Enovix Corp Q4 FY2024 Earnings Call

Thank you for standing by and welcome to the Enovix Corporation Fourth Quarter 2024 Earnings Conference Call. Currently, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. As a reminder, today's program will be recorded. And now I would like to introduce your host for today's program, Robert Lahey, Head of Investor Relations. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to the Enovix Corporation's Fourth Quarter and Full Year 2024 Financial Results Conference Call. With us today are President and Chief Executive Officer, Dr. Raj Talluri; Chief Accounting Officer, Kristina Truong; and Chief Operating Officer, Ajay Marathe. Raj and Kristina will provide an overview, and then we'll take your questions. After the Q&A session, we'll conclude our call. Before we continue, let me kindly remind you that we released our fourth quarter 2024 shareholder letter after the market closed today. It's available on our website at ir.enovix.com. A replay of this video call will be available later today on the Investor Relations page of our website. Please note that the shareholder letter, press release and this conference call all contain forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on current expectations and may differ materially from actual future events or results due to a variety of factors. For a discussion of those factors that could affect our future financial results and business, please refer to the disclosure in today's shareholder letter and our filings with the Securities and Exchange Commission. All of our statements are made as of today, February 19th, 2025, based on information currently available to us. We can give no assurance that these statements will prove to be correct and we do not intend and undertake no duty to update these statements except as required by law. During this call, we will also discuss non-GAAP financial measures, which are not prepared in accordance with the generally accepted accounting principles. You can find a reconciliation of the GAAP financial measures to non-GAAP financial measures in our shareholder letter, which is posted on the Investor Relations page of our website. I'll now turn the call over to Raj to begin. Raj?

Thank you, Rob, and thanks to everybody for joining us today. For our format today, I'm going to start with a recap of our recent results and some of our recent milestones, before I turn it over to Kristina for financials and outlook. I have a few closing comments and then we'll take your questions. We had a very proactive 2024, especially Q4. To recap our recent achievements. First, our revenues in the fourth quarter were $9.6 million, near the high end of our guidance range. For the year 2024, total revenues were $23.1 million, up from $7.6 million in 2023. Second, we completed our top manufacturing and product objectives for the quarter by completing Site Acceptance Testing of our High-Volume Manufacturing line and shipping our first samples of EX-2M to customers. Third, we shipped early engineering samples to our lead smartphone OEM with the results confirming the critical safety tests are all passing. Additionally, we received the cell dimensions as a continuation of the agreement we made with them. These dimensions are actually of the cell that they expect to be shipping in 2025. Now we are on track for commercial smartphone launches in 2025, pending successful completion of the customer qualification. Fourth, in line with the agreement we announced in June 2024, we also delivered our first battery packs of our first custom cells from Malaysia with packs built in our Korea facility. In addition, we secured a purchase order from a custom battery from a second marquee smart eyewear customer. The ramp of Fab2 in Malaysia in 2024 stands out as a pivotal accomplishment for the company. We managed to complete SAT of our HVM line, just one year after our first tools arrived. Yields are now well beyond the final levels we achieved in Fab1. And we have incremental targets in place throughout the year that we believe will prepare us for smartphone mass production in the fourth quarter of '25. We now have multiple customer audits going on, serving as a strong testament to our manufacturing readiness and our customers' interest in using our products. While we remain focused on smartphones, we're also prioritizing segments where major battery constraints or supply chain requirements are creating a strong competitive advantage for our technology. Recently, smart eyewear emerged as one of these segments and we're now in the process of developing custom cells for marquee customers in this space. Another market that recently emerged as a unique growth opportunity for us is the defense industry, where we recognized a significant portion of our 2024 revenues with conventional graphite battery products. Since the US elections last November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. Earlier this year, we secured a sample purchase order from one of these suppliers for autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside from these. And on the product front, it's been a very productive 2024 and Q4 for us. We successfully completed testing of EX-1M and performance results indicate that we are on track to meet targets of energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and we received positive feedback that the EX-2M energy density is meeting customer targets. Looking ahead, we have officially kicked off the design phase of EX-3M, incorporating feedback from our lead OEMs to ensure alignment with their evolving requirements. Now with that, I'll turn it over to Kristina for the financials. Kristina?

Thank you, Raj. All the relevant financials are in our quarterly report and our shareholder letter. So I will speak from a high level and then provide outlook. We delivered Q4 2024 revenue of $9.7 million, above the midpoint of our guidance. Non-GAAP EBITDA came in at a loss of $11.7 million, above our guidance of a loss of $19 million to $25 million. Our non-GAAP EPS came in at a loss of $0.11, also above our guidance of a loss of $0.15 to $0.21. We ended the quarter with roughly $273 million of cash and cash equivalents. CapEx in Q4 was $16.4 million and cash used in operations totaled $16 million. Our balance sheet is strong, giving us a runway for options and optionality for funding additional HVM lines. Now for our guidance. For the first quarter of 2025, we forecast revenue of $3.5 million to $5.5 million, an adjusted EBITDA loss of $21 million to $27 million and a non-GAAP EPS loss of $0.15 to $0.21. Now, I'll turn back to Raj for close. Raj?

Well, thanks, Kristina. As we can see, 2024 was a big year for us. We made significant strides by launching our new High-Volume Manufacturing line in Malaysia, with custom battery cells already shipping from the Agility Line and High-Volume production slated for 2025. We also focused on building strong customer demand across key markets, including smartphone and IoT OEMs, while we continue to drive innovation and operational excellence. With that, we can go to the questions. Operator?

We will now begin the Q&A session. Please note that this call is being recorded. Before we go to live questions, we're going to read the two most highly voted questions submitted by shareholders ahead of this call during the call registration. The first question is, regarding policies and tariffs implemented by the new administration, what are the potential implications for Enovix's current and future business operations and prospects?

Yes. Thank you for the question. As I mentioned in the prepared remarks, we are actually getting increased interest since last November for our batteries from defense and other industrial customers in the US. As a reminder, our factories are in Korea and Malaysia, which is very favorable for shipping batteries into the US. So we don't see much effect from the tariffs at this point.

And the second question is, can you lay out the current guidance for adding lines? What is the current capacity? When will you begin ordering equipment? And how long will it take to install any additional lines?

Yes. I'll take a shot at the question and I'll have Ajay add more context to it. Firstly, we are super excited that we completed the SAT of our High-Volume Manufacturing line. The factory we have in Malaysia has the ability to add up to four lines there, and we put in one line and that's the one we completed SAT on. In terms of current capacity, I'll let Ajay comment and then I'll talk about how to add additional lines.

Thanks, Raj. Good question. The current Line 1, Gen2 Line 1, which is installed in our Malaysia fab is running and was bought off in SAT at 1,350 UPH, just as a reminder, which is equivalent to roughly 9.5 million to 10 million batteries a year. Now this is fed by what we call farms in Zone 1, which is dicing and Zone 4, which is testing. Now we are adding capacity to Zone 1 as we see the indications from the market on how much volume we need to support. So that's where the capacity lies. The way we are looking at adding lines is basically long lead time items, such as various different items in the line, which are used as control systems on the manufacturing line. We are ordering and keeping them as inventory at our suppliers. This gives us the ability to shrink the timeline for when we can add the second, third, and fourth lines. So that's how we are looking at this capacity.

Yes. Thank you, Ajay. Nothing else to add.

We will now take questions. Our first question comes from Jed Dorsheimer with William Blair. Your line is open. Please go ahead.

Hi, thanks. Congrats on the quarter and thanks for taking my question. I guess first one, just the drone purchase order, I'm curious, just trying to get a better understanding of the growth profile of this customer. I think you mentioned it's $1 billion, that they're doing $1 billion in revenue. And I think if memory serves, they just hit that. So I just want to make sure that that customer is on that S-curve of inflection. Am I thinking about that customer in the right way? And maybe you can comment on, is the defense coming in better-than-expected? How you're thinking about that? And then I have a follow-up too.

Yes. We can't really comment on which customer. But one thing I can tell you is, we are seeing a lot of interest for the batteries that we are making in our Korea facility because they are high-rate batteries and they're very good for applications where you need fast discharge and high-rate of discharge. The market is growing. It's hard to put an exact number on it. It's early stage in terms of qualification, but hopefully as the qualifications progress, we'll be able to add more context on how we see the business going. But we are getting multiple inquiries for those batteries from different customers now in the US.

Great. And then just as my follow-up, just pivoting to the commercial smartphone, you're now starting to build a backlog of that customer base. I was wondering if you could just rank order the cell phone customers in terms of the pipeline and the commercialization stage, if you could just remind us of that? Thanks.

Yes. I mean, we had mentioned that we have sampled seven of the top eight customers and another one just placed an order for samples from us, clearly showing interest is building in our products and what we can build. We talked about two agreements that we have with two customers and they're both progressing. One of them, we actually received, after passing the milestones and last time I talked about getting a payment for the milestones, we now got a very important milestone, which is, we got the exact dimensions of the battery that will be in the phone this year. So that is a huge step because now we understand exactly what it is. Just to remind the viewers, what we sampled was a standard battery that we made here of a standard size. But now we got dimensions of the battery and this is north of 7,000 milliamp hours, a sizable battery. But again the space is still constrained in the phone. So our energy density clearly adds value there. The next stage is we expect that to get qualified with our technology in their phones. And we expect to get other custom cells from the following customers in that order. And again, this one particular battery that we are making for this customer could go into multiple models. Typically, these batteries go into multiple models within the segment of the market. So we are super excited about the progress we're making. It's steady, gradual, and well thought through.

Our next question will come from Ananda Baruah with Loop Capital. Please go ahead.

Hey, guys. Yes, thanks for taking the question. Really appreciate it. I guess Raj and Ajay, this is sort of sticking right there. Can you remind us for EX-2M and you mentioned Raj EX-3M. Two things, like number one, like the capabilities of each model? And then when do you think each of those models gets into the marketplace and gets to volume? And anything you can say about the volume that each of those can bring to the company would be awesome. Thanks.

Yes. The way to think about this is, we've made different choices of anodes, cathodes, electrolytes, and so on, for our first EX-1M product, where we got requirements for the customers and we sample them. We are now getting feedback from them on what they like and what they want us to increase or decrease. This is a trade-off of energy density versus fast charge, versus cycle life, versus temperature performance and so on. We are now optimizing that to meet the customer requirements. Meanwhile, we made a step forward in choosing a newer set of materials that give increased energy density, and that's EX-2M. We then make more advances in terms of both materials and our architecture to reduce the amount of inactive materials so that we can gain more energy density and that's EX-3M, which we just started. In terms of volumes, it's difficult to comment on volumes at this stage because it will depend upon which customers go to production first, how many models we get designed into, and how quickly we can ramp that. Towards the later part of the year, we'll be able to comment more because at this stage, they're all in different stages of qualification. We have visibility into one of the models, but there's a lot more behind that. It just takes time to be able to answer that question more precisely.

Okay, that's awesome. And I guess just as a follow-up, just Ajay, just to make sure we fully understand the context around sort of the four lines. Is it Line 1, you mentioned 9.5 million to 10 million. Is there anything implied in your description that the 9.5 million to 10 million can get filled in a reasonable amount of time and then you're sort of speaking to the expansion of the lines? Or can you do sort of 9.5 million to 10 million to start per line? I think you'll probably tweak that up from there just with efficiency gains. But even inside of that line, is sort of as things progress, is that also wrapped into the Line 1 as well? Just context around that. Thanks.

Absolutely. Thanks, Ananda. Yes, Line 1, as just a reminder, is what we call the universal line. It is capable of running equally efficiently the smaller cells, which we are also feeding into the AR/VR market, as well as the larger cells, which we are now working on that are custom cell, more than 7,000 milliamp hours. The capacity kind of remains the same. Line 2, 3, and 4, when we will order that depends on the customer qualification cycles, as Raj also said. Whatever improvements we make, from Line 2 to 4 will involve optimizing the line for both CapEx spend and speed. We will apply the learnings and will ensure that it remains backward compatible with Line 1. So universally, we can produce from any of the four lines that Raj talked about.

Yes. One other thing I don't know, maybe just to remind you, as Ajay mentioned, when we built the first line, we built what is called a universal line, which can run from very small batteries to much bigger batteries. That's a more expensive line, but it gives us flexibility because we're not sure exactly where the demand would be when we built that line. As we get more visibility into the kind of custom cells, we can optimize our lines more for that size of cells and not have so much flexibility in it, which optimizes the cost of the line and increases the throughput of the line, which is kind of a natural evolution of how you do manufacturing as you understand the product demand better. We optimize it for both cost and speed, right? And that’s kind of how this is going to go.

Thank you, guys. Appreciate that.

Our next question will come from Colin Rusch with Oppenheimer. Please go ahead.

Thanks so much, guys. Getting to a 7,000 milliamp hour cell, it seems like a bit of an acceleration on some of the roadmaps. Can you talk a little bit about how quickly those specs are changing? And how you're seeing that translate into potential pricing appreciation for the company?

Yes. I mean it's a really good question, Colin. I mentioned, I think probably looking back to 2023, when I said we are seeing a lot of AI coming to the edge that will drive a much higher demand for batteries because those applications consume a lot of energy. I'm pleased to say that this is coming through today. What is happening now is the GenAI applications consume so much battery and every app, and there’s so many apps now running on phones that consume that, and customers are having to put higher and higher capacity batteries, much higher than we expected, reaching 7,000 plus milliamp hours, which we are now working on. I see that getting even larger over time, and this is clearly a good tailwind for us in ASP because delivering that kind of capacity on a limited form factor means energy density drives value, and we receive a premium for energy density. This is a good tailwind for us in terms of ASP premium and margin expansion as these trends continue.

That's super helpful. And then I guess my follow-up here is really about the competitive landscape. Obviously, there's been a lot of capital invested in materials, and there's also been a lot of rebalancing different sales structures. I'm just curious how quickly you're seeing competitors move and how intense that environment is for you guys as you go through this qualification process with all these smartphone makers.

Yes. Our competition continues to be incumbent graphite batteries, which have kind of doped the graphite with some amount of silicon. I think we mentioned we saw 5% to 10%. But in a big cell, like in the 7,000 milliamp hour kind of range, if you put more than that, we see that the swelling becomes too much. You can't keep doing that. Our constraint and our innovative architecture allow us to utilize 100% active silicon. As far as I know, we are the only ones who can use 100% active silicon, which has been validated by our customers and also validated by the people who supply these silicon materials. They are excited to work with us because we're able to use 100% of their material. This is a competitive advantage we have with our architectural approach, and I hope to get these into product soon.

Thanks, guys.

Our next question will come from Bill Peterson with JPMorgan. Please unmute and ask your question.

Yes. Hi, thanks for taking the questions, and recognizing your focus on smartphones and maybe some of these emerging IoT applications, but I wanted to come back to this defense opportunity. Can you speak more on the format or the size of the batteries, and how much can the Korean sites support in terms of, I don't know whether it be megawatts or revenue? Just trying to get a sense for how fast you can grow into this market. And if it were to be of interest, how fast could you expand your capacity?

Yes. We have capacity now in our Korean factory to support some of these for now. We have space available nearby, and we can expand capacity. The good news is that as these things start getting qualified, we get visibility into what this demand could be like next year because it takes a year or so to get these things really qualified into production. As we start getting into qualification in these opportunities, we will, and we can expand in our facility there. It's a very nice site; it's in Nonsan, and we have the opportunity to grow there. So we are excited about that.

Yes, thanks for that. And you had in your press release about the EV, you're advancing development agreements with two customers. I had a sense that like that would have already been done. So I guess what areas remain to be resolved before anything official happens? And has any of the joint development work happened thus far? I know these are long dated, but are there any key milestones we should be looking for this year, or is the work really going to begin in earnest in 2026 and beyond?

No, absolutely. I mean, work is ongoing. We are able to now get the materials from these EV makers, and we have them in our Malaysia factory because, as you remember, we shut the factory down here. Originally, we were thinking of doing some of that work here, but we moved it all to Malaysia and Ajay was able to create some space there because these are different materials. They need to be handled differently. We have an area there where we are processing the EV work. We’re now able to dice that material, and we are working on making those into cells to demonstrate the benefits of our architecture even in the EV space. So stay tuned for that. I think this year we should have some updates on that.

Our next question will come from George Gianarikas with Canaccord. Please go ahead.

Hey, good afternoon, everyone. Thank you for taking my questions. I just had a question about the smart glasses business. I think you mentioned in your press release that you expect commercial shipments to commence midyear. In 2024, you had a couple of press releases, one that mentioned a California company with an AR/VR, I think mixed headset, and another one in December, that was another potential customer with a similar sort of device. So can we confirm that this commercial purchase order is for one of those two companies?

Yes, these are for actually both companies. We have purchase orders from both, and in fact, I do have a cell here if I was going to show this to you guys since we are on video. This is actually the cell that we made that goes into the legs like that, and super exciting. You see in our investor letter that we are able to not only make this cell, but we are also packaging it with the battery management and so on into a pack in our Korea facility, and we were able to deliver that to the customer. This marks tremendous progress from the time we received the purchase order to actually get some early samples out from our new factory. The results look really good, and as I said, we are going to continue making that. I'm optimistic about this market as a space with a lot of potential in the coming years, especially because the user interface problem has been resolved well with GenAI. You can interact with these devices via speech. It's been clunky to interact with a pair of glasses before, but now that problem is pretty well handled. I attended an AR conference recently, and the advances made in waveguide optics and the brightness of projectors and miniaturization are remarkable. I have been in this space since I was at Qualcomm nearly a decade ago, and it looks like there has been a lot of progress. Therefore, we are quite optimistic about that. The cells we make are notably advantageous because there is limited space to put batteries in these glasses, and the applications demand a lot of performance from the battery to ensure all-day usability. This is the reason we are witnessing tremendous interest in our technology in this space. It will take some time to get into the millions, but it's a good place to start.

Thank you. And also on manufacturing, since the last time we spoke, you've completed your Site Acceptance Test, and you expect to begin production in earnest in the fourth quarter this year for smartphones, and at some point this year for the devices you just mentioned. What are the bottlenecks to be confident from here that you can scale that production? Obviously, you've been, I'm assuming tinkering with some of the lines. So I'm curious as to what has to be solved between now and then to really gain confidence that you can make these batteries in the millions? Thank you.

I'll take a quick shot at it and then I'll let Ajay speak. We are very pleased with the progress that Ajay and his team have made. We see cells coming out, we're shipping them to customers, and now the factory is going through ISO audit, which will be a big step when it's done in the next few months. The work now is really about producing this at volume and scale and getting the UPH and yields up. Maybe Ajay can comment further.

Yes, absolutely, Raj. The proof points obviously are yields and how fast we can ramp on this line. The line is qualified; there are no technological bottlenecks, if you will. We are processing with different material sets. As Raj pointed out, we are working on EX-1M and EX-2M concurrently, depending on what the customer needs in terms of performance. We have been continually learning and ramping up. We are on track for ramping in the second half, which is precisely when we expect some of these things to come to fruition in terms of customer qualifications.

One other thing I'll add is that as we see this demand now, these are for slightly different shaped cells. So big cell of a certain form factor and a small cell like this. Some of the work Ajay's team is doing is how to reduce the cycle time so we can quickly manufacture different cells on the same machine, but what tooling needs to be done. That's an ongoing project.

Our next question will come from Derek Soderberg with Cantor. Please go ahead.

Yes. Hey, guys. Thanks for taking the questions. Raj, did you say that you had two purchase orders from AR companies? I know the first one, you guys indicated you'd begin shipments midway through this year. Is the second one for a commercially planned device or was that for sample orders? And then just given the density benefit that you can deliver with these AR devices, what's the average selling price you think you can get for this form factor?

Yes. Yes, we do have purchase orders from both customers. We are in the process of getting the exact dimensions and making those specific shapes because they're both slightly different. The ASP premiums are quite attractive in this market because of how critical the battery's performance is to the life of the products. You probably see in our investor deck that we have put material on the advantages of our product over what's currently commercially shipping. You can see that that translates to a nice ASP premium. While I can't share specific numbers, we are quite pleased with that business. Another point is our ability to produce full packs, which I mentioned when we acquired Routejade; this is going to hold significance for us because making a full pack also incurs an ASP premium compared to just selling the cell. This factor is also playing out positively, which is one reason why I highlighted this acquisition.

I think that's helpful. And then just related to one of the first questions. When you guys want to add, say, High-Volume Line number 2, can you talk about how long it would take to procure and install that second HPM Line 2? It feels like the demand for some of these AR devices could be coming in pretty soon here. How fast could you order a second High-Volume line and turn it on?

Before we answer that, let me clarify that the demand will emerge next year. We will create some cells and supply them, but the qualification timeline takes its time. It's important to understand we are discussing '26 demand now, and we will plan capacity accordingly, and Ajay is managing that.

Yes, just to add to that, as I mentioned earlier, we are strategically managing the long lead time items because not all components that make up the line have the same lead times. Some of them have longer lead times. We've instructed our suppliers to start stockpiling those items at their premises on their dime. This strategy allows us to reduce the timeline to set up Line number 2 and subsequently Line number 3. We are continuously seeking ways to shrink those timelines. The first line took a significant amount of time, but the second one will be completed much faster. Our capacity for quick ramp-up into production will also improve with time.

Got it. Thanks, guys.

Our next question will come from Gus Richard with Northland Capital Markets.

Yes, thanks for taking my questions. Just real quick on the production coming out of Qualcomm. It sounds like it's tailored to military applications in high-rate. I'm curious, is it more of a standard lithium-ion battery, or what sort of sets it apart for the military applications?

Yes. The Routejade acquisition that we made is a standard lithium-ion battery, except it's a high discharge rate battery. For example, think about something that powers moving objects like drones and so on. When you have a mechanical object that's moving, you need to distribute energy at a much higher rate, and that's one of the capabilities this acquired company can offer. They can also create different shaped and sized cells that can be used across various consumer electronics. They offer two or three different variations of products we can utilize. The military variants are high-rate, larger cells.

Got it. Very helpful. And then just on Line 1, you said that the UPH is 1,350. That's I believe an instantaneous throughput. Can you talk about capacity utilization? With just one line, you can’t commit to that volume for your customers. How should we think about utilization in the first year until Line 2 comes up and you can bring that up?

Yes. Good question. That will be contingent upon how quickly the qualification cycles run through with several customers in play. A good manufacturing company gauges performance by assessing how much of the line can be filled, enabling it to commence ordering those longer lead time items first, followed by other components needed to complete the line. That gradual feedback is derived from customer qualifications.

Got it. Thanks so much.

Our next question will come from Sean Milligan with Janney. Please go ahead.

Hey, Raj. Thanks for taking my questions. Can you talk about CapEx outlook for this year as it stands today? What do you expect CapEx to be? And then sort of underlying assumptions there in terms of how many lines you are ordering long lead time items for?

Yes. We don't really provide full guidance for the year, but maybe Kristina, if you want to comment on that a little bit.

As Raj said, a lot of the long lead time items are ordered by our equipment vendors, at their expense due to our established relationships and whatnot. But for our 2025 CapEx, we have about $30 million to $40 million currently budgeted.

Okay. And then Ajay, on the next line, like Line 2, do those economics fit the slide deck? The 1,650 UPH that's in the back of the slide deck, is that sort of the expectation on the next lines?

Yes, that's correct. The UPH is always measured in terms of the equivalent cell size. As Raj alluded, we are now obviously getting cell sizes, which are significantly larger, which is really good for the value we provide and the attached ASP. The goal for the next line is 1,650 for the low-sized cells we have talked about; it will vary based on which size cells move through the line.

Okay. And then Raj, I know you’re still qualifying some of those early samples with the cellphone customers. But in one of the slides in your presentation that talks about the top cellphone OEMs, the average model size is around 3.5 million units per year. Just curious like in the two that you're in advanced stages with, do you have visibility into the potential models that you'd be in? Are those programs expected to be below or above that average model size mentioned in that slide?

Yes. So one of them, like I said, we actually got the specific cell dimension, so we have a little bit more visibility into where it will possibly go. But it's important to remember that in the Android market we're targeting initially, each smartphone model has certain features associated with it, such as camera, display, processing power, memory configuration, and so on. These may also have variants; for example, the customers might alter the model slightly and ship it to India or Europe, for instance. We don't have clarity yet on precisely which product we will be in, and that will become apparent as we draw closer to production. This is typical for how it works, and clarity typically surfaces closer to the production timelines.

All right, great. Thank you.

There are no further questions at this time. With that, I'd like to turn it over to Dr. Raj Talluri for closing remarks.

Yes, thank you very much for your interest and following us. We'll get back to you next quarter. Thank you.