Skyworks Solutions, Inc. (SWKS) Earnings Call Transcript & Summary

Good afternoon. And welcome to the second day of our 48th Annual TMC Conference held virtually. We're pleased to have Liam Griffin from Skyworks Solutions join us this afternoon. Welcome, Liam. Maybe we're just going to start off with an introduction and then we'll move to Q&A. If anyone has any questions, there's a Q&A tab that you can use, and we'll make sure to look at that. With that, Liam, great to see you virtually and kick us off.

Thanks a lot, Bill. Good to see you as well. And thank you to the JPMorgan team. We appreciate the opportunity to provide an update of the business and take some questions. We know we're in a virtual world here so we'll do the best we can. But let me just start by saying, look, we're all in the middle of something that's really unprecedented. We're dealing with the challenges of COVID-19. At Skyworks, we've got 7,000 people employed globally all over the world here with some really important, important roles in the company. We continue to focus on our team, our people, our customers. We are making some progress right now with new product designs. We're starting to see a little more glimmer of hope here as we get into the second half. Some of that we communicated on our earnings call. But certainly, one of the themes that we're seeing is the essential nature of the technologies that we bring at Skyworks. We're not new to this. This is something that we've been doing for 20 years, advancing technology and connectivity at higher speeds, lower latencies and higher levels of performance. And what's come about in this environment, this work-at-home environment, this stay-at-home environment is creating some really interesting dynamics for us long term. Again, the circumstances are not what anyone wanted. We're not happy about that. But our company is doing a very good job at essential role of connecting people, connecting things, engaging in applications like telemedicine, education, store-to-door delivery of food where people can't go out. They can't go to their factories. So a lot's been happening on that end. We're working through all of those dynamics and we're very well positioned. As I said, the investments that we've made over years have put us in a very good position to advance these protocols. It's certainly cellular led by 5G, but we're also seeing a real strong uplift in WiFi and WiFi 6. One of the technologies that we don't talk much about is GPS. We have high-precision location services with GPS. All of these devices and these technologies are becoming more vital and more essential, and it's actually lifting some of the broad market opportunities. So we're going through that in a good way. There's been a little bit of supply chain volatility globally. I think everyone in our space and our peer group has seen that. Some of it is within your own factory, some of it's with partners outside. But we're doing well on that end as we move forward. So that's kind of where we are. We look forward to the second half. We were purposely aggressive in our dialogue on the call because we feel very good about where we see our Q4 plans and getting through Q3. A lot of design wins that happened -- haven't yet hit the shelf but been consummated, so we do feel good about that, albeit the headwinds are still falling here with the COVID situation.

Yes. Thanks for the introduction. And maybe just -- we've had everybody just at least discuss the near-term impacts on supply. You guys obviously had a, well I'll call it, close call with Mexicali being shut down and now it's back up and running. I guess I'm wondering you just mentioned suppliers and maybe other guys. I mean, we do hear continually that Philippines and Malaysia still seem to be impacted although coming out of that. Any residual impact, even if it's not outside of your factory network now that -- well, Mexicali is up and running, but any residual impact? And maybe secondarily, obviously, things can change. Hopefully, nothing else gets worse for Mexico. But I mean, if you needed to move production, how fast could you do it if you needed -- yes, I know 75% of your production comes out of that site. What can you do to mitigate that risk, if needed?

Yes, sure. I'll hit on those themes. So at a very high level, I think we all understand this. But if we think deep here, the technologies that we deliver, they're great. They're incredible. They're [indiscernible] complete assembled end units. So we have a smartphone where a smartphone may have 1,000 independent devices. Some of them are core cellular, some of them are not, could be LEDs, could be PCBs, diodes. It only takes 1 break in the food chain to really create havoc for our customer, end customers. And also, that flows down to the consumer. So I think what we saw when the buyers started to emerge in February with some of the leading players globally, what you could see is that it -- -- certain elements just weren't made available, and from that, certain factories were not staffed. So it created this supply shock that I think now is starting to abate for the most part and now we move into a demand situation. With respect to factories, you've heard me talk about -- I've been in this company for 20 years since we started. And I'll say, I'm very proud of the fact that we can build our own stuff. And it isn't just making it a little bit better than the CapEx outside. It's really about crafting, configuring and creating unique solutions. So that's at the core. It's very, very different than some of our customers -- some of our other competitors. But it's that elemental thinking where you have to have all of the parts together, working in harmony, synchronized and then delivered in an easily digestible solution to the customers. So it takes a lot of work. So for that reason, we like to do it in-house. We like our own RF semiconductor technologies, our gallium arsenide technologies. We have a 8 billion-unit TC-SAW capability in Japan. We're growing BAW. In fact, from the last call, I mentioned, we've reached a milestone of 100 million BAW-enabled devices, unbelievable accomplishment with a long way to go from there. So we like to do that in-house. On the other side, we do have some partners that we'll work with on some of the assembly and test production. Names like Amcor, for example, look at folks like that. And some of those supply chains are in different parts of the world. They are good companies and we work with them and we'll continue to balance in-house versus OSAT. But the reason why we do a lot of our stuff in-house is the uniqueness of the technology and the flexibility that we can bring to the market. So that's how that evolved. The specifics with Mexicali that occurred here just a few weeks ago, were really just around concerns around COVID-19. We've had very, very few cases in our company and very few cases in Mexico and in below tack. We're going to deploy thousands of people. But there was a concern, there was a fear of risk. We worked with the local authorities. We have great people on the site. We got a lot of help from the local community and have done a lot of work with the people there to deliver the safety protocols that are needed. So I think that has come down quite a bit. We're still kind of in our in-and-up mode in that side. But we feel really good about it. But long term, as the company grows and the complexity grows, you could certainly expect more diversification globally in our supply chain as we move forward.

Sorry, I was on mute. That's understood. I'm going to focus more on long-term stuff, but just in the near term, if we think about your recent-quarter results and guide, and I know you guys really haven't commented and don't tend to comment on smartphone units or 5G-specific units. But a lot of people out there saying it could be down 15%, more than 10% overall units. Just trying to understand, as your mix today, especially understanding your largest customer hasn't announced any 5G products yet. What is your mix of revenue coming from 5G currently?

Yes. We have a very robust mix, active mix shipping now, shipping last week and will be shipping into the future with a broad set of players in China, Oppo, Vivo, Xiaomi, great attachment with the MediaTek ecosystem. And as we discussed in January, the beauty of 5G is that you're still collecting that content from 3G and 4G and then creating incremental device count and incremental complexity to deliver 5G spectrum. So that's continuing to move. And it's moving on in a great rate. And there's a lot of incremental upside in a China 4G phone going to a 5G product. And you've got a $3 to $6 kind of move or a $4 to $6 or $4 to $8, depending on who the customer is. So having said all that, that's great. And it's -- we're gaining share, growing content, simplifying architecture. So the Sky5 notion that I mentioned, it's really about capitalizing on a really complex solution, but making it easier for the customer. So that's all good and it's working. Now having said that, there's some very, very big opportunities that we've consummated but have not yet shown up in the P&L. So some of the confidence that you hear from Skyworks and you hear from me is our knowing that we have a very strong opportunity with some very important customers. And it's really just about timing. It's not about design wins. There have been one, it's really about timing. And the one thing we really can't handicap on this, and I've been very straight about it, is the timing. We can talk about the demand function. We can talk about the content. And I think what we've seen here with COVID-19 is really more a shifting of timing. I don't think it -- I absolutely don't believe it's a lack of appetite from the consumer. I think anyone who's used 5G technology can't get enough of it. I think we're going to see the technology go far beyond cellphones. It's going to go into these IoT devices. It -- again, we've seen so many opportunities that just came up during this stay-at-home time frame. But by no means do we believe that 5G is going to have a slow roll-off. It's going to move up, but we've got to deal with a little bit of a murky pause period. And that's the way we communicated. That's where we provided our Q3 guidance to reflect that. But coming out of it, we do see 5G ramping.

And, well, and you said in the call, at this stage, you're expecting sequential growth in 3Q and then further growth in the calendar fourth quarter. So just -- what's giving you confidence presumably is obviously your known design wins and content at this stage.

Right, right. And we're also -- the nice thing is we're starting to see some nice customer acquisition results with WiFi and GPS and some of these additional protocols that are -- have been at very high demand, given the pandemic and the work from home. And I think some of that will be sticky and will not roll off when this pandemic resolves. I think there'll be consumers that got their first taste of what we're doing right now like video conferencing or doing the work-at-home or streaming Netflix where they didn't get an account before. There's a lot of service-based activities that go on that are really underpinned by the ability to deliver wireless technology, semiconductor technology that we bring.

Yes. No, that attach is important, you discussed. But it sounds like the content you talked about back when we had you at CES is playing out and if not, even increasing. You sort of mentioned $3 to $6, some cases $4 to $8. It's actually doubling in the mid-tier and I believe you've also said in the high-end tiers, too, similar type of content up, plus $6, $7 are still in high end. So just 4 months on, you're seeing that trend play out. One of the areas you've said too is, obviously, BAW is ramping. I was hoping you could update us on your progress towards duplexing and multiplexing. And do you want to compete in some of the applications you're currently really isn't part of your SAM or has not been part of your SAM?

Yes. Look, we look -- our view is to advance the technology, put our customers in a position to win in their markets and deliver compelling solutions, right, underpinned by compelling solutions. And we've been very methodical in our path. If you look back 8 years ago, 5 to 8 years ago, we were -- we had very little filter content. It was mainly a gallium arsenide chip company. We evolved to integrated solutions, driving initially low-band type devices that have 8 to 10 duplexes very, very difficult, challenging TC-SAW capabilities underpinned with our gallium arsenide, our switching and we would deliver what would be a preview of the SKY1. We started evolving even further with our SKY1 bringing in more Tx and Rx and creating that solution now that is 5G Sky5. So we've had an evolution of growing our technology core inside the company, not just purchase material inside the company, creating bulk acoustic wave technology, creating TC-type -- TC-SAW technology in our fabs. So that playbook has worked very well for us. We don't get ahead of our skis. We're very methodical. We look to win with the most compelling customers first. Some people do it differently. Some people start low and try to warm up, we do the other thing. We go at the most challenging situations and we learn from those. And when we eventually win, conquer that mountain, it's a lot easier for us to go downhill. So that's the game plan that we're working. We have a lot to do in bulk acoustic wave and all of the things that you mentioned, Tx, Rx, new spectrum. Certainly, a lot of spectrum between 3-gig and 6-gig. And over time, we could potentially go even further. And that's where our aspirations are in that area. So it's continued growth in content, extending what we call extending our technology reach. There are some things right now that are beyond our reach, and it's our ambition and our job to grow that. And then there's also just driving the technology across customers today that have a weaker set of technologies, a weaker set of connectivity protocols and show them what we can do to help them with and how to create a better experience for the end customer.

There's a question coming on here online, and I'll incorporate it into my question too on competition. But the question is, is Qualcomm is talking about all their wins, including RF. Are these wins different products or different customers than you're focused on? That's the question from the audience. My question is there's obviously a lot of sort of noise in the marketplace. And I've been of the view that you guys amongst maybe a very few select other are well positioned just as complexity continues to increase. So can you help us understand who you primarily find yourself competing with in head-to-heads? And what gives you confidence that you can increase share in 5G? I'll just wrap all the competition questions into one.

Yes. Sure. Well, I mean, the design win count to me is kind of in a relevant stat. If you look at a Sky5 solution, you could open that up and it could be 50 design wins discretely, and it's 1 product because we've architected and created this unique cohesive engine that is just incredibly unique and desired by the customers. So we have a different play on that. We don't count design wins, we count revenue and we count customer satisfaction. Those are metrics for us. Actually, the customer satisfaction is the first. And then we look at revenue and cash flow. That's how we look at that. And obviously, you have to get the design wins behind it, but we're not worried about counting diodes or singles and doubles. We're looking at thematic shifts, right? So that's important to us. Now having said that, there's always competition. It makes us better, makes the industry better. And I feel that -- I really do believe in just kind of stepping out of the box of Skyworks. I think there's a market bifurcation happening right now in semiconductors where a lot of the traditional broad-line players are kind of stalled a little bit, and the market is appreciating what we've always known is the value of this connectivity. It's got to be -- it constantly needs to be refined and advanced. What we had 3, 4 years ago is not what we need today. But the connectivity, the wireless element is so critical and has an unbelievable future beyond what we do. We'll do great in this environment but there's going to just be a lot of investment, a lot of energy and a lot of demand from the customer to make it work. And so we love that. And the solutions that we have today are going to be very different than what we're going to have 3, 4 or 5 years, right? You can see the evolution. Go back to the slides I showed you guys a year or 2 ago when you look at what a 2G and a 3G phone, what that content was, but what was the application? Was the user really pushing a technology? Now we're starting to see the service economy, the IoT economy, all of these adopters of wireless are now putting another leg of pressure on the network, which is great because it drives infrastructure and it drives the need to continue to evolve and improve on the connectivity core that really is the heart and soul of Skyworks.

Yes. No, understood. Trade keeps coming up, and we've seen -- I mean, everybody has seen in this space and limitations of what they can sell to Huawei, and it's come down as a percentage of your business. But I guess the question, if you think about the new order, the new BIS order to limit components that can be used potentially for military, how does Skyworks interpret the rules? And we've heard some other companies, they feel they'd be at minimal risk because of where their manufacturing location is, but any update on that? And what do you see as further trade risk?

No, that's a great question, and I think it -- the trade risk is there. It's there for everybody in our space. We don't -- we've spent some time on the latest BIS instructions and orders. And it appears at this point, there's no incremental change for us for what we do and the products that we have. But if we look back, I mean, Huawei was a bigger customer a year or 2 ago, right? If you go back 2 or 3 years ago, they were much bigger than they are now. So the good news there is that we've absorbed that hit. We don't expect there to be any material downside from here with Huawei. Would love it to come back to where it was. But at the same time, we haven't seen any step down from the other players, the Oppo, Vivo, Xiaomis. And a lot of those companies, as you know, it's not just China, it's also the pathway to emerging markets, right, India, Latin America, some of the countries that really need the technology, really need it, and they're now being served with maybe some lower-end solutions that we can help them support with our customers in China. So I think the trade issue is going to be there. We've weathered through it. We don't think there's any further macro risk. There could be some volatility. Our revenue and our plans have discounted a lot of that already today. But we'll have to keep our eyes on it. I mean, certainly, semiconductors are very important to the world. It's a very important industry for the U.S. And I think that, that's going to be a big part of the equation as we move on.

Yes. There's a question from the audience about Huawei. And maybe as a backdrop, and we have seen from teardowns that their latest flagship is using content from you guys, so that tells me that there's some value in that. But the question from the audience is, what level of power efficiency loss can -- if Huawei were to use discrete solutions for the front end versus more integrated solutions coming from you? And does Huawei offset this with larger batteries? Or what's the incremental, I guess, power or battery-life type of ramifications?

Sure. Well, I will tell you, at a high level, the discrete implementation is much more cumbersome, certainly less efficient, meaning it draws more power. Physical dimensions are also a challenge, and it is not the desirable way to play 5G, especially for a company that has quite a bit of technology. Why we develop things like Sky5 is it's the opposite. We're going to take all that complexity and all that challenge and make it really easy for the customer. That's -- we're completely at opposite ends. And what we know is barring any trade bans, Huawei is all over this. I mean, the kind of things that we're doing are what everybody wants. It's not -- this is the most desirable way to go is to get an integrated solution. And look, these companies do a lot more than cellular technology. They're working on all kinds of interesting things, form factors, LED screens, touches, all kinds of really interesting stuff going on in these devices. We want to unburden you on the highly complex 4 and 5G solution, where connectivity is critical. And power consumption is critical and latency is critical. We're going to take that problem away from you and solve it. So if you go back and look at the teardowns of the "kind of underperforming 5G phones with discrete solutions." They're not -- they're just not getting it done. It's a way to put a flag up and say, "Look, I've got a 5G phone." But in my view, and I can't speak for the customer, but what I've been hearing is we want integration. We want cohesiveness. We want architectures that play well, that are tuned and configured for us, and that's not the discrete solution. So -- and you can look at the most powerful companies in this industry with the smartest engineers. And if you look at what they're doing, not even what they're saying, what they're actually doing is more aligned with that type of an approach than having this disparate bag of chips over a broad set of devices in our [ plan ].

How many of these bag of chips in or note after this call. I like that one. Moving to nonmobile, and I -- and it's always been a business that's been very attractive. We had headwinds last year from Huawei. And you have seen a couple of quarters of negative sequential growth. Can you describe what's driven that? And what came in weaker? And now you're calling for sequential growth, and you mentioned earlier, WiFi 6. How should we think -- I mean, you mentioned earlier with the work-from-home trends, how should we think about the growth in that business as we look out a few quarters?

Sure. Yes, that's an important part of the equation, and it had been a really steady grower. We got banged up a little bit on the infrastructure side, quite frankly. And that put a little bit of pressure on the top line. I will tell you that if we look at the order flow today and the dynamics that we're seeing going into the second half, and we expect that to continue into 2021, we're seeing some expansion of customer acquisition. We need more customers. We've added a great deal of marquee players in the last year, Honeywell, Raytheon, Bosch, NETGEAR is a big provider with us, companies like Itron in the utility side. And that's what we want to do. We want -- we're running that on a kind of a different marketing and sales vector, but it still picks up and utilizes the core semiconductor technologies that we bring into mobile device. So that's starting to go in the right direction. WiFi 6 has been kind of like the 5G of local area networking. Great performance for the consumer. We're starting to see that. And that has been picking up quite a bit. So we're going to spend more time and energy on the investment side, technologically and then also on the go-to-market side within the broad markets. The handset business we -- it's a challenging business. We know that. We have good Intel on where to go and where to pursue our opportunities. The broad markets, it's actually very -- an amazing opportunity because there's a lot there that you can discover. There's a discovery element in broad markets where you have solutions that -- you have technologies that you couldn't imagine would go with a certain customer puts -- with work. We find ways to win. So it's going to be something to continue to monitor.

Outside of WiFi 6, you have some infrastructure wins. We've spoken about that in the past, I think, in particular, the guys in Europe. We know right now the China base station, those are kind of on the costs that are happening here in the second half. I believe probably based off your supplier wins is maybe less focused on that market. But as we think about 5G rolling out in other regions, how should we think about the growth of your infrastructure in your business?

Yes. Infrastructure is very important. We know that, and it had been stalled to some degree, I think the Huawei dynamic, a significant wrinkle. I actually quite frankly, they had a pretty large share of the global infrastructure market, where you had traditionally great, great position with Nokia and Ericsson, and names like that. So we're seeing a bit of a shift now where there's more balance coming in from Europe. Even Samsung has some quite potent technologies for infrastructure. When you start to move into the small cell environment, I think you open up more capability, more flexibility for new entrants to come in and play. It's an area for us that we absolutely believe will move up in terms of its percentage of revenue for us. It's high margin. We have the technologies. It -- this is not necessarily a case where the tech -- there's a technology gap between where the customer is and where we would be. It's really a pacing. Getting the towers out, making the investments. A little bit of a challenge recently with the carriers just in terms of the -- their dynamics through the pandemic. But I think that will come back because the thirst for data is there. And I think we were recognizing that, that the tests that we've had during this work-at-home time frame and said, "Look, it's great, but it's not good enough." It's still not -- we still get a little max headroom on the screens and a little blurred video, and we can do better. We can do better. So I'm expecting that, but you need both sides. You need to have that -- the client device, whether it's an IoT device or a smartphone, and then you have the tower and you have to be able to throw that ball back and forth. So there's more opportunity there, and I think we'll start to see that over the next few years. And actually, by the second half of the year, I think we'll pick up.

You mentioned -- you've talked about in the past about IoT and automotive, and you've quantified some of the content gains there. And you purchased Avnera last year and kind of unique relative to the other broad markets. But I guess, what are you most excited about amongst these smaller businesses as we look out through to the balance of the year and into next year? What's -- where is the best opportunities for growth?

Great question. And we're talking about that in our staff as well right now. I think there's some great opportunity and these emerging technologies within Skyworks. So WiFi 6, there's no reason why we couldn't triple our number there. They're just -- it is -- the demand and the thirst for that technology is real. It's ubiquitous, it could play anywhere. So we have good position. We -- it's a marketing and sales job, honestly, quite frankly, and that's something we know how to do. Getting deeper into technology, I think we could do more with our GPS portfolio. We've got some great technology there and opportunity. And if we look at what was Avnera, which is now our integrated voice technology within our business. There's some very unique plays that we're thinking about right now. Just as we go high level and look at the dynamics, the changes in habits and behavior that we've had as people, right? Touch is no longer really a great thing. Coming up to the elevator, people are now spooked. Whatever it may be, right? I mean, if I put a coffee cup down, my wife wants to put hand sanitizer on it. I mean, that's kind of where it is. But if you think about the Avnera technology, how about voice as your connection? I have it in my car and my CarPlay. It's awesome, right? But how about an authenticated communication, voice communication to unlock a door or to open an elevator. That kind of stuff is 100% in the sweet spot of what we can do. And those are the kind of things, over time, that we could develop into very potent businesses. Looking at GPS, think about all the package delivery that's going on in the last 90 days or so. Everybody is getting their products delivered, food, technologies, whatever it may be to the door. They're looking at their GPS or looking at their phone. Yes. There's ways to create some unique attachment there. So more investment, more work to do. We know there are companies that are working on some of this as well. But I think there's some unique things that we could do. And then you could add the 5G engine that could really extend signals. There's some interesting products that could come out of it. So that, along with the permutations that 5G is going to bring, are areas that I think we'd have a very unique position to grow.

Yes. I look forward to monitoring the progress of that. Moving on to some of the financials. I think one of the positive surprises is that your gross margins are holding in fairly well despite the weaker revenues. How have you been able to sustain such margin levels? And I guess, how should we think about trends over the next few quarters? I mean, assuming demand recovers, I know you had a long-term target and it's maybe 300 basis points away at this stage. But we also know mobile is -- tends to be in those broad markets, but if the mix more -- moves more towards 5G smartphones and some of the other content opportunities you have, how should we think about the gross margin trajectory from there?

Yes. Well, I appreciate your comments on that and delivering 50% is -- given the environment, that's a good number. It's not the number we want, though, long term, we absolutely have strategies and plans and executable pads to drive gross margin higher. The more complex the technology, the better the gross margin is going to be for us. I mean, that's an equation that make -- and the fact that we're able to do it in-house and leverage the technologies in-house is also helpful. So what I would say is if we didn't have the weakness in revenue that is in Q3, the gross margins would be better than we guided, of course, right? So we've got some utilization issues. So we've come out of that. If we come out of that, we get better utilization just on units and top line. We should expect an improvement in mix, given the complexities and challenges and value of a 5G solution. It isn't just how hard it is for us, it's what it conveys to the consumer, the value that the consumer gets. So we'll see more and more. And then if we continue to grow the broad market portfolio that we just discussed, that really could be the constant powerful wave of opportunity, multiyear, multiyear move as we go forward. So those are some of the vectors that would support better gross margin. And then a lot of the technologies that we have are very new. We're -- we've been extremely aggressive on manufacturing complex technologies. As we get a little bit more mature, we'll start to see the product yield -- the yields in our factories go up a little bit. Even 2% to 3% delta in yields, when you're looking at billions of units, it's a big, big deal. So there's a lot of work going on, on the technological aspects of the manufacturing side. It doesn't get a lot of love sometimes, but it's really critical when you start to think about gross margin and how you get the next 300 basis points.

Not only gross margins or free cash flow is holding in quite nicely as well. There was another question from the audience, however. They're -- basically, the question is it looks like millimeter wave is -- will be necessary for full 5G in the U.S. and maybe later on, Japan and Korea. I think you and I have also talked, too, that it's coming but we'll have to see when. But the question is, is there an alternative to millimeter wave?

Well, I think what you're seeing is 5G today that really -- we're in the second or third inning of 5G, especially in the U.S., it's true. It's not what we wanted but that's what it is, and that's the result of this corona headwind. When you get a full 5G phone and you look at the merits of the technology, you look at the speed, the latency, the performance, the battery life, the quality of the experience, it's going to be compelling. And so the desire to jump into a millimeter-wave world, maybe that's going to become at some point but it's been difficult right now. There hasn't been a platform or a solution that's really been adopted. It is, without question, without argument, more expensive. It draws a lot of comment. And then it has some physical line-of-sight issues. So there's certain properties on the waveforms that are just different than what you would get in a traditional cellular world. But having said that, look, we're -- that's all part of the purview of Skyworks. It's advancing technology. We've had some investments in millimeter wave. There's some things that we can do in our own fabs to actually develop the technologies and move them. But for now, we're being -- and quite frankly, being coached by customers on where the investment should be and how. But for now, I think it's an opportunity for us. We're not all in right now but we could certainly change our course of things right now.

Yes. Makes sense. We are just about out of time. It's been great having you here on this virtual call and look forward to following the team and the progress.

Great. Thanks a lot, Bill, and everyone, be well. I hope to see you all in person soon. Thanks.

Sounds good, take care.