now that will be able to address some of these future challenges as hybrid bonding moves from what we're seeing in CMOS image sensors, which are fairly larger interconnects, advanced but larger compared to what we expect to see in advanced packaging for, you know, logic and other more advanced compute devices.

Okay, great. Thank you.

We'll take our next question from Mark Miller with the Benchmark Company. Please go ahead.

Let me add my congratulations on another very strong quarter. I'm just wondering, what type of pressures are you seeing from your component suppliers in terms of pricing, and how are you handling that?

Well, we've started, I think I mentioned in my discussions about the fourth quarter margins, we are seeing some price increases being passed through. I think the big thing for us is we obviously, for critical components, we we lay out a relatively long lead purchase order. So we've seen a little bit of that so far. We've been able to, you know, obviously higher revenues have been able to offset that. But I do think that's going to continue to be a challenge for everybody for all of 2022 for sure.

Are you starting – there's a number of new fabs. I think there's at least five new fabs that are ramping next year. Are you starting to see any orders, or do you expect to see them late in the year or early next year?

For sure, we're starting to continue to see better visibility through our backlog, and I don't think we're taking significant amount of orders for 2023, but we are taking some, and we are seeing customers approaching us and starting to understand the slotting plans and wanting to reserve slots in 2023. For sure, visibility is improving, but I think right now the focus is really on making sure we meet all the demand that we see right now in 2022. Thank you.

We'll take our next question from David Dooley with Steelhead Securities. Please go ahead.

Yeah, thanks for taking my questions. I had a couple. I guess in reference to the $100 million lithography backlog, I think you've mentioned, Steve, that just under half of it might ship this year with a balance in 2023 and 2024. I'm assuming that's just the lithography systems. Could you help me understand, since you're kind of packaging these with inspection or metrology and software, what the total opportunity might be for that $100 million? Is the other tools adding another $100 million to that opportunity, or is it lesser? Maybe help me understand how the the bundling of things impacts the $100 million of lithography backlog.

Yeah, that's a great question, David. And so I'll maybe add some color or clarity. We've proven use cases for panel-level fan-out. So panel-level fan-out applications, we've developed a very nice integrated solution, as I described, combining the inspection, lithography, and software together to solve certain inherent process issues with panel-level fan-out. The X500 is going after a different panel market, the substrate market, and the challenges are going to be different. So the solution doesn't directly apply, although we think several pieces of it will. But what we said in the commentary is as we begin to install these systems and understand more deeply the process and challenges, we'll have a better understanding of what other components we can bring to bear from the portfolio of technologies we have in order to provide increased productivity and yield for these customers. And for sure, that's a big need for our X500 customers. Yields are not, you know, They're certainly not at 90%. They're well, well below that, and they're feeling tremendous pressure to ramp and increase production capacity.

So can you characterize as $100 million how much is for the fan-out versus, I guess, the substrate market?

It's nearly all X500, so it's nearly all for the substrate market. Okay. Okay.

Okay. And then you mentioned in your prepared remarks about how you've worked hard to get into the power device markets. And I was wondering if you could just help us understand how, as far as total revenue goes, how big is your exposure to the power markets or specifically maybe the silicon carbide market? And then which product lines are the biggest drivers of your revenue and exposure to that sector?

Thank you.

So for power, as far as exposure goes, I think we have pretty broad exposure into the customer's manufacturing, you know, GAN, silicon carbide, et cetera. They're obviously much smaller than our other customers, but with pretty high projections for growth. Our product lines that are serving those power customers, the two primary ones would be our Dragonfly inspection, as well as our IVS or iVision overlay metrology systems. And then we bring together the software, which several power customers have also adopted. So overall, from a company standpoint, power market is you know, a little bit smaller and, you know, it's in the specialty devices and AP, but it is, you know, projected to be pretty decent growth on a percentage basis this year, 2022. And, you know, we do have a compelling combination of technologies we think will give us an, you know, a strong opportunity to gain share in that market.

Okay, great. Final one for me is, you know, I think you mentioned, you thought the overall WFE market would grow double digits and that I think you also mentioned that you would outperform that. So the suggestion is that whatever WFE is, that your revenue should grow a bit faster. I guess I'm trying to figure out, you know, above 10% is kind of a big range. I'm wondering what you think the WFE market will grow in 2022. Well,

We've seen estimates vary a lot, and we've seen estimates change since the last call till now. So at that point, it was 8% to 12% range. Now we've seen estimates 15%, even as high as 17%, 18%. So somewhere in that range is where somebody's going to be right in their estimates, and we still feel confident we would outperform in that range.

Okay, so just to kind of, I don't want to say pin you down, but just to understand what you just said, we've increased the range of WFE growth to, let's say, roughly 15%, and you think you can outperform that rate if that's where the market grows?

Correct. Thank you so much. You're welcome.

As a reminder, star one for questions or comments, please, star one. We'll take our next question from Hans Chung with DA Davidson. Please go ahead.

Hi, thank you for taking my question. Congratulations on strong results and outlook. I have a couple of questions. First, I want to follow up on the geography-related topic. So, the 100 million, the backlog is, I think, for the first customer, right? And then, obviously, you have already qualified for third customer. I guess my question is, like, what kind of revenue opportunity, let's say, for the second and third customer going forward, would that be – could that be benchmarked to, like, the $100 million type of revenue opportunity going forward?

That's a good question. So within that $100 million are several customers, actually. So it's not all one customer. And we're really being constrained by our ability to ramp production and to ramp production capacity in a timely manner to meet the needs of the market. So we have, I'd say, you know, three to four customers in that. Oh, yeah, maybe up to five customers in that bucket, in that 100 million. And they all have varying levels of, you know,

of systems assigned to them.

Okay, so basically it's sort of like 50 million run rate type of business going forward, right?

It depends. We've seen pretty aggressive forecasts going out several years from now that, you know, depending on how well the X500 does and what share we get of the overall business Could be above that. I would probably be disappointed if it was a 50 million run rate.

Got it, got it. Thank you. And so next question is, can you provide some color about the backlog existing this 2021 and also lead time right now versus a quarter ago?

specific to the lithography or in general?

Overall. From a lead time perspective, it varies by product line, of course. We have a wide range of product lines and with supply chains and demand the way it is where obviously lead times are pushing out. We've been trying to get customers to you know, issue purchase orders early enough that we can actually ensure we have the inventory and the builds and the slots on hand to meet their demand. So from a rough range, I'd say four to six months. And for Litho, it's up over, well, at this point, it's almost two years.

We're now booking for 2024. Thank you.

At this time, there's no further questions in the queue. I would like to turn the conference back to Mike Schaefer for any additional closing remarks.

Great. Thank you, everyone, for joining us today. We know it's a busy time for earnings, and we really appreciate your time today. I'm sure we'll be catching up with some of you at the Morgan Stanley Conference on March 9th, and we'll be looking forward to catching up to many others throughout the quarter. With that, I'll turn the call back over to Keith to wrap it up.

Thank you. Ladies and gentlemen, this does conclude today's conference. We appreciate your participation. You may now disconnect.