Good day, and welcome to the Innovative Solutions and Support second quarter 2020 earnings conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Geoffrey Hedrick, Chairman and Chief Executive Officer. Please go ahead, sir.
Guys, good morning. This is Geoff Hedrick. Welcome this morning to our conference call to discuss our performance for the second quarter of fiscal 2020, current business conditions, and our outlook for the coming year. Joining me are Shahram Askarpour, our President, and Rel Linehan, our CFO. Before I begin, I would like Rel to read the safe harbor message. Thanks.
Thank you, Geoff, and good morning, everyone. I would remind our listeners that certain matters discussed in the conference call today, including new products and operational and financial results for future periods, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse, from those discussed, including other risks and uncertainties reflected in our company's 10-K, which is on file with the SEC and other public filings. Now I'll turn the call back over to Geoff.
The COVID-19 pandemic is reshaping the way we live and work, including the lives of our many dedicated employees of ISSC. As a business deemed as essential, we have managed to safely keep our operations open to meet our obligations to our customers, which includes markets that are vital to the nation's safety and security, such as the military, as well as cargo air carriers who are playing an increasingly crucial role in getting medical supplies that are needed throughout the country. Having recognized the challenges early on, we took aggressive steps to protect the health and well-being of our employees, our families, our customers, and our partners, as well as immediate and remedial actions to minimize the impact to our business. The results of these efforts have been rewarding.
All 100% of the IS&S team members have complied with the new safety procedures and have come to work, my personal heroes. These past three months resulted in a quarter-over-quarter revenue growth and the sixth quarter in the last seven in which we have generated sequential revenue growth. We generated strong cash flow and had one of the strongest quarters of new business. Our backlog has increased to nearly $10 million, highest in years. The margins were impacted by period cost fluctuations in the quarter. We expect them to rebound to prior levels in subsequent quarters. We will deliver production quantities of our autothrottle to the OEM this quarter, which would represent the second major OEM contract in the general aviation market. The autothrottle has been six years in development, culminating with the FAA certification of the OEI upset protection and the adoption into a major OEM production.
The general aviation market and autothrottle, we believe, provides an excellent opportunity and further inserts us into a market both in terms of an OEM production and retrofit. In a competitive market, this revolutionary autothrottle is a compelling differentiator that aircraft operators, especially in charter travel, military, and specifically multi-engine aircraft, where the ThrustSense autothrottle is a unique, patented source of life-saving VMCA upset protection. Anecdotally, I would comment that as a pilot of 30 or 40 years, that I was always quizzical about the fact that they used to refer to the multi-engine aircraft having more fatalities than single engine. Never made sense. We now understand why. What we've done here today, we are told by an FAA engineer that although we lose one person every four days, that what IS&S is doing here today will save lives. I'm very proud of that.
Interest remains strong in the air cargo industry for our flat panel display technology, which operators have been installing into aircraft they are converting to expand capacity to meet the growing shipping needs, especially from the healthcare industry in light of the current pandemic. Certainly, our second quarter results suggest that our efforts to safeguard our employees as well as those around us have not significantly impacted our operators to date, and that our end markets to date appear not to have been affected by many others. We understand investors are interested in the future and how this pandemic might impact future quarters. No one can say with any certainty, but we recognize it's an added risk. For instance, in our supply chain, we have not experienced significant disruption, though we have seen some minor disruptions, such as supply of certain connectors.
We are still dependent on the FAA before we can officially start other autothrottles . The FAA is under a shelter-in-place order, which could potentially slow the approval process. Also, some new business meetings and demonstrations are being rescheduled due to the pandemic. I mentioned on the onset that the important thing is that we are receiving new orders, and we're working hard to satisfy our obligations to meet those orders. In fact, we are actively hiring to meet the growing demand. As a result of the uncertainty created by COVID-19 pandemic, and to help adequate liquidity during this period, we originally decided to participate in the Federal Paycheck Protection Program under the CARES Act. Since the time of our loan application, additional guidance has been issued by SBA and the Treasury Department that creates further uncertainty regarding the qualification of certain requirements for our PPP loan.
Out of an abundance of caution, and in light of the new guidance, we have concluded that it is prudent to repay the PPP loan. This will free up that resource for other companies that have a greater need for the funds. The first half of the year has gone well, and we are optimistic that we can continue an upward trajectory over the rest of the year as well as into the future. Let me turn it over to Rel for some really boring financial details.
Thank you, Geoff, and thank you all for joining us this morning. Revenues for the quarter of fiscal 2020 were $4.8 million, a 15% increase over the second quarter of 2019, reflecting increased product demand as well as increased customer service revenue, which was over $1.2 million in the quarter. There continues to be engineering revenue associated with the F-5 development contract. Gross margins for the quarter were 47.5%. That is down from last quarter as well as a year ago due to product mix, an increase in warranty costs, and higher labor expense as we staff up ahead of future production demands. We fully expect margins to return to levels recently achieved as these expenses normalize.
Total operating expenses for the second quarter of fiscal 2020 were $2.2 million, down from the first quarter, and little change from a year ago. Normalized expenses remain relatively stable despite the revenue growth we are experiencing. Research and development expense was up slightly from a year ago, reflecting an increase in the amount of internally funded R&D, which is expensed as incurred, in contrast to funded R&D, which is charged to cost of goods sold. With the wind down of the F-5 development contract, funded R&D has been significantly reduced. Selling, general, and administrative expenses were essentially unchanged as we work hard to keep costs under control. Interest and other income added $75,000 to the bottom line this quarter, which is a little less than last quarter, mostly due to the decrease in interest rates.
Due to loss carrybacks, we recognized a $309,000 tax benefit in the quarter. The loss carryback resulted from the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which has been signed into law. The CARES Act amends the net operating loss provision, allowing for the carryback of losses to each of the two taxable years preceding the taxable year of loss. We reported quarterly net income of $438,000 or $0.03 per share, more than double the same quarter a year ago, as well as sequential improvement from $332,000 or $0.02 per share in the first quarter. For the first half of the year, net income is more than twice that for the first half of fiscal 2019. The company remains in a strong financial position and generated positive cash flow of $500,000 from operating activities in the quarter.
At March 31st, 2020, we had $22.6 million of cash on hand and no debt. We believe that the company has sufficient cash to fund operations for the foreseeable future. Now I'd like to turn the call over to Sher.
Thank you, Rel. Good morning, everyone. It certainly has been an important, exciting, and challenging first six months. As Geoffrey explained, as an essential business, we have remained open over the course of Pennsylvania's shelter-in-place directive. Our first priority was for the safety and health of our employees. We acted swiftly to enact a plan that met and went beyond federal and state guidelines while maximizing the productivity of our workforce. Additionally, production crews during the month of April were split into two different shifts, with each shift one week on, one week off, but paid for both weeks. Although short-term productivity was reduced as a result of measures taken, we believe the overall results of this quarter will not be significantly impacted. We are currently meeting our delivery deadlines. In fact, we are now hiring to staff up to meet the increasing production requirements.
As you heard from Jeff, we expect to start shipping production autothrottle units to an OEM this quarter. This is an encouraging endorsement of our autothrottle technology from a leader in the general aviation industry. As we have mentioned in the past, the ability to incorporate VMC mitigation in our autothrottle provides a tangible competitive advantage to twin-engine aircraft, and it seems OEMs want to capitalize on this advantage by instead incorporating the technology into their new production aircraft. It offers a great selling point to prospective buyers as it offers potentially life-saving rollover protection for twin-engine aircraft. VMC mitigation technology is a standard part of our autothrottle. We have been anticipating an influx of autothrottle production orders, and while it may not be a year of big autothrottle shipments, it is shaping up to be the beginning of a ramp-up we believe has significant potential.
Once again, quickly reviewing the programs driving current results, the PC-24 program remains on track to deliver approximately 50 Pilatus Aircraft this year. Since only a quarter of two of deliveries are carried in our backlog, those for which a PO is in hand, you can understand why we believe our backlog greatly understates our future revenue potential. In the commercial transport market, we are experiencing steady demand for our Boeing 757 and 767 portfolio of cockpit technology, primarily from the air cargo market, which is converting traditional aircraft into cargo transport planes. In the military market, we were recently awarded the production contract for the F-5 Air Data Computer that has been under development. This is a U.S. Navy fleet retrofit, but with many foreign militaries flying the F-5, we're hoping to expand sales into the global market. Our production KC-46 program also remains on track.
New orders in the second quarter were roughly $8.3 million, giving us an almost $10 million backlog as quarter ends. One of the areas where we're feeling the effect of the coronavirus pandemic is in prospect meetings and demos that are getting pushed out to July and later. In addition to revenues generated from backlog or product, we also continue to experience a steady demand for customer service, intra-quarter book and ship work, and the contribution from long-term contracts, where only a fraction of the total contract is recorded in our committed backlog. Let me turn the call back to Jeff for some closing remarks.
Thank you, Shahram. While current conditions make it particularly difficult to forecast future sales with any real degree of certainty, we are confident that the progress we have achieved to date has positioned us well to prosper over the longer term. I want to turn it over to the operator for lines for questions and answers now. Thank you.
Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press stars and two. At this time, we'll pause momentarily to assemble our roster. The first question will come from David Campbell with Thompson Davis & Co. Please go ahead.
Hey, good morning, everybody.
Good morning. How you doing?
Thank you for all the good news.
We're happy to give it to you. It's been a good time. It's an interesting time.
It sure is.
Especially with the massive downturn in commercial air transport. I guess it's down 95%. It's hard to believe. We just sent somebody out to Wichita. I think he said there were only about 20 people on the airplane. Although he said on one of the flights, there was a woman that was completely wrapped in plastic with her wrists and ankles taped, and a ventilating breather thing. Anyway.
She didn't want to take any chances.
What it speaks to, interestingly enough, is Our interest in flying in charters and business jets, where you can control, number one, the people that are going to be on board.
the airplane with you. Number two, you don't have 100 people. As an example, we had some friends down in Palm Beach. We chartered an eight-passenger Citation to bring them back up, and when the price was distributed among the eight passengers, it was about the same as a first-class ticket. It's interesting that we may even actually see a strengthening in that market. We're delighted that we've established our foot in the door. Just by the way, David, I did some looking. If I look at the three production programs, what we call the ongoing OEM-type production programs, their revenue at the end of next year, just those three programs, will be equal to our total revenue last year.
Huh.
That'll be in just those three ongoing programs. It looks very promising. The promise that we're on a spectacularly successful airplane. Now you can ask your question.
Okay. No, thanks for the comments. I just want to ask a technical question about the taxes. The CARES Act provided you some tax benefit in the second fiscal quarter. Well, that's the only quarter, though. Will the third quarter go back to a normal tax rate?
Right. Yes, that's correct. This is the effect of the CARES Act, and going forward, and in the past quarters, since we have NOLs, we really haven't had any tax expense. I don't expect tax expense.
The truth is, David, this past quarter, it tended to mitigate the periodic fluctuations.
Yeah
Period costs. It kind of levels those out. This coming quarter, they won't be there, but we expect an upturn in both volume and margins. It'll all balance out for a change. It worked with us rather than against us.
Assuming there's pre-tax income in the third and fourth quarters, there shouldn't be any charges for taxes?
Yes.
Okay, great. Well, what about the rest of the business? The flat panels growth in the cargo conversion market, that's likely to continue because the passenger market will probably stay down for some time, and they'll be using these passenger planes for cargo.
That's a very good, that's a very accurate observation, David. The reality, think of it. You're an airline or a carrier, and you've got a whole hell of a lot of airplanes, specifically 757s and 767s, which you don't need now because there isn't anybody to carry. I don't expect to have large markets for several years because people, myself included, might be apprehensive about going to Europe or traveling. It's going to be down. Those areas will be down, so the obvious thing is that you convert them to package carriers. The other thing that we've learned in this last three or four months is that people rely far more heavily on Amazon and alike, and you can even see deliveries are in that area.
The online ordering, I understand, has gone up by about 25%-30%. I expect that people will get used to it. I certainly am getting used to it. Very nice. We could probably expect more and more, and take a look at the aggressive action that Amazon took, which was to essentially build their own fleet of airplanes. Obviously, a lot of them are on charter, but they're committed to the Amazon operation. I think they're over 80 now, and it is very reasonable that they could be up to several hundred committed cargo aircraft, and they all would be converted from 757s, 767s presently in service.
It's amazing to me that these 757s and 767s all have old technology.
Well, in defense of 757s, 767s, at the time, it was very advanced. That was the good news. Literally, there are other airplanes that were in production at the same time, the 737s and 757s really were analog airplanes, where the 757s, 767s were substantially a sort of a digital airplane. They were a transitionary airplane, and so they've got a lot of life left in them, and they're a very efficient way of moving cargo. The 767 has a lot of bulk space to move lots of packages.
Mm-hmm. Right.
I'll tell you.
Thank you very much.
When you look at deliveries now, I was looking at something this morning, and they say, "We'll deliver it in an hour." Why would you want to start your car and drive to the store and put on a mask? I don't want to do that. Anyway, I'm sorry to get carried away. You go ahead.
No, I'm just saying thanks for the comments, and thanks for doing such a good job building the business. I'll talk to you soon. Thank you.
Thanks for your support. Go ahead.
Again, if you have a question, please press star then one. Our next question will come from Michael Frederick, investor. Please go ahead.
Good morning, everyone.
Good morning.
Good morning. Hey, I had a follow-up question from the last call. You haven't been able to announce the new OEM partner yet. Has that been pushed way back, or is that still on schedule for maybe the next quarter?
The simple answer is I don't know.
Okay.
Up to the OEM. We have obligations under agreements that don't allow us to divulge certain things, and that's all it is. There's nothing very dramatic about it, to be blunt with you. It doesn't really affect our business in any way. You're right, it is a little odd, I would say.
Yeah. I'll be honest with you.
Hopefully somebody will understand that it is odd, and they'll come to their senses. We'll see.
Yeah, I'll be honest with you, it's not really hard to figure out who it is. Anyway.
Oh, I see.
Yeah. I won't say any more. Anyhow, another question I had for you was, you said that you had three OEM programs. Is that the PC-24, the tanker, and the new OEM, or are we talking about two OEMs?
Yes, that's exactly what it is.
Okay.
No, that's exactly what it is. They're all solid programs. Obviously, the tanker is solid. The PC-24 has been a spectacular success as an airplane. They keep raising their rates, and we're adapting our manufacturing to accommodate as much as double the rates. We're in strong case. The third, the OEM that we don't talk about, is quite frankly, we couldn't be more pleased with their cooperation and support, and the realization that this is a significant safety feature for their aircraft and will be unique to that aircraft in the world. A real lifesaver.
That's fantastic.
We've got good partners, and I think the prospect of a lot of business.
Great. Just real quick, you had said that you thought that by the end of next year that the three OEM programs would exceed, did you say, last year's revenues?
That's right.
Okay. All right. Great.
No problem.
One more quick question. The backlog. For something to make it into backlog, are we to assume that that's something that's going to be delivered in, what, the next two quarters? What's the qualification?
I don't even think you can do that. Remember, the backlog really doesn't reflect all the potential business. As an example, any OEM may agree to put your equipment basic on the airplane, let's say standard. They don't give you a purchase order for the next 20 years. They only release purchase orders over a six-month period, typically. Boeing did it, Douglas did it. They will release a six-month group. The only thing we ever see in our backlog are that six-month period. The total, if you took it, the total over the next 10 years of the program, would be obviously orders of magnitude larger.
Okay. To make it to backlog, you're essentially saying you need a purchase order.
These are orders with a defined schedule. Is that right, John?
Yes.
Ballpark, how much time are we talking about there, though? To be delivered over how many months?
I can't answer that. I don't know.
All right. Okay. All right. Well, guys, great report. Just doing great. Appreciate it. Take care.
Thank you. Thanks for your support.
Our next question will come from George Murma with Praedus Venture. Please go ahead.
Hey, good morning, guys. That was a fantastic new order number today. To follow up on that, approximately out of these new orders, how much of this was new OEM autothrottle business versus the retrofit markets? Just in general, how is the retrofit market for the ThrustSense autothrottle performing?
Well, the business for the autothrottle is starting to really blossom now. We're getting a lot of interest. We've been doing PC-12s, and now we're doing King Airs as well. The retrofit opportunity is orders of magnitude larger than the OEM business. To give you some idea, in just one airplane, there's a total market of over 5,000 opportunities. That's huge. We're looking at other airplanes that we're working on now, where they've built over roughly 9,000 of the airplanes. This autothrottle has gone from being a cruise control to a lifesaver in a multi-engine airplane. As you're aware, the Addison, Texas scenario that we saw on the news, where the airplane just gently rolled on over on its back and into the warehouse, is not sadly an uncommon terminal scenario. Our system has been certified to prevent that.
Right. Are you guys in discussion with additional OEMs on this AutoSense autothrottle?
Yes, we are.
Okay. On the new orders, I'm assuming that some of this is from the autothrottle business, correct?
Remember, this is all sort of happening in the last couple of months. Defining it and trying to understand what each order means and its relevance is, I think, premature. I think we have to kind of say things are maturing well in light of the pandemic and all the other crap that's been going on. We're pleased to just think about it. Under pretty adverse conditions, we were able to expand our business and grow it toward the future. If we could just keep our heads down and work hard, hopefully we'll keep that going.
Okay. As you look out into the back half of this year and the next year, do you expect the gross margins in terms of product mix to sort of stay in this normal zone you've had in the last couple of years? Do you see any longer term shifts at all?
They're more even go up. There are a bunch of fixed costs associated with them that, obviously, building and things like that don't need to be expanded. Therefore, the gross margins will go up. Remember, I do remember, because I've been around a while, the year that we did over $60 million, returned $18 million in profit and in cash, 30% net after tax. I don't expect to do that again, that gives you an idea how sensitive the margins are to volume.
Okay. All right. Thank you.
Thank you.
Our next question will come from Roger Goldman, investor. Please go ahead.
Thank you. Good morning. I'm an investor. You guys knew my dad, who was a long-term investor, and he died a couple of months ago, and now my sister and brother and I are investors. Thank you very much for the good results and the good report. A quick question about your cash. Are you guys getting in the banking business? That's a theoretical question, of course.
No.
You got a lot of cash on the balance sheet, and the question is, are there any interesting opportunities out there to do something with it in a low interest rate environment?
Well, we're looking at that. I'm reminded about two things. It was serendipitous that in a time when the federal government felt it had to loan money to the industry to keep it alive, they would have cash flow and wouldn't go out of business, our business didn't need it and had that.
Right
reserve in place. I won't make any apologies for it.
No, I wasn't expecting you to.
One other thing. We're going to look at how we best use that. The company has now transitioned into a position we believe that will generate cash ongoing in the future, and that will change the equation. We will look at that.
I may not
that at least the company and I always enjoyed your dad. If I remember right, he was 95, and I still remember him saying to me, "You know, I got a third of my net worth in you guys, so get going.
That's right. Well, he died peacefully with all his marbles in January and basically told me, I'm the executor, basically told me, "Don't you dare sell that stock.
He's a good man.
Yep. Thank you.
How old was he?
97.
Huh?
97 with all his marbles.
He did. 97 with all his marbles, and he came into our annual meeting from Jersey on the ferry.
That's correct.
Jesus.
That's correct. Well, hopefully it runs in the family. Anyway, thank you so much. By the way, I wasn't asking for anything specific in terms of how you use the cash, except there are going to be lots of bargains out there. Asset values of a lot of companies are going to be dropping, and cash becomes king, as you know, in this environment, having lived through it once or twice before.
We obviously are mindful.
Yeah, I'm not asking you to disclose anything, but just wanted to comment on it.
No, I think we're okay. Trust me, we discuss it constantly.
Okay
and I got a few other-
That's good enough for me.
say, "What are you doing with the money?
No. Okay. Well.
I'm patient.
Yeah. Well, I'm looking forward to meeting you. We're in Palm Beach in the winter, and actually, your comment about chartering is spot on. That's how we're getting north.
It's a sensible way to do it.
Yeah.
You fly out of PBI, and you actually don't even have to land at Philadelphia International.
We're going to fly right into Westchester.
If you have the right kind of airplane, you can land in Westchester and places like that with short runways.
That's where we're going, right into Westchester. Yep.
Is that right? Yeah. You know our plant's here.
West Chester, N.Y.
Where?
West Chester, N.Y., HPN, or West Chester, P.A.
Oh, okay. Well, I'll come visit you.
Well, are you in New York or Pennsylvania?
No, we summer in Western Mass and winter in Palm Beach.
Oh, okay.
Palm Beach.
Well.
Pretty good life.
Yeah. I grew up in Westchester County. Anyway, you have a good day.
Okay.
And we're doing-
All right.
We work hard, and we enjoy your family.
Great. Well, thank you, and best is yet to come.
You betcha. Okay, next.
The next question will come from Steve Rudd with Blackwall. Please go ahead.
Hi, guys. First, I'm very grateful that you all have been coming into work and organizing things as well as you have. Happy to hear everybody's voice on the call. We talked about the delivering production quantities of autothrottle this quarter. If I remember correctly, the units can run up to $50,000 per unit. How many units are we talking about for this quarter, the one we're in?
A couple dozen.
A couple dozen?
Yeah.
Okay. That would be then a significant impact.
I hope so.
On revenue. Okay. All right. That sounded different than what we had. My numbers are about-
To be honest with you, I'm very chuffed. I'm really pleased that our customer has committed themselves in such a terrific way. They've been a hell of a good partner, and the program is going along exceedingly well. The simulators for the aircraft are even being built as we speak, and they'll be training people within a couple of months. The program is moving along very well.
Okay. The increment to revenue could be as much as $1 million or more.
We're not going to estimate that.
That's just math.
I'm sorry
checking my math .
There's a lot of moving marbles right now.
Right
We're trying to keep them together.
Okay.
We'd like to explain what we think is general opportunities, and we'll work hard to try to make the best out of realizing those opportunities.
Okay, fair enough. I did note that our gross margins were 47.5%. I think they run higher on autothrottle. Those incremental sales, I'm assuming our sales, if we take a base of $4.8 million for this quarter, we're going to be running up higher than that given that our margins in autothrottle are a bit higher than that. It should be average gross margin of greater than 47.5% for this quarter we're in.
Honestly, when you get gross margins in the 45%-50% range, you don't want to expect a hell of a lot more. You can get them, and we've had times that were over 65%. If you try to run a business with that as a target, you're probably not going to grow the business very fast. The elasticity of the curve, it sort of disappears when you get into those levels.
Okay. That makes sense.
The only people that can maintain those kind of margins is Heidi Fleiss.
Oh, God. All right, I won't go for that too much more in a Me Too moment. I'm not among those who are Me Too'd in any negative way. Let's talk about the CARES Act. Remarkable comment. Let's talk about the CARES Act. What is the magnitude of the benefit that we're going to get on the tax benefit? Somehow that blew past me.
Yeah, the biggest benefit for us was just the carryback. As you remember, with the TCJA law a year ago or so, you couldn't carry any.
Of course.
You couldn't carry back losses. You could only go forward. This new March, whatever the exact date was, late March, what it allowed companies to do is to carry back losses. For us, since we're our fiscal year ends , I assume the point was cash, right?
Right
file it. The company can get some cash, carry the loss back, and that's another way of funding some companies. That's the benefit we received from it, and now we're just moving on.
What's the dollar amount that we should expect to get back? Because you're talking of a refund, right?
Yeah. It's about $309,000 refund.
Okay. Very good. We get to take that, from an accounting point of view, do we then take that into income or we have to restate the prior years? What happens with that?
No. It's a now thing. In our current Q2, you'll see a tax benefit of $309,000 in the P&L.
Okay. That'll give us, from just the number point of view, it'll give us a nice presentation just for that point.
Yeah.
Very good. The new order number that we had that was stated in the press release, I take it it's correct that none of that new order number is Autothrottle, or does it include the roughly two dozen that we just talked about? Or what amount?
What?
It doesn't include it, yeah. The 8.3.
It does include I'm sorry, say it again.
It doesn't include autothrottle.
Okay. It includes the units we just chatted about.
Yeah.
Yes.
Okay. All right. Terrific. Listen, all of you take good care of yourselves and your employees. Hats off to you. You're in the business of saving lives. We really, really appreciate what you're doing.
Thank you.
Thank you for your support. I guess that wraps it up. Thank you for your attention today. Thank you for coming, and thank you for support of our company.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.