Good day, ladies and gentlemen, and welcome to the Axcelis Technologies call to discuss the company's results for the second quarter 2025. My name is Sean Ammer, and I will be your coordinator for today. Please be advised that today's conference is being recorded. I would now like to turn the presentation over to your host for today's call, David Ryzhik, Senior Vice President of Investor Relations and Corporate Strategy. Please proceed.

Thank you, operator. This is David Ryzhik, Senior Vice President of Investor Relations and Corporate Strategy. And with me today is Russell Low, President and CEO; and Jamie Coogan, Executive Vice President and CFO. If you have not seen a copy of our press release issued earlier today, it is available on our website. In addition, we have prepared slides accompanying today's call, and you can find those on our website as well. Playback service will also be available on our website as described in our press release. Please note that comments made today about our expectations for future revenues, profits and other results are forward-looking statements under the SEC's safe harbor provision. These forward-looking statements are based on management's current expectations and are subject to the risks inherent in our business. These risks are described in detail in our Form 10-K annual report and other SEC filings, which we urge you to review. Our actual results may differ materially from our current expectations. We do not assume any obligation to update these forward-looking statements. During this call, we will be discussing various non-GAAP financial measures. Please refer to our press release and accompanying materials for information regarding our non-GAAP financial results and a reconciliation to our GAAP measures. Now I'll turn the call over to President and CEO, Russell Low.

Good morning and thank you for joining us for our second quarter 2025 earnings call. Beginning on Slide 4, we delivered solid results in the second quarter with revenue of $195 million and non-GAAP earnings per diluted share of $1.13, both exceeding our outlook. We generated slightly better-than-expected Systems and CS&I revenue, delivered strong gross margins while maintaining disciplined cost control. Bookings in the second quarter were $96 million, down slightly on a sequential basis and reflecting a book-to-bill of 0.8x. While customers continue to digest capacity, we are encouraged that first half bookings reflect a slight improvement compared to the second half of 2024. Consistent with our prior commentary, bookings can fluctuate from quarter-to-quarter. With that, let me add some additional color on the trends we are seeing by market category. Turning to Slide 5. In the quarter, sales to mature node applications comprised almost the entirety of our system shipments, in particular, power and general mature. Now on Slide 6, let me review our trends by end market. Within our power business, shipments of silicon carbide applications were relatively flat on a quarter-over-quarter basis. While the overall silicon carbide industry continues to digest the capacity that has been put in place over the past 2 years, we see pockets of investment across a number of different customers. In China, we see continued firm demand for both 150-millimeter and 200-millimeter applications. Customers are investing to meet growing demand for silicon carbide in the fast-growing China EV industry as well as other applications. Outside of China, customers are using this slower period to increase R&D engagement and invest in technology transitions. In the quarter, we shipped a Purion XE High Energy tool to a customer that is investing in 200-millimeter super junction technology, and we continue to be in active discussions and engagements with other customers on their trench and super junction technology road maps. As we've noted in the past, Axcelis is the market and technology leader in high-energy ion implantation, which is required for deeper and more precise implants and a critical enabling technology for customers transitioning to these next-generation architectures. In addition to the need for high energy implants, we're excited about the long-term demand drivers for silicon carbide, which is underpinned by declining device prices along with the world's need for greater energy efficiency. This creates the following tailwinds for silicon carbide demand. First, in the EV industry, we anticipate the penetration rates into EVs to continue to grow. And this includes not just battery electric vehicles, but hybrid vehicles as well, where we are already seeing signs of adoption. Second, we anticipate the silicon carbide content per vehicle to grow as well. Third, we see growing requirements for higher voltage silicon carbide applications such as faster charge times, driving investment in development of trench and super junction designs. And as I noted, we are a technology enabler with our market-leading high-energy portfolio. Fourth, while overall demand for EVs in the U.S. has decelerated on a global basis, EV sales continue to grow at a robust pace with IEA forecasting 25% year-over-year growth in 2025. As a result, with the penetration rate of EVs as a percentage of overall auto sales continuing to grow, the combination of all these factors creates a multiplier effect on silicon carbide demand, and that's just within the EV industry. Finally, with device prices declining, we also expect growing adoption outside of the auto industry, including renewable energy, industrial motor drives, railway applications, data center power supplies and many others. In fact, one important proof point of this is the recent public announcements from leading power device makers over the past several months, which signals increased attention and collaboration on delivering higher voltage power solutions for next-generation AI data centers. We believe silicon carbide will play a key role here. We also believe the combination of these volume, content and technology drivers translates into attractive long-term market opportunity for Axcelis. From a near-term perspective, as we think about this business over the next few quarters, we see continued pockets of demand, and we expect a modest improvement in revenue in the second half of 2025. Starting with the second quarter results, we will now refer to the remainder of the power market segment as other power compared to previously referring to this as silicon IGBT. While IGBTs have made up the lion's share of this category, we believe other power is more reflective of other potential power applications such as silicon BCDs, silicon power MOSFETs and GaN power devices. Turning to the results in the second quarter, ship system revenue from our other power applications grew sequentially, primarily due to growth in China across multiple customers. In our general mature segment, revenue declined slightly on a sequential basis as customers continue to manage their capacity investments given the current demand environment in auto, industrial and consumer electronics. We continue to see pockets of improved tool utilization, which is an encouraging sign. However, we would need to see this continued coupled with improved end demand in order for this to translate into resumption of capacity investments. Market dynamics aside, we are working closely with customers on their capacity and technology road maps. Case in point, we secured a meaningful order for high energy and high current tools from a customer in China that is investing in 28-nanometer applications. This is a nice reference win for us and can open up additional opportunities down the road. Turning to Slide 7. In advanced logic, we continue to engage closely with customers on their evaluation units, and we are pleased to say that in the second quarter, we received a follow-on order from one of these customers. This is consistent with our strategy of penetrating this opportunity by working collaboratively with customers through their evaluation units during their R&D process. Advanced logic remains an underpenetrated market for Axcelis, and we are actively targeting next-generation implant applications at the M+1, M+2 and M+3 nodes. This includes important applications for implant such as the backside power distribution network integration, where we believe we have potential solutions based on improved device performance and yield and the ability for customers to control the energy purity of implanted ions. Moving to memory, shipped system revenue declined on a sequential basis, consistent with commentary on our prior call that memory spending would remain muted for the balance of the year. Compared to 2024, which saw a sharp reduction in volume, we continue to expect modest growth in this end market on a year-over-year basis. Despite the pause on implant investments across DRAM and NAND, we are executing on our strategy of penetrating new and existing opportunities with customers on their next-generation robots and fab plans. To that end, we secured an order for a high current system for a DRAM application with the potential for additional follow-on orders based on this customer's investment plans. In NAND, customers remain focused on scaling to higher layer counts, which requires deposition and etch chamber-based upgrades and not incremental ion implantation capacity. As a result, we expect demand for NAND applications to remain muted over the balance of the year. On Slide 8, let me wrap up my thoughts prior to handing the call over to Jamie. Despite the macroeconomic uncertainty and widely known cyclical digestion we are seeing in 2025, we are executing very well with what we can control. This includes the following: first, a relentless focus on innovation and deep engagement with current and new customers across their technology road maps. In fact, during these quieter times, customers increased their focus on R&D to drive better cost performance and yields. And simply put, we see ourselves as an extension of the R&D teams. Second, our engagement with customers does not end at the system level, but also CS&I, our customer solutions and innovations business is foundational to the customer experience. This includes spares and consumables, service upgrades and used tools. Through the first half of 2025, our CS&I revenue made up approximately 30% of total revenue and is up slightly on a year-over-year basis despite lower systems volumes during this period. And this is a reflection of the strength of our installed base, which provides a resilient revenue stream through the cycles. Moreover, given that our CS&I gross margins are materially higher than the corporate average, this business makes up a meaningful percentage of our profitability, and I'm pleased with our execution in driving more service contracts and high-value upgrades for customers that are seeking our latest generation technology within their existing footprint. And third, we are prudently managing our cost structure while ensuring we have the resources necessary to invest in growth. This is reflected in our first half 2025 adjusted EBITDA margin of approximately 20%. Taken together, these actions are allowing us to deliver strong profitability despite a cyclically soft demand environment while positioning us to capture the long-term growth opportunities that we believe lie ahead. With that, let me turn the call over to Jamie for a closer look at our results and outlook.

Thank you, Russell, and good morning, everyone. I'll start with some additional details on our second quarter before turning to our outlook for Q3. Starting on Slide 9. Second quarter revenue was $195 million, with system revenue at $134 million and CS&I revenue at $61 million, both slightly above our expectations for the quarter. From a geographic perspective, consistent with our commentary on our prior earnings call, China increased sequentially to 65% of total shipped system sales, up from 37% in the prior quarter. We continue to anticipate our customers in China to digest the robust investments they've made into mature node capacity over the past few years. As a result, we anticipate second half revenue in China to be relatively similar to the first half. Turning to other regions. We saw shipped system sales to the U.S. at 19%, while Korea declined to 8%, consistent with our expectation of muted demand from memory for the balance of the year following the first quarter. In addition, we've added the geographic split on total revenue, reflecting both systems and CS&I. Using this measure, revenue from China totaled 55%, U.S. was 18%, and Korea was 13%. Starting in the third quarter, we will transition to reporting the geographic split of total revenue only, which is consistent with our peers and a better reflection of the overall company exposure we have. Please see the appendix of our earnings slide presentation for a quarterly breakdown of geographic revenue mix starting in the first quarter of 2024. As Russell mentioned, bookings declined slightly on a sequential basis to $96 million, and we exited the second quarter with a backlog of $582 million. Turning to Slide 10. Now let me share some additional details on our GAAP and non-GAAP results. We delivered strong GAAP gross margins of 44.9% in the quarter, exceeding our outlook of 41.7%. Our non-GAAP gross margins were 45.2% compared to our outlook of 42%. Our better-than-expected margins were primarily due to higher CS&I revenue, another quarter of better-than-expected warranty and installation costs and favorable systems mix. In addition, our gross margins are benefiting from the cost savings and efficiencies actions we've taken over the past years, and we will continue to explore ways to optimize our cost structure. GAAP operating expenses totaled $58.4 million, and on a non-GAAP basis, operating expenses were $53.6 million, relatively in line with our outlook of $54 million. As a result, GAAP operating profit was $29 million, reflecting a 14.9% operating margin. Our non-GAAP operating margin was 17.7%, leading to an adjusted EBITDA in the second quarter of $38.9 million, reflecting a 20% margin. We generated approximately $6 million in other income with the sequential increase primarily due to foreign currency gains. Our tax rate was approximately 10% in the second quarter on a GAAP basis and approximately 11% on a non-GAAP basis. The lower-than-expected tax rate was primarily attributable to our foreign-derived intangible income deduction and federal research and development credits. For the balance of the year, we estimate our non-GAAP tax rate to be approximately 15%. Our weighted average diluted share count in the quarter was 31.9 million shares, and this all translates into GAAP diluted earnings per share of $0.98, which exceeded our outlook of $0.57. Non-GAAP diluted earnings per share was $1.13, exceeding our outlook of $0.73. The higher-than-expected EPS was primarily due to the better-than-expected revenue and gross margin. In addition, our non-GAAP EPS benefited by about $0.05 due to a better-than-expected tax rate. Moving to our cash flow and balance sheet data shown on Slide 11. We generated $38 million of free cash flow in the second quarter as a result of better-than-expected profitability as well as improved days sales outstanding. Turning to share repurchases. In the second quarter, we repurchased approximately $45 million in shares. At the end of the second quarter, we had $168 million remaining in share repurchase authorization. We exited the quarter with a strong balance sheet, consisting of $581 million of cash, cash equivalents, and marketable securities on hand which includes $31 million of long-term securities that we've added in the second quarter. Before I turn to our outlook for the third quarter, I'll share some of our current thoughts on tariffs. We continue to monitor the fluid tariff environment, and we believe we are well positioned to respond to any changes through risk mitigation strategies and by leveraging our global supply chain and manufacturing footprint. The outlook I will provide today includes a modest estimated impact from tariffs. With that, let me discuss our third quarter outlook on Slide 12. All measures will be non-GAAP with the exception of revenue. We expect revenue in the third quarter of approximately $200 million. Additionally, our initial view of fourth quarter points to relatively similar levels compared to the third quarter. We expect non-GAAP gross margins of approximately 43%. The sequential decline is primarily due to our mix of systems revenue for the period as well as a slightly higher volume of systems revenue relative to CS&I. Our current view of the fourth quarter gross margins also points to similar levels with the third quarter. We expect non-GAAP operating expenses of approximately $53 million in the third quarter and expect this to increase slightly on a sequential basis in the fourth quarter. Adjusted EBITDA in the third quarter is expected to be approximately $39 million. And finally, we estimate non-GAAP diluted earnings per share in the third quarter of approximately $1. In summary, and to echo Russell's earlier commentary, despite the cyclical softness in our markets, we are pleased with our ability to generate robust profitability, return capital to shareholders and maintain a strong balance sheet, which positions us to deliver long-term value creation for our shareholders.

Thank you, Jamie. We believe we are well positioned to navigate the current cyclical downturn. Our disciplined focus on cost controls is delivering tangible benefits even in a lower volume environment. At the same time, our strong balance sheet has enabled us to opportunistically repurchase shares and return cash to our shareholders. As we look ahead, we are confident we will emerge from this period even stronger, supported by a clear technology road map and differentiated market position. I want to thank our customers, employees, shareholders, and partners for their continued support and trust in Axcelis. With that, operator, we are ready to take your questions.

And our first question comes from Christian Schwab with Craig-Hallum Capital.

Congrats on the great quarter and the great results. As we look to the memory market in 2026, do you have any initial indications of wafer start growth there yet?

Christian, it's Russell. We aren’t forecasting for 2026 just yet. However, if we focus on DRAM initially, we can see that HBM has been very active, which has reduced DRAM capacity. Many suppliers are facing constraints. As you know, the implant intensity doesn't vary much from one node to the next. Therefore, an increase in wafer starts will be necessary to begin shipping more implanters. While it may take a couple of years for new capacity to emerge, I believe we will start seeing some of this capacity come online by the end of 2025 or early 2026. We’re not making any predictions at this point, but we are optimistic about it.

Great. And then my second question has to do with the general mature marketplace. Kind of information by the chip manufacturers is kind of scattered as far as outlook and optimism in auto and industrial. But from your perspective, do you see that market improving in the second half of '25? Or do you think that's really a calendar 2026 event?

Yes. We believe that our revenue for the second half of '25 will be slightly higher than the first half of '25, but this increase will not stem from the general mature market. We are actually noticing a small uptick, driven primarily by power. The general mature market appears to be in a digestion phase at this point.

Congrats on the great results.

And our next question comes from Craig Ellis with B. Riley Securities.

Congratulations on very strong execution through the income statement and the strong guide. I wanted to follow up to start, Russell, with further inquiry into one of the points you made around silicon carbide customers using the current period for R&D and technology transition. So the question is this, to me, that sounds like customers are acquiring tools for use in R&D lines versus in volume production, which would imply that when they're ready for volume production, there might be a further inflection in demand. Is that the right interpretation and implication from what you were saying there?

Craig, so actually, so just to kind of recap, we think the silicon carbide is going to be slightly stronger in the second half of '25 than the first half. What we begin to see is a bit more of a bifurcation. Within China, obviously, they're looking to get the processes laid down, get the yield up at the cost down, and they're focusing a lot on 6-inch planar. Some are looking at 200-millimeter planar. Outside of China, you're seeing customers drive very quickly to 200 and particularly to advanced devices as well. So they're looking to go from planar to trench and then we've also got customers working on super junction as well. So you've seen this bifurcation in technology and those buys have been specifically focused on these new technologies. So as we've mentioned before, to make trench and super junction devices, you need high-energy implanters. And as the market leader for high energy, this is playing beautifully to our sweet spot, and we're working very close with our customers to develop their processes utilizing these tools.

Great. Really helpful. And then, Jamie, a follow-up on your comments around gross margin and drivers to the robust levels in the quarter. So I think you mentioned CS&I mix, warranty performance, mix and trailing multiyear cost reduction. The question is this, can you talk a little bit more about where you see structural gains in some of those COGS drivers, whether it's warranty or just the ability to perpetuate ongoing cost gains because as systems eventually comes back, we'll lose at least one of the favorable drivers, and I want to better understand how some of the others could help perpetuate the strong performance.

Thank you, Craig. That's a good question regarding margins. The systems mix, both within our systems and between systems and CS&I, will remain the main factor influencing our gross margin during this reporting period. We are implementing structural changes, particularly focusing on areas we categorize as below standard cost items, which include warranty installation and related expenses. We're also working on maximizing our global operations, which we have discussed and anticipate will yield incremental benefits over time. In terms of our long-term margin trajectory and projections, we will continue to push to reduce costs as much as possible. This is a multiyear effort for us to achieve significant and structural change. However, what we've accomplished in 2024, which you are starting to see in 2025, is that even with lower volumes, we have managed to achieve higher margins in a substantial manner. Looking ahead to the latter half of the year, we expect a slight decline in margins compared to our expectations, primarily due to mix. While we still benefit from favorable factors below the line, the mix will apply some pressure on margins in the latter half of 2025.

And our next question comes from Jed Dorsheimer with William Blair.

I want to reiterate some previous comments. Russell, I'm curious if I can revisit an earlier question to get more clarity. Understanding the shift towards advanced structures like trench, which requires more capital for high energy, is important. My question is regarding the differences between China and the rest of the world. Are you suggesting that the mix you're selling into China is skewed toward high current and medium current because of the high energy used in planar and trench? Or is it that you are dealing with high energy in both cases, but you see a distinction between planar and the more capital-intensive trench used in the rest of the world? I have a follow-up question as well.

To perform standard planar processes, high energy is not necessary. You can work with high current and medium current as your required tool sets. However, when you move into higher energy applications, such as trench and super junction structures, high energy becomes essential. The demand for high energy increases because implant profiles cannot diffuse in silicon carbide; instead, they must be overlaid with specific training. Additionally, we are noticing that the energy levels are consistently rising, which means we are utilizing our high energy capabilities more extensively. For trench and super junction applications, you will be using a combination of medium current and high energy, along with some high current. In contrast, for planar applications, high energy is not required.

I appreciate your response. That helps a lot. As a follow-up, and perhaps somewhat related, your position in high energy with a linear particle accelerator clearly sets you apart from your competitor. I'm interested in your R&D efforts. Beyond traditional power and silicon carbide, are you encountering any applications that require high energy in a manner similar to silicon carbide? As you look towards future markets, what trends are you observing?

High energy is utilized in nearly every application except for advanced logic. In NAND and DRAM, especially in image sensors, they have particularly deep devices due to the IQE, which involves many implants. We're also observing the use of more advanced avalanche devices that require very high energy. Currently, silicon carbide is a significant driver, and when I refer to high energy, I mean various levels that can reach up to 15 mega electron volts. We certainly cover the full range, and the density of high-energy implants in silicon carbide is definitely a key factor.

Our next question comes from Jack Egan with Charter Equity Research.

So I was curious if tariff pull-ins or anything of the like might be contributing to some of the positive momentum in CS&I because last quarter, you mentioned that spare parts saw some upside. And logically, depending on the sector or the end market, I guess, if these customers had underutilized capacity, then I would imagine to get ahead of tariffs, they might purchase some spares rather than new systems. So I guess maybe just more broadly, what were some of the drivers behind the strong performance in CS&I?

Yes. No, it's a good question, Jack. And obviously, Q2 coming into Q2 is a wild time, right, with the announcement of the tariffs, the regimes and all the sort of uncertainty that created. I would say nothing material driven by what we saw from a pull-in perspective. Really, the driver for us in the second quarter for our CS&I had to do with upgrades and upgrade-related activity. We've talked about this on our road map to sort of new capacity additions is you're going to see increased utilization. You're going to see our customers, finding ways to squeak out incremental efficiencies out of their current tool sets, right? That leads to higher upgrade activity, higher spares, consumables and others. And then they'll go through and make those capacity additions over time. So the trend is following sort of the playbook that we've seen in the past. But as Russell noted in the commentary, we have not seen the inflection point yet that's going to translate that into necessarily increased bookings just yet. We still think we're sort of bouncing along the bottom. But the fact that upgrades came in a little bit stronger in Q2 helped both our CS&I margin and the overall margin for the period.

And Jack, it's kind of like piggyback on the back of that. So we have been investing in upgrades. It's a great opportunity because, one, we have a large installed base of legacy tools, but we also have a large installed base of our Purion platform as well. So it's a relatively captive market. And we've made a point of managing customers' product life cycles. So this has been a really good business for us.

Great. Okay. That's helpful. And then I guess it was good to see the elevated repurchases in the quarter. Should we expect kind of a higher baseline going forward? Or was this more just Axcelis being a bit more opportunistic?

Yes, we discussed our capital allocation strategy, which focuses on organic growth with increased investments in R&D and also considers return strategies, including inorganic options. In the second quarter, we took advantage of the opportunity to allocate over $45 million to share repurchases. When we announced the additional authorization in the second quarter, we mentioned that we would be buying at a higher rate than in the past. Typically, we have repurchased around $15 million per quarter, and we expect to continue at a higher rate compared to that. However, I won't provide an exact forecast for the amount we will allocate to share repurchases for the third quarter just yet.

Our next question comes from Tom Diffely with D.A. Davidson & Company.

Russell, first, I was hoping to get an update on just the state of the competition in China and maybe both on a systems and the spares business point of view.

We closely monitor our competition, especially new companies emerging in China. There has been competition in that market for many years, with a couple of competitors existing for around 20 years. However, we don’t see them penetrating markets accessible to U.S. manufacturers. They seem to be focused on accounts that remain off-limits to us. The feedback indicates that these competitors are still quite immature. It's important to remember that these tools have significant compliance requirements that demand high throughput, excellent beam uniformity, precise beam angles, and low particle counts. Achieving that level of maturity requires substantial knowledge, experience, and effort. We are keeping a close eye on them, but they appear to be in the early stages of their development roadmap.

Okay. That's very helpful. And maybe as a follow-up, Jamie, maybe talk a little bit about the backlog. At this point, is it just systems? Or does it include systems plus CS&I? And what do you think the projected shipment or timing is of that backlog?

Yes. So that's a great question, Tom. Yes, our backlog numbers we report are just systems-related orders. So it does not include any of our CS&I revenue expectations in there. So it's just systems purchase orders that we've brought into the business. As it relates to the timing, that backlog carries into 2026 for sure. And as we think about it, it gives us a nice runway, right, as we go into 2026. But we are looking to see that inflection point where we get increased bookings. I think of note, it's important for us to remember that we are at despite the bookings not necessarily maybe being where we want them to be, they are at substantially higher levels than they were in the back half of 2024. And so we are starting to see some movement there. And ultimately, we just want to make sure that we position the business to be able to execute very well on the upturn, right? So investing in the R&D, maintaining slightly higher inventory levels to be opportunistic with when that upswing occurs that we've got the inventory related to our high-turn systems available for our customers. And so again, we're proud of the execution so far through the first 6 months here of 2025, and we look to finish the year out good.

Our next question comes from Mark Miller with The Benchmark Company.

I'm just trying to reconcile a couple of things here that China EV sales, as you noted, they've been strong year-over-year, yet you're projecting flat China sales in the second half. Similarly, DRAM sales have also been strong, but your memory sales were just 3% of total shipments and were sequentially down. I'm just trying to reconcile both of these things with what you're seeing.

On the China side, we have seen significant capacity built out through 2024. As we enter the year, we anticipated that 2025 would be used to enhance the productivity and efficiency of their tools and systems, while also adding capacity at a slower pace. Although power demand remains strong, China continues to perform well for us. Our customers are actively seeking ways to increase the inclusion of silicon carbide in electric vehicles. The current penetration rate of silicon carbide into EVs in China is still quite low compared to the volume of automobiles sold. Additionally, some Chinese auto manufacturers are starting to incorporate silicon carbide into hybrid vehicles as well. Therefore, the market for silicon carbide in both the electric and hybrid vehicle sectors is on the rise. Consequently, our customers are looking to ensure that their devices are qualified to meet future demands. Regarding memory, we anticipated its arrival this year, and we had a positive increase in deliveries during the first quarter. However, we expect memory sales to remain subdued through 2025 as our customers assimilate the existing capacity. As Russell has mentioned previously, they are exploring opportunities with the growth of high-bandwidth memory (HBM) to repurpose some parts of their facilities and incrementally increase their capacity. Yet, they haven't committed to significant capacity additions at this point. What we're observing is opportunistic purchases from our customers, aiming to acquire just a couple more implanters. Memory sales will fluctuate throughout the year and are likely to be higher than in 2024, but they will still be below our historical levels.

And this concludes the question-and-answer session. I would now like to turn it back to David Ryzhik for closing remarks.

Thank you, operator. I want to thank everyone for joining the call and your interest in Axcelis. Operator, you can close the call.

This concludes the presentation. Thank you for your participation in today's conference. You may now disconnect. Good day.