Ladies and gentlemen, good afternoon. At this time, I'd like to welcome everyone to QuickLogic Corporation's 1st Fiscal Year 2019 Earnings Results Conference Call. As a reminder, today's call is being recorded for replay purposes through May 15, 2019. Would now like to turn the conference over to Mr. Jim Fanucchi of Darrow Associates.
Mr. Fanucchi, please go ahead.
Thank you, operator, and thanks to all of you for joining us. On the call today are Brian Faith, President and Chief Executive Officer and Doctor. Sue Chung, Chief Financial Officer. As a reminder, some of stated expectations relating to revenue from new and mature products, statements pertaining to QuickLogic's future stock performance, design activity and its ability to convert new design opportunities into production shipments, timing and market acceptance of its customers' products, schedule changes and projected production start dates that could impact the timing of shipments, the company's future evaluation systems, broadening our ecosystem partners' expected results and financial expectations for revenue, gross margin operating expenses, profitability and cash. These statements should be considered in conjunction with the cautionary warnings that appear in QuickLogic's SEC filings, For additional information, please refer to the company's SEC filings posted on its website and the SEC's website.
Investors are cautioned that all forward looking statements in this call involve risks and uncertainties and that future events may differ materially from the statements made. For more details of the risks, uncertainties and assumptions, please refer to those discussed under the heading Risk Factors in most recent annual report on Form Ten K, most recent quarterly report on Form 10 Q, recent forms 8 K and other documents we periodically file with the SEC. These forward looking statements are made as of today. The day of this conference call and management undertakes no obligation to revise or publicly release any revisions of the forward looking statements in light of any new information or future events. In today's call, we will be reporting non GAAP financial measures.
These non GAAP measures should not be considered as a substitute for or superior to financials prepared in accordance with GAAP. You may refer to the earnings release we issued today for a detailed reconciliation of our GAAP to non GAAP results and other financial statements. We have also posted an updated financial table on our IR webpage that provides current and historical non GAAP data. Please note, QuickLogic uses its website, the company blog corporate Twitter account, Facebook page, and LinkedIn page's channels of distribution of information, about its products, its planned financial or other announcements, its attendance at upcoming investor and industry conferences and other matters. Such information may be deemed of material information and quick logic may use these channels to comply with its disclosure obligations under Regulation FD.
A supplemental presentation management may reference on today's call is posted at QuickLogic IR portion of its website and also available through today's webcast. And now I would like to turn the call over to Brian.
Thank you, Jim. And thank you all for joining our Q1 twenty nineteen conference call. I'm sure most of you have read the April 25th press release from SiFive announcing its strategic partnership with QuickLogic at the introduction of the industry's first SoC templates. The Freedom Aware family of SoC Templates represents a disruptive approach to SoC Design and significantly extends our software and IP business model. I will provide you with more background and color later in my prepared remarks, but let's first review Q1 and our outlook.
We benefited from an unexpected upside and mature products in Q1. Based on customer forecasts, now believe mature product revenue will be approximately $9,000,000 for full year 2019 and account for roughly 45% of total revenue. New product revenue for Q1 was below our expectations due to lower than anticipated sales of EOS S3 to support hearable design wins. An embedded FPGA license agreement that was pushed to 2nd quarter and a decrease in combined sales of display bridge and connectivity solutions. Driven by new hearable designs moving into production, we expect our new product revenue will rebound in Q2.
Let's start with an update on our embedded FPGA IP business. ETH received test samples of its new Arnold Pulp IC that includes risk 5 processor and our embedded FPGA. We are on schedule to complete internal testing this quarter. We released our new applications programming interface or API in the first entry These are being evaluated now by our lead partner for these initiatives. Agreement with a prime military contractor that has been commissioned by the DOD to evaluate and recommend embedded FPGA solutions and players.
Military contractors already represent a large market for discrete FPGAs and the DOD is taking steps now that will make it easier for contractors to incorporate embedded FPGA and ASIC designs. We are optimistic the evaluation of our solution will be favorable And with that, help us close one of our ongoing engagements with the DOD contractor and lead to new opportunities for us. We finalized our strategic partnership agreement with SiFive, where embedded FPGA is included in the QuickLogic always on subsystem IP that is optimized for ultralowpowerai endpoint applications and is integral to the new Freedom Aware SoC Templates. The bottom line for our embedded JIP is we think with the software tools that we have released during the last 12 months, and the ETH test chip in hand, we are well positioned to close several embedded FPGA license agreements in 2019. We anticipate a rebound in EFS3 revenue in Q2, followed by a ramp in the second half of twenty nineteen as a number of high volume design wins move into production During Q1, we shipped EOS S3 to support manufacturing for a number of customers, including JD dot com, SF Express and CLEAR.
The expected new product rollouts suggest that 2019 will be a breakout year for always onalways listening hearable products. The new HandsFree PowerBeats Pro is scheduled for release soon, and there has been broad speculation that a similarly featured Apple AirPod will follow. There have been several articles predicting Amazon and Microsoft will also release new always onalways listening designs in the coming quarters. These anticipated introductions have led to a number of new design engagements with Asian companies that are fast tracking new, always on, always listening hearable products for introduction in 2019. This increases our confidence that more of the numerous design wins we've already secured will begin moving into production this quarter and optimism that new designs targeting EOS S3 will follow later in the year.
Last year, we announced a broad MOU with a large Japanese smartphone company and our first smartphone design win. EOS S3 has since been selected for a total of 4 smartphone models and one feature phone model that are all for release in 2019. During Q1, we made initial shipments to support preproduction of the first smartphone model and we are scheduled to ship similar volume during Q2. Based on current forecast, we expect volume to ramp significantly during the second half 2019 as all five models move into production. Mass production for the consumer electronics design that I've previously discussed has been pushed out to late While delayed, the customer has also indicated it will use our EOS S3 design in a higher volume model than originally We continue to expect additional OEMs will release products later in 2019 that incorporate a platform version of the EOS S3 design.
Our engagement on a second platform design is ongoing. I'm very pleased to announce that we have secured platform design wins with 2 large companies that are targeting a variety of smart home consumer goods applications. We anticipate these designs will ramp into production during the second half 2019. We expect to provide more detail on many of these and other EOS S3 design wins and press releases during the coming months. In AI, we are offering a very unique platform solution that continues to build traction and leverage even faster than I had imagined.
When we acquired SensiML last year, it had an extremely rich sales funnel that included a number of Global Fortune 500 companies. But it had only started signing up subscribers to its unique SaaS development platform. During Q1, SensiML generated a modest amount of revenue from its first three SaaS subscriptions. For Q2, we are forecasting a sharp ramp to between 10 and 6 18 SaaS subscribers with as many as 5 of those being Global Fortune 500 Companies. 4 of the Global 4 500 companies are forecasted to buy our quick AI hardware development kit or HDK.
And one of those companies has already committed to buy 10 HDKs to support its various IoT design groups. While SensiML's full stack software solution supports a variety of processors, When customers buy an HDK in conjunction with the SaaS subscription, it suggests they intend to target our AI solutions. We are optimistic this early success will establish QuickLogic and SensiML as a complete end to end software hardware platform source for AI applications with some very large OEMs. This bolsters my confidence that we are on track to meet the previously discussed financial targets provided when we announced the acquisition of SensiML. We believe this significantly extends the scope and scale of our IP and software business model, as well as creates new points of cross leverage.
Slide 5 was founded in 2015 by the inventors of the RISC V Processor and in 2018 was named by the Global Semiconductor Alliance or GSA as the most respected private semiconductor company. SiFive's vision is to enable innovation by radically reducing the cost design time and risks associated with SoC development. It has already demonstrated its ability to do this with risk 5 processor cores. Now with its new Freedom Aware SoC Templates, SiFive is bringing its disruptive business model to SoC Design. With this revolutionary approach to SoC Design, companies will be able to select resources from verified SoC templates to create a customer specific SoC inside of 3 months and for a small fraction of the cost of traditional design methods.
SiFive partnered with QuickLogic to develop its first SoC templates for several reasons. This extent far beyond our long history in developing ultralowpower FPGA IP and development tools. Key to our selection was the experience we've gained in AI, voice and the sophisticated methods we have developed to allocate tasks across heterogeneous processing resources and intelligently manage power consumption across an SoC. Integral to the SoC template architecture is the quick logic always on subsystem IP, where our embedded FPGA is leveraged to process data using algorithms and AI models that are very likely to change over Running AI models in edge and endpoint applications is not a good application for a traditional processor because an MCU would consume far too much power. It is also not a good application for traditional heart logic accelerators because there is a need to adapt to new algorithms and AI models during the end product life cycle.
We believe embedded FTGA is the optimal way to enable these products to adapt to new algorithms and AI models. QuickLogic and SiFive are working closely with a select number of customers that have expressed interest in joining our Freedom Aware Early Adopter Program. Companies that join their early adopter program will have exclusive early access to Freedom Aware SoC Templates and the ability to add features. While this program has the potential to provide near term revenue, it is too early to offer any outlook as to the amount or when it could be recognized as revenue. Beyond the early adopter program, Freedom Aware is a long term initiative with license and royalty for QuickLogic starting in 2020 and extending for years beyond that.
I would now like to turn the call over to Sue for discussion of the company recent financial performance and our Q2 outlook. Sue?
Thank you, Brian. Good afternoon, and thanks to everyone for joining us today. For the first quarter of 2019, total revenue was $3,200,000, an increase of 6 18% compared with revenue of $2,800,000 in the same quarter a year ago. Of the $3,200,000 in Q1 revenue, sales of a new product were $700,000. As compared with $1,300,000 in the first quarter a year ago.
This decline was due to significantly lower sales of display bridge received EOs as 3 quick AI and a SaaS subscription revenue. Our mature product revenue were was $2,500,000, up from $1,500,000 in the same quarter a year ago The increased immature product revenue was driven by stronger demand from our military, aerospace and defense customers. In the first quarter, we had a few customers each accounting for 10% or greater of sales. Although, this is the same number as the first quarter last year. The customers in each period or different, which reflects our continued success in diversifying our customer base.
Gross margin in the first quarter percentage point from 51.5 percent in Q1 last year. This was driven by increased revenues from mature products, EOS S3, QuickAI, and a SaaS subscription revenue. And a significant decrease in sales of a low margin display bridge and the collectivity products. Based on our current outlook, we believe continued strong mature product sales, along with increasing revenue from IP, software and advanced subscriptions will lead to our quarterly gross margin stay in in the mid-sixty range through at least the remainder of the year. Operating expenses for Q1 were approximately compared with 4,900,000 q11 'nineteen OpEx, our R and D expenses were $2,600,000 and SG and A expenses were $2,200,000.
The net total for other income expense and taxes in Q1 was a $233,000 credit compared with a $99,000 expense in the first quarter last year. In Q1 twenty nineteen, we recorded a one time tax benefit of $282,000 related to the intangibles from the acquisition of SensiML. Net loss in Q1 was $2,500,000 or $0.03 per share. This compares with a net loss of 3 point $5,000,000 or $0.04 per share in the same quarter last year. Now turning to the balance sheet for Q1.
Net cash usage in Q1 was $3,200,000 a decline from $4,000,000 in Q1 last year. Our cash balance at the end of the quarter was $23,200,000, which includes a $15,000,000 withdrawal from the revolving line of credit. Working capital Q1 was relatively flat with the prior quarter. Now let's turn to the second quarter 2019 forecast. Our revenue guidance for the second quarter is approximately $3,800,000 plus or minus 10%.
At this point, this sequential revenue growth of approximately 20%. Total revenue is expected to be comprised of approximately $1,300,000 of new product revenue and $2,500,000 of mature product revenue. The higher new product revenue is expected to be driven by new hearable designs that are starting to move into production a non GAAP basis, we expect our gross margin to be approximately 63% plus or minus 3%. We're forecasting non GAAP operating expenses at approximately $5,100,000, plus or minus $300,000. Within operating expenses, we expect our non GAAP R and D costs to be approximately $3,100,000 and SG and A to be approximately $2,000,000.
After interest expense and other income taxes, we currently forecast our non GAAP net loss to be approximately $2,700,000 or $0.03 per share. The primary difference between our GAAP to non GAAP results is our stock based compensation expense which we expect to be approximately $750,000. We expect our stock based comp will remain in this mid $700,000 range, for the foreseeable future. Finally, in Q2 we expect to use between $3,400,000 $3,900,000 in cash. This will include a one time payment of approximately $300,000 related to the pending move of our headquarters to San Jose in the second quarter.
This move is expected to be net neutral to cash in fiscal approximately $500,000 annually starting in fiscal 2020. With that, let me now turn the call back over to Brian for his closing remarks.
Thank you, Sue. We are very encouraged by the progress we've made this year. With this progress, we believe We also believe that Current customer forecasts project mature product sales will be about 45% of total revenue. We believe revenue from connectivity and display bridge sales will be a little over 5% of the total, and that the balance will be fairly equally split between EOS S3 and the combination of EFPGA IP. Software inclusive of SensiML SaaS and our AI platforms.
Based on our outlook for higher revenue from mature products, IP and software, we believe our full year 2019 non GAAP gross profit margin will be about 64%. This target is 13 transformation of our business model and the dramatic improvement of our value proposition since 2016 when our gross profit margin was only 35%. Over the last two years, much of our progress has been masked by the attrition of non strategic low margin business. That attrition will continue in 2019, but with traction established in our strategic initiatives, I believe our financial progress will become more obvious. With a solid and growing design base spread across an increasing number of customers and a much clearer view of our near term growth insights, We are in we expect our design win activity and the number of designs we are supporting with production shipments will accelerate.
To the extent our customer NDAs will allow we plan to publicly update investors on this progress. These include designs we've won in hearable devices, smartphones, consumer electronics, consumer goods and in industrial IoT driven by our end to end AI solutions. You can subscribe to receive notification of these anticipated press releases and blog posts on the QuickLogic website. Operator, I would now like to open the call for questions.
Thank you, A voice prompt on your phone line. First question will come from Suji Desilva Capital.
Hi, Brian. Hi, Sue. Congratulations on the progress here. You had a higher gross the higher gross margin. So understanding part of that for this year is the mature products being much stronger than a typical year in the past.
When the if and when the mature revenues normalized to prior historical levels, what is the gross margin normalized level say maybe 2020 if that is what? Transpires closer to?
Hi, Suji. This is Sue. I think about that calling the when mature product level down, then our software revenue, SaaS subscription revenue, and IPI revenue will ramp up by then. So we expect our higher gross margin continues.
Okay. So it's sustainable because of that mix shift, then what you're saying?
Yes.
Okay. Good. And then, the second question you guided 20 19 pretty well here with mature and new products. Where do you expect the bulk of the second half new product ramp come from. I know you said something about evenly split, but if you can give us any notion of which 1 or 2 kind of things you have most confidence in supporting the new product ramp in the second half, that would be helpful.
Yes. So equally spent on the new side with EOS S3. And I think we have the line of sight now on those multiple smartphones more than we thought in previous calls driving a lot of that. The hearables finally getting unclogged the fact that we have these people announcing other similar products from the big platform guys. And then we see a lot of momentum building around the the SensiML subscriptions coupled with a quick AI HD case.
Those are probably the the most obvious ones for us. We do have the embedded FPGAIP licenses there. As well. But as we know, those are big orders and they tend to come and go, you know, in different quarters on a sustainable basis. These are the ones we see contributing more so in this year.
Okay. Maybe drilling into that, maybe one quick down. The Japan smartphone, when you have and the 5 models, talk about what a rough sort of unit run rate for those type of models are roughly so we can get a sense how much that's supporting the OS revenue?
Yes. So for their typical smartphone, it's about a 500,000 units a year. And our Our ASPs obviously vary, of course, but we've talked in the past about modeling about a dollar plus or minus for smartphones. It could be higher in some cases. For the feature phone, which we talked about on this call, we have not been in a feature phone before, but I understand this customer, it could be as many as 2 to 4,000,000 for a feature phone per year.
Got it. That's very helpful. And then last question really has SensiML and AI and the whole software and SaaS model plays out, Brian, how should or Sue, how should we think about the revenue model for that, maybe 12 months out a year out what is the composition of that revenue look like between software and IP licensing and SaaS?
So I think in the next year, we're going to see more of that from the SensiML side because that's something where people can buy immediately and start subscribing to the quarterly SaaS by virtue of SensiML being in the market already and us having HDKs. IP licensing is a longer sales cycle convince the customer to license IP for chip development. And so again, in the near term, I think it's gonna be driven from the SensiML side more, and there's gonna be more users. Like, just last quarter, we talked I think 3 for SensiML this quarter is like 10 to 16 and we expect that to continue wrapping quarter on quarter as more people get connected to the SaaS platform Now in the next year, that's when I think we'll really start to see the wheel turning on what's driving from the side by engagement. Because once that template goes public and other people start using that template, that will start driving more incremental IP sales for us and then also be a pivot point for people to license the SaaS platform as well.
By the way, Susie, I just want to come back one thing on the the other components of the near term motive for ESS 3 for this year. I did forget to mention the big consumer electronics win that we showed off at CES this year. So I would be remiss in making sure I went back and covered that. That's also going to be a driver for this year.
And that starts in 3Q 'nineteen or?
Correct.
Okay, great. And then, the number of subscription 3 going 10 to 16, it fair to say that approach is triple digits towards the end of 2019 or is
that too aggressive sort of
a path of ramp up here?
That's absolutely my internal target, but let's see if we can hit that. If I can even get it to half of that, I think we'll be well with on pace to meet the financial goals we outlined for Sensible
Okay. It's very helpful.
A question today. Up next, we'll go to Richard Shannon, Craig Hallum.
Like to, public congratulation on the, the partnership with SiFive looks very interesting. I look forward to watching that, develop throughout the year next. Brad, I'll be honest, a lot of the the the audio of my line here was poor. So I missed some of your comments off I'm, off based on what I heard. I apologize.
I guess let's let's talk first about the size 5 relationship, or maybe you can help us understand the engagement model and how this ramps out here, you know, resources required from QuickLogic to make that a reality.
Yeah. I I also can hear some of the audio quality issue there, Richard. So let me try to answer what I think you asked. So let me get a little bit more color about this whole 5 5 engagement. So, basically, we've done the strategic announcement with 5 We are co developing this template called Freedom Aware Templates.
Once that is made available to people on their website, other folks, other companies can take that template and make their own semi custom SoC. Every time that that takes place, there's an opportunity for that customer to select the QuickLogic subsystem to be a component of that that SoC that's being developed. And when that happens, we'll be getting IP license and potential royalty revenue streams from that. There's also the opportunity for us to provide soft software and access to the SAS tool from SensiML. So you can imagine anybody that uses this template becomes somebody that could be a SAS subscriber.
As well as somebody that can generate more opportunities for SaaS subscriptions and then royalties thereof of the Sensible product shipping and volume. So there's a lot of different revenue paths for us once this is actually out, in 2020. In the near term, as I spoke about the early adopter program, we are expecting to get commitments on this financially from some of these customers asking in the game and get to get early access again, how that shows up as revenue is to be determined, but we are expecting some of that will be coming in from customers for the side 5 engagement.
Okay. That's helpful perspective. Thanks for that. I want to follow-up on Sensible. The previous question I was talking about the pipeline and said you had a goal of getting to triple digits.
What's the what's kind of the obstacle to growing that faster? Just kind of a push marketing model or a pull model and anything that you can do to help accelerate or expand your your funnel and pipeline there?
Great question. So SensiML was a standalone company. I think a lot of it was organic. See on the street trying to get the message out and get people signed on, especially people that had transferred over to Sensible from their Intel days before they spun out of Intel. We've been putting a really big marketing plan in place now to make a strong push into the market, which should include some seminars that we're going to be having with with third party companies like Fogorn to really talk about the benefits of machine learning at the edge.
And we've also reinvigorated reinvigorated our sales channel and our distribution network to be stocking some of these hardware development kits so that it's very low from the point somebody's interested in something with respect to SensiML to buying and getting something up and running on their desk. And that's primarily done with future electronics and Avnet and some of the folks that we have in Asia. Future actually is doing a whole series of AI seminars in Europe. Of which we're gonna be prominently shared throughout the summer, and we're expecting that's gonna create quite a bit of pull for the technology as well. So Yeah.
We're moving from a sort of a small scale marketing strategy to really going big now that we have all of these pieces in place for SensiML tying into the the HDK and what they already have running with other processor companies.
Brian, you've given us some fairly detailed financial targets for this year. And I guess the struggle for investors has been, it seems like you have some great engagements and they seem to get pushed out or re configured or redesigned to some degree. Sounds like you have a lot more confidence in, the designs that you're working with today. If you could help us understand is this a function of the type of customers you're working with? Or there's kind of like a couple of turns through the product design cycle and now they feel like are important or are these platform wins or can you help us out to kind of tie those things together for us please?
Yes, it's a great question. And it's actually a a variety of reasons why not just one. A, I think, firstly, our platform itself is much more mature the sense of the device and all of the software needed to turn it over to somebody else and let them start writing their software and applications on our chip. When we first started on this venture, It was really us flying engineers around to the very few customers we could afford to do that with, having a mature platform is we can turn it over and you really start to open the serve available market. And that's why we're able to get different types of customers engaged here.
Another aspect of this is that There's other third party companies now that are reporting more of their software to our platform. That in turn creates another Salesforce for us because they obviously wanna sell more of their software out to the market. And so we're seeing opportunities come in from there that we didn't have previously. And just getting I guess, more of the distribution channel into the mix now and having them take the the message out further. It's an extension of Salesforce.
And so we're seeing just many, many more opportunities coming in than we had in the past. Now the confidence level in those actually going to production, a, you know, if you if you're getting more times at that, you're gonna have a higher percentage rate of of getting a hit. And I see as we're placing more bets in these different customers, that's increasing my confidence because it's not solely dependent on 1 or 2 guys to go to production. And then we're just seeing, we're seeing these demos from these companies now. They're very mature.
It's for products that are not necessarily new categories of product. They're adding features to existing products. So you can imagine why that's just a natural extension for their product line to go to market with. So all those factors together what makes that happen.
Okay. That's great. I think I'm going to go back and listen to the I can get all of the all of your comments, Brian. So I will jump out of line, but thank you very much.
Thanks, Richard. Thank you.
Our next question comes from Rick Nathan Rivershore Investment Research.
Hi, Brian. Hi, Sue. Congratulations on, moving the strategy forward. In listening to your gross margin, forecast and guidance, You're beginning to sound like an analog company. Is that the strategy you're pursuing, Brian, or something
like that?
Yeah, I'd love to be getting the multiples of analog companies and software. And really, I think as you start to look at how we're repositioning ourselves to the external world, especially with customers and partners, it's really with a high degree of influence on software AI platforms and IP. And that's that's exciting in the market. There's a lot of demand for it and we want to be a part yes, absolutely, we want to be getting more in the analog area of the financial results.
Mentioning AI, late last year, you had a, surge in, quick AI revenues Is that, pull forward still continuing into 2019? Or are there other factors at work here or broader market trends you're capturing?
It's all of it, but I I'd say it's a lot of what's happening now is that people are there's seeing AI and these companies are wanting to figure out how they can incorporate that into their business process. And a lot of the customer that we're engaging with now. They see this as a way of materially getting an ROI back. It's not just a a voice feature, a a consumer feature, but it's a real ROI. And so we are seeing a lot of companies now coming out wanting to speak with us about how they can incorporate that.
And what what we have to do is we have to make it really, really easy and frictionless for them to do that evaluation when they're not familiar with something. And that's why this new HD launch we have with SensiML makes that so darn easy. And I think that's what's leading to a lot of these increase in opportunities and the big sort of surge up in number of people we think will be subscribing to the SaaS from SensiML in this quarter and subsequently through the
Speaking of which, you mentioned that you expect, I think you said 10 to 16 new, SensiML customers in, in Q2, And you mentioned that one customer alone is going is buying 10, design kits for each of its ten different divisions. Is that what you said?
Yes. I did. And that sort of reinforces the point I just made. When these big companies want to see how can they incorporate AI and their business process. They want as many business units as possible to look at that.
And so, you know, a big 50,000 person company or thousand person company buying one development kit doesn't make any sense, right, when they have all these different product lines. So I think that's a really strong message from that company that they're serious about AI and their serious about figuring out how they're going to make it work for them.
Okay. Thanks, Brian. Appreciate it. Thanks, Eric.
Thank you, Eric. And everyone at this time, there are no further questions. I'll hand the call back to Brian Chase for any additional or closing remarks.
Yes, we'll be participating in several investor and industry events this quarter. A few of the highlights include the Oppenheimer Fourth Annual Emerging Growth Conference in New York on May 14th. The risk 5 workshop in Zurich Switzerland from June 12th to 14th. Silicon Summit in Santa Clara, California on June 18th where I will be presenting and participating on a panel. The Sensors Expo And Conference in San Jose on June 26 27th.
All these events we plan to attend will be available on the events section of our website. Our next conference call is scheduled for Wednesday, August 7th at 2:30 PM Pacific Time. Thank you
We would like to thank you all for your participation. You may now disconnect.