Good morning, and welcome to IPG Photonics' second quarter 2025 conference call. Today's call is being recorded and webcast. At this time, I'd like to turn the caller over to Eugene Fedidov, IPG Senior Director, Investor Relations, for today's introductions. Please go ahead with your conference.

Good morning, everyone.

With me today is IPG Photonics CEO, Dr. Mark Giddon, and Senior Vice President and CFO team, Momin. On today's call, Mark will provide a summary with a quick look at our second quarter results and the overall demand environment, then walk you through the progress we are making on our long-term strategy. After that, he will turn it over to Tim to provide financial details, and then he'll open the call for questions. Let me remind you that statements made during this call that discuss our expectations are predictions of the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties and can cause the company's actual results to differ materially from those projected in such forward-looking statements. These risks and uncertainties are detailed in our Form 10-K for the period ended December 31, 2024, and our reports on file with the Securities and Exchange Commission. Any forward-looking statements made on this call are the company's expectations or predictions as of today, August 5th, 2025 only. And the company assumes no obligations to publicly provide any updates or revisions to any such statements. During this call, we will be referencing to certain non-GAAP measures. For more information on how we define these non-GAAP measures and the reconciliation of such measures to the most directly comparable GAAP measures plus additional details on our reported results, please refer to the earnings press release, earnings call presentation, and the financial data workbook posted on our investor relations website. We will also post these prepared remarks on our website. With that, I'll now turn the call over to Mark.

Thank you, Gene. Good morning, everyone. Second quarter revenue came in above our expectations, increasing 10% sequentially and 2% year-over-year, excluding divestitures. Our first year-over-year revenue increased since 2022. Our results were driven by a combination of a modest demand improvement in multiple markets and geographies, as well as our continued focus on our strategy to drive profitable growth. We're investing in key strategic initiatives targeting a $5 billion TAM that offers us hundreds of millions of dollars in revenue growth opportunities, and we are starting to see results. By quickly adjusting our operations, we were also able to ship approximately $10 million out of the $15 million in customer orders that we believed were at risk of being delayed due to tariffs and were not included in our second quarter guide. Starting with our materials processing business, we saw a sequential demand improvement in welding, cutting, and marking applications with some growth in e-mobility and general industrial markets. Our unmatched capabilities in lasers and welding process monitoring technologies, combined with deep applications expertise continue to differentiate IPG in the marketplace. This enabled us to secure key wins in EV manufacturing despite ongoing uncertainty in the market. In China, renewed capacity investments in battery manufacturing drove growth in our welding. On the industrial side, a stabilizing demand environment supported sequential growth in welding, cutting, and marking applications. Booking trends are encouraging, with demand showing signs of improvement and book-to-bill at approximately one on our higher second quarter revenue as we move into the second half of the year. We have also seen improvement and stabilization in the leading indicators, such as PMIs and the industrial production through June, but the demand environment remains uncertain. We also expect demand for our products will benefit from increased onshoring and local investments in automated production. I'm excited that early returns from our growth investments help to drive revenue in the quarter. Our strategic focus on developing innovative lasers and photonic solutions to expand into medical, micromachining, and advanced applications is showing results. In advanced applications, we achieved another quarter of record revenue, driven by higher demand across all categories, primarily in directed energy, semiconductor, and scientific application. Last quarter, I shared that strategic investments to grow our advanced applications business allowed us to achieve a key milestone six months ahead of schedule. I'm thrilled to announce that we've now delivered multiple units of our first laser counter UAV solution, Crossbow, to Lockheed Martin. This disruptive turnkey directed energy system is enabled by IPG's laser systems expertise and high-performance commercial single-mode lasers and supported by our high-volume manufacturing capabilities. Crossbow is a scalable and cost-effective laser defense system that can neutralize unmanned aerial threats and can operate as a standalone system or integrate into layered defense architectures. Over the past six months, both IPG and Lockheed Martin have conducted extensive field testing and customer demonstration of Crossbow, validating the system's operational effectiveness against the increasing threat of smaller class Group 1 and Group 2 drones. We'll be showcasing Crossbow this September at DSCI in London, one of the industry's leading defense exhibitions, and we anticipate strong interest from both defense and commercial customers for protection of critical military and civilian assets. This is another example of how IPG leverages our core laser and photonics technologies to address critical market needs. Micromachining delivered strong revenue compared to the prior year, despite some shipment delays related to tariffs. This is a high-potential market for IPG, where we see strong alignment between our technologies and the key applications of our customers. As we shared last quarter, we are also making good progress in medical with a new urology customer that is already helping to drive medical revenue growth. Looking ahead, we expect momentum to continue with additional product introductions planned for Q4 2025, 2026, and beyond as we execute on our strategic development roadmap. The traction we are seeing across micromachining, medical, and our other focus areas reinforces that our teams are executing well and that these investments are laying the foundation for long time. Finally, our capital allocation strategy is an integral part of our growth strategy. As we've said before, our primary focus is on organic growth investments and strategic M&A. We expect to spend approximately $100 million on CapEx in 2025 to expand capacity and capture growth opportunities. Within M&A, we are evaluating tuck-in opportunities with a range of $50 million to $200 million in revenue. Our revenue and competitive position in cleaning applications has benefited from the clean laser acquisition that we made at the end of last year, and we continue to target companies that offer differentiated technology or market access to accelerate strategic growth initiatives. During the quarter, we continue to opportunistically return cash to shareholders, repurchasing $30 million of IPG stock, building on the $1 billion in share repurchases over the past three years. Since joining IPG just over a year ago, I have been focused on setting the foundation to drive profitable growth, including strengthening the organization. We achieved a recent milestone on this objective with the appointment of five key leaders, including four recent hires, to help advance our strategy and support continued global growth. These leaders have a proven track record of driving strategy and execution. They each bring distinct strengths, deep expertise, and a shared commitment to collaboration. And with these new appointments to our executive leadership team, we are shaping a stronger IPG, better equipped to execute with speed, serve our customers with excellence, and drive our next chapter of profitable growth. I am pleased to welcome them to the team and excited about what we will be able to accomplish. I am proud to report that we've been effectively adapting to the dynamic operating environment by leveraging the flexibility of our global manufacturing supply chain to minimize the impact of tariffs. We've demonstrated agility, shifting production across regions to better serve customers, so continue to work on alternatives to optimize our tariff exposures. As a result, we were able to ship most of the orders that were previously anticipated to be delayed due to tariffs and longer customs processing. While new tariffs have recently been announced, our global footprint and supply chain flexibility position us well to continue meeting our customers' needs. As I mentioned earlier, our second quarter book-to-bill ratio was approximately one on higher revenue, and we are encouraged by signs of further demand stabilization in our business. Industrial production has been improving, and inventories that some of our cutting OEM customers have normalized, supporting a return to more typical purchasing behavior. We don't believe the recent increase in demand is driven by customers pulling orders forward in response to tariffs. That said, the demand environment continues to be sensitive to external factors, so we are approaching the second half with cautious optimism. In closing, I am encouraged by the progress that we're seeing, both in the stabilization of our core business and in advancing our strategy to drive laser adoption in markets with high growth potential. While tariff-related pressure and uncertainty persist, we remain focused on what we can control and confident in our ability to navigate this environment while executing for profitable growth. With that said, I will now turn the call over to Tim.

Thank you, Mark, and good morning, everyone. My comments will generally follow the earnings call presentation, which is available on our Investor Relations website. I will start with revenue trends by application on slide five. Revenue from materials processing decreased 6% year over year as a result of divestitures and lower sales in cutting, welding, and additive manufacturing applications partially offset by higher revenue in micromachining and the acquisition of clean laser. Revenue from other applications, increased 21%, driven by higher sales in medical and advanced applications. As Mark already mentioned, we saw sequential improvement in revenue in cutting, welding, and marking. Welding revenue grew on customer wins and improvement in industrial demand and EV battery investments, primarily in China. Cutting revenue also grew sequentially and was nearly flat compared to the prior year as the cutting OEM business showed some stabilization in Europe and an increase in demand in Asia and North America. Marking and engraving sales were also more stable. Our cleaning revenue improved sequentially and continued to benefit from clean laser. Mark already highlighted strong results in our medical and advanced applications in the quarter, so I won't go over them again. Our emerging growth products performed well in the quarter, increasing to 54% of sales, driven by a wide variety of laser sources, subsystems, and systems. Moving to the revenue performance by region on slide six, sales in North America increased 31% sequentially and were down 4% year over year. Sequential growth was primarily driven by higher sales in medical and advanced applications, as well as improved sales to cutting OEMs. Despite more stable sequential performance, welding revenue was down compared to the prior year due to soft demand from EV manufacturing in the region. sales in europe was stable with less than a one percent sequential decline and down 11 percent year over year excluding 11 million dollars in divestitures lower cutting and welding sales a result of soft industrial demand were partially offset by clean laser revenue in asia increased 4% sequentially, and 14% year-over-year, benefiting from higher sales in welding and putting, as well as advanced applications. We have continued to see a strong demand recovery in e-mobility, coupled with our business wins in EV welding applications. Sales to additive manufacturing were lower in the quarter due to timing of shipments, while demand remained strong. Moving to the financial performance review on slide 7, revenue came in above our expectations at $251 million, up 10% sequentially and down 3% on a year-over-year basis. Foreign currency increased revenue by approximately $4 million, or 1% this quarter. Gross margin was 37.3%, flat year-over-year. Just a gross margin was 37.8%, at the top of our guidance, and was driven by improved manufacturing cost absorption and a decrease in inventory provisions, mostly offset by higher cost of products sold due to geographic and product mix and increased shipping costs. The impact of tariffs was 115 basis points, which was better than our expectations. Operating expenses were above last year's level, primarily due to the investments we are making in key areas that are central to our strategy, as well as investments in strengthening our organization, which Mark highlighted earlier on this call. GAAP operating income was breakeven, and our adjusted EBITDA was $32 million, slightly above the top end of our guidance. GAAP net income was $7 million, or $0.16 per diluted share. Adjusted earnings per diluted share, which include stock-based compensation, but exclude amortization of intangibles, other acquisition-related charges, foreign exchange loss, and discrete tax items was $0.30 in the second quarter, above our guidance range. Moving to a summary of our balance sheet and cash flow on slide 8, we ended the quarter with cash, cash equivalents, and short-term investments of $900 million and no debt. During the second quarter, we spent $15 million on capital expenditures and $30 million on repurchasing IPG shares, supporting our balanced capital allocation framework of investing in growth and returning cash to shareholders. We now expect CAPEX of approximately $100 million in 2025 as we expand capacity primarily in Europe. We expect operating cash flow to improve significantly in the second half, substantially offsetting CapEx. Looking ahead, we expect CapEx to decrease significantly and free cash flow to improve next year. Moving to our outlook on slide nine, for the third quarter of 2025, we expect revenue of $225 million to $255 million and adjusted gross margin between 36% and 38%, including a potential of a slightly higher impact of tariffs. With investments in the growth of our business and strengthening the organization, we expect our operating expenses to remain elevated at between $89 million and $91 million in the third quarter. We anticipate delivering adjusted earnings per diluted share in the range of 5 cents to 35 cents, with approximately 42.5 million diluted common shares outstanding. Our adjusted EBITDA is expected to be between $22 million and $36 million. In closing, we are pleased to see signs of continuing revenue improvement coupled with results from our strategic initiative, and we believe we have significant operating leverage in our model. Our strong balance sheet gives us a significant advantage given the near-term uncertainty in the operating environment. With that, we'll be happy to take your questions.

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. Confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Jim Rusciutti with Needham & Company. Please proceed with your question.

Thanks. Good morning. Congrats on the quarter. First off, on the book to bill, I'm wondering if you could provide any color on book to bill by region. Was there much variability in terms of the regional bookings?

Hey, Jim. Thanks very much for the question. Good to hear from you. Actually, book to bill was one and really just about one across all regions. That was, of course, on – go ahead.

No, please, Mark.

I was just going to say that that was also on top of the higher revenue as well, so we're quite pleased with that.

My follow-up, Mark, is on the directed energy commentary. Yeah, I'm wondering how you're thinking about the opportunity for IPG over the next few years, just relative to maybe the other emerging growth opportunities you're targeting. And can you say, for instance, how many customers you're working with in this area?

Yeah, sure. So thanks, Jim. So the directed energy, again, is part of the work that we're doing, taking the key technologies within IPG. So this is the lasers, as well as the broader photonics and the applications, understanding to really direct it to some key areas of growth. And, of course, the advanced is one with the directed energy, as well as the medical and micromachining areas. But specifically in directed energy, what I can say is that this is a very interesting market for us. In terms of market size, it's a little bit hard to estimate, but it's a developing market. There's kind of billions of dollars spent each year on the order of a billion dollars in the U.S. And our solution addresses a key segment of the market, and that's the key part that we believe is growing. So this is, on the call there, this is addressing the smaller class drones, the Group 1 and Group 2 drones, which is the biggest issue today, or let's say a very significant issue today, both in warfare, we've seen that as an issue, as well as in civilian infrastructures where there's incursions in airports, incursions at borders, incursions in stadiums. So, you know, it's a big it's a big issue today. So so from a market standpoint, this the crossbow is a turnkey system that directly addresses that small, the small drone threat. We have the partnership that we talked about with with Lockheed, which is addressing one part of the market. We believe, again, the market is is a broader one that has both opportunities in the defense sector, but also the civilian. the civilian piece. And we'll be, of course, I've mentioned that we've done extensive testing with Lockheed, that that's going very well, and that we'll be bringing the system to the DSCI show in September, where we'll have a chance to talk to a broader customer base as well. But overall, you know, very excited with the progress the team has made. And again, this is a great application for us because it's the combination of our core technologies with the single mode lasers as well as the photonics. And then it's key for us because, again, this is something that we can bring into our commercial manufacturing infrastructure where we're manufacturing volumes of these single mode lasers, but also systems and subsystems. So we can do this at a very disruptive price point and cost point. And that's why we believe that, you know, this is a unique position to be able to address this, you know, this smaller drone class at a cost point that could be broadly used.

Thanks, Mark. I appreciate the additional color on that. I'll jump back in the queue.

As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Reuben Roy with Stiefel. Please proceed with your question.

Thank you. Hi, Mark, and hi, Tim. Mark, I wanted to start with maybe just walking through the outlook. It's great to see the progress and, you know, some signs of stabilization, but when we look at the Q3 guidance, maybe you can just walk us through the puts and takes of that guidance. So, you had 10 million that you had previously anticipated out of the 15 come through in Q2, and maybe just an update on how you're thinking about potential tariff impact as a portion of that guidance for Q3. And then you had a comment about cautious optimism for the second half. And I'm just wondering, you know, what kind of visibility you might be getting from your customers as you think about the second half, i.e., you know, do you think that there's going to be continued stabilization and maybe improving bookings into Q4. Thank you.

All right. Thanks for all the pieces here. Again, we're very happy to see the book-to-bill of one, and again, that book-to-bill on top of the higher revenue. As you mentioned, we were able to ship about $10 million of the $15 million that we expected to move into Q3 because the team did a fantastic job of being able to mitigate the tariff issues because we have this flexibility, as we talked about, to be able to move the manufacturing from region to region and optimize the tariff situation. We believe we'll be able to do that also, of course, going forward. And we did see very good demand in material processing. We're seeing the industrial businesses, the industrial markets. You know, there's been improvement over the last few quarters. You've seen that, some of that improvement in PMI. So, you know, we're seeing that industrial pickup, and we're seeing it in material processing broadly across, you know, across each of the regions and broadly across many of the applications, including the areas of welding. We talked about the EV pickup. We've seen that also in cutting. So we've seen our cutting the inventories. Some of our OEMs have normalized. So we're seeing that area pick up. And we've seen, you know, increases, you know, continued demand increases in things like additive manufacturing, as well as, again, broad-based. We saw strong, you know, strong medical. We have, you know, We picked up another customer, as we talked about, in medical that's attached to our roadmap of urology. So that's continuing to see growth. So again, we're seeing kind of broad-based improvement, I would say. And I would say cautious optimism. And the reason I'm saying cautious optimism, because of course, there's still tariff uncertainties. And we're still in a macro environment that hasn't completely recovered, for sure. So that's really my comments. Got it. Thank you for that detail.

Yeah, go ahead, Tim. We went through it standard. The usual process on generating guidance, so there's nothing particularly unusual in there. I think the only thing I think that's good is that even at the midpoint, we're slightly above where the street was. And I think that's the first time in quite a while that we've been able to guide at a midpoint that is mildly positive. So I think we're more than bouncing along the bottom at the moment. We've probably got a little bit of lift off, a little bit of lift off at the moment.

A little bit, indeed. And yes, I can't remember the last time that you guys had a guide above our numbers. So that's great. If I could follow up on Jim's question, Mark, on the defense stuff, I would love to understand how you're thinking about high energy as well. There was, you know, there's been some awards and actually, you know, just yesterday, another award for 100 kilowatt system. And so, you know, is that part of your strategy longer term, perhaps, or are you, you know, focused more on this lower cost stuff that you talked about?

So what I would say is that, you know, we've been playing in the overall market and directed energy for many years. We have, you know, very high performance. I'd say the best single-mode lasers that are applied, you know, broadly in the marketplace, as well as our amplifiers. So those tend to play in many of those programs. But high power is not what Crossbow is. This system is really focusing on threats from these Group 1 and Group 2 drones, you know, the smaller drones that are more widespread and, you know, can be addressed with the relatively low power using our high brightness single-mode lasers. So that's really the area that we're talking about here. And we think that that's, as I mentioned, is a significantly growing market because it's one of the biggest issues today. You know, as you're reading, it's a big issue on the battlefield today. These small drones that you can buy for, you know, hundreds of dollars can inflict major damage. And then also, you know, it's an issue in the civilian infrastructure, borders, et cetera, as well. And we're starting to see more of that. And it's only increasing. So, you know, we think that's a really good area for us to play. Great.

And if I could squeeze one more in for Tim. Tim, on the gross margin, I might have missed it. But did you give, as part of that 36 to 38 percent gross margin number, it sounded like a little bit of a higher impact from tariffs. Did you give the inventory absorption number that is impacting the gross margin?

I mean, relative to Q2, we are still, we had an improvement in underabsorption that we said benefited gross margin a bit. We're still relative to peak efficiency, probably 500 basis points of getting back to that more optimal level. But we saw a meaningful improvement, a couple of hundred basis points improvement in the second quarter. Expect that to flow through to Q3 as well.

Okay.

Thank you. That's all I had. Thank you.

Our next question comes from Scott Graham with Seaport Research Partners. Please proceed with your question.

Hi, good morning, and congratulations on a nice quarter. I wanted to ask a couple of questions here, including piggybacking off of what you just said about gross marketing. But first, could you kind of tell us how the order book looked as the quarter progressed, and maybe any specific end markets in particular, anything you could mention would be helpful. Yeah, I don't mean in dollars. I kind of mean year over year because we all know that June is typically the largest month for dollar orders. I'm just hoping as on a year over year basis, we could talk about the progression.

Yeah, I mean, I think year over year, the total increase, the total value of bookings increased. We haven't given that number, but it was up compared to Q2 24. I think the overall tone during the quarter was significantly improved compared to a year ago. April was actually quite a strong bookings month, so it wasn't backloaded. Our revenue happened to be a bit more backloaded in the quarter with June being very strong on revenue. That probably reflected the fact that the bookings in April were pretty good. May was a little bit weaker, and then June picked up again. So we weren't scrambling to get to this number at the end of the quarter. It was easier than it has been on not just a year ago, but even the last couple of quarters where bookings have been more weighted to the end of the period.

I think he left. Our next question comes from Jim Rusciuti with Needham & Company. Please proceed with your question.

I just wanted to ask about the systems business, a smaller part of your business, obviously. But the first year-on-year sequential increase that we've seen in a while, and I wanted to understand what may have drove that. I assume some of that may be the clean laser business, but can you elaborate on what you're seeing there?

Yes, certainly, Jim. So a couple things. First of all, we're very excited with clean laser. That's going very, very well, that acquisition that we did at the end of last year. Their integration is going very well, and they've been continuing with their traction in the market. But we're also seeing, you know, we've also had some increases in other areas of our systems. You know, we're making micromachining systems and systems in welding and such as well. I don't know, Tim, if you have anything you'd add.

I think you covered it. I think just on the robotic side, we had a better quarter on the large-scale gantry robotic systems as well, and a pretty good quarter on Lightwell, too.

And on the medical business, sounds like you're encouraged by the ramp you're seeing with the second customer in the urology area. I wonder if you would help us understand whether there's been any change in the overall competitive environment in this area of the business.

So let me speak to that, Jim. So let me just step back for a moment and just say that, you know, that urology is one of the key areas that we're investing in. So it's the medical side, the micromachining, the advanced. And in that urology roadmap, we have a broad base of capability in that area. And we're bringing out new systems. So we talked about the fact that we're bringing something out in Q4 and then a whole roadmap of growth. We have the strongest position on the thulium lasers in urology, and we're continuing to grow as we picked up this new customer. That's bringing our share up and continuing to drive our share in that market.

Thank you.

Our next question is from Scott Graham with Seaport Research Partners. Please proceed with your question.

Yeah, hi again. Sorry about that. The gross margin, the minus 500 basis points, Tim, could you provide a little bit more color around that, if you would?

Yeah, sure. I think the positive takeaways from gross margin were that we had better manufacturing efficiency, so we had a benefit from lower under-absorbed costs. We've made statements that that's a real focus of ours of trying to get that improved. It helped a little bit. The revenue is up a bit. The second side of it is we've got inventory more under control over the last 12 months. The inventory provisions that we incurred were a bit lower. Offsetting those benefits, we did have really related to product mix, both on a geographic and product basis, a little bit of an impact to gross margin due to lower product gross margins. But in that regard, we've actually got, you know, cost reduction initiatives across four or five different areas that we're starting to roll through the business model. So we expect that product gross margin to improve. I mean, just a couple of examples of those. There's, for example, the rack integrated higher power lasers is starting to be introduced more fully. We're looking at some of the micro machining lasers with higher power output and better specification that the bill of material won't change on. You know, we're automating the production of some of our consumable fibers for medical. And there are other areas that we're working on to get the product cost down. So expect that to bounce back. And then the tariffs, if you really compare Q2 to Q1, the tariff impact was 115 basis points. You add that back to both the adjusted and unadjusted gross margin, you're back, you know, close to 39 percent on an adjusted basis. and 38.5% on a gap basis.

Very good, yeah. Very thorough response to my question, Tim. Thank you really a lot for that. It would be nice also if you guys got a little bit of help from your end markets, and I think there are a couple of companies that have reported so far that have indicated that, hey, look, once this tariff uncertainty, once that cloud starts to lift a little bit, you know there's going to be um an increase in you know green projects are going to be green light and things are just going to be a little bit better i was wondering if you were kind of hearing that from your customers a big part of your revenue base is you know general industrial across the world and it's just kind of hoping if you heard anything from that from your customers um if you could share that from your general industrial market hey scott this is mark so

So, you know, as I talked about, we've seen, you know, we've obviously seen some pickup. We see the book-to-bill strong. We've seen, you know, the PMIs improving in the various regions. But we're still in some, you know, we still have some uncertainty. I'd say, again, it's what I said. I think my customers are saying the same thing, that they have a cautious optimism looking forward. There's still some uncertainty with the tariffs, and there's some uncertainty in the market, but I'm hearing, let's say, cautious optimism.

Very good. Thank you.

As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Mark Miller with the Benchmark Company.

Please proceed with your question. i'm just wondering if you can comment about welding market outside of china in particular united states yes hi hi there mark yes so we've seen we've seen uh you know good good growth in in welding you know globally so i can say that the strongest growth that we saw was specifically in in EV, and the biggest piece of growth there was in China, but we do have, we have had broad-based growth, and we've seen growth also quarter on quarter with light weld and welding, so we are, you know, seeing some increase.

I'm just wondering, too, if you can comment about the margin profile, your backlog, is that similar to what you're expecting in the third quarter?

Yeah, I mean, the mix on that's not fundamentally different going into the quarter mark.

Thank you.

We have reached the end of the question and answer session. I'd now like to turn the call back over to Eugene Fedotov for closing comments.

Thank you, everyone, for joining us this morning and your continued interest in IPG. We will be participating in several investor events this quarter and are looking forward to speaking with you again soon. Have a great day.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.