Super Micro Computer (SMCI) Q2 FY2026 Earnings Call Transcript

Date: February 3, 2026 | Source: Investing.com / Super Micro IR

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Operator: Thank you for standing by. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Super Micro Computer, Inc. Q2 fiscal year 26 financial results call. With us today are Charles Liang, Founder, President, and Chief Executive Officer; David Weigand, CFO; and Michael Sager, Senior Vice President of Corporate Development. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. Over to you, Michael.

Michael Sager (Senior Vice President, Corporate Development, Super Micro Computer): Thank you. Good afternoon, and thank you for attending Super Micro's call to discuss financial results for the second quarter and full year fiscal 2026, which ended December 31, 2025. With me today, as you know, is Charles Liang, Founder, Chairman, Chief Executive Officer, and David Weigand, Chief Financial Officer. By now, you should have received a copy of the press release from the company that was distributed at the close of regular trading and is available on the company's website. As a reminder, during today's call, the company will refer to a presentation that is available to participants in the IR section of the company's website under Events and Presentations tab. We've also published management's scripted commentary on our website.

Please note that some of the information you'll hear during the discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income expenses, taxes, capital allocation, and future business outlook, including guidance for the third quarter of fiscal 2026 and full fiscal year 2026. You can learn more about these risks and uncertainties in the press release we issued earlier this afternoon, our most recent 10-K filing, fiscal 2025, and other SEC filings. We assume no obligation to update any forward-looking statements. Most of today's presentation refers to non-GAAP financial results and business outlook. For an explanation of our non-GAAP financial measures, please refer to the accompanying presentation or to our press release published earlier today. At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts. Our third quarter fiscal 2026 quiet period ends at the close of business Friday, March 13, 2026, and for now, I will turn the call over to Charles.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Thank you, Michael, and thank you all for joining today's call. Super Micro delivered a strong fiscal Q2 as AI infrastructure demand continues to accelerate across every major customer segment. For the quarter, we achieved a record $12.68 billion in revenue, including $1.5 billion for the former type of account last quarter, representing 123% year-over-year growth. This strong performance reflects the sustained momentum of our AI solutions and large-scale systems as customers build out next-generation AI factories. Super Micro has been developing some of the largest and most complex AI superclusters ever built, highlighting our unmatched capability in large-scale manufacturing, on-site deployment, and integration.

Most notably, our data center building block solution, or DCBBS, has started to gain key customer preference as they look for quicker time to deployment, or TTD, and quicker time to online, or TTO. These pre-designed, pre-validated infrastructure building blocks not only speed up customers' data center builds, but they also save cost with better workload optimization and with minimal power and water consumption. DCBBS once again recently helped us gain market share in large, medium, and small AI infrastructure deployments. With GP300, B200, B300, and MI350 platforms, we are also preparing for the upcoming NVIDIA Vera Rubin and AMD Helios solutions for the second half of this year. While we continuously grow AI factory build-outs, customer and product mix are shifting more to large model builders who have pricing leverage, pressuring gross margin.

In Q2, especially, the expedited transportation costs, ongoing component shortages, and their volatile pricing, among which tariffs, have impacted our short-term gross margin. As such, I would like to take a moment to highlight our key strategies to address this and efficiently strengthen our long-term profitability. First and foremost, Super Micro undergoes its fourth phase of product evolution with DCBBS as its key focus. As data center deployments scale, DCBBS is and will become an increasingly important part of our value. In the first half of fiscal year 2026, DCBBS solutions accounted for 4% of our profit. We expect this part of our profit to grow and meaningfully contribute to the second half of fiscal 2026, and we see that growth accelerate to at least double this contribution by the end of calendar 2026.

With compressed GPU and CPU life cycles, DCBBS becomes critical to the value of our server and storage products by enhancing data center infrastructure, time to delivery and time to online, reducing power and water consumption, and cost-efficiently simplifying data center management and maintenance. In just about one year, our DCBBS product lines grew to more than 10 key subsystems, including CDU, L2A heat exchanger, chilled doors, power cells, battery backup, water tower, dry towers, high-speed switching, data center management software and service. We are expanding this product line to include more new categories, such as transformer, next-generation power generators, devices for energy backup, and grid power replacement, further strengthening customer value, accelerating deployment, and supporting long-term profit margin improvement for Super Micro.

Other than developing DCBBS for better value and profitability, we are also sharpening our focus on traditional enterprise, cloud, and edge IoT customers to further diversify revenue with higher margin. In addition, we have introduced our X14 and H14 series solutions featuring pre-configured systems that ship directly from our factory, enabling rapid deployment, optimized for specific AI, cloud, storage, and telco edge workloads. These servers are ready to power up immediately and reinforce Super Micro's core value, time-to-market advantage for enterprise customers, channel partners, and SMB end users. We are also driving meaningful cost improvement through enhanced design for manufacturing, or DFM, and quality premium engineering. We have introduced more modularized subsystems and expanded automation across our facilities. These efforts increase yield rate, reduce rework, and enable us to bring new platforms to volume production even faster and with higher quality.

While executing these DFM initiatives, we are also continuously expanding our global manufacturing footprint aggressively and strategically. Our Silicon Valley facility remains the cornerstone of our U.S. operation, delivering faster time to market, strong security, and higher-quality integration. Internationally, new production sites in Taiwan, Malaysia, and the Netherlands, and soon the Middle East, are ramping to increase capacity, support regional sovereign AI requirements, and most importantly, optimize our overall cost structure. In summary, as the only company with more than 32 years of robust server and storage focus, Super Micro is quickly evolving into a leading AI platform and data center infrastructure total solution provider. Strong Q2 performance, rapid expansion of the DCBBS product line, deeper and more customer engagement, and global capacity investment position us well for long-term growth. While near-term margin pressure comes from customer mix, tariffs, international facility expansion, and key component shortages like memory and storage, our focus on the enterprise business, design-for-manufacturing improvement, and the faster-growing DCBBS portfolio all help us gain new customers and support higher growth and net margin going forward. Lastly, based on our broad customer backorder forecast and commitments, we believe demand for AI and IT infrastructure remains unprecedentedly strong. Our DCBBS solution is exactly what customers need to build out their AI and cloud much faster, greener, and at lower total cost. With that in mind, I'm confident to guide at least $12.3 billion for Q3 and up our full-year revenue guidance back to at least $40 billion. I look forward to sharing our progress with you next quarter. Thank you. Now I will turn it over to Dave.

David Weigand (Chief Financial Officer, Super Micro Computer): Thank you, Charles. We achieved record Q2 fiscal year 2026 revenue of $12.7 billion, up 123% year-over-year, and up 153% quarter-over-quarter, compared to our guidance of $10 billion-$11 billion. Q2 revenue included approximately $1.5 billion in delayed Q1 shipments due to customer readiness. Growth was driven this quarter by the rapid ramp and deployment of our rack-scale AI solutions. Despite supply chain challenges in the industry, our global manufacturing team executed well in delivering record revenue. Order strength remains strong from global large data center and enterprise customers. AI GPU platforms, which represent over 90% of Q2 revenue, continue to be the key growth driver.

During Q2, the enterprise channel revenue segment totaled $2 billion, representing about 16% of revenue versus 31% in the prior quarter. That's up 42% year-over-year and up 29% quarter-over-quarter. The OEM appliance and large data center segment revenue was $10.7 billion, representing approximately 84% of Q2 revenue versus 68% in the last quarter. This was up 151% year-over-year and up 210% quarter-over-quarter. For Q2 FY2026, one large data center customer represented approximately 63% of total revenue. By geography, the U.S. represented 86% of Q2 revenue, Asia 9%, Europe 3%, and the rest of the world 2%. On a quarter-over-quarter basis, U.S. revenue increased 496%, Asia decreased 49%, Europe decreased 51%, and the rest of the world increased 53%.

The Q2 non-GAAP gross margin was 6.4% versus 9.5% in Q1. Gross margins were impacted by customer and product mix, as well as higher freight, production, and expedite costs as we began to ship new platforms on a large scale. We had significant operating leverage during the quarter, with total non-GAAP operating expenses representing 1.9% of revenue versus 4.1% last quarter. Q2 GAAP operating expenses were $324 million, up 14% quarter-over-quarter and up 8% year-over-year. On a non-GAAP basis, operating expenses were $241 million, which was up 18% quarter-over-quarter and up 6% year-over-year. Operating expenses were up quarter-over-quarter, largely due to higher sales expenses. Non-GAAP operating margin for Q2 was 4.5% compared to 5.4% in Q1.

Other income and expense for Q2 totaled a net income of $26 million, reflecting $51 million in interest income on higher cash balances, partially offset by $25 million in interest expense, primarily related to our convertible notes. The tax provision for Q2 was $99 million on a GAAP basis and $122 million on a non-GAAP basis, resulting in a GAAP tax rate of 19.8% and a non-GAAP tax rate of 20.6%. Q2 GAAP EPS was $0.60, compared to guidance of $0.37-$0.45, and non-GAAP diluted EPS was $0.69 versus guidance of $0.46-$0.54, due to higher revenue and operating leverage. The GAAP fully diluted share count increased sequentially from 663 million in Q1 to 673 million in Q2, and the non-GAAP share count increased from 677 million to 688 million over the same period. (I do want to clarify one thing in my narrative regarding the fully diluted share count: the GAAP fully diluted share count increased sequentially from 663 to 694 million shares, and the non-GAAP share count increased from 677 million to 709 million.)

Cash flow used in operations for Q2 was $24 million, compared to $918 million used in the prior quarter. On a quarter-over-quarter basis, Q2 operating cash flow reflected higher net income, offset by higher accounts receivable and inventory levels, and aided by higher accounts payable. Q2 closing inventory was $10.6 billion, up from $5.7 billion in Q1, as we prepared for continuing strength in Q3 shipments. CapEx for Q2 totaled $21 million, resulting in negative free cash flow of $45 million for the quarter. At quarter end, our cash position totaled $4.1 billion, while bank and convertible note debt was $4.9 billion, resulting in a net debt position of $787 million, compared to a net debt position of $579 million in the prior quarter.

Turning to the balance sheet and working capital metrics, the cash conversion cycle significantly improved from 123 days in Q1 to 54 days in Q2. Days of inventory decreased by 42 days to 63 days, versus 105 days in the prior quarter. Day sales outstanding increased by 6 days to 49 days, versus 43 days in Q1, while days payables outstanding increased by 32 days to 58 days, versus 26 days in Q1. Turning to the outlook for Q3 FY2026, we expect net sales to be at least $12.3 billion. GAAP diluted net income per share of at least $0.52 and non-GAAP diluted net income per share of at least $0.60. We expect gross margins to be up 30 basis points relative to Q2 FY2026 levels. GAAP operating expenses are expected to be around $354 million, which include approximately $74 million in stock-based compensation expenses that are excluded from non-GAAP operating expenses. We expect other income and expenses, including interest expense, to result in a net expense of approximately $22 million. The company's projections for Q3 FY2026 GAAP and non-GAAP diluted net income per common share assume a tax rate of 19.6%, a non-GAAP tax rate of 20.2%, and a fully diluted share count of 684 million for GAAP and 699 million shares for non-GAAP. Capital expenditures for Q3 are expected to be in the range of $70 million-$90 million. For full fiscal year 2026, we expect at least $40 billion in net sales. Michael, we're now ready for Q&A.

Michael Sager (Senior Vice President, Corporate Development, Super Micro Computer): Great. Matthew, can you roll the queue?

Questions & Answers

Ananda Baruah (Loop Capital): Hey, yeah, thanks, guys. Good afternoon. Thanks for taking the question. And, yeah, congrats on the solid results here relative to the guide. I just want to ask about margins, and I have a few follow-up questions I want to ask you here, but they're all margin related. I guess the first is with regard to, you mentioned, I think 90 days ago, that December quarter you expected to be the sort of low watermark quarter in gross margin, and you're guiding for quarter-over-quarter improvement for the March quarter. Do you still think that things progress expansively from here, Charles? You made some comments around customer mix. It's been a headwind. Do you think it continues to improve? And I have two quick follow-ups, just margin related after that. Thanks.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, thank you for the question. Yes, the customer mix, we are improving quarter-over-quarter. Now we have many more large-scale customers, I would like to say. So that will improve our profitability. The other factor is last quarter, I mean, the December quarter, GB300 reentry was a little bit new to us, so there were lots of expedite transportation costs. And now, the product is getting mature, so those expedite transportation costs will be dramatically reduced. And tariff impact is also improving. And so overall, especially with DCBBS also increasing for our gross margin, I believe our gross margin will start to improve quarter-over-quarter. Yes, exactly. Economies of scale will help us to improve our cost, and that will impact our gross margin and especially our operating margin. Again, DCBBS, proprietary Super Micro for more business in service, in software, in overall infrastructure service to customers. So all those factors are positive to our margin improvement.

Ananda Baruah (Loop Capital): ... Charles, that's great context. Really appreciate it. And actually, Charles, one of my two clarifications here is from something you said in your prepared remarks. You said higher net margin, and so I guess you just clarified you expect gross margin to go up. Maybe this is a Charles/Dave question. Dave, you mentioned OpEx leverage. The OpEx as a percentage of sales was really attractive this quarter, like 1.5%, less than 2%. But should we expect — I think it's the second quarter in a row you drove OpEx leverage — but now you have this really attractive, the most attractive OpEx as a percentage of revenue in a while. So, are you — is the company entering a period of not only gross margin expansion, but OpEx dollar leverage as well, structurally? And that's it for me, guys. Thanks.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yes, exactly. I mean, economies of scale will help us to improve our cost, right? So that will impact our gross margin and especially our operating margin. Again, DCBBS, proprietary Super Micro for more business in service, in software, in overall infrastructure service to customers. So all those factors are positive to our margin improvement.

Samik Chatterjee (J.P. Morgan): Hi, this is MP on behalf of Samik Chatterjee. I just wanted to double click on your full-year guidance. You said $40 billion for FY 2026. If I back into the implied 4Q number, that implies significant quarter-over-quarter moderation. So is that just conservatism being embedded into the full-year outlook? Or do you see definite indications from your order trends that 4Q will imply sequential moderation? And I have a follow-up as well.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, I believe we say minimum $40 billion is a relatively conservative number. So, our business indeed will continue to grow, especially our DCBBS, which attracts a lot of customers who want to build a data center quicker, with less power consumption, less cost, and also more reliable and easy for management. So we are getting more and more customers coming to us. As you know, DCBBS is still a new product line to us. We officially introduced that product about six months ago. So the first two quarters, the September quarter plus December quarter, indeed, are our first two quarters. The revenues are still relatively small, but because the profit is much better, overall it contributed about 4% to our overall profit in the last six months. And looking forward, it will continue to grow very quickly. So we are very happy to see more and more customers like DCBBS to speed up their data center build-out, with easier management and maintenance, and our profit will continue to grow because of DCBBS especially.

Asiya Merchant (Citi): Great. Thank you for taking my question, and good results here relative to the guide. I just had two quick ones. One, just, you know, there's a lot of discussion about component availability and supply constraints. If you could just talk to us about your guide, and relative to that, is that minimum $40 billion guide a constraining number, given the supply constraints? In other words, if supply wasn't an issue, could that number be greater? And then just on customer concentration, I think the commentary suggested that some of the geos did decline on a year-on-year basis, as well as on a quarter-on-quarter basis. So again, relative to the guide, how should we think about the ramp of DCBBS across those various geographies for the back half of this fiscal year and through calendar 2026?

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, you are right. We already considered component shortage as continuing to grow. So with that, that's why we try to be conservative and commit to $40 billion. Even if the shortage situation improves quickly, for sure our revenue will be more than that. As to DCBBS, it's global — almost every region, customers like DCBBS, because it helps them build a data center easier. It's kind of like a one-stop shop. We provide not just computing nodes, storage nodes, switching nodes, and liquid-cooling subsystems, including battery backup, including some energy backup. So it kind of makes customers' jobs to build a data center much easier. So the impact is global. We see globally more and more customers like our DCBBS solution, and we are aggressively preparing to grow the support.

Catherine Murphy (Goldman Sachs): Thank you very much. To ask another question on the new DCBBS disclosure, encouraging to hear that growing to double-digit share of profit by the end of calendar 2026. Can you talk about the investments that you need to make here to expand the capabilities? I know, Charles, you mentioned some in the prepared remarks, as well as your go-to-market offering to have this increased penetration of DCBBS. And then I have a quick follow-up as well.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, we indeed started to develop our DCBBS pretty much about 12 months ago. So we already are consistently investing in that area. And so far we have about 10 items, including a CDU, including a chilled door, including a power shelf, battery backup, water tower, management software. So we have about 10 items available now, and we will introduce another 3-5 items in the next few months or next few quarters. So the data center building block solution will be getting more complete, and that's why it will be easier for customers to build a data center. It's not just easier and quicker to build their data center, but also make their data center modularized, so it's easier for management, easier for maintenance, and easier for scale-out. Gross margin and net margin are much higher for DCBBS because it's so unique. We are the first company to build pre-designed, pre-validated, pre-optimized data center solutions for customers. So the margin is much better, for sure, more than 20%. And we are happy to make the product line really strong, really complete as soon as possible.

Ruplu Bhattacharya (Bank of America): Hi, thanks for taking my questions. For the first one, I'll ask a follow-up on margins. David, you mentioned expedite costs, component cost increases, shortages, and I think last quarter you talked about increased investment in engineering support and services to help new customers. Can you help us size all of these things? How much did they impact gross margins in the December quarter, and what's baked into guidance as an impact from these things in the March quarter? And I have a follow-up.

David Weigand (Chief Financial Officer, Super Micro Computer): Yeah, we don't break those things out, Ruplu, but we can just say that the costs were up in each of those areas. So in other words, higher transportation and expedite in order to move things around and get things delivered to the customer faster. But I can tell you that over the past year, we've had increases as we have ramped up the new technologies and prepared for mass shipments. The key component shortage this time is the main reason, because AI and large data center demand are growing. The shortage is because demand is getting so strong, not because production capacity is reduced. So that is a good sign. The cost will be an impact, but it won't hurt us too much.

Nehal Chokshi (Northland): Yeah, thank you. Congrats on the strong results and guidance. A little bit of a different question here. So look, Super Micro brought DLC to the market one generation faster than when it became part of NVIDIA reference architecture. Now, apparently, Super Micro has brought to the market one generation faster dry cooling towers, which is related to the higher inlet temperatures as part of reference design. My question is, do you expect Super Micro to continue to bring to the market one generation faster the power efficiency advantages before NVIDIA makes it part of their reference architecture? Is this going to be part of Super Micro's branding?

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, as you know, NVIDIA is a very strong company, and we work with them very closely. However, because of our strong engineering background and our big engineering team, we are able to make our total solution one generation or six months earlier than others. Now, and in the future, I believe we'll still be able to bring a total solution to market earlier than others, especially helping customers build a data center, build their cloud, AI cloud, time to online quicker than others. If not six months earlier, at least three months or four months earlier, and that's still a big help. So I'm very confident that our future growth should still be very strong. Because our foundation is getting much stronger than ever before, especially our kind of total solution — data center building block total solution is strong. So we are gaining broadly good customers. So more and more large customers are working with us, and that's a very exciting condition.

Quinn Bolton (Needham): Hey, guys. Let me add a congratulations on the nice outlook. I just heard, David, you had a 63% customer in the December quarter. As you look at sort of the second half of fiscal 2026, do you expect revenue to diversify significantly? Or do you think that that large customer continues to be pretty concentrated in the March and the June quarters? And then I've got a follow-up.

Charles Liang (Founder, President, and CEO, Super Micro Computer): It's sometimes not easy to predict, because customers sometimes shift their schedule of pulling or pushing out. But overall, we are very happy that now we have many more large-scale customers. The customer base is more diversified, and overall revenue will grow quickly. And at the same time, DCBBS and software grow our value. So overall, we are on a very healthy track now. Yes, we have a lot of highly interested customers for the Vera Rubin and Helios platforms; some already engaged, and we hope we can deliver as soon as possible. But it depends on our partner — depends on when their Vera Rubin or AMD solution will be ready. So we are working very closely with them. Once they are available, we like to deliver to customers quickly. And yes, today we already have some good commitments from customers.

Jon Tanwanteng (CJS Securities): Hi, thank you for taking my questions, and congrats on a nice quarter and outlook there. I just wanted to ask a little bit more about the big versus smaller customer mix that you expect in the future and the pipeline that you see. Are you expecting smaller customers to become a greater percentage of sales, or is it the opposite? And the reason I ask is because these bigger customers seem to have that pricing leverage you mentioned. If you have any color there, that would be helpful.

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, thank you for the question. Yes, we understand we need more customers, especially a more diversified customer base, enterprise. So we are very aggressively growing enterprise mid-size or even enterprise customers well. So our customer diversity is a very important direction for us now. So I guess we will grow both large customers and lots of high-number enterprise accounts. And that's why I say NVIDIA provides a very good solution, and based on that we optimize the whole data center building block solution for our customers, and aim to help them build a data center quicker and more reliably, easier for management, and lower their costs, including energy consumption, including energy backup, and maybe too early to say, including energy grid power replacement. So we have a complete plan for the whole solution.

Mark Newman (Bernstein): Hi. Yes, Mark Newman. Thanks for taking my question and congrats on a great quarter and great outlook. Just curious, if you just take a step back, what's changed? You've got a big step up here in sales, gross margins down quite a lot, but you're guiding forward for solid sales to continue. So is this just a reflection of a tougher pricing environment and Super Micro having to react to tougher pricing and thus winning back more share? Or is this just catching up to the orders you mentioned in the previous couple quarters that got pushed out? And accordingly, for me, how do we think about gross margins longer term? Is this range here to stay, or are we looking at getting back to the high single digit, low double digit range gross margin like you were before?

Charles Liang (Founder, President, and CEO, Super Micro Computer): Yeah, thank you. As an engineering company, we for sure have some choice. We can continue to grow large accounts aggressively or spend more effort to develop technology, good products, and grow more enterprise accounts. So we are doing both ways, basically. And the gross margin, net margin ratio, we are expecting to grow to double digits as soon as possible.

David Weigand (Chief Financial Officer, Super Micro Computer): Sure. We think that we've established ourselves with a number of deployments that we've made as being really the premier provider of the most current technologies that are available on the market. We think with those strong installations, we've broadened our reach into the market. So we think that we're trying to target, as Charles mentioned, both large-scale and smaller-scale customers and mid-tier customers. But we want to serve all of our customer bases that are out there and that are attracted to our products, and bring them the very best technologies. We think ultimately that drives the margins.

Brandon Nispel (KeyCorp): Guys, just I think a couple of quick clarification questions. One for David. David, you raised some new capital this quarter. Maybe just help us understand how you're thinking about working capital for the rest of this year. And then other income came in about $50 million above your guide. Really, what drove that? And then just one quick follow-up question.

David Weigand (Chief Financial Officer, Super Micro Computer): Sure. The other income was higher interest income that we had because our cash reserves had grown, and so we were earning good interest income. However, that was quickly taken up by the fact that, as I mentioned last quarter, we had well in excess of $13 billion of orders for delivery. And so we immediately had to use that — that's why our accounts receivable and inventory went up — and so we took in not only two different credit facilities of $2 billion and $1.8 billion, we also set up an accounts receivable factoring facility. So we have access to over $5 billion of additional capital. And if we continue to have growth, then we'll have access to additional capital in the marketplace. But right now, we think that for the current outlook, we have adequate capital to meet our needs. To the first question on the factoring/securitization facility, we did not use it during the December quarter, but we have subsequently. And to your second question on the 63% customer — Super Micro does most of its business with repeat customers, so I'll just leave it at that. We've also added a lot of new logos at the same time.

Michael Sager (Senior Vice President, Corporate Development, Super Micro Computer): All right, thank you everyone for joining. Just want to inform you that we had heard there were some technical difficulties with our webcast provider. A replay will be provided after the call, so you can catch up on that. Thank you for joining today.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect.