Q1 2024 Intevac Inc Earnings Call

Participants

Claire McAdams; Investor Relations and Strategic Initiatives; Intevac Inc

Nigel Hunton; President, Chief Executive Officer, Director; Intevac Inc

Kevin Soulsby; Interim Chief Financial Officer; Intevac Inc

Peter Wright; Analyst; Intro Act

Mark Miller; Analyst; The Benchmark Company

Hendi Susanto; Analyst; Gabelli Fund

Presentation

Operator

Good morning and welcome to Intevac's First Quarter 2024 financial results conference call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. Please note that this conference call is being recorded. Today, April 21st, 2024.
At this time, I would like to turn the call over to Claire McAdams, Investor Relations for Intevac. Please go ahead, ma'am.

Claire McAdams

Thank you, operator, and good morning to everyone on today's call. Thank you for joining us today to discuss Intevac's financial results for the first quarter of 2024, which ended on March 30th. In addition, to discussing the company's recent results, we will discuss our outlook looking forward. Joining me on today's call are Nigel Hunton, President and Chief Executive Officer; and Kevin Salisbury, Chief Financial Officer. Nigel will begin with an overview of our business and outlook.
Then Kevin will review our financial results. Before turning the call over to Q&A, I'd like to remind everyone that today's conference call contains certain forward-looking statements, including but not limited to, statements regarding financial results for the Company's most recently completed fiscal quarter, which remains subject to adjustment in connection with the preparation of our Form 10Q as well as comments about future events and projections about the future financial performance of Intevac.
These forward-looking statements are based upon our current expectations and actual results could differ materially as a result of various risks and uncertainties relating to these comments and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our annual report on Form 10K and quarterly reports on Form 10Q.
The contents of this April 25 call include time-sensitive forward-looking statements that represent our projections as of today. We undertake no obligation to update the forward-looking statements made during this conference call. I'll now turn the call over to Nigel.

Nigel Hunton

Thanks, Claire, and good morning to all of you on today's call. We appreciate you accommodating the early time this quarter as I'm currently calling from the UK, the reform returning to Asia for additional customer meetings after several international trips during Q1. I am pleased to report solid results for the first quarter with revenues of nearly $10 million and strong gross margin performance, driven by the favorable mix of hammer technology upgrades in the quarter.
Our results for the first quarter confirm that following our Q4 call in February, we arrived at an agreement with our largest customer regarding payment terms. This led to continued strength in the delivery and installation of hardware upgrades throughout Q1. So while our total balance of cash and investments at quarter end was just over $65 million.
As of today, our cash balance exceeds $75 million. We're also pleased to announce today a 25% increase in our total backlog since year-end, reflecting continued strong bookings for Harman technology upgrades. Total new orders for the first quarter exceeded $20 million and included HDD technology upgrade bookings from multiple customers, including the initial hardware upgrade orders placed by leading data storage companies.
Next, on our call today, I'm pleased to discuss the resolution of our joint development program for the three platform. Looking back the success of the platform's development and achieving qualification in 2023 was testament to the quality of engineering resources resident within Intevac and decisively demonstrated the Treos ability to deliver on multiple key performance metrics, which will enable Intevac to address very large market opportunities, achieving the successful co-location of the initial system.
By year end, it was a major milestone for Intel at the same time in our ongoing commercial negotiations with our JDA part of the year to date, we have continued to navigate the complexities of the display cover glass ecosystem for consumer electronics in evaluating our respective roles within a well-established supply chain. We and our partner have mutually determined that Intevac will now commence shipping Trio systems directly to the existing cover glass manufacturers.
It's our direct suppliers to the leading OEMs. And that is precisely what we've already done. The first three or system was delivered this month to an established cover best finisher for a leading smartphone OEM. We believe this supports our assertion over the past several earnings calls that we are seeing strong customer pull for the trial as soon as the system is fully installed, we will immediately begin the qualification process. Achieving customer qualification will trigger the formal purchase order.
Therefore, our expectation is that this will be the first train system to revenue in 2024, and that successful qualification with the customer will also lead to a follow-on order for multiple systems. As a reminder, we have the inventory on hand in order to deliver on multiple systems with a relatively short lead time. At the same time, our relationship with our JDA partner continues to be positive. We have mutually agreed that the characteristics of the existing supply chain for consumer devices dictates that we must sell directly.
And as a result, we have paused our commercial discussions. We are grateful for the partnership and everything achieved over the past 15 months, including the many new customer relationships developed as the industry continues to adopt more durable coatings, we believe we have future order opportunities with our JV with a partner beyond the recent customer shipment.
We're also running samples with multiple additional companies who are in various stages of evaluating the Trier. In total, we have engaged with several leading companies expressing demand for the trail office with our true growth opportunities now extending to several potential customers. We are stepping up our investment in the organization, especially in marketing and business development.
Recent new additions to the leadership team, including Fernando, joining us as VP, Business Development and Shannon Fogel, SVP of HR for the first three are shipping early this month and multiple evaluations underway. The morale and excitement among the Intevac team of exceptional employees is the strongest I've seen since joining the company. It is truly gratifying to see the Smiles and excitement as we officially launched initial Treo shipments.
Yes, another major milestone for our Company, which brings me to our outlook for 2024. We have now successfully resolved negotiations with our major partners in each of our primary end markets, which enables us to resume guidance and reiterate our prior expectations for full year revenues in the low [$50 million] range this incorporates our consistent expectation for two to three Treos systems to revenue this year, equating to potential revenues totaling over $10 million in the hard drive industry.
We are currently forecasting full year sales approaching $40 million. Not surprisingly, the majority of our HDD revenues this year up a hammer operates, and that was referenced earlier in 2024. We're now reporting an initial order for hammer of growth from an additional customer, which are leading data storage company industry.
News of improving fundamentals for the hard drive industry continues to build and proliferate data center spending strength is a highlight of many Q1 earnings calls and strong customer demand and strength in cloud CapEx, leading to certain supply challenges as well as price increases for several HTD. product categories. We continue to expect ammo technology upgrades to dominate our HDD business for the next few years.
This is because boosting areal density results and tremendous efficiencies for the data center transitioning to higher-capacity drives without adding this is very positive for our Grid business. And there is no doubt that Intevac has emerged as the enabling technology partner for the adoption of HA while improving HDD unit growth and capacity utilization also provides us with optimism for an eventual return to 200 Lean capacity additions for the foreseeable future.
Our HDD business will be strongly supported by a multi-year upgrade cycle. Recent results and strong order activity have demonstrated once again that we are a critical enabler of this transition and that all technology upgrade plans in the HDD industry are taking place on our flagship 200 Lean platform. Our critical role in the HDD industry provides significant visibility for continued solid base of business. And so pause our expectation for strong growth year in 2025, yes, which we currently expect meaningful incremental growth for our Trio platform.
Finally, protecting the balance sheet remains a key priority for the company. We ended 2023 with over $72 million of total cash and investments, and that balance has now strengthened to over $75 million. Our expectation is to exit 2024 in a similar range as a year-end 2023 by customers now paying to our agreed terms and so we do not expect to have any delayed payments.
And with that, I'll turn the call over to Kevin for his review of our results.

Kevin Soulsby

Thank you, Nigel. Turning to the first quarter results. First quarter revenues totaled $9.6 million and consisted of HDD upgrades, spares and service. Q1 gross margin was 43.7% in benefit benefited from favorable mix of upgrades during the quarter, Tier one operating expenses were $8.6 million, which exceeds our current run rate and included a small fixed asset write-off and higher than typical legal costs in addition to the seasonal increases in audit and payroll, GAAP net loss for Q1 was $1.6 million, or $0.06 per diluted share this includes a $2.4 million benefit receivable on our claim from the COVID era employee retention credit program, of which $1.5 million was recorded in other income and [$0.9 million] was allocated to Photonics and recorded income from discontinued operations. The non-GAAP net loss was $2.7 million, or $0.1 per diluted share. Total backlog increased to $53.1 million at quarter end, reflecting the $20.3 million of new orders booked in the quarter.
Turning to the balance sheet, we ended the quarter with cash and investments, including restricted cash of $65.5 million, equivalent to $2.47 per share based on $26.5 million shares at quarter end. As Nigel mentioned, our cash is rebounded to over $75 million following more significant collections of receivables and the largest customers quarter to date, total cash flow used by operations was $6.5 million during the quarter. Capital expenditures in Q1 were $0.6 million. Non-cash expenses from Q1 included $0.8 million for stock-based compensation and $0.6 million for depreciation and amortization, as well as the $0.5 million fixed asset write-off.
Now moving into Q2 guidance, we are projecting revenues to be in the range of $7.5 million to $8.5 million. We expect second quarter gross margins to be in the 34% to 37% range due to increased underabsorption and a less favorable mix of higher margin upgrades.
Q2 operating expenses are expected to be in the range of $8.3 billion to $8.5 billion, reflecting lower seasonal costs, but continued high level. We expect interest income of about $500,000 and GAAP tax expense of about $400,000 in the quarter. Most of the tax expense will be non-cash. We are projecting a net loss in the range of $0.20 to $0.22 per share based on $26.7 million shares outstanding for the full year. As Nigel mentioned, we expect total revenues in the low $50 million range. This includes Treos revenues potentially exceeding $10 million as well as HDD. sales consisting of upgrades, spares and service approaching $40 million. As a reminder, our 2023 revenues included one 200 Lean systems and one refurbished system, which we do not expect to repeat in 2024.
Given this revenue profile and expected mix, we anticipate gross margins for the year will be in the low 30s. This is lower than our earlier expectations in the high 30s, given the change in customer composition and the expected additional costs to qualify the Trio with both the cover glass finisher and the end customer OEM we expect ongoing operating expenses will decline to the low $8 million level beyond Q2, but still be higher than our post-restructuring budget due to the incremental investments we are making in business development, marketing and other areas in order to address a broader potential customer opportunity for the Trio. We expect both interest income and taxes to continue to be in the range of $400,000 to $500,000 per quarter. Finally, our expectation is that we will end 2024 with the similar balance of cash and investments as of year end 2023.
This completes the formal part of our presentation. Operator, we are ready for questions.

Question and Answer Session

Operator

Thank you. (Operator Instructions) Peter Wright, Intro Act.

Peter Wright

Great. Thank you for taking my question and congratulations on the Trio shipment.

Nigel Hunton

Thank you, Peter.

Peter Wright

Wonderful. My first question is on if I look into your R&D spend and specifically your focus on Ontario and what are the main operations there? Is it more development of the existing product with your large customer or is it is it more in expanding into new end markets and new applications? Or if you could give us some color on kind of your thoughts, thoughts there on the meaning of the Trio platform for investors going forward?

Nigel Hunton

Yes. Thank you for the questions. I think very clearly, the Trio platform has had significant investment, and we progress pretty effectively to qualification and great to see us putting the first system now into the field to be quite a lot of cost around supporting the field installation, developing that getting through qualification, but really beyond that as well.
Some of the customer feedback we've been getting is around how do we look at automation of an anti fingerprint spray coating on the end of the machine. So one of the things we've done is we've designed a capability that we put a high throughput machine into an existing facility, the consumer devices within that, there are some process steps that we want to be integrated into the machines that was on R&D work around integration of additional process steps.
We've also, as we've talked on prior calls, thought about it. This is a modular platform and one of the real excitement for me about how we've designed this and the way the design concept has this modularity capability enables us to add additional features. So for example, we can add additional features in future years around on implant, we can look at additional features around a cleaning step that enables the product in the future to actually be expanded into not just the automotive, but into advanced packaging, those are multi-years ahead.
That's why it's important for us to maintain this level of investment in R&D because we believe that the Trio platform has multiple opportunities going forward. And so hopefully, you'll see some of that investment in the current product, which would majority for this year. And then as we move into 2025 and beyond. We'll maintain that level of investment as we expand into other market applications. Hope that answers your question.

Peter Wright

That's, wonderful. And if you could help me understand in the conversations. I think that there is a slight pull in maybe of some expectations on Trio if it's north of [10], if I'm reading that right, maybe one incremental system from our prior expectation on number one, if you could clarify, is that right? And what is that? Is that just it operationally, you guys are ready for it? Or is there is a demand-driven pull-in of demand there.

Nigel Hunton

And we've always said this year would be two or three through revenues, and that's consistent with that number of around the $10 million. So there's this. We believe, again, as we've said, very strong and as well, this is Paul to get a machine into the field and running and actually going direct to the key finishes, I think is a key step forward. It does require the qualification, and we've been pretty open about that.
That machine will now start qualification in May. So it's going to be and the team will support that in terms of another pretty extensive team in Asia supporting that qualification. But from a from a pricing point of view and unit numbers, it's pretty consistent to the prior calls. It will be two to three systems in around $10 million.

Peter Wright

Fantastic. And very last question, and I'll go back into queue on the hard drive side, I have to think your customers need you potentially more than than you need them in this business supporting their upgrades. And how are conversations taking place with your customer base on on a year where we don't have any 200 Lean sales to continue to kind of support that infrastructure. How do your customers kind of continue to feel comfortable securing you enough to continue to be there for it?

Nigel Hunton

And I think we've said on prior calls as well, we believe this sort of level of hammer upgrades is going to be at this similar level for the next four to five years, which give us a nice base level for the business. And we have very, very strong partnerships. I mean, I mean, that's key. If you think of this, the hammer importance of the hammer success, I mean, what do you read in the press or you pick up some key underlying trends.
Mean how much technology enables a data center to take its existing capability out, replaced it with hammer that's boost capacity dramatically in the same footprint without building a new data center. It also gives them a step change in electricity and power consumption because the hammer upgrades and new systems give lower path. So it really is going to drive for the next couple of years, a investment in upgrades, which will ensure that all of the 200 lanes become hammer cable.
And that's the key focus, and it's about making sure with us support those customers as they grow and ramp the hammer demand. And if I look out beyond three to five years, I mean, you've got to believe very much as we've seen that the HDD industry requires and demands This drives. And therefore, the as we do hammer and as things grow, it's just going to have any, I think an increasingly scope and opportunity for the business.
And I think that will eventually lead to some 200 Lean orders. But I don't see that in the sort of near term horizon. But that for me it's about let's focus on the hardware upgrades, the strong margins, the consistent revenue throughout the next couple of years and have as a basis, we will drill on top of it.

Peter Wright

Thank you for taking my questions.

Nigel Hunton

Thank you, Peter.

Operator

Thank you. Mark Miller, The Benchmark Company.

Mark Miller

I'm just wanted in terms of the tool that shipped in April, do you expect the revenue recognition in the third quarter?

Nigel Hunton

Yes, maybe Kevin can add to this, but I'm clearly that is our first tool shipped that has to go through qualification with the revenue recognition with, I think the first step to make a special chemical company on the GAAP requirements utility earnings will have on the line that came around.

Kevin Soulsby

We want it to be accepted by the customer and fully signed off before we take revenue being the first time we shipped one of these of the metal that will be the case for the first couple of tools until we prove that the installation is this a perfunctory and then we can take revenue on shipment in the future.

Nigel Hunton

So I mean, clearly from my perspective, that installed units, the customer where it's going is excited about it wants to accelerate and do that as fast as we can. So I would like to hope that we can get that completed and the qualification done within the quarter, but certainly within 2024, that will absolutely be revenue.

Mark Miller

Based on your revenue guidance for this quarter and for the year, it looks like you're leaning towards maybe three to lend total share being recognized this year. Is that off base now?

Nigel Hunton

That is absolutely correct. We look into two to three tools and now be in the second half of the year. Yeah.

Mark Miller

You mentioned you were there were several multiple valves away for Trio. Any more color you can provide there in terms of timing or anything else?

Nigel Hunton

I mean, the key for me is it's I would say over the last quarter, we've shipped multiple samples out in the field. They've gone through initial evaluations, and that then leads to further meetings. So I think we'll have strong positive interactions on those coatings over the next couple of quarters. And I think they will start to deliver. I think we will get maybe additional at one of those two to three additional lanes, we'll be driving hard to complement a separate customer.

Mark Miller

Okay. Thank you very much.

Operator

Thank you. (Operator Instructions) Hendi Susanto, Gabelli Fund.

Hendi Susanto

Good morning, Nigel, Kathleen, let Claire and congratulation on all winning initial half of February. Great from a new major data storage company.

Nigel Hunton

Thank you, Edward. Yes.

Hendi Susanto

So Nigel, my first question with the new camera, great customers, I think they like behind, you're like leading first major customers. So how how we end physicians the time line like how quickly they can accelerate of, let's say they are there work on hammer that can open up more opportunity in the near term.

Nigel Hunton

Yes. And just to be clear, with the customers we have, as you know, we can't mention the names or talk about what their specific development plans are. And but again, for me, it's a fantastic achievement and it's a great step forward. And that really does give credibility to hammer in the market. We believe the first one, what will always take a bit of time it's going to go through the power of the company has got to evaluate it and see the benefits and then put that into their own strategy.
So we can't comment on what their strategy or rollout plans are. But the great news for us is that we have another customer evaluating it. And we don't comment whether that ahead or behind anyone else steps up to them to comment on it. But for me, it's rent. It's a fantastic opportunity for Intevac and it really does give a testament to our being the key driver and enabler of hammer in this market. And I think Hammer is going to drive and maintain the competitive nature of disk drives for that data centers, and it's a great position to be in. So now we're very excited.

Hendi Susanto

I see, yes, hub and then of a module that Triaz just some sales expectation for two or three tools. So we know that the first one will go toward qualification. What do the other like one to two additional systems Brazil?

Nigel Hunton

Yes, so I think as we've said on prior calls, we've made as a company, we have backed the Treo platform and we've made a significant invention in it's okay. And investment in inventory in parts and capability. So we have we've shipped one units. We have another shipment in final assembly as we speak, so we can very quickly put another unit into the market.
So therefore, having that inventory allows us to respond very quickly. And our initial focus is still around the consumer devices. And I sense that will be the focus for 2024. As we look beyond that, then we start looking at getting some evaluations in the automotive sector as well for the for our primary focus for this year, the primary focus for the tool that's gone, the primary focus for the additional tools which have the inventory. So we can respond very quickly and we'll be the consumer device market.

Hendi Susanto

Any update, whether it will go towards smartphones, wearables?

Nigel Hunton

at this I say it will be consumer devices.

Hendi Susanto

Okay.
Fair enough, Nigel. And then one question for Kevin. With regard to the payment terms with your major HDD customers, when did exactly it get resolved? And then you indicated the quarter to date to receive $10 million. How much more beyond that $10 million that in fact, has not yet received.

Nigel Hunton

If Kevin about getting back in it, I would say that there's anything to add to Kevin. We received the agreement in the quarter and that is the amount of clarity we're going to give and we have a great partner and it's we've resolved the differences around that. We now have a great position with them from cash, but it will resolve within the quarter. And that's really the sort of guidance you're giving about the timing of that care payments that you want to add to that, Kevin,

Kevin Soulsby

will be caught up where we are now. Either our receivables are better terms with them currently.

Hendi Susanto

And then any remaining payment associated with the canceled orders, can you still have all that inventory.

Kevin Soulsby

It's being it's being worked with C-BASS, but there's been no progress on that.

Nigel Hunton

And just to add to that one, we don't talk about customer names. So apologies, I mentioned that one and three, we have no exposure to the company. We've had many, many times so that the customer gave a cash deposit that covers all the inventory. We had working very diligently with them. We've made some great progress this quarter on identifying what level of those parts can be moved to either to them or elsewhere and where there is no exposure for Interbank and the cash is there to cover all our inventory, and we will get that resolved over time and term.
Clearly, everyone has different priorities if element a key priority is ramping and making sure the hammer gets delivered on time. And we've hit the on-time delivery, which we're doing. And so over time, that will get resolved pretty clearly is not critical because that could we have the cash covering the inventory.

Hendi Susanto

I think you ended up at the insights on the income from discontinued operations in the income statement

Kevin Soulsby

that was in that we had a result of the employee retention credit claim that we filed in the quarter.
Part of that was related to Photonics wages in 2021. So that piece of it was allocated to discontinued operations.

Hendi Susanto

Okay.
Yes, I think thank you so much for your time and for taking my questions.
Nigel at Kevin, you're welcome.

Nigel Hunton

Thank you.
Always for your questions and we appreciate your support for the company. So thank you, Henry.

Operator

Thank you. The last question we have is a follow-up from Peter Wright.

Peter Wright

Great. Thank you for taking my follow-ups. If I if I if I look to '25 and I just focus on the Trio part of your business, if I could ask a three-part question and help me with these assumptions. So I understand that you there's some delay in kind of the revenue recognition from you from the STACK in '24 into the back half, just as you're recognizing your first tool, but on a run rate basis, it would suggest that you could be at about six tools in '25 for looking at potentially three three systems in the second half of '24. Is that a good assumption, you know on it? And then the second part to that, is there any capacity constraints to be able to deliver on that or kind of what is your capacity capability but developing Treos systems?
And then the third part of that question is, is there other sources of revenue other than equipment revenue that could hit the Trio part of the model?

Nigel Hunton

Okay, great questions, Peter, I appreciate that we're not giving guidance for 2025 on the number of carriers. But I would assume we're going to be if we this product is a game changing technology, we have to get that momentum. We have to get that product qualified in 2024. And it is great to have a product now in the market starting that qualification. It does go through and we get the two to three this year.
I would like to believe we will be at six in 2025, if not higher, but we're not going to give an actual number against that. I mean it for me, we've got to start 2025 being a substantial growth year and that we've talked about with a hammer being a baseload. It really is all around the Trio from a capacity point of view, we are absolutely investing in the capability to manufacture the Trio platform, not just in Santa Clara and the U.S. within our Singapore portfolio.
Facility in Asia. Asia is going to be key to the strategy. And as John Dickinson is building in his operational plant, we're building a base capacity around our facilities is building and looking at a contract manufacturing model, which help will also help within the cash flow to expand beyond that.
And as we look at how we actually build a system from a modularity, it gives us a unique way of actually building capacity across multiple contract manufacturers. So I think from a capacity point of view, and it was a key question from some of our potential customers is we have an ability to ramp very quickly.
We have an ability to expand our capability into both Singapore contract manufacturers. So for us, we've got really no constraints moving forward, and we'll invest and build this business to meet the demands and requires So hopefully that answers the first two questions. If I look at the business model.
One of the opportunities we have within the system is an ability to start looking at the service model. The machine runs very effectively. The machine has consumable parts such as the silicon sources. It has parts that need sort of maintenance as you think about running the business and running this tool very effectively and efficiently. And there are parts that machine that need maintenance every so often a couple of weeks, maybe a month was four to six weeks.
So therefore, there's an opportunity for us to actually deliver from this platform. Some level of service revenue and consumable business. It's early days yet. And the key priority is to get the first tool in the field, learn from that, understand the service and consume belief and then put in place an efficient organizational model that helps us build and capture some of that ongoing revenue because it will be an ongoing source of revenue for the Company.
So if I compare that to going back 20 years on the 200 Lean, that really wasn't part of the strategy, then it was just a pure play equipment sale I think we've got an opportunity here to actually start building out a level of service and parts release.
So hopefully, I answered your question that we are looking to actually build it beyond just equipment, we are building capacity and capability, and we do want to get a run rate ahead of 2024's numbers, but

Hendi Susanto

That's some amazing one one note I didn't make is congratulations on being such a good steward of capital being cash neutral and a year of bringing such a significant platform to market is quite a quite a success. So congratulations on that. Very last question. If I look at '25 and I just look at your Trio business, do you think that that business on a stand-alone basis has the possibility to be cash generating?

Nigel Hunton

I'm the chemicals that is I think that the business has to be absolutely cash-generating. And we've talked for many times this business has to build towards profitability is not just about protecting the cash. The cash has been fundamental and a key focus for me and to retain and actually protect that core cash in the Company. But we also have to think about how do we actually get the business towards back towards profitability, how do we get this business, cash generation and that ramp.
We're very excited about the future and the opportunities ahead of us there. But Kevin, you want to add to that.

Kevin Soulsby

I agree. We were to assume those will run the products should start from Blue generating cash as we go through 2025.

Hendi Susanto

Thank you, Kim.

Operator

Thank you so much. Ladies and gentlemen, there are no further questions at this time. I will now turn the call back over to Nigel for his closing remarks. Please go ahead, sir.

Nigel Hunton

Thank you. And again, I really appreciate the flexibility of everyone to allow me to pull this call forward. It's actually a very sensible out here in the UK. It's been in the afternoon, but for many people, it's been pulled forward to very earlier in California for example, but I appreciate that and especially appreciate all the questions we get. And certainly they do help, and hopefully everyone understands how we're taking this company forward.
I do want to wish to thank all of our employees, the counterparts with that there, our industry partners for all the hard work and dedication. This has been a very, very long, hard work over the last couple of years is not just one quarter, but and it delivered a strong quarter in Q1.
We're now going to really flip and really focus on growth and is excited to focus on the customer qualification, Vitria and of course, as always about the bank, our investors for their ongoing support and backing. And as always, in any way, could we and declare directly. I look forward to updating you on Trio progress on our Q2 call. So thanks again, and that closes the call.

Operator

Thank you, sir. That does conclude today's conference thank you for joining us. You may now disconnect your lines.