庫力索法 (KLIC) 2017 Q1 法說會逐字稿

Greetings, and welcome to the Kulicke & Soffa first fiscal quarter 2017 results call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator instructions.) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Joseph Elgindy, Director of Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin.

Thanks, Melissa. Welcome, everyone, to Kulicke & Soffa's first quarter fiscal 2017 conference call. Joining us on the call today are Dr. Fusen Chen, our President and Chief Executive Officer, and Jonathan Chou, our Executive Vice President and Chief Financial Officer.

For those of you who have not received a copy of today's results, the release as well as the latest investor presentation are both available in the Investor Relations section of our website at Kns.com.

In addition to historical statements, today's remarks will contain statements relating to future events and our future results. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results and financial condition may differ materially from what is indicated in those forward-looking statements.

For a complete discussion of the risks associated with Kulicke & Soffa that could affect our future results and financial condition, please refer to our recent SEC filings, specifically the 10-K for the year ended October 1st, 2016.

I would now like to turn the call over to Fusen Chen for the business overview. Please go ahead, Fusen.

Thanks, Joe. We are very pleased to have exceeded our guidance, with $149.6 million of revenue in the December quarter.

While this reasonably surpassed our expectations, it represents a 38% improvement over last year's December quarter. This strong top-line performance results in the strongest December quarter earnings per share over the past eight years.

While we continue to execute against our advanced packaging roadmap, this improvement is largely related to a strengthening environment within our core wire, wedge, and the consumables business, facilitated through our significant alignment in memory, automotive, and the industrial applications.

After meeting with many investors over the prior months, it has become evident that additional clarifications regarding our core business would be helpful. I want to take a moment to clarify the strength and the resilience of this sizeable and dynamic market.

Within wire bonding, our leadership position continues to facilitate the most challenging high I/O count in the stacked die applications. While some of the advanced packaging variations are derived from a mass reflow approach, a material portion of SiP and effectively all 3D packages in modern production are addressed by our existing ball bonding product family.

In alignment with our historical IR presentations and the upcoming quarterly filings, I would like to highlight our three advanced packaging platforms, APAMA, hybrid, and the ATPremier Plus.

ATPremier Plus is our wafer level stud bumping platform within our advanced packaging family. We have a dominant market position with this dedicated and advanced packaging solution, serving the growing microelectromechanical system and the CMOS market segments.

Through 2017, we are targeting that our collective advanced packaging related offering will represent around 15% of our total equipment business. In addition to our advanced packaging target, we anticipate an improving environment for our high performance wire-based solutions, where we have dominant market shares.

With a healthy utilization rates and improving semiconductor forecasts and a strong alignment to major industry trends within our core business, we are also examining ways to better serve cost sensitive applications and to ensure we are best positioned to maximize all recurring revenue opportunities.

For the December quarter, wire bonding sales increased by 5% over the September quarter. While December quarters are typically seasonally soft, this performance was largely due to general strength in demand for all our wire bonding equipment including LED, but also our ability to identify the significant memory opportunity and to deliver leading solutions.

The current memory opportunity is due to an aggressively build up capacity to meet growing market requirements for solid state storage across consumer, enterprise, and the mobile applications. In many cases, this wire-based application content is arguably the most complex, high volume, and transistor dense package in production, namely 3D stacked die for vertical NAND.

To be perfectly clear, this is an advanced package that relies heavily on our wire bonding technology. We continue to anticipate NAND memory to be a major demand driver for our leading advanced wire bonding solutions throughout fiscal 2017.

Moving on to our wedge equipment business, the sequential revenue improvement was nearly 36%. Similar to forecasted development of our leading memory wire bonder, we have continued to target high growth applications in general automotive, automotive power storage, and the industrial applications. Geographically, we continue to see strong demand from our China-based customers.

We remain extremely focused in growing our advanced packaging solution by driving features and the functional release into 2017, and anticipate winning share with new hybrid customers, while we anticipate 2018 to be a more meaningful year of adoption for our APAMA solution.

As a reminder, this performance, in addition to ATPremier, covers a breadth of advanced packaging techniques now supported by our core business, including mass reflow SiP, fan-out wafer level packaging, and thermo-compression.

When we look out through 2020, we anticipate our served advanced packaging opportunity to grow significantly as we continue to execute against our developmental map.

Lastly, our electronics assembly business continued to perform well with European automotive and the industrial customers.

With a growing need for higher accuracy placement, we feel there is a sizeable and unmet need in Asia for communication infrastructure applications. Accordingly, we have recently reengaged with a variety of Asia-based customers, and will continue to aggressively drive business development efforts going forward.

I would now like to turn the call over to Jonathan Chou, who will cover this quarter's financial overview in greater detail. Jonathan?

Thank you, Fusen. My remarks today will only refer to GAAP results and will compare the December quarter to the September quarter.

Net revenue for the quarter was $149.6 million. Healthy gross margin of 45.7% generated $68.3 million of gross profit. During the quarter, we generated $17.3 million of operating income, $15.6 million of net income, and $0.22 of EPS, a very strong performance considering the typical seasonal softness of the December quarter.

As Fusen highlighted, this has been our best per share December quarter performance in eight years, well before the initial copper replacement ramp. The current strength and outlook enhance our optimism on an improving wire bonding market after several years of capacity digestion.

During the December quarter, we incurred a favorable foreign exchange impact related to the strength of our functional currency, as well as a discreet insurance claim, which collectively contributed $2 million to our bottom line.

Turning to the balance sheet, we ended the December quarter with a total cash and investment position of $577.4 million. From a diluted share standpoint, this cash position is equivalent to $8.05, up more than 15% from a year ago. On a book value per share basis, we ended the December quarter with $11.43.

Working capital, defined as accounts receivable plus inventory less accounts payable, decreased by $19.5 million to $156.4 million. From a DSO perspective, our days sales outstanding decreased from 81 days to 72 days. Our days sales of inventory decreased from 99 days to 93 days, and days of accounts payable increased from 48 days to 51 days.

This concludes the financial review portion of our call. I will now turn the discussion back over to Fusen for the March quarterly business outlook.

Thanks, Jonathan. As discussed in this morning's press release, we are targeting revenue to come in between $185 million to $195 million for the March quarter.

This current guidance range represents nearly a 40% increase from our Q2 2016 guidance, making this the strongest Q2 guide in well over 10 years. This improvement indicates further support that our overall business outlook is becoming more favorable after several lower semiconductor growth years and the capacity digestion related to the copper replacement cycle, which began in fiscal 2010.

There are several significant drivers which are all currently and positively impacting our business. I wanted to take a few minutes to summarize some of the most significant trends into 2017 outside of our advanced packaging opportunities.

First, we continue to be very positive on the new power storage applications supported by the growing electrical vehicle market and demand for our wedge bonding offering. Looking back at fiscal 2016, this new power storage business became 15%, a significant portion of our wedge equipment sales, and it is anticipated to continue being a material opportunity.

Next, we anticipate to continue benefitting from the growing requirement for a more advanced and high accuracy pick and place tool. Our recent effort and the engagement with Asian based manufacturers has confirmed this market evolution is gaining traction. We continue to be optimistic, and look forward to sharing additional updates as we proceed.

In addition, the strength and the size of the recovery in the ball bonding market is significant. We have been discussing this over the past several earnings calls. And a major underlying driver has been the underinvestment in the past several years due to capacity digestion, coupled with the low single digits semiconductor unit growth. While utilization rates are strong, there continues to be many growing applications driving core wire bonder demand.

Looking to products released at this year's Consumer Electronics Show in Las Vegas, the main headline was around virtual reality, self-driving cars, and the broadening proliferation of connected home devices. While there are clearly several advanced packaging opportunities, a significant amount of this new future end product relies on our core wire bonding offering.

As discussed in the past, many of these devices require LEDs, LED drivers, display drivers, sensors, microcontrollers, as well as Wi-Fi and Bluetooth connectivity, where production costs are most critical. We anticipate high efficiency wire bonded package and a variation of SiP to continue feeding Internet of Things' growth.

Finally, as touched on earlier, solid state drive growth is supporting dynamic NAND flash capacity requirements and will continue to be a significant demand driver in the near term. According to Gartner, the compound annual growth rate for solid state drives is anticipated to be 24% through 2020.

Collectively, we continue to be well positioned to benefit from many emerging opportunities throughout our growing business.

This concludes our prepared remarks. Operator, we will now be happy to take questions.

Thank you. (Operator instructions.) Tom Diffely, D.A. Davidson.

Yes, good morning. Well, good evening too. So, first, just a question on the level of business today. When you look at the overall prospects going forward, do you get the sense that this is just a -- kind of a step function increase in business levels as opposed to a pull in or a timing difference on a year-over-year basis?

So, as I mentioned in my previous remarks, I think we are in alignment with many industrial trends. And the company is currently exposed to multiple industries other than just PC or semiconductor.

So, we see the strength actually coming from many fronts and impacting our wire bonding, wedge bonding, and also spares and the consumables. So, we don't believe this is seasonality. And we also don't feel this is a bubble, a big bubble ahead of us.

So, Tom, I don't know if I answered you questions.

Yes. So, maybe I can add a little bit in terms of the -- definitely those are the drivers that Fusen just listed. But I think in terms of the way the volume has come through has actually shifted in the past, where we're guiding a nice guidance for Q2, this current quarter.

So, without guiding ahead of ourselves, it is possible that this could be the third year that will have a similar seasonal pattern as previous two years.

Okay. Yes, over the last couple of --.

Yes. But if you look at year-on-year, it's pretty healthy from a growth perspective.

Okay. Yes, if you look at the last few years, it seems like the normal fourth quarter slowdown started a little earlier than it had previously, started more in the third calendar quarter versus the fourth calendar quarter. But this is extremely unusual, to have strength -- sequential growth in the December quarter.

Yes. Well, yes.

Okay. So, I guess when you look at the drivers, and you laid out a lot of them between IoT and the NAND business and just the overall kind of automotive and other, can you kind of prioritize which of those are the bigger drivers that you're seeing this year and which ones you think are the biggest long term drivers?

Well, I think -- memory for sure I think is sustainable and in a big way, particularly in NAND, 3D NAND and printed NAND.

Also, wire bonded SiP as well as our hybrid SiP is quite -- favorably impacts our business. And we believe -- I think on LED we are getting market shares in the ball bonder. We also see quite favorable impact from our auto industry in the power storage, as well as traditional automotive devices.

In the meantime, we put a focus in spares and consumables, and we see a good result.

Okay. When you look at the fleet of cooper wire bonders that you've installed over the last five years or so, are they capable of all these new drivers that you talked about, the IoT, the NAND, the LED, or is that a different type of ball bonder that's required?

Yes, I think so. I think for certainly the IoT type of devices, which is very cost sensitive, they definitely can do the job.

But as I mentioned in earlier calls, when it comes to basically more sophisticated looping for the SiP, for being used by the utility smartphone customers, that requires kind of the latest wire bonder that we have.

Yes. And we do believe there will be more and more very complicated wire bonded products required in the market, which we have a very close relationship with our customers.

Okay, great.

Yes. And another data point for you is really 73% of all the ball bonders sold have actually -- is copper capable with kits for that this past quarter.

Okay, good. And then finally, when you look at the electronic assembly part of the business, how do you view that on a go-forward basis? Is that a growth avenue for you as well at this point?

Of course we do believe this is going to be a growth path for us. This is a market, very competitive, but we do believe we have good opportunities by putting proper R&D resource. And I think we are gaining some traction. We just need to put more R&D to compete in this market.

Okay. Thank you very much.

Thanks.

David Duley, Steelhead Securities.

Good morning, or good evening to you guys. Congratulation on a nice quarter and good guidance. Maybe you could help me just a little bit frame the size of some of these markets. You've talked about the 3D NAND market. Could you help us understand, for K&S, how big a piece of business that is on a quarterly or annual basis? And what do you think the growth trajectory will be for you guys?

I think this market -- as I mentioned, anticipated growth even for the solid state drivers is more than 20% per year. I had a discussion with some customers, many working on the NAND. They gave me a number. If all the hard disk drives need to be replaced by NAND flash, this industry needs to have not only multiple fabs, it's going to be tens and even hundreds of fabs to make it.

So, I think this is a significant market. And NAND, I think high end is toward [NCROW] application and also solid state drives. So, we do believe this is a very big market.

Yes. And just to give you a little bit of -- a kind of reference point from a percentage perspective, I think historically it was about 20% of our total ball bonder business. It's now about 30%. So, it's up about 10% from historical level.

Okay. And I guess another just question kind of on the year-over-year growth. I think it's surprising that in the March quarter you're looking at this kind of -- I guess on a year-over-year basis it's like $30 million or $35 million. And I guess in your prepared remarks you highlighted that most of this is coming from your core wire bonder business. Is that the way to look at it? When you look at the $35 million or whatever the dollar number is on an annual basis, on a year-over-year basis, where is the growth coming and what is giving us the upside in the quarter?

Well, I think, David, we also mentioned wedge bonder is very strong, and especially in the power storage in electrical vehicle demand. And I think this industry could grow in a bigger way. And this is a good trend for us, and not only stuff from the US. I think that there will be many regions start to put a lot of focus in this power storage.

So, when it comes to our wedge bonder, not only in the power storage and the auto, we see applications start to be in alternative energy which comes from mega DC and the AC inverter. And we also see customers need mega IGBT devices. This is for high power transmission base stations. So, here and there, actually this industry actually starts to actually more diversify, and we are seeing different impacts from multiple industries.

So, when you look at that $35 million or $40 million growth on a year-over-year basis, I guess obviously there's multiple pieces of the wire bonder or wedge bonder business that are accounting for most of that growth. Is the advanced packaging business growing on a year-over-year basis?

Yes. We actually -- last earnings call, we gave a guidance that this year our advanced packaging occupies roughly 15% of total revenue. And we are working hard, and we do believe we can achieve this goal.

Okay. And I guess one of the things that struck me during this earnings season and listening to lots of companies report, particularly the large test and assembly house, they started off -- they also had a better December quarter and gave better than expected March guidance, I think, on a seasonal basis. And one of the key things that struck me on their conference call is essentially they're talking about overall IC unit volumes I think growing from 2% to 3% in 2016 to 5% to 7% in 2017, so kind of a doubling, I think, of the IC unit volumes.

And I all of a sudden -- that seems like it's translating directly into your business. So, is that one way to look at why things are so strong is it's fairly simple, we have a lot more units that need to be packaged?

Yes. The overall population is increasing and the number of devices per person is increasing. And the connectivity between people to people, people to stuff, this is increasing. So, overall I think that this industry needs to have more package capacity to deal with the increase in semiconductor demand.

Okay.

And if I could just add, in terms of -- yes, our TAM clearly is in line with what you heard from the OSATs in terms of 6.5%, 7%. But we believe our SAM will actually grow at a higher rate per year for the future, because we are focusing on some of these higher growth -- kind of the space.

Okay. And are you comfortable at this point to talk about, kind of on an annual basis, for your -- maybe perhaps your fiscal 2017, what you think the growth rate would be for overall?

Well, David, I think we give our quarterly guidance. But I think it is not a secret. Looks like the analysts average about 650.

655.

I think we feel comfortable.

Yes. I guess given the numbers that you've just posted, it would appear that the current estimates for the Street are a little conservative on the top line growth rate. I guess it's -- and I had to try to ask on the annual basis, so thank you.

(Laughter.) Okay.

Good try. Thanks.

Thank you, Dave.

Craig Ellis, B. Riley & Company.

Hi. This is Peter calling in for Craig Ellis. Thanks for taking the question. Just on the cash balance, how much of this is onshore? And how do you plan to prioritize using your cash?

Yes. The current cash is about 12% onshore, and the rest is actually offshore. And we have actually been continuing to plan ahead in terms of how we can actually have some flexibility in the future.

So, in terms of future movement and so forth, obviously this also has to do with the new administration that's in the office as well. So, we believe there's going to be some pretty good flexibility going forward, not just from an administration's new tax rules perspective, but I think we're in pretty good shape for that.

The prioritization of our capital, it continues to be pretty consistent in terms of how we can basically grow our portfolio. We are investing more internally on our organic initiatives. Going forward, Fusen mentioned that some of our platforms or product groups require some additional R&D, which we are continuing to do that to be more competitive in the market that they serve.

And after the organic side, if a good opportunity comes through that's more adjacency that makes sense for us -- as you know, we're very conservative in terms of our evaluation from an inorganic kind of opportunity perspective. But if something does comes through, we will actually consider that.

We're also going to basically continue to buy back our shares. As you know, we have a small balance left on our $100 million repurchase program, which will come to an end in due course. And we are planning to propose another program to our Board and let them evaluate. Based on our discussion, we believe that they will support it.

Okay. Another question I have is, just based on the semiconductor of mid to high single digits in advanced packaging and the double digit growth, against that backdrop, are you kind of going to be growing in line with this, or are you going to be growing above these rates?

We're hoping we can grow above the growth of the industry in IC units, which the earlier caller basically said was 7% by some of their customers. We're looking at probably more 6.5% in terms of TAM growth, but our SAM that we're looking at could be actually higher than that.

And as you know, we guide just current quarter. But -- this is not a guidance per se in terms of long term, but we do believe our SAM to grow probably more on a double digit, 12% level.

So, Peter, I think you asked about advanced packaging. So, I want to assure you on advanced packaging. In terms of products, it's the most focused product in our product portfolio.

We put effort to defend and also grow wire bonder, but advanced packaging I think is in our future. And we do believe we have a good program, and we believe we are making traction in advanced packaging.

Thank you. That's all I have.

Thanks, Peter.

Sandy Mehta, Value Investment Principals.

Yes, thank you. Congratulations, guys, on a very strong quarter and very strong guidance, so very well done. You had mentioned on your comments that the customers had underinvested during the past couple of years. And I was just wondering if -- does that imply that there is sort of some pent up demand for your products and perhaps the capacity utilization or obsolescence of your products at the customer level -- your customers levels is very high? Could you just maybe expand a little bit on your comment, please? Thank you.

Well, I think if you see, say, five years ago, five, six years ago, there was a lot of investment in our copper products. So, we meant there was a build up of overcapacity. So, capacity digestion maybe is due to digestion of the capacity they brought up a couple years ago.

But as the number of units annually required an increase, I think our customers needed to purchase the new equipment. And the annual growth rate was changed from single digits to a more percentage. I think that also helped our situation.

Yes, maybe I can add a little point -- a few points here. So, Sandy, we track the -- we monitor our customers' utilization rate quite closely. We do this on a monthly basis. And the current utilization that we see is about -- in the high 70% level, and this is up about 5% from last year at this time.

And as we have said in the past, when it gets to about 80% then they have to trigger new purchases. So, these new purchases obviously is to add the capacity, and we have also seen basically additional orders come from -- basically because of the complication of the package itself. They need to buy new wire bonders and other equipment.

But I think the IC unit growth rate plus this utilization all kind of come together, how we can see that things are on a more positive trend.

Okay. And one follow up question. Could you just maybe comment a little bit on the outlook for your SiP business and also for your LED packaging business? Thank you.

Well, I think that we have -- our SiP, as of this moment, our understanding is the biggest growth in advanced packaging. And we have a true product to deal with that. One is our hybrid, which we can help customer to put both passive and active in the same package.

In the meantime, I think our ball bonder is also very capable to do SiP. So, it depends on customer's need. And we do believe our SiP is the strongest growth in terms of package at this moment for us.

And the LED packaging?

Oh, LED. Actually, LED is a very competitive market. And we have a model and focus on LED market. I think in the past two quarters, we are probably gaining a couple points of market share.

And we do believe this is a big market. And we start to put an effort probably a few months ago, and we are seeing the result.

Yes, because it's very cost sensitive. And our LED bonder basically is the highest accuracy in terms of best performance. But we need to compete in this cost sensitive market, so we have a lot of efforts in terms of how we take market share and protect our margins.

Okay. Thank you very much, and congratulations again. Thanks.

Thank you.

Thanks for the question.

Greg Eisen, Singular Research.

Thanks and good morning. Can you talk a little bit about gross margin this quarter, the factors that drove it year-over-year and versus last quarter, and kind of versus your longer term average over the last few years. It seems -- I guess at 45.7%, it's at the lower end of the range. Could you talk about what's driving that?

Sorry, Greg. Can you just repeat your question again?

Okay. I'm sorry. I was asking about gross margin and what are the factors that were driving it this quarter, because it's at the lower end of the long term range that you've been running at over the last few years.

Yes. I think we have been basically indicating that, while we actually target about 45% in terms of historic actual gross margin, we are actually trying to basically kind of be in a range of 40% to 45% from a gross margin kind of range perspective on the longer term basis.

However, the fact that we are actually selling more products and solutions and there is actually some -- basically some of the cost sensitive markets, we are seeing basically that that gross margin level to be around still 45%. In the past quarters, it has actually gone up to about 46%, 47% in some of the quarters.

Historically, when basically the IDM mix to the sub cons kind of -- when IDM picks up, the margin tends to get better because of the volume purchase agreements from some of the OSATs that would drive that gross margin a little lower.

But we are continuing to kind of target that 45%. But it could be actually slightly over it, depending on the volume and the mix of the customers that we have going forward.

Okay. Okay. And talking about your overhead levels, just looking at the variable overhead, using $48 million as your fixed cost base -- tell me if I did my math wrong. But I'm guessing that variable overhead came in at a very low single digit number, more like 2% on top of that $48 million, which is kind of below where you've been in the past. Could you talk about what factors would drive that? And is that --?

Sure.

Sustainable? It sounds like it would be to me.

Yes. So, the way I would guide how you model it is still $48 million, plus about 4% to 6% variable in terms of the -- this is per quarter -- in terms of the fixed cost would be $48 million and variable would be 4% to 6% tied to revenue.

And if you look at the actual OpEx that came in this quarter, it is lower at $51 million. And this is something I had mentioned in my prepared remarks in terms of the favorable foreign exchange gain that we had, as well as the discrete one-time insurance claim. That was about $2 million that fell through the bottom line that helped with the earnings. That's why you're seeing our costs a lot lower.

Okay. That insurance gain, the $2 million, was $2 million just for the insurance after tax?

Insurance and the favorable foreign exchange gain. The insurance claim was about $800,000.

$800,000, and combined it was $2 million.

Yes. So, $1.2 million for ForEx and $800,000 for insurance.

Okay. Okay. And it sounds like you didn't buy back any stock in the quarter. Am I correct in that assumption, or any meaningful amount of stock?

Yes. Yes, that's correct. But we do have a plan out there, so we do plan to buy back some shares.

Right. And just turning back to the advanced packaging business, I guess in prior quarters you had said the expectation was that it could -- your target contribution, 15% to 20%. I think -- did I hear you correctly? 15% is an expected contribution this year, this fiscal year, from the advanced packaging products to the revenue line? Is that really more of a function of being at the low end of that range because of the strength in the core business?

I think it's -- I think what we said is 15% of the total equipment would be advanced packaging. And that's really where we're aiming, and that's really where we are setting ourselves to grow year-on-year in the future from a percentage mix perspective from the total equipment side against other non-AP equipment that we sell.

Got it. Okay, I'll let someone else go. Thank you.

Yes. Thank you.

(Operator instructions.) Tom Diffely, D.A. Davidson.

Yes, thanks. Just a quick follow up. Just curious what the mix was between the IDMs and the OSATs during the quarter, and what -- if either group was the growth you're seeing year-over-year. And then when you look out on a go-forward basis, is it the large customers or the small customers that you think drive a lot of the growth this year?

Well, the mix for -- basically for first quarter, it's about 65%, 35% sub con to OSATs to IDMs. And that's really -- that's somewhat normal.

And from a types of customer perspective, I think it's the usual -- the current -- if you look our K, there is actually a top 10 list. That list is pretty -- is still pretty consistent. You'll see Haoseng?up there, which is our China distributor. A lot of our purchases or sales purchased by Chinese OSATs would be coming through there, and they've been consistently on the top of our top 10.

So, smaller -- I mean, our customer list is not that long a list. So, I would say they are all pretty sizeable tier ones.

Okay. I wasn't sure if, when we moved to IoT and NAND and LED, if you'd get a nice broadening out of the customer base versus the big three or four OSATs that dominated in the past.

You're right. The LED space definitely has a smaller customer, but we still somewhat continue to be selective in terms of focusing on those LED customers that have actually -- let's just say have the more sustainable kind of competitive strength over time.

Okay. Thanks.

Thank you. There are no further questions at this time. I'd like to turn the floor back to Joseph Elgindy for closing comments.

Thank you all for the time today. As always, please feel free to follow up directly with any additional questions. Melissa, this concludes our call. Good day.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.