KVH Industries (KVHI) 7 Mar 222021 Q4 Earnings call transcript

Good day and welcome to the KVH Industries, Inc. Q4 2021 Year-End Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Roger Kuebel. Please go ahead.

Christine. you, Thank and KVH everyone in for us joining earnings Good fourth thank quarter for morning. this Industries' we included results, today release morning, published you which the are

the introduce I couple announcements. the on Before call, others of a quick

like and First, website the earnings on our Investor Relations copy release if a of is it you available would from our team.

a our If you available call, on website. it today's would like recording to will of listen to be

to If ir@kvh.com. you're submit web, free via listening questions the feel to

forward-looking to certain no assumptions in contain that from will are may any numerous call conference We obligation this expressed to statements and revise or cause of subject Finally, undertake those update statements. these our differ these that to uncertainties statements. actual results materially

in find as measures our the in comparable to We filings, will also under expect to on XXXX other cautionary we as discuss of well the GAAP you specifically heading which made those certain Investor directly non-GAAP the and you'll of XX-K, press measures. in available tomorrow. website. Form Information our Risk definitions non-GAAP The are measures release review X, third XXXX SEC our of November statements and financial these company's file XX-Q reconciliations from our encourage filed Form quarter to SEC filings section Factors We these our measures,

of Bruun; Joining now. going me Chairman words on of Martine Technology Board Officer, Chief Chief Brent say Balog; the company's Bob the Cathy. to Officer, the few who call appointed the are Directors, Executive a and newly Interim is Cathy

everyone. Thank you morning Roger. Good

this everyone thank morning. Martine, in said, dialed I'm Cathy who to Roger like As would has I

update share Directors. Board of the the quarter Before we get KVH the to I from wanted to for an results

way release Martin and the from in most a of generation all recently want In make President, our has may a for our Heyningen roles leadership we his The at more Chairman thank we on After as is Kits believes Board We this you his announced to As and CEO, company, Executive on than Board the XX order that van he Martin needs core years value. the next retiring seen morning and company have to to transition. KVH its and drive has leadership businesses capitalize that towards profitability. to KVH. for opportunity, accomplished. that create KVH at believe to focus tremendous opportunity service to that press

this. engaged executive addition retirement In to we shareholder We a these search that recognized announced Martin's will in value. actions a to organizational achieve nationally aims firm help CEO. also an has Board today restructuring increased identify result to believe The new

more Brent in has with to the almost to with full current our has a confidence Chief the Brent customers. with Our him. XX forward to The walk Executive deep Brent. Board working Interim our for assume Officer. it over businesses I COO Bruun And that years and has closely highlights Brent been him looks of the of and quarter. from will will and he role understanding through KVH turn

Cathy. thanks for Good joining everyone, Thank you us. morning

KVH X the reduction. quarter. of the we in a businesses the the an we force to KVH like personally contributions order Cathy company grew also mentioned This gyros, necessary growing where particularly fiber company I and too and quarter exceptional future has VSAT, here. to a becoming to which focused I his strategy would to for the discuss decision year, work him built I in an built like as I'd in which AgilePlans, address He around Martin Before to are for wish want incredibly to all fourth endeavors. his to profitable have but optic name thank leader was many and are best the need difficult our all

align our better associated and to cost businesses. achieving reduce expected to count critical operations The head our with our and is from need our goal. restructuring reduction expenses also these of revenue We

to this the are to to everyone know of doesn't want who I them this everything all for doing assist news make However, ensure thank dedication can the our KVH today and any for to during we're I transition. impacted, easier committed we colleagues

quarter Turning new to the the initiatives delivering achieved focused. year becoming overall we proved fourth will quarter and results, fiscal the including require that year more and while expectations, profitability

before decline business will last of segment to supply of and drive of the bit to run through to million shortly. more I'm for increased more million. our continued XX strategy from in a over and address who strong our demand a about quarter which our in XXX.X to year TACNAV due go large fill offset full issues in $X detail. talking mobile orders turn This decline a I'll in chain limiting TACNAV it was reflects year. $XX to results the a connectivity Inertial to million largely QX revenue. revenue quarter was fourth in ability Revenue the Our lumpiness then for forward more through walk We by going numbers some to by part I the million our Roger our products. detail

revenue EBITDA for quarter XQ the Our XX.X from Mobile was XXXX XX.X million. of quarter was fourth up $XXX,XXX EBITDA year. a the fourth roughly last loss was million in $X of million connectivity while

XXX fiscal for revenue versus mobile the million XXXX. Our full up year was million connectivity XX.X

in our which a new legacy air were subscribers. network QX subscribers number up included XX% of Our time

in XX% satellite and all for QX. While our VSAT of for rose revenues XXXX. XX% wind the the We completed legacy airtime of quarter network down

of our network. operating a those increase ARPU for network we're to and all in air time HTS the legacy on our comparison network As [ph] costs the global HTS eliminated seeing legacy VSAT network. our We an on customers in now subscribers are result,

migrating with quarter however, TV terminals. systems of network of antenna some also it chain and have we which with to conjunction strong expect connectivity our VSAT a legacy and customers, In the our HTS delayed trackers anticipated, a KVH use customers boating commercial Spring. expanded the solid and satellite vessels satellite new supply will HTS order fulfill. territorial antennas expect strong Indian network operate service were we this but I migrate working to a As Shipments by VSAT XXXX season successfully some challenges Thanks are leisure backlog additional and permits television that was who in we mix enter waters. we the to in the market that we will shipments, for

we Indian can vessels. addition, services trade. connectivity now a the shipping region global is satellite flag In for This critical area offer to

TracPhone demand markets VXX also seeing are all across system. continued We strong VSAT our for ultra-compact

continue on our improving have also our focused margins. boost and we connectivity hardware, on AgilePlans subscriptions, In we gross rate improve and to shipments revenues and to increased airtime leisure our airtime our points our revenue grow, margins, price mobile For order plans.

to the customers offer light fiber subscription XXXX our adjust will the cost our rates. help a margins but our global and shipping We to cost XXXX. our new reduction AgilePlans. Inertial Total million declined was Inertial revenue standard navigation to increased shift, and from X.X expedited for of XX% QX QX million as a TACNAV shipments X.X in gyro far part In as quarter in revenue excessive, year-over-year. up in military expenses expense and as air market on include necessary optic beyond implemented network due we of our to renegotiated substantial these margin throughout business for enable our changing structure, and cost regularly services time based shipping and shipping us continue demand, controls, improve targets. HTS evaluate for and The changes and all our products terms prices our recently We

while million year. versus For year decline to revenues prior FOG we XX.X TACNAV the flat due sales TACNAV full at revenue grew XX.X roughly again overall to the XX% were million, the and FOG of

limited lead Mobile to did challenges. Inertial increase from could supply positioned million. recently year. we product navigation continue Overall components with QX are and we ship and change products, QX ongoing QX also backlog and we Connectivity sensors, enter with of of revenue through higher sensor challenges we as what Inertial prices that our component well $XX times this for about raised the Inertial anticipate will we costs we key As address these in Longer resulting product XXXX

our parts of support, side business received we TACNAV revenue services. sustaining military from the and On modest

is base TACNAV sometime ago including market receiving for U.S. to end nature significant We the a military has in but XXXX. due the of revenue been XXXX of order guidance We early uneven ceased however our new we our margin now XXXX. delayed. the it likely know TACNAV it receive high you not As product, vehicles for anticipate forecast in and expect a included order at more It timing. is or to

path now I'd forward. like about talk our to So,

and we leaders continue where that services products AgilePlans, Ensuring better will costs sustained I where To in VSAT earlier, exercise maximizing for products businesses do sense the increasing primarily make where focus on these imagining win to from moving at are to can we mentioned pricing product We're often away critical. around not are initiatives. As and and new achieving in more margins or investments we job This a market our strategic discipline going financial company. do is profitability. on our to invest by means we also FOG. we products, is summarize

that the maritime the important KVH For the our discussions the the is operators. next radio sale Group. example, of finalizing for we're commercial Things in of currently within We sell store believe anticipate We to in of long-term Media assets Internet month.

built have our software KVH and to KVH dedicated Watch meet We class world that using Solution need. terminals

expected. demand market speed matured has initially to not we the However,

As requirement terminals. result a dedicated expensive the and we're eliminating

integrating terminals into connectivity future instead VSAT expert remote other systems. are and AgilePlans our capabilities support We or flow deployed and actual

work conservative with our at In after subscription revenue In aggressive was as in connect for we're significant going our to We're feature services terminals some addition, current outlook, look our keeping forecast. ways additional offer not next service we finding reduction launch. in for to our XXXX Clearly margins. product step. plan to opportunities point any continuing to cloud and in to a restructuring be reduce force including the [indiscernible] unique We're IoT organizational generation costs. a

increasing achievable share makes for have our which guidance the initiatives on through will focused strength confidence We're as the of very have information here discussed our more in it see XXXX value. can We will I and you walk to execute a sense. business believe stay will target. going as on Roger today. we shareholder we

to the Roger back turn the for Now over numbers. will call I

Thanks Brent.

quarter XXXX. As earlier, XX.X million revenue compared the recorded in fourth quarter to XX.X at in came fourth mentioned our million Brent of

to year-over-year XX.X revenue Service year. an increase from $X for decreased fourth XX%. By quarter XX% from XX% gross the increase Revenue service increased fourth with revenue quarter of was X.X margin by for from segment, or This Revenue million was due in of segment our of or quarter the as increased profit XX% million margin connectivity X.X consolidated Our with gross compared last in $X.X the in revenue. Inertial in million the the VSAT primarily XX%. or mobile with slightly margin broadband to quarter gross revenue fourth airtime XX% related Airtime fourth XX.X%. year margin XX.X increase year. X.X last was million Segment grew XX%. our from fourth million Connectivity XX.X% the million, million decreasing Navigation decreasing over to from was last quarter gross Mobile of XX% many XX.X approximately and a million to

expect ceased services. all network As have improvement our we down network additional the our that XXst. on have see HTS VSAT will midnight many we Virtually have that who while ArcLight we to associated customers our network shut with in migrated, costs service on a Brent mentioned, margin happened legacy costs December to at and

continuing with are associated charge transition who network of XXst. those customers by not legacy the monthly $XXX,XXX. did The and was We December customers approximately recurring migration migrate

for resigned XXX customers we these monthly over recurring charges. February, and $XXX,XXX January just of of During over

particularly Spring, resigning continue their vessels to expect for throughout leisure XXXX network We the in customers customers as seasonal former summer. legacy commission the

X.X to note fourth primarily year. them. Mobile TracPhone that prior in should million segment, all million for expecting quarter product increase was of increased of I sales XX%, not our in the XX% product or X million revenue an quarter Product However, or the resign of the a we Connectivity to by fourth due decrease XX.X sales. million, By XX.X are from

terms mentioned, which sales X.X due or of was product sales XX%. Brent significant by last revenue those migrating we continue. that decreased line, this As were customers Navigation quarter This number so trend product decline in to fourth for approximately large a to we're cautious in product decreased million which of expecting Inertial VSAT of a year's lower very million compared order. X tactical quarter, our navigation had to being

million, We despite revenue could million X by FOG million Nav, have X.X segment to more within Inertial constrained product the Navigation estimate of year. for Operating last quarter, those strong issues Within without margin we primarily Gross up was XX%. sales. to from lower OEM which was the X.X gross year. quarter of gross and quarter that or constraints. XX.X margin the this compared sales million in to Inertial quarter which the million, Service X.X decreased of supply margins. were the last fourth Mobile TACNAV down was X revenues due million fourth sold have quarter lines X.X X.X for expenses million chain fourth down Connectivity million increased the

of quarter this the KVH of However, XXXX. a of media the business impairment result unit fourth in our drop for XX.X charges is million

income the million, a compared margins, operating quarter due impairment a adjust to about $XX.X you driven expense higher recorded these primarily in million, primarily changes improvement loss If operating loss revenue, X.X in which of in year's up X.X At was lower impairment XXXX. for expenses loss the $X salary Again, with resulted the and operations and charge R&D. was fourth the was an level, from charge. million funded million by last of OPEX of

with an segment operating million, the to XX.X X.X last year million loss Connectivity generated of Mobile operating due of charge. an Our impairment profit compared

X.X Navigation Inertial X.X our compared profit quarter, with loss operating an million While million the segment of operating had an year. last of for

million. X.X Our was unallocated compared last loss million year’s to X.X

excludes a net net a compared in unusual our net quarter charges, and For basis, with On amortization which losses, fourth per X.X loss quarter for $X.XX with last other X.X based obsolete quarter loss same fourth in gains EPS we year. the net a inventory costs stock compared last same with fees, and a and million million adjustments XX.X share, compared loss EPS foreign of a forgiveness, non-operating exchange, of those period to per valuation profit million of the was net impairment of recovery, year. loan tax intangibles, other our as compensation, compared had $X.XX the non-GAAP related tax loss such $X.XX loss gain per a net was after from last transaction share adjustments, of and year. quarter of was in loss share Non-GAAP million non-recurring last X.X a year. income the $X.XX recorded per allowance changes for EPS the non-GAAP of share fourth effects

million EBITDA quarter the compared last was quarter X.X million adjusted the for negative a with X.X Our in a positive of fourth year.

compared for please XXXX earlier delivered in of for backlog as For the the subscriber were million, was by published solid the a operations within cash million, to Connectivity the To we and Navigation services approximately demand million products fiber color complete of optic million, to used of reconciliation million earnings December on Navigation was million segment. provided strong as product our in operations Inertial shipments. give of Inertial the was less some XX.X quarter in of which AgilePlans segment, alone. our earnings our million our FOG non-GAAP ending growth resulting million million. is X.X products anticipate balance release, of that XX.X driven X.X which quarter morning. XX.X Backlog expenditures which Mobile Total X approximately our at provided last XXXX gyro guidance is of end additional we XX.X delivered financing than the for for scheduled to be during X.X in provided line our by to of million was well by cash XX.X includes was during Net about year. Cash XX.X end quarter fourth majority at activities and approximately approximately refer for Capital fourth was be scheduled this measures, the release the XXXX.

will orders product the as flat While to good XXXX a orders, likely term, TACNAV in or down Mobile XXXX XXXX result, line migration high the we AgilePlans. Connectivity for see continue a to as not of due sold long well in not programs any our may product we prospects volume Compared outlook shift that revenue to and to include it our continuing over will be hardware year. large appears the as have for for large slightly

Mobile network we who growth For suppressed to will our add more by stranded even don't Services Connectivity year-over-year expect the than the be legacy rate in resign, customers to XXXX though customers in new we did network XXXX.

X% expect in consolidated annual and and As our XX we said we between growth million EBITDA together, be adjusted taken to between X% when and million. release, XX all revenue earnings

for second are targeting the operating year. Importantly, we of half the income positive

impact these and estimates Operator. don't on Q&A current call. mind the problems the open of I in our our for concludes that chain over the However, assume worsen that to supply to of the Operator XXXX. prepared in turn this will now the This the please call line macro keep business remarks portion morning's

you. from Thank our first Instructions]. [Operator Ric Prentiss We'll with Raymond question James. take

Thanks. Good everyone. morning,

Hey, Ric.

kind A the Hey. you something that is planned looking obviously, any midterm feel gave guidance the to you're can wondering, within on? recently could CEO just deliver first, of still on two you targets something thoughts that on but is year horizon, still the three for be, where you questions; new couple

I to we to call term concluded the are. that a We've and need been a to plan. back of we'd then let go long a up where do if come and surprised lot work be of but and at probably of, back at wind reaffirming of kind exercise through like we we people we've need to on sort think looking back subsequent sort know this look of of at wouldn't go sort we all I I sort moment, we are sort think think and the to we just through of sort is next relook. to turn that thing the

not be are today, so take a going Okay, still at look off? might able to and reaffirming to you it pull it

Yes.

Okay.

value that there all you've IP prototypes, created with stuff etc? projects the second and in The vehicle autonomous question, is you did any the with

There's think to as terms revisit is think look that, need lot when to in far of believe forward we at to I there that sort of we that is of we something it going when value a continue it. sort push But in demand there. is. and we the as be of

demand we wants little get market lot the the think the what in I on bit the actually of a with developed and want to that. evolves. want in of and when isn't front something up perhaps is a out IP what that to But terms you we don't in may demand definitely maybe, comment Bob, wind there we've of develop, value

just not just things for Yeah, autonomous products value intellectual lines, we like also value. the but well, And as regular patents, filed standard the that, not application. product property to

So extremely company. valuable to the

margins improve still And put line into can product all product side, product would into we thinking and the would kind what on you putting think line that of the margins real that get achieve? the

into Yeah, hope would know, it level we is now. right as margins of would we solid But have as they and we really get specifics that can't from you there. improve

is, is you kind to a you're Okay, you timeline as and trying the expecting search? do one to for there take, last of a timeframe search process get kind date of me nationwide are what CEO that

I will question. take that

hoping within that As come days. to into We're said, looking we have we're search the but to to engaged for process XX I the do candidates the firm. XX

specialties you in? sets, are key skill the helps. think this to that that bring what CEO five new the skills And want see to you say, That two really top attributes, are

and well. in be result global the can as would and of having experience number and experience organization Well one, clearly, leadership of stabilized global through markets transition. in making sure a this telecommunications Working transitions as that companies technology helpful be is

number global at looking technology is and skill number sets are we one telecom So and experience two.

for Thanks taking today. my it. appreciate call Great,

Okay Ric, you. thank

with [Operator Quilty Instructions]. take from Quilty We'll our next Chris question Analytics.

Well Speakers] CEO. [Multiple clearly, representing

don't the fail the a a customer to whether issue people may mean upon the on winter not wanted should from I they transition bit how discrete service QX is which come you many realize and on So certain turn to to we upgrade, they know I on done, follow-up loss QX subs, the off can us of tell I back based little of may drop again? when need or and expect

utilizing go financial the Yeah, ARPU specific remained, at in And into our XX Roger not have especially so subs a the project nature we them been to anticipate might and more December, numbers. we're the VX have because are coming and of suspended talked the HTS And about they seen impact we centimeter were is many subs of many to relatively But that these and seasonal of going that their low. portion back of that's users. type significant what of seasonal network. remaining we're

Understand, longer-term? you into margins, was in costs, talk million at X savings and play or does is the how over are terms as migration upper million X when it XXs to the I expect go about that of you net it you XXXX, into looking network XXs up which where out towards possible still to get think we

We've longer to the term, getting that's over will the In in range. mid XXs -- it never definitely be term over -- I high shorter the possible.

shipments shipments some you and whether I think out record and AgilePlans overall last often was mix. quarter, had And there you of around call notables here wondering to were highlights QX? just Understand, in and percent statistics or the I know give any

very sort of a remain they shipments. over percentage, of XX% So commercial high

mentioned, high of customers those QX it Brent a had lot we shipments well. had products I remain also We product. a So new some as does think as but were record obviously very in of migration, VSAT of

trajectory in there's of the I would and of terms initiative. change say terms of the success So no in that --

primarily on outright, VX? models, higher still VXX do purchase customers a percentage the And certain the of to you and expect end hardware

are Yes, particular. -- in these and

to I you've the where just a year terms the a give of recap moved production, it's can production into you of volume? Okay. about guess since transition Shifting Inertial sit and cost, in the over us what you tech Navigation, there been

style product own tower. beginning our we aware, fiber the shut transition, year, this down We old that the just the fiber. were think as So of finally I at drawing you're

So terms cost QX I'd of we still fiber periods with not say still tower we're issues of QX perspective and that respect cost drawing, that to issue that, are a in with the had transition sort from respect cost to sort our of cutover still there's the that.

seeing benefit QX, still start all we'll products product that this that as we all but there's we point sort I need to that think in So now seeing at we get transition really got it. other have -- we start the I where but will expect of but sort through now of are to actually think, and one but the pick the in have of

the don't one I across towards think made And, Right. should side than other? business know about more headcount internally you've But the across around skewed it whether segments, is or reduction. both heavily the that announcements being we at Board,

heavily Well, of the company. skewed I equal the in would across Mobile entire towards is number of sort say, Connectivity. more of people terms But proportion, it's proportionately

and areas let clarify are yeah Brent there certain that. Although

proportionate. it's is answer The

marketing, We have look and costs finance, shared a allocated. you are resources, when of at those lot with particular in engineering, reporting, segment the

all So were impacted. departments

it's proportionate. So the answer short is answer, yes, the pretty

a after problematic years? other tends the words, in the TAVNAV non-major other number it Are programs lumpy mainline have Great, obviously, to of across broadly programs, to be any portfolio we've the be been reduction efforts make product different may over elephant any and it technology of using to that to cost plans seen look shooting try or ways years. there as over of try more that migrating line, pic acceptable nature the it at instead to to

And now a crossover going and not be of that out is our the in but in point not the the future gyros. but chip separate our into from we're photonic focus It's now. TACNAV integrated on right might right product technology future question the there the existing there

margin relying And it's happens get and not to it problematic -- relying Yeah, all it, good operate we forward you're if because we'll is going my it. when we on on and on going is it's we're it it. that which it's just if upside, if great, only and view take get we're

or partnering contractor through How that the maneuvering sales about political prime of with directly a tact drive different to more ability has management? into programs a program

We're as of is. clients it already a number with aligned

I'm to So short-term. not there's in be sure the further had alignment

Okay. if the heard impression think can you to service The you Program, have to could already under a say was is program that run, I explain, a someone they would you was way if antenna? VX that and antenna I I VX, Watch separate the KVH what buy the had enable dedicated

That the to we're be the our existing was and premise changing original now offering included products. in

originally you is now. what So we're what doing thought

is that that to base to need the that upgrades any would that enable is there's firmware there simply are to software done happen it? And -- enable install be to any or need there to hardware changes existing

intervention some piece the so or VM terminals able remote which into dedicated new flow the cost. really server terminals. existing that The Yeah, The additional Cloud a with high incorporated get be run on software. server the really current to going Connect, within runs fine without migrated the be that's the pieces, software existing product the with of two the as will our wise, in use channel speed perfectly on terminal That time we're the expert will hardware data hardware remote the additional was hardware. structure the running which will is transport it and the products to can the the IoT over call itself at the existing right function now

the it's and a and on built LAN antenna operational using ship. concept think, a dedicated was the Understand dedicated around I original

requirement? and a to major sort ship’s from protected separate network out would traffic was that have it was want So that of not companies and that it turned

basically feedback that's we've got market. the that Yeah, the from

that designed security that. up with we've much so I feel that satisfy we I will can doing any products got come think a Yeah, and into security concerns these now solution with comfortable

the Great. OPEX reductions. spending going sorry, And given should XXXX? into final How headcount CAPEX, about think of question, some just we

OPEX?

more overall I the I spending to are of cost on overall am side? but product, they side, continues the current on they of OPEX. mean, OPEX trajectory, cost focused going are reductions, service Yeah, primarily benefit R&D assuming on its or

it's as is R&D. It categories, in in OPEX all as well not SG&A and

you. Got

Okay, guys. great. Thanks,

Thanks, Chris.

Ryan next our from with take will Needham. Koontz We question

the Hi, good Thanks for morning. question.

Sounds on you're to And you the migrate well over, some Could in like them of on these not I were also there of any your of able ARPU -- were on is contracts? up terms a contracts active of set types comment assume reasonably changes lot at there, AgilePlans. that duration? you comment didn't all customers they haven’t had up

The fact and you acceptable And of the cancel the time. was part sell have. the let of well subscription is begin equipment contracts AgilePlans market. it first have we product with what someone we ship to it's It's we that back that don't you risk something the your made and or could of matter laid vessel for us Yeah, deinstall It out. all, actually, can that anticipated. month-to-month concept to your a and off, a service of been in it's if at the is more can then any it's

on really, to in other particular ARPU So it and to on focused in than HTS an we changed network. and legacy the our comparison we're had that network, our nothing in there's we're increase Agile as increasing continuing on relates Arclight pathway have ARPU, it's

Got it. you. Thank

was? question second your And

was question about Second [Multiple Speakers].

so not we're as the strategy, As through going numbers. exact the far

-- his Chris We numbers, a about more right. anticipated them Many and already I we represented And just back. we've VX leisure subs, about of of they what that of XXX,XXX centimeter suspended of overly end were VX number, of getting approximately revenue, back an us paying in Roger third which and And but were As told service. they half are not talked gotten and them, that. it's were stranded material case of year, where the typically them in many anything. the weren't customers, lower many used XX has at of ARPU’s terminal. had a a our with customer they of suspended were The the

myself many I So to migrating don't over supply as them, preserve and really can. great say up we ArcLight to and your revenue were it try not We're line stragglers you job, chain the and base, three so did an it. on customer focus left the to the And focus, airtime that shouldn't the at as we mind. a still it's really, over if we follow relates quick it as continuing end. just Got years, their do get last on had if

kind this of semiconductors the and can terms characterize of into freight or still shipping of impacting kind running there in issues is across what Just you board the Thanks. of sorts things?

It's everything of I the a issue. are bit mean, but yes. biggest conductors

were from we are undergoing right stay We're to components, involvement minor active we're the with cases, flexible taking to that as we procurement and redesigns in incorporate available. can substitute when engineering as now. side some chips evaluating trying Yeah,

Right.

[Multiple hardware Okay. part the well. some Speakers] in as procurement and of

Got it. Thanks much. so

Ryan you, Thank

there questions are appears call Kuebel the no time. It further you. at turn this back to Mr. I'll

Oh, you, operator. thank

our call everyone are appreciate joining think Obviously, the morning. this I I press there. out releases

of tomorrow. call. the to a obviously and and XX-K you mentioned, the creating There's I look we moving expect we lot forward I shareholder detail file value can a As that discontinue here. of lot in think ahead to Operator

for your you Thank concludes today's participation. call. This

You may now disconnect.