Randy Jonkers - CFO
John Farr - President & CEO
Kevin Louve - B. Riley & Co.
James Lee - Potrero Capital
Pervasive Software Inc. (PVSW) F1Q2011 Earnings Call October 19, 2010 5:00 PM ET
Good afternoon my name is Sarah and I will be your conference operator today. At this time I would like to welcome everyone to the Pervasive Software Inc. fiscal year 2011 first quarter financial results conference call. All lines have been placed on mute to prevent any background noise after the speakers remarks there will be a question-and-answer session (Operators Instructions)
Thank you, I would now like to turn the call over to Mr. Randy Jonkers, Chief Financial Officer. Sir you may begin.
Good Afternoon and thank you for joining us, I am Randy Jonkers, Chief Financial Officer of Pervasive Software, while we wait for others to join I will go over to standard disclaimer regarding remarks on this call.
This conference call may contain forward-looking statements within the meanings of the Federal Securities Laws including statements regarding the company's or management's intentions, hopes, beliefs, expectations and strategies for the future. Forward-looking statements may include without limitation, statements regarding the following: future investments, sales, market growth and direction, competition, revenue growth, operating margins and profitability.
A detailed discussion of risks and uncertainties that can cause actual results and events to differ materially from such forward-looking statements is included in Pervasive's most recent filings with the Securities and Exchange Commission.
Pervasive does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this conference call. Also and as a reminder, our non-GAAP results for the quarters ending September 30, 2010 and 2009 exclude the amortization of purchased intangibles and stock-based compensation expense and present income taxes at a statutory rate of 34%.
We believe that the non-GAAP results described in today's press release and in this conference call are useful for an understanding of our ongoing operations and to assist the investor community in comparing Pervasive's non-GAAP results from period to period as well as comparing our results with those of similar companies.
We use these non-GAAP results to compare our performance to that of prior periods for analysis of trends, to evaluate the company's financial strengths, develop budgets, manage expenditures and develop a financial outlook.
Non-GAAP results are supplemental and are not intended as a substitute for GAAP results. Note that our call today is being broadcast simultaneously via the Pervasive website; welcome to those listeners.
In this call we will cover two primary agenda items. First, I will recap Pervasive's financial results for our first fiscal quarter then John will update you on our current operations.
Now for the financial results. Today we released financial results for the first quarter of our fiscal year 2011. Revenue was at the midpoint of our guidance provided on July 27th and earnings exceeded our guidance. Pervasive revenues totaled $11 million in Q1 compared to $12.2 million in Q1 of last fiscal year. A reminder, results from prior year first quarter included one relatively large transaction with a database customer representing approximately $2.4 million in revenue.
Our GAAP basis net income was approximately $500,000 in Q1 and diluted earnings per share was $0.03. Our effective tax expense rate in Q1 was 34.4%. Our non-GAAP net income in Q1 before amortization of purchased intangibles and stock-based compensation expense and tax of 34% was approximately $9.9 million, non-GAAP earnings per share was $0.05.
We ended the quarter with approximately $36 million in cash and marketable securities and had approximately $16 million shares issued outstanding. Also during the first quarter we repurchased approximately 1.2 million Pervasive shares on the open market at a total cost of approximately $6 million or approximately $4.85 per share. We generated approximately $1.5 million of positive cash flow from operations.
Our DSOs or Days Sales Outstanding were 67 days, which was an increase of five days from our prior quarter.
By geography our Q1 revenue was as follows: domestic revenue totaled approximately $7 million in Q1 or 63% of our revenue. Our international revenue principally Europe and Japan totaled $4 million or 37% of our revenue in Q1.
At a product level our database products represented approximately 59% of our business and our integration products represented approximately 37% in Q1. For our Business Xchange, DataSolutions and DataRush products accounted for the remainder.
Turning to operating expenses. Our operating costs and expenses totaled $10.2 million in Q1 including stock-based compensation expense and amortization of acquired intangibles in the approximate amount of $600,000 for a non-GAAP expenses of $9.7 million.
We had 228 employees at the end of Q1 which represents a decrease of one employee from the end of the fourth quarter and a decrease of 10 employees from Q1 of last fiscal year.
Now looking forward, we expect revenues in our second quarter of fiscal year 2011 to be in the range of $10.8 million to $11.8 million compared to $11.6 million in Q2 of fiscal year 2010.
We expect to increase sales and marketing headcount and marketing programs in advance in Q2 relative to the just completed first quarter. With that, expect GAAP basis diluted earnings of $0.00 to $0.03 per share. We anticipate that our effective tax rate for the second quarter will be approximately 34%.
Non-GAAP profitability is expected to exclude stock-based compensation expense and amortization of acquired intangibles representing approximately $600,000 in the second quarter of fiscal year 2011. With that we expect non-GAAP and fully taxed diluted earnings per share in our second quarter of fiscal year 2011to be $0.02 to $0.05. Our non-GAAP effective tax rate for comparative purposes reflects a statutory rate of 34% on pre-tax non-GAAP income.
We anticipate cash flow from operations to be between $1 million and $2 million for the second quarter of fiscal year 2011. Also as in prior quarters we are not providing specific guidance beyond Q2.
For EPS calculation purposes, we expect our GAAP basis and non-GAAP fully diluted share counts for the second quarter fiscal year 2011 to be approximately $15.8 million and $16.4 million shares respectively. Note that the share count estimate excludes the impact of any future share repurchases.
Now, let me turn the call over to John Farr, CEO of Pervasive Software.
Thanks Randy. I'm pleased to lead a team that quarter-after-quarter delivers on its commitment to profitability and innovation. Our 39th consecutive profitable quarter saw many notable milestones including general availability of Pervasive PSQL v11 which is optimized for multicore, continued year-over-year quarterly revenue growth from our integration products for the fourth consecutive quarter and continued uptake of our Cloud-based offerings.
Our innovation and execution continue to drive industry recognition, most recently with IDC's inclusion of Pervasive as one of five companies, and by the way the only publicly traded company listed in its innovative application development and deployment companies to watch under 100 million reports for 2010.
Now let me turn more specifically to various market trends driving our results and our strategic investments for the future.
In our database business, we believe Windows7 desktop and Windows Server 2008 Operating Systems for Microsoft will ultimately be a catalyst for small businesses to have great both their hardware and applications running on them. We are excited about the ongoing prospects for our currently shipping embedded database as PSQL v10 which is Microsoft certified for Windows 7 and Server 2008. We also believe they are going to computing and processing power represented by new commodity priced multi-core desktop and server hardware will ultimately be embraced by commercial software developers riding package business applications for the small-to-mid-sized business market, creating positive prospects for our multi-core enabled Pervasive PSQL v11 which we made generally available near the tail end of September.
We are already seeing exciting performance gains experienced by our customers with respect to the increased processing speeds on multi-core. Richard Shalowitz, Senior Vice President and General Manager of real estate and property management had SS&C Technologies. A Pervasive ISV customer recently said that has commodity multi-core chips proliferate. ISV's who are not prepared may learn from customers that their application performance actually degrades when they move from a single core to a 2, 4 or 8-core machine. Richard further indicated that Pervasive PSQL v11 will be very popular with its user base as it delivers enhanced performance as they inevitably adopt multi-core hardware platforms.
Robin Bloor of the Bloor Group recently blogged “the massive performance increase from Pervasive PSQL v10 to Pervasive PSQL v11 exhibits a version-to-version increase in transactions per second that I cannot remember seeing in the history of data base benchmark”. At a Hallmarks of our embedded database development have always centered our performance in simplicity.
v11 delivers both, the increased speed offered by multi-core as well as simplifying the complexity of the multi-core in development, deployment and use by our customers.
In our integration business, we believe that ever increasing scope and velocity of change in the digital world at the hardware, OS, Middleware and application levels, and on-premises and on-demand environments will continue to massively complicate the problems of integrating data and applications.
As such we are excited about our current Pervasive Data Integrator version 9 and our upcoming Pervasive Data Integrator version 10 scheduled for early adopter release later this quarter. Version 10 will include our new Services-Oriented Architecture, enhanced management capabilities and rich internet application style user interface. The service based architecture allows for extensibility, reliability and scalability while the user interface provides and intuitive internet browsing experience for designing, managing and monitoring integrations.
Our successful 25 plus year history in the integration business is testament to the technology's applicability and adaptability over time. Our integration revenues in the first quarter of fiscal 2011 represented year-over-year quarterly revenue growth for the fourth consecutive quarter and contributed the majority of what was a 500-day increase in differed revenue during the course.
Previous annual revenue growth rates for this business of 6% in 2008, 8% in fiscal 2009, and then again in 2010 and more recently a trailing full quarter growth rate of 13% over the year ago, four quarters combined so there is a positive momentum in our integration business.
In about two weeks, we will host over 150 of our customers here in Austin for our Annual Integration User's Conference. The conference features a highly interactive setting in which attendees participate in breakout sessions lead by both Pervasive technologists and Pervasive customers. It is designed for sharing best practices and integration of the innovative approaches to the data integration challenge. Several of our customers and partners are giving their valuable time to make presentations during conference including speakers from Adaptive Planning, Astadia, CGI Group, Planview and a retail group of Microsystems.
Attendees are getting inside Pervasive's integration roadmap including a preview of Pervasive's Data Integrator version 10 which is schedule for early adapter release for this quarter. Conference attendees will also receive updates on our technical advancements and future plans around our Pervasive DataCloud, DataSolutions and Pervasive DataRush and more on these businesses in a minute.
More importantly perhaps attendees will learn how to accomplish more faster using our products to successfully solve their persistent data migration and data integration headaches. We already enjoy our positioning as a Visionary in Gartner's Magic Quadrant for Data Integration Tools. It is a significant accomplishment to be reflected at all in a Magic Quadrant even more so to be positioned as a visionary.
Now just yesterday, Gartner released his Magic Quadrant for application infrastructure for systematic application integration projects. And we appear in this application integration quadrant for the first time as Gartner recognizes that Pervasive Data Integrator suitable for a wide range of integration project styles including data, process and SOA integration.
Gartner further recognized that our quadrant growth more recent and innovative integration as a service offering Pervasive DataCloud has attracted many years to access functionality particularly in salesforce.com. Software businesses exist more than to simplify the complex. And the complex challenges of data and application integration will only increase in our ever changing digital world in the years to come.
And with respect to our Cloud platform, we believe the Cloud is increasingly a platform of choice for application design, development and/or deployment. Our Pervasive DataSolutions team developed and continues to enhance our own 24/7 multi-tenant Pervasive DataCloud. Initially created to simplify and speed deployment and management of our own subscription based on-demand solutions. Pervasive DataCloud is now also leveraged by our integration products team to host the design, development and deployment of data migration and integration solutions created by our partners and customers.
We have close to 250 customers presently utilizing our Pervasive DataCloud running well in excess of 100,000 integration jobs in the September quarter alone. Our Cloud is gaining momentum. Utilizing a nearly relentless capacity offered by our Cloud infrastructure partner Amazon Web Services.
Our Pervasive DataCloud platform is the primary reason why IDC named Pervasive among its companies to watch list that I mentioned at the outset. It's also the primary reason information management including Pervasive amidst 40 companies to watch list earlier this summer. We as well as many industry analysts continue to be excited about the ongoing opportunities for Pervasive in the Cloud.
With respect to our DataSolutions business, we are growing our Pervasive DataSolutions subscriber base to more than 200 and continue to invest in systems and processors to automate as fully as possible the new customer experience. Initially, Pervasive DataSynch for QuickBooks and Salesforce addition. Our suite of solutions has grown over the years to support on-premise as well as on-demand versions of QuickBooks as well as support for Microsoft Dynamics CRM.
Building on Pervasive DataSolutions' simple, instant-on point-to-point hosted integrations for hundreds of customers; the team expanded its scope in fiscal 2010 with a WebStore that hosts both Pervasive and partner-created data solutions, all available as subscription services residing on Pervasive DataCloud. Demand continues to increase, both for existing offerings and for new solutions such as Pervasive DataSynch for FreshBooks and Salesforce and Pervasive DataSolutions team is teaming up with partner Keystone Business Services to develop and deliver Pervasive DataSynch for NetSuite and Salesforce, currently in beta.
As for Business Xchange, we believe Synergistic acquisitions can also provide access to new customers, new products and services, and new talent.
Our solid results have allowed us to capitalize on acquisition opportunities such as our ChanneLinx', now Business Xchange, asset purchase in August 2009.
The acquired business, operating as Business Xchange has the opportunity to add value to, and/or benefit from, each of our other businesses. For example, we recently announced the availability of agent technology to allow Pervasive Business Xchange users to easily select QuickBooks invoices and attachments to generate and send Electronic EDI-compliant invoices via the Pervasive WebDI business-to-business interchange. This is the first of many “last-mile” integration scenarios that ChanneLinx was not able to offer prior to the acquisition.
We have successfully completed our post-acquisition efforts to migrate Pervasive Business Xchange customers to our newest WebDI 2 platform. We have also begun migration of Pervasive Business Xchange customers to the Microsoft Windows Azure platform. These efforts provide the Business Xchange team with enhanced scalability which with additional future marketing in sales and investments sets up Pervasive Business Xchange for a solid fiscal 2011.
Business Xchange is gaining momentum, after a couple of contract renewals resulting in run rate revenue reductions they closely proceeded and closely followed our acquisition almost a year ago. The Business Xchange business has since grown run rate revenue by roughly 10% in the last 12 months. Our technology investments provide Business Xchange team with enhanced scalability which along with recent sales momentum will satisfy for fiscal 2011.
Finally, with respect to our DataRush business. We see an increasing GAAP between available hardware processing power and exploding volumes of data versus what the software industry has been able to deliver in comparison of the commercial applications to exploit multi-core hardware and efficiently extract useful intelligence from massive data sets otherwise known as big data.
The gap widens daily as the volumes of raw data accelerate and the hardware offerings are improving. The base of DataRush has been embedded AOL data flow platform that helps eliminate performance bottle mix in a data intensive application. Its expanded capabilities enable a broader range of users to cost effectively address the growing challenging complexity of big data providing dramatically reduced runtimes for data preparation and analysis and enabling the consumption of very large data sets, without having to rely on sampling or an expensive high maintenance clusters.
Dynamically scaling to fully utilized multi-core technology Pervasive DataRush enabled applications can quickly overcome data preparation bottle mix in cleansing, aggregating or de-duplicating data. Pervasive DataRush continues to turn heads with its eye popping performance on multi-core servers. As part of Intel's launch of Nehalem, Pervasive DataRush utilized all 32 cores on an Intel Server to deliver log file analysis throughput approaching 2 terabytes an hour. And was one of five ISVs featured on that Intel onsite. Subsequent testing on a 384 cores SGI Altix UV 1000 demonstrated that the same Pervasive DataRush executable that runs on 4, 8 or 16 cores does as intended scaled seamlessly across all available cores yielding world record throughput of around 1 trillion cell updates/second almost significant in genetic analysis avenue, Pervasive DataRush recognized its first revenue, license revenue in December 2009 quarter, and as far as new transaction in every quarter sensed.
In the September quarter we hired an additional DataRush sales rep to be based on the West Coast to complement our East Coast based VP of DataRush, Sales and Marketing and our sales team here in Austin. And we expect 2011 to be the year of Pervasive DataRush to generate its first $1 million in revenue.
In short, we are making strategic investments and are well positioned to benefit from important trends driving the market today and for the foreseeable future, while also maintaining our intense focus on profitability, I continue to speak routinely about the many opportunities for success including but not limited to multi-core becoming relevant and valuable to our large data base customer base and Microsoft Windows server 2008 and Windows 7 on the desktop ultimately becoming a real catalyst for packaged application serving SMB.
Our integration business continuing to grow as it has in particular over the past four quarters with increasing and more leverageable channel and recurring revenue and Pervasive's growing business in Cloud are DataSolutions business continuing to add subscribers in this solutions, and our acquired Business Xchange business being set out for a solid 2011 owing to first post year acquisition focus on technology stability and organizational scalability.
Our DataRush business successfully building an enviable leadership position in an emerging market and establishing credibility in next generation analytics and data mining markets for big data opportunity.
And we are bullish on Pervasive and we continue to buy our outstanding shares as we have consistently done so for the last 18 quarters. We acquired approximately 1.2 million of our shares on open market at a total cost of approximately $6 million when it's actually $4.85 weighted average price per share during the quarter ended September 30, 2010. Our issued and outstanding shares have now been reduced to a total of 16 million shares as of September 30, 2010.
Our consistent profitability and positive cash flows from operations have allowed us to substantially reduce our total shares and options outstanding while also maintaining a very healthy balance sheet and enabling us to strategically invest in our flagship products, our emerging products and our new innovation initiatives for the future.
Our consistently active share repurchase program reflects our continued confidence in the future as the business while also providing us a vehicle through which we can continue to return value to our shareholders.
Now Pervasive continues to enjoy many competitive advantages including solid improving product lines, a well developed channel and operating leverage, a very strong balance sheet, a furious focus on innovation and consistent profitability and positive cash flow. A quick investor relations note, we are scheduled to presume that the Security Research Associates 6th Annual Fall Growth Stock Conference in San Francisco on October 26 and AeA TechAmerica Classic Conference in San Diego on November 10. We hope to see many of you at these and other events in the near future.
I will now open the floor for questions.
(Operator Instructions) Your first question comes from the line of Kevin Louve from B. Riley & Company. Your line is open.
Kevin Louve - B. Riley & Co.
Starting with a couple of questions on the guidance, I guess first-half, the September quarter I think has typically been your slowest quarter absent, large compliance transactions. So curiously evaluate your guidance for Q2 here given the comments you made with respect to growth in both integration and biz Xchange as well as the fact that you have a version 11 of PSQL. Just wondering if there is anything you see out there that would actually cause you to fall below what you were in revenues further the September quarter.
First of all I'd say that years came off Q1 Kevin where we had a combination of factors, number one, it is the summer quarter which is [impactful] on us given our presence overseas. We were also towards the tail end as the version 10. The version 10 life cycle on the day based business. We are also nearing the tail end of the version life cycle for version 9 of our integrator product.
And as you can surmise by my lack of mentioning any large compliance deals, we didn't have any large compliance deals in the September quarter, all of that contributing to the $11 million result. And so given all that you can imagine that Randy and I want to be a little cautious as we set expectations for the next quarter as in this quarter, December quarter being the quarter in which we will release version 10 of the integrator product. And so quarters in which there are new releases can always have some impact on what would otherwise be normal ordering patterns.
We also have, with our newest database release it's not like ISVs who like to time their adoption of our technology to their own application release cycles. Doesn't mean that just because we have released version 11 that they are going to en masse automatically update the newest version.
So given all that, yes Randy and I want to be a bit cautious in the guidance that we provide. Now I'll tell you that it's always easier in business when you're on the front end of a version life cycle than on the back, and so we're glad that version 11 of the database is now generally available and on the market. And we're in that case selling performance gains, which is always a great value proposition to go to our ISV customers with on our database business and we are nearing the release of version 10 which will add some exciting new features that quite frankly have been driven by our customer request.
Kevin Louve - B. Riley & Co.
And to build upon some of your comments on the version 11 database release. I mean, what sort of visibility do you have right now in terms of application life cycles of your ISVs and what type of adoption curve would you expect to see as we move through the rest of this year and into 2011?
I mean ISVs are all over the board as far as their release cycles. But I think there is probably a concentration in the 18 to 24 month kind of timeframe. We tend to be 24 to 30 months ourselves. We will have ISVs adopt version 11 in the December quarter. We had at least one ISV adopt version 11 in the September quarter. There was the SS&C Technologies ISV that I mentioned in my script. So it begins right away. I think that sweet spot will build gradually or in the next several quarters.
Kevin Louve - B. Riley & Co.
And with respect to integration, I know recent quarters have shown a double-digit growth trend there. If you factor in the $500,000 the one in the deferred that's supposed to being recognized, are you continuing that double-digit growth rate on the integration side?
As you phrase that question, answer yes. Without the deferred revenue we were high single digits in the integration business, but one quarter does not trend to make, and the point is that we have had four quarters in a row of year-over-year revenue growth. And you put all those four quarters together so you smooth out the effects of seasonal quarters. You put all four trailing quarters together, we've got a nice healthy 13% growth rate over the same four quarters of the prior years. So, on this market that's pretty good.
Kevin Louve - B. Riley & Co.
And your deferred revenue line has actually trended up rather nicely over the past few years. I'm just curious how much of that is related to more of this integration business going to the Cloud and whether you expect that trend to continue in the coming quarters?
First of all I would say that the deferred revenue that we have on our balance sheet this quarter is in fact a record but there are some things in that number that will turn around and actually contribute to our December quarter results, jobs that involves some services and that we are still performing and couldn't recognize the totality of the deal and in the September quarter. So I won't guarantee that deferred revenue will actually go up again in December, but it's a very healthy balance. I think was $7.7 million on our balance sheet. That is comprised of traditional deferred and amortized and support maintenance. It is compromised of a growing subscription revenue base in the integration business from traditional tool sales that are now being sold in many situations as subscription, is comprised of deferred revenue associated with our DataSolutions business, our Business Xchange business, as well as our integration customers using the Cloud. Those are typically sold as subscriptions as well.
So you know this is part of what we've been doing for a number of years and that is building a more predictable revenue stream inside of our integration business as we become more and more channel and partner oriented as we have been for decades in the database business. And that is starting to show up in our deferred revenue line. Thank you for noticing.
Kevin Louve - B. Riley & Co.
And just some other questions before I turn it over. One, in terms of the subscription revenues you talked about, if you care to quantify what that number is first? And then two, the 100,000 integration jobs in the September quarter alone, just wondering if you could provide a basis for comparison either sequentially or year-over-year?
I am sorry, could you repeat the second part of that.
Kevin Louve - B. Riley & Co.
I think in your comments earlier you mentioned you guys did 100,000 integration jobs in the Cloud in September quarter alone. Just curious what the comparison is relative to the prior year or prior quarter?
So the first part, I had not quantified in the past the amount of revenue that is coming from subscriptions every quarter, but just call it, having (inaudible) not millions, not $1 million. So low six digit amortized recognized revenue, low to mid six digit recognized amortized revenue every quarter.
Second part of that question was on the hundreds of thousands of integrations. Actually the bulk of that number Kevin comes from the integration divisional customers who are now using our DataCloud manned to build, run and manage their own migration and integration scenarios. The bulk of those 100,000 plus integration jobs are run by those particular customers and we really only started adding the integration divisional customers to our Pervasive DataCloud in the last two to three quarters. So the same number a year ago, call it nearly zero. They are on top of that number. The integration to that are being run by our 200 some odd DataSolutions subscribers for DataSynch QuickBooks and Salesforce and those guys are running integration scenarios perhaps once a day, perhaps once an hour, perhaps once every 10 to 15 minutes, so I've seen them on top.
(Operator Instructions) And your next question comes from the line of James Lee from Potrero Capital.
James Lee - Potrero Capital
I jumped in a bit late, so apologize if you answered these questions already. So it sounds like the revenue or license decrease and also the guidance that is impacted by the release of new versions of integration of database. Would you say that's, [considered] to why the license was down 20% the quarter?
Are you referring to comparison of prior year throughput? Now the prior year Q1 as we noted in the release included in relatively large transactions of $2.4 million. There was a large transaction, $2.4 million in the $12.2 million result from last year.
James Lee - Potrero Capital
That is very unusual for Pervasive Software to have seven digit kind of transaction that happen to be one in our database business that was royalty catch up if you will in a situation where we were to do some relatively short number of years. We'd had one other transaction of similar size in the year ago March quarter that was in the $3 million range. But, again those are extremely unusual for us and that is in fact the main reasons for the decrease in revenue from prior year Q1 to this year.
James Lee - Potrero Capital
What are for Q2?
We've guided for Q2 now to, let's see, we just did an $11 million quarter in a quarter and yes we had guided $10.5 million to $11.5 million, and we have listed that guidance range slightly from $10.5 million to $11.5 million to now $10.8 million to $11.8 million.
James Lee - Potrero Capital
And when was the last time you released the version 10 of the database?
Gosh! I want to say it was two and a half years ago I think.
James Lee - Potrero Capital
So the increase marketing spending, that's the guidance for that or a key to that for supporting the new releases, right?
Yes, absolutely. And relatively speaking to Q1, we had been given revenue guidance coming into Q1. We were naturally little more cautious with, for example the timing of our backfills. We were hiring people to replace normal attrition in our discretionary marketing activity.
So Q1, the September quarter was low in relative terms on number of spending areas. Q2 will be up a bit we believe because we do think we will fill some open racks, as well as some planned marketing activities. I mentioned the iNEXT Integration User's Conference that we'll have in early November. That's always a big event for us, once a year type of event. And with our newest database version, for example we have a small mini road show which we do on a regional basis to continue to bring that new release, news to our ISV customers. The database team is in Denver today doing that kind of regional conference as we speak.
There are no further questions in queue, if you have any closing remarks.
No I don't. I appreciate everyone's time and attention and have a good evening.
This concludes today's conference call. You may now disconnect.
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