Vicor Corp (VICR) 2006 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to your Vicor 2006 fourth quarter earnings conference call. My name is Jeanne. I will be your conference call coordinator today. (OPERATOR INSTRUCTIONS). At this time I will turn the call over to host, Mr. Mark Glazer, Chief Financial Officer. Sir, please proceed.

Good afternoon and welcome to Vicor's quarterly conference call. I am Mark Glazer, Chief Financial Officer, and with me is our CEO, Patrizio Vinciarelli. Before we begin, we would like to remind all of you that today's conference call is being recorded and is the copyrighted property of Vicor Corporation. Any rebroadcast, reproduction or other transmission of this conference call in whole or in part, without the prior written consent of Vicor, is prohibited.

We would also like to remind you that various remarks that we make during this call about future expectations, trends, plans and prospects for the Company and its business constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements merely reflect our current beliefs, expectations, and estimates, which we share with you during our quarterly conference call. Actual results may differ materially as a result of risks and uncertainties, including those discussed in our quarterly and annual reports filed with the SEC.

A replay of this conference call will be available beginning shortly upon its conclusion through March 8, 2007 by calling 888-286-8010 and using the pass code 53235272. In addition, a webcast replay of the conference call will be available on the Investor Relations section of the Company's website at www.vicorpower.com\irwebcast beginning shortly upon its conclusion.

However, the information we provide during this call is accurate only as of the date of this call. We undertake no obligation to update any of the statements made during this call. And you should not rely upon them after the conclusion of this call.

We're now ready to begin the Q&A portion of our conference. I would ask that you limit yourselves to up to two questions at a time, so that everyone gets the chance to ask his or her question. You may of course get back in the queue to ask additional questions.

Jeanne, we will now the first question.

(OPERATOR INSTRUCTIONS). Steve Smigie, Raymond James.

I was hoping you could talk a little bit about the nature of the lawsuit that you settled with Ericsson here. And just hope you can help me understand better. You said you have settled, but you are also appealing it. I was just hoping you could help me understand that. And then finally, are there other potential people that could sue you for the same issue?

I can't really comment on the nature of the lawsuit. There is still, as indicated in the press release, some pending litigation. So I can just point you to the press release for the complete statement that we can make on this matter.

Is it anything -- did you say it was related to technology? I assume it is some sort of technology as opposed to something else.

I really can't comment.

Is it possible to clarify on the issue of the appeal, but also settling?

As the press release indicates, this involves different parties with respect to the appeal.

I'll get back in the queue. Thanks.

(OPERATOR INSTRUCTIONS). Steve Smigie.

Great. You indicated that the book to bill was about 0.94 for the quarter. Would that be fair to sort of be thinking revenues sequentially might be down 3, 4%, something like that?

Not necessarily. As suggested in the press release, we are anticipating an up year. I can't make a specific comment on a quarter by quarter basis, but we are expecting a growth rate slightly in excess of the one we experienced last year.

I think you mentioned also in the press release that the gross margin was -- it about 41% in the quarter, but that it was impacted by sort of some onetime issues, so it might be higher as we get into Q1. You didn't mention the part about Q1, but I am asking is it would be then sort of recovering somewhat in Q1?

Yes, I think you can -- you may defer from the statement in the press release that there were a number of factors, all of which in effect went in the wrong direction within the fourth quarter, and added up to a significant impact on the margin that we don't see recurring.

You did mention that you've got the better growth rate that you're expecting for '07. And presumably utilization levels would continue to get higher, so it seems like it would make sense that the gross margin might continue to improve throughout the year. And then in combination with that, you probably have V-I Chip coming at some point -- in and of itself would start to get relatively higher margins, so therefore, again, gross margin would continue to move up throughout the year. Does that seem reasonable?

Generally speaking, we should see some improvement on margin as the year progresses. I think one of the issues in the fourth quarter with respect to one of the divisions was that they were underutilized, and that contributed one of factors in the margin setback for the quarter.

So generally speaking we are very much dependent on capacity utilization. There's a law of leverage with respect to incremental revenues. And it is fair to expect that as revenues go up and we achieve better capacity utilization, we will enjoy some benefit in terms of improved -- the use cost and improved margins.

You are at a point -- or at what point does the gross margin from V-I Chip start to benefit you?

The issue with V-I Chip is one of revenues, first of all. It is an operation with a significant fixed cost. It is a cost that have been carried by the profitability -- high yield profitability of the Brick Business Unit, which by the way has done very well last year, and is expected to continue to do well this year.

In order to see an impact from V-I Chips we need to get out into the second half of this year into next year as volumes of V-I Chips increase to a level that the revenue contribution from V-I Chip begins to be appreciable as a percentage of total revenues.

Okay. I'll get back in the queue.

Robert Katz, Senvest.

I have a question about the litigation or the lawsuit, and the settlement as well. I am trying to figure out are there any other customers that would run into the same problem as Ericsson, or was this just an Ericsson specific lawsuit?

I guess all I can tell you with respect to this is I will point you to our past Qs

10-Q.

And I think you can find all the information in there.

Okay. Maybe we will take it off-line after that. But it seems like from our perspective it sounds like you had the settlement before the call. It seems like it is material that this was out there. And it is sort of a surprise that is the first time we're hearing about it on an earnings call.

This settlement just happened within the last few days. It is not even documented on paper yet, as the press release suggests.

I think from what I'm reading -- I just want to make sure I understand this one. What I'm reading into the press release is that your suppliers could be equally responsible, or there could be damages that could be assessed on to your suppliers -- component suppliers?

I think I can read you from the press release. And what that says is that, following an adverse ruling by the court in January in connection with -- that was on January 22 -- in connection with the settlement between Ericsson and codefendants, Exar and Rohm, we in the context of court mandated mediation chose to settle. We have not settled with respect to our right to appeal a decision relating to the defendants, as I mentioned, in the press release.

You are saying that in the 10-Q we will be able to find out what this pertains to, by reading the 10-Q?

I believe so, yes.

Putting that aside, looking at the V-I Chip, there has been a lot of promise in this productline, and it has sort of been off to a very slow start from when it was first talked about. What makes you think that 2007 will finally see programs go into production? It sounded like 2006 had a similar promise. And I guess programs were put on hold. Has there been any changes in your customers' design activity that would lead you to believe that this year it is finally going to happen?

All recent changes have been positive. As you know, last year we suffered a setback because the largest program, an early program with respect to V-I Chips, was delayed, and then delayed again. And this was due to factors unrelated to us. That program is coming to production this year. The other programs have actually geared up ahead of that. So we're making good progress with V-I Chips. We are experiencing very significant bookings and shipment growth rates quarter to quarter. With respect to V-I Chip, I'm very comfortable with this year being a significant up year for V-I Chip.

What type of programs are of this -- consumer electronics, right? Just to review the type of programs that this is being designed into. And can you just give us a ballpark of dollar content per typical device or --?

Some of the early programs related to high-end [EVP] applications.

Like Blu-ray DVD type stuff?

Much higher end than that. And that is really all I can tell you about.

Any settop box applications?

I really can't comment with respect to specific applications. But going back to the general substance of progress with respect to V-I Chips, looking at it in terms of product releases, we have had significant activity in terms of releasing more products that enable more opportunities in the marketplace. We are getting more and more traction with a growing spectrum of customers in different end markets. We have a little bit of a head start, as I mentioned earlier, in high-end EVP type of applications, but there are a variety of other market opportunities that are progressing along.

With respect to the issue of how long it takes to begin to see the tangible results of this effort, as we discussed in the past, unfortunately the gestation period associated with technology of this kind, which is breakthrough technology, often requiring customers to go beyond the usual in terms of taking full advantage of the capability of the technology. The gestation periods are significant.

As an example, the programs that are now ramping up have been the subject of [authentic activity] for over a couple of years. That is not always the case. I think as things progress along the cycle time from interest on the part of a customer to actual ramping volume can become shorter. But it would be [into a phase] where the gestation period is being unusually long.

What is driving the customer to adopt this technology in terms of performance, cost, the underlying system? What type of cost reductions can you achieve or performance enhancements can you achieve with your product -- with the V-I Chip over just sort of status quo what is being done now in the market?

With reference to, as an example, a possible consumer electronics application, we can achieve performance advances measured for instance in terms of efficiency of as much as -- the improvement in efficiency from the low 80s to close to 90%, which results in cutting the amount of heat almost in half within the power system, at a cost card that is essentially competitive with the commodity alternative. So the advantages are notable in terms of density, efficiency, speed, a variety of performance attributes. And we have demonstrated that these kinds of performance metrics can be achieved with very competitive costs.

So this sounds like it will be a good application -- a laptop would be a good application for this type of product?

I think over time we're going to see V-I Chips in a broad range of applications in consumer electronics, transportation, a variety of data processing applications, communications applications, a long list of significant --.

Would it also go into -- I guess handheld type applications?

No.

Or is it more corded, it is more online?

The power capability of the chip, or the initial chips, is high enough that it is really -- the technology at this point is well-suited for relatively high-power applications.

High power. So is not battery driven.

Our initial chip is what we call a [full Vic], which is essentially one-quarter of a cubic inch device. It was initially capable of 240 watts. We now have in the same package a capability in excess of 300 watts. That is an increment of power that is well beyond a handheld device. We're coming out with smaller chips, and there's going to be even smaller ones in the future. But it will be quite some time before the technology is a good fit in very low power handheld type of applications.

In the computing world it will be more on the server side of things?

That would be one prime example.

[John Dillon].

It is John Dillon. I think I heard you say that the significant order, the one that was an early one that you had talked about, it slipped a couple of times. It sounded like you said that they are going to production this year, is that correct?

Yes.

And when do you expect you would see some bookings for those units?

We are seeing some bookings already, and we have actually have another program that is coming in ahead of that.

So you are actually -- now are these bookings part of the book to bill ratio that we saw today?

Yes. But bear in mind, as noted in the press release, that the base is low. So even growth rates quarter to quarter in very high double digits do not translate for the short-term into a significant impact to the book to bill. As suggested in the press release, it is only in 2008 next year that the level of activity with V-I Chip gets to a point to where it makes a more major impact in terms of topline growth.

Is that a slip from what we heard before?

There was a slip last year. We had, as reported last year, two setbacks where a major program was delayed twice by about six months.

And that is the one you just talked about?

That is correct.

I thought on the last conference call we were expecting some significant revenue from the new product in the second half this year.

Yes. And in fact, we are expecting a major step up this quarter, and then again a major step up next quarter. And we are already well-booked with respect to those.

What do you consider significant?

Well, in terms of growth rate -- the V-I Chip bookings or in terms of percentage contribution to the total revenues?

Yes, in a dollar or a percentage to the total revenues, yes, either one. What would you consider significant?

When you get to, or past, a 10% contribution to the overall topline, it begins to make an official impact, because as an element of the tall picture with a very significant quarter to quarter growth rate, as the percentage of the whole begins to be at that level, it begins to affect the overall book to bill officially.

The second half of this year we should see significant -- a significant percentage of V-I Chips in bookings?

Yes. We are looking this year at essentially a fourfold increase in V-I Chip revenues.

Excellent. But it is a low base, like you said.

Yes.

Now I think again on the last conference call, or it might have been the conference call before, when we had book to bill ratio that was under 1, I thought I heard, I may have been mistaken, that there were two orders [2 gen], two orders that were fairly significant that had slipped out.

Yes, we continue to see a little bit of that. Now some of that has come in. But there is another significant order that kind of keeps slipping. It is not going away, that is what I'm told. But it due to come in in the fourth quarter, and now is planned for the first quarter. But we're not yet [there yet].

The other question I had is I have actually looked inside servers, and I have seen exactly what you have described. You have got a bunch of capacitors there. Everyone in the server industry is talking about size, weight and power. They are talking about heat. Everyone is talking about how much electricity these things use. Are the server manufactures just lined up at your door, or are there just a couple that you are dealing with now?

No matter how great the product is, I have yet to see customers lining up at the door. But let's put it this way. I think we are resonating in terms of a variety of technological advances. You're putting your finger on one of them. There has been a lot of press about the heat management of server farms and so on and so forth. There are significant challenges with respect to powering these kinds of products, and V-I Chip technology and V-I Chips have a lot to offer with respect to that. But that is just one example of an opportunity for V-I Chips.

Is there any lower hanging fruit that you could get? Because I know there is a demand for your product, it just seems like it is taking a little bit longer to become significant than I had thought. Is it because you truly are prioritizing and just going after the big opportunities? Can you comment on that at all?

We invested early on a major part of our total effort, our total bandwidth, on the relatively few major accounts in a few different markets. And that is an effort that has absorbed again a significant level of resources. As with everything, it has its own trade-offs. There are positives to it. But there are also negatives in that the bandwidth applied to these particular programs could not be applied to other programs.

We are now in a scale up mode. Throughout the enterprise -- throughout V-I Chip we have hired more people in the front end of the business, in sales and marketing, applications engineering. And we are getting better at getting products done, at least to manufacturing so the pace of activity is increasing.

What about the AC to DC, the offline applications? We had some excitement about that with a press release a couple of years ago. But are you starting to see any significant activity with that?

Yes, we are very focused on some key opportunities in flat panel displays in particular. And those are all AC to DC type applications.

I'm sorry. What type of applications did you say that was?

Flat-panel displays.

Oh, flat-panel displays. Okay. Great. I would imagine one of those could be -- I guess it could top millions of units, couldn't they?

We like to be old-fashioned with respect to these, but as suggested in the past, we believe that the technology has a lot to offer, both at the point of load, meaning DC to DC converter type applications, powering a variety of processors, or other types of semiconductor devices at voltages as low as 1 volt or less.

And at the other end of the spectrum, powering systems that require relatively high voltages of high power levels, or all the way between. And the power source can be DC or AC. The attributes of the technology are such that it is very flexible in terms of applicability. Fundamentally the same building blocks, depending on how they are configured, how they are arranged as elements of a power system can perform a variety of functions to address a variety of application requirements.

Dick Feldman, Monarch Capital.

I have got a couple of questions. First, a relatively mundane one. What would be the anticipated tax rate for this year?

We have not looked into that as yet. So by the end of the first quarter we will have a better idea.

Getting back to the V-I Chips, have any customers, early customers, expanded their usage and programs with the V-I Chip?

Yes.

I would imagine since that also is from a very small base, however.

Yes. But we are seeing a pattern with our largest customer in particular of expanding from one program to another program.

Is that a server customer?

Yes.

You mentioned having some initial product out of Picor this year. Could you elaborate on that?

I'm not going to tell you what the products are. I will say that they are very exciting products. Picor has made the transition from being focused primarily on what you might call a support role in terms of delivering the control chips within V-I Chips to now establishing a brand name through Picor products that leverages the technology in a variety of ways. And the first significant examples of this are going to be rolling out starting with the end of the second quarter and later in the year, and into next year.

Have these products at all been sampled yet? Or when you say rolled out, you mean you'll start getting to the point where they will be sampled at the end of the second quarter?

All that I can tell you with respect to this is what I told you, that there is going to be product introductions based on existing forecasts, starting with the end of the second quarter, and then more significant introductions later in the year.

You have made it clear that for V-I that there are a lot of fixed costs involved in your manufacturing operations. I wonder if we could focus on the gross margin, the incremental margin, and talk about what is your experience so far with the incremental margins on V-I Chips, and how you see that evolving over time?

To your point, we have a high essentially fixed cost structure. And the key to making money on the V-I Chips is to absorb that fixed cost structure through growing volumes. That is I would say the first key.

The second key is to continue to reduce the maternal cost base. The cost of the product is almost entirely materials -- the assemblies, almost completely automated, is very low level content. Our yields are very, very high. So the cost card basically comes down to a more (indiscernible) fixed costs, first of all. And that is the first order of business.

The second order of business, continue to reduce the material cost as that in effect amounts to the cost of the product. As suggested earlier, we have already demonstrated in the context of addressing with unique developments the opportunity for very high volume requirements, that the technology properly applied and tailored to a very unique requirement, is capable of delivering a solution with much higher performance at a competitive cost.

So we very confident with respect to the fact that the cost metrics of V-I Chips are going to be not standing in the way of great opportunities for V-I Chips. But our first challenge, and one that is being addressed, on which we are beginning to make significant progress, is to fill the factory with demand. Because we put significant capacity in place in anticipation of business opportunities, which as we discussed earlier, got delayed a couple of times by essentially a year overall. And as we again fill that capacity we can then begin to see some contribution to margins and profitability.

At what rate at capacity utilization do you need to get the V-I Chip to breakeven?

I don't want to get pinned down with respect in that. I think you know generally speaking that our burn rate, the level investment with respect to our new technology developments, and those include not just V-I Chip, but Picor is a significant part of that. That is the $25 million to $30 million per year range. So that sets the scale for the topline that begins to make a difference with respect to margins and profitability opportunities.

How much of that $25 million to $30 million burden -- do you see that staying constant, growing, or would it go down as these things start to ramp up, as you have to spend less development dollars?

We see it first start the constant, meaning no significant increase, no significant decrease. It may fluctuate up or down a little bit, but that would be a relatively small effect. Our mission on that front is to do more and more to improve the efficiency of the enterprise in terms of completing new products, getting more capabilities for designing with essentially constant expenditure, and essentially constant the application of resources.

One last question. On the prior call you mentioned a desire to introduce the V-I Chips to some of your more traditional customers who have been Brick customers. How has that gone?

I held in my hand earlier today a first significant example of that.

Congratulations.

A chip converted into a Brick with significantly increased power capability and some very exciting prospects. This is something we are very focused on. I think we have a winning concept, something that is going to begin to impact activities at-large over the next few months.

Does this use a different salesforce?

Well, I think there are opportunities that involve both the V-I Chip organization and the big business unit. And there are several channels with different areas of focus, both in terms of types of customers, types of applications and so on and so forth.

Ron Opel, Moors & Cabot.

You're thinking with respect to capital expenditures for the current year for 2007 is it along the lines of a continuation of the recent quarterly pattern of a little over $1 million a quarter?

Our current expectation, this is still fluid, is for numbers somewhere between $6 million and $10 million for the year.

Any license revenue in the quarter?

Not yet.

And you've spoken in the past about an inflection point with respect to change in the growth rate of overall Company revenues. Do you currently still expect such an inflection point, and are you now expecting that it might occur in 2008?

I think we're going to see better progress this year than last year. Frankly, last year we had bigger expectations than actually materialized. As of this time last year we were anticipating greater strength than actually materialized. As we discussed last year, there was some weaknesses that set in towards the end of the second quarter, the middle of the year. And it was still at play in the second half of the year. So the year as a whole fell short of expectations.

I think that early last year our salesforce, particularly within the Brick Business Unit, was coming off a couple of very strong book to bill quarters, and had very, very high expectations. It turned out late in the year to have been somewhat overly optimistic. The forecast for this year probably reflects a different mindset, but it is coming relatively strong at the growth level for the Brick business that is a little bit ahead of what was actually done for last year.

So I think that bodes well for the base business. And as we can begin to layer in significant contributions from V-I Chip this year into next year, where it becomes more significant, and then as we give out a couple more years, look forward to the beginning of a type of contribution of some significance.

I think those are all the factors, coupled with being able to leverage V-I Chip technology with a V-I Chip inside the (indiscernible) in Brick-like products that bring about the inflection point opportunity that you were referring to.

Good. Just one more, if I may. Regarding the litigation, since it was filed, I have the 10-Q in front of me filed in May of 2004. I take it that there is no connection here with between this litigation and V-I Chip products?

No, it has got nothing to do with V-I Chips.

Steve Smigie, Raymond James.

If I'm looking at this right, SG&A ticked up a little bit in the quarter, I would assume that is litigation expense. And I was just curious what that might look like going into Q1, if the -- that SG&A will back off a little bit on a dollar basis? And also -- I know you gave the indication of the margin improvement throughout the year, but I am curious if you could just give some guidance on what SG&A and R&D expenses would look like throughout the course of the year as well?

We had a number of items contributing to a significant increase in the SG&A line in the fourth quarter. To your point, the level of litigation expenses was particularly high. Another notable event is that we went into our intellectual property portfolio and pruned its tree to some extent, with respect to foreign patents in some countries. For some of the older patents, we made the decision that it wasn't cost-effective to maintain them, so we wrote off some of those assets. There was significant cost associated with that. There was some other unique elements within the fourth quarter, some tradeshows and things like that that were all part of a significant SG&A line.

Any sort of thoughts on R&D trend throughout '07?

As suggested earlier, I think the level of R&D investment, which is primarily related to V-I Chip and [FICO] type of activities and Brick (indiscernible) is leveraging V-I Chip technology. There should be pretty steady, maybe up a little, down a little, but fundamentally flat over the next year.

You also I think mentioned in the press release you would potentially review your dividend policy. I was hoping you could clarify what that means? Would one potential scenario be that you cut back on it because of the lawsuit issue here, the potential payment? And similarly would that also affect the stock buyback program?

I don't believe any -- either one of these practices is going to fundamentally change. I think the note with respect to dividend is exactly the same note that was in the prior quarter release. It is just something that the Board of Directors reviews on a six-month basis. And likewise, we have a buyback program in place, and we may expand on that, depending on circumstances.

Is there a particular reason there was no buyback this quarter?

Well, we were not in the market during the quarter. Beyond that I really can't say.

John Dillon.

Do you expect any licensing revenue this quarter?

No, not as of this moment.

What about -- when do you expect it to start then?

Well, we are very active on the licensing front. We are active in a variety of ways. I was most of today in negotiations with one potential licensee. We have a couple of irons on the fire as we speak on that front. So we see opportunity in a number of different directions in different end markets, with different kinds of partners in very complimentary ways.

I recognize that this -- as the revenue opportunity with V-I Chip taken longer than we had anticipated, but it is still an area that represents as much opportunity as we had projected to begin with.

In the last conference call I think you said that there were several licensing agreements in final negotiations. Did any of those get closed, or are those the ones you are currently working on?

We're working on a couple, as we speak.

What about bookings so far for this quarter? Have they picked up?

They are slightly ahead of last quarter. It is too early to say within the quarter, but they are somewhat better than last quarter.

Is there -- one question I have is you have talked this some, but do you have the front end resources as far as the salesforce and the FAUs to go after the new opportunities and still focus on the Brick? Or is some of the focus going off the Brick business, and that's why you're seeing your Brick business down?

We have not seen the Brick business down. And to be clear the Brick business last year did very well, and is forecasted to do well this year. As I mentioned a moment ago, there was perhaps a little bit of excess optimism at the beginning of the year. And then the economic environment, at least in some of our key markets, deteriorated starting in the second quarter.

So the early projections did not materialize. But it was still a pretty good year for a line that is 20, 25 years old. It is a productline that we believe has still got a lot of opportunity. As we discussed earlier, there is a whole new range of capabilities that are going to begin to get enabled, leveraging the V-I Chip inside strategy. And that will be marketed and sold through the Brick Business Unit, which has unique capabilities within its traditional markets, traditional customers, traditional geographies. It is very complimentary to the key account strategy that is at the heart of V-I Chip sales and marketing activities. These are a very complimentary effort. The synergy is (indiscernible) interference, and we're looking forward to making more out of that as the next few years come around.

You feel very comfortable with the Brick business and still see it is a growing business?

We see what -- I'm often tempted to call legacy business, which is big business people don't like me to call it that way, but it is obviously business based on at this point on very old technology. Still doing quite well. Still growing. And again, the Brick paradigm we believe can be greatly expanded and reenergized by leveraging the attributes of V-I Chip technology and V-I Chip components. So we see a significant opportunity for what we have been calling the Brick business, (indiscernible) business going forward.

Great. I have seen you have had a couple of new products too in the last quarter, so that sounds good.

We will take one more question.

[Philip Chen], [Ardour Capital Investments].

As you look out to 2007, what do you see as the biggest risk to your business? And how do you plan to mitigate those risks?

I think it is execution with respect to the products -- the market opportunities. I think we have gotten through the development, the R&D phase, both in terms of the design of the products, the key process and equipment obstacles. And our key challenge at this point is to get increased traction in the marketplace.

We think we have very powerful engine with a lot of horsepower. And the key to execution is going to be to convert that into motive power and power that builds topline. As the topline builds, the characteristics of our business are such that the bottom line benefits with significant leverage. And that is what 2007, 2008 are going to be all about.

As you look towards growing the topline, what is your demand creation strategy, and ultimately your marketing strategy?

It is focused on pursuing the right kinds of opportunities with the right tools, with the right infrastructure, with the right people, whether it is, again, sales and marketing, executives, or application engineering talent. And backing it up in the [junior] organization and in my [fashioning] operations throughout the enterprise with what people in the front end of the business need in order to convert customers over to these new kinds of power system solutions.

Thank you for participating. We look forward to speaking with you again near the end of April when we discuss our Q1.

Thank you.