Baylin Technologies Inc. (BYL) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the Baylin Technologies Inc. Fourth Quarter 2020 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I'll now turn the call over to Mr. Daniel Kim, Executive Vice President, Corporate Development of Baylin Technologies. Please go ahead.

Hello, and welcome, everyone. Thank you for joining us this morning for the fourth quarter and full year 2020 earnings conference call for Baylin Technologies. Joining me is our President and CEO, Randy Dewey; and our CFO, Michael Wolfe. We will all be available for questions at the end of the presentation. Before we begin, let me make it clear that our comments today will include statements and answers to questions that could imply future events such as our 2021 prospects and financial performance and could include the use of non-GAAP and non-IFRS measures. Though it is obvious these statements are subject to risks, uncertainties and assumptions, accordingly, actual performance could differ materially from statements made today, so do not place undue reliance upon them. We also disclaim any obligation to update forward-looking statements except as required by law. I ask that you read our legal disclaimer and refer you to our risks and assumptions outlined in our public disclosures, in particular, the section entitled Forward-Looking Statements and Risk Factors in our annual information form for the year ended December 31, 2020, and our filings, which are available on SEDAR. Q4 and full year results were released yesterday after market. The press release, financial statements as well as MD&A and annual information form are available on SEDAR and our website at baylintech.com. I would now like to turn the call over to Randy.

Thank you, Daniel. Despite the ongoing challenges we are navigating through, we have started to see some very promising signs, a healthy pickup in our backlog and positive momentum in the form of project delays that are now moving forward. We are more optimistic about our more robust returns starting in the second quarter. Our order backlog is building in all 4 business units. Cellular stores are reopening in North America and soon in Europe. Cruise ship activity has picked up, and demand for our SATCOM products is now increasing. In January, in fact, SATCOM had its highest order booking in the past 3 years. Planning for stadium cellular upgrade programs, which were delayed in 2020 have now commenced. And the infrastructure had their best week in bookings since 2019. In addition, the completion of the C-band auction in December was absolutely a very important step forward for us. We are starting to see a pickup in capital spending amongst the U.S. wireless carriers. But the final piece of the 5G puzzle now put in place. While all these positive developments are expected to improve financial results starting in the second quarter, the corona pandemic, of course, continues to impact operations in the fourth quarter of 2020, which resulted in lower-than-forecasted revenue and profitability. We expect this to continue into the first quarter of 2021, in particular, infrastructure products and SATCOM product revenues have been lower than expectations, while the C-band auction was finalizing. The delay in finishing our Massive MIMO factory in Vietnam due to travel restrictions continues to stretch out the timing of the start of revenue until the second half of 2021. Airline and marine travel industries obviously fell significantly as an industry, which had an impact on our business as well. This had a direct temporary impact on SATCOM product revenue. In addition, despite a recent cellular store reopenings, the fourth quarter COVID-19 lockdowns in Europe impacted cellular sales, resulting in significantly lower sales volumes and delays in new model launches. We have not lost any customers or orders, but the softer period has affected the business on a short-term basis. Our focus continues to be on securing new orders and longer-term contracts while continuing to implement the cost-saving initiatives that commenced in the fourth quarter of 2020. I would now like to turn the call over to Michael to provide you with a little bit more commentary and details on our financial results. Michael?

Thank you, Randy. Revenue in the fourth quarter of 2020 was $25.6 million, a decrease of 14.8% compared to the fourth quarter of 2019. Infrastructure products had the largest revenue decline in the quarter followed by SATCOM products due to the reasons that Randy outlined. The decrease in revenue in the fourth quarter of 2020 compared to the third quarter of 2020 was mainly due to a significant decline in Asia Pacific revenue, primarily in the second half of the quarter. Lower than budgeted revenue, combined with a less favorable revenue mix in the fourth quarter compared to the prior year resulted in a lower gross margin, 26.3% compared to 35.8%. Also contributing to the lower gross margin in the fourth quarter was a manufacturing issue with one of the Asia Pacific platforms. The issue has now been substantially resolved. Due to a continued focus on cost reductions, operating expenses in the fourth quarter, excluding goodwill impairment, decreased by $2.6 million compared to the fourth quarter of 2019. A portion of the decrease was due to government stimulus received in Q4 under the Canada Emergency Wage Subsidy. However, the subsidies were offset by additional costs related to personnel protection equipment for employees and safety measures implemented in all of our facilities to reduce the risk of employees contracting COVID. In addition, the wage subsidies have allowed us to prevent layoffs and terminations that may have otherwise been required. The Canadian federal government extended the wage subsidy and rent subsidy programs to June 2021. We expect to continue to receive subsidies under these programs in Q1 and Q2. In addition, the United States implemented a second draw under the Paycheck Protection Program. We are expecting to receive forgivable loans from this program in March and April. The financial impact of COVID in 2020 on the Advantech and Alga businesses added to the already prolonged integration path, which is nearing completion, but has impacted recent financial performance. We do expect to see improved results going forward. We performed our annual impairment test to determine the recoverable amount of the company's goodwill. Due to lower-than-forecasted financial performance of Advantech and Alga, we concluded that the recoverable amount of the goodwill is less than the carrying value, resulting in a goodwill impairment charge of $3 million. Goodwill has been decreased from $18.9 million to $15.9 million. Despite the impairment charge, we remain convinced that the Advantech and Alga acquisitions have significantly enhanced the company's position in the wireless communication industry, and we remain confident that the financial performance expectations will be achieved. At December 31, we had a cash balance of $11.2 million and access to approximately $22 million of revolving credit facilities, of which $10.1 million was utilized. We had the option to defer the term loan principal repayment on September 30, and we elected to do so. Quarterly principal repayments of USD 750,000 resumed in December. Capital expenditures in 2020 were $7.1 million, of which approximately $5.5 million was for the new factory in Vietnam, primarily in the first quarter of 2020 prior to construction delays caused by travel restrictions. The construction delays did allow us to fund the capital expenditures incurred to date from cash flow. However, in February, we drew $3.1 million from a credit facility established in Vietnam. The funds will be utilized for the remaining capital expenditures and working capital when operations commence. I'll now turn the call back to Randy.

COVID-19 is slowly losing its grip on our end markets, though this continues to be an issue at this time, affecting our fourth quarter financial results and carrying over into the first half of Q1 2021. The size of recovery are becoming more apparent and momentum in the business has noticeably picked up. The Massive MIMO market and our factory completion was stalled due to the pandemic, but we expect to get this business started in the second half of 2021. The opportunities for our company in 5G, LEO, Wi-Fi 6, automotive and military are very exciting in the backlog growth. New projects recently awarded and the opportunities we are negotiating at this time give us excitement about what lies ahead. Our mid- and long-term opportunities are growing and the outlook for the balance of 2021 is very positive. So I'd like you to remember 3 things from this call, which I believe really summarize the current situation. First, we've been very aggressive to cut costs, get the business platform structured for the return of volume, which should produce a lot of gross profit leverage. The second is the C-band auction caught us really on 2 fronts. Our telecom customers couldn't spend on 5G because of their frequency allocation and success was really unclear until the auction was completed. The other impact was our SATCOM customers who were selling their C-band didn't have the revenue from the auction available to invest in their own infrastructure; 2 of our 4 sectors were really held back because of this auction and its delay. Now it's over. Frequencies will move into the hands of the telecom buyers in the second quarter, and revenue generated from the auction can now flow into the bank accounts of our SATCOM customers. This gridlock has ended. Third, we are approved in the 5G network build-out plans, which are finally about to see acceleration. Additionally, as the new LEO constellation has commenced their space build-out, and now the ground infrastructure and the ground network build-out is set to commence this year and our Summit Series 2 product recently launched at Advantech has well positioned the company. We are at the starting blocks of 2 major industry trends that have an impact on our company. I appreciate that COVID put the brakes on a lot of this excitement because these are not dissimilar to what we would have said a year ago, but the pandemic had an impact, of course, on the last 12 months. And the challenge that presented us was difficult in many respects. However, the signs are there that the recovery is imminent and the technical issues of C-band and other things have finally cleared. So we're enthusiastic about the road ahead. And for me, that concludes my formal remarks. Operator, if you could open up the line for questions that would be great.

[Operator Instructions] Your first question comes from the line of Bill Zhang with Raymond James.

So for Q4, you had savings of $3.8 million from operating expenses. So with annualized savings of $20 million going forward, will we see further improvements in Q1 and beyond?

Well, we've implemented a lot of the cost-saving initiatives, and most -- a lot of that was done in the fourth quarter of last year. So it carried on into Q1. There might be some additional ones. But the level of operating expense in the quarter is a pretty good number, I think, going forward. So I wouldn't expect to see large, large decreases. We will get some benefit from some of the subsidies we will receive, but those are short term in nature.

Okay. Makes sense. And on the topic of wage subsidies, what was it in the quarter? And can we expect a similar amount in Q1 and Q2 for fiscal 2021?

I mean, as you know, we use those wage subsidies for the purpose that they're intended, which is maintaining and keeping employment up. So we really haven't reported what the wage subsidies are. But as I mentioned, they are used for the additional costs that we incur related to COVID and keeping employment levels at a level that we want to keep and have maintained over the last little while. So we aren't reporting separately though the amounts we're receiving under the wage subsidy programs.

Okay. Okay. That's fair. And as the economy recovers this year, how should we think about your selling and marketing expenses?

So there's -- with the travel restrictions still being there, there's no doubt there'll be a slight uptick coming at the right time. Of course, as the world has now become much more accustomed to virtual meetings, I wouldn't expect us to go back to sort of pre-COVID levels of travel expenses. But that would be the only area that we would certainly see a slight uptick. I wouldn't expect that until the second half of the year to be quite frank. I think the first half of the year as we continue to keep our expenses down and as we see the business and the pent-up demand starting to return, there will be some recovery. Trade shows haven't really rebounded in quite -- in the physical sense. They're certainly on the virtual sense. So we're doing lots of trade shows remotely. I would see that continuing for much of this year, though there may be the odd trade show or 2 that we would attend in the second half of the year. But right now I don't expect a large uptick.

Your next question comes from the line of Daniel Rosenberg with Paradigm Capital.

I was wondering about the outlook. You guys mentioned Q1 being comparable. Is that -- do you start seeing the positive incremental benefits after the impacts of European retail closing? Or do you see that retail, European retail factor still playing a role in Q1. So what direction should we think of comparably as meaning?

Well, certainly, Q4 and Q1 will be quite comparable. The uptick that we have seen in the activity level, of course, started right from the turn of the year with our backlog growing and opportunities growing. But those opportunities in that backlog really is the second quarter and onward. So the recovery and the promise that is certainly showing with the recovery of the economy, as you say, really begins in, call it, that April, May and June sort of time frame. So the lockdowns, you've seen some easing, of course, in Europe, but not the full -- they're really more like Germany, France and Italy are really more calling for an April and into May, full recovery. So I think you'll -- we'll see a lot -- I think the end markets of cellular will start seeing an uptick in there. And of course, over the last 2 quarters here, there's been quite a bit of pent-up demand from for cell phones. So I think we'll see some robustness in this -- in those end markets. But I wouldn't expect that to happen until April, May, June time frame.

Okay. And so from a gross margin perspective, does that mean comparable as well?

Yes, comparable in Q1 to Q4. But the -- of course, as things recover and those higher-end phones start to deploy much more and sales begins to recover, we would expect a gross margin recovery to take place in second quarter and beyond.

Okay. And could you provide some context on the impairment charge? Was it related to a specific product line or relationships or manufacturing? What caused you to reassess that opportunity?

Well, the goodwill was recorded when we did the 2 acquisitions, the Advantech and Alga acquisition, and it was based on, obviously, the purchase price, but every year, we do an annual impairment test. We do it quarterly, but certainly we'll focus on it annually. And we had certain expectations going in on growth and profitability of those 2 businesses. And as I mentioned on the call earlier, that has been pushed out a little bit for the various reasons. So when you do a discounted cash flow on those 2 businesses, you come up with a number and then compare it to the goodwill balance on the balance sheet, and we determined that we needed to provide for that additional $3 million. So as we see these end markets, as we talked about the marine and the air travel and how it's impacted the -- our SATCOM group, that's created, obviously -- there's no growth, it's been contractionary in the last 18 months as a result of COVID and some other things. As things are shifting from GEO to LEO, and that's also created a bit of a macro issue. That softened up revenues for '19 and '20, and that certainly resulted in lack of growth, which then -- the discount rate's pretty sensitive, so that created the goodwill impairment that we see. But as we see this year, if the tea leaves seem to suggest that the recovery is there in those end markets and particularly as LEO starts to build-out, on the ground side, there's the opportunities that we bought into SATCOM for are now finally starting to emerge here. And the last 12 months was difficult [indiscernible] the pandemic have impacted everybody like it has. But now that is clearing up here, we're seeing those end markets now recover, that should put us in a much better position for next year's impairment charge review when we take a look at it.

Daniel, I would just add there as well with respect to that. This whole impairment charge is really near-term focused. If you look at what's going on in the SATCOM industry, Randy referenced it, but to really make a point here, LEO investment is a massive investment unlike we've ever seen in the SATCOM industry. We believe this is going to carry forward some significant revenue opportunities. And our Summit 2 series is extremely well positioned to capture market share within that. So we've never been more bullish on the outlook for our SATCOM sector. It's just unfortunate that the timing of this requirement has hit us at this moment.

Okay. And in terms of the covenants, so there were some amendments to the covenants in your debt facility as it stands today, is everything on site? Or you continue to work with your creditors naturally. But can you provide some context of where you are with the covenant situation and your lenders?

Yes. As you know, we had 2 credit agreement amendments done last year in June and December, and we were -- we met the financial covenants for December 31. We are keeping the banks updated. And if it looks like there will be an issue, we expect -- issue going forward in Q1 or Q2, we expect to work with the banks like they have worked with us last year and don't anticipate any problems.

Okay. And you said in terms of access to capital, there's $10 million. Did I get that number right, $10 million from the credit facility?

Yes. That's the availability. It's approximately $20 million of credit facilities, but we have drawn about $10.9 million. So the difference is still available to be utilized.

Okay. And then the CapEx and R&D investment related to the Vietnam facility. Does that -- is that being redeployed elsewhere? Is that spend being redeployed elsewhere? Or are you going to see CapEx and R&D come down this year?

Yes. Well, certainly, on a trend basis, R&D will definitely be coming down as well as CapEx in this year versus prior years, particularly the lion's share of the investments in the Vietnam factory are behind us. We have funded a lot of the last 12 months out of the working capital, out of our Vietnamese business. So we're not expecting a big sort of capital required to finish off the factory. It's not even $1 million left to go to finish up things and get the business back on track.

Okay. And then maybe lastly for me. In terms of the division outlook, I mean, there's a lot of positive industry tailwinds going on through out, perhaps not immediate, but certainly kind of in the next few years that should be supportive of growth. I was wondering if that reprioritized how you guys think about opportunities. You mentioned the GEO, LEO satellites. Has that become #1 focus for you? Is the rebound in mobile become a #1 focus for you. How do you think about your priorities?

Well, the opportunities that we're facing in SATCOM with where things are going with the news constellation that's being constructed here certainly is a focus for us, no doubt. There's lots of investments that we've made in the last 3 years -- 2.5 to 3 years here that are positioning us to be able to enter this new opportunity. And as Daniel referenced earlier, SATCOM has been a flat to slightly modest growth industry for the better part of 3 decades. And here is the single largest investment pivot point in the history of SATCOM from recent times. So we're quite excited about the directional opportunities. And we have made historic investments here that we're expecting to start to see a good return on. So yes, that will remain a focus for us as well. As well, the second one, which is the 5G and our infrastructure group. And a lot of the investments that we've made getting ready for C-band, that's all our R&D center was focused on in the last year plus, was making sure that our products were C-band ready. And now the C-band has finally been completed and that final piece of that, call it, 5G puzzle is now put in place, that will be another very important -- a very important sort of business opportunity and future trend. So yes, that will be important for us. And of course, Massive MIMO plays a role in that because Massive MIMO is not even required if you're not going to build out a 5G network. So 5G and Massive MIMO affects both our infrastructure business as well as our Asia Pacific Massive MIMO business. So we have 3, what I feel are very strong business opportunities that are in front of us for different reasons. And for us, we're excited to see that things are finally clearing up here in the next 12 months as these networks and these investments that have been long awaited are now going to start to be made.

Maybe I'll sneak one last one in -- on that 5G topic. So now that we know how the spending resulted for the spectrum auction, and we've seen kind of the CapEx outlook for the North American telcos, what does rollout look like for them? So when do these small cell networks get built out specific to that C-band spectrum? Is it -- I mean, I would suppose it's big cities first and et cetera. But what does their rollout look like?

Well, there's certainly -- it obviously differs by carrier, but there's certainly going to be a city focus, no doubt, where the vast amount of people are. So there's going -- there's trial cities, there's different sort of test beds that have been underway for the last 12 months. Those are -- those networks and so their configurations are all but being finalized. The spectrum is now determined. So now they get control of the spectrum, call it starting in the second quarter. That will then really trigger a lot of the capital projects that have been waiting for some time here for that resolution. So we're expecting to see, starting in Q2, a significant pickup in deployments. And our backlog is suggesting that those things like stadiums and other dense areas, dense urban areas as well as dense cities, those deployments will begin. And this is not a 1 quarter opportunity. This is a multiyear build out that's really finally starting to begin. There's been a lot of talk about 5G, of course. Just -- there's been a lot of investment, but a lot of investments coming at the electronics and not so much at the end -- antenna end, the step before the invisible. And that's where a lot of that hard infrastructure has to get built out to really be prepared for this network to be able to perform at the specifications that have been talked about. So we're really at the beginning of what is a significant investment that's going to be required by all the carriers over the next 5 to 10 years.

Daniel, I would just add to that, that what Randy has suggested in terms of the Q2 ramp up marries very well with what our carrier customers and other customers have been saying in terms of a second year ramp up. So our deployment 1 quarter ahead of that would work with that very well. I'd also suggest to you that one of the things that we had heard in terms of a pushback is after carriers have spent $81 billion on this spectrum, do they have capacity to invest in their network. And the answer is absolutely, yes. They need to monetize that investment more so than ever. And this is like SATCOM another once in a lifetime major, major investment. And the carriers will be investing very heavily to refresh their product portfolio. So that is going to be a huge benefit to the industry.

And if you look back over the last 20 years, every time there was a significant spectrum auction like this and the likes of billions of dollars that have been spent acquiring it. There's an enormous amount of pressure that's put on these carriers to be able to generate the return on an $81 billion investment. That's unprecedented from a cost per megahertz of frequencies that were auctioned. So every time that happened in the last 20 years, it led to a good 5 years of major investment in the network to be able to yield that return. So there's going to be a lot of pressure on these carriers to really build out the 5G network to be able to harness the return. And as you know, it's not going to come in just in the cell phone bills of the average American or Canadian, it's going to become the business needs that are going to be dictated from 5G that are really going to drive an opportunity that's going to come from other industries to help support that so the customer bases of the AT&Ts and Verizon and T-Mobile and Sprint are going to expand in ways that weren't necessarily contemplated at the beginning. So it's kind of exciting -- an exciting time. We have -- lots of folks have been talking about for lots of years, and it finally feels that the curtain here is about to open.

Your next question comes from the line of Nick Boychuk with Cormark Securities.

Just on the small cell deployment. One other one there. If you could comment or provide a little bit more color on the impact COVID has had. I appreciate the size of the market and the fact the carriers are going to be spending the same amount. But has COVID kind of acted maybe to expedite some of that and bring some of those forward because the timing shifted?

Well, certainly, I would say that the impact the COVID had on small cell was more of the impact that it had on the delay of the C-band auction. So that, of course, was decided and finalized to some degree in February of 2020, so just before COVID hit. And then the delay of the auction through to December is really what caused a lot of -- because if you can imagine, if you were a Verizon or AT&T or T-Mobile and you're bidding on these frequency slices, you're not quite sure which ones and how much you're going to get and what you're going to pay for it. So you're going to be containing some of your CapEx spend because you know there's a fairly big bill coming down the road here. And when the auction gets solidified, plus you don't know quite what frequencies you're going to get now that's going to play into your network plan. So that's really what caused a lot of sort of slowness. And then you couple that with fans in the stands and stadiums now and not being filled. So that cause you to also slowdown on some of that -- those venue build-out. So it really did cause this lull in small cell for all of 2020. And now that you've got that auction finalized and now they're going to get to sell the spectrum, call it, in Q2, now they're able to finalize their plans. They know what the frequencies they're getting. And now they're going to be able to start back up and knowing that fans are returning to stands now and more robustly towards summer, now is your opportunity to start to get back on to your original plan.

Got it. And then just moving to the 5G Massive MIMO. Wondering if the same sort of growth and expectations that you had from the August AGM, like that potential 40% plus CAGR. Is that kind of still on the come? Is that the same expectation?

Same expectation, may be a little slightly longer only because C-band has certainly been resolved in the United States as we've seen from the auction. But the C-band auctions across the world haven't necessarily been resolved yet. There's certain auctions going on right now in other countries, and those are getting resolved right now. I'm sure we'll get the worldwide sort of auctions of C-band done. So yes, there will be an uptick in activity as it comes to Massive MIMO in the time line that I've suggested here starting in Q2 and beyond in the United States, but they haven't used Massive MIMO as perfectly as other countries in the world. So I would say, yes, it's coming back, and we can see it, and we certainly are getting good indications of those volumes. But I would think of it more towards the second half of the second half, more towards like a Q4 and 2022 type of time line. So the fact that our factory is slightly delayed is unfortunate, but it isn't as though we're now missing the market because the market has shifted a little bit further in more of the second half of 20 -- sorry, second half to the second half of 2021, if that makes sense.

Yes. I got you. And then just a follow-up to that. Are there any other massive or large auctions that are ongoing right now that you think could have a material impact on Baylin?

Well, no. Some things have been finalized in some countries, but it's a process, and that will slowly unfold over this year. The major ones that would affect this industry in the overall TAM, those ones are going to get resolved in the next little bit here. So I'm not overly worried that it's going to shift farther than what I'm suggesting. But yes, we're seeing that logjam now finally clearing up as well. So...

Okay. Nice. And then just moving to the gross margin coming back to that. Could you provide a little bit more color, please, on the sort of the disruption that you had last quarter?

So yes, as we indicated, there was a quality issue and a manufacturing issue that we grappled with. That was, unfortunately, just one situation itself. But the timing of it wasn't necessarily helpful. So we have now got that resolved, and that has now been fixed up. So we're expecting, of course, just with the mix that we had in the fourth quarter with sort of the industry softness in mobile and some of the other things that we pointed out earlier, that margins certainly took a hit. But we're expecting to see that as the backlog is, which is your specific question, the backlog is at more historic and traditional margin profile and mix profile than what we historically had. So I expect to see, as we suggested earlier, that, that backlog starts to hit in Q2, then you'll start to see the margin recovery happen for the companies in Q2 and onward.

Okay. That's helpful. And last for me, just on the outstanding warrants. I think subsequent to the end of the quarter, I think you made a mention that there were about 67,000 or so that have been converted. Do you have any other commentary or any other color that you can provide on those [indiscernible] 33:55

Yes. Well, we were -- we had served notice to the warrant holders when we broke through the $1.40 and we sustained through 20 trading day period. And so the warrant holders have until the 25th of March to make their declaration on their half warrant that they had as part of that private placement in December. So yes, we're certainly looking forward to the response from the market on that. And of course, there's some time here before that comes to bear. But yes, I know that's a nice opportunity for the warrant holders [indiscernible] the money at this point.

Your final question comes from the line of Steven Li with Raymond James.

Maybe I can ask the cost question in a slightly different way. So how much of the savings is permanent? So once these subsidies are gone and a bit of travel comes back, am I adding like $1 million per quarter back to my OpEx base in Q4 when the volume gets -- comes back?

Sorry, you're asking if you should add $1 million?

Yes. Yes. When the volume comes back in the second half, I guess I'm trying to figure out like how much should my -- because I know some of those items would go away. So how much should my OpEx increase?

As we said, we're not expecting big increases or material increases in operating expense on a quarterly basis. As you know, it does swing between quarters depending on what's happening. It's not -- they're not all fixed and evenly spread out throughout the year. But the Q4 numbers that we -- that are reported, I think, are a good number to utilize and think that way going forward.

Okay. Sure. So one, even as the subsidies go away and the travel comes back, you do have offsets, additional offsets within the business to kind of offset those increases?

Yes, correct.

Yes, absolutely.

I will now turn the call back over to Randy Dewey for closing remarks.

Thank you, operator, and thank you, everyone. Obviously, this is an interesting time that we find. And of course, light seems to be there at the end of this tunnel, so we're quite excited about that and certainly of all the things that we've talked about earlier. So thank you so much for all your patience and interest in the company and the investments that you've made in us. And we're very, very much looking forward to the future and the opportunities and finally being able to harness some of the things that we've been waiting for so long. Thank you, operator, and thank you, everyone.

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.