Azenta, Inc. (AZTA) Earnings Call Transcript & Summary

Hello, everyone. Thank you all for joining us today. My name is Viviana Limon. I'm from the JPMorgan health care investment banking team. And it's my pleasure to introduce to you the Brooks Automation team: Steve Schwartz, President and Chief Executive Officer; Lindon Robertson, Chief Financial Officer. [Operator Instructions] I'll now hand it over to Steve.

Viviana, thanks very much, and we're really delighted to be here at the JPMorgan conference. So thanks, everyone, for attending, and Viviana, thank you for the opportunity to present. Today, Lindon and I will share presentation for you just to give you an update on the company, and to give you some outlook as to how we feel the business is going at this moment. And I understand that you may have reference to the slides, I'll try to call out the numbers as I page through, so you could follow along. But I'll move first to Page 2 and just remind you of the safe harbor statement. Today, as always, we'll be making forward-looking statements. A more complete version of the safe harbor statement is at www.brooks.com. On Slide 3, just a quick outline for the presentation today. We'll talk about the company is truly driving performance. We've delivered very strong profitable growth from 2 strong growth platforms, Sciences and Semiconductor Capital Equipment. Lindon will follow-up with very strong references to a profitable model and how we continue to sustain this going forward, both our investment strategy and the means by which we deploy capital to drive the strong growth that we referenced. On Slide 4, I just give a snapshot of the company, Brooks at a glance. As I mentioned and as we'll talk about today, 2 very strong platforms: one, Life Sciences; one, Semiconductor Solutions. And you can imagine, particularly in this COVID environment, 2 essential businesses, of which we're a particularly strong participant and supporter of essential businesses. And we'll make reference to that. Although not driven specifically -- our business is not driven specifically by COVID, the technologies that we bring have been instrumental, and we're proud of the role that we play. We're a company that finished our fiscal year. We're a September 30 fiscal year-end. We finished fiscal '20 at the end of September just shy of $900 million in revenue, a 15% year-over-year growth from '19 to '20, more than 20% growth from '18 to '19. So we're on a very strong growth profile, and we are a global company. So we are global in Semiconductor and in Life Sciences. We have just more than 3,000 employees. We continue to grow based on activities in many regions and by the addition of really strong technical talent around the world. On Page 5, we show a brief recent history of the company. On the far left, you can see a 4-year growth pattern of 20% CAGR in revenue, very strong revenue growth. And in the center, you can see gross margin improvements that come from operational excellence. We have a very strong focus on the operational performance capability of the company so while we grew -- while we doubled revenue over a 4-year period, we put 7 more points on to gross margin, and it gave us a 6x increase in the EPS for the company. So very strong financial performance based on growth. But I want to emphasize that we're able to grow and continue to invest. So this is not something we're squeezing out of the business, rather the growth provides us opportunities to add gross margin to continue to make investments to drive future growth. So this is a cycle that we're on. It's a very strong investment pattern supporting revenue growth. More revenue growth, more investments. So we're very pleased with the performance to date. And you hear from our remarks and you hear from many employees of Brooks that you talked to that we're particularly pleased with where we are and the opportunities that lie in front of us because we do believe that we're in the earliest days of a really significant transformation, and we're really pleased to be a part of it. So I'll turn you to Slide 6, which is a visual snapshot of a pretty significant transformation in the company. You can see more than doubling of revenue from 2015 to 2020, an enormous growth in both the fraction and the size of the business in Life Sciences. But it's important to note that during this period, we also grew the Semiconductor business. We grew Semiconductor business considerably during this period. We used the funds and the financial capacity in the Semiconductor business to fund the Life Sciences portfolio. And where we are today, as we begin calendar 2021, we have 2 sizable businesses, 2 very strong platforms, both providing growth and 2 businesses able to stand on their own to generate cash and to function as 2 growth engines for the company. And we're particularly pleased with the position that we're in today. And we do feel that because of the scale that we have now in 2 businesses, that we're positioned with a really strong potential in both segments. On Page 7, I refer back to the outline of the business and turn you to Page 8, where we'll start with Life Sciences. Just a very quick look at what we do in Life Sciences. And we're all about the sample. The biological samples that are used as fuel for discovery and ultimately procures that are part of the current environment. And as everyone's aware, particularly strong growth and particularly strong interest in both the research and the clinical development of capabilities. Our essential function here is in the management of samples and the measurement of samples that are critical for all of the research and discovery. So in the category of what we do, we're about the cold chain management of samples. We have products that are used to store and track the products we -- the samples. We have consumables and instruments that are used to format these samples, both for storage and ultimately for workflow management. And we also have a capability now for genomic analysis of these samples as well as gene synthesis. So we handle samples, we manage samples, we store samples, and we provide value to these samples as a critical capability to life sciences companies, to large pharma companies, to academic and research functions. It's a critical capability for them and it's core to our business. So we provide that essential value. We believe that we're best-in-class both from a science and engineering and technology standpoint to be able to format and manage and store and track these samples. The quality, integrity of the products that we have and the services that we provide as well as fast turnaround time, we think, add tremendous value to customers. And it's exemplified by the revenue growth pattern that you see on the far right. Over the period of time from '16 through '19, this was organic and inorganic growth. We were in a pretty significant period of acquisition. The growth that you see, very strong high-teens growth from '19 to '20 is mostly from organic growth. So we're in a very strong sizable platform now. We have a very strong balance sheet. Lindon will reference that later. So we have the ability to continue to do acquisitions but we have a strong business now that provides tremendous opportunity for organic growth, which we've been delivering here over the past few years. I'll take you to Slide 9 and show you a little bit more color into the segmentation of the business in our life sciences space. We have a very diverse revenue profile, the ability to serve both from a products and a services standpoint, which we show in the blue and green colors here. The 2 segments inside of Life Sciences, the first is products. And this is the storage, the automated stores, ultracold stores that go from plus 4 degrees C, all the way down to liquid nitrogen cool temperatures at minus 190 degrees C where cell and gene therapy applications are growing very rapidly. We have a services component where we take care of these installed base systems. And on the consumables and instruments, the formatting, the automation of some of these workflow lines and the ability for us to have cryogenic consumables that are used to store these samples in cryogenic systems is a really important part of our business. But it's storage formatting and the management business on the product side. On the services side, we added a company, GENEWIZ, in November of 2018. They provide next-generation sequencing and Sanger sequencing. A very strong sequencing platform. They have a rapidly growing synthesis business that allows us to continue to add considerable value,. especially when we hit in the COVID environment, we were able to do some faster and very important synthesis for the Centers for Disease Control early on in the March time of 2020. Inside this business, we also have an outsourced sample management business, we call the sample and repository solutions business, where we'll take samples that customers no longer store on site. We'll manage them off-site for them. And when the customer requests of us to perform measurements on samples that are in our care, we have a very efficient mechanism to retrieve the samples from our store to perform the measurements, give the data back to the customer and return the samples to storage. So there are a number of synergies that are coming forward in this complete services business where we can provide storage and management -- sample management services for customers for whom we perform genomic analysis. And by the same token, for customers for whom we store samples, we can provide genomic analysis. And even in the last quarter, we announced that we're beginning to see some synergies here. We have 2 contracts that are combinations of the services and measurement business, which tallied more than $1 million. And we anticipate that as we go forward, we'll continue to build on those synergies and to take advantage of the revenue capabilities provided by this very unique portfolio serving the life sciences industry. What's important to note here is, although we're still at a run rate that's around $400 million, we serve a $10 billion market opportunity. And the ability for us to continue to grow in the high teens is helping us to capture more and more of this opportunity. So we see a $10 billion-plus market opportunity as one that provides tremendous opportunities for us, and we do believe we have a portfolio aligned extremely well to be able to capture this. On Slide 10, I show you just a few of the names of the customer base for us. The majority of our business comes from pharma and biotech, although we have considerable offerings now expanding in health care and clinical. And we have technical capabilities that serve the academic and government customers here. They're more price-sensitive, but we have technologies and capabilities. We're beginning to expand related to very specific research capabilities as well as the management of really rather complex and distributed biological sample collections that exist in academic and government. So we're expanding across this portfolio. To date, we serve about 7,000 life sciences customers. In 2020, we added more than 1,000. So we continue customer capture at a rapid clip. And we do serve the most demanding customers in the world. So we're a known entity, and we continue to gain presence. And we do have offerings in every segment here, and we continue to build the value-added capability to serve more and more of these customers. I'll turn now to Slide 12, and I'll talk a little bit about the other strong growth platform we have in the Semiconductor Solutions business. It may not be quite as familiar to many of you who are attending the JPMorgan conference. So I'll give a little bit of introduction. On the far left of Slide 12, you can see what we do. Basically, we handle the semiconductor wafers in an automated fashion. So we move the wafers through a very complex processing line. We have the ability to handle wafers at extremely high temperatures. And we handle wafers up at 800 degrees C, with unbelievably precise placement, contamination-free and in a vacuum environment. So it is a very complex environment, but a very -- it's an essential capability that we provide to equipment makers and to factories all over the world. We also have a contamination control capability. That as the semiconductor manufacturing has become more complex, the management of contamination has become even more critical. We've built a contamination control business, which has proven to be a very strong secular growth driver for us and it's helped us to supplement the wafer-level automation business and really put us into a very strong growth position in semiconductor, which I show on the right side of this chart, where over the past 4-year period we had a 12% cumulative annual growth rate. And even most recently, the fiscal '19 to fiscal '20 was a 14% growth. Our value proposition exists in the very precise handling that we have and very unique technical capabilities that we've built over decades. It's not a business that's easy to be in, and it's even harder business to get in. But because of the fact that we have these precise technologies focused around semiconductor, it puts us into a very unique position as a critical supplier across the entire semiconductor environment, which I attempt to highlight here on Slide 13 because there are 2 very strong growth drivers related to Brooks' position in semiconductor. The first is the sheer volume demand of semiconductor manufacturer. The more wafers that are manufactured, the more capacity that gets added, the more process tools are shipped, the more components that we put into those process tools. And very specifically, the drivers like 5G, artificial intelligence, autonomous vehicles, the Internet of Things, high-capability computing, all of these are consistent drivers that are stacking upon one another and provide what we believe will be a tremendous long-term growth cycle for semi. And we believe that these will be sustained for not years, but decades to come as there's an insatiable appetite for computational power and the kinds of capabilities brought by semiconductor. The second drive here -- driver here is really related to Brooks, and that's the complexity of the manufacturer of integrated circuits. 30 years ago, it took about 7 elements from the periodic table to manufacture a state-of-the-art semiconductor. Today, about half of the periodic table is necessary to construct a state-of-the-art semiconductor device. This complexity bears out in the chemistries that are required, the process temperatures that are required and the amount of contamination that gets added to put these very complex structures together and needs to be removed periodically throughout the process. So the chemistries that are involved, involved more and more vacuum processes. So more of the -- a higher percentage of the tools that are used to manufacture semiconductors have performed under vacuum. And we have a very strong #1 vacuum robotics position. So these tools, by and large, use a Brooks vacuum robot. And the number of times a wafer needs to be cleaned before it goes to the next process step has increased the amount of contamination control business we have as the wafers get cleaned more frequently in the manufacturer of a semiconductor. And the wafer carriers need to be cleaned more frequently as well. So these compound both volume and complexity of the device, compound the secular growth drivers for Brooks' business, and it's what led us to outgrow the semiconductor industry now consistently for the past 5-plus years. The thing that I will emphasize also is it doesn't matter which technology. Anything that needs -- that adds capacity of current technology in the semiconductor manufacturing process, whether it's logic, memory, NAND, DRAM or foundry, all of these increases in capacity take more process tools from Brooks as we supply capabilities for all of those process technologies, irrespective of the type of semiconductor device that's manufactured. And finally, I turn you to Page 14. From a semiconductor standpoint, we started as a company supplying components to original equipment makers, OEMs, and they're in the central bucket there, vacuum automation to the strongest leading and Tier 2 equipment makers around the world. When we entered the contamination control business, this allowed us to begin to sell products directly to the end use -- the end manufacturers for chips, Samsung, Toshiba, Taiwan Semi, and they buy those products directly from us. And there's been an increase -- another growth vector, if you will, where the wafer stays in its whole wafer configuration deeper into the back end, into the packaging step. And this advanced packaging capability has opened up an entire new market for us. You can see on the right names that you may not be quite so familiar with. These are Tier 2 equipment makers who also employ our vacuum automation capability. So our market has expanded and the offerings that we brought to this expanding market have also expanded pretty significantly. We now have about 60% of our business from equipment makers and 40% from device makers. So we broadened the portfolio. We participate in more segments. And each one, we have tremendous value and much more value than we were able to provide even 5 years ago. So the current state of the business, the current opportunities provided by Life Sciences and Semiconductor, we believe, are tremendous. We think we're in exactly the right positions to be in. We'll continue to take advantage of the complexity, the road maps to bring technologies and capabilities, to be able to serve all of the customers who we've talked about today for the years to come. But I'll turn the presentation now over to Lindon, who will talk to you about how we're taking some of these capabilities and technologies, what we're doing from a strategic standpoint to continue to lever these capabilities and fuel this growth engine that we have.

Great. Thank you, Steve. And everyone, I'm on Page 16 now. And just to remind you, the strategy that we have today has been consistent for a number of years. And that is, as Steve has outlined and highlighted, that we continue to advance each segment. We're extending leadership in our core markets, and that's our conviction that we want and we want to establish and maintain in which we have and will continue to operate the business and make our investments in that direction. We advanced the growth of Life Sciences toward our investments a little faster. On an organic and acquisition basis, we expect that the longer-term growth rates of life sciences generally exceeds the semiconductor space. Acquisition investments favor the diversification that we set out to do and also helps expand the margin structure of the business on the value of the Life Science business. However, with that said, we make numerous investments in the Semiconductor business, and we've tuned that portfolio to also be a growth portfolio. And as Steve has highlighted, we've seen double-digit growth over the last 4, 5-year period. Driving margin expansion is a priority for us. And our inherent model of investment, focusing on an ROIC improvement period over any investment period to establish something better than weighted average cost of capital in the near-term years drives us toward looking for growth and EBITDA expansion. And so this is a natural for us. And we know that produces the multiples that we all like to see. Balanced and disciplined capital deployment. We do have currently, a little over -- or in our last quarter's announcement, we shared that we had over $300 million of cash on the balance sheet. No net debt. We have about $50 million of debt. So we're in a net cash of $256 million and the access to quite a bit more. We have a dividend in place. So we give some back to shareholders. But obviously, our primary objective is to grow the business. We're beating it, and I'll share a little more with you on that as we step through just the next very few pages here. So on Page 17, I'll first outline for you the 2022 Brooks target model. And I should say upfront of explaining this, that we put this model out in 2019 at our Investor Day, and we've had a discipline for the last 7 years to give you a 3-year view of where we're going and track ourselves to that. And as we approach the end of the second year, we tend to update that model for you for the next 3 years. So you can perhaps expect a target model update later in 2021 before we get into the 2022 year. And we'll tell you then where we're headed for 2024. In this model, we're tracking really well. On the Life Sciences side, on the left side, you'll see that we -- we're looking for 16% CAGR between 2020 and 2022. Well, that's also what we outlined from 2019, and we happen to perform last year at 16% growth rate. So we're right on track. And we're ahead of track on the gross margins we originally set just this last year-end, which was -- September 30 is our year-end. So in our -- the first week of November when we updated with the results, we increased the gross margin target for 2022 to this 48% to 51%. There was about a 3-point lift. And we got 1 to 2 points of that drop down to operating margins as we have invested a little more operating expense. But we were already operating in the fourth quarter at just over 16% operating margin in the Life Sciences. So we have good confidence that over the next few quarters and as we enter 2022, that we will be solidly operating on a consistent basis by the time we get to 2022 in this range. And to underscore, there's leverage in that model. So we just recently crossed over a run rate of more than $400 million on an annual basis. So 520 gives us another $100 million of size, so I think you can see the arithmetic will support that quite handsomely to be confident in that range. In the Semiconductor side of the business, the model has been right on track. We indicated, in fact, that we would grow about 12% over the 3-year period. We grew 14% last year. So it shortens the growth on the midpoint to 11. You'll notice $100 million range in 2022. And this is the cyclical aspect of the business. We don't know if it will cycle up or down. But that's still a 7% to 17% growth rate. And as I said, the midpoint is about 11%. That's our base expectation is that we should be close to the midpoint, we believe. Our margins have been operating in this range. Again, in the fourth quarter, we were up over 43% in gross margin. And in the operating margin structure, we were just barely over the 20%. So again, we've already touched this range in this last quarter. Give us this year to prove that point consistently. We think that as we enter 2022, you'll see us performing consistently in this range on a quarterly basis. In the sum of the total, this gives you a 13% growth business over the next 2 years, consistent with what we had set out in our model. Operating margins, you could see has the potential to be at 20 or better in our midpoint. We got -- gained more confidence as we improve the Life Sciences and because of the range on Semiconductor we didn't raise this model. But clearly, I think we all inside Brooks have more and more confidence that we'll be at this range or better. And then ROIC of 13% is an improvement track. I will highlight to some of you who are not as familiar. Two-plus years ago, we acquired GENEWIZ business and put a sizable amount of goodwill in the Life Sciences business. And so that brought our ROI -- or I should say our ROIC down to about the 8% level. And we are very focused on the improvement all of the time, continuous improvement in the ROIC. And so that's on a track from the 2019 range of that level toward 13%. And we're tracking very well to that as well. So I'm going to move you forward to Page 18, makes it a little more explicit in the numbers that we're expecting. And I think that perhaps one of the key points to call out, in 2020, we grew 15%. That was, again, 14% in Semi, 16% in Life Sciences. I think that gives you that nice confidence in that revenue that I just outlined that will be between $1.1 billion to $1.2 billion. I won't go through the entire structure here. But as you get down to the bottom, again, we didn't raise the model, but we certainly have higher and higher confidence that we're well within this range. This last quarter, our EPS was $0.47. So we're getting to that run rate of the bottom end of the range, and we should be steadily into this range and perhaps move through it as we get to 2022. So very pleased with the progress to date inside this 3-year model and look forward to more than satisfying our investor base with that performance. Then turn to Page 19. I just want to touch on our capital deployment. Over the last 5 years, we have deployed over $1.2 billion. The majority of that has gone to M&A investments to continue building out the portfolio. But it's important to note that our first and foremost priority is to make sure we feed the business with the CapEx and the organic growth investments. And you can see that we have a fairly consistent level, not high capital intensity, more low capital intensity. I will highlight that our 2021 guidance is about $65 million of CapEx, where 2020 was $40 million. When I say $65 million, it's a range of $60 million to $70 million. And we do have about $25 million in there for our building in China that we're completing. It's not really operational. It's replacing 3 leased buildings, and it's a good replacement cost basis. And we look forward to having that. And it will provide us the growth that we need in China, which is one of our larger operational sites for GENEWIZ, outside of the U.S. that is. In the organic growth, we do feed the business with R&D as well and with SG&A, of course, but this is focused on the R&D spend. And again, we do pay a dividend. Up there in the left corner, you see that we pay about $0.40 per share on a quarterly basis currently. So if I move forward to Page 20, we'll just talk a little bit about the deployment of the M&A. We have a 10-year track record with Steve at the helm of the business -- a little more than 10 years, actually. Started in 2010. We brought the company onto this path of diversifying with his background in semiconductor, but we had this expertise in automation and cryogenic capabilities. It allowed us to enter the cold -- ultracold storage automation. And we progressed across time, moved into the outsourcing space of life sciences, of the Biostorage acquisition by -- in our 2016 fiscal year. And then as I said 2 years ago, in the beginning of our 2019 fiscal year, we acquired GENEWIZ, which put us into the analysis of sequencing and also the synthesis of genes as a service business solidly. Most recently, we acquired a company here at the end -- Trans-Hit Biomarkers at the end of the time line here that actually procure samples on behalf of customers. So they help to -- they take the customer requirements, identify those samples, locate them in the world, identify them, transport -- acquire them, transport them and deliver them to the customer on behalf of the customer-specific requirements. Now along this line, I'll highlight -- while I spoke about the transformation of the Life Sciences business, the blue highlights that we've made investments in Semiconductor as well. And notably, we acquired in 2014, this DMS business with contamination control. And that's established itself as a handsome part of our portfolio as well in the Semiconductor business. So -- and along the way, we've also divested portions that we think good values for the business and for the right time for us and for those businesses, put into the hands of people who will make further investments among their priorities where they didn't make ours. So it's a focus on tuning the portfolio for growth and value and margin. And with an ROIC lens, we think we have kept the company on a good deployment track of our capital. Turning to Page 21. On a shorter-term basis, I'd just highlight for you what we said at our last earnings call about the December quarter. And if you look across the last -- the prior 4 quarters, I think the theme you'll pick out that despite being the COVID environment through the year, which was quite rocky, the results were quite stable for us and, in fact, accelerating as we move through the second half of our fiscal year. So we're quite pleased with the performance of our teammates that stayed on active duty in the 2 essential businesses and couldn't be more proud of that. But also pleased with the 2 markets that we're serving, that we're able to participate and step up to those challenges. In the first fiscal quarter of our year that finished in December 31, we'll be addressing that in our upcoming earnings announcement. So I'll leave the guidance on the table as we stated it back at that time. To wrap up before we go to Q&A. I'm on Page 22. We have -- we really are in 2 strong markets. We have the portfolio for leadership, and we maintain that leadership in each of the spaces that we serve around the automation in Semiconductor, around sample-based services in Life Sciences. The financial models, as I think you can see, are really solid and sound. We're at points in the leverage curve that continues to produce nice leverage. And we have the growth momentum and the growth trajectory that we see in the market. The market's beating it, our portfolios answering to that. And our track record of capital deployment, I think we put that capital to work, and we're quite diligent on this. So we put it to work in a good way and continue to add value to the company. And of course, the results that Steve started the presentation with, I think, speaks to that. And we continue to drive towards those targets that I outlined, perhaps doubling our EPS from the 2020 to the 2022 time frame. So with that and the momentum and the operating leverage summarizing the model, I'm going to stop at this point and we will open up for Q&A.

And I see now there's a question that says, "How should we think about the impact of the global semi shortage impacting your business as well as the TSMC CapEx projection of being up 54%? " And Steve, I may let you talk about that. You and I had some conversation about the recent announcement on the CapEx robustly.

Sure. So I'll answer actually in the opposite order. I think the CapEx is always a plus. I think the shortage of the semiconductor that you read about is part and parcel of what's driving some of the boom here. So it's a strong period now for semiconductor, but there are pervasive growth drivers that we think will persist. TSMC's announcement yesterday about a really strong investment, I think, is indicative of what we anticipate we'll see in 2021 not just from TSMC, but from memory makers. As we understand, DRAM is also approaching undersupply condition. So it's a good period right now. It's consistent also. This happens to be a pretty significant increase in capital spend year-over-year, but it's not unusual over a 10-year history to have the next threshold of investment come like that. So it's very strong, very encouraging for us. And because it's for both capacity and for the next-generation node, so there'll be some investment in build-out of 5-nanometer and what we understand to be a pilot line for 3 nanometer, we think that bodes well for the future of semiconductor as not just the capacity, but the next-generation technology, which will bring even more enabling consumer and end-user products that will continue to drive the semiconductor cycle. So we're bullish about that. I think everybody was surprised a little bit by the magnitude, but it's consistent with what we've been hearing in terms of what the investment will look forward to in 2021, anyway.

Okay. So we had another question that looked very much like that. And there's -- I'll identify one more question, Steve, that's a common one that we get. That is the M&A focus going forward. We have -- we outlined that we have deployed capital. And then our M&A focus is BioStore support in Life Sciences, but been active in semi. Maybe you could highlight where we were.

Sure. So we're -- we have -- the advantage we have right now is we have a very strong product portfolio, both on the Semiconductor side and Life Sciences side. We've been in the teens growth, and we anticipate the market opportunity will continue to allow us to sustain the growth rate for a period of time. But we also see opportunities to add adjacency, to add a little bit more capability, particularly in the Life Sciences side, as the number of opportunities that exist in Life Sciences are greater than Semi. We haven't made an decision yet. Every time there's an opportunity in Semi that's the right one, we've been able to make that investment. Similarly for Life Sciences. But we've been active in pursuit of different opportunities. We think the M&A environment after initially 4 or 5 months have been quite slow in the beginning of the pandemic, has certainly become a lot more active. There are a lot of good targets out there we'll continue to assess. We'll stay inside of the ROIC framework that we have, but we're encouraged by the environment. We think we have a very strong balance sheet and the ability to do another transformative acquisition in the Life Sciences side. So from that standpoint, we're active and we're encouraged. I just want to emphasize to everybody, we're also in an environment where the organic growth opportunities are tremendous. And we continue to take strong advantage of them, and the team is working hard to continue on the pace that we've been on.

Yes. So we don't have other questions showing up on the board. So at this point, I think what I'll highlight is just these last points that Steve made. I would just emphasize how fun it has -- it always is in building a business, but in this particular space, it's particularly rewarding to see the Semi business accelerate in the environment highlighted by the questions from the interested investors and also be able to respond in the COVID environment directly through the life sciences space and contribute back to the solution. So with that, I'll leave you with the thoughts of the business model, the leverage we have going forward. And I know we certainly didn't address the results of the December quarter. We look forward to -- for everyone to tune in with us as we announce the earnings in the upcoming earnings call in the near future. So with that, thank you very much, Viviana, for having us. And I think that wraps us up for the conference. Thank you.

Okay. Thanks, everyone.