VREX Varex Imaging

Howard Goldman Director of Investor Relations
Sunny Sanyal President & Chief Executive Officer
Clarence Verhoef Chief Financial Officer
Larry Solow CJS Securities
Anthony Petrone Jefferies
Jim Sidoti Sidoti & Company
Call transcript
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Greetings, and welcome to Varex Imaging Corporation Third Quarter Fiscal Year 2019 Earnings 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 Howard Goldman, Director of Investor Relations. Mr. you, Thank Goldman.

begin. You may

Howard Goldman

otherwise CEO; and call welcome XXXX. Corporation's afternoon, President Varex me To our simplify to the third conference and references fiscal versus XXXX discussion, stated. Quarterly quarter our quarter of for quarters. Sanyal, year XXXX to are the earnings are unless Clarence year unless our are quarter Verhoef, of today for fiscal the CFO. Good Sunny Imaging and of With fiscal fiscal year otherwise comparisons the stated, all third quarter third

to discuss posted call, we with, financial GAAP non-GAAP today's on substitute adjusted adjusted is We On our the These in they reconciliation measure measure measures are not will for press our most accordance certain in directly a release, financial measures. which financial each provided presented comparable measures. website. earnings GAAP a are of nor financial

provided This GAAP and the of Guidance items. share compilation the diluted per for adjusted of is or for meaningful items unable is of share, due forward-looking diluted timing an earnings uncertainty net amount measure accurate reconciling only. the to earnings our we and provide a financial guidance on net unusual basis to are to per adjusted

assumptions actual we could anticipated. those are advised future that predictions and differ forward-looking or on subject be events. based uncertainties will projections to to and cause These during Please that this statements, materially that expectations call, current about making risks be which are results statements from are

including in and discussion Factors the XX-K our actual Additional of information in SEC is statements materially on speaks revise in date in differ obligation discussion. or we to XA-Risk for information to from The of and forward-looking results XXXX. filings, anticipated cause filed contained our fiscal year Form fiscal no assume as could this reports report update that today's those annual our this quarterly XXXX, concerning factors Item

call over to I'll Sunny. turn And the now,

Sunny Sanyal

and everyone afternoon and Howard, welcome. Thank you, good

Quarterly X% Our business tube earnings the mammography in by increased revenues record comparable third had in double-digit along sales prior level growth CT to sales and revenues in quarter products. driven imaging solid gains and oncology operating year. with were the global

both in well completed from detectors. prior to approximately gains the underway. The $X quarter these direct the that quarter. year segments lower Industrial acquisition radiographic X% and increased conversion digital Offsetting our integration during as and revenues of sales million Revenues are activities Medical we were significantly contributed expected of

have the in products China few May remember Turning the that past very are our with now in to between impact products mitigate tariffs. effect news the third that experienced that of the on and tariffs affected shipped the of dynamic. cost occurred quarter prior situation from did trade are primarily any not the on that is U.S. by we the consistent and on impact tariffs watching The tariff of incremental increases China. The we The track. Please our was closely quarter and we're to tariffs days. our to remain plans

In China, this more markets. of customers on -- than we CT pace shipped OEM to Our shipments shipments number third remain our and ship of the global twice than year. gain during momentum OEM to business the our continued quarter across last units we to tube customers expanded year

our global tubes as customers during emerging demand for systems advanced from XX tubes for in saw tubes markets. for CT for CT to slight systems as that an demand prior also call, addition are China introducing OEM CT we who our systems increase in In we discussed well in more

full months the have shipped of security more our year. for led this was in tubes. X-ray than in growth nine we first airport tubes applications quarter a by we Third segment of sales In our year, Industrial ever increased sold

the ports quarter, shipping and the energy beyond quarter. and expand accelerator applications at quicker border capabilities product also checkpoints fast discussed mobile This with sites has enables scanning. use screening lightweight new last to began that This linear we and small switching potential footprint, dose the we of

current scan provide scan As and our can emphasis gas up per an to low-dose imaging detect ramp example, Recently, systems to results. team with developing tested pipelines mode imaging kilometers field oil technology up several also and with corrosion our with cab verticals capabilities solutions moving business, inspection to can be we're truck a trailer. the hour. scan space. on our recognized detector, nondestructive in In high-dose used to VMI to for industry instantly then promising XX optimized the in a portable mode to It train the

three we XD one third performance. launched detectors the has applications. This quarter, making detector industrial our new and industrial new cost-effective digital on also dental multiple medical IGZO are progress detectors applications. and in In technology We're and high which offer potential for

projects key positive feedback demonstrations. customer of based on early have number with We running a

stages business detector detector global China. in the tariff-related production to of Wuxi. radiographic continued down the Our up in setting radiographic we're of weighed this, of late in be loss sales counter To by detectors

to time in products much We provide from calendar by end strategy us business will delivering establishing and local-for-local that competitive local our commercial of radiographic customers the us these and relationships, to the allow our We China. of local over of at year. suppliers. which getting strategy products sourcing loss an example to believe involves will the as service this local with support as expect This launch is close possible recapture

array innovation center manufacturer leading As products director disruptive This you may will health counting provide Conversion, April, the fund advanced, this of patients. facility showcase in Varex photon located professionals innovative its we developer the that biotech end Last of and in and Munich insight application care recall triangle how X-ray month, at a Stockholm. linear imaging based detectors deeper Direct benefit into can in Germany. technology and acquired and

health sharper images detectors lower at ongoing the and assessments. from than care rates medical proof-of-concept encompass lab This dose specifically facility and will training industry as as be how conventional workshops counting specialists, discover well For to representatives will X-ray offer experts tours, detectors. able imaging photon research

of On close want to these operations we our work, hard business detector acquisition through business, forward. of in all thank will to efforts. period Completion and facilities I transition truly the side recently Santa going announced manufacturing provide we at and our plans our their appreciate activities for significant Clara, digital California. to manufacturing benefits employees these since your upcoming

call the let our me in talk over the to detail. CFO, that, financial greater With hand about Verhoef Clarence performance to

Clarence Verhoef

quarter and an in with good another period quarter. Thanks, our compared impacted tax Sunny, and to unusual restructuring was QX top the performance. was earnings the Operating by summary, expenses charges increase year-ago everyone. with hello, profit quarter line the in In prior in line

the let me of our math through quarterly restructuring Before I into go of walk activities. the the financials, you details

site imaging As of joint Clara, was from for you one synergies may venture we of dpiX. the from Last recall, completed of the potential business to transfer production to the our our fabrication PerkinElmer, December, glass the Santa acquisition consolidation. related our

Lake ago, customer facility will cease to the to in to expect few other A majority we mid complete transfer the our some It validation the announced with and operations operations weeks and the Salt time going of remaining by locations XXXX. get to Santa close transfer so City. Varex Clara completed, take we manufacturing

cost costs were elimination product Total dpiX of $XX million Santa per in various be the year. about will operations locations. The overhead cost these and Varex offset equipment for of the and by from support partially Clara personnel other additions

million reduction $XX We in ongoing should part the closed have cost competitive to the range of net annual be in million. the efforts benefit $XX that be detector will critical our once estimated the market. a facility is This of

quarter, million, the Clara million of In the restructuring was which we to $XX based. million recorded bringing of total restructuring less third than the related charges cash facility $X to Santa charges $X

million facility, We expect related approximately another incur based. will to which this closing $XX to be $XX cash million of to $X million

segment quarter also by for and the of by sales segment the security. third were higher partially were with radiographic increased Turning quarter detectors. demand to increased offset revenues tubes X%, sales lower up X-ray oncology CT, airport X%, driven revenues mostly Medical that products for Industrial of for mammography results.

XX% to variances. quarter, was the margin margin to The prior gross The due year. third XX% in was prior For compared the primarily gross compared higher manufacturing to in the was adjusted our XX% reduction XX%, year. margin

R&D and $XX comparable million quarter. were to expenses the prior year

– the conversion to R&D be With quarter XX% of in increased current the than of addition more to direct revenues.

costs and additional and Third periods to quarter, $XX the $X restructuring to approximately were million impairments similar with prior SG&A expenses quarter. in Both million related expenses quarter. year related each included

$X for year quarter Depreciation in of million restructuring prior the and quarter quarters, the the $X our for year to XXXX fiscal million quarter. quarter were operating down in both a costs million compared $X ago. totaled of the earnings same impact Including the from amortization third year third million in $XX

the the expense For adjusted to was were operating earnings third quarter, prior year-ago comparable which our third the quarter. year. $X similar was million, million, was Interest in quarter to $XX the which

million, benefit effective was Turning on change. a tax the we of costs. nondeductible the million to a having due expense nature ramp-up year, $X in this, accounting last approximately to in particularly XX%. XXXX increases before and local tax despite third jurisdictions This tax to we a payment tariffs loss certain In rate for tax. of of of both now operating due the expect tax a year the the we This seeing be fiscal where had we China, $X approximately quarter to for year, Based of tax. implementation approximately our earnings are had method losses of fiscal of

share, net compared costs, diluted the $X per $X.XX or Again, shares or we were net in restructuring million for $XX the year per recorded of earnings $X.XX in diluted $X.XX the impact XX.X share loss the million quarter quarter shares third million XX.X share the the including in the year diluted share prior in year of per prior Diluted of $X per outstanding were $X Adjusted million to quarter. $X.XX prior versus earnings diluted shares to compared the or quarter. million million or net quarter.

Day XX was million accounts the our $X quarter. were in which of $XXX days at capital, increased the million Inventory compared -- included by the sales million direct with during prior $X quarter days addition million, decreased Looking to XX the to working outstanding conversion. year third receivable $X in quarter.

and We ended million. $XX equivalents with quarter cash the third of cash

flow spent equipment. cash and had and quarter, of million approximately million we $XX $X plant operations from for the property For

acquisition Even with During to total debt million million to quarter, conversion. $XX only $XXX $XX increased we has direct our outstanding year-to-date complete the borrowed the this, of million.

not changing revenue XXXX. for outlook fiscal our are year We

the guidance provided was million. $XXX of previously the to we As revenues million a range reminder, $XXX in

revenues of margins that about expense SG&A R&D unusual revenues We that our to will XX% to be XX% around in will believe XX.X% and will of adjusted gross of range excluding be continue be the XX% items. expense

expect our of per will now approximately anticipated be to We be net in the share year-to-date range rate, effective Based results $X.XX now expect on an that we and higher XX%. earnings tax rate tax $X.XX. to adjusted diluted

We call will the now for your open questions. up


you. Thank

now We be question-and-answer will Instructions] session. conducting [Operator Thank a you.

question is Larry Solow from Securities. CJS with Our first

Larry Solow

to Clarence, me numbers, guidance, just than anything clarify the you actually Good operating the sounds the summarize but that? I higher changed? to thought were, rate It a afternoon. expenses on has than tax they like can so other bit little

Clarence Verhoef


me a little Let through it again go bit.

the terms expectations of same and margins are operating they actually in as for prior. expenses, So, gross

perspective. So, that from no changes

midpoint is change it the it of is $X.XX. such. took look impact And So, tax -- by when I the look how at down the I guidance, fundamental that I at as really around

Larry Solow


Clarence Verhoef

down is exactly guide changes. the by which tax point to tied The $X.XX,

Larry Solow

maybe of And $X.XX, some sort maybe of range QX or the the about can that you lower would for a to quarter? factors one pretty how it the pretty the for discuss drive that upper range of end to wide sort $X.XX of wide

Clarence Verhoef


the on of take and -- year of basis a we kind moment, kind what we our make the that's into unless we're not just guidance we an give set of that impact of known effect any at clarify maybe me and I Let for to beginning changes because the annual events. just going

that was acquired that So back ago we event the direct a known happened conversion. quarter

Larry Solow


Clarence Verhoef

range of the million top. guidance at the increased the bottom both $X the we the So by revenue and

And rate so is on other the know now about as tax we the impact tax -- the going change. that's change

the so other And only change. that's

guidance fundamentally, staying with we're the we So with. year the started that

Larry Solow

think But on any little quarter exit bit side margins on sort flat was on the or Did unusually Santa you a benefit of the from margin the Santa get a out -- Clara fabs a on this the I of little pushed How of about QX. little that bit sort down Okay. sequential bit timing? Clara on I know is of strong. dose gross from fab, that

Clarence Verhoef

Yeah. It's a good question.

a an starting time. there a So closure the because bit, when in that yeah, of by ago the a of had this that that was from let almost kind to point announced year expectation fab we we see be me through little would walk benefit

What is apparent facility kind of will the more that go away -- costs not we're much there closed. as closure. facility benefit full I going overhead don't that probably until that have of along mean, becoming we is happen some associated the as there's are fully until is to

there. So we is the be to I bit about still still of a it gone, think stranded kind -- such but I some that in that's had had mind of as little how have overhead that's planned my of all

that I particular, the do look when much not as R&D. impact I do in improvement R&D as line in would say. would liked, think see the at we I have So I

of the announcements association happened restructurings year is some restructurings And to a with due in of ago. that that

are so closure rate -- we fundamentally mean, think the because R&D fab. explains it of or of And And lower seeing we're on I the impact that a the I clarifies that.

Larry Solow


So sort XXXX is a -- is you which rounding of going like that that really that's of like given, that central to event? know sounds you savings begin exit, that ranges combined it, that you to $XX tweaked I most but could a be XXXX, or looks the little in Is completely two a of bit had or some million combination of a sort fiscal it slightly say? That you expect error. won't million some fair or all maybe don't the to is $XX that until to would

Clarence Verhoef


site the itself when the majority have closed, because realistically is to ramping lot that It's there, that from and think costs of we're is some associated and production of facility continues facility So we -- building production the down not right? the are that you happen one and the vast the transfer with another. I production. to of more it it's have that going a to

Larry Solow

to of or on have closes? bit it there Is there like double the the really little but have get So still production a -- the that you benefit what -- deal double you the you you is? expensing going transferred been side, counting won't that fully is But defects a right? fab on you that sort until that

Clarence Verhoef


reduction a of as by other and costs and a depicts, little costs labor was detail in we did go material with Santa I'll coming Clara costs the was of That direct and the So fundamentally from little reduction like in bit closure there. bit, we because the the math It the buy offset overhead have of depicts. here of fab new we material offset that the from well. basically had

on. reduced from remaining wash had but the till a reduced relatively a it's be we that So later to overhead anticipated be perspective, that not will

Larry Solow


Okay. And question just last that. on

going the end of to to year that Is it you're -- still XXXX. You -- right said at think timeline? going calendar exit in had X-K the I you was the

Clarence Verhoef


there's wording because nuances be time. stopping that some will the there -- a in so point around at we production And

do you We decommission not up the those of exit clean have will that things. some because kinds facility all equipment

So it'll be the fully XXXX calendar into till out facility. year the of

Larry Solow

is Okay. wash? it million And drag or on Bottom all, the lastly was $X basically was revenues. line a earnings just at -- you that then that a direct mentioned a

Clarence Verhoef

the a some quarter that R&D Yes just a were because incurring. bit it was they drag expenses had little of in they

I roughly breakeven that perception the our it's outlook year still a the think And transaction. so fiscal for for overall is

Larry Solow

was or Okay. was type model… X% that X% deal – But maybe that

Clarence Verhoef

range. that exactly kind it's in Yes, of it's

Larry Solow

right. very Thank much. All you Okay. Great.

Clarence Verhoef



you. Thank

from Our is Anthony next with Petrone Jefferies. question

Anthony Petrone

to conversion, at number? on million rate just total one were in $X the when on clarify of run closed? direct up close guess I time quarter, just take to the doing Is of just the it light. that the so is that the that And bit based acquisition Maybe actually seems they little timing Thanks. a contribution

Clarence Verhoef


The bills… assuming got if some second kinds other synergies things of add-on any question where you're part I'm your asking we there's additional of

Anthony Petrone

we No rolling I So Yes. still had right? you -- I in.. VMI, was were which VMI guess

Clarence Verhoef


Anthony Petrone

direct then And conversions.

those little the direct And run of combination specifically the was So million conversion rate. $X seemed quarter? the just bit based light for the acquisition in just a the on then total contribution it what

just issue -- there? So that something or else just was a on timing going

Clarence Verhoef


just of closed remember it let's that all, First of the at April. end

only we million million $X comfortable with it So had of of kind was of We're had said there. $X the to of the five we that two for for And it. year. -- still just months the the months a revenue the for start-up

VMI I business The of industrial basically into included fully we've When is talk excuse so our as -- integrated those overall rolled kind VMI or numbers. detector about is not me. in overall business already and our

Anthony Petrone

and No. That's China to on helpful. gears OEM order business, Maybe specifically book. shift the two just the

So OEMs when the China based headlines recent the there many whether I on you last how number of incremental or sort be even book? trade that you on in the anything orders on an us China. the given it at company can mean, most week so as is has size give fluctuations update relates look tariffs with just wars? over it'd currency to and And or of the order

Sunny Sanyal

Anthony is Sunny. Hey, this

the things no did how May announcements as R&D OEMS are we on release the tubes as just make work. still progressing their And although continuing business had the seen far tubes They're with are May China. no with continuing things change. the us situation and concerned progress. any are temperature In work since way and in is way. really general anticipated to going impact in for the There's in of The terms frankly not -- just we've tariff us there's

see process. planning and two their we've people regulatory going into had their or R&D going into. one steps in they're have We -- some We move

forward. moving that's So

our shipments and We've double on. And that we're anticipating these on we for track that. the said continued to customers of momentum were volume have tubes clearly

add than far didn't to what war to hasn't was have already much trade say So other factored anything while I so a back. in impacted us, that, the beyond

four most for isn't the list The specific that $XXX that look went if in aren't recent that impact list. The products effect significant discussions, at of list you into our the us. billion,

that the impact actions, what But the frankly, done come? more May impact its impact was OEMs, think and the the announcement the But we to points. And Chinese retaliatory expect of didn't of release not are don't I is this devaluation at currency part far, the didn't That's there wait time, are with know. matter devaluation China of a see current still few percentage I since don't is known. much middle the them all or us. same a that it us. This in will – will who so

Clarence Verhoef

let thing around add other Anthony, me Hey, that. one

I percentage year think you As is it's that, It's look our do at going was a probably point a And China of kind interesting when on. we've shift XX%. big is business, a right lower got as of – last it now.

radiographic amount Chinese the significantly being by we CT of but increase lower in have a significant are to So offset customers, detectors going there. it's sold tubes that

it's radiographic in forward. there okay up some look going ramp as production say and detectors of So we've Wuxi, I we when got mean, forward a – we opportunity

time, key that back is, continuing And growth same at I points the of as to goes time China. CT think then, that's tubes leverage on. the that in we is that kind of a have chance around get the

Anthony Petrone

side, difficult the little on – to over a the the certainly it year. shift last comp performance light was to considering – the was expectation, just but just Varex industrial Maybe

placements airport had and was to then end testing you that the rate for quarter back check last checkpoints go instance baggage non-destructive comments earlier has you well. CT doing doing quarter, last linear into here the the and on for tubes If security some accelerated that well security been of and year this today

for as there look of going comp? update just anything check and airport processes to an was different in Thanks. on you just baggage? the is on read tough security specifically it anyone tender into or forward, various in the So, that a are give areas, can you And performance Industrial, those

Sunny Sanyal


three-year me Chinese the are in about way on me previous you Anthony, a take question, that, contracts all said let that to forward. doing had contract XX we with take are form a that. By customers those the It's at Anthony, customers? So of start out a X stayed of way let As how a purchase we with – moving agreements your asked – us. – that still some and and have those

So, backlog million so. $XXX or

Anthony Petrone


Sunny Sanyal

– terms generally we've is of more tubes linear the In security business lumpier. as cargo linear accelerators. mentioned the that the there's Industrial It's accelerators parts, for – cargo that versus so business, two

is So, the of business one and from we're battling accelerator. – the tubes tubes flattish year, security things, of the the the The momentum. continues linear mean, visibility a have really for – the two But very say can comp continued strong for the activity, business, activity is cargo tender last fairly that – broad-based. the strong OEMs to batteries be side good I but all demand I we our strong and is seeing to don't demand strong. we're is

Anthony Petrone

right. get again. All back Thanks, queue. I'll


you. Thank

Our next is & Company. with Jim Sidoti Sidoti from question

Jim Sidoti

you Good me? afternoon. hear Can

Sunny Sanyal

Yes, Jim.

Clarence Verhoef

Yes, you, I Jim. got

Jim Sidoti


talk you a about us little industrial some more were? quarter. on a new give Can bit little color what released the they products in You

Sunny Sanyal

accelerator. call, products. had accelerator was had were a releasing. that actually In new two the quarter -- new first the And that. shipments we there last One talked we're a quarterly linear we -- groups about this Yes, model that we last we of of linear announced

you look a up traditional at But excited. of it if pieces. rolled accelerator, be very of massive, is What out small lot heavy, and parts lots It'd we this very linear space. and is we're footprint. very takes product pretty -- swell a So a

of tall footprint very space, tall, six much lighter. feet occupies stands little type about You're four talking and feet four by about feet up

much very smaller it So a result, a vehicle. -- as can into go a

truck and go it on. trailer Typically, You be -- thing are to inspection security into scanning -- don't more for be fashioned excited here, on the tractor it's a mobile. with it massive that's can if can so setup on in -- of put we're much a cargo about. applications you this big need small need applications a fixed a It create mobile what can put into can But back that you can then small truck, the ground. it and --

borders. crossings the ports applications more venues or at OEMs you like no put -- garage on cetera. them to about it's a you up on to our a anywhere the can or So maybe And drive truck road bridge looking would at and any -- are can front at wherever that in of parking before be a ball games et

these up So pretty LINAC. pretty -- a are it's in and flexible dynamic

So about it. we're excited

digital others introduction then of order we keep and And new We've stay on-buy products were digital new the group in continuous just -- of to of detectors. pressure were detectors. ahead competitors models -- of the a everyone

some then for detectors detector also we general oil and NDT, and NDT gas ruggedized high-resolution applications. So launched a a for for

and current We're our mean, focus verticals on And now, small-large verticals, we different is of the and in we're and I but -- -- oil refineries. products we're focus different as for launching oil pipelines said fields pipelines the the a and focusing few right application gas. industrial, on scanning

And those so were the products. that --

Jim Sidoti

a effect news big whole process with it can is takes dealing the detail just the the deal something and negotiations? works. go like on regard don't news XX and they more have sign to how to this Okay. where I downs this, or months are a to six short-term really tariffs, a sensitive ups mean, And OEMs then the to recent and China little into with you the about

Sunny Sanyal


through particularly regulatory saying because start me any very -- OEM in cumbersome medical by China -- to let has go change, react our quickly cumbersome customers to pretty there don't space process. they've got the So even

them U.S. much as get as through system cumbersome to much it cases can takes fact, a some months take the it regulatory they than qualified process. the XX in more In and it's -- -- or CT

not So so they react more tubes. for and do quickly

Tubes same say system -- time, lower is are in tariff it's small their ingrained amount X%. at design. the I'd far not the more, for a tubes And

impact And is the news, the our at it where easier. the see to day-to-day a radiographic lot reacting have sensitive detectors Where to low-end all. we're those. So not in seeing space integration some been not they at all we customers is

radiographic these So people swap out -- clients detectors. low-end our can

the up And Where year which this responded we the cases situation, trade stocked year sorry, into entered was it tariffs, a ago in in of in agreements with our almost now. did, beginning We whole commercial some some is of -- some war cases them. to customers beginning cases and tariff they XX-XX. I'm

then, as escalation And war. went on. time and further And there's trade

I think there start nervous, about to detectors. well of sources getting available customers other are

we decided absorbing So to tariffs. giving the from down all just full-blown then back

on out it that's to. of call And a low-end, And is not we overall there why money those Which from detector -- decided back we pulled business, digital very part but we, a business. was, radiographic basically detectors. pull our the we lose value small our that don't want

with easy And to chain, made-in-China this launch margins. we'll manufacturing. year, expect to detectors, going there we this building back the is, get in with China, And back double we're end and these down particular in with local But -- on back with at the space into, products by is China. that to -- this supply customers these of for win since local get

Jim Sidoti

inorganic one right the break plate think the from All to on with enough in to a now And you your me, you do continue opportunities? from or months. have for couple last done still and Do XX now? regards look that take a M&A, of right, past M&A, then, this you'll you've deals year, you

Sunny Sanyal


XX that cash on next the our pipeline. to our months. have That And we XX, with said an in pay that, over like active pay we'd down free the down So, is, debt. I the to focus think, conversation said debt we've

some or on work give financials for tuck-ins. little our That And said we'll at little tuck-ins. we bit. We debt the this bit financing breather, to the But of side. point, on that keep out, want small an a a do small may eye

Jim Sidoti

Okay, thank you.


[Operator Instructions] closing comments. are to for Mr. Okay. no to floor like I At this the turn would time, back Goldman there further questions.

Howard Goldman

of quarter August from conference fiscal this in call your for Thank earnings conference today XXXX. available be our questions you through year replay participating will A call third XXth. the quarterly of and for

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