OmniVision Technologies Inc., F1Q09 (Qtr End 7/31/08) Earnings Call Transcript

OmniVision Technologies Inc. (NASDAQ:OVTI)

F1Q09 (Qtr End 7/31/08) Earnings Call Transcript

August 28, 2008 5:00 pm ET


Steven Horwitz - Director, IR

Shaw Hong - President and CEO

Peter Leigh - CFO

Ray Cisneros - VP of Sales

Bruce Weyer - VP of Marketing


Hans Mosesmann - Raymond James

Tristan Gerra - Robert W. Baird

Doug Freedman - American Technology Research

Mike Crawford - Analyst

Betsy Van Hees - Analyst


Good day ladies and gentlemen, and welcome to the Second Quarter 2009 OmniVision Technologies Earnings Conference Call. My name is Eric and I will be your coordinator for today. At this time all participants are in listen-only mode. (Operator Instructions).

I would now like to turn your presentation over to Mr. Steven Horwitz, please proceed sir.

Steven Horwitz

Thank you, Eric. Good afternoon everyone and welcome to our fiscal 2009 first quarter earnings conference call. After the market closed today OmniVision issued an earnings release reporting our financial results for our first quarter. You can access this release from the Investor Relations section of our website at Please be advised that this call is being webcast live and is also being recorded for playback purposes. Both the live webcast and replay can also be accessed from the OmniVision investor relations website.

Before we begin, we wish to remind you that certain information discussed in this call particularly our revenues and earnings target and our forward-looking product plan is based on information as of today, August 28, 2008 and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release we issued today as well as OmniVision’s SEC filings including our Annual Report on Form 10-K for fiscal year 2008 and our quarterly reports on Form 10-Q and other reports filed from time to time. During this call, we will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in our earnings release posted on our website.

And with that I will now turn the call over to OmniVision’s President and Chief Executive Officer, Mr. Shaw Hong. Shaw?

Shaw Hong

Thank you, Steven. And welcome, everybody, to our fiscal 2009 first quarter conference call. Joining me today are Peter Leigh, our CFO; Ray Cisneros, our VP of Sales; and Bruce Weyer, our VP of Marketing.

I will begin with an overview of our results for the quarter and highlight the company’s overall position. Ray will follow with a review from a sales perspective. Bruce will discuss our markets, our opportunities, and how our technologies are evolving. Peter will then provide you with the financial details of our first quarter and our outlook for the second quarter. We will conclude as usual, by answering as many of your questions as time permits.

Before we begin our regular agenda, I would like to say a word about our CFO, Peter Leigh. As you have seen, we have announced today that Peter will retire effective September 30. Peter will continue to work with us in a consulting capacity towards the end of the fiscal year. I would like to thank Peter for his contributions towards our successes during his four years at OmniVision and we will miss him.

We are very pleased to announce that promotion of Anson Chan, our VP of Finance to the position of CFO. Anson has been with OmniVision for two years. During his tenure, he has played a key part in the company’s effort to role his (inaudible) and he is leading by implementation of the Company’s new Oracle based ERP system. He has also played an integral part in leading and developing a global finance team.

Prior to joining OmniVision, Anson was a PWC Engagement Manager involved in OmniVision financers and business practices from 2001 to 2005. He also brings over 15 years of post-finance and the engineering experience making him well suited for the role of CFO at OmniVision. Anson is also here with us on the call today, and I look forward to his adding to the many contributions that he has already made to the company.

Let me begin our regular agenda by highlighting our first quarter financial results. Revenues were $174.3 million. Our GAAP earnings were $0.12 per dollar this year. Our non-GAAP earnings were $0.25 per dollar this year, and our cash and short-term investments at quarter-end remain strong, totaling about $279 million.

Our image-sensor markets we served are [constantly involving]. Our customers are continually demanding smaller higher quality sensors at more cost effective price. Our challenge is to meet the evolving needs of our customers which is what we have been successfully accomplishing since our founding in 1995, and at the same time to earn the satisfactory return on our stockholders capital.

FAS as already been widely reported. Recent weakness in the global economy that’s impacted the mobile phone industry. Softness in demand has increased the intensity of price competition in the lower end markets especially in China. As Peter will explain in more detail our product transition to newer smaller VGA sensors made it necessary that we defend our market share in the low end. However, this decision did have a adverse impact on our gross margin. Meanwhile, we are continuing to develop our high-end sensors which are targeted at higher resolution in smart phones.

Outside the mobile phone market, our best in class sensors continue to win more designs in the notebook computer market. Our success in this market is the prime example of OmniVision’s ability to identify new high gross market and to be successfully invest in those markets.

With now to the future, we continue to invest and make progress in the emerging automotive and medical markets.

During good times and challenging times, we have always maintained a relentless focus on advancing our technology and improving our cost structure. And we believe that it is our continued dedication to these pillars of our company that position us well to achieve better results when our end markets recover from the current downturn.

The first pillar I mentioned is technology; the lifeline of the company. As a pure-play image sensor company, we have a advantage over our competitors in that. We are solely focused on the image sensor business. It is this focus that enables us to maintain our technology leadership position.

And a heart of image sensor technology is the pixel, which we continuously improve up. By so shrinking the pixel is not enough to succeed in this business. It is equally important that the pixel provides a highest quality images even when the pixel is reducing size. For example, our OmniPixel3-HS architecture has doubled the low light sensitivity of our 1.75 micron pixel technology node.

This has put OmniVision in a leadership position for low light camera applications, like streaming video and still photograph in darker environment. Last quarter, we introduced to you our OmniBSI architecture, which fundamentally changes the way in which light is captured. A Kodak [rely] on the back side of silicon and leaving the metal circuits on the front side, by able to dramatically increase amount of light captured by the sensor.

By providing our customers with sensors using BSI technologies, their cameras will deliver sharper image across broader lighting conditions with more vibrant true-to-life colors. OmniBSI also makes it possible to reduce the height of the camera module, allowing mobile phone makers to design an even thinner phone. This is a key technology event for the industry. And all of the tier-1 mobile phones suppliers have expressed strong interest in our BSI-based designs.

The second pillar of OmniVision is a cost of effectiveness of our manufacturing supply chain. We continue to work diligently to reduce product cost as fastest as or faster than our ASP decrease. We are working closely with our partners. We have been successful in improving our overall production efficiency. We continue to work together with TSMC on newer and the lower the cost technologies.

VisEra, our color filter and micro lens joint venture with TSMC has expanded its capacity and is now prepare for our eventual migration to 300-millimeter wafer production. Our chip scale package partners continue to improve the [years] and we have increased our efficiency with the use of our newly installed automated final testing equipment. The result of all of this hard work has been that our gross margin has improved by over 500 basis points towards the end of our last fiscal year.

Obviously, we have disappointed in the reduction in margin this quarter. However, as we works through, the reduction in margin was a result of a tactical decision to defend market share. It is my believe that we have more grown to lower product cost and that we can continue to improve our gross margins.

The markets we serve remain competitive. However, by pushing ahead with technology improvements and maintaining our relentless focus on providing cost-effective solutions to our customers, we believe that we can and will resume our revenue growth.

With that, let me turn the podium over to Ray, who will tell you how we see things on the sales front, Ray?

Ray Cisneros

Thank you, Shaw. Our fiscal first quarter was a challenging one, and yet we were able to sell about a 117 million units. Some of our key customers showed some weakness due to a combination of economic market conditions, and in some cases, due to the tragic earthquake and flooding in China. However, we see sales in the mobile phone markets stabilizing in all regions this quarter and picking up going forward in all sensor resolutions.

There are couple of areas that I would like to call out in which we are having good success. One is the smart phone market, where we continue to take market share from our competitors, which will drive higher volume shipments this quarter for 2-megapixel, 3-megapixel and further out 5-megapixel sensors.

We are forward to strong position in these multiuse phones, especially in North America. The other area that continues to be a larger and larger contributor to revenues notebooks also driving all sensor resolutions from VGA of 2/3 megapixel. To support this business situation we have recently increased our wafer starts to be prepared to meet the improving demand.

In the first quarter just over 65% of our revenues came from mobile phones and just under 35% from emerging products. As for the unit mix in the quarter VGA and below was 70%. 1.3 megapixel was just over 15%, and 2 megapixel and above was just below 15%.

The mix shift towards higher resolutions in the upcoming quarter as 2 megapixel and 3 megapixel design wins with mobile phone suppliers continue to take hold. We should also have a more revenue from our 5 megapixel design wins a little further out.

During the quarter, the blended ASP for our products was $1.49. The decrease from the prior quarter was a direct result of the increased price competition in our VGA business in China, which Shaw already mentioned.

During the beginning of the quarter demand in the entry-level mobile phone market driven by China experienced a slowdown due to natural causes like the earthquake and flooding as well as regionally economic policies restricting consumer spending.

I would say, however, that recent changes in demand levels in China indicate by recovery and we are monitoring it closely so we can respond quickly. The market in China remains competitive with both small and large competitors targeting the VGA market. But we are defending our market share with the introduction of new, smaller 1/13-inch VGA sensor.

We are also seeing an important trend in which China market is moving towards higher resolution sensors for the mobile phone markets we will shift 2 megapixel and 3 megapixel sensor starting this quarter and we have plan to shift 5 megapixel sensors further out.

We are well positioned to take advantage of this trend with solid strategies and products.

Shaw Hong

Thank you, Ray. I would now like to turn the call over to Bruce to discuss our technology and marketing efforts in more detail. Bruce?

Bruce Weyer

Thank you, Shaw. Let me elaborate further on activities we are seeing in our key markets. I will begin with mobile phone, our largest market. We have already talked about the softness we have recently experienced in the lower end VGA mobile phone market. However, there are many indications that demand levels are stabilizing. Additionally, our reputation as a provider of leading image quality sensors continues to grow resulting in accelerating design win activities for higher resolution products. Our OmniPixel3-HS and TrueFocus ISP techonologies are recognized for providing very sharp images across a wide focal range even in low light conditions. Recent design wins in Tier I and smart phone suppliers should position us better for growth in the future.

In June, we introduced quarter-inch 3 megapixel sensor, that supports MDDI. MDDI is a high-speed interface promoted by QUALCOMM. We are encouraged by the prospects arising from this product introduction and have already secured design wins for the 3 megapixel product.

Finally, we are broadly recognized for leading in the development of BSI architectures. Our 5 megapixel and 8 megapixel OmniBSI architectures are generating strong interest among the mobile phone makers we already engaged in our first specific design activity as a Tier 1 customer. We look forward to sharing detailed information about these exciting products in the near future.

The second biggest contributor to our revenues today is our notebook business. Many of our key customers rolling out new platforms incorporate an embedded camera as a cushion to the fall [reforest] season. We also expect that demand will continue to grow through the holiday season resulting in approximately 80 million to 90 million notebook camera unit being sold in 2009. This would represent about 60% to 70% penetration of the total 130 million unit notebook market. Similar customers are pushing for cameras to be a standard feature on the notebook by 2010. Also keep in mind that we will be about 40 million to 50 million -- there will be about 40 million to 50 million webcams sold during 2008.

In the security market, we continue to find more and more companies increasing their presence in the IP camera market. During the quarter, we secured key new design wins in Tier 1 in high volume security camera providers. Customer acceptance has been driven by our superior performance in very low light operating conditions. The efficiency of our pixel technology means we offer significant leadership and price performance, thus enabling us to drive into a higher volume applications within the security market. We also continue to make progress in the automotive market. We are now shipping sensors for 360 degree [D-Link] applications. We have also secured design wins for blind spot detection systems, we are now building on our success in European and North American market by increasing our presence in a rapidly growing Asian markets.

In a metal core market, we secured additional design wins for our 1/18th inch sensor including win in Japan in market that traditionally has used only CCD technologies. Additionally, we have moved from design win to production with a major (inaudible) manufacturer.

In summary, our customers are very excited about our OmniBSI architectures and the new products we’re bringing into market. As a result, we are making solid design win progress throughout our target markets.

Shaw Hong

Thank you, Bruce. I would now like to turn the call over to Peter to discuss our financial performance. Peter?

Peter Leigh

Thank you, Shaw, and good afternoon everyone. In the first quarter of fiscal 2009 which ended July 31, 2008 OmniVision is reporting revenues of $174.3 million, up 3% sequentially and up about 1% on a year-over-year basis. Direct sales to original equipment manufacturers and value-added resellers accounted for approximately 60% of revenues in the first quarter of fiscal 2008, while about 40% came from sales through distributors.

Gross margin in the first quarter was 25.2% compared to 27.2% last quarter. Excluding stock-based compensation expense of $873,000, included in cost of goods sold, gross margin was 25.7%, down from the 27.7% we reported in the fourth quarter. The decrease in gross margin is directly related to our decision to defend our VGA market share and sell all our inventory of all the VGA products as we transition our customers to our new 1/13-inch VGA sensor the OV7690.

R&D expense in the first quarter was $20.3 million, down $1.3 million from $21.6 million in previous quarter. R&D expense this quarter includes approximately $2.9 million of stock-based compensation expense. Excluding stock-based compensation expense, R&D in the quarter was $17.4 million, compared to $18.9 million in the prior quarter. The decrease this quarter reflect the lumpiness in NRE expense related to the release of new designs to the foundries and we continue to expect long-term trend to be up.

SG&A expenses in the quarter totaled $17.4 million, up from $15.7 million in the prior quarter. Our SG&A expense includes approximately $3.2 million of stock-based compensation expense. Excluding stock-based compensation expense, SG&A in the quarter was $14.2 million, up about $1.2 million quarter-over-quarter. The principal contributors to the increase were higher employment cost, increases in outside services associated with the implementation of our new Oracle-based ERP system and an increase in commissions paid to distributors as a result of the fact that higher proportion of revenues in the quarter came through distributors.

Our GAAP operating income in the quarter was $6.2 million. Excluding stock-based compensation, operating income was $13.2 million. Our GAAP pre-tax earnings in the first quarter were $7.5 million. Excluding stock-based compensation pre-tax earnings were $14.5 million.

Our GAAP tax rate in the quarter was about 19%. When we exclude stock-based compensation expense, our non-GAAP tax rate was approximately 12%. Our GAAP net income in the first quarter was also $6.2 million or $0.12 per diluted share, compared to net income of $9.1 million or $0.17 per diluted share in the previous quarter. Net income in the first quarter of last year was $13 million or $0.23 per share.

A results for the first quarter of fiscal 2009 include $6.6 million of non-cash stock-based compensation expense and related tax effects. Excluding stock-based compensation expense, non-GAAP net income was $12.8 million or $0.25 per diluted share. This compared to non-GAAP net income in the first quarter of fiscal 2008, excluding $6.8 million of stock-based compensation expense and related tax effect of $19.8 million or $0.35 per diluted share.

These results were lower than we expected and lower than where we would like them to be. But, I want to emphasize that we made a very deliberate choice to defend our market position against some very determined competitors and to avoid the risk that the significant portion of last generation VGA sensors would be left on the shelf. We continue to believe that we are well positioned for the future.

Let me turn now to the balance sheet, which remains in excellent shape. The company ended the first quarter with cash, cash equivalents and short-term investments totaling $279.4 million. All of these funds are invested in highly marketable, highly liquid securities, and we do not hold any auction rate or other reset securities, which, for co-operations at least, continue to be impacted by the current unsettled conditions in global credit market.

Accounts receivable at quarter end net of allowances were $122 million, up $16.7 million from the last quarter. Our days sales outstanding were 64 days, but this reflect in large part the fact that our customers were more cautious in the early part of the quarter, and become more confident that business would improve towards the end of the quarter with the result that a greater proportion of revenues came in the last month of the quarter, and as usual, receivables are in good shape.

On July 31st, 2008, inventory was $110.1 million, compared to $115.1 million on April 30th, 2008. Quarter-end inventory represented 78 day sales, which is equivalent to annual inventory turns of 4.7 times. Our goal remains for inventory to be in the range of 75 to 90 days equivalent to annual turns of four to five times. We are comfortable with the level and quality of the inventory we have.

Let me turn now to the outlook for the second quarter of fiscal 2009, which will end on October 31st. We currently expect second quarter revenues will be in the range of $160 million to $180 million. This should translate to GAAP earnings of between breakeven and $0.12 per diluted share. Excluding the estimated expense and related tax effects associated with stock-based compensation, we expect non-GAAP earnings will be in the range of $0.13 to $0.25 per diluted share.

We do expect to see some modest improvement in gross margins as our product mix shift towards higher resolutions. How much they will improve will depend to a great extent on the medium-term pricing environment over which for obvious reasons we have limited control.

Operating expenses will be not more unusual as we increase our investment in OmniBSI designs and release those designs to TSMC. Our results in the second quarter will also reflect third full quarter of depreciation on our new facility here in Santa Clara and the first four quarter amortization on our newly up and running Oracle ERP system.

Before I turn the call back over to Shaw, I do want to take the opportunity to publicly thank all of the extraordinarily diligent and hardworking finance and accounting staff here at OmniVision for their excellent support over the years.

I am proud to be leaving OmniVision at a time when company is in excellent financial shape with a very strong balance sheet. As Shaw mentioned I will continue to work with a company in a consulting capacity through the end of the fiscal year and I look forward to assisting Anson as he assumes to his new responsibilities.

With that I will turn the proceedings back to Shaw to some strategic commentary.

Shaw Hong

Thank you, Peter. We have always been a leader in the CMOS image sensor market. We have accomplished this by having a sustained focus on advancing our technology and improving our product host structure. We are continuing to use this trend to support our ongoing success in working to maximize our returns to investors.

Operator, we are now ready to take questions.

Question-and-Answer Session


(Operator Instructions). Your first question comes from the line of Hans Mosesmann. Please proceed.

Hans Mosesmann - Raymond James

Thank you. Just one question, I think Bruce may have mentioned or Ray that wafers starts have started to move upward, and that your guidance is roughly speaking rather flat, so much below seasonality. How do you explain that, or would you say that as towards the end of the year you are going to see the more seasonal aspects relative to this wafer start increase?

Ray Cisneros

Hi. This is Ray Cisneros. There are combinations of reasons why we have to do that. Obviously, just the natural balance of supply to the marketplace and what we had to do in the previous quarter, obviously it brings the situation we have to prepare for the next round of products to replace that older VGA and so we have to prepare for that. The other reasons for increased wafer starts as we have mentioned a shift to the larger resolution sensors which means they take their much larger dye, so they incorporate, so they take up more wafers. So, with that resolution mix we have to be cognizant effect that requires more wafers.

Hans Mosesmann - Raymond James

Okay. And then as a quick follow-up, in terms of this mix of the aging or the older VGA product, how is that inventory situation perhaps out there on your balance sheet, how is that declining? I assume that it is becoming much of a factor in terms of inventory?

Peter Leigh

Hans, this is Peter Leigh. In fact, we sold out the older generation products and have to re-order them. So, the answer is, the risk at this point is negligible.

Hans Mosesmann - Raymond James

Excellent. Thank you.


(Operator Instructions). Your next question comes from the line of Tristan Gerra. Please proceed.

Tristan Gerra - Robert W. Baird

Hi, good afternoon. Could you talk about the timing of the 300 millimeter fab migration in? And potentially what this could do to overall capacity given that it does seems to be already some of the capacity in the market for CMOS sensors with some older fabs been converted to CMOS sensors production and putting pricing pressure on VGA specifically?

Bruce Weyer

Yes, Tristan this is Bruce Weyer. From an economic standpoint, we have found 8-inch fabs to be very economical in producing our VGA product. So, we have not had to transition that product into 300 millimeter fab. Obviously from a strategic standpoint, we continue to look at our entire portfolio and ensured that we target each resolution at the appropriate family resource to be at 8-inch or 12-inch and also the different process technologies related to that.

Tristan Gerra - Robert W. Baird

Okay. In terms of the revenue guidance obviously well below seasonal, how much of this is due to excess inventories at CMOS sensors on the market as appose to potential market share losses to the extended -- you’ve said that you had to match aggressive pricing at VGA so the assumption would have been that basically you would have been able to protect your top line. So is it just a continuation of weak trends specifically in China even though you mentioned that the market was rebounding or is anything else we should read into to working your guidance?

Bruce Weyer

It’s couple of factors here planning for this situation. Obviously, I would say the mobile phone market there is still softness in that market and the demand overall and as well -- and particularly the entry level of phone market so that plays a big part of it. The other part of this is some programs anticipated in the 3 megapixel have been slightly delayed. So combination of these two factors has basically the main reason for our current guidance.

Tristan Gerra - Robert W. Baird

Great. Thank you.


Your next question comes from the line of Doug Freedman. Please proceed.

Doug Freedman - American Technology Research

Hi, guys. Thanks for taking my question. Can you talk a little bit about where the company stands on lens on dye technology? And where you see that fitting in?

Bruce Weyer

Yes. This is Bruce Weyer again. Obviously, we stay on the cutting edge of technology that you seen with the OmniBSI architecture announcement we made. And certainly lens on dye technologies are something that everyone is monitoring closely and considering for the next generation in the market. So certainly we got our eye on that technology and we are doing internal assessments and if not yet this time announce any technology that into the marketplace but we continue to monitor that and we will discuss that at the appropriate time.

Doug Freedman - American Technology Research

Is this impact ownership that all liability at the industry was just switch to lens on dye type of product?

Peter Leigh

This is Peter Leigh. I think the short answer is no. I mean first of all our ownership interest we then take is reasonably small and we are not going to allow our ownership at a small stage in a CSP supplier to have a major impact on our choices about technology. That’s just not possible.

Doug Freedman - American Technology Research

Alright. Is it possible for you to give us what your ASP declines are in the forward guidance, so what your expectations are for the marketplace?

Peter Leigh

I think I am going to have to pass on that one. We have, as you well know, the great difficulty that we are the only supplier in the sensors, who talks publicly about ASPs, and we feel ourselves to be a good enough target for our competitors as it is without putting the sign on our back saying shoot here.

Doug Freedman - American Technology Research

Alright, thank you. I’ll get back in the queue, if I have any further questions.


Your next question comes from the line of Mike Crawford. Please proceed.

Mike Crawford - Analyst

Yes. Can you talk about the reserves taken in 10 COGS the benefit in COGS, previously we –?

Peter Leigh

Yes. So, Mike, Peter Leigh again. The reserves taken during this quarter were around $2.5 million and the revenue is about $2.5 million. So, the reserves taken this quarter were a little bit lower than previous quarters. But let me just add, if I may, the fact that when we talk about the decision we took in the VGA, this I think perfectly illustrates the fact that looking at these reserves as a separate element is not necessarily very helpful, because when you make a decision to lower the price, what you’re really doing is taking that number and putting it into your regular cost of goods sold and instead of in a later quarter having to take it as a reserve.

So, I don’t think you should pay too much attention to the reserves in any particular quarter. As I have said on a number of occasions, I think every semiconductor company has this and it’s just a standard part of doing business in this industry.

Mike Crawford - Analyst

Right, thank you. And then, did I hear correctly 117 million units shipped in the quarter.

Ray Cisneros

That was correct. In the fiscal, in Q1, that we just closed out.

Mike Crawford - Analyst

Great. Thank you very much.


(Operator Instructions). Your next question comes from the line of Betsy Van Hees. Please proceed.

Betsy Van Hees - Analyst

Thank you very much for taking my question. I was wondering, could you give us a little bit more color on the notebook market? How are you seeing the trends for the current quarter and as we go into the balance of the year?

Ray Cisneros

Hi, this is Ray Cisneros. The trends are pretty dynamic and pretty encouraging. We like – as we mentioned, the resolution mix into the notebook market is pretty broad and we are happy to see that the VGA megapixel and 2 megapixel are shipping today. We do have engagements at 3 megapixel, going forward in the future. The seasonality of this business is also taking hold, and on the other hand, year-over-year we see growth even within our own numbers.

Betsy Van Hees - Analyst

Great, thanks. And then just to understand that mobile phone market, you commented that you guys had seen softness in the lower-end phones, particularly the VGA, but you saw signs of stabilizing. And then, if I understood correctly, you said that there was still softness in the mobile phone market. So, I was wondering if you could help us understand a little bit better as we move into the quarter where I think you guys are up. Thanks.

Ray Cisneros

Sure. I would say that our fiscal Q4 and our fiscal Q1, there was a continuous slow, I would say downslide, and by that that’s what we meant about softness. However, you see a bottoming out, that’s my interpretation of the data with, in fact, some slight up-tick in the mobile phone market across all resolutions, across all regions and across all tiers. So, that’s what we mean about the softness. It’s not the big robust numbers that we’re typically seeing this time a year ago. But that’s a general statement to the overall market, that’s my reference.

Betsy Van Hees - Analyst

Okay. And so, you are seeing order rates improving then picking up.

Ray Cisneros

Yes, yes.

Ray Cisneros

Okay, great. Thank you so much for taking my questions.


We’re showing no more audio questions at this time. I’d like to turn the call over to Shaw Hong for closing remarks.

Shaw Hong

Thank you. That concludes the call and we look forward to speaking to you next quarter. Thank you.


Thank you for your participation in today’s conference. This concludes our presentation. You may now disconnect. Have a good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to All other use is prohibited.


If you have any additional questions about our online transcripts, please contact us at: Thank you!