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Oct. 28, 2025, 4:45 p.m. ET Call participants Executive Chairman — Clarence L. Granger Chief Executive Officer — James Zhao Chief Financial Officer — Sheri L. Savage Senior Vice President, Corporate Development — Cheryl Knepfler Need a quote from a Motley Fool analyst? Email [email protected] Total revenue -- $510 million (non-GAAP), down from $518.8 million in the prior quarter. Gross margin -- 17%, improving from 16.3% in the prior quarter, supported by site utilization, mix shift, efficiency, and tariff recoveries. Product and services margins -- Product margin (non-GAAP) was 15.1%, compared to 14.4% in the prior quarter, and services margin was 30%, compared to 29.9% in the prior quarter. Operating expenses -- $57.7 million (11.3% of revenue, non-GAAP), up from $56.1 million (10.8%) in the prior quarter due to SAP implementation costs. Operating margin -- 5.7%, compared with 5.5% in the prior quarter, with Products at 4.9% and Services at 11.1% (non-GAAP). Net income and EPS -- Net income (non-GAAP) of $12.9 million and earnings per share of $0.28 on 45.6 million shares, compared to $12.1 million and $0.27 in the previous quarter (non-GAAP). Cash position -- Cash and equivalents at $314.1 million, down from $327.4 million at the end of the prior quarter, with breakeven cash flow from operations compared to $29.2 million in the prior quarter. Debt refinancing -- Term B loan repriced, lowering interest margin by 50 basis points for reduced long-term interest expense. Share repurchase program -- Renewed for three years; up to $150 million authorized with $50 million annual cap, but no near-term repurchases planned. Tariff recovery -- Clarence L. Granger stated, "we are able to recover approximately maybe a little over 90% of the tariffs that we get charged," indicating improved cost management moving forward. Revenue guidance -- Projected total revenue (non-GAAP) of $480 million to $530 million, and EPS guidance (non-GAAP) of $0.11 to $0.31. China strategy -- Less than 7% of revenue attributable to Chinese customers, with all products for non-Chinese customers to be manufactured outside China by year-end. Acquisition integration -- SAP system deployed for Fluid Solutions, and strategic alignment completed for product qualification to improve margins rather than direct revenue growth. Operational initiatives -- Ongoing site consolidation, efficiency improvement, automation, and AI-based inspection to strengthen quality and throughput. Segment demand outlook -- Sheri L. Savage noted "a little bit of difference in Q4 than what we initially said last quarter," as some segments slowed despite new European business capture. Ultra Clean Holdings (UCTT 1.87%) achieved sequential improvements in gross and operating margins (non-GAAP), even as total revenue (non-GAAP) declined by $8.8 million quarter over quarter. Management attributed margin gains to favorable product mix and effective cost recovery on tariffs, with processes in place to continue this benefit beyond a one-time impact. CEO James Zhao described a restructuring of manufacturing strategy, with a full transition of non-Chinese customer production outside China by the end of the year, minimizing exposure to geopolitical risks. The company is integrating recent acquisitions, notably Fluid Solutions, to enhance internal sourcing and margin, rather than via immediate revenue increases. Outlook for revenue (non-GAAP) was revised modestly downward as strength in Europe was offset by other segment slowdowns, and management projected flat China revenue in the near term. Sheri L. Savage indicated, "We did collect slightly more than what we anticipated in the original forecast," directly benefiting EPS in the quarter. James Zhao stated that the company anticipates a mid to high range of year-over-year growth in next year's WFE, though the timing remains to be seen, underscoring ambiguous industry demand signals for 2026. Acquisition-related integration activities are progressing, with further efficiency and margin improvements expected in 2026. Cheryl Knepfler referenced conflicting customer signals, with "at least two of our customers who are looking at flat revenue," prompting continued management caution in guidance. Management reaffirmed focus on capital allocation discipline, repricing debt, and extending the share repurchase program, despite an absence of near-term buybacks. All products destined for Chinese customers will be manufactured in China, while all other production shifts abroad, structurally separating supply chains by geography. Industry glossary WFE: Wafer Fab Equipment; capital equipment used in semiconductor wafer fabrication, observed as a key demand indicator in the sector. NPI: New Product Introduction; the process of qualifying and ramping new products in semiconductor capital equipment and subsystems. China for China: Strategy of manufacturing products in China exclusively for Chinese customers, now being phased out in favor of discrete supply chains. Full Conference Call Transcript Clarence L. Granger: Thank you, Rhonda. And good afternoon, everyone. We appreciate you joining our third quarter 2025 conference call. I'll start with a brief review of our Q3 results followed by an update on our three areas of focus including new product introduction, flattening the organization, and business structure and processes. After that, I'll turn the call over to James Zhao, Ultra Clean Holdings, Inc.'s new CEO, for a few observations from his first sixty days and insight into Ultra Clean Holdings, Inc.'s next phase of growth. And then Sheri will provide a more detailed financial review. First of all, we are very pleased with our third quarter results, which reflect continued progress on the priorities we've set for the year. This quarter, we realized a notable improvement in our gross margin, demonstrating some early benefits of the structural and operational improvements we've been implementing across Ultra Clean Holdings, Inc. as well as some tariff-related cost recovery. These results speak to the resilience of our business model, the discipline of our global teams, and our continued focus on execution in a complex and uncertain business environment. Throughout the quarter, we remained focused on strengthening our operational foundation through the three key initiatives I highlighted last quarter. First, we continue to drive new product introductions and component qualifications with our customers, ensuring we are positioned early in their technology development cycle. Second, we substantially completed the work to flatten our organizational structure. A key milestone that's improving our decision-making speed, increasing efficiency, and better connecting our global teams. Part of this process includes driving factory-level efficiencies and consolidating select sites to further enhance productivity and optimize our cost structure. A third major area of focus is streamlining our business systems, and the optimization of our prior acquisitions, including Fluid Solutions, Services, and HIS into Ultra Clean Holdings, Inc.'s core systems and processes is on track. We installed our company-wide SAP business system into our fluid solutions group in July, and we have completed the strategic alignment between our products group and Fluid Solutions on qualification priorities with our customers. This alignment strengthens our position for new business opportunities and will support improved margins over time. These combined efforts represent a comprehensive transformation that positions Ultra Clean Holdings, Inc. for greater agility, efficiency, and long-term profitability. While it will take time for all the benefits to be fully realized, these actions are foundational to building a stronger, and more competitive company for the years ahead. We all recognize that the current macro landscape remains dynamic with near-term volatility and reduced visibility. Yet the underlying fundamentals of our industry remain exceptionally strong. AI-enabled high-performance computing continues to drive a powerful new wave of semiconductor innovation, fueling demand for advanced manufacturing technologies, new architectures, and next-generation processes. These structural growth drivers play directly into Ultra Clean Holdings, Inc.'s strength. Our deep technical expertise, our manufacturing expertise, and the ability to respond with speed and precision as our customers' needs evolve. With that, I'll turn the call over to James to share more about our operational progress, customer engagement, and the opportunities we see ahead. James? James Zhao: Thank you, Clarence. My first sixty days as CEO have been inspiring. The talent and their drive across Ultra Clean Holdings, Inc. give me full confidence in our ability to take the company to the next level. Our industry is entering a new era, fueled by AI and rapid technology change. That is what I call Ultra Clean Holdings, Inc. 3.0, evolving from a trusted partner into a trusted strategic partner and co-innovator, deeply integrated into our customers' technology roadmaps. By harnessing our operational agility and innovation velocity, we will unlock new levels of growth with our world-class facilities while supporting our global customers with speed, scale, automated infrastructure, and innovation. To build even more on what Clarence already highlighted, my immediate focus remains on strengthening profitability, optimizing our global footprint, and positioning Ultra Clean Holdings, Inc. for long-term growth. Operationally, we are driving measurable improvement in quality, cost efficiency, and on-time delivery performance. Through lean and quality initiatives, we are streamlining our processes across sites and sharing best practices, including broadening our vertical integration and optimizing the organization and our accountability. Automation and digitalization, including the integration of AI-based inspection and robotics, are also accelerating factory throughput and quality consistency. With that, Ultra Clean Holdings, Inc. will have more robust infrastructure and processes to better capture emerging growth opportunities during the next ramp. Our optimized footprint strategy, the capacity is aligned with regional wafer fab equipment demand growth. We are establishing a cluster-based manufacturing network to improve global innovation speed and cost efficiency to regionalized centers of excellence with new product engineering and mass production transfer. To build long-term value creation, we will accelerate the design to production cycle, capitalize on high-value new product introduction as a leading-edge node, and further strengthen our strategic partnerships with semi-cap customers through technology integration and execution discipline. We are aligned with our peers, customers, and industry sentiment that the long-term outlook for the semiconductor market is very much intact. We see powerful sustained demand driven by AI, high-performance computing, data center expansion, and other advanced packaging technologies. We view these structural technology inflections as the foundation for a decade of growth across the semiconductor ecosystem. In the short term, while downstream fundamentals and sentiments are improving, it could take several quarters to see a meaningful acceleration in wafer fab equipment spending. This does not change the fact that I'm very excited about Ultra Clean Holdings, Inc.'s future and the opportunity to lead this company into the next AI era of semiconductor advancement. Back over to you, Clarence. Clarence L. Granger: Thank you, James. I know that with your leadership, Ultra Clean Holdings, Inc. will be in good hands. Since this is my last conference call, I wanted to thank all our investors, our customers, and especially our employees for the trust they placed in me during this transition period. It was my honor to step in and reconnect with everyone, and I am very confident that James will take us to the next level. With that, I'll turn the call over to Sheri for a review of our financial performance. Sheri? Sheri L. Savage: Thanks, Clarence and James, and good afternoon, everyone. Thanks for joining us. In today's discussion, I will be referring to non-GAAP numbers only. As Clarence and James noted, our third quarter results highlight meaningful progress on our key initiatives for the year. These achievements demonstrate the effectiveness of our strategy and the resilience of our organization as we continue to position Ultra Clean Holdings, Inc. for long-term profitable growth. For the third quarter, total revenue came in at $510 million compared to $518.8 million in the prior quarter. Revenue from products was $445 million compared to $454.9 million last quarter. Services revenue came in at $65 million in Q3 compared to $63.9 million in Q2. Total gross margin for the third quarter was 17% compared to 16.3% last quarter. Products gross margin was 15.1% compared to 14.4% in Q2, and services was 30% compared to 29.9% last quarter. Gross margin gains were supported by improved site utilization, a higher value product mix, cost and efficiency initiatives, and tariff recoveries. Margins continue to be influenced by fluctuations in volume, mix, manufacturing region, and related tariffs as well as material and transportation costs, so there will be variances quarter to quarter. Operating expense for the quarter was $57.7 million compared with $56.1 million in Q2. As a percentage of revenue, operating expenses were 11.3% versus 10.8% last quarter. As mentioned in the previous call, this increase in OpEx was mainly due to incremental SAP go-live costs. Total operating margin for the quarter came in at 5.7% compared to 5.5% last quarter. Margin from our Products division was 4.9% compared to 4.8%, and services margin was 11.1% compared to 10.5% in the prior quarter. Our third quarter tax rate came in at 22.7% as we have revised our full-year estimated tax rate to approximately 21%. Our mix of earnings between higher and lower tax jurisdictions can cause our rate to fluctuate throughout the year. For 2025, we continue to expect that tax rate to be in the low to mid-20s. Based on 45.6 million shares outstanding, earnings per share for the quarter were $0.28 on net income of $12.9 million compared to $0.27 on net income of $12.1 million the prior quarter. Turning to the balance sheet, our cash and cash equivalents were $314.1 million compared to $327.4 million at the end of last quarter. Cash flow from operations was breakeven compared to $29.2 million last quarter, mainly due to the timing of cash collections and payments. Reducing our overall interest expense remains a key priority. During the quarter, we took advantage of favorable conditions in the credit markets to reprice our Term B loan, lowering our interest rate margin by 50 basis points. This proactive step further optimizes our capital structure and reduces our long-term borrowing costs. Another development includes the renewal of our share repurchase program for an additional three-year term, authorizing up to $150 million in repurchases with a maximum of $50 million per year. Although we are not anticipating near-term repurchases, we view this program as a valuable component of our disciplined capital allocation framework. The tariff environment for the semiconductor market remains dynamic, and we continue to see these effects across the supply chain. During the third quarter, we achieved some tariff recovery, and we will continue to closely monitor developments, leverage our global footprint, and localized supply chain to help mitigate the impact, maximize efficiency, and protect our profitability. As stated earlier, this quarter was very favorable for product mix and factory utilization. We see Q4 returning to similar levels as the first half of the year. As a result, we project total revenue for 2025 to be between $480 million and $530 million. We expect EPS in the range of $0.11 to $0.31. And with that, I'd like to turn the call over to the operator for questions. Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Please press the star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the phoning process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from Charles Shi of Needham and Company. Please go ahead. Charles Shi: Thanks for taking my question. Good afternoon, Clarence, James, and Sheri. Maybe the first question on the near-term industry demand outlook. It sounds like you guys are seeing maybe we won't really see a pickup over the next several quarters before an actual pickup starts to happen. And I wonder what your view is right now for the first half of next year. Should we still kind of assume that the $500 million per quarter level? And what's the early view on the second half of next year? That's the first question. Thank you. James Zhao: Yeah. Okay. So, Charles, thanks for the question. And I look forward to working with you and your firm as a long-term partner. I think that our view on this, as you already heard from some of our customers, right? They really see a kind of mid to high range of year-over-year growth in next year's WFE in general. I think that some customers see a little bit of a flattish outlook in the first half, and they see a kind of step function increase in the second half. Others see differently. So I think that I really do not want to give you a specific because of the controversial outlook we have from different customers. So I would say that we will see a mid to high range of year-over-year growth, and the timing of that is to be seen. Sheri, do you want to add? Sheri L. Savage: Go ahead, Charles. Charles Shi: Yeah. Maybe a second question on Q4. Looks like you're guiding Q4 slightly below the September level. I believe one quarter ago, you were expecting some pickup tied to some of the opportunities you saw in Europe, and I wonder why the guide is a little bit lighter than the expectation a quarter ago. Was that the timing of that program in Europe, or something else has probably weakened a little bit? Thank you. Sheri L. Savage: Hi, Charles. This is Sheri. Yeah. We did see that demand and continue to see that, but we are seeing some different forecasts from others. So it's just causing a little bit of difference in Q4 than what we initially said last quarter. But we are seeing strength in that specific revenue that we talked about in Q3. As you know, we have a large bell curve of margins that we produce for our customers. And in Q3, it just happened to be a little bit better mix than what we've seen previously. Q4 is kind of going back to the mix that we've seen in 2025. But that's generally why our Q4 is slightly down from the timeframe. Clarence L. Granger: Charles, this is Clarence. So as we said, we were going to capture some new business in Europe in Q4. We did capture that business. It's just as Sheri said, some other businesses are slowing down and offsetting that. But overall, we are very confident in our position in capturing new business. And we feel we're well on our way to having a much stronger year in 2026, albeit maybe in the second half. Charles Shi: Got it. If I may, I have one last question. Is there anything different in terms of your view about your China for China business? We knew that at the beginning of the year, there were some technical challenges that your Chinese OEM customers saw and kind of led to quite a bit of a decline in that part of the business. Is that on track to recover? And is it on track into the fourth quarter? Where do you see that China for China business in terms of maybe revenue run rate where it's going to be at? Thank you. Clarence L. Granger: Hey, Charles. Yes, we knew this question was coming from you. We were kind of flipping a coin to see who got to answer it. I got the short straw. I guess it's my turn. So just to make sure we clarify on our China situation. Literally a little less than 7% of our total revenue is to our Chinese customers. So, it's not a huge portion of our revenue, but obviously, I understand why everybody is interested in China with all the talk going on. So, but in terms of the revenue, our revenue this quarter and next quarter will be about the same percentage for China. So it's relatively flat right now. And frankly, because of all the political turmoil, we are migrating all of our non-Chinese customer manufacturing out of China. So as you know, we've called that China for China, but we're probably going to quit using that terminology. But essentially, all of the products manufactured in China as of the end of the fourth quarter will be manufactured in China, and all the products for our non-Chinese customers will be manufactured outside of China. So that's an important strategic direction for us. And we've accomplished what we said we would. So from a long-term perspective, we're very comfortable with our position in China. We think the Chinese market is going to be one of significant growth over the next few years. And we fully intend to participate in that market going forward, albeit on a slightly different footing where we have essentially two separate manufacturing organizations. Charles Shi: That's it. Thank you. I appreciate all the color. Clarence L. Granger: You're welcome. Operator: Your next question comes from Krish Sankar of TD. Please go ahead. Robert Mertens: Hello. This is Robert Mertens on the line on behalf of Krish. First, congrats, James, on the new role. We look forward to working closely with you in the future. Glenn, just my first question. Could you walk us through some of the remaining synergies with these recent acquisitions you've done? I believe last quarter, maybe you'd mentioned integrating the Fluid Solution Group systems into existing products. Are those targets still on track? And then I have one follow-up. Clarence L. Granger: Sure. So, yeah. So, obviously, we've talked about the acquisitions. We had Fluid Solutions, Services, and HIS. And so the Fluid Solutions is the one where we've made the most significant progress right away. We have completed the inclusion of the SAP business system in our fluid solutions site. This will give us consistency between our traditional Ultra Clean Holdings, Inc. manufacturing and our fluid solutions. We've also completed the strategic alignment between the products group and the fluid solutions on qualification priorities with our customers. So we've made very good progress there. What that means, though, is the reason we need strategic alignment is that fluid solutions products will be utilized in the subsystems that our products groups build. So we won't actually see fluid solutions get more and more qualified, we won't actually see an increase in revenue. What we'll see is an increase in margins because the Fluid Solutions products will be replacing other products that we've had to buy from other suppliers. And so that will result in improved margins for us. And so we're very pleased with the progress that we've made there. The other two sites are the services site, and we've made some good progress on the integration of the services site. We had previously had the business unit separated from the manufacturing arm of the services group, and we've now combined that to improve our overall efficiencies. That's been accomplished. And the HIS group, we are considering various options relative to locations and possible levels of increased utilization for new product introduction and possible site consolidation. So we have not finalized all the activities that we're doing in those major areas. But we do think that we've made significant progress, and we expect significantly more progress in 2026. Robert Mertens: Great. Thank you. That's helpful. And then just for the tariff recovery benefit in the quarter, was that meaningful to the overall margin growth in September? And was this sort of a one-time benefit catch-up from suppliers? Or should we expect a bit of a tailwind in December as well? Sheri L. Savage: Yes. This is Sheri, Robert. We will continue to collect surrounding our tariffs going forward. We did collect slightly more than what we anticipated in the original forecast. So that did help with our overall EPS. But we anticipate we have put a really good process in place for go forward now, and that basically will assist us with that collection as we move forward. Clarence L. Granger: I guess the other point I'd like to make on that, we're now to the point where we're very first of all, this was not a one-time hit. This is ongoing. But we're very confident that we are now to the point where we are able to recover approximately maybe a little over 90% of the tariffs that we get charged. So this should be less of a factor to us on a go-forward basis. Robert Mertens: Got it. Thank you. James Zhao: Thank you. Operator: The next question comes from Christian Schwab of Craig Hallum Capital. Please go ahead. Christian David Schwab: Thanks for taking my question. Congrats, James, on the new role. As far as WFE outlook for calendar 2026, I understand you're seeing conflicting data points, and third-party research is kind of all over the place as well. But that being said, do you think the company is positioned to outgrow WFE growth in calendar 2026, regardless of what that number is? Historically, kind of in an upturn, you've kind of done 10% or more growth on top with WFE. Is that what we should expect? Or would you expect the business to kind of follow whatever WFE looks like? James Zhao: Hi, Christian. This is James. Nice to meet you virtually. So I think that, as I mentioned, 2026 is really a kind of 58% of year-over-year growth, depending on which analyst you're looking at. And from the Ultra Clean Holdings, Inc. perspective, it's hard for us really to give you a concrete forecast on how much is our year-over-year growth. For the following reasons, because number one is that we still see some of the customers still have inventory. So the consumption of inventory actually kind of delays the revenue from Ultra Clean Holdings, Inc. perspective. Right? So we're not synchronized because of that, number one. Number two is also if you look at the NPI cycle of our customers, it takes quite a long time for them to really ramp up their NPIs and really kind of qualify Ultra Clean Holdings, Inc., especially for the NPI products. So therefore, you probably see them to have this incremental revenue for the Ultra Clean Holdings, Inc. revenue growth from the NPI product will be a few quarters behind. So therefore, we cannot fully capture the NPI growth. But And then the third is really the product mix. If you look at the leading-edge spending, right, you can see that the list always more than 40% of the spending. Ultra Clean Holdings, Inc. historically is really etch and that intensive. But with that said, we're working very closely with our third customer, which is a little company, and grow our revenue with them. So I think that the longer term you will see that we're more kind of matching the WFE growth when we grow that little business. And finally, I think that this also goes to the China factor. Right? So I think the domestic OEMs in China, you know, depend on, you know, the analyst report you kind of follow, they could be increasing percentages of the worldwide WFE growth. And Ultra Clean Holdings, Inc. does not necessarily have the same market share as we have the rest of the world. With all of that factors, I cannot give you the exact number, but we're pretty confident we will outgrow the WFE. Christian David Schwab: Great. Thank you. No other questions? James Zhao: Thank you. Operator: Your last question comes from Edward Yang of Oppenheimer. Please go ahead. Edward Yang: Hi, folks. Thanks for the time, and welcome aboard, James. We just want to close the loop on your comments about reduced visibility. It just seems a bit discordant from the rest of the industry so far where, you know, I think the tone seems to be a bit more positive. So what are you seeing specifically in your order book? Just want to better understand the offsets. You know, is it China? Is it memory? I saw that your memory revenue was down. Or is it specific customers that give you some caution? Cheryl Knepfler: Hi, Ed. This is Cheryl. I'll start sort of with the industry view and then let James talk a little bit more in terms of some of the products. So when we look out at the industry, we do have a number of the companies and third parties who are indicating the second half should be positive. There's a lot of things that are going in on that. But we also have some of our large growth customers who are indicating some level of concern. Whether it translates to them saying their revenue is going to be flat for others. So there are at least two of our customers who are looking at flat revenue, flat to up. Others who are still forecasting, you know, significant gains opportunities, but all in the second half. So we've had two or three or four years of saying second half growth. So I think we are just looking at remaining prudent in how we're looking at things. Since we are getting some level of conflicting information. However, I do think we have a lot of programs going on that James will reference that indicate that we do expect to see a level of growth through that. But we just want to remain cautious about how we're looking at it and how we structure things. James Zhao: Well said, Cheryl. I think that the only thing I want to add is that, you know, it's really the business nature. I live in both worlds at the, you know, semi-cap OEMs and now with, you know, a subsystem company like Ultra Clean Holdings, Inc. I see that with the bullet is a little bit different. You know, the other side is about six to nine months. If you will. Here, it's really a quarter plot, I'd say. So, therefore, there is a visibility kind of difference. Therefore, I think we want to stay very, very precise on what we know and what we can really kind of share with you and the rest. Edward Yang: Okay. That's helpful. And, James, you spoke a lot about efficiency and optimization, but would love to get your thoughts also on your plans for restarting the growth engine at Ultra Clean Holdings, Inc. You know, where do you think the best opportunities are? Is it in leading-edge AI? Is it M&A? China? Would love to get your thoughts there. James Zhao: I think that those are relevant. I'd love to do all of them, but I think that we're also constrained by the resource. And I want the team really focused on the fundamentals first. Right? So as a subsystem partner to our OEM customers, we want to make sure we really deliver on time. We really have the least quality excursion. And also, we continue to drive the cost efficiency. Right? So that's really my first priority. Then I think that the growth really it's always follow that horizon one, two, three cadence. I always want to focus on the horizon one, which is really expanding the business with our partners in the OEM space. The top three customers are definitely our focus. And then we can look at, you know, the diversification in that space means that some of the other semi-cap OEMs. I really want to continue the vertical integration that Jim and Clarence already did in the past five years. And integration is part of that, but we can further expand the engineered product. As long as it fits our core competency and also fits in the vertical integration strategy we have. And finally, as Horizon two and three, we can look at all the areas you mentioned. But I think that we'll have an upcoming investor conference, and we can share more of my growth strategy with you and the other folks. Edward Yang: I look forward to that. Thank you very much. James Zhao: Thank you. Operator: There are no further questions at this time. I will now turn the call over to James Zhao for the closing. Please continue. James Zhao: Thank you for joining us for this earnings call. I look forward to further chat with you at the follow-up call. Thank you. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
