Welcome to Nordic Semiconductor Second Quarter 2018 Numbers Presentation. Today, do a quick business update. Paul Elsa, as usual, do the financials, and then I go back and do a outlook for our business for the rest of the year. This was a record quarter, comes to revenue. We had a total revenue of $71,200,000 And this is new all time high.
It is a 21.3% growth year on year. We grew 45.2 year on year in Bluetooth. Strong growth in Bluetooth and obviously Bluetooth is what's bringing Nordic forward currently. We see a strong revenue from both consumer and non consumer. And we've been predominantly, if you look back a couple of years, consumer oriented Now we see that the nonconsumer business is picking up.
When it comes to profitability, we are now seeing that we are on track to meet We had $10,000,000 EBITDA. Good is a 25% up from last year compared quarter to quarter. And our gross margin were at 49 It is a bit higher than maybe some of our analysts expected, but we had a good mix of favorable products and customers last quarter. And the important thing is that we still keep a strong cost discipline. And in the same time, we are building up our organization to become even stronger.
So it's been a good quarter to all parameters, we believe. So revenue, 71.2, Bluetooth revenue, 52,300,000 solid number, proprietary, it basically are very seasonal and based on a couple of customers, so it varies quarter to quarter. We don't have a broad customer base that's contributing to volume in Proprietary. Gross margin at 49 is 2.3percentpoints, up from last year, the same quarter. And still up from previous quarter.
And as I said, a very strong EBITDA of 25.2 growth quarter on quarter. So if you add up what first half did for Nordic, we ended at $131,300,000 is in the high end of our guidance range. Bluetooth, we said 40 to 50. We ended 50.2% growth for the 1st half. Gross margin were also up in the higher end of what we did forecast.
Obviously Bluetooth drives the growth. And looking at this foil here, you will see that it constitutes of 73% of our revenue is now originating from Bluetooth. We've also been working on diversifying our revenue. To spread over more customers. If you look to the same quarter last year, we've been going from 40% on top 10% to 31%.
Top 10. I think this picture will change a bit going forward, and we can discuss the reasons a little bit later. Customer base, we had a 25% increase in customers. Year to year, 25% growth in customers. And here you see how it's split between consumer and nonconsumer revenue.
We are, as you see here, above 43% revenue from nonconsumer. This is completely different from what is look if you look 2 years, 3 years back. And we give a lot of appraisal to non consumer customers because it's a more stable customer base and more predictable customer base. And thirdly, but not least significant. It is also a longer life than usually on products for non consumers.
If we split it over revenue then into the market, Consumer Electronics, 28.2 percent $28,200,000 is up 19% year on year and is also up 19.6% quarter on quarter. This is correct numbers. It just happened to be equal. Variables, $11,900,000, up 36.6 from year to year, 16.3 quarter on quarter. Retail and Building is down 17.8% year on year, was up 12.6 quarter on quarter.
We had a large customer that sort of is missing compared to last year. It's a product that was seasonal. And we see that despite that it was lower year on year, we had a strong growth quarter on quarter, which is important for us. Healthcare looks strong when we look year on year, 115 percent up quarter on quarter 14%. But that's again a sector or a market, which we're going to see getting larger as we are progressing quarter over quarter.
And then we have a big lump of others, which grew very strong. So there you see, the diversification of our business is strong. I usually show some products. Here we see some new Nordic power products that we have announced this quarter. This is only press release product.
We have some other ones in there, which unfortunately, we can't show you. Vixa Tech is our router for Smart Home. Shen Du variables, you saw, variable is growing. We get new customers in wearables. Smart thermostat for smart home.
I think that's a segment. You're going to see Nordic getting stronger in. Smart home is using different protocols, lower it can support and the protocol. This is alluded, by the way. Swiss Connect, they're making a smartwatch platform.
So if anyone here want to build a smartwatch, you can basically buy the concept from Swissconnect and put your own branding, your own plastic, whatever you want to do and have your own watch. And our first design that we have showed publicly here is with Samsung, a smart door lock. And anyone here heard about the IoT lab we have in the U. S. Now we launched our product, NRF Connect for cloud.
Basically, we host the cloud service at Amazon. And we make our own gateways, both for iOS and Android. Currently support all our Bluetooth business, all our Bluetooth parts and will, very soon, support all our LTE products. This is our early adopter of new technology, And we are proud to announce that we do have something that works straight out of the box. If you guys want 1, go to the website and test it.
It's cool. We had a private placements on weeks back. We are not lazy so we sit now and putting this private placement to work. We expand our test facilities in Norway and Finland. We do characterization and product test development and why do we do this?
That's the most important thing. We were short in time to high volume. We were short in time to high yield. By implementing these facilities, we achieve so. We're doing a FY lab Why do we do this?
We have new Tier 1 customers that have even higher expectation from the vendors we fulfill those expectations. And this will also help us shorten time to volume production. On the right hand side here, we have a cellular test lab. Importantly is to accelerate compliance and certification approvals. Basically, now we can do that in our own lab.
Soon as we have this equipment in, It makes time to market faster and it's easier with different regional rollouts because we already done the test. And obviously, it's also ensures us a reliable and a robust select connectivity. So this is the So now I hand over to Paul, which go through the financials.
Thank you. Thank you, Santoya. I will now go through the financials for the quarter. And as normal, I will start with the operating model performance. As you all know, we are continuing to invest in the company to secure growth in the future and to capture the growth opportunities we have today.
But as you see on the bottom, we do see some levers coming in due to higher revenue in the quarter. These numbers are not adjusted for capitalization, so they're not the cash costs. I'll come back to them later. So as Santul mentioned, we had a good 21% growth in revenue over the quarter compared to the same period last year. It's 11 percentage point, 10% reports, in increase.
Gross margin of 49%, which is down the higher end of our guidance. We saw a bottom, around this time last year with 46.7 percent. So the 2.3 percentage points increase comes as yield improvements mainly on the and 52. Back in 2007, we had very good demand for the 52. However, the the the yield was not been running.
So so we served our customers. But today, the yield is more on track. And then we have also depleted all the old wafers we had on this product. So we will see improvements there. Total OpEx for the period is 35 percent of revenue, which is sort of a slight increase from periods, periods as we are continuing to invest.
The underlying number this quarter is, $34,900,000, up from 19.4 last year. You will here see that there is a shift between costs per revenue in short range versus the cellular IoT This relates more to how we capitalize the the R and D internally developed R and D on our projects. Previously, it was mainly the NR 52 high end products that were in the commercialization phase. Now these products are up and running in mass production, So we've stopped capitalizing on them. However, on the cellular IoT, they are NRS 91.
We are now in the end of the commercialization phase. So we've increased capitalization there. So on the end of 'ninety one, we've capitalized $3,400,000 this year versus, very little a year ago. That's why you see the shift in the R and D. However, if I look at the underlying spending for, the cellular IoT, it was $6,800,000 compared to just over 6,000,000 last month.
We haven't added much people there, so the increase is mainly related to more, costs related to tape outs adding silicon from the wafers. From the foundries. Finally, on SG And A, we are growing on our organization to scale and manage the future growth. Of the company. So this quarter, we've spent 14.9 percent of revenue versus 13.1% last year.
In undelaying in pure numbers, we went from $7,700,000 to $10,600,000. And as I mentioned, we have a small operational leverage our EBITDA margin is now 14% versus 13.6% a year ago. As we do have seasonal variations on both revenue, but also on cost. We also like to show the trailing 12 month spending. So in total, this year, we've spent 37.7 percent out of revenue on OpEx, just a slight increase from the periods periods.
Both, R and D and SG and SG and A are more level with historical periods. Of course, SG and A, no R and D, as I said, is, of course, impacted by no revenue on the cellular IoT. So you will see the R and D number going down when we get revenue from solar. Gross margins at 49 percent, which is on the upper end of our guidance. As I said before, during Q2, we did see a continued expansion in our gross margins, from the bottom we had a year ago.
Yield is now very close to our targets and we for costing is coming down. We commented in Q1 that during Q1, we had very favorable customer and product mix and that we would see some variations on that in Q2. We haven't really seen that, so we have the same favorable mix. However, this will fluctuate from quarter to quarter. However, we are at the top end of our long term short range products guiding on gross margin, which is between 48% 50%.
However, we do see good cost improvements. So during the next two quarters, we still expect to see 50% margin within a quarter. I'll now turn to the cash OpEx. So cash OpEx is adjusted the capitalization we do, which was at $3,600,000 this quarter. OpEx increased by 34.5%, year over year.
This is partly driven by more employees. Last year, we had 564 employees. This year, we ended the quarter at 629 employees. Of course, that's an increase of 12%. The reason there's a big difference between the underlying and the reported is, of course, that we have the negative effects on FX compared to last year.
And also it's the mix of the employees we get in this year versus last year. We also see that other OpEx has increased from 6.7 to 9.5. This relates a lot to the tape outs of the silicon I mentioned before on R and D spending. Compared to last quarter, we do see that even if we're growing the company, we are managing our costs closely. So OpEx is more or less at the same level as last quarter.
We've increased people, but we also have a positive effect of salaries during the summer period. Finally, I'm going to go to cash flow. So we have definitely strengthened our financial position during the quarter with the capital raise we did on the 25th April at 50 kroners. However, so I've split the presentation in 2. This is first showing the effects of the business, and then the rest is the financing effects.
So in total, we have a negative cash flow of 4,100,000 during the quarter. Normally, you do see a negative cash flow in the 2nd quarter due to the buildup of revenue in the 2 mid months of the year. So underlying the net working capital is more or less at the same level. As it was previous month, which is good, which when we would have expected a small increase. However, if compared to a year ago, net working capital in percent of revenue was 35%.
So we've managed to get it down from 35% to 26%. This is mainly due to a very tight follow-up and diligent follow-up of our customer base in Asia. So we've been able to keep our accounts receivable balances down, even if you're even though we're growing the company a lot. So we did a capital increase in, in April of, with net proceeds of 700 MIT 1,000,000, close to $99,000,000. And then we did a repayment of debt of 20,000,000 during the quarter.
So we ended the quarter at 107 $1,000,000. This $107,000,000, Santura mentioned, the basis for And we will also discuss more on the working capital buildup and, and, Tier 1 engagement requirements with this money. The cash is kept in in U. S. Dollars, mainly in order to reduce the, the, the currency exposure on this company as we do mainly have our business in U.
S. Dollars. Okay. Santoya, I'll hand over to you.
So
let's look forward. We start with the guidance straight away. We expect the revenue to come in around Hamner 50 to USD 160,000,000 for the second half of this year. If we midpoint, it means a growth above 20 percent, 21 to be correct for the whole year. We expect Bluetooth still to be the driver for 2018.
And we has looked at, the growth rates. And through the 40%, we are pretty proud to present. We've seen some other analysts out there predicting higher. We don't get that too much, but I think we take market share when we go toward the 40% growth. Gross margins, as Paul said, we expect to be in the upper range of the 48 to 50.
And obviously, we should hit the 50% target during 1 of the 2 remaining quarters. Backlog solid backlog, 80.1 22.7% growth year on year is basically on par with quarter on quarter. It's a healthy distribution over Q3 and Q4. And it's a good product mix and custom mix we see in the current backlog. We are going to That's our goal.
And we're going to show you a slide later on. Let's say this is actually happening. We see strong growth from the 502840. For those of you who don't know the 502840, This is the high end product from Nordic. It's the one that support multiple protocols And we're going to see contribution from thread protocol design wins in second half.
And we are still going to see consumer and non consumer markets grow. It's not that one is taking over for the other, but we see that the need for more advanced Bluetooth ships in industrial is higher than we see in Consumer. And it really proves what we the task we set out for some years back when we said, we are not going to be in the ultra low cost segment of Bluetooth Smart We are going to be up in the right corner where we bring value. And most customers need these features that we have implemented in the 840, if they're going to do anything smart, for example, in smart home and those application segments. So I have to give strong recognition to the guys internally.
That pushed this product Every half year, we show our key shipment. This half My first mail regarding question about shipments for kits, says around 30,000,000 a 38,000, but it was saying 30,000,000, I thought, no, that must not cannot be correct. But even 30,000 Kit is a great sales. And we see that is a significant contribution from over Advanced Parks. What does Advanced Park means when you talk revenue, it means higher ASP.
It's a leading indicator for market growth. And it also show our position in this market. We have an attractive and competitive solution. Why do I dare to state that? Because this is a third party slide.
Showing that Nordic get more certifications this quarter than previous quarter. We continue to win the signs. It's a 30% increase year on year, 23% increase quarter on quarter. Strong. We are pleased to see that We knew it's going to look like this, but it's always nice to see it and sort of put this together.
So the most important thing, what have you guys invested in? I would like to show you Here is a beautiful model from Corvo that then worked class engineering, and there is a world class radio inside this module. This is the alter shift module. Send this around. We have production silicone in house.
It's feature complete is power and performance optimized, and all testing, characterization and certifications are in progress. Quite a few of our competitors had the impression that we were lagging behind them and I shall be later on, we are not lagging behind anyone. We've done our first NB IoT trials. At several networks in Europe, we are getting ready with the production silicone to lead customers. But we have got assignments on the beta module.
Our beta module has had advantages over production modules from competing solutions customer. So I don't feel that we are trailing behind any competition anymore. The feature and readiness for deployment is there. We have a challenge level of integration, poker and ease of use. And I will show you some example later on.
We delivered totally new lead customers in Q2. 30 diversify set of customers. We diversify the customers in large customers and early adopters and fast to market that. So that's why we call it a mix of big and fast. We have objective to ship more than how the customers these parts throughout the year.
And we see now demand for the 1st production contest end of this year. Now we see it. We have forecasted will happen. It's a different view from forecasting to actually see. We have the first design win secured.
It's a European customer in asset tracking. And as I said, he switched from a competing solution I've been struggling with. So we are not lagging behind any other competitors in LTE Modules. We will start general availability in Q4. Our priority now is to secure our lead customers to get into volume ramp.
This is number 1 priority. Are we going to be successful on that? I talked about 1st IoT design win, the significant milestone less than 4 years after we started this project. 4 years after I went to the board and said, I need to spend a lot of money the next coming years. Now we see customers putting these beautiful modules onto their PCB.
It demonstrates our ability to compete power, performance integration. If you look at over integration, Our customers love it and it's easy to use. And we get trust when we do demonstration of these products now. Customers can see it. And what is the best customer for Nordic?
It's a guy that's been struggling with his previous experience with LTE. Make it easy has always been the mantra for Nordic and now we see it pays off. We have a strong pipeline of opportunities for the Sun Wind, and we are on track with our objectives for cellular IoT. We're doing a strategic cooperation with Q3, a Norwegian company based in Tronium. Well, almost like Nordic, a regional company based in Trugan.
They're doing smart parking reduce time to park in urban areas. And I don't want to dig it out every 2 months. I want to ensure it can be there for a long time that it has low power consumption. Agree. And this is our NB IoT.
Some of you might think that Nordic has been lagging behind on narrowband IoT, and we've been focusing too much on LTE app. This is based on narrow minority. And Q3 selected Nordic to enhance and to accelerate this smart parking project. And ultra low power performance and features was really the key. We're proud of cooperating with Curfry.
We think the product ID is great and is a great company to work together with. And our objective is to have the 1st deployment end of 2019. They have ongoing pilots. We licensed free solutions today. There's a strong interest and support for operators on the cellular solution.
This just shows that existing LTE customers are understanding the value of the Nordic module, the beautiful module that's earning around here. I need to get it back. By the way. So we are on track for a strong 2018. We met, the provided guidance range.
Revenue was up driven by 50.2% a year on year growth and Bluetooth. EBITDA margin went up with 31% and our gross margin expanded 2.3 year on year. We were pretty depressed a year ago when this fall and had to show you a 47% margin. That's not where Nordic want to be. But also sometimes that's the effect when you want to get that early adoption in the market And we are very proud of that strategy because that's why we're winning a lot and we were early out there and supported customers despite that we had some yield issues in the beginning.
Full year outlook, continued growth. And we are on track to meet our objective. That means that should grow around 20% year on year. We if nothing is nothing really bad happens, we're on track to meet profitability. And we are expanding and expect to be shipping to 100 customers or more on the Alstair project.
And I think you will see that we have a continuous design win momentum both on Bluetooth and year's time. Most producers are tracking their LTE design wins. We're looking forward to start that exercise. I think we go to any questions, Paul.
Thank you. So Christopher from DNB. If you could just start with the with the design win with Q3. I understand that this was initially something that they worked with, eulox on So does this mean that you have replaced your books in this project?
I don't, I can't detail answer about Q3, but I think you can ask them. They have a presentation later this week.
And then secondly, on the design wins, This is Q3 and an additional design win for asset tracking. So there's 2 design wins on LTE.
Absolutely. This Q3 is not the 1st assignment. The 1st assignment is the asset tracking.
Previously, I understand that you said that for 2019, you expect to have multiple customers who can more than a few 100,000 units per customer per year. Are these design wins those kind of customers? And can you also elaborate on what kind of asset tracking solution this is?
I think these 2 are specific examples. Some of the other design wins we have might both be some might be in the fast early to market and some are obviously in the big category since we have this split of big and fast.
Then rounding off for me. On the the profitability improvement that you aim for year over year, is the profitability improvement we've been seeing so far this year? What we should expect for the 1st year or is it a bit lower or better in terms of the margin?
What we see is that when you do produce semiconductors, you do always have a wafer bank and depends on when you produce your wafers and when you use the wafers. So the same product will basically take advantage when you get into a new production batch with maybe lower cost and even better yield. So it will be a continuous until you sort of empty out the old DIA Bank
thinking on the EBITDA margin?
That will absolutely make our gross margin better and improve EBITDA
I'm Marielle Pertes from Kepler Cheuvreux. Two questions from me. I see that you're working on certifications with the European carriers. And previously, you have alluded to perhaps moving firstly to the U. S.
North American market. Has this strategy changed during the last 6 months?
It's not changed at all. We are working with the U. S. Operators, but we have got some European customers that are accelerating, and we are working pretty heavily with to enable them to be able to roll up, but it's nothing changed in our strategy.
Okay. And then secondly, Can you tell us a little bit about, what sort of subscription prices, we are seeing in the Nordics in terms of what the carriers are charging per year No, or Q3.
Yes. Axel from ABG. So Santuri, you mentioned during the presentation that there were a couple of different reasons for the higher diversification in the Bluetooth sales among the top 10 customers. Could you give some more color on those reasons?
What you see, if you look at our market segments, that'd been a pretty stable for a long time. And if you look to the last one called Others, that's increasing heavily. And that is product that doesn't fit into any of these other segments that we define.
Yes. So you would say that it's the other category and a higher share of module sales that is,
Module is, part of it, but there is also other segments that are contributing to revenue, which we thus don't manage to fit into existing market segment.
Okay. 2nd question. So you cited that a particular gross margin is among other driven by yield on the 52 Series. Can you previously, you have said that you are still shipping most of your Bluetooth ships on the 51 Series Can you give those an updated, view on the split between 51 52?
I can do, but it's basically two questions in one here. First one is that it's not on the yield that improves margin. It's also if you look at the consumer versus non consumer, as long as non consumer is growing, that will also contribute a bit. When it comes to the split between, 5152 forward looking, you will see most probably 52 will cross over and be the biggest, maybe I should get some help from Gary here, but I would anticipate end of this year beginning of next
You also see that on the design wins we show, it's mainly the 52 that's coming in now. Although there's still some traction on the 51, especially in health care.
Yes. And a follow-up question on the gross margin because you have to say that expect to hit the 50% threshold in at least 1 of the quarters in H2? And then you also say that you have a good, unfavorable product mix for Q3. Coupling those two together, sort of implies that you expected 50% in Q3. Is that correct to reasoning?
I mean, that's your job. And I think you're doing a good reasonable. So we are sticking to our guidance.
Next question on big and fast. I understood the general split, but can you give us some more detail tail on the parameters that puts 1 in the fast and 1 in the quick? And
Yeah. It's big and fast. The one that is very there is some very large customers that need attention. And we are following the large customers very closely despite that might not be in production end of 2018. But we also would like to get revenue end of 2018.
We put efforts on smaller opportunities that will be faster into the market. So how
slow will a large customer be in terms of time to market?
It's a definition of flow. I think it depends on how complex if the infrastructure of these large companies and product. If you have a simple product, I just need to be connected to the network. It doesn't need such a big infrastructure. If you have a complex customer, with a relatively complex infrastructure.
It can take maybe a year or 2 to get the whole all pieces together.
And I want a final one on the, cost related to the cellular business. So you had a cash cost of $6,800,000 in the quarter. So have seen the cash costs come up and the capitalization of the cellular costs also come up. Related to you being closer to commercialization. Is this sort of the level we should expect on cash costs related to cellular also in Q3?
Yes, I think it was, as I mentioned, it was pretty high costs on tape outs and then sort of getting the product ready during this quarter. And we haven't we've had some people, but not not a large amount of people. So I guess between this and last quarter, it will vary a little bit depending on the tape outs when they come in in the quarter. So we're not adding on a lot of people, for example, now. This will vary based on external, yes.
I would like to add some to that comments. Is that We do all the costs out of Finland as LTE cost, but there is actually ongoing quite a bit of Bluetooth work in Finland. So we do work where we have resources and we have resources and availability of resources in Finland. We might continue to add more people in Finland. We want to employ guys that can bring Nordic forward and we don't care so much where they are placed.
Frederic Sandstein from Pareto Securities. So solid, the 49% gross margin in Q2. At the Q1 presentation, you heard some caution with regards to expecting lower gross margin in Q2 versus Q1. Does this mean that you saw an increasing trend on gross margin during the quarter and maybe it was even close to 50% in June coming out of the quarter?
I think we stick to our guidance, but again, you're reasonable in your thinking.
On a property revenue, it was down 18% in this quarter. And I think implicit in your guidance, it's down some 20% to 25% in the second half. This is somewhat bigger decline maybe than you have indicated earlier. So can you elaborate a bit on that?
It's very difficult for us because we don't have, as I said, too many customers contributing with volume in proprietary at the moment. And what we see is that it's seasonal and some of the customers have a good quarter and other had a average quarter, but I don't think your number is what's going to end up at. I don't think we end up at a 25% down for
We've had around 10% I think we said a year ago, and I think your numbers are more in, in, below the 20% you indicated.
Okay. Just on guiding for H2, is there any cellular revenue included in that guidance?
We have a goal of having some seller revenue in H2, but it's so it's not that the size that it should matter. It's just that it shows that we are starting to get customers to pay for these products.
Last one from me if I may. The 1st year after inaugural Bluetooth year, you had $20,000,000 of revenue. Do you think that's a good proxy for 2019 on solar?
We haven't start budgeting for 2019 yet. We looked at opportunities and I respond to you when we have gone through the opportunities.
Thank you.
Christopher from the Megan. You said that you expect to see a lot or some more activity towards Tier 1 customers going forward? Does this mean that you will see pressure on the gross margin in 2019?
Obviously, volume is an important parameter when it come down to price on Semiconductors. But remember that volume sales from Nordic also means volume perchase to our vendors. So the important thing there is to get that balance correctly. And let me come back to you when we have the negotiations at both sides.
And then also moving into 2019, could you say something more about kind of how you expect to utilize the proceeds from the equity issue in terms of how should working capital move as you start to see revenues on LTE or any other things that you will spend cash on?
So CapEx this year, year to date is $6,700,000, more or less the same amount as last year. So up to now, we've mainly invested in software. And in test equipment for the manufacturing. So the test equipment we added this year was a test equipment that sat our vendors in Asia. And then we invested quite a lot on that in Q2 because we're adding more complex products, we need more flexibility and capacity.
Going forward, as Santorre mentioned, we'd need to increase the lab equipment, etcetera, for both our customers, but also to improve our yields. We haven't guided on how much that is until it gave a flavor of what we're doing, but it will course, increase CapEx versus the historical where we've been on average of the $1,000,000 a month. So it will increase. So that's part of the use of the proceeds. The second part is, of course, the working capital buildup that we will get when we start manufacturing modules, you know, Corvo, the LTE business is based on modules produced by Corvo, and that will require more working capital.
When we make the budgets and when we present our guidance for the cellular business, it will be easier to see what number that ends puts. But the 26% working capital ratio will definitely increase.
Thanks. And then just lastly, you expect to see some revenues from thread by theendoftheyear? Is this kind of like LT, it's not meaningful or is it more meaningful than the, if you could kind of quantify that in some way?
It's been in works longer than LTE and it's come longer and we've been more meaningful than LTE lately.
Great. Thanks a lot.
Just a quick question in terms of clarification. You mentioned that you had diversified your customer portfolio over the past year, but also you mentioned that that might change slightly going forward in terms of opportunities, could you elaborate, elaborate somewhat in terms of those larger opportunities that are out there?
On the large opportunities, I will love to do it. But again, we can say that asset tracking is some of the leading applications we're working on. And, I stopped there.
Just quickly, do you see that you next year will see significant rise in the, kind of, share revenues and coming from the top 10 customers. Is that what you tried to say earlier today?
I think we're going to see some swing back that we will have some larger customers that will skew the picture a bit.
On Bluetooth or on LT.
Next year, Bluetooth. Great. Thank you for coming on this beautiful day. Go back and enjoy the sun.