Magic Software Enterprises Ltd (MGIC) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2022 Fourth Quarter and Full Year Financial Results Conference Call. Magic's Fourth Quarter 2022 earnings release was issued before the market opened this morning and it has been posted on the company's website at www.magicsoftware.com. (Operator Instructions)

女士們，先生們，謝謝你們的支持。歡迎來到 Magic Software Enterprises 2022 年第四季度和全年財務業績電話會議。 Magic 的 2022 年第四季度收益發佈於今天上午開市前發布，並已發佈在公司網站 www.magicsoftware.com 上。 （操作員說明）

As a reminder, this conference is being recorded. (Operator Instructions) With us on the line today are Magic's CEO, Mr. Guy Bernstein; Magic's CFO, Mr. Asaf Berenstin; and Magic's CTO, Mr. Yuval Lavi. Magic's Fourth Quarter 2022 earnings release was issued before the market opened this morning and it has been posted on the company's website.

提醒一下，這次會議正在錄製中。 （操作員說明）今天與我們在線的是 Magic 的首席執行官 Guy Bernstein 先生； Magic 首席財務官 Asaf Berenstin 先生；以及 Magic 的首席技術官 Yuval Lavi 先生。 Magic 的 2022 年第四季度收益發佈於今天上午開市前發布，並已發佈在公司網站上。

Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. The safe harbor provision provided in the press release issued today also applies to the context of this call. Magic expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations or otherwise.

在我們開始之前，我想提醒大家，本次電話會議可能包含預測或其他前瞻性陳述。今天發布的新聞稿中提供的安全港條款也適用於本次電話會議的背景。 Magic 明確表示不承擔更新或修改任何這些前瞻性陳述的義務，無論是由於未來事件、新信息、其觀點或預期的變化還是其他原因。

Also, during the course of today's call, management will refer to non-GAAP financial measures. A reconciliation schedule showing GAAP versus non-GAAP results has been provided in the press release issued before the market opened this morning. A replay of this call will be available after the call on our Investor Relations section of the company website.

此外，在今天的電話會議中，管理層將參考非 GAAP 財務措施。今天上午開市前發布的新聞稿中提供了顯示 GAAP 與非 GAAP 結果的對賬時間表。電話會議結束後，可在公司網站的投資者關係部分重播此電話會議。

I will now turn the call over to Mr. Asaf Berenstin, CFO of Magic Software. Please go ahead.

我現在將電話轉給 Magic Software 的首席財務官 Asaf Berenstin 先生。請繼續。

Thank you, operator, and thank you, everyone, for joining us today as we report our fourth quarter and full year 2022 financial results. During the call today, I will review highlights from our fourth quarter results and provide an overview of our achievements. We appreciate your continued support and look forward to sharing our progress with you.

感謝運營商，感謝大家今天加入我們，報告我們的第四季度和 2022 年全年財務業績。在今天的電話會議上，我將回顧我們第四季度業績的亮點，並概述我們的成就。感謝您一直以來的支持，並期待與您分享我們的進步。

During the year, we continued to make big strides across multiple fronts of our business, which is reflected by our record-breaking results exceeding $500 million in revenues for the first time and with double-digit growth recorded across all of our key financial indices for the year: revenues, gross profit, operating income, EBITDA, net income and dividend distributed to our shareholders. Our strong results demonstrate the growing investments made by enterprises and organizations worldwide even during challenging macroeconomic environment to leverage their digital technologies and cloud-based platforms, creating high demand for our innovative software solutions and services which, together with the outstanding execution by our teams, led to another year of strong performance recorded across our business.

在這一年中，我們繼續在多個業務領域取得長足進步，這體現在我們創紀錄的收入首次超過 5 億美元，以及我們所有主要財務指標均錄得兩位數的增長年度：收入、毛利、營業收入、EBITDA、淨收入和分配給股東的股息。我們的強勁業績表明，即使在充滿挑戰的宏觀經濟環境中，全球企業和組織也在不斷增加投資，以利用他們的數字技術和基於雲的平台，對我們創新的軟件解決方案和服務產生了很高的需求，再加上我們團隊的出色執行，導致我們的業務又一年取得了強勁的業績。

This quarter, Magic delivered its strongest fourth quarter top line and bottom line results with revenues increasing by 10.6% year-over-year to approximately $147.1 million, exceeding market expectations, and non-GAAP net income increasing by 9.9% year-over-year to a fourth quarter record-breaking result of $13.9 million. Growth in Q4 was mainly driven by our North American operations growing in double digits, accompanied by a strong pipeline, offsetting the negative impact of Jewish new year holiday season, which this year resulted in a decrease of approximately 6.5 billable working days equivalent to approximately $2.8 million in our Israeli market operations compared to the same period last year and 4 billable working days equivalent to approximately $1.2 million compared to the third quarter of 2022. On a constant currency basis, revenues for the fourth quarter of 2022 would have increased by 16.5% year-over-year to $155 million with 69.6% reflecting organic growth.

本季度，Magic 實現了最強勁的第四季度營收和利潤業績，收入同比增長 10.6% 至約 1.471 億美元，超出市場預期，非 GAAP 淨收入同比增長 9.9%第四季度創紀錄的 1390 萬美元業績。第四季度的增長主要是由我們的北美業務以兩位數的速度增長推動的，伴隨著強大的管道，抵消了猶太新年假期的負面影響，今年導致減少約 6.5 個計費工作日，相當於約 2.8 美元與去年同期相比，我們以色列市場業務的收入為 100 萬美元，與 2022 年第三季度相比，4 個計費工作日相當於約 120 萬美元。按固定匯率計算，2022 年第四季度的收入將增長 16.5%同比增長至 1.55 億美元，其中 69.6% 反映了有機增長。

Magic's fourth quarter results strongly demonstrate our sustained profit-oriented approach. We continue supporting our existing loyal customers as well as closing new deals. The continued strategic focus on the execution of our priority of top line growth resulted in yet another strong performance for the quarter. Our strategy allows us to carefully balance our growth, resources, investment and risk across regions and markets. Our solid execution in the fourth quarter and throughout this year validates our strategy of building a broad business portfolio, which provides for the foundation of our sustained solid performance and growth as we continue supporting our customers throughout their innovative digital transformation journey based on our long-term engagement cycle.

Magic 第四季度的業績有力地證明了我們持續的以利潤為導向的方法。我們將繼續支持現有的忠實客戶並完成新交易。繼續將戰略重點放在執行我們的收入增長優先事項上，使本季度的業績又一次強勁。我們的戰略使我們能夠謹慎平衡跨地區和市場的增長、資源、投資和風險。我們在第四季度和今年全年的穩健執行驗證了我們建立廣泛業務組合的戰略，這為我們持續穩健的業績和增長奠定了基礎，因為我們將繼續支持我們的客戶基於我們長期的創新數字化轉型之旅長期參與週期。

Despite seeing some caution in recent months in the high-tech sector, we are still witnessing a healthy demand and maintaining a solid pipeline to deliver continued growth also in 2023 as our customers increasingly engage us as a preferred partner for innovative digital information initiatives, and as such, we continue to fortify our position as a leading software solution and IT service global vendor. We are extremely proud of the positive results we continue to demonstrate, particularly from our organic growth and from achieving this quarter another growth milestone, crossing for the first time the $500 million in annual revenue. This is a significant milestone, which serves as a key evidence to our continued success. We are certain than ever that we have all the tools in place for sustained growth. We have a well-established track record of growth, profitability and high cash generation. And the Magic team worldwide, which this year has crossed for the first time the 4,000 employee and contractor headcount mark, is committed to executing our strategy to deliver growth and continue improving our shareholders' value.

儘管最近幾個月在高科技領域看到一些謹慎，但隨著我們的客戶越來越多地將我們作為創新數字信息計劃的首選合作夥伴，我們仍然看到健康的需求並保持穩固的渠道以在 2023 年實現持續增長，並且因此，我們繼續鞏固我們作為領先的軟件解決方案和 IT 服務全球供應商的地位。我們對我們繼續展示的積極成果感到非常自豪，特別是我們的有機增長和本季度實現另一個增長里程碑，年收入首次突破 5 億美元。這是一個重要的里程碑，是我們持續成功的關鍵證據。我們比以往任何時候都確信，我們擁有實現持續增長的所有工具。我們在增長、盈利能力和高現金生成方面擁有良好的記錄。 Magic 全球團隊今年首次超過 4,000 名員工和承包商，致力於執行我們的戰略以實現增長並繼續提高股東價值。

On the M&A front, we continue to explore M&A opportunities in the fields that we operate in as well as in fields that we target and identify growth opportunities, as we have in the past.

在併購方面，我們繼續在我們經營的領域以及我們瞄準並確定增長機會的領域探索併購機會，就像我們過去所做的那樣。

Moving to the financials, and starting with the geographical breakdown of our revenues. During the fourth quarter, North America accounted for 55% of total revenues; Israel, 37%; Europe, 6%; and APAC and the rest of the world accounted for 2% of our fourth quarter revenue. Our revenues in North America reached a record high of $84.9 million, up 20% compared to $70.6 million in the same period last year with 12% organic growth year-over-year. On a sequential basis, North America revenue grew by 7.5% from $79 million in Q3 2022 with 0.2% sequential organic growth.

轉向財務，從我們收入的地域細分開始。第四季度，北美佔總收入的55%；以色列，37%；歐洲，6%；亞太地區和世界其他地區占我們第四季度收入的 2%。我們在北美的收入達到創紀錄的 8,490 萬美元，與去年同期的 7,060 萬美元相比增長 20%，同比有機增長 12%。從環比來看，北美收入從 2022 年第三季度的 7900 萬美元增長 7.5%，環比有機增長為 0.2%。

Revenues in Israel reached $48.2 million, down 7% compared to $52.1 million in the same period last year. On a constant currency basis, revenues in Israel increased by approximately 3.2% compared to the same period last year and despite negative impact of the new year Jewish holiday season.

以色列的收入達到 4820 萬美元，與去年同期的 5210 萬美元相比下降了 7%。按固定匯率計算，以色列的收入與去年同期相比增長了約 3.2%，儘管受到新年猶太節日的負面影響。

Turning now to profitability. Despite the significant currency headwind and the negative impact of the Jewish holiday season, we were able to deliver growth in our gross profit as well as in our gross margin as our non-GAAP gross profit for the fourth quarter of 2022 reached $43.2 million, up approximately 11.5% compared to $38.7 million in the fourth quarter of last year. Our non-GAAP gross margin for the fourth quarter of 2022 increased 20 basis points from 29.1% in the fourth quarter of 2021 to 29.3% in the fourth quarter of 2022.

現在轉向盈利能力。儘管存在重大的貨幣逆風和猶太節日的負面影響，我們的毛利潤和毛利率都實現了增長，因為我們 2022 年第四季度的非美國通用會計準則毛利潤達到了 4320 萬美元，同比增長與去年第四季度的 3870 萬美元相比增長了約 11.5%。我們 2022 年第四季度的非美國通用會計準則毛利率從 2021 年第四季度的 29.1% 增長 20 個基點至 2022 年第四季度的 29.3%。

The breakdown of our revenue mix for the year of 2022 was approximately 17.4% related to our software solutions with gross margins of approximately 64% and 82.6% related to our professional services with gross margin of approximately 21%. While in 2021, 20% of our revenues were attributable to our software solutions segment with a gross margin of approximately 64% and 80% related to our professional services with gross margin of approximately 20%. The increase in the percentage of our professional services is due to the continued strong demand for our professional experts driving our professional service revenue stream as well as the acquisition of TGG concluded during the third quarter of 2022. The breakdown of our gross profit mix for the year was approximately 39% related to our software solution and 61% related to our professional services compared to 44% and 56% in the same period last year.

我們 2022 年收入組合的細目約為 17.4% 與我們的軟件解決方案相關，毛利率約為 64%，82.6% 與我們的專業服務相關，毛利率約為 21%。而在 2021 年，我們 20% 的收入來自我們的軟件解決方案部門，毛利率約為 64%，80% 與我們的專業服務相關，毛利率約為 20%。我們專業服務百分比的增加是由於對專業專家的持續強勁需求推動了我們的專業服務收入流，以及對 TGG 的收購在 2022 年第三季度完成。今年約有 39% 與我們的軟件解決方案相關，61% 與我們的專業服務相關，而去年同期分別為 44% 和 56%。

Moving to operational costs. Our non-GAAP operating income for the fourth quarter of 2022 decreased by 2.9% to $19.2 million compared to $19.8 million in the same period last year and $18.5 million in the third quarter of 2022. This reflects an operating margin of 13% for the quarter compared to 14.9% in the fourth quarter of 2021 and 13.1% in the third quarter of 2022.

轉向運營成本。我們 2022 年第四季度的非美國通用會計準則營業收入下降 2.9% 至 1920 萬美元，而去年同期為 1980 萬美元，2022 年第三季度為 1850 萬美元。這反映出本季度營業利潤率為 13%相比之下，2021 年第四季度為 14.9%，2022 年第三季度為 13.1%。

Financial expenses. During the quarter, we had financial debt interest expenses of $684,000 resulted from our $51 million financial debt compared to $200,000 recorded in the same period last year for a total financial debt of $37 million. As interest rates are still expected to rise, we expect our interest expenses to continue growing.

財務經費。本季度，我們的 5100 萬美元金融債務產生了 684,000 美元的金融債務利息支出，而去年同期為 3700 萬美元的金融債務總額為 200,000 美元。由於預計利率仍將上升，我們預計我們的利息支出將繼續增長。

Net income attributable to noncontrolling interest. As our business combination model has often relied on keeping former shareholders in acquired entities as minority stockholders, in addition to the managerial role in such entities, we are allocating a portion of our net income to these minority shareholders. Net income attributable to noncontrolling interest amounted this quarter to $1.5 million compared to $1.8 million in the same period last year.

歸屬於非控股權益的淨收入。由於我們的企業合併模式通常依賴於將被收購實體的前股東保留為少數股東，因此除了在這些實體中擔任管理角色外，我們還將部分淨收入分配給這些少數股東。本季度歸屬於非控股權益的淨收入為 150 萬美元，而去年同期為 180 萬美元。

Our non-GAAP tax expenses this quarter totaled $2.5 million compared to a tax expense of $3.9 million in the fourth quarter of 2021. Our effective tax rate for the year was approximately 18% compared to 17.8% recorded in 2021. We expect our effective tax rate in 2022 to be in the range of 19% to 20%.

我們本季度的非 GAAP 稅收支出總計 250 萬美元，而 2021 年第四季度的稅收支出為 390 萬美元。我們今年的有效稅率約為 18%，而 2021 年為 17.8%。我們預計我們的有效稅收2022 年的增長率將在 19% 至 20% 的範圍內。

Our non-GAAP net income for the fourth quarter increased 9.9% to $13.9 million or $0.28 per fully diluted share compared to $12.6 million or $0.26 per fully diluted share in the same period last year.

我們第四季度的非 GAAP 淨收入增長 9.9% 至 1390 萬美元或每股完全稀釋後的每股 0.28 美元，而去年同期為 1260 萬美元或每股完全稀釋後的 0.26 美元。

Turning now to the balance sheet. As of December 31, 2022, cash and cash equivalents, short and long-term deposits and marketable securities amounted to approximately $87 million compared to $88.8 million in the same -- in the previous quarter. Our total financial debt as of December 31, 2022 amounted to $51.1 million compared to $59.1 million in the previous quarter. During the fourth quarter, our cash flow from operating activities reached $12.1 million compared to $5.9 million in the same period last year. Our cash flow from operating activities for the year reached $49.6 million compared to $37.8 million in 2021.

現在轉向資產負債表。截至 2022 年 12 月 31 日，現金和現金等價物、短期和長期存款以及有價證券總計約 8700 萬美元，而上一季度為 8880 萬美元。截至 2022 年 12 月 31 日，我們的金融債務總額為 5110 萬美元，而上一季度為 5910 萬美元。第四季度，我們的經營活動現金流量達到 1210 萬美元，而去年同期為 590 萬美元。我們全年經營活動產生的現金流量達到 4960 萬美元，而 2021 年為 3780 萬美元。

In accordance with our dividend distribution policy, our Board of Directors has declared a semiannual cash dividend in an amount of $0.30 per share and in an aggregate amount of approximately $14.7 million which, together with the dividend distributed for the first half of 2022 in an amount of approximately $14.2 million, reflects 71% of the company's net income attributable to its shareholders for the year.

根據我們的股息分配政策，我們的董事會宣布半年度現金股息為每股 0.30 美元，總額約為 1470 萬美元，連同 2022 年上半年分配的股息為約 1,420 萬美元，占公司當年歸屬於其股東的淨收入的 71%。

In closing, I would like to turn to our guidance for 2023. As we are witnessing a healthy demand and developing a growing pipeline to deliver continued growth in 2023, we anticipate revenues in the range of between $585 million to $593 million, reflecting annual growth of 3.2% to 4.6%. This growth takes into consideration anticipated organic growth, the current macroeconomic environment and the current devaluation of foreign currency exchange rate versus average rates in 2022. Based on 2022 average currency exchange rates, Magic's 2023 annual revenue guidance would have been between $600 million and $608 million, reflecting annual growth of 5.9% to 7.3%.

最後，我想談談我們對 2023 年的指導。由於我們見證了健康的需求並開發了不斷增長的管道以在 2023 年實現持續增長，我們預計收入在 5.85 億美元至 5.93 億美元之間，反映了年度增長3.2% 至 4.6%。這一增長考慮到了預期的有機增長、當前的宏觀經濟環境以及當前外幣匯率相對於 2022 年平均匯率的貶值。根據 2022 年的平均貨幣匯率，Magic 2023 年的收入指引將在 6 億美元至 6.08 億美元之間，反映年增長率為 5.9% 至 7.3%。

In summary, this was a strong, challenging and overall exceptional year of execution on many fronts, and we want to congratulate the Magic global team for their outstanding performance in 2022. The results we delivered show that our strategy is working, and that by focusing on our investment to deliver profitable growth, we can significantly enhance shareholder value.

總而言之，這是在許多方面都表現出色、充滿挑戰且整體表現出色的一年，我們要祝賀萬智牌全球團隊在 2022 年的出色表現。我們交付的結果表明我們的戰略正在奏效，通過專注在我們實現盈利增長的投資上，我們可以顯著提高股東價值。

With that, I will now turn the call over to the operator for questions.

有了這個，我現在將把電話轉給接線員提問。

(Operator Instructions) The first question is from Chris Reimer of Barclays.

（操作員說明）第一個問題來自巴克萊銀行的 Chris Reimer。

Congratulations on the strong quarter. Just touching on operating expenses. We've seen double-digit increases over the past few quarters. Do you expect this to level out at some point? Or is there some other investment going into there? Is it just macro-related? Just wondering what the moving parts around the operating expenses are and how you see that going forward.

祝賀強勁的季度。僅涉及運營費用。在過去的幾個季度中，我們看到了兩位數的增長。你認為這會在某個時候趨於平穩嗎？還是有其他投資進入那裡？它只是與宏觀有關嗎？只是想知道圍繞運營費用的移動部分是什麼以及您如何看待它的發展。

The majority of the increase in our operating expenses relate to our sales and marketing. Some of it, a portion of that, 1/3 of that was from the acquisitions that we did, especially TGG which contributed around $3 million to our sales and marketing expenses in 2022 versus 2021. And all other increases are mainly related to our investment in increasing our sales team and our recruitment teams and the bonuses that we pay as part of the growth that we experienced in our revenues and in our gross profit.

我們運營費用的大部分增加與我們的銷售和營銷有關。其中一部分，其中一部分，其中 1/3 來自我們所做的收購，尤其是 TGG，與 2021 年相比，它在 2022 年為我們的銷售和營銷費用貢獻了約 300 萬美元。所有其他增長主要與我們的投資有關在增加我們的銷售團隊和招聘團隊以及我們支付的獎金方面，作為我們在收入和毛利潤方面經歷的增長的一部分。

Understood. And just touching on the headcount and your employees' levels. How do you feel like you're positioned now and how do you see the trends in staffing? Is it still hard to acquire new employees? Or do you find maybe that they're staying longer? Just any of the trends around that and how you see your employee levels going forward.

明白了。並僅涉及員工人數和員工水平。您覺得自己現在的定位如何？您如何看待人員配置的趨勢？招新人還難嗎？或者您是否發現他們停留的時間更長？關於這方面的任何趨勢以及您如何看待您的員工水平。

I think we see that the trend is changing. Still, chasing after the talents is still a challenge. But let's say that the regular IT players are easier to get, on one hand. On the other hand, we see some hesitance from customers because of the economical uncertainties. So on one hand, it's easier for us to find the employees; on the other hand, some hesitance in the market.

我認為我們看到趨勢正在發生變化。儘管如此，追逐人才仍然是一個挑戰。但是，一方面，可以說常規 IT 人員更容易獲得。另一方面，由於經濟不確定性，我們看到客戶有些猶豫。所以一方面，我們更容易找到員工；另一方面，市場有些猶豫。

I would add to that one thing that when -- normally we serve as the subcontractors to our customers. So on a difficult macroeconomic environment or when there is this winds of recession, the customers tend to go with subcontractors rather than with increasing their internal headcount, and this was for our benefit. When there is actual recession, then you first try and minimize the responsibility of the subcontractors. So currently, we only see winds of recession or some recession but we don't actually see it in the demand for our services.

我要補充的是，通常我們作為客戶的分包商。因此，在困難的宏觀經濟環境或出現經濟衰退之風時，客戶傾向於選擇分包商，而不是增加內部員工人數，這對我們有利。當出現真正的經濟衰退時，你首先要盡量減少分包商的責任。因此，目前，我們只看到經濟衰退或一些衰退的風聲，但我們實際上並沒有在對我們服務的需求中看到它。

The next question is from Kate Kronstein of William Blair.

下一個問題來自威廉·布萊爾的凱特·克朗斯坦。

Congrats on the nice quarter. This is Kate Kronstein on from Meg Nolan. My first question is, can you guys talk through a bit the foreign currency mix in revenue and the cost base right now?

恭喜這個漂亮的季度。這是梅格諾蘭的凱特克朗斯坦。我的第一個問題是，你們現在能談談收入和成本基礎中的外幣組合嗎？

Yes. Basically, we have experienced significant devaluations in the 45% of our businesses as 55% of our business relates to the U.S. -- to North America. So this is something that doesn't affects us. But something around 35% to 40% of our business is still done in Israel, and we experienced almost 11% devaluation of the exchange rate between the dollar and the shekel. Now every 100 of the change in the exchange rate has a $700,000 negative impact over our top line. And since eventually, we have Israeli people, Israeli employees that carries out projects in the Israeli territory, it goes down also and devaluates the operating margin. So every 100 change basis points or in the exchange rate gives -- reduces our operating profit by around $80,000 -- $75,000 to $80,000.

是的。基本上，我們 45% 的業務經歷了大幅貶值，因為我們 55% 的業務與美國有關——與北美有關。所以這對我們沒有影響。但我們仍有大約 35% 到 40% 的業務在以色列完成，我們經歷了美元與謝克爾之間近 11% 的匯率貶值。現在，匯率每變化 100 美元，就會對我們的收入產生 700,000 美元的負面影響。由於最終，我們有以色列人，以色列僱員在以色列領土上開展項目，它也會下降並降低營業利潤率。因此，每 100 個基點或匯率變化 - 我們的營業利潤減少約 80,000 美元 - 75,000 美元至 80,000 美元。

So of course, we took that into consideration when we provided the guidance for 2023. If the average exchange rate in Israel between the dollar and the shekel was ILS 3.36 for 2022, we are currently at around ILS 3.6. So that has a significant impact over our revenues and so -- and by that, over our target by around $15 million to $16 million. If changes -- if rates will -- if the shekel will get stronger again, then it will be implicated in our revenues next year and we will update our guidance

因此，當然，我們在提供 2023 年指導時考慮到了這一點。如果 2022 年以色列美元兌謝克爾的平均匯率為 3.36 以色列新謝克爾，那麼我們目前的匯率約為 3.6 以色列新謝克爾。因此，這對我們的收入產生了重大影響，因此 - 並且超過我們的目標約 1500 萬至 1600 萬美元。如果發生變化——如果利率發生變化——如果謝克爾再次走強，那麼明年我們的收入將受到影響，我們將更新我們的指導方針

Okay. Great. That's super helpful. And then my last question, has there been any meaningful changes that you have observed in client behavior across any of the industry verticals you could call out?

好的。偉大的。這非常有幫助。然後是我的最後一個問題，在您可以提出的任何垂直行業中，您是否觀察到客戶行為發生了任何有意義的變化？

No. We don't really feel any change in the behavior of customers. We do hear concerns, but for now we didn't feel it.

沒有。我們真的感覺不到客戶行為有任何變化。我們確實聽到了擔憂，但目前我們還沒有感覺到。

(Operator Instructions) There are no further questions at this time. Mr. Bernstein, would you like to make your concluding statement?

（操作員說明）目前沒有其他問題。伯恩斯坦先生，您要作總結髮言嗎？

Yes. Thank you, everyone, for joining the call. I sure hope that we will bring you some more good news in the near future, and we'll update the revenues as well as the guidance. Because of the uncertainty in the market right now, we'd rather be conservative. And see you in the next quarterly call. Thank you.

是的。謝謝大家加入電話會議。我當然希望我們能在不久的將來為您帶來更多好消息，我們將更新收入和指導。由於目前市場的不確定性，我們寧願保守。下個季度電話會議見。謝謝。