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spk_0: the day and think if within a mile walk into the personality of they call at this time or participants are endless normally mode after the stick his presentation there will be a question answer session last a question on a session you any starlet money a telephone please be advised the taste offices the require it if you're quite a further assistance please restart zero oh now i can accomplish i would you speak at a day carolyn corner
spk_1: listen if you go ahead
spk_2: good thank you operator and welcome everyone joining me on today's call or john west to the got your pocket there and aren't hurt you gonna chief financial officer with call include for looking statements including statements regarding the market in which we operate including potential market size of tend to next vacation for our products services and technology the timing paced and amount of the orders from customers market adoption of a new product and personnel so that expect the financial performance expenses and position on the market including at our expectations revenues and net loss or the third quarter and by you have twenty twenty one the same as the subject risks and uncertainties that could cause actual results the materially differ materially from our current expectations were encourage you to review our most recent violence with as he say particularly the respect as described in a tent you for the second quarter of fiscal year twenty twenty one that was filed in august for twenty twenty one and or ten cape of it's clear twenty twenty four looking statements you provide during this call and putting expectations for future performance or based on are reasonable belief and expectations of up today or smells of undertake no obligation to update these statements except as required by applicable law please note that in we've prepared remarks personnel management will refer to the company them quality good business this represents a category customers reflect all by a farmer and all other customers excluding the be a mbp most of whom use personal services for applications mentality and when referring to population pigment thing we are referring to the a mbp or other potential customers with this month i personally nothing a movie a on repeat tough quarter and strong key three orders know policy business is available on a website www dot personnel that calm under the of us are section and includes additional details about our financial estimates are worth it also has earliest as if he finds a recording of today's call will be available our web i played ten am pacific time today now like a child turn the cult over the john birch comments and refund business highlights
spk_3: thank you charles over the weekend personnel as issued a press release announcing the receipt of a test border from the be a mvp in the amount of approximately ten million dollars and record orders over twenty five billion dollars in our ontology business so far and cute three together these orders allow us to reconfirm or total revenue outlook for twenty twenty one with oncology revenue growth now projected to be at least fifty percent of up twenty twenty although the amount of the be a border is less than improve over years we believe that the be a vp remains committed to the program which has been underway since at least two thousand and eleven since early twenty twenty the be a has cared for a tidal wave of covered cases in a major contributor to covered vaccine clinical trials vaccinated millions of veterans and last research initiatives related a coven we believe that this led them to differ and expected twenty twenty one six
spk_4: sing or er p and extend our work for them with the task order which has received
spk_3: we also understand that the program is actively working to broaden access to the data they already have and piloting new sample collection methods and types of sample analysis the be a vp has good support in congress and it's draft budget includes funding for the coming government's fiscal year we expect to be a mvp to commits and are a few process for additional sample analysis in the summer of twenty twenty two l work with the be a a bp represents the largest population sequence ever with or the united states it targeted roland of two million veterans at the prepare them again the rate of about a hundred thousand dollars for year this call could take another ten to twelve years
spk_4: since two thousand and twelve or snails has been the sole provider of whole genome sequencing to the a mbp and sedate we have completed over a hundred and forty thousand
spk_3: and our conversations with the administration they have underscored their commitment to the program
spk_4: now i'll discuss some highlights more anthology business as of today we have received more than twenty five million dollars of numerous from customers in the third quarter this is a record level is higher than we received in the whole first half of this year
spk_3: double the level of few three twenty twenty and triple the revenue level he recognized and que to of twenty twenty one
spk_4: some of these new orders are prospective which means that we will receive process and recognize revenue from samples gradually as patients are enrolled him and progress an ongoing pharmaceutical clinical trials
spk_3: thus perspective orders are expected to provide revenue over several years
spk_4: some other orders or for retrospective projects based on patient samples from clinical trials which have already been completed
spk_3: those orders may be converted to revenue and less than two years and had that a large portion of orders we received in the past it is great the pharmaceutical companies are increasingly designing our platform into their clinical trials right from the beginning but we will be conservative projecting the rep resulting revenue given the timing of those clinical trials stealth we now expect that are on college of business will become the larger portion of our total revenue and twenty twenty two and we target an annual growth rate of approximately fifty percent over our twenty twenty one revenue estimates of thirty four to thirty five million dollars
spk_4: and college he represents purcell says largest market up the terrorists and were poised to execute and capitalize on it they remain focus on our in college of business growth drivers are base of next customers has brother substantially over the last year with over fifty different customers including the majority of the top ten oncology focused pharma companies
spk_3: as we deliver for customers and lost new products or whole team is working hard to expand our customer relationships we remain on track to expand our liquid biopsy product line with the launch of next personal are minimal residual disease or mrt offering later this year as mentioned on our last earnings call were working towards providing a clinical offering and twenty twenty two we will also work towards reimbursement and depending upon our success target beginning to recognize some diagnostic test revenue in twenty twenty two
spk_4: i'm very proud of what we have a publisher per se and i'm excited about what lies ahead
spk_3: customer interest and adoption of next has been excellent and are pipeline of compelling their products as rich we have the capital required to invest in our growth initiatives including launching new products expanding our clinic on regulatory capabilities writing is broadening our operations geographically and building capacity to suffer
spk_5: the or revenue growth
spk_3: now i will turn the call back over to the operator to begin the queue at a session
spk_0: thank you as or mind the question you when you depressed star when he a telephone to withdraw your question press the pound key use them battle with him how to kill any roster i first question of on with morgan stanley your line is open
spk_6: hey guys the morning and and comrade done that what yeah john i'm just just one quick question for you on on the passcode the first i'm is it possible that you may receive a boost out task or days before the current one runs out again or is this it and the next up here is going to be that the for i have be process our next year
spk_4: i would say we don't actually know to has us i think the the process for the the a is unclear because we're in a procurement time period were not able to actually talk with the v a that some of these details of i think will know more in the coming weeks here certainly by the third quarter conference call the will have i expect the maybe other have more more detail on that at this point i'd say it's not our sake their to as the be i often as lot of flexibility about what they do
spk_6: gotta enough arm and then with the emergence as off of downtime and the possibility of other variants running around do anticipate that have a lower arm translation of of that order into revenue you're given the kittens of you guys receiving sample from the mb beach and it i the you can proactively do to romney get that
spk_4: yeah high tail so i would say that the m the a when they've had been able to as for that exactly which samples they're going to send to has often been able to send them i'm quite quickly
spk_3: and it's our understanding from some conversations that most of the samples that are uncovered by this task order may already be decided on sept and that sure that they'll be a big delay we have not heard from them specifically when to expect the samples on this but i'm guessing given that they set up am
spk_4: an execution period of time on this task or to that's only six months i'm guessing they expect us and those samples pretty quickly here fortunately the at the rise of the delta brain has not slowed down our production at the company so i want the samples right we certainly expect to be able to sequence them the way we have been and keep up that pace
spk_6: got up and then john i i met i know you mentioned you don't want to comment just yet on on on twenty two but damn as we think about that by obama revenue be that you mention the in college he ordered and the fifty percent growth you're seeing the here as well as we look at twenty two do you expect that to be essentially a floor that could be uptight big the question that we're going to get a potentially after the first orders over could there be an hour at the plane in in mvp there's no task order and yeah the hadn't been finalized and and could there be any of that you're either reality the and called euros or perhaps a puppy program at that well
spk_3: adequacy a lot of upside potential on both sides of the business to house and the and you know the rate at which we've seen orders and the third were in are incorrigible us has been fantastic and it's been across the board is a pretty wide group of pharmaceutical companies that have been ramping up so
spk_4: we have that kind of thing continuing into next year we could have ramping revenue as we go through the air we haven't set guidance for the year he added the will literally were still in our are you know annual budget and process and and the and absorbing some of the inputs here but i think we're pretty optimistic about the oncology business continuing to grow and that would i would expect that to be something where we had expected to continue
spk_3: you to grow as we go through and next year
spk_6: gotta it a full tank guided congrats on the progress of the mvp
spk_7: thank you for you
spk_0: and expressing have from dared to bond with think america yellen open
spk_8: hi my name is dawn on my again the like i wanted you about the by my mom palin how much of the by up on the van
spk_3: my answer to this know whole more than human genome at the cannes film festival them some that like my you need them had been know that sunday
spk_4: so it's here and you know or next to me know id is a a transcript home and at some so i think it's a the overlapping with that in in there and college of business or next platform which is at some and transcript i'm
spk_9: is the largest single product category we have and there are still a few customers that are using our earlier platform than have a transitioned over to next yep that we see increasingly that the farmers been converting over to our our next platform
spk_10: that's i think that apollo
spk_0: and with great thank you
spk_11: and at flushing have from deaths and go with cowan yellen is open ah my a good morning time at that i get my to day at a few odd numbers question so a starting on on mbp i believe you sixteen point eight million dollars in on propelled orders at the end of you to on at the time of the last update you expected that to be holy on a belt out the first month of you for so in october
spk_4: do you expect that that ten million dollars on
spk_11: you know via the additional order that you disclosed over the weekend to be tell by year end so that the first question and and if so would you say it's prudent at this point given the ambiguity you on referenced in response to pay off his question on getting think it's prudent at this point the model nominal mbp revenue
spk_4: like twenty twenty two had like a i think that day and the pace of era mvp revenue in the fourth quarter will depend a little bit on am the pace at which we receive samples on the oncology side of the the business the near the orders there have been so strong in that's been ramping up quite a bit in which generally balance capacity between the two
spk_12: parts of the of the business and so i think depending on when samples come in from the be a and but also when samples come in from pharma because with there's the rate of orders that we've seen in other could be and significant increase in our farmer revenue in the fourth quarter so i think they have to see you know how it how we end up
spk_4: balancing that that out
spk_3: i think it wouldn't be surprising if there wasn't m
spk_4: some of the mbp revenue in fact i think it's almost impossible that there wouldn't be some of the mvp revenue from this task order carrying over to next year it's hard to say exactly how much that would be had an affair and was to comment on that at all but i think it's given the given the the strengthen the farm aside the that the mvp maps
spk_13: done little bit more slowly
spk_11: yeah thanks to the question dog a great question so in terms of another way you can look at it or for your guide and eighty five million dollars has been included you know the oncology call which is thirty four to thirty five name which implies the the a and b p would be close to fifty million or so you can i have to go look at the back logic recreates we sixty point eight million dollars exiting cute too
spk_13: i'm are cute three guide for oncology now is the point three day pointing my and zoe point six or so at the midpoint ah there's another thirteen and a half fish for the a and b p c there's a few million that we're going to know pushover and backlog in their the first month a coupon and then depending upon sam apple flow from this ten million dollar order know will dictate how much more we can doing que for so there's the possibility a small number that backlog blows in the queue one of twenty two and a john mention we don't really know exactly what the be a mbps gonna do with additional orders or and been like night up through the march period where this order performance period goes through so the possibility that we do receive more business for the the a mbp going into twenty two and then we have the rfp process mid summer and so yeah i think you're you're in your question about should you normally and model with the a and b b i think that's probably prudent fair at this
spk_11: point time and them on the next call whoa whoa we have more color that we can provide about some of these numbers
spk_4: fuck up super help out my building offered that the twenty five million dollars in oncology orders i'm it's an impressive number of that said if you only bumped up i'm your expectations for bio pharma revenue for the year i think by it on million or so
spk_3: i'm sandra from wondering if the expectation that the orders that came in the quarter it up for the most part i'm will get for filled ah in in twenty twenty two years that the right way to think about it
spk_4: in so getting them to drag radials it generally does it period of time where am from when orders come in from farmer before the samples right from them and so forth that's that years old for that debate dahlia six months for that the start and and certainly on the perspective on this yeah we're talking that enrolling in clinical trials it can be extended period of time say i think the or volumes is great for the in a building for the future i would expect that a lot of that twenty five million will be
spk_3: in twenty twenty two and even some of the founder
spk_4: yeah part of what i'm trying to get at is almost you know how much in our model for bio pharma is it sense like the rest with for progress made your data obviously like any company property fully to rescue but it sounds like you're a big part of that twenty five million would command next year it your back the case would you be willing to share what your overall bio pharma that bloggers at this point yeah clearly a something more than twenty five million dollars would you be willing to share what it is
spk_13: i don't like on may be sure that backlog number
spk_11: yeah so we haven't shared the backlog number in the past but i think you're looking at is the correct way in terms of what we said in the prepared remarks that know the bio pharma businesses expected to grow a target to grow at least fifty percent in twenty twenty two over twenty twenty one which implies in a little more than fifty million dollar other that this point in time which that we do have a healthy backlog going into the year and we do have line of sight to a lot of project than we have a lot a new projects that are perspective in nature it's well meaning the sample flow will come in a clinical trial in a moment occurred going forward which gives us better visibility than a retrospective project because introspective project could have a lot of variability with samples command keep their sequence and the project done but we do have a lot of new projects stacking up now better going forward and then in addition we have you know the success we've been seeing on the for like some liquid by actually offering my the m the offering becoming the
spk_13: market with so we're really excited we believe that you know chaos and as that same question about the floor you know and next you deceive into the for for the oncology business and i i think based on what john and i see the day in our business we do we believe we can outperform or what we're guiding to and or what we just stayed in them
spk_14: will provide more color on the next earnings call
spk_11: oh cap and last one you don't want one thing we haven't heard about at least today and and maybe not as much out recently is that and progress with your initiatives on ah the broader pop jan side of thanks i'm maybe it's just because there's so much going on i'm that good on not bio pharma and oncology side maybe it's because you're that plots what you're dealing with the pipeline for service those customers
spk_3: but as we think about it or maybe mvp at least moderating in terms of case of revenue you know it all for be nice to get a little bit more about potential off that's what your augur popped and initiatives is there anything to talk about their arabic everything new their i'm afraid that the united states area where continuing the top of folks about and explore opportunities i do think that there are opportunities there think personnel is that the main company that's exploring population sequencing as a service and certainly we have the the track record to be able to do that into that said every country
spk_11: he has their own on plans and sometimes that takes a while so afraid nothing new on that yet today
spk_0: oh cap or a very helpful got thank you so much
spk_4: and langston at flushing half and patted down the city or something
spk_3: hey guys thanks for taking the question on doesn't follow been one of bugs there in terms of the visibility your didn't sound like you guys are but is in terms of the fifty percent growth for next year are you assuming kind of similar order numbers and for cute it's review it and see my you're assuming any big ran for you need any big numbers and for q or
spk_4: even the beginning of twenty two to hit that fifty percent of the get quite confident and but just want to get a feel for can of the assumptions going forward and now in what what needs to happen hit that number from here non forward
spk_11: the i had and are they are and if you're speak to the to the numbers generally i think were shipped feeling like the bio pharma business is in great shape with that but we've seen an accurate three and at yards and the feels like it's an ongoing
spk_4: im a ramp up in the in orders
spk_11: eric years between them church shopping that thanks to the question patrick and it's a good question so in terms of you know the the queue for orders that we had linus i t today and with that level will be you know we can't show that number but again we've been recording we're bringing in more orders then revenue we've been reporting now for the last two years of so and we see that trend continuing and it's gonna continue for the foreseeable future as we continue to grow and drive topline grow so queue for any orders we bring in and queue for you know typically won't get turned around in that corner for revenue know be a little bit that gets turned for revenue but it does take a
spk_15: little bit of time for statements of work to get to defined and projects to start samples to be received before we can recognize revenue and so that's kind of the path we see i going into twenty twenty two we do anticipate having you know have the amount of backlog to be fulfilled and twenty twenty two and beyond and so that's what gives of the confidence to be of the state that we have to be growth is fifty percent or or better at this point in time and so again just clarity orders that we receive in the quarter know a little bit of that gets fulfilled in quarter been a lot of it is for future quarters
spk_13: understand okay the and then with the be a it either you said it kept maybe a little that differed in terms of numbers they wanted to do or kind of the through the you anticipate the next order as we get into the summer of next year could be almost their potential for a catch up where could be bigger than general past couple years or so this one i'm sitting smaller ah a
spk_4: and then as we look at that next summer any reason to believe that are of the a more competitive process and you see others seem to be able to do this it's been here your guys certainly for about ten years he mentioned ah but just in terms of the competitive landscape any color air and then again what the size could be the potential of it's bigger than ninety between up or that be so
spk_3: answer just stand at the competition say this is john in a where we always assume that that there could be a significant uptick with that said you know there have been really anybody else doing the kind of thing we've been doing for almost ten years now so they you know it able to get emails with advocate of track record we have we would certainly be and director
spk_4: careful about competition and i will put our best foot forward on that and assume that we have to win the business not take anything for granted an interest of the size of that i think it's like stay there are a lot of samples mean the a the most recent never seen a problem is that they've now enrolled eight hundred and forty thousand veterans they've been the getting to enroll their parents against for the number has been going up again this year at some extent so they that's a lot of samples that have not been
spk_15: sequencer there's no question that they have the samples and i think as the scientific interest and he it'll come down the budget and priorities as i mentioned there in are looking at a variety of different things and will probably hear more about that in the the next few months they are at the
spk_11: it's hard to say what the exact scale will be they did have a we had orders over thirty million dollars a year for a number of years and are oh so it wouldn't be surprising if they're able to if they don't get back to something like that but we know that we don't have anything in writing saying saying that
spk_12: again and his last one quickly if i would try on the balance sheet any implications and times the casper and as we think about that the movie pieces you thank you
spk_16: i think patrick and no no additional implication so similar to what we stated in our last call and keep your earnings call me to speak to add cash usage of somewhere around ninety nine dollars here and twenty twenty one and going into twenty twenty two at that level could step up and in terms of the growth initiatives the same in a
spk_17: she lives are in front of us as as before
spk_0: great accurate
spk_18: share thank you our next lesson plans are marked with sorrow with btg huh yeah thanks for all the updates as morning
spk_4: that i wanted to ask you know you've been thing that the a for a long time and obviously the relationship has been good between both of you for contacts i think that be helpful for us to learn you know how many times had that the a gone to an rfp i discuss in a yeah to been working together i believe for ten years i would be interesting to see if this is sort of a change in how they have looked at real thing yeah to such an a good morning mark so yeah that was an rfp the we've won in two thousand and twelve there was another one in two thousand and thirteen
spk_18: at the next or was in two thousand and seventeen and we had expected there would be one this here but adequate covered it was just knock and the other end of the time for itself it was not one this year so and if there's one at next year that would probably be the fourth one that will be involved of gotcha that super helpful on the eat out in response to our dogs questions you eat are you guys sort of confirmed that we should think about ah you know modeling a nominal value for the vs on you know i the thing i try to let this i'm certainly i could imagine you could
spk_4: get other task orders ah you know maybe the bridge the other quarters and twenty twenty two ahead of the rfp on but it sounds like you lack visibility whether or not you could get another task quarter so he in i know we're kind of nitpicking here but where i admittedly are struggling with how to think about our quarters one through three with of the yeah
spk_3: of of yeah i think it said they think the the process is differences here
spk_4: covered as kind of turn things upside down nearly had expected by now that there would have been
spk_3: and are of fianna task order and and it out maybe we would have in a have a another for your contract at this point service it that's all changed i think the fact that the period of execution of this task orders only six months and does it is that clear may what the be a will do after that and nato during the contracting girder time was as the contractor not allow
spk_11: to in our topic folks there's i think it's a it's all that remains a little unclear years usually after we get out of the sort of contracting window were able that to talk with them if to be a again and so expect in the coming months we may get some more color on their they're thinking there and certainly as we go forward whatever we hear will expect to have to share with you
spk_18: you on that i understand the modeling problem you know whether budgets muddled to but it's i think our senses they have a lot of focus on the oncology business and right now that seems is growing fast enough that know that's gonna be the certainly them a majority of our revenue in the and going forward and said that's probably the biggest things are to focus on the modeling we do see a lot of opportunity for that to grow and i think that's pilot rent have most of our focus on
spk_3: okay and you know at the time of the last earnings call and key to i believe you guys alluded to the fact that ah the v i had a proposed double digit increase in funding i've covered for the following year on it that still the case and so you not as we think about other be a going to
spk_4: an rfp process am i get them challenge with the notion of you know they've worked with the for a long time you have industry leading capability than the lab ah in turn off and and including your relationship with aluminum which is quite positive on that it seems to me that are price probably shouldn't be something that preclude you from from winning you know and another contract so how should we think about the moving parts with not enough funding and price yes i think they are understanding is that the am the at the increase that we've seen in the budget would be for fiscal year twenty two which starts october first and goes through and read thirtieth of next year when the white house propose that to congress earlier this year they they baked in a i was at thirteen percent iran air increase in there be a research budget and highlighted as that one of the largest growth areas in in recent memory so i think that's very positive certainly mvp is a line item in that and them and will be seen in the past that and the
spk_18: sometimes also benefits from other sources of funding and and that may include covered related funding so in i think it's a little hard to know but it certainly from or pricing standpoint we'd expect to be in a great position we work closely with a limit on this this this this is a big business for limit as well and and so at the gets very am
spk_3: a constructive and
spk_19: i'm pretty optimistic about
spk_4: okay last question for me that is on your next person or m r d plans at the you affirmed year plan to launch later this year what else needs to be done to secure the clinical launch can just talk about ah validation of the at they and and then what your plans are on the reimbursement side sure sort out the m r dave product our next person or product we would expect to launch in the fourth quarter here it think it's kind of it were of aquatic it'll be and are you a product to start weather u c l p for to be a lab developed hast thou this is will have to go through a validation process as you mention and as a variety of ways to do that i think we'll talk more about the you know the details on that when we get to the actual launch of it that i would expect it to be an important product for us in
spk_18: it's on a twenty two we have been prevailing it within a were farmer customers and there's a whole lot of excitement about that products i think it's kind of a were were looking forward to be ah the launch it and and talk more about it that i think i think it'll be something where we're going to be describing a lot as we go through
spk_20: the next year
spk_21: i think it will be a significant credit for us even of it's the reimbursements going to be
spk_0: important than it being a a clinical product that i think certainly and and twenty two i expected to be a pretty significant credit for us in they are even in the farm space
spk_11: okay think that
spk_3: okay thank you
spk_4: like mark and next question confirm my maps and with me in the company and line is open morning dates or take my questions armed with a couple on the rp process so i'm you know you've been through this but number times in the past so i know that they may not have communicated to be a exactly how that was gonna work but you'll just on that it terms of timing how long did they get it sorted has taken in the past and when would you expect to really know you know whether or not you you want a new contract yes say it's hard to know the process will be different next year because of that the know the different timing we're seeing here but the yeah in prayer in prior years when we've done this generally there's been a what's called a request for information that's a public document the comes out looking for what the capabilities of companies are that that might bid on something like this that or
spk_11: often comes out and kind of the april or may timeframe to be a takes those responses looks at what they want to do and then that will turn into a request for proposal again that's a public document that can come out you know perhaps in july it and then typically responses or go were at maybe it in august with the idea that the be a woodward a contract in the in september
spk_3: so that they historical i'm timing what the timing is and twenty twenty two and so forth they think is and i could be different given circumstances so in a will certainly be paying attention it is a very public process so in any of these are the timing of these requests is something that's on of the a website and
spk_4: would be something that that what we certainly will know about it can communicate
spk_3: okay great and then ah you know you've obviously one a number of these in the past and and you seem very well positioned dumb you know should there be another rp here but i was just wondering gil from a competitive standpoint are you aware of any other any changes any other company that have emerged made in the last four years that that you
spk_4: there might be your present more competition with you guys been waiting in the past
spk_11: i don't think so the i'm in a we haven't seen anybody else providing am is kind of population sequencing as a service exam suddenly there are other people who with the different kinds of sequencing and there was people who could decide to go into this area
spk_4: i would say that the you know there's more to it than just the sequencing anglers as the data analysis that while the relationship with the customer the sample handling and tracking and so as lot of elements we built up around this over the years and in working with the to be a and we hope that holds us and and good stead going forward we will continue to be careful assuming that there will be competitors know the good who could be very capable so will make sure we we we compete well for something like that not gonna take anything for granted
spk_3: yeah i understand our and then just more of up against the word in question so i'm the the press release says that would be that latest to order and the performance created through march thirty first set of that effectively mean that year you'll you'll have to recognize all that revenue by march thirty first
spk_20: of next year
spk_0: i would think so they are we haven't we can we haven't been able to really talk with the be about the details of this which has got to test credit late friday or of expand you know of nothing over the weekend
spk_13: the am i think given the size of the task ordered if the samples arrive it wouldn't be any problems for us to build a finish at it during that period of time so it i think if they've said that kind of a performance period i expect that they plan on sending the samples fairly promptly on
spk_10: and it'll all be done by a by march that occurs okay got it thank you
spk_11: within thank you
spk_13: and my
spk_22: and at flushing handsome sanli with a feeling right
spk_11: ah good morning guys and thanks for taking my question on just one point one for me or with that shift towards oncology say the business and it changes your product mix how do you think that will impact your product margins going to eat they're coming quarters
spk_23: don't take their
spk_0: church so i'm concerned question charmed and we we don't typically guide your provide estimates to margin near term what we have said and longer term meaning at scale so at scale been two hundred million or more revenue winters get gross margins been fifty percent or better and at three hundred man of analyze revenue will be you know better than sixty percent gross margins along the way we could be a little bit of variability to do on your investments in some of the different initiative investment and capacity and think of that nature that we have a lot you know going on right now but we're gonna see gross margin a creating or increasing as we go for
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