Qorvo, Inc. (QRVO) Management Presents at TD Cowen 51st Annual Technology, Media & Telecom Conference (Transcript)

Qorvo, Inc. (NASDAQ:QRVO) TD Cowen 51st Annual Technology, Media & Telecom Conference Transcript June 1, 2023 9:05 AM ET

Executives

Eric Creviston - Corporate Vice President and President, Mobile Products

Phil Chesley - Corporate Vice President and President, Infrastructure and Defense Products

Doug DeLieto - Vice President, Investor Relations

Analysts

Matt Ramsay - TD Cowen

Matt Ramsay

All right. Maybe -- hopefully you guys can hear me. I will just shout, if you can. Good morning, everybody. Welcome to the semiconductor room. I think we are locked in this room for the next like 12 hours. So I hope everybody is comfortable.

My name is Matt Ramsay from the semis research team at TD Cowen. Welcome to day two of the conference. Hopefully, everybody had a productive time yesterday. It’s our 51st Annual TMT Conference. The first with our -- with Cowen being a part of TD Bank and it’s an exciting time for lots that’s going on. I think Brian’s [ph] coming with a new.

Unidentified Company Representative

Yeah. Yeah. Certainly right.

Matt Ramsay

Yeah. With…

Eric Creviston

Like kid’s chair has gone.

Question-and-Answer Session

Q - Matt Ramsay

The kitty chair is no longer with us. Thank you my friend. I see. They take care of us in the semiconductor team at Cowen. You have got a chair or I am used to being in at the kids table for Thanksgiving and such.

But, anyway, really, really pleased to welcome the team from Qorvo to speak with us today and have a conversation that might be a little bit different than some of the conversations that some of the investors focus on, on the company.

Phil and Eric run businesses that are outside of the cell phone business. And diversification outside of wireless is a big topic for the company, applying many of the technologies that the company has developed over the years into new, less cyclical end markets with higher margins is, I think, a big focus for the firm.

So, maybe Eric, if you wanted to start and Phil you can kind of jump in. But be really, I think, helpful given the recent re-segmentation of revenue and the business for you guys to spend a little bit of time on what your new remit is in running into your divisions and sort of we can kick the conversation off from there.

Eric Creviston

Yeah. It sounds good.

Doug DeLieto

Eric, If I -- I am sorry, if I may, like because we don’t have formal remarks. The Safe Harbor language that applies to our press releases will apply to today’s conversation. We should have…

Matt Ramsay

Thank you for that Doug lots…

Doug DeLieto

Yeah.

Matt Ramsay

…and for not making me read...

Doug DeLieto

My job here is done. Yeah.

Matt Ramsay

And for not making me read that paragraph.

Eric Creviston

Thank you, Doug. Yeah. So I will kick it off. I know some of you and some are -- I see some new faces as well. But I ran the Mobile business for the company for the history of the company, up until we did the re-segmentation.

And along the way, both within Mobile, as well as our Infrastructure and Defense Products, we call it the other part of the business, we are very focused on building these core businesses, which I think have been pretty successful in the growth.

But along the way, we had also picked up a lot of acquisitions for diversification. In Mobile, for example, we acquired Decawave, which is an ultra-wideband technology innovator, super interesting technology for Mobile phones, but also applicable to pretty much every other industry in the world.

Also, we had picked up NextInput in the Mobile group, which is a really highly differentiated ForceTouch sense functionality. That also has application in Mobile, but a lot of application in Mobile and many IoT systems as well.

And so we got to the point between all of these acquisitions being sort of under the radar within the two big groups, where at least I really wanted to focus on what we could do with these things. And the Mobile group was really, really, really doing well. It’s got a great future ahead of it, a very mature team there. So that’s in great shape and continuing, of course.

But with Connectivity and Sensors Group now, we are combining -- we are focused on IoT, obviously, automotive connectivity, the connected home, enterprise and industrial access, all these areas that are now being brought into focus by us where we can apply the Connectivity systems capability we have now.

So WiFi, excuse me, Bluetooth, Zigbee, Thread now Matter, Matter over Thread, as well as ultra-wideband, these are full system solutions, all the digital, analog, software, complete system solutions. So not just the components you are used to seeing from our company.

And then adding to that, very high performance WiFi components and now the touch sensor capability, we have completely new sort of technology recipes that we can bring to each of these markets, work with the leaders in those markets now to help really enable completely new businesses and it’s a lot of fun.

Now we are still going to leverage the Mobile business, of course, because we have an application in that, obviously, WiFi, touch sensors, UWB, that -- we will sell that into Mobile, of course. But beyond that, we are going to really focus on building out auto and IoT and all those businesses there.

And we think we have got a very unique capability with our RF expertise and our super high scale factories where we can make very highly complex RF modules and put all the pieces together. So that’s the focus for CSG.

Phil Chesley

Yeah. Similar to what Eric was talking about for HPA, which is High Performance Analog. What we saw was, we had bought two acquisitions in the power management space. The first was Active-Semi. The second was United Silicon Carbide.

And what we saw with those two technologies was, there was really a pretty big opportunity for us and I will talk a little bit more about that. But not just in the power area, in the Defense -- the Defense and Aerospace segment, we saw a really big opportunity in what’s happening in that space.

And so for -- when we looked at how we kind of re-segmented the company, we said, look, given the SAM growth, I mean, we are seeing a $5 billion SAM going to a $10 billion to $12 billion SAM in three years just in HPA. We needed to give that a little bit more focus and I think that was the other rationale behind kind of re-segmentation.

Maybe starting a little bit on the Defense and Aerospace side. We -- obviously, we are a leader there today. But that market continues to change and grow. You are seeing really the needs for next-generation radar platforms are changing quicker than they have in the past.

You have -- the architecture is going from maybe one plane to 20 drones and all of the kind of the advanced frequency hopping and things that are needed in that space are really driving an opportunity for us at Qorvo.

In addition to that, we said, look, we have an opportunity -- one of the big challenges that the U.S. Government has is how do you take all this advanced RF and radar capability? And how do you put it into a smaller space?

And we have been partnered with the U.S. Government for a long time, starting with our SHIP program. We had a big announcement with the U.S. Government. We delivered our first prototypes there. But there’s a lot of really exciting stuff that’s happening in that segment that the HPA is focused on.

On the power management side, we have opportunities both in the silicon carbide space, which I don’t have to probably talk. Most of you probably follow companies that are there. We have some really interesting technology that doesn’t get a lot of airtime.

We have a technology there that provides the lowest RDS(ON), which translates to faster battery charging, longer battery life, whether it’s a car, whether it’s in the Infrastructure, data center space. So there’s a really exciting opportunity for us there that we are working to capture.

And then in the more kind of traditional power management space, we have a pretty broad IP portfolio. And my background, I joined Qorvo year and a half ago. My background was Intersil. It was Renesas. I come from the analog power mixed signal space.

And it was exciting what I saw and so we are really going to leverage that IP into a lot of our current markets, but some other markets as we diversify Qorvo. So that’s really the mission of HPA.

Matt Ramsay

No. Thank you, guys. I think that’s helpful context. I might start off with -- to ask a few questions, Eric, about the business that you are running and then we will kind of gets to Doug in the end on the Mobile side, which is unavoidable, when we talk about Mobile. I think -- so it’s interesting, we cover and they will be presenting later today, like, the guys of Silicon Labs and what they are doing in the connected home and IoT. We spend a lot of time thinking about what ST is doing, what SP is doing, companies that have not just connectivity assets and software assets to go into IoT applications, but also scaled microcontroller franchises. And so I’d be interested to hear about how you are competing with those companies and do you intend to really push into MCUs, is it an inhibitor of the business, like, what’s the strategy that’s different from what they are doing that has maybe the compute side and the connectivity side, where your expertise comes from the connectivity arena?

Eric Creviston

Yeah. Yeah. Great question. So for the most part, certainly today, we are focused completely on connectivity. No plans to move into the MCU. The industry is so nascent right now. There’s still a lot of work to be done just fundamental architectures.

But we see a lot of the scale in a lot of these businesses going to very, very thin connectivity slices with a little processing power. But sensing, certain things like presence in the room, for example, or other environmental sensing and so forth, and then just using those to communicate back to a central hub, right?

So around the hub -- around the home, for example, there will be 10 times more just kind of very thin sensors and communicating back than there will those more hubs, like access points and so forth. So, for now we still see a lot of opportunity in just focusing on the connectivity piece.

Matt Ramsay

So I mean there’s a lot of those folks that are trying to do single chip solutions that integrate the connectivity in with the MCU. What kind of partnerships for MCU providers or compute providers do you guys have? Is it -- how do you go to market given sometimes connectivity is the crux of the conversation, sometimes compute is.

Eric Creviston

Yeah.

Matt Ramsay

There’s a little bit of AI getting sprinkled in. I got my AI referencing there. Don’t worry.

Eric Creviston

You beat us there.

Matt Ramsay

Yeah. Exactly. Check the box there. I just wonder how the onboarding of customers and what’s the conversation like?

Eric Creviston

Yeah.

Matt Ramsay

Do you meet with connectivity, obviously, you would, but do your competitors lead with compute?

Eric Creviston

Yeah. Yeah. It’s an excellent question. One of the advantages of entering this space as Qorvo is we have already got deep trusted relationships with all the major vertical suppliers, right, whether it’s an Amazon or a Google or an Apple or a Samsung, Xiaomi. We are a long, deep, trusted supplier to these companies and so they are laying out architecture for these systems, right?

Matt Ramsay

Yeah.

Eric Creviston

And we are working with them, a lot of times, they want to have a big piece of that compute for example, right? And so we are working with them at the highest level to architect the systems and really just provide that connectivity piece.

Matt Ramsay

That makes sense. One area that gets a lot of conversation now is ultra-wideband and I know you guys are investing there. Do you -- is it primarily a phone opportunity that then you can leverage that R&D and technology into adjacent markets? I guess, maybe you could talk about…

Eric Creviston

Yeah.

Matt Ramsay

… UWB to start with and then I guess the bigger part of the question is, when you think about your business, are you sort of limited to just things that are relevant in the phone space and you can leverage that R&D or do you have funding, R&D efforts, et cetera, to go into new technologies that might not be Mobile device relevant?

Eric Creviston

Yeah. Absolutely. Great question. So, yeah, for those of you that may not be aware, we acquired Decawave, which was the fundamental IP owner of the modern version of ultra-wideband. There was an older ultra-wideband that was certainly totally different, which shouldn’t develop.

But -- so this is a radio technology that’s very high frequencies at 9-gigahertz. It’s a very short pulse, very broadband energy that gets sent out throughout the room. And with that, with other correlated ultra-wideband radio, you can figure out precisely how far apart from each of them they are. That was the original idea.

So precision, location, distance or if you have got multiple antennas, you can then do 3D, so you have got complete proximity awareness. So you know, our phones know exactly where they are in relation to each other in 3D space. Our phones can talk to other UWB-enabled devices and know that.

So for one thing, you can do these magical properties. Apple’s had ultra-wideband for some time in their phones and they use it for things like passing music from your phone to your speaker by just swiping over it. Those sort of proximity where, where your devices are aware of where they are in relation to each other brings a complete new element to everything that we will interface within our daily life.

So that was sort of the genesis of it, but it actually goes well beyond that, because with that precision, location and proximity awareness, it comes with inherent security. So for example, key fobs to get in cars. Today’s key fobs can be sniffed and recreated somewhere else to open or operate a car. In the future, you will have to be precisely where you are to have that because that persistent location gives you enhanced security.

And so it took off in Mobile phones, right, for sure, to enable a lot of use cases. Now though, we are really seeing automotive go. So next-generation key fobs and already a day, Philip, in fact, has ultra-wideband in his car and...

Phil Chesley

I love it.

Eric Creviston

And he lost his key fob weeks ago. He doesn’t even need it. So with your Mobile phone, you walk up to the car and unlocks. It starts for you and so forth. So that will be another major use case that will be around the corner.

And once you have ultra-wideband now in all the phones and all the automobiles, obviously, home access will be the next step. So just like you are used to walking up to your car, with your phone, it opens for you, your home will do the same thing and then use cases around the home will proliferate from there, right?

So I will admit it hasn’t come as quickly as we thought when we acquired the company, but it is definitely coming and so you are working with each of those verticals. As I mentioned before, we are working on those use cases that will really, to make it a must-have technology everywhere. It’s not by any means located in just the Mobile phone. It will be in all devices.

Matt Ramsay

Just really quickly before we transition the conversation a little bit. Just as you think about the next three years to five years in your business, any just broad strokes, growth targets or things like that, that you might want to talk about? Just how are you guys thinking about this from a growth in TAM, growth in revenue perspective?

Eric Creviston

Yeah. We think it will be the highest growing segment. We have called it strong double-digit growth. This year we are obviously suffering from the market. A lot of our actual core revenue today is coming from WiFi front-end. So that’s tied to all the consumer electronics, phones and others that are slower than everyone had anticipated.

So we got a lot of underutilization, our gas fab tied to it. So key milestone is to get profitable, obviously, right? We got to get the scale to get profitable beyond that grow faster than the other segments, strong double-digit and have accretive profitability in the three-year to five-year timeframe.

Matt Ramsay

No. Makes sense. And by the way, this should be interactive, if anybody has questions, just wave your hand, I am going to. Yeah. Please.

Unidentified Analyst

Yeah. So do you guys also see a good amount of promise here in the quantum space, like, I know the special kind of amplify, for example, which do you guys are one of the leaders in and so do you see that as an opportunity?

Eric Creviston

In which space, sir?

Unidentified Analyst

In the quantum space.

Eric Creviston

Oh! Quantum space. So we are investigating opportunities there. It’s not an area of direct focus for us now. There’s definitely some intersection to your point. Right now, I think, we are still laying the fundamental groundwork and there’s all kinds of directions we could take. We can talk about AI, for example, right, in quantum and other applications.

But for right now, I think, it’s really important that we just get the Infrastructure out there for consumers to begin to get used to using the technology and then we can go a lot of different directions definitely, yeah.

Matt Ramsay

No. Thanks, Eric. Phil, I wanted to ask, we have done a ton of work on wide gap, mega gap semis and silicon carbide. And our research team, Josh and his team have continued to lead that effort for us across primarily the auto space. But -- and so there’s been core companies that are -- that’s integral to the business and then there’s been some new entrants. So maybe you could talk a little bit about the actual silicon carbide program at Qorvo. What -- I guess, what you are doing, and importantly, what you are not doing?

Phil Chesley

Yeah. That’s a great question. So it starts -- one of the things, just as a general trend that we see is we see wideband gap moving into more of the traditional power management space, not RF power, but power management, right? You see that with GaN, you see that with silicon carbide.

Qorvo is a leader, obviously, in wideband gap solutions and so when we looked at the silicon carbide opportunity we wanted to enter into that market, but we wanted to enter it in a way that kind of had some unique technology and so that’s why we ended up buying a company called United Silicon Carbide.

And what makes that technology unique is we are using -- not to get too technical, but a JFET approach versus a MOSFET approach. And what that allows us to do and when we have come up with a way where you can drive that JFET where it looks like a MOSFET. So from a customer perspective they don’t necessarily see a difference, right?

What that allows us to do is really have the lowest RDS(ON) of any of the competing MOSFET solutions that are in the industry, but it also has CapEx and other ramifications. For an equivalent voltage rating or an RDS(ON) rating, we can get 2x the number of die per substrate or per silicon carbide wafer if you will, which allows us to be able to manufacture and scale our business at a lower cost if you will, right? It also doesn’t force us to have to get to the 8-inch technology as fast as maybe other people have to, because our economics are a little bit different.

So for us, we like that technology. Now Qorvo today, we play in automotive, we play in a lot of these markets that are using silicon carbide and our focus is really to kind of pick our spots, right? We are in automotive today. We are in all of the major segments that are using silicon carbide.

But we are going to really play the game of, if you need the RDS(ON) benefit, if that’s a value to you, were your go-to solution. And so we have big ambitions, maybe not as public and maybe as big as some other companies out there in the space.

But we like where we are at and we like our ability to scale it if we need to. We have a strong balance sheet. We know how to manufacture high-volume products. We understand silicon carbide. We can go as big or as moderate as we need to in the space and so that’s kind of where we are right now with it. But the results of that business have been fantastic since we have owned the asset.

Matt Ramsay

Just a couple of follow-ups there.

Phil Chesley

Yeah.

Matt Ramsay

So the -- where you guys are getting your raw way for substrate stuff is and you are buying it externally, I assume. Do you have contracts in place to make sure that you get supply to scale, I mean, the business side as well?

Phil Chesley

Yeah. We do. Yeah. I mean we have SK Siltron, we announced that, right? There’s others. But we are definitely looking at -- as the business grows we will continue to do those.

Matt Ramsay

Any plans to expand, I mean, there’s -- we have seen Infineon by GaN systems. There’s a bunch of stuff going on in the GaN space and sort of the periphery of autos, but in power, in general, and there’s obviously the IGPT franchises that are big and profitable for some of the companies. Is this a silicon carbide only approach for Qorvo, is this a broader power approach?

Phil Chesley

Today, it’s silicon carbide, but we are constantly looking at the GaN on silicon technologies and working on our strategy. We haven’t publicly announced anything, but it’s definitely an area of something that we are paying attention to.

Matt Ramsay

Got it. Outside of that, in your business, that it’s fairly broad, right, the Aerospace and Defense partnerships that Qorvo has had for a very, very long time. If you could maybe spend a little time after the re-segmentation. I think investors are trying to get their heads around just what’s in these different segments. If we can rank order, like what are the drivers of the different segments. So if you could just walk through the business a little bit and then -- and sub-segment it a little bit by size of revenue buckets and growth drivers, that would be helpful?

Phil Chesley

All right. So I will start with the Defense business. Defense business looks just like it looked before kind of re-segmentation. We -- this is where the core of our RF investment in mimics, in GaN technology, in 2, 2.5 and 3D heterogeneous integration is occurs and really the growth drivers around that is kind of what I talked about at the opening, right?

I mean we see the U.S. Government and our allies really looking to take the current state-of-the-art and accelerate, I’d have to be careful, I would say it, but accelerate what they are doing for advanced radar systems in a faster way than I have ever seen in the Defense and Aerospace markets.

There’s also a more willingness to sell advanced technologies to partners, right? So those two things are really driving what, I think, is an exciting growth opportunity for the business. We have seen that business grow year, after year, after year and we are going to continue to focus on that.

I think the other thing that I will say is that, where we play today, we are looking at SAM opportunities, expansion opportunities in that space, too, right? I mean, we are -- we look and say, okay, we are here, we are here, we are here.

There’s a technology here, there’s a technology here, we were going to go look at either organically or inorganically adding to that. So constant focus for us. I would say the way to kind of think about that is, I think, publicly, we said, what, about a third of HPA or can we put in...

Eric Creviston

In that neighborhood.

Phil Chesley

In the neighborhood, something like that. The second piece I would call is our Infrastructure business. There’s two segments to that. There’s our broadband cable access business, which we have been a leader in for a long time, continue to be a leader in that space.

We are going from DOCSIS 3.1 to DOCSIS 4. There’s a big upgrade cycle there. Short-term, obviously, inventory challenges, things there that you are working through. But the long-term view of the market is still healthy, we see DOCSIS 4.0 as being good for Qorvo and then the other piece is our base station business in the Infrastructure segment.

And that business, again, we are a leader in small signal today. I think from an end-market perspective. I don’t think the SAM of that is a high growth SAM in that market. But for us, there’s a big share opportunity in the GaN PA.

And what’s happening in that space is a lot of the suppliers, again, it’s how do you go from something big to something small? We are using our module -- advanced module technology that we have in the Mobile space and we are bringing that into this space where we are going to package with some of our advanced technologies for base stations. So really, I think, there’s a share gain opportunity for us in that market.

And then the third bucket I would say is the Power business. And that’s the -- kind of the traditional DC to DC and PMIC business, as well as the silicon carbide business and I would just kind of put those in the one, two and three kind of category.

Matt Ramsay

No. That’s helpful. Just really quickly as I asked, Eric, just sort of growth expectations for your business?

Phil Chesley

Well, I would say, double-digit. I won’t say strong double-digit, because I am not going to say -- that’s Eric’s word. But we -- again, I think, double-digit. Again, we are working through inventory correction. Everyone’s working through inventory correction. That’s a short-term thing. As I said in the opening remarks, I like our SAM’s doubling, right? And so I think we have a big opportunity there. So, double digits, for sure.

Matt Ramsay

No. I mean really interesting discussion. I think we have the big red clock as we have 5 minutes left in the conversation here and I do some of my buy-side clients would shoot me if don’t ask about the Mobile business. So here we go. The -- I don’t know if, Eric, if you want to take this or Doug. But we had a really long and interesting dinner conversation with Cristiano from Qualcomm last night and just time of talking about visibility in the wireless end markets, particularly in China. And I think you guys, on the last call, gave some further looking guidance than I would have expected out a few quarters as sort of we go from under shipping to getting shipping back with consumption and that obviously has a big ramification for what utilization is and margins and whatnot. But if you could just kind of in real time update us on where you feel like that is as we get towards supply-demand balance and return to growth?

Doug DeLieto

Yeah. I will start. The comments we made were that we are still consuming inventory. We began in December, consumed about 20% total inventory in the channel and that’s distributors and customers. Our components at distributors and customers, consumed about 25% in March.

Still consuming this quarter, expected to be still consuming inventory in September. Although that amount of inventory is coming down that we are consuming, right? So the headwind is diminishing.

We think that the inventories will be consumed by the end of the calendar year, right? So there will be a contribution likely in December of some growth in Android, right, and that’s contemplated in the margin guide.

As we start selling through our own inventory that’s burdened with underutilization, right? That’s a couple quarters. We haven’t guided to when that ends, but we are in the -- in terms of the channel inventory, that gets consumed this year.

The comments we have made about growth, specifically, September and we kind of guided for the year, and again, Graph [ph] generally guides for the full year in the first quarter, soft guide, right, are not reliant -- these comments are not reliant on the market rebounding. We are not saying smartphones are going to be up. We are saying 5G will be up modestly, 5% to 10%. We are saying 5G will be up in the double digits next year and the year after that.

But our comments are entirely on bottoming, right, coming off the bottom in terms of inventory issues and content gains at our largest customer. That’s what’s kind of been the basis for our commentary, not on any kind of enthusiasm for a rebound. Not this fiscal year, not through March.

Matt Ramsay

Got it. No. That makes sense and I think that’s pretty consistent with what you guys said. If we could just walk through a little bit, and Doug, I think, this is for you, but the gross margin levers as we get back to growth. I mean the margins have come down quite a lot, but we are obviously very, very healthy during 2021 and 2022 when the market was, we all found out later over shipping. But if you just kind of walk us through how should people think about revenue reacceleration tied to a rebound in margins?

Doug DeLieto

Yeah. So, obviously, right now, we are underutilized and we are not capturing all the revenue because we are under shipping, right? At some point, we will have consumed all the inventory in the channel and we will start capturing that revenue that we are -- that amount that we are under shipping, right?

But that -- a lot of that will be inventory, that’s already on our balance sheet that’s burdened with underutilization charges. So that’s why the margin doesn’t pop up magically when we have consumed all that inventory in the channel. We have to sell through our own inventory out of our balance sheet that’s burdened with those charges. That will take some time. There will be some hangover there. But we will be capturing the revenue, right?

Matt Ramsay

Right.

Doug DeLieto

And then over time, as you get closer to burning off our excess inventory on our balance sheet, you start cracking the fabs up, right? So there will be some overlap there where the fabs are cranking up and you get the benefit of the kind of the utilization improving.

Matt Ramsay

Got it. That makes sense. Just while we are on the margin topic with a little bit of time left here, for both of you guys, relative to the Mobile business, the margin profile of your two segments is higher, I would assume. But if you could give us any quantification of that, I think, that would be helpful?

Eric Creviston

Yeah. As we touched on already, we have the utilization dynamic across all the businesses…

Matt Ramsay

Yeah.

Eric Creviston

… because we do have our own fabs, right? So that ties some of the fluctuation together. But our goal, of course, is to be accretive both in gross and in up margin.

Matt Ramsay

So in a normalized environment. I mean is it significant?

Eric Creviston

So for CSG, this is -- when we are at scale, right?

Matt Ramsay

Right.

Eric Creviston

When we built out the business we see coming over in the coming years.

Matt Ramsay

Right. Magnitude there of like in a normalized environment without underutilization charges, you would expect these growth businesses to be slightly accretive to margin or significantly so given they are very different in customer concentration than Mobile would be?

Eric Creviston

Mobile has done really well. We have a very good business there. So I don’t think we have sized how much accretive to revenue line.

Doug DeLieto

Just the revenue, I have talked about the revenue growth. And I should add that the utilization hit right now is about 1,000 bps…

Matt Ramsay

Okay.

Doug DeLieto

… for the org. Just so it’s clear.

Eric Creviston

That’s the overwhelming factor right now.

Matt Ramsay

No. That makes sense. Our little red clock has said that our time is up here. But really thank you everybody for your attention and thank you guys for a productive conversation.

Eric Creviston

Thanks.

Matt Ramsay

Hope everybody has a great day at the conference. Thank you very much.

Eric Creviston

Thank you.

Phil Chesley

Thanks, Matt.

Doug DeLieto

Thanks, Matt.