ACM Research - Q3 2024
November 7, 2024
Transcript
Operator (participant)
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the ACM Research Fiscal Third Quarter 2024 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I'll turn the call over to Mr. Gary Dvorchak, Managing Director of the Blueshirt Group. Gary, please go ahead.
Gary Dvorchak (Managing Director)
Good day, everyone. Thank you for joining us to discuss Third Quarter 2024 results, which we released before the U.S. market opened today. The release is available on our website as well as from Newswire Services. There's also a supplemental slide deck posted in the investor section of our website that we'll reference during our prepared remarks. On the call with me today are our CEO, Dr. David Wang, our CFO, Mark McKechnie, and Lisa Fang, the CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially.
Those risks are described under risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinion only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain of the financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and an unrealized gain/loss in short-term investments. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website and on slide 13, and refer to slide 13. Let me now turn the call over to David Wang, who will begin with slide three. David.
David Wang (CEO)
Thanks, Gary. Hello, everyone, and welcome to ACM Research Third Quarter 2024 earnings conference call. Please turn to slide three. For the third quarter, revenue was $204 million, up 21%. Shipments were $261 million, up 23%. Profitability was good, with a gross margin of 51.6% and an operating margin of 27.5%. We ended the quarter with approximately $369 million of cash and time deposit, with a positive cash flow from operations for the quarter. Revenue for the first nine months of the year was $558.6 million, up 44%. Year-to-date shipments were $709.7 million, up 56%. We believe this growth is significant, demonstrates market share gain for ACM and contribution from new product cycles. Now, I will provide details on product. Please turn to slide four. Revenue from single-wafer cleaning, Tahoe, and semi-critical cleaning product grew 22% in Q3 and represented 79% of total revenue.
ACM offers a comprehensive top-to-bottom cleaning portfolio. We estimate the global total available market, or TAM, for the cleaning is close to $6 billion, and ACM products support more than 90% of all cleaning process steps in both memory and logic manufacturing. Our focus in Sulfuric Peroxide Mix, or SPM, has led to increased confidence toward our target for continued market share gain in cleaning. As a reminder, we estimate SPM processes represent about 25% of total front-end cleaning market, but so far it has been a small contributor to our business. During prior reports, we announced technical progress in our high-temperature SPM solution. Recall that only one other major cleaning tool supplier services the high-temperature market for SPM. During our first quarter call, I reported a technical breakthrough that could enable us to be the second player.
We are now in the latest stage of evaluation with a number of key customers, and we are committed to becoming the second supplier in the world supporting commercial high-temperature SPM cleaning. That's not all. Today, we issued a press release marking a major performance breakthrough for Tahoe, ACM's environmental solution for the middle and low-temperature SPM segment. The Ultra C Tahoe now achieves the performance of a standalone single-wafer cleaning tool on low to high-temperature SPM processes. The Tahoe platform's advanced cleaning capabilities have achieved average particle counts of less than six particles at a 26-nanometer size, meeting the stringent requirements for the advanced node manufacturing. The tool is also capable of removing 1x nanoparticles for the most advanced logic memory applications, with the addition of a smaller particle filtering system.
Tahoe's patented hybrid architecture is among the first in the industry to combine batch wafer process and a single-wafer cleaning chamber into the same SPM tool. The hybrid architecture delivers enhanced cleaning performance, high throughput, and process flexibility with up to 75% reduction in chemical consumption. ACM estimates cost savings of up to $500,000 per year from sulfuric acid alone, with the additional environment and cost benefits from reduced sulfuric acid and treatment and disposal. With the rise of AI to the forefront of the consumer mind, we expect an increased public attention on the environmental impact of semiconductor chip manufacturing. We believe ACM Ultra C Tahoe is well-positioned to help customers increase production of advanced AI chips, but with a reduced footprint on the environment. Put another way, Tahoe is good for customers and good for the planet.
We believe Ultra C Tahoe is another example of excellence from ACM's innovation and world-class R&D team, and demonstrates how innovation can achieve the information economy and protect the environment. We also announced today that the upgraded Ultra C Tahoe is now in mass production at several high-volume customer facilities in China and under evaluation at additional logic and memory customers. We expect to deliver more units by the end of the year. The market opportunity for Tahoe is quite large, as middle and low temperature is more than 80% of the SPM market and thus about 20% of the overall cleaning total tools market. We believe ACM's cleaning portfolio, including SAPS, TEBO, Tahoe, semi-critical, together with SPM and supercritical CO2 drying, puts ACM in world-class status.
We see good opportunity for continued market share gain in mainland China, and we are confident we have what it takes to secure major customers in international markets. Revenue from ECP, furnace, and other technology grew 36% in Q3 and represented 17% of total revenue. Momentum for our plating tool remains solid for both front-end and back-end tools. I'm pleased with the revenue performance. I also noted that shipments for the ECP furnace category grew by 67% year-to-date. Our furnace product cycle is also gaining traction with other memory and logic customers. Overall, we now anticipate having 17 furnace customers by the end of this year, up from nine at the end of last year. We expect contribution to revenue from furnace to accelerate in 2025.
Revenue from advanced packaging, which excludes ECP but includes service and spares, declined by 21% for Q3 and was up 3% year-to-date and represented 4% of revenue. This category includes a range of packaging tools, including coater, developer, scrubber, PR stripper, and wet etchers, and also service and spare parts, and we are exploring new products and technology to participate in the next generation of advanced packaging. We believe ACM is one of the only companies that offers a full set of wet tools, copper plating tools, and polish tools for advanced packaging. Year-to-date, growth of advanced packaging was low. We attribute this to slower growth for China-based packaging firms who are more exposed to broader end-market trends. We also know this category does not include our ECP tools for the advanced packaging. In early September, we announced purchase orders for four wafer-level packaging tools from U.S. customers and U.S.
R&D centers. These tools are scheduled for delivery in the first half of 2025. We are very optimistic about our fan-out panel-level packaging tools. We have recently announced three panel-level packaging tools, including vacuum cleaning tools for chiplets, the horizontal plating tool, and the bevel etch tool. These three new panel tools make a strong offer for ACM to address the advanced panel-level packaging market. We have been developing this technology for years, and I believe the market is now coming to us. Our technology is applicable to micron-order pitch, high-temperature or high-density packaging. This is especially relevant to AI packaging of GPU at high-density, high-bandwidth memory, HBM. We see a large global opportunity as several major American leaders are choosing panels for their AI chip packaging solutions. Finishing up on the product, we are making good progress with our track and the PECVD platforms.
Both of these products have innovation and differentiated platform design and allow for process flexibility and high throughput. We have a solid list of ongoing demonstrations and evaluations for both track and PECVD. We expect further progress for both PECVD and track over the next year, with revenue likely in late 2025 and a modest contribution in 2026 and beyond. Moving on to the customer, please turn to slide seven. In Q3, we saw broader demand for foundry logic power and memory. We had 10 customers for the period, representing 63% of the revenue. In China, we have a leading position in cleaning and target additional market share gains. We believe we have become a world-class multi-product company with a competitive product in the market for plating furnace, and we have a solid evaluation pipeline for track and PECVD. In the U.S., we continue to make steady progress.
I already mentioned the order for four WLP tools scheduled for delivery in 2025. In addition, activity with our major U.S. customers continues to progress. Both of our SAPS tools have already achieved supplier qualification, and we have moved to the production qualification process, and the backside of the bevel etch tool and with the memory end of this year is in the latest stage of supplier qualification. In Europe, we are also in the latest stage of qualification of Ultra C SAPS V cleaning tool, which we delivered to a major global semiconductor manufacturer in Q3 of 2023. In Korea, we remain engaged with the customer for a range of tools. To support growth, we made progress on our facility expansion in China and other regions. Please turn to slide eight.
In China, on October 20th, our subsidiary ACM Shanghai hosted an opening ceremony for the Lingang Production and R&D Center that gathered employees, customers, suppliers, and local officials. The first of two modern manufacturing floors, including state-of-the-art automation systems, has been in initial operation. During the third quarter, we also moved into the new ACM Shanghai headquarters. The facility is also in the Zhangjiang High-Tech Park and offers a great work environment for our engineering team. In the U.S., on October 1st, we completed the purchasing of our new Oregon facility, which includes 5,200 sq ft cleanroom. We plan to move in early next year. We plan to deliver several tools in 2025 to provide easy access to major customers for advanced tools evaluation. ACM is building a strong footprint in the U.S., including our own cleanroom, R&D lab, and the growing service team.
We see this as a great opportunity to participate in the market growth of U.S. semiconductors. I will now provide our outlook. Please turn to slide 10. We have raised our 2024 revenue outlook to be in the range of $725-$745 million versus the prior range of $695-$735 million. At the middle point, our revised outlook represents a 32% year-over-year growth compared to 28% previously. Shipment activity remains strong, and we continue to expect a full-year shipment growth rate to outpace the revenue growth rate. Our visibility for the remainder of the year is largely driven by our current order book and the qualification and customer acceptance of previously shipped evaluation tools to a range of customers.
From our perspective, we believe WFE spending in mainland China will remain at a high level as the country continues on its goal to match the production capacity with end-market consumption. We continue to focus on market share gain, new product, and increased localization to drive our growing objective in China market. Further, we are expanding our business to new customers in the U.S., Korea, Taiwan, Europe, and other Asian markets. Our long-term target is to generate half of our revenue from outside of China. Now, let me turn the call over to our CFO, Mark, who will reveal details of our third-quarter results. Mark.
Mark McKechnie (CFO)
Thank you, David. Good day, everyone. Please turn to slide 11. Unless I note otherwise, I refer to non-GAAP financial measures, which exclude stock-based compensation and unrealized gain/loss on short-term investments.
Reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. Also, unless otherwise noted, the following figures refer to the third quarter of 2024. Comparisons are with the third quarter of 2023. I'll now provide financial highlights. Revenue was $204.0 million, up 21%. Revenue for single wafer cleaning, Tahoe, and semi-critical cleaning was $161.0 million, up 21.6%. Revenue for ECP, front-end packaging, furnace, and other technologies was $34.6 million, up 35.6%. Revenue for advanced packaging, excluding ECP, services, and spares, was $8.4 million for the third quarter, down 21.0%. But for the first nine months of the year, it grew by 2.9%. Total shipments for the quarter were $261 million, up 23%. Gross margin was 51.6% vs 52.9%. This exceeded our long-term gross margin target of 40%-45%. For the full year, we expect our gross margins above the high end of the range.
This is due to year-to-date gross margins of about 50% and our expectation for gross margin in the upper end of our 40%-45% target range for Q4. We continue to expect gross margin to vary from period to period due to a variety of factors such as sales volume, product mix, and currency impacts. Operating expenses were $49.2 million, up from $45.3 million. R&D was $24.5 million vs $22.7 million. Sales and marketing was $13.2 million vs $14.3 million, and G&A was $11.6 million vs $8.4 million. For 2024, the full year, we plan for R&D in the 12%-13% range, sales and marketing in the 7%-8% range, and G&A in the 5%-6% range. Operating income was $56.1 million vs $43.8 million. Operating margin was 27.5% vs 26.0%. Realized gain from the sale of short-term investments was $0.2 million vs $0.7 million.
Recall that unrealized gain is not included in non-GAAP earnings. Income tax expense was $4 million vs $0.7 million. For the full year, we now plan for an effective tax rate on non-GAAP pre-tax income in the 12%-14% range. Net income attributable to ACM Research was $42.4 million vs $37.6 million. Net income per diluted share was $0.63 vs $0.57. Our non-GAAP net income excluded $11.9 million or $0.18 per share in stock-based compensation expense. Stock-based compensation expense declined sequentially in Q3, and due to the accelerated amortization for the ACM Shanghai Stock Option Grants, we expect SBC to decline again in the fourth quarter. I will now review the selected balance sheet and cash flow items. Cash, cash equivalents, restricted cash, and time deposits ended the third quarter at $369.1 million vs $366.8 million at the end of last quarter.
Inventory net was $628.7 million vs $602.9 million at the end of last quarter. This included raw materials and work in process of $329.8 million and finished goods inventory of $298.9 million. Finished goods inventory mainly includes first tools under evaluation that are customers. It also includes finished goods at ACM's facilities. Cash flow from operations was $11.9 million for the third quarter and $63.9 million for the first nine months of the year. Capital expenditures were $33.4 million for the third quarter, $73 million for the first nine months of the year. For the full year 2024, we expect to spend about $100 million in capital expenditures. That concludes our prepared remarks. Let's open the call for any questions that you may have. Operator, please go ahead.
Operator (participant)
Thank you. At this time, we will conduct the question-and-answer session.
As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Shi, Needham & Company. Your line is now open.
Charles Shi (Analyst)
Hi, good evening, David, Mark. Maybe the first question, I think I heard you talking about the wet clean product portfolio you have right now covers 90% of the overall worldwide wet clean market, which includes all kinds of devices. But I want to ask specifically on 3D NAND, what's that coverage percentage number look like? Are you able to cover 100% of all the 3D NAND applications?
David Wang (CEO)
Thank you. Okay, Charles, very good question. Well, actually, as I said, our typical process cleaning would cover almost 90%.
At this moment, I want to say, is the only single wafer phosphoric acid we have not put in the market yet. So basically, the rest of the tool, and we are either in R&D with the customer, or we're putting in production, right? Even including all this phosphoric acid for the via of the 3D NAND, and also high temperature of their SPM process, right? Most of the other TiN process. We're pretty fully engaged regarding this 3D NAND wet process, I call it the cleaning.
Charles Shi (Analyst)
Got it. Basically, there's still some gaps, but you're engaged. This comment would apply to 3D NAND as well.
David Wang (CEO)
Yeah, I should say probably by end of this year, we should be qualified all the process. Including we already put in production existing process, right? We have made a lot of progress.
Charles Shi (Analyst)
Thanks. This is very helpful.
The second question I have, I think you said China WFE, you think it will remain at the high level next year, but there's a two-part question. So number one, in terms of the change from this year's level, you'll remain at this year's already at a pretty high level, right? But I want to understand when you say remain at a high level, you're expecting flat to up, or what's the expected range here? That's one part. But the other part of the question, obviously, with the U.S. election that happened a couple of days ago there, obviously, it's pretty uncertain at this point where the trade policy of the new U.S. administration can go. But does that comment include any of the potential impact of any of the new tightening, or you are assuming all the international export control rules remain the same as of today?
David Wang (CEO)
Okay, let's come to the first question, right? I should say last full year, you can see the China WFE market growing quite steadily, right? And I would say probably the next few years, we still have seen a strong demand in China market. Why? There's still a lot of memory and also logic or foundry IGBT market. Still, there's still the building process for the fab. So really come to the next year, and it's hard to really give you a number. We're thinking about that, and it might be a little bit low, might be a little bit up. Really hard to really predict at this moment. But I want to say that they're strong still. Next few years, the building process will keep going, right? You're looking at all other foundry business. They have an upturn. Their utilization of the line is pretty heavy.
So I want to say we're still kind of positive, right, about growing in the China market. Second question.
Yeah. Any question for the first one before I answer your second question?
Charles Shi (Analyst)
Yeah, yeah, please. Please continue.
David Wang (CEO)
Okay. I mean, there's only one day, right? I mean, it's hard to predict. I mean, we're really whatever we have to follow the rule of all the countries, all the regulations come out new or changing. And basically, we're going to really support all production ramping of a case customer in the global.
Charles Shi (Analyst)
Thanks, David.
Operator (participant)
Thank you.
David Wang (CEO)
Thank you.
Operator (participant)
Our next question comes from the line of Mark Miller of The Benchmark Company. Your line is now open.
Mark Miller (Analyst)
Congratulations on the strong quarter. I'm just wondering, you've been consistently posting gross margins above your target range for this year.
Sounds like they were expecting the margins to come back down to the high end of the range in December quarter. Looking at your backlog, are we going to go back to your target range in 2025 for gross margins?
Mark McKechnie (CFO)
David, let me take that if you don't mind.
David Wang (CEO)
Yeah. Yeah, no, it's a good.
Mark McKechnie (CFO)
I appreciate it, Mark. And I think it did, yeah. Q3, another good quarter year to date, just above 50%. I mean, it really has to do with our product mix. And we have a lot of differentiation, and we've done well on that front. Foreign exchange has helped, I think. But longer term, and we're not going to give guidance, obviously, for next year, but in general, longer term, our target remains 40%-45%. And the mix can change given a broad product line.
Our backlog, the margins for that, without giving too much, I mean, they're pretty good. They're pretty healthy. And so we'll leave it at that, Mark. I think we're sticking to our 40%-45% target. Yeah.
Mark Miller (Analyst)
Okay. You announced the orders for a U.S. customer for delivery in the first half of next year. Any thoughts on where we can expect in terms of your sales outside of China? Is that going to be significantly increasing next year?
Mark McKechnie (CFO)
David, do you want to take that, or do you want me to hit on that?
Yeah. I mean, I can add on that.
David Wang (CEO)
Go ahead.
Mark McKechnie (CFO)
Yeah. Yeah, I think our business outside of China, obviously, it's a corporate focus. We believe that we've really scaled up our business in Mainland China. The model is scale it up near some of these larger customers, these activities that have been going on.
This is where the spending has been, and then expand that into the global markets. We're planning for good growth in China alone next year. International really depends on our customers and the evaluation status. It's kind of see where they are with their projects and what have you. We've got a few demos in later stage. A lot of focus from the company. I think this cleanroom in Oregon is a good commitment. I think when we give our 2025 outlook range, when we get back early next year, we'll probably include some, but right now, we don't want to say exactly how much mix. We'd expect some contribution next year from the non-China markets. Anything to add, David?
David Wang (CEO)
Yeah. Actually, we do see some customers' obvious interest in our cleaning and also a couple of cleaning tools.
And we see that a big potential, especially our SAPS and megasonic, and also this Tahoe tool, right, which can save in cost up to 75%. So we see a lot of opportunity for our differentiated product and getting into the global market, right? So we're expecting those are differentiated product will be more in a state of accelerating, right, getting to their customers outside China.
Charles Shi (Analyst)
Thank you.
Mark McKechnie (CFO)
I would add, Mark, just I mean, the activity level is good. I mean, I know we're all looking for orders, but we're engaged with our. We've got a pretty good-sized team, U.S., Europe, other areas. And so we're pretty heavily engaged with a number of other customers that we haven't spoken about here.
Charles Shi (Analyst)
All right. Thank you. Thank you.
David Wang (CEO)
Thank you, Miller.
Mark McKechnie (CFO)
Okay, Mark Miller.
Operator (participant)
As a reminder to ask a question, you'll need to press star one one. Our next question comes from the line of Suji Desilva of ROTH Capital Partners. Your line is now open.
Suji Desilva (Analyst)
Hi, David, Mark, Lisa. Congratulations on the progress here. Maybe following up on Mark's question there, the global customers that you expect to contribute in 2025, what geography do you think is the near-term opportunity across Europe, U.S., Korea, and Taiwan?
David Wang (CEO)
Yeah. It's hard to give you that precise right now. And obviously, we see the opportunity in the U.S. as we have a full advanced packaging tool. We got this year. We're shipping first off next year. We continue to see that opportunity. And also, we see there are and we already have three tools in one of the key logic customer's evaluation of the product on a different process step.
We also see other interests in Korea and actually Asia. So we're engaged with those customers. Next year, we see that the CapEx continue kind of going on with their projection or their plan. So we're really excited and engaged with this big guy outside China, really try to penetrate our differentiated product in the production line. As I said, a lot of our tools were offered to the market and get a yield improved and also get a big cost saving at the same time providing excellent particle removing performance. So we'll see that, as I said, our differentiated product get accelerating, right, for the market.
Suji Desilva (Analyst)
Okay. And then on the high-temperature SPM solutions, it sounds like you have technical advantage there. What are the specific specs that you can come in to compete with the incumbent there? Is it throughput or more efficient?
Any color there would be helpful.
David Wang (CEO)
Yeah. Well, actually, let me put it this way. Our SPM product, I have two, right? One is the high temperature SPM single wafer tool, which handles 170 degrees higher sulfuric acid, right? And then this tool, actually, we did a breakthrough, as I mentioned before. We can much control our chemical splash outside chamber. So therefore, we have a better cleaning environment. And with our cleaning chamber, we don't need much time spending on cleaning the chamber itself. So that will give you uptime better, right? And also give the good particle performance. Our second one is our Tahoe tool, right? They're actually targeting lower and middle level temperature of SPM. And this has been our flagship tool. And they're a combined batch and a single.
The real performance breakthrough this year is we have excellent particle removal efficiency, right? As I said, 26 nano particle adding about six particle only. So that's definitely equivalent to the single wafer process capability. So with the continual, I say, improving the filtering system, and this tool can be further used into the removing 1x nanometer particle, which is really demand, right, for all the advanced nodes, memory and DRAM, and also logic. So we see that both tools can work in the market in China, also outside China. As everybody in an SPM process, they're actually very headache about their waste treatment, right? Also handle this hazardous material in the fab environment. So that's really what giving good performance and also environmental, I call it protection saving for all the fab in the world.
So we see that there are bigger opportunities for our Tahoe tool.
Suji Desilva (Analyst)
Okay. Thank you, David. Thanks.
David Wang (CEO)
Thank you.
Operator (participant)
Thank you. Our next question comes from the line of Edison Lee of Jefferies. Your line is now open.
Edison Lee (Analyst)
Hey, hi, David and Mark. Congrats on the great results in 3Q. I just have a quick question because you did mention that the advanced packaging market in China is slowing down. And I think maybe you can actually help us understand whether that should be a leading indicator for front-end spending in China, whether we should be worried about front-end spending in China as a result of the slowdown in advanced packaging in China. So yeah, how should we think about it?
David Wang (CEO)
Yeah. Well, I want to say that is really looking last year, right, and also the first half of this year, it's kind of a slow.
However, we see that a gradual pickup, right, in Q3, Q4. And we do have other order coming. So you look in other markets in the foundry business, they pick up. I think from now on, there are gradual pickup on this advanced packaging WFE spending. So we are positive, I should say, Q4 and the next year. But I'm talking past, right? Our revenue is really represented last four months and last year or the tool we're shipping. So that's our view about this advanced packaging status.
Edison Lee (Analyst)
Do you think that the Chinese packaging companies are actually doing something different versus the past? Are they moving into HBM, or are they moving into more coarse type of packaging that requires different equipment? What is happening there?
David Wang (CEO)
Well, I mean, obviously, there's a quite different company, right? And there's a certain company moving to this high-density packaging.
And obviously, also we see the company also moving the panel too. So it's a lot of people working on this advanced packaging, I call it technology, and also their process development.
Edison Lee (Analyst)
Okay. That's great. Thanks a lot, David.
David Wang (CEO)
Thanks, Edison. Yeah.
Operator (participant)
Thank you. As a reminder, to ask a question, you'll need to press star one one. One moment, please. Thank you. Seeing no more questions in the queue, let me turn the call back to David Wang for closing remarks.
David Wang (CEO)
Okay. Thank you, operator. And thank you all for participating on today's call and for your support. Before we close, Gary is going to mention our upcoming investor relation event. Gary, please.
Gary Dvorchak (Managing Director)
Thanks, David.
David Wang (CEO)
Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. Excuse me.
On November 19th, we will present at Craig-Hallum Capital's 15th Annual Alpha Select Conference in New York. On November 20th, we will present at the Roth 13th Annual Technology Conference, also in New York. And on December 4th, we'll present at the UBS Global Technology and AI Conference in Scottsdale, Arizona. Finally, on December 17th, we'll present at the 13th Annual NYC Summit in New York. Attendance at the conferences is by invitation only. For interested investors, please contact your respective sales representative to register and schedule one-on-one meetings with the management team. This concludes our call. You may all now disconnect and have a good day.