Datawatch Corporation (NASDAQ:DWCH)
Q1 2016 Earnings Conference Call
January 28, 2016 08:30 PM ET
Sanjay Mistry - Vice President, Controller
Jim Eliason - CFO
Michael Morrison - President and CEO
Bhavan Suri - William Blair
Richard Davis - Canaccord Genuity
Ilya Grozovsky - National Securities
Joe Fadgen - Craig-Hallum
Greetings and welcome to the Datawatch Corporation First Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Sanjay Mistry, Vice President, Controller. Thank you, sir. You may begin.
Thank you, Christiane. Good morning, everyone and thank you for joining us today to discuss Datawatch’s Q1 ’16 financial results.
With me on this call this morning are Datawatch’s Chief Executive Officer, Michael Morrison and Chief Financial Officer, Jim Eliason.
Our press release containing our Q1 ’16 results was issued yesterday afternoon at 4 PM and is posted on our website.
You can also request a copy by emailing us at firstname.lastname@example.org. This call is being broadcast live via webcast and following the call, an audio replay will be available in Investor Relations section of our website, www.datawatch.com.
Following the prepared remarks, we will open the call for questions. The operator will provide instructions at that time. Before we begin, I’d like to remind you that any statements we make today that do not describe historical facts may constitute forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Any such statements are accurate as of today, January 28, 2016 and are subject to a number of risks and uncertainties that could cause the actual results to differ materially from current expectations. We undertake no obligation to update any forward-looking statements.
For information, I refer you to the descriptions of these risk factors found in our earnings release along with the company’s Annual Report on Form 10-K for the year ended September 30, 2015, as well as other publicly available documents filed with the SEC. Any forward-looking statement should be considered in light of those facts.
I would also like to remind you that to supplement our financial results, prepared in accordance with Generally Accepted Accounting Principles, we will from time to time discuss certain non-GAAP financial measures that we believe are helpful in understanding our financial performance and future results. A reconciliation of our GAAP and non-GAAP financial results is contained in the press release issued yesterday and is also available in our filings with the SEC. Our non-GAAP financial measures are not meant to be considered in isolation nor as a substitute for comparable GAAP measures and should be considered in conjunction with our consolidated financial statements prepared in accordance with GAAP.
With that, it’s my pleasure to turn the call over to Jim.
Thanks, Sanjay. Good morning, everyone and welcome to the call. As you can see from our press release, last evening, we are off to a slow start in fiscal year 2016. Although we at this point with the initial pace [ph], there are some encouraging metrics that bode well for future quarters which both Michael and I will touch upon in our remarks.
With that, let me briefly share some of the financial results from the just completed quarter.
Q1 total revenue was $7.1 million, up slightly from Q1 of the prior year when it was $7 million, less than we had anticipated as noted in our release, due to what we believe to be a temporary shortfall in the Monarch business.
License revenue for Q1 FY ’16 was essentially flat year over year, coming in at $3.2 million.
Maintenance revenue for the just completed quarter was $3.6 million, up some $200,000 from the prior year. Services revenue of approximately $300,000 was down slightly from Q1 FY ’15 when it was $377,000. As I’ll describe momentarily, deferred revenue continued to grow nicely driven primarily from our license subscription model.
Gross margins, excluding amortizations related to IP, were 89% in Q1’16 versus 85% in the prior year quarter. License gross margins were 94% which is consistent with the prior year’s license gross margins. As I have stated previously, the improvement in overall gross margins largely reflects the shift to an online portal to deliver web-enabled training classes.
Our non-GAAP loss for the first fiscal quarter of 2016 was $2.2 million versus $2.5 million in Q1 of FY ’15. The loss is higher than we expected, driven exclusively by the after [ph] mentioned revenue shortfall. Our non-GAAP expenses came in at $9.4 million, down significantly from Q1 FY ’15 when they were $12.1 million. For the third consecutive quarter, we purposely maintain our expense base in the mid-$9 million range, and we’ll continue to do so, while also shifting investments across the organisation, as our business model continues to evolve throughout the year.
On the balance sheet side of things, our cash position remained strong, as we ended the quarter with approximately $33 million of cash on hand. Accounts receivables remain in decent shape, with roughly 77% of our outstanding receivables in the current aging category.
DSOs are 78 days for the most recent quarter versus 81 days in Q1 FY ’15.
Deferred revenues grew more than 20% or up some $1.4 million from the prior-year quarter. License deferred revenues is driving this impressive growth with our switch to a subscription pricing model in mid FY ’15 related to our Monarch complete data prep product offerings in land and expand initiative.
License deferred revenue increased almost 20% sequentially and nearly 200% year over year. For the third consecutive quarter, subscription bookings have grown. In Q1 FY ’16, we added bookings of more than $600,000. In addition, I would like to point out that during this past quarter, we recognized almost $400,000 of deferred license revenue from previous quarters. The total license subscription bookings over the past three quarters is now more than $1.7 million and continues to track and feel positively.
Our ending headcount for Q1 FY ’16 was 153 people, essentially flat with Q4 FY ’15 and down significantly from last year’s first quarter when it was 189 people. Included in the Q ’16 headcount numbers are 24 quota carrying sales people, of which 13 are inside sales reps and 11 are outside sales reps. Lastly, our total shares outstanding as of December 31, 2015 were 11,653,000 and weighted average shares outstanding were a 11,635,000.
In closing, while we acknowledge that we are off to a slower start than expected in FY ’16, we have been diligently working on course correction areas in the business that didn’t perform up to expectations. We remain confident that we can achieve our objectives for fiscal ’16 and we’ll continue to work hard as a team toward achieving those goals over the next three quarters. With that, I would now like to turn the call over to Michael Morrison.
Thank, Jim. And I want to provide some color on the slower start to the fiscal year which was a quarter that while late, also represents an important step forward towards achieving our longer term growth objectives.
On our last earnings call, I laid out three specific sales initiatives that we are pursuing as a growth agenda for not just fiscal 2016, but beyond. But first which is to win a competitively significant amount of self-service data preparation business through an aggressive land and expand business model, the second was to focus on our extensive customer base, specifically our top 250 customer accounts, to drive near term and then longer term license revenue growth, and third was to extend our real-time visualization leadership in capital markets where all of the top 10 Tier-1 banks use us today.
With regard to the first initiative, related to increasing our self-service data preparation business, we actually exceeded our internal goals for the quarter, selling 131 new name customers of Monarch data preparation, more than double the number we sold in Q4 of fiscal 2015. We also made some very good progress, cultivating partners for self-service data preparation in the Tableau, Qlik and Watson Analytics partner ecosystems, as well as with the top large volume resellers that have the opportunity to open up a large base for our land and expand model. As we have noted this in the past, this segment of our business will heavily biased towards a subscription licensing model. Therefore, the in-quarter license contribution, beginning last year and then continuing into Q1 from this initiative was modest, but it is finally important as we build a strong and growing deferred revenue base going into the second half of FY ’16 and beyond.
Finally, it’s noteworthy that this quarter, we saw our first early exams [ph] for our self-service data preparation from the first adopters of our new product in Q3 of last year. The preliminary data is encouraging, however, we have too few data points thus far to draw any firm conclusion as to the average time to move from land to expand and the average size of the typical expand deal. I’ll also add that our annual development approach is bringing new data prep innovation to market, literally on a month to month basis.
The closed loop collaboration we have with customers, with partners, with prospects, reassures me and the company that our Monarch data preparation solution is truly a force to be reckoned with in this growing market.
We continue to direct more selling and marketing investments towards upselling our customer base and our top 250 initiative. We had aggressive goals in Q1 and came up short of those expectations, due in part to the timing on certain larger transactions which we expected to close in Q1, and also in part to the fact that this initiative was really just kicked off at the beginning of Q1.
Our Monarch base is extensive, it’s proven to be loyal and repeat buyers, as we build our self-service data preparation business through a land and expand strategy and pursue strategic applications for real-time digitalisations in capital markets, we must engage our current customers and provide an overall customer experience that encourages and facilitates add-on purchases.
We’ve recognized our need to improve the focus and attention on this important group and have implemented actions to improve our results from our customer base in order to drive in-quarter revenue performance and increase the life-time value from our customers.
With regard to our real-time visualization initiative, we moved several important opportunities along the sales cycle during Q1, so none of the larger ones actually closed.
As I indicated last quarter, these opportunities are larger, they are more strategic, more difficult to predict from a timing perspective. We continue to hear from our customers and prospects that there really are no viable commercial alternatives in the market, other than extensive and unpredictable build-it-yourself approaches. So, we are confident we are on the right path in this market with a highly differentiated solution.
Looking forward into Q2, and the remainder of FY ’16, we remain committed to improving our execution on these three sales initiatives and expect to achieve the internal goals and objectives we set out for ourselves at the beginning of the year.
In self-service data preparation, we are building upon our success from Q1 by aligning ourselves with the named self-service analytics players in the market, players like Tableau, Qlik, Watson Analytics, Microsoft Power BI.
With our offerings positioned as one that will leverage customer investments that [ph] others have made in these leading self-service analytics tools and using our data preparations to further extend the value of that investment.
We are also aggressively engaging their partner ecosystem as resellers, influencers and implementers of our Monarch data preparation technology. Finally, we are continuing a broad based marketing awareness program to get the word out to the masses that we have a solution like no other that can differentiate their businesses.
On the target 250 and the broader customer base sales initiative, we’ve already implemented several new programs and strategies to capture the opportunity in our existing customer base. We recently conducted the three week list to the base that included nearly 12,000 touches [ph] to nearly 5,000 customers, resulting in almost $1 million in added pipeline for the current quarter.
We’ve introduced several pricing promotions, subscribed [ph] new business, both on a subscription basis and on perpetual license basis, and we’ve dedicated additional technical and support resources to key customers to assist in closing the larger opportunities. I am confident all these activities will result in improved results from this key segment of our business, consistent with what we’ve seen in the past.
Finally, on the real-time visualization front, we will stay determinedly focused on strategic real-time visualization opportunities that play to our key differentiator and work to move these large transactions to completion. These are resource intensive projects, but ones that are mission-critical and priced accordingly. We are committed to moving with speed to address the large market opportunities, quickly recovering from our somewhat slower start in FY ’16. We firmly expect increased and tangible results from our redoubled efforts this quarter and throughout the fiscal year.
With that, Christiane, I will turn it over to you to open the lines for questions.
Thank you. We will now be conducting our question and answer session. [Operator Instructions] Thank you. Our first question comes from the line of Bhavan Suri with William Blair. Please proceed with your questions.
Hi, Michael, Jim, thanks for taking my question. Just to start off with, you talked about sort of the reacceleration in the business, some of the things you are doing, but as you look at the pipeline, you look at the close rates, which again sort of, we had the issue obviously in the first quarter, but help us understand where the confidence comes when you look at your business from the reacceleration through the year? Like, help us understand how that’s playing out and what you are seeing maybe with a little more color that allows us to get some comfort in that?
Sure, Bhavan, as I noted, the big shortfall was with our customer base we’ve had than the sustaining portion of the company for 20-plus years. We knew we had to embark on this new program to get into the land and expand around self-service data preparation and also, more of a focus on visualization. I believe we did a reasonably good job of that, what we didn’t do a good job of was keeping out an eye on the ball with what has sustained us for the last five, ten, 15 years. So, getting back to having a sort of fundamental base of business, in my opinion, is the least challenging part of everything we’ve done in front of us. And like I said earlier, we’ve put a lot of effort into that, we are laser-focused on getting that back to speed. The other two pieces of the business, especially the land and expand, in the early days, we were [ph] ahead of what we expected. So if we can continue that and also not forget or leave behind what got us to where we are today, we’d be quite comfortable with the outlook.
Okay, okay. And then I think you sort of said that you added 131 new data prep customers in the quarter which was good to see, but if I take that and I take the 200% growth in deferred and $29,000 average deal size, we get into these deals, still fairly small deals sort of three seats, four seats on average, does that make sense or are they larger than that, obviously skewed by a few larger ones. For the net new customers, how should we think about the initial land size of the deals for the data prep side?
Yes, Bhavan, it’s Jim. Definitely, that’s impacted the average selling prices, because, as Michael pointed out, most of the data we have is – we have good data on the lands, and we are going into this, I was probably projecting about $2500 average deal size, it’s actually coming on in more, higher than that, $3500 on the land.
We got a couple small expands, but I think the metrics on the expand, we are going to play out over this quarter, next in – my feeling is we are going to have a very good idea of where that’s landing by this summer.
But not a lot of good data expand is really the answer.
Got it. Okay. And then if I turn to the real-time visualization piece, you are seeing a lot of interesting things coming out of competitors, you are seeing real-time sort of stuff coming out of Google, Dataflow etcetera, you feel that market is starting to get the idea of the value of real-time data and slide data and motion analysis, or we are still early for that given a year ago, or say, let’s say probably a few months ago, we are certainly for that market maybe and a little ahead of where it was going to be, do you feel like it’s catching up or is it still a while to go for that?
So, it’s still early, not as early as it was a year ago. As I mentioned, the top 10 Tier-1 banks are customers of ours, probably 18 of the top 20 are, it’s coming and we stay very close with the likes of Gartner and Forrester and the others and they say the same thing. It hasn’t tipped over quite yet. We’ve got some very unique technology there and we are doing a lot of work internally to focus the group on what we really do differently than others and leverage that up. We didn’t do that coming out of the gate [ph] after the acquisition. So, our pit [ph] rate is better right now and the deals we are involved in currently, as I indicated earlier, they are larger, more strategic, they take longer, they are more resource intensive, but once you get in there, you are a vital player in that ecosystem. The other thing that’s and this is early, but the other thing that’s important there is, we’ve seen in some early day anecdotal episodes that once they get there, you are bringing along the data prep as a natural extension of it. So, we think that there is good opportunity there for us. We’ve got to just stay laser-focused on what we do well and stay away from the broad based visualization marketplace.
The one last one for me, for Jim before I turn it over, Jim, as you look at the initiatives you talk about, so reaccelerating some of the spend and presale, technical support, sales, marketing, promotions, and then you look at the cash flow for (21:45) the business and the cash on bank, help us understand how we should think about that capital allocation, of course, there and how we should – are you guys potentially thinking that you would be at a cash flow breakeven-ish point despite the investments at some point this year, or some color on how we should think about that?
Sure. I mean, the way I think about it, Bhavan, so still is a revenue miss versus the [indiscernible] right. So, spending have been flat over the last three quarters, [indiscernible] mid-9%, and I’ve kind of where we are managing them to on the whole and we will continue to do. As part [ph] of the allocation, we are constantly having discussions and making tradeoffs between sales, marketing and engineering, but the way to think about it is, clearly, we are shooting for higher revenue numbers than what we just reported. I fully expect we [indiscernible] line to the – down to the left on the lock side, because the expenses are not going to go up in the short term. So, I don’t know if that answers your question, but it is really a focus – if we are doing any investing, it’s on the sales, it is more on the marketing [indiscernible] side and sales we are constantly looking at. We are only investing in what the return is on it.
Yes, I guess the question is, is that, but then how you think about that in the competitive environment situation where you have some very well capitalized players who want to capitalize on data prep market, because obviously seating up [ph] and you guys are seeing it, other folks are seeing it and the capitalization structure of those companies allow them to invest much more aggressively in R&D, sales, pre-sales, etcetera [indiscernible] you guys think of that competitive environment approach, given sort of that you are saying you are going to start spending a little more and then we have obviously the natural sort of – there is only a limited amount of cash?
Okay. Bhavan, and this is Michael, and it is a good point. I mean, we talk about this, if not daily, weekly, right.
I am sure, yes, you do.
Yes. Look, we have in our estimation a very unique technology set, we had some missteps on the execution side, we are playing very – data prep and visualization, although visualization broadly is getting a bit commoditized, we are playing in visualization, it’s still – there’s not a lot of players, we look at how we can – we are well capitalized for a microcap company, but we have to be prudent about our investments and we think, at least, today that the best way to do it is to get focused on what we do really well and start building their business. We know there is – you look at the – there is a bunch of data prep players, private players that have gotten some significant funding [ph] around in valuations in the last couple of years, which is great for us, because it’s just proves out that this is a hot part of the market. We’ve got to be a little bit more disciplined as a public company in terms of where we put our investments that – to show value.
Got you. All right, guys. Thanks for taking my questions. Appreciate it.
And the next question comes from the line of Richard Davis with Canaccord Genuity. Please proceed with your questions.
Okay, thanks. Two kind of things and I guess the data prep angle, so, one, it sounds like, I just want to make sure I got it right, the primary effort on data prep, so far the success has been leveraging kind of preexisting relationships with existing customers, Monarch, etcetera. So, that seems to make sense to me. But if I’m a prospect, has your assertion that you are kind of best-in-class suggestion, have you guys – do you have any testing, and blessing from independent validation sources, right? So if I am a – buyers are [ph] skeptical, so that one. And then the second question would be, you mentioned Qlik and I just didn’t know if you were – I didn’t understand if you are partnering with them, or are you just working their ecosystem? So those are the two questions I had. Thanks.
So, Richard, it’s Michael. The first one is, there’s a few industry analyst reports out there that sort of talk about our data prep technology in the context of other ones. We go to market leveraging our 20-plus years of history, the innovation we’ve got in the Monarch engine, which can do all really hard stuff. What we’ve been doing the last 18 months, and we’ve talked to you about this is, is making the user experience so simple that we can take all the hard stuff and bring it to a typical end user, the business analyst. There is – you know the players, everyone knows the top five or ten that are vying for the data prep leadership position, and some sort of lean towards data scientist, some towards business analyst, we certainly lean towards the business analyst and differentiate on our ability to get at all these multi-structured sources, we’ve been doing it for 20 years and I think it’s going to be in – the next year, the market will – while there is some independent research out there, the market will sort of elect winners and losers and we are quite confident. Yes, the second part – the second part of your question, Richard?
Was it Qlik? With Qlik –
Are you partnering with them, or you just kind of work in their ecosystem? I think that frankly they need your help, so that’s why I was asking it.
Yes. So, what we’ve done – I mean, post the Panopticon acquisition where we bought a – at a high level of visualization technology, there was, as you would imagine, some disruption in marketplace. Today, where we go to market is largely leaning with data prep. The visualization serves a specific purpose, it’s real-time application embedded, oriented which really isn’t – Qlik doesn’t play there, Tableau doesn’t, it’s not where they want to play.
So, we have a very nice marketplace where we do really hard stuff. On the data prep side, we are clearly being very agnostic. So, we’ve got – we’ve been able to revive relationships with Tableau, with Qlik, we never had one with IBM Watson, but we’ve got one now and the others where our value is getting data and specifically, multi-structure data and putting into a self-service analytic offering. So, we want to be the [indiscernible] them all. It’s working and we started this four, or five months ago, it’s working very well. So, the reaction we are getting from the partners, they are not – none of them are reselling it yet, none of them are – we are just part of that ecosystem. We are very aggressively going after the partners in that ecosystem and certainly the customers. We’ve recently turned over several very large opportunities where – we are an incumbent on data prep, and they need a real-time embedded visualization offering, but just something for the masses, that’s not us, so we’ve turned that over to some of these other players, it’s early, but the early results and reaction are quite positive. We are going to continue that.
Richard, can I just add a little color to your first question to make sure? So, just to be clear, the 131 net new complete customers are not Monarch traditional customers that we are just converting over, right. They are net new either a current Monarch customer that’s not interested, it’s net new buyer in that customer, or it’s a net new customer. We do have situations where we convince the classic user to upgrade to complete, we are counting within that number.
Got it, got it. That’s helpful. It sounded like you guys, the best, the easiest connection is through an existing customer to go – to upgrade, that was my point. Yes.
Yes, okay, no doubt. And by the way, we have a lot of those that we don’t include in that 131. It’s only just the Monarch customer that we know just want to use it for Monarch, but might be compelled to pay a couple of extra dollars to get the other capabilities. We know that that that’s not a land on our way to expand. So, 131 is a very pure number and sort of gives us some reasonable confidence that we are on the right path.
The next question comes from the line of Ilya Grozovsky with National Securities. Please proceed with your question.
All right. Thanks, guys. My question was about the partnerships that you guys have announced over the past 12 months or so and kind of get an update on where you guys stand with those partners?
So, Ilya, with the larger ones, I’ll [indiscernible] very quickly. So, we talked about a relationship with Dell last year. Dell decided to initially just embed our visualization into their advanced analytic offering, we actually had – last quarter was the first quarter we had a joint offering available in the market. They sold a couple of deals, and actually a bit of revenue from those deals are in our last quarter’s numbers. Our expectation is that during the course of this fiscal year. So, that’s going very well. There’s a good pipeline building. We would expect that during the course of this fiscal year, we could accumulate a seven-figure bookings number for the business. As everyone here knows, Dell and EMC are going through a bit of a courting relationship there. Inevitably, that will likely put some disruption into business. We’ve seen little of it yet, but we expect there will be some. It’s early days. We are very pleased with that. And a quarter ago, they took their initial interest which was visualization and this [indiscernible] in fact, it is something I said a bit earlier and they saw that there is a whole bunch of data sources they can’t get into their application and we are working to extend the relationship to include data preparation. IBM is a bit of a hit or miss. We talked about it. We started off, not last fiscal year, but the year before and we get sporadic business. We did close some business with IBM, IBM closed business last quarter. The relationship there is that we reported the following quarter. So, we’ll have some – we have some IBM business into that. Where we are focusing our partner efforts today, because we are leading with the data prep, there is a huge opportunity with these large volume resellers, the SHIs, and Zones and CDWs. [indiscernible] who runs our partner organization is spending a good deal of per timing or team’s time and educating that part of the partner market, it’s a mass market, from marketing perspective, it’s carpet bombing as opposed to laser-focused and we’ve done a lot of work this past quarter. We expect to see some results this quarter and throughout the fiscal year, but that’s where we are putting a lot of our partner efforts today.
And the Xerox relationshiup?
So, Xerox, we’ve had some revenue from it, it’s still an active relationship. I think from both [ph] of our perspectives, we expected more. It’s a bit of – the business problem they are trying to solve are readymade for our technology and it’s more of a – the two of us trying to figure out that how to manage [ph] selling software into a Xerox ecosystem where – historically, their lead has not been software, it’s been a services-led or BPO-led agenda. And so, we are – again, neither one of us would be claiming victory at this point, but we are working through how to best get that solution into the cusotomers’ hands.
Got it. Thank you.
Our next question comes from the line of Joe Fadgen with Craig-Hallum. Please proceed with your question.
Yes. Hi, guys. I am here for Chad today. First question, I guess on the visualization side of the business, how often would you say that your visualization technology comes into play or is the major influence on a deal that you do? And then the second part of that question I guess is, given that the visualization – your visualization growth rates seem to be below kind of market rates, what should investors look for to see and know that, like they are really participating in this market and that you are real player there?
So, it’s – Joe, the two answers to the first part of your question, when we laser-focus on where we play well, which is in capital markets, a lot of front office and middle office applications, around the trade flow and monitoring and surveillance, there is huge opportunities, it’s us versus build-it-yourself. So, they are more complex, they are longer sales cycles, they are more resource intensive, they are strategic, they are larger type deals, those continue to play well. And in my prepared remarks, I noted that, again, we’ve got all of the top Tier-1 banks that are customers, we’ve got opportunities in several of those and others that progress during Q1, but it is a bit of a crapshoot, when you get them, you get them. We try to move them forward, the larger opportunities. We also sell it into our existing base, into a data prep led agenda. It’s a nice extension of it, but it doesn’t dry those deals, it’s a very good complement to it. So, our plan – and next quarter, we’ll talk a little bit more about the spend [ph]. Our plan is to get more focus and organize around those more complex figure opportunities and also make it somewhat easier and more elegant to add that on to a data prep opportunity, something that’s led by data prep where visualization would be a nine to have as opposed to requirement.
And then last question for me, I guess on these [indiscernible] deals or these deals that didn’t quite close, where those focused primarily in – among like financial markets or capital markets, financials customers or was it more broad based in that?
It was mostly within our existing Monarch based where – ever since I’ve been here, there’s a regular cadence in [ph] some business, that’s just – it doesn’t just happen, but because we’ve got so many customers, there is an expectation and it – this was the first quarter since I’ve been here that it felt noticeably lower than what you would expect. And frankly, some of that is on us, because we were putting a big effort on the land and expand and reorienting our visualization. It’s nothing that – I’ve got little, if any, concern that that won’t get back to traditional levels very quickly.
Okay. All right. Thank you.
We have no further questions at this time. Mr. Morrison, I would now like to turn the floor back over to you for closing comments.
Thanks, Christiane and thanks again everyone for joining us. As I always say, if you’ve got any follow-up inquiries, just reach out, we are happy to talk to you anytime. Thank you.
Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
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