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Financial Services Innovation Lab, Georgia Tech 19

RAIL

Q4

Matt Brooklier:

Charles F. Avery:

Okay, so – it’s I guess a follow-up on that. Where are we from the staffing perspective and then it sounds like we’re going to see some startup costs in the first half of 2014, but may be not to the same degree that we saw in the second half of 2013, is that a fair way of thinking about it?

We haven’t split those two pieces out we’ve kept them together, but again we do see those decreasing and with the impairment at Danville.

NVDA

Q2

Toshiya Hari

Jen-Hsun Huang

Hi. Thank you for taking my questions and congrats on a very strong quarter. Your Q3 revenue guide implies further acceleration on a year-over-year basis. Are there one or two end markets where you expect outsized growth, or should we expect growth in the quarter to be broad-based?

Yeah, Toshiya. I appreciate it. We're experiencing growth in all of our businesses. Our strategy of focusing on deep learning, self-driving cars, gaming and virtual reality, these are markets where GPU makes a very significant difference, is really paying off. And I think this quarter is really the first quarter where we saw growth across every single one of our businesses. And my expectation is that we're going to see growth across all of our businesses next quarter as well. But it's driven by the focus on these key markets, and away from traditional commodity components businesses. I think the one particular dynamic sticks out, and it's a very significant growth driver of where we have an extraordinary position in, and it's deep learning. Deep learning, you may have heard, is a new computing approach. It's a new computing model, and requires a new computing architecture. And this is where the parallel approach of GPUs is perfectly suited. And five years ago, we started to invest in deep learning quite substantially. And we made fundamental changes and enhancements for deep learning across our entire stack of technology, from the GPU architecture to the GPU design to the systems that GPUs connect into; for example NVLink to other system software that has been designed for it, like cuDNN and DIGITS, to all of the deep learning experts that we have now in our company. The last five years, we've quietly invested in deep learning because we believe that the future of deep learning is so impactful to the entire software industry, the entire computer industry that we, if you will, pushed it all in. And now we find ourselves at the epicenter of this very important dynamic, and it is probably – if there is one particular growth factor that is of great significance, it would be deep learning.

MPC

Q3

Chi Chow

Gary R. Heminger

Okay.

But certainly would be the long-term plan, which it would be very positive for the Canadian producers, it'd be very positive for the midstream players, and also for all of the Eastern Gulf refiners to be able to have that crude source, and then some to even be able to export if they wished.

BKYI

Q3

Brian Kinstlinger

Mike DePasquale

Have you come up with a price for what that will be shipped for, what -- and what kind of profits you make on that?

Well, we can talk about MSRP. We have three versions of the bicycle lock. There's a Bluetooth variation and a fingerprint version and then a combination of both Bluetooth and fingerprint. So the Bluetooth and fingerprint only versions will, MSRP will retail out at 59.99, the combination lock which you can open with your phone or with your finger will retail out at 69.99.

RAIL

Q4

Justin Long:

Charles F. Avery:

Thanks, Ted. That’s helpful. And – in terms of the increase for Shoals, what do they look like as it relates to size? Are you typically seeing increase in the hundreds of units or are they smaller than that?

And just Justin, there is just one thing to elaborate a little more, I mean that car types are going into Shoals are different than our traditional coal car types which we had been ordered in about thousands. So, the expectation is the order lots are probably on average smaller than what we would have experienced in the past.

BGS

Q2

Andrew Lazar

David Wenner

Okay. If we take -- we think about the second half and your discussion around more judicial use of promotions. You also start to lap when pricing went negative in the year ago period. Would you expect a change in pricing in the back half to be roughly stable, instead of kind of down as it has been in the last couple of quarters?

That would be a great outcome. I think that we should -- we hope to get there very quickly. The only caveat being the mix of customers changing and -- but that's a fairly gradual change, so I wouldn't say that that's a big factor.

BGFV

Q2

David G. Magee

Barry D. Emerson

Are you getting a lot of requests right now from consumers that wish to use that channel with you guys?

And David, I would say that one advantage we have, we think, in our court, is our distribution facility. I mean, today, we're picking eaches from our distribution facility and shipping those to our stores, and so, we're -- this is kind of -- core competence of ours is picking eaches and we anticipate fulfilling from our distribution center, and hopefully, that helps us as we bring this new program up.

SANM

Q4

Bob Eulau

Perfect. And then lastly, congratulations on finally selling some of the real estate this quarter. After this $25 million to $30 million sale, how much real estate do you have left for sale?

There is probably another somewhere between $50 million and $100 million that’s still available for sale. And you are right, 2012 was a tough year on real estate sales, but the prior two years we’d actually sold $25 million, $30 million as well.

BLDR

Q2

Jay McCanless

Chad Crow

Thank you. And then the other question I have is, we've had two public builders now announced that they're going to start potentially building more homes for the single family for rent operators. And just wondering if the if this does catch fire and become a trend and the built, the big builders are building even more houses than they are now. How do you guys feel about your capacity? Would you need to make some meaningful investments if we were to see the big guys take even more share than they already have? Or do you feel like you can flex up without a lot of expenditures?

I think as far as the structural capacity is there, we would probably have to bring on some additional ship sin some of the points, if it really took off. I wouldn't see a large CapEx investment though I think that we got the capacity and the structure there. But labor, we had to get some more labor.

MPAA

Q2

Jacob Muller

Selwyn H. Joffe

Another takeaway from today is that you guys probably will not be paying cash taxes for the next year?

Correct.

HAS

Q1

Arpine Kocharyan

Brian Goldner

That's super helpful. Thank you. And then just a quick follow-up. Have your expectations changed at all for what volume under PEPPA and PJ you could sort of vertically integrate in the second half of the year?

No. In fact, I would say we're as confident or even more confident. The teams have done an incredible job of working with our global retailers and selling in an array of new really inventive product. Season 9 of PEPPA is really proceeding. There's a whole line of new content coming, and I don't want to give anything away to the fans, but including a trip to the United States for the family and a lot of product around all that and the play patterns. And really it's just so cute and inventive. So no, we feel very good. PEPPA and PJ both will have around 50 SKUs each this holiday and we'll continue to accelerate in 2022 as we have new products coming in that year as well.

BGS

Q2

Kevin McClure

David Wenner

Got it. Thanks. And one final question for us, we talk a lot about acquisitions, you guys have been very acquisitive of late. But I am curious, would you ever envision yourself as a seller of a brand, maybe some that generates solid cash flow which may not fit as well as it did several years ago, where you want to take the company. Would this be a good time to probably see what kind of valuations you could receive for those assets? Thank you.

The problem as we have discussed in prior calls, the problem with shelling a brand for us is, you would want to sell -- the brands you would sell, like well, this isn't performing up to the standards of all the other brands, you're not going to get a high multiple for those brands. But even a very good brand, we would have to get an extremely high multiple for a not-to-be a dilutive event for our company. I mean, we are valued at north of 12 times EBITDA, and assuming we depreciated the tax basis in a brand a decent amount, and we are going to have to sell a brand for the upper teens multiple in EBITDA to breakeven. So it's very hard for us to look at selling a brand and saying this is a good idea and not dilutive to our shareholders.

GGG

Q1

Kevin Mackza

Pat McHale

Another question on process margin. So some of these costs go away. The translation effect doesn't. Can you just a little bit longer term, talk about the way this business is configured now with the new acquisitions in there, kind of what you think the potential is here for margins? Can they come back up to that 24% level over time?

We’ll have the of course the accounting impact of the amortization that will go extended period of time. But if you take a look at what the margins would look like without that amortization, we expect they'd be pretty strong. Again, the recent acquisitions with those costs excluded are in that 30% range. So good strong niche markets.

RAIL

Q4

Michael W. Gallo:

Joseph E. McNeely:

In terms of the $2 million, would you expect to be able to pickup any of that revenue in your other facilities, do you expect that revenue will go away?

I expect to go away. It’s in a different part of the country than our two Nebraska facilities, but I expect most of that goes away.

VZ

Q2

Simon Flannery

Hans Vestberg

And when should -- when should you launch the first of the Sacramento, L.A., Houston? Is that going to be in the third quarter or more likely the fourth?

Good question. As we say that in the second half of 2018, so we promise we will come out and tell you as soon as we know exactly the date.

VCEL

Q3

Kevin DeGeeter

Gerard Michel

And with regard to your comments in the prepared portion of the call with regard to gross margin, can you just help us think how mix may impact expansion of gross margin going forward specifically that kind of call $0.80, $0.85 per $100 of kind of for us profit. How does that sort of fall depending over there that's Epicel versus MACI revenue following through?

Yes. That’s a great question. I think the percentages I gave really are based on our anticipated mix. I think on the margin if Epicel is growing by leaps and bounds and continue to grow by leaps and bounds and superseded took over MACI. I think maybe it might be a tad bit lower, but I think it's within the margin of error. The material cost for these per patient are roughly similar.

HAS

Q1

David Beckel

Brian Goldner

Thanks a lot for the questions. I have two, if I could. First one, just on Arena or MAGIC in general, I guess. Really impressive growth, obviously, from Arena in the quarter. I'm curious, do you have the data sets of -- capable of giving you a holistic picture of your player base? I'm curious more specifically if that growth is coming at the expense of tabletop or if you're actually expanding the market base, and whether or not you expect mobile to further expand the market base. That's my first question.

Yes. Sure. So in fact, you're right. The Magic Arena had historically been expanding. It's accelerating in that effort. In fact, analog tabletop has performed incredibly well. And let me remind you that the analog and the tabletop business is performing incredibly well while people can't get together locally in their local favorite hobby shops or local gaming shops to play the game. In fact, about a year ago, and if you looked at the hobby shops, you would have seen about 40% of global hobby shops had some capability to fulfill for either curbside pickup or some kind of e-com. And today, that's well over 80%, and we've tried to help foster those capabilities and building card sets and releases that would be enabling this local hobby shops to really participate. But we do expect an additional tailwind on the analog business when we're starting to see that as markets begin to reopen and people can begin to get back together again. And so that's really a major contributor to people being able to play and also the opportunity to continue to share an individual gamer's passion with new gamers to the game. People get invited to come along and learn how to play MAGIC all the time. So yes, it's expansive. No, there is no cannibalization. And then in fact, Magic Arena is just allowing people to play at a distance who had never been able to be able reconnect with friends or family before but not necessarily be in their neighborhood. So all a net positive.

BMY

Q1

Terence Flynn

Samit Hirawat

Thanks for taking the question. It looks like the clinicaltrials.gov listing for your Factor 9a Phase 2 study in total knee replacement is now showing a completion date of this month. So just wondering if we could actually get data from that trial here over the near term. And then, looking back at enoxaparin's rate of bleeding in this setting, it looks to be about 4% to 5%. So just wondering what level of differentiation there you're looking for. Thank you.

Thank you, Terence. Looking forward to the readout of the first trial in the total knee replacement setting, which is testing the single-agent Factor 9a in the next couple of months as we look forward now. And also, as we've spoken before, the second trial will read out in the early part of next year as well. In totality, we'll be the one determining factor to really ascertain truly the overall safety, and of course, what we can gain in terms of efficacy to define the plan as we move forward. So more to come on that. I would not go into the specifics of what level of improvement we are trying to look for. Those are gonna be defined with the differences that we see. But again, we've said before, if we can produce another agent for prevention of clotting and thrombosis at the level that is similar in efficacy but better safety profile, that is what we're looking for. And certainly looking forward to the data in combination with anti-platelet agents as well. Thank you.

BMY

Q1

Steve Scala

Samit Hirawat

Thank you. Your comments on the liso-cel PDUFA extension reflected no real concern whatsoever. And it's one of the four new launches you called out for this year. It seems you are completely comfortable with the FDA meeting the regulatory timeline. I just want to make sure that that's the impression you wish to convey to us? And then secondly, it was stated that the COVID-19 could lead to inventory destock and a drop in patient visits to infusion centers in the second quarter as well as beyond that. I'm just curious, what was the decline in these metrics during the month of April? Thank you.

Thank you, Giovanni. And thanks Steve for the question. For liso-cel what we have said that we remain confident in the data. We remain confident in the data that is submitted to the FDA. It is very normal for the FDA as they review the file to ask questions. Certainly we are looking towards the approval date now in November. During the review process, there may be many more questions that come to us. But that's a very normal process. So I think that's the way to look at it. I obviously cannot comment specifically on types of questions or one that relates to from a regulatory point of view. We remain confident and we are looking forward to bringing this treatment to patients as soon as possible towards the end of this year.

BMY

Q1

Ronny Gal

Chris Boerner

Good morning, everybody. Two, if I may. First, the office has now come out to restructure Part D with some participation by pharma through the cost structure of roughly 10%, even from a Democratic side -- from the Republican side. I was wondering if you could just kind of ballpark for us the relative impact of pharma participation in the cost structure of Part D and how does that translates into your own revenue. And second, I was wondering how you're gonna handle the difference in prices for Zeposia between the MS market and the IBD market because of the two different price stance and you're transcending that. So how are you thinking about handles?

Yeah, thanks for the question. Obviously, we are keenly aware of the differential in prices between the MS market and UC. As you know, we priced Zeposia in line with the value it provides and ensuring the broadest patient access in the MS market. And as we think about UC, it's certainly too early at this point to discuss how we are thinking about pricing in UC. What I would say is that we're going to factor price considerations. How we think about the broader access and the importance of access in IBD generally. And we have plans in place that we'll execute as we get closer to the approval of Zeposia in UC, but it's something we've been focused on for some time.

BLIN

Q3

Howard Halpern

Ari Kahn

Okay and now that you've sort of established this industry platform are there any, is there a pipeline that you're looking at a potential bolt-on type acquisitions that could leverage what you've done?

Right, well we are being approached by companies regularly, like more than once a month to review acquiring them. So we're seeing a lot of activity there and we able to integrate these businesses very quickly within three months. The company operates as a single company. So from an operational perspective, integrating another $2 million to $5 million business would not be a problem at all.That said, we want to establish a couple of quarters of showing bottom-line results. We think that that's going to be meaningful to investors. So our primary focus is operations right now is more of an opportunistic review of incoming acquisitions. We do think that strategic acquisitions are a key part of our future and in 2020 we'll make an even greater concerted effort to review opportunities.

B

Q4

Edward Marshall

Gregory F. Milzcik

Right. But that should be related in the operating profit line?

Right, exactly [indiscernible] point.

TER

Q2

Jairam Nathan

Gregory R. Beecher

With regard to Wireless Test, have you mentioned what your breakeven level is on that business? And if -- and how has it changed over the last 2 years or so?

We haven't -- we're probably not -- we're not going to do that in this call and don't plan to. But LitePoint would expect to operate with good profits this year, as well as the prior 2 years. Obviously also, though, we've invested much were in the distribution and in the R&D in cellular tests. This -- we see this LTE as an opportunity. It's a discontinuity. Customers are looking for different solutions. They can't buy what they bought in the past. So there is this opportunity, whether it's a 1, 2-year window. So this is when we need our best engineers, best products engineers and best sales guys out in the field. And we've done that in the past year in the major Asian countries. So we've absolutely ramped up the LitePoint OpEx. And it is delivering with the early design wins, which, whether it's 2 years, 3 years, it will be some time period where we believe we can move from small share to a much more meaningful share.

PLXS

Q1

Anja Soderstrom:

Pat Jermain:

Okay. Thank you. And I think you just, there’s a little bit to elaborate about the gross margin and ramping new projects might be pressing that, because you’re guiding to quite – you had a good performance this quarter and you’re guiding for the second quarter to remain relatively high. So, how should we think about that going forward?

Yes. well, I was going to say, as Todd said, I mean, we’re – from an operating margin standpoint; we’ve been really pleased with the last three quarters. So, hitting 5% or above would be our target. Expenses, we’re kind of monitoring, Anja, would be travel expenses and healthcare costs, those are things that could be potential headwinds for us, but trying to achieve that 5% or above would be our target.

CTAS

Q1

Michael Fox:

William C. Gale:

Okay. And then with regard to the international acquisition, can you give us an idea of kind of a timeframe what you guys are looking at as far as when you might grow that business or start to make more acquisitions there?

Well, we are going to certainly be opportunistic in looking at when things become available. I would say, we don’t have a definitive plan that we want to be certain size in any particular period of time, but we are very aggressive in trying to understand the market over there. The management team that came with this acquisition is very well known on continent in this business and therefore will be very helpful to us as we expand. And I would say, it's just a matter of time and the right opportunities presenting themselves because we are committed pretty much to moving forward with this business over there.

TER

Q2

James V. Covello

Mark E. Jagiela

That's helpful perspective. And then when I think about the short-term disruptions in the Wireless Test space versus the long-term opportunity, how do you guys frame that up in your mind? Obviously, you talked about the issues that are driving the market this year and in the back half of the year. What are you -- what in your mind has to be the long-term reward to live with the short-term volatility in that market?

Well, I think Wireless Test is going to be propelled by unit growth and complexity. And the period we're in, in the past, I would say, 2 years, last year and this year, is that the unit growth has slowed a bit for complex devices because of the sort of pushout of China LTE deployment. And people, in the meantime, in the traditional markets have been working on a lot of optimization and reuse of equipment. So what we do see is that the deployment of LTE in China will occur. It's hard to predict when the ramp starts to go vertical, but it will come. And with that will come a lot of complexity in those phones from an RF point of view and -- on the RF and from an applications processor and power management point of view. So for both the SemiTest business and the LitePoint business, we think that the China wave will be the next wave of benefit we see from the wireless space. And then what comes after that will be further enhancements with LTE Advanced and such that will continue to drive increased bandwidth and test complexity.

BGS

Q2

Andrew Lazar

David Wenner

Thanks, and then if we think about the M&A strategy, you talked about the specialty acquisition. It sort of feels like it was coming home, so I am just -- sort of speak in terms of a lot of deals that you did prior to the snack deals. Should we read that as that's more your comfort zone, and therefore will be so going forward. The snack deals you've done, you've done, it gave you a core there. You've got to get better and more efficient with them. But generally, they're going to be looking more towards your center store going forward, or is that -- would that be not the way to read it?

I think if we have perceived it's the right acquisition in either space we would do the acquisition. Certainly, we are more comfortable, in terms of understanding exactly what we have to do and what the effect will be, doing a dry grocery acquisition; and this -- if we ever doubted that, we certainly got a little bit frustrated [ph] too by the Specialty Brands acquisition. But you know, you do an acquisition because you perceive it as the right acquisition, so I think we would do it in either space, if we perceived that it was the right acquisition.

AXAS

Q4

Welles W. Fitzpatrick

Geoffrey R. King

Okay, perfect. And then, am I eyeballing the type curve right to say that the Raven 2H is going to be about 500 over its first month and then the 3H will be north of that when you say that it's meeting or exceeding?

Yes, we think it's 6 more barrels of oil, which 400 barrels of oil a day.

NAFC

Q4

Karen Howland - Lehman Brothers

Alec Covington

Going forward, do you expect that focus to be more on the distribution side?

Well Karen, I mean as we said at the end of the third quarter we are interested in anything that is a tuck-in acquisition that fits nicely and makes sense with our business regardless of what that is. We have indicated though that our emphasis we are making larger acquisitions. They're going to be more slanted toward distribution than other parts of our business. However, when you are offered an opportunity to acquire market share within a market that you're already strong that just makes all the sense in the world to do. So we don't rule out making acquisitions if it makes sense on the retail side. You may see us actually acquire some stores that we may intend to divest to a customer later if we can help grow our Food Distribution business. So we will look at all sorts of opportunities but what you shouldn't expect to see is that we would go out as I mentioned earlier and acquire some retail chain. That's just not our focus. We have those opportunities come available but we decline them because it just doesn't fit with the strategy in which we have today. But for us to allow really good assets to be acquired by a competitor in a market in which we are in would not be doing the right thing for our shareholders when we can saturate and increase our market share in the given market in which we are already in.

MCRN

Q2

Mike Halloran

Tom Goeke

Makes sense. Last one from my side. Revenue was a little bit below what we we're expecting, but the margins were really healthy. Maybe just talk a little bit about some of the drivers that drove the strong margin performance here? And then a few comment on just sustainability form where we are today?

Sure. So on the top line; it was bit of a slip on customer side in APPT, in North America on shipments. And about – I think that's $1 million to $2 million also in India, same thing was because of our payment schedule delayed until Q3. So no loss of orders, just a [indiscernible] into our Q3 and customer driven. On the margin side, it feels really good and largely because of cost out, cost management and really doing a fair job of offsetting the tariff impact. So the team has done really well. That part is absolutely sustainable and we've had very good margin recovery and a little bit of the impact on margin comes from NPE in prior year.

TTE

Q4

Christopher Kuplent

Patrick Pouyanne

Hello, there. Good afternoon. Thanks for taking my questions. I think I might have one for each of you. Patrick, maybe you can give us a wider update on the current security situations. As you see it on the ground, you mentioned Yemen just now. I'd be interested in Mozambique and the prospect for bring back staff. And perhaps for you, Jean-Pierre, when we talk about -- and many questions have been asked already. I appreciate that on buybacks and shareholder distributions. What should we use as most appropriate metric that you would consider is an appropriate allocation of capital during these relatively high oil and gas price times to shareholders versus to your balance sheet.

Mozambique, I'll let -- I'll give time to Jean-Pierre, a difficult question. Mozambique, I visited Mozambique very -- 10 days ago. I met with President, Nyusi. And some of my people went into Cabo Delgado, not me at this stage. There have been -- let's be clear, it's a war. You have some terrorists. So it's no more a matter of TotalEnergies to be involved in solving that situation. And we will come back -- we could envisage to come back and to restart the project on the nuance there will be peace. I mean, peaceful situation which means not only having been able to secure security to, I would say, take back the control of the security but also to have population, the civil population back in the villages and with a normal life. That will be the signal. There is no way for and we will not build a plant in a country where we'll be surrounded by soldiers. It does not work like that. Having said that, there have been some clear improvement on the ground. Since the involvement and the Mozambique arrangement with the SADC, I would say, proof, I mean, yes, consortium of different countries, including Rwanda, they managed to get back the security in some key areas around Palma, where we are -- our project is around MocÃmboa da Praia who knows Mozambique, I become an expert but not -- they do not control today to full Cabo Delgado. And for me, as long as it's not control security. Why it's important? Because the population will come back only when security will be under control and all that is linked for us. But I mean, I have no idea when we can start the project back. But my view is that the conditions under which we could -- we start the projects might be fulfilled, maybe it will take a year, I don't know. We'll see, we observe. And we are -- what is good, we have the same vision with the authorities of Mozambique of what needs to be achieved. There is no pressure for us to exit out of force majeure. And we have established, I would say -- we have frozen a very fewer contractors. We know that -- when we will say, yes, we can come back, it will take 6 months really to start up again. But again, my priority, it's a matter of sustainability of that and human rights. And so we'll not relaunch the project as long as I see photos from refugee camps around the site. But again, it's not negative. It's still -- it's for me a project and we are monitoring the situation because we think that the authorities of Mozambique are taking the right decisions in terms of security. So let's observe. The contribution TotalEnergies today and its partners is mainly to contribute to the social life, I would say. We have engaged with NGOs to see if we could -- because all the stability in this part of Mozambique will also come from giving some few jobs, some prosperity share without waiting the gas to be produced but we need clearly to help the local populations to see some, I would say, some shared prosperity from the project before. But by just the agriculture and buying food from these farmers for feeding our teams on the project but we need to act on the ground and to -- it's a condition of the security for me. So that could take time as well. But the gas is there, the project is there, the LNG demand is there. So now it's a question of passions and in order to be able to execute the project.

KLAC

Q4

Srinivasan Sundararajan

Bren Higgins

Okay. And considering that your big order that -- for like the shipments have been likely to be later, isn't it fundamentally different than whether Apple and Qualcomm go with the one set of foundries or the other? And therefore, do you have some contingency plans on what might happen if there are cancellations?

Generally, I mean if you look historically, our orders tend to shift. I mean, our cancellations in our backlog tend to be very low. I mean less than 1%, over time. So it's usually very good backlog. And obviously, the timing moves around a little bit. So I don't have any reason to believe in this case that this isn't quality backlog that will ship over the next 6 to 12 months.

NMBL

Q3

Alex Kurtz

Suresh Vasudevan

And just last question for the January guide, are you dialing back the assumption on enterprise execution or is it roughly the same where you had it for October?

Well, so our belief is that the competitive intensity is which is what drove the lower than anticipated productivity in our enterprise side is going to stay in place for the next several quarters particularly as the larger incumbents are defending not just slow growth, but declining revenue we anticipate that, that will stay in place and that's really what we factored into how we think about Q4 guide.

EXPE

Q2

Deepak Mathivanan

Peter Kern

Great guys. Thanks for taking the question. Just a couple of ones. First, Eric, can you help us think about taking rates and booking window dynamic for the second half. With all the moving pieces, it's a little bit of a challenge to translate bookings to revenues. Any additional calls that you can provide thereon take rates and booking window are based on what you're seeing in July would be great. And then the second question. Can you talk about the supply acquisition campaigns on the global side? How has the supply side generally has been at and how should we think about the benefit of this translating into bookings, maybe in the back half and then also into next year? Thank you so much.

Don't know what happened there? Apologies. I think Eric cut out on us. Hopefully, you can still hear me. I'll just finish by saying that where he was going is the combination of mix has been really different during COVID, so it's a hard thing to tie back to historic levels. Air and other things were down more considerably than launching a car, etc. So, it's a little hard to give you much guidance there except to say, we expect to see continued mix shifts during this somewhat COVID period we are in. But we also believe that over time, and broadly, everything will revert to the in terms of mix and we should see more predictable take rates in that period.

IM

Q2

Richard Gardner

Kevin M. Murai

Its Citigroup. I would like to also say best of luck to you Kevin. I have two questions first of all, I wanted to understand in Europe whether going into the third quarter there's additional temporary cost associated with the German issue that is going to come out or is the margin improvement that we are going to see in Europe for the balance of the year primarily a function of operating leverage on the investments that you have been making there?

I think Richard we will probably see some incremental cost but probably to a much smaller extent than what we are seeing through Q2. We do expect that in the second half of this year though we are going to absolutely leverage the investments that we have made so, not just in the market share win backs in Germany but also in fine tuning and optimizing that warehouse management system and driving higher levels of productivity and longer-term taking the cost equation down from there as well.

UNVR

Q1

Allison Poliniak

Carl Lukach

Great. That's very helpful. And then just lastly, I just want to clarify. The improvement in the outlook on adjusted EBITDA growth, it sounds like that's mainly your actions. Was there any underlying improvement or expectation in just the general market, or is this all you at this point?

I think this is self-help more than anything else. We're not changing our view on the market outlook. I think that the executional activities and improvements that we've been driving hard are coming in, and we're going to expect them to continue to come in at a faster pace. So no changes in how we view the exogenous matters.

PTEC

Q1

Nathan Schneiderman - Roth Capital Partners

Woody Hobbs

Once again, on the issue of revenue and how to think about that going forward in the near term; Woody, you made a comment that you historically have seen some small seasonality, sequential declines, Q-over-Q and then Rich you made a comment as well that looking at the deferred revenue, it’s the best indicator. I just wanted to clarify here and try to understand; a lot of the other players in the industry are talking about the impact of draw downs in inventory and suggesting that maybe you’d experience more of the draw down in the March quarter than you experienced in the December quarter. So I was just trying to understand how you expect that to skew traditional seasonality that you’ve seen or do you feel like there’s enough in deferred revenue that you would have a fairly typical seasonal pattern?

Because of the VPAs we have the opportunity of gaining market share in these quarters as the ODMs in Taiwan give us orders in order to meet their volume commitments and take them away from our competitors. The other thing that can happen and will happen is as we said before; some of this quarter’s revenues come from new products and so hopefully we’ll continue to grow those new revenues. So while BIOS revenues might decline a little bit, they might not due to offsets from competitors and in any case we’ve got new products coming online.

TAP

Q3

Bryan Spillane

Stewart Lindening

Thanks. Stuart, just a follow-up on pensions. So this balance sheet for the quarter shows that the pension liability down to $400 million versus 677. I’m assuming that’s the transfer of the US pension plan to the Miller Coors JV?

Yes, that’s correct. You’ll see a lot of obviously big movements in the balance sheet that all relate to stripping that out of our balance sheet and putting it essentially in one line as an investment in the JV.

HY

Q4

Mircea Dobre

Colin Wilson

Okay. Going back then to the point that you just made on orders and backlog as a whole. I agree, I mean, my own implied math here is that you had actually quite a nice uptick. As I am seeing it here, your ASP is up something like 3%, which is pretty strong, and it looks like the mix is a lot richer too. Can you maybe talk a little bit about what's happening here? In my mind, if that's kind of the starting point going into 2018, then you should be having pretty good mix and price costs, at the price dynamics to help your profitability? Is that fair?

I think there is also maybe two dynamics going on. I mean on one hand we are seeing an increase in demand for higher value piece of equipment, everything from four ton and upwards. At the same time, we are seeing a big increase in the demand for the really cheap trucks. The small value Class 3 trucks and when we talk about the overall market increasing, every truck counts as well, and whether it's $2,000 pallet truck or $700,000 piece of container handling equipment, we have done better in 2017 on the higher value stuff, and if we look at it from a pure market share play, we did less well on the lower value equipment. We do have some programs to address that in the medium term, but if you look at the quality of our backlog, it's very strong, and we expect that to continue going forward into 2018. And whatever you might look at in the Americas, as far as the fourth quarter is concerned, I don't think there is any trend there. I think this can be said, it can swing quite significantly from quarter-to-quarter. I think overall, the trend is for a richer mix of truck and generally speaking, with value rich specifications.

SWN

Q3

Charles A. Meade

Steven L. Mueller

Got it. And just to make sure I understand this right, it's that Doles that you're going to complete with this kind of -- with your new frac recipe?

Yes, Doles is the one’s that’s completing right now is almost done. There's a total -- originally went in, wanted to do about 26 stages of frac. I think we'll get 22 done, and we're almost done with. In the next couple of days, we'll be done.

GGG

Q1

Matt McConnell

Pat McHale

Okay, great, thanks. That's helpful. And on the reiterated target for a little bit of growth in EMEA for the whole Company, is that just because Russia, it is not going to be down 50% again? I know it's only a modest acceleration, but are you seeing anything there that makes you incrementally more confident in your ability to accelerate here from the flat growth that came in the first quarter?

Yes, part of that should be because the impact of Russia will be less as we move through the year. You know, Russia was getting worse last year as we progressed. Our view is it shouldn't get much worse than it was in the first quarter, so that the incremental impact quarter over quarter should be less to us. But we also have new product launches and we've got some other plans and programs that we think are positive. And we'll continue to work those for the next nine months. We've been performing okay in Western Europe and we don't necessarily see anything on the horizon right now that indicates that we should back off from that. So again, we are feeling like we can make a comeback from flat and get some growth for the year.

IM

Q2

Richard Gardner

Kevin M. Murai

Okay and then Kevin I also wanted to ask you, your commentary on the U.S. this quarter was... it sounded a little bit different than last quarter. I think on last quarter's call you talked about U.S. demand being weak early in the quarter or North American demand but then rebounding during the month of March. It sounds like demand may have slackened again at some point in the June quarter. Can you help us understand what Q2 was like in North America relative to Q1 and which parts of the business got better or worse, and sort of what the linearity of the quarter looked like?

Yeah, on the linearity question I guess it is a little bit more difficult to answer because we do have our own linearity just based on our own calendar of our quarter itself. But really I think what we saw in the second quarter that perhaps may have created some softness relative to Q1 was in the government area and then continued softness in the corporate marketplace. Those were probably the biggest areas that we saw relative weakness.

VZ

Q2

Philip Cusick

Matthew D. Ellis 

If I can follow up, anything you can tell us given that efficiency about where 2019 capex might be upward or downward from 2018? Thank you.

Yes. Good morning, Phil, it's Matt. So I'll take that one. As -- we will stay consistent with what we've done in the past where we'll talk about 2019 we get closer to it. But I think we've been pretty consistent in our commentary that, look, we expect capex to be reasonably consistent and as we [Audio gap] and opportunities to accelerate any spend on 5G as we see it, but it's a little too early in the process to get -- I'll just remind you, as Hans said, a lot of the spending that we've been doing around densification, suppose, both 4G and 5G. So the network really is in a great position to be prepositioned for us moving into 5G here without requiring a significant step change in total spend. We've done this before as we move from one generation of technology to another and keeping total capex spend fairly consistent and we're confident we'll do that again.

RAIL

Q4

Matt Brooklier:

Joseph E. McNeely:

Okay, so – it’s I guess a follow-up on that. Where are we from the staffing perspective and then it sounds like we’re going to see some startup costs in the first half of 2014, but may be not to the same degree that we saw in the second half of 2013, is that a fair way of thinking about it?

Yeah, in terms of the staffing side, now we continue to ramp-up now we had – we were fully staffed at one production line at the end of the year, and continue to start preparing the ramp-up second production line well that’s still on process and we’re still bringing people in today and given them train – hired and trained. So, we’re going to see those costs continue here. But, as we get fully staffed up here this spring that will then the training costs will just taper off.

BIO

Q4

Brandon Couillard

Christine A. Tsingos

Well, Christine, I really appreciate all the detailed color on all the puts and takes there. As we think about the operating margin outlook for this year, given that a good portion of the ERP expenses will come onto the P&L from capitalized, can you quantify what that incremental number alone is in 2017 versus 2016?

So I think that the spending was already higher in 2016 and so incrementally as we look to 2017, and this is assuming a fairly quick stabilization period, I think the incremental spend is only a few million dollars, $3 million to $5 million. Obviously, that changes quite a bit if the team stays in stabilization mode longer.

POWL

Q4

John Franzreb Sidoti and Company:

Don Madison:

So you say that the competition has been solid on pricing recently at least?

Keep in mind that we talked about it in the past, is that the electrical industry, from a producer's standpoint is relatively small. But each manufacturer typically has a sweet spot. If that manufacturer had a sweet spot in the commercial market and the commercial market softens, they look for opportunities elsewhere. As we spoke at the last call, many of them are moving into the oil segment because they see the strength of the oil segment.

HSY

Q3

David Driscoll

Michele Buck

Michele, a bigger picture question. Hershey took pricing in most of the portfolio outside of seasonal candies in 2018 and then in 2019. Given the negative impacts to Halloween for the entire category, would you agree that now is probably not the time for seasonal price increase actions, maybe this gets delayed to 2022 or sometime later, until we get a normal consumer environment? Essentially, I'm just asking you to assess your ability to pass through cost increases through pricing actions. It's a weird environment and I don't know how it's altered that calculus. Thank you.

Yeah. So obviously, I can't speak to any specifics about our specific -- any upcoming specific pricing actions. What I can say is there has been no change to our pricing strategy of smaller more frequent increases. And that doesn't necessarily mean we're going to have the same amount of pricing every year or that we would always announce pricing at the same time. We did, for example, actually have a small price increase this past year on our foodservice business in the third quarter. So if we look over time, we have been able to price at various times at various economic conditions. So what's important to us is we do think pricing is an important part of our algorithm. But as we've talked about before, we really want to grow through balanced growth across levers, distribution, velocity, innovation, price, etc. So we know that that that is certainly the one piece of the portfolio that we have not yet priced and I think it's fair to say that given that we haven't announced a price increase at this moment in time, the magnitude of pricing in '21 would be less than we've seen in prior years, at least at this point. We've been pleased that we've seen conversion to be pretty good this year, even in a very difficult economic environment and I think that continues to demonstrate what we've seen over the years, which is -- the category is very resilient, our brands are strong, we continue to invest into our brands and that does allow us for an even greater amount of pricing power.

POWL

Q4

John Franzreb Sidoti and Company:

Pat McDonald:

Good morning. I was wondering on a historical perspective, do you have a sense what kind of treasure threshold price on oil that your customers are more apt to go forward with projects and what kind of threshold price on oil is when they start to pull back on orders?

We don't have anything quantified. The only thing I can allude to is there's been a lot of articles written and some of our customers have stated they never made a single investment decision based on $150-a-barrel oil. I think the only thing that I can quantify that we have read was as it related to the tar sands projects, where they were looking at $45 to $55 to $60 a barrel made that economical. Nothing else that we have tangible that relates to where people are making their investment decisions.

RH

Q4

Anthony Chukumba

Gary Friedman

So these are more just kind of housekeeping questions. Probably more so Jack than Gary. But specifically, I just wanted to see if we could get a little bit of color in terms specifically the gross margin drivers, the SG&A leverage drivers and then just what your CapEx expectations are for 2021. Thank you.

Yes, Anthony. So, I think historically we've talked about very strong results as far as product on the product margin side as it relates to gross margin. And so Q4 is no different than what we talked about in Q3. It's about three quarters of the pickup is in our product margin which had a number of things that we talked about the decline in luxury mountain, the increase in the quality of product, cycling the rug business, operating the rug business at a higher margin among other things, outlet business as we talked about in MD&A and our filings. Obviously, it’s a lower promotional level. So that's where you're seeing the predominant amount of it. And then as far as CapEx for the year is concerned, you'll see in the 10-K when it's filed next week, the range that we're getting is $250 million to $300 million. That is a little higher than - this year, we ended up with sort of adjusted CapEx, you need to look at because a portion of it ends up putting it - is in op section of the cash flow. But this year we ended up at $180 million. So, then what I'll say about the elevation of the CapEx is there's a number of sort of development hills hat are happening this year that that will monetize in a future period. And then just finishing one of those stores we're opening was on a land lease. So there's just a number of factors that are just driving a higher CapEx this year including starting to spend money internationally.

HLX

Q2

Stephen Gengaro

Owen Kratz

Great and then just one final one and that is the transit times to Trinidad, is that anything we should worry about from a modeling perspective, are you getting paid for that. Is that a long time out of service from a utilization perspective?

No the payment for that is factored into the rates that we’re charging for the work in Trinidad. So it should be a revenue recognition event.

SYK

Q2

Kyle Rose

Kevin Lobo

Great. And then the second question is, I think earlier, you noted that, when physicians do move procedures to the outpatient or the ASP they're typically using their, standard instrumentation sets or the same implant systems that use in the hospital, have you seen any changes in pricing or types of contracting that you're seeing, when your ASC team does go out to engage on driving initiatives there?

No, thus far, we're not seeing really any change in implant pricing. But we, what we are seeing is because of the capital requirement; we are seeing deals that involve multiple businesses of Stryker. We're seeing much more of that than we see in the hospitals. So the deals that we do typically involve four or five different businesses, and Stryker, whereas hospitals tend to buy product category by product category, but no real change on pricing.

TDC

Q1

Matt J. Summerville

Michael F. Koehler

Just 2 questions, Mike. In your prepared remarks, you indicated that the ETL offload, if you will, into Hadoop has been less than what you speculated upon earlier. Can you sort of quantify that and remind us what your expectation was?

Sure. What we've said previously is when we look at the amount of ETL that would be a good candidate to move off of our integrated data warehouses, what we're saying is it represented 4% to 8% of the total workload on Teradata could be impacted by that. So what we're saying is 20% to 40% of the work being done on our integrated data warehouses was ETL and 20% of that 20% to 40% of the ETL being done on our Teradata IDWs was a good candidate to move off. So I just wanted to provide an update -- and I want to provide an update each quarter as things change or don't change, and basically, the update is not much has moved off over the past, whatever, 12 months or so.

BKYI

Q3

Unidentified Analyst

Mike DePasquale

Sorry. So Mike, last year, you guys had some subscription licenses. In the fourth quarter, can we assume those are going to repeat this year for the fourth quarter and then also can you give some us sell through or do you have any sell through feedback for the bike lock in Japan yet.

We're just, yeah, let me answer the last question first. The bike locks, we're just going to production on those products so we'll begin shipping them the end of this – we only have another month and a half to go, but we'll begin shipping them in December as I mentioned before. So I think we'll have a better handle on that as we get into the beginning of next year and will report that out on our next call. In the context of the subscription business that we did last year, yes, there's certainly a strong possibility that we'll see those -- that subscription renew as well.

ICD

Q1

Kurt Hallead

Philip Choyce

Great. And then just one last follow-up. Do you expect to be EBITDA positive during the second -- during the remainder of the year?

It's going to depend on how many rigs are running Kurt and we just don't know the answer to that. If it's less than six that's going to be a challenge. If it's more than six then we've got a chance to do that. But it's going to -- there's a lot of variables in that.

HAS

Q1

Tami Zakaria

Deb Thomas

So my first question is, do you still expect advertising expense to be 9% to 9.5% for the year, given the first quarter was light? And how should we think about this line for the rest of the year?

Good morning, Tami. I think we do still expect advertising to be right around that 8% to 9% of revenue level. It was light in the first quarter, not because of Consumer Products and Wizards and Digital Gaming because we had increased advertising in those particular segments. It really was because of entertainment and not having the theatrical launches that we had a year ago when we were out promoting those lines. So that's really why you're seeing the impact. But for a full year basis, we still expect to see that 8% to 9% of revenue range.

NMBL

Q3

Aaron Rakers

Suresh Vasudevan

Okay. And final question for me is on the enterprise productivity, I'm just kind of curious -- where do we stand on the productivity curve maybe relative to what you would have thought of may be coming out of the July quarter and -- as you bring on these new named account teams, just remind us again how long it takes us to see them ramp to that kind of targeted productivity?

Yes so I think we are not actually giving you specifics on the past. Let me just say what we have said in the past is typically our commercial teams Aaron takes around four quarters before they are on the same curve as our mature teams. And enterprise teams, we had said, sort of was slightly longer than that. What we are now seeing is that full productivity of our enterprise teams is perhaps four quarters longer than our commercial teams and that's really sort of is how we are seeing this. It takes about a couple of years before enterprise teams yield the kind of full productivity that we are looking for.

CMN

Q1

Mitra Ramgopal

Andrew A. Krakauer

Okay, that's very helpful. Andy, I just wanted to circle back on the Healthcare Disposables business. I know you mentioned you had pretty nice organic growth in the quarter but some of that was driven by face masks and I guess Ebola related issues and some [figures of] [ph] price increases might have driven some business there. I was wondering if there was a way of maybe stripping that out and get what the underlying business grew at?

Obviously we don't know exactly the answer to that question, but I would estimate that we probably had a 4% to 6% organic growth, so somewhere between 40% to 50% of the growth, and that's just an estimate.

SWN

Q3

Charles A. Meade

Steven L. Mueller

I'm curious, is -- did you complete that in a different part of the formation? Is there something -- or did you have a different frac design? I know you talked about using linear gels. But the question is, is there something different you did there because that looks like a really encouraging rate.

There are some things we did different. As Bill mentioned in his comments, the 2 vertical wells we drilled, the first thing we want to do is determine if there was extent to the high pressure area; there was. But the other thing we found in -- and if you remember back to our very first well, one of the issues we had was trying to get enough vertical to extend our fracs. We found as we evaluated the BML well that we still weren't getting the growth and height on our fracs that we were looking for. So we tried several different kinds of fracs on both the Johnson and the Dean wells. And in some cases, they worked; in some, they didn't. In the Johnson well, I can tell you 2 of the 5 I think we've done so far, we screened out early because the frac that we're trying didn't work but as we got towards the end of frac-ing in the Johnson well, we came to what I'll call a new formula. There's nothing magic about it; just kept tweaking. And it looks like we're getting better vertical height. We tried that on the Dean well and well, there's 3 intervals, we frac-ed -- on that well 3 separate fracs, and the perforations, as we said weren't much perforation. There's about a 200-foot interval. It wasn't anything unusual over any of the other wells in the area. But when you look at the fracture area that it looks like it's contacted versus in the BML well that has over 4,000 feet, it's got almost 60% of the same fracture area. So it looks like we're starting to learn something on the fracture stimulations. And that well has held up very well. The numbers he quoted were on a 10/64 choke, and we still have high 6,000 pounds bottom-well floating tubing pressure -- of bottom-hole pressure. So that well gives us encouragement and we're using a variation of that. For the most part, we're trying some things on the horizontal we're frac-ing right now. But we're using a slight variation of what we did on the Dean on this horizontal that we're working on now. So I can't say it's the answer, but I can say that we're getting closer just by working on the fracture simulation. And it looks like we're getting a little better height than we were in any of the other fracs we've done today.

OCX

Q1

Paul Knight:

Doug Ross:

The last question I have Ronnie is on that paper, what Lung-RADS classification were these samples?

Sorry, guys. This is Doug. Just a reminder that this is a combination of benign and tumor. Only a fraction of them actually turn out to be tumor. And so that cohort is designed to inform whether or not we biopsy a nodule which it could be benign or tumor to determine whether or not it is in fact tumor. So the clinical indication is for use of invasive biopsy procedures and obstructing the use of invasive biopsy procedures.

NWSA

Q2

Brian Stelter:

Chase Carey:

So you may have to reduce the amount of content on it.

No, I’d say we’re going to continue to deal with Hulu from a content perspective, consist the way we have.

RRD

Q4

Scott Wipperman

Thomas J Quinlan

Great. And then maybe just the last one is for the guidance for the year. I mean, if we just assume the economy ranges the same, which I know is a big assumption, but if you could just maybe walk through like which of your segments or end markets or regions, which in your mind is the biggest swing factor this year, either beating or missing that guidance? What should we be focused on? What are you focused on?

Dan will take you through that, but the one thing I want to also emphasize, as you think about the economy and what Dan Knotts, George Zengo, the rest of the team -- look, a tough economy should be a good day for RR Donnelley because our customers are going to continue to look to get costs out of their platform. We don't change the way we run the business no matter what's going on with the economy, but hopefully, our customers will be able to show them the impact that we can bring to their platform as a result of the cost savings we can give to them, how we can improve their return on their investments and how we can make their market communications more powerful for what they're doing, so...

UNVR

Q1

Andrew Buscaglia

Steve Newlin

So, I just have one thing, not to nitpick, but on your free cash flow. So it was negative this quarter. Can you just walk through what happened there? I mean I know seasonally it's probably lower and you're going to ramp this year. But just trying to parse that out in terms of how that relates to with your M&A, if you have enough cash on hand and I think…

Sure, Andrew, thanks for that. I'd say that, to answer your last question first, yes, ample liquidity and cash on hand to more than enough to execute our acquisition strategy. In terms of the net working capital change in the first quarter, two parts to that story. Yes, as you said, the seasonal uplift which happens every year in the first quarter, sales happened in the second and third quarter, that is always amplified up in Canada with our Ag business. That's in the mix there too. But then again, in the cash flow statement you'll see that last year's first quarter we had a very large harvesting of working capital. A large portion of that was the decline of the oil and gas business at that time, kind of the peak of the decline. So tough comp, I'd say, when you look at the year-on-year cash flow of the company, and by saying that our full-year outlook of net working capital change in the $50 million to $100 million is still quite a safe bet. We, as you know, have outflow in the first, and inflow at the end of the year.

BJRI

Q2

Matthew Kirschner

Gregory Levin

Great, was there anything that you guys did differently to kind of hold up the takeout business versus the delivery business?

Just in general, I mean, we've been working hard. Our ops team around -- you know, we've been putting some capital in our -- in our restaurants to make it easier for both our team members and our guests. We've done a lot of work online in terms of an ordering perspective to make ordering takeout more -- more convenient. So, you know, this isn't something, although we've launched this next generation pretty recently, we've been -- we've been working on, you know, off-premise and the operations piece, you know, for quite a while, over a year now, and as I mentioned in my -- in my script, the -- it's really good to see our MPS scores both improve -- they -- I would say from an absolute basis they still lag dine-in which doesn't, I don't think surprised anyone on -- on the line here, but they're not drastically different and -- and we're heartened by the fact that we're seeing the fruits of all of the improvements and we're making from a restaurant perspective -- because fundamentally, if it's not a great guest experience, it's growth on on-premise is not going to last, right? So, you know, it's not -- again, it's not perfect but I think it's headed in the right direction.

AAPL

Q2

Bill Shope

Tim Cook

Okay. And then you sort of mentioned this when you talked about consumer versus professional and education, but would you say that you’re seeing any signs of stabilization in the consumer market that some of the other tech companies decided in recent weeks and with that in mind, can you comment on the linearity of the quarter and what you sort of saw on a trend line basis as you progressed through the quarter.

Yes, Bill, we’re not – we are not economist and so we are not entering the game of predicting bottoms and that sort of thing. We will report our results and give a view of the next quarter. But if you look at the different product areas, which is the way that we think about it, if you looked at the iPod linearity through the quarter and you overlaid last year, you would see very little difference in the two curves. We were up 3% year-over-year, and so very, very similar and not much to mention except for the point I made earlier that from a mix point of view, the iPod Touch is the runaway hit and it’s clearly being driven by the App Store that we spoke about earlier. On the Mac side, as I mentioned earlier, our sells, our unit sell through had accelerated in March after we turned every desktop in the company on the same day. And so March is a very important month for the Mac business. When you look at the iPhones, the iPhones linearity to the quarter, it was reasonably linear business after the first week or two; it was very little up and down in the aggregate. Obviously it’s a new business for us, it’s the first March quarter that we’ve had rolled out to significant number of countries and so we were exceptionally pleased to see that instead of the normal seasonality curve that one would associate with most consumer electronics.

PTEC

Q1

Nathan Schneiderman - Roth Capital Partners

Richard Arnold

One question for you on VPA contracts; has it become much more challenging to get your customers to sign to two year VPAs or are you seeing a mix shift towards one year quarterly and to what extent?

No, it differs from customer to customer Nate. Last year there was a conscious strategy on our part, which by the way in retrospect I would say has turned out to be very smart, to extend out to two-year VPAs, which was done for several reasons. From the OEM prospective, it was an opportunity to increase their aggregate commitment to us, which in their view helped them to negotiate the best possible pricing. From our prospective, it provided us with insulation against the risk of loss of customer base during the transition to the Montevina platform and also to extend the length of the commitment at a fixed price and therefore minimize the ASP degradation that could occur if we were renegotiating ever year. Now, we don’t have particularly the Montevina issue now and customers are a little less willing to make macro commitments in an economic environment like this. So the negotiations this year, we consider to have been extremely successful as evidenced by the fact that we booked $17 million in new business in a quarter when our revenues were only $15 million. So that’s almost a two to one book-to-bill ratio and that is a great outcome by our sales force. It’s mostly one year VPAs, although some of them are things like 18 months; they might the life of a project, life of a product line kind of deals, but they vary.

PRM

Q2

Michael Meltz - JPMorgan

Kim R. Payne

So the current stock that you are using, what’s the actual trend in pricing year-over-year?

We feel like mid-single digits price increases.

ANET

Q1

Ben Bollin

Jayshree Ullal

Good evening. Thank you for taking the question. I was hoping you could step back a little bit and tell us your thoughts, bigger picture about broader hyperscale investment. I'm not looking for guidance. I'm just I'm just interested how you think about these customers longer term.The framing for that near term, we're seeing these kind of material demand drivers, migration to Saas, adoption of cloud need for Elastic capacity addition and in the interim, not seeing a big change in those growth rates, the demand drivers themselves.So I'm seeing a big change in those growth rates, the demand drivers themselves. So I'm interested how you think about it longer term, what are the material drivers that kind of accelerate growth rates? Any specific factors that you think could be meaningful for an acceleration in the broader investment? Thank you.

Thank you, Ben. Well, look, I think the greatest acceleration for Arista came when the cloud titans made a huge migration to a lease fine architecture and especially standardized on Arista's EOS for 100 gigabit universal spine.So - and then on top of that acceleration, a number of titans co-developed with us, our join development focus that allow them to scale those through distributed datacenters all over the region and all over the cloud.So I think the next acceleration comes from more used cases, with 400-gig and 100-gig with the possibility of extending the data centers and their server density and their storage capabilities.And I don't think that’s necessarily this year but it could be in the next three years. So we will have to be a repeat or how we succeeded in 100-gig and 400-gig levels. Anshul, do you want to add something more to that?

BBBY

Q2

Curtis Nagle

Mary Winston

Great! Thanks very much for taking my question. Maybe just a little bit more detail on the progress of the CEO search process. How many candidates you are down to? What does soon mean? And are you still within "weeks" as you guys have laid out in your shareholder letter?

So to answer the last part of your question first, yes, we are definitely down to the final weeks. I’m not going to get into the details of the number of candidates, but you know we have been very actively focused on the search. We’ve got a great search firm working with us. We’ve had great interest in the position. So we’ve had quite a number of strong candidates.As I think we had mentioned before, we’re looking for somebody with you know retail transformation experience, innovation, online and digital experience, marketing experience. So we’re looking for all of the things that we would need to really continue the transformation of the business and we feel good about where we are in the process. And so you know, we expect to be naming a permanent CEO soon.

ASEI

Q2

Josephine Lin Millward

Charles P. Dougherty

So you booked 20 ZBVs during the quarter. How many did you ship?

9

SPTN

Q4

Mike Otway

Dennis Eidson

You guys are now I guess kind of 15 plus months past the close of the deal with Nash and as you guys think about the last year or so what the team has learned, some of the positives, the prizes, some of the hurtles, are you more excited about certain opportunities now than you were maybe a year ago, or on the flipside are there things that are taking a bit longer to play out than maybe you had originally anticipated? Any color there would be helpful.

I think we are really on plan with regard to 15 months in, I’ll start out by saying that. You may recall, a year ago at this call we laid out some guide posts for the business for this year. I said we expected sales between $7.9 billion and $8.0 billion and you see we delivered on that number. We said we were expecting synergies of $20 million. I’ve told you consistently that we’ve beaten the synergy number. We said we expected EBITDA between $230 million and $239 million, the number here today is $234 million plus in EBITDA, right there in the middle of that range. We actually guided EPS of $1.65 to $1.75 and yet we’re reporting $1.85. You think about beating that number and being in the range, I think you’re going to understand why we feel pretty good about being able to call where we were going to be able to come out despite the fact that’s not an easy modeling exercise to do. Then you take the $1.85, on a 52 week basis it’s $1.80 as we pointed out and you look at the guidance next year and we’re saying we’re going to go 5% to 10% more than that already accelerated number from the original expectation, I think you might glean from that we’re feeling pretty optimistic about where things are today and where we can go. It really is only 15 months in and there is a full three years’ worth of work in the integration. There’s a lot left to do, but I think we have fundamentally transformed the company and I think we’ve built the foundation as truly a platform for growth and as I look at the space I don’t feel any differently than I did a year ago with regard to their will continue to be opportunities to consolidate the space as scale and size become more and more important. That maybe is a long winded answer, but I’m feeling good about the outlook.

TWI

Q4

Joseph Mondillo

James M. Froisland

Okay. And just one more for me and I’ll hop back in queue. In terms of taxes, could you help me understand how – first off, how you’re paying cash taxes despite seeing pre-tax losses in the prior periods? And then how you see tax reform affecting the bottom line?

Yes, this is Jim. In terms of tax reform, it really has no impact. The reason for that is the same reason you stated about the tax question. It’s our NOL position in the valuation allowance as it relates to the countries that we’re in and the mix thereof results in the taxes that you see on the – and reflected in the financials.

PRM

Q2

A.J. Guido - Golden Tree Asset Management

Kim R. Payne

Out of all of your customers that are home builders, is there anyone that is a big percentage of revenue?

We’re diversified from our customer base so there isn’t one or two that is really driving.

LABL

Q3

Greg A. Eisen

Nigel A. Vinecombe

That is pretty good, but looking forward, California wine sales are to producers in that marketplace and they are going through, everyone reads about this horrendous drought there. Is there any reason to affect in the near term that is going to affect volumes? I guess they are bottling old grape juice right now essentially, old…

Good question, yes, it won't have an impact in our next fiscal year, because the juice is already in the tanks, but in the following fiscal year, it may have an impact on more so on white wines less so on reds because reds tend to have a longer process to market, but no impact in the next fiscal year.

CTAS

Q1

Brandt Sakakeeny:

Michael L. Thompson:

Just, I have got a couple quick house keeping items. First, do you have the stock comp for the quarter?

It’s about $2 million.

RAIL

Q4

Justin Long:

Charles F. Avery:

Okay, great. So, excluding that customer deposit at cash balance, it doesn’t sound like it should change much?

Don’t think so, because well you go to remember just a lot of depends on where you end up with your backlog and your plant production going into the next year and how much inventory you have to have on the ground and – and then pay for. So, that’s a long – long lookout at this point just with the caveat that can change a lot at any point in time.

BBBY

Q2

Atul Maheswari

Robyn D’Elia

So, basically, what have you baked in for digital growth in the back half of the year?

So in terms of the back half, to get to the range of around $11.4 billion, it does imply that there’s less negative, I guess less negative comps from a back half perspective. But we don’t break that out by channel explicitly.

ENTR

Q4

Tore Svanberg

Patrick Henry

Yes, thank you and good quarter. Two questions, first of all, could you talk a little bit about the Verizon FiOS service? It looks like you are expecting that business to be down about 20% sequentially again in the March quarter. When would you expect that to start stabilizing, especially given that there are now launching their new marketing efforts?

Thanks, Tore. We are anticipating that – they are basically at the bottom and they are turning it around based on kind of soft feedback we have from them. We won't know until the end of the March quarter kind of how things turn out, but I think that the new promotions that they are running which are based on – giving away the free DVR server, lot of Quad Play bundling, more aggressive pricing, a lot of these things seem to be getting some initial traction and the initial kind of soft feedback we are getting around that is quite positive. So although we're going to experience some more difficult in Q1 based on their Q4 results, we are hopeful that towards the end of Q1 or definitely in Q2 we should start seeing a little bit of a recovery in that business.

B

Q4

Matt J. Summerville

Christopher J. Stephens

As you think about Synventive for a moment, how much -- if you back out the onetime costs for the transaction and inventory step-up, how accretive was it to 2012 versus what you anticipated? And how much accretion, on an incremental basis, are you factoring in for '13?

Yes. So Synventive. As you recall last quarter, we talked about this short-term purchase accounting adjustment. That ended up being an 8% impact to the full year -- I'm sorry, $0.08 to the full year. So when you think about that impact and then the overall business, we were down -- roughly, we guided that we will have no dilution. We were down about $0.01 to $0.02 for the year, actually, so it's a little bit higher on that onetime item. And then we're staying consistent with our contribution of Synventive to 2013 where we commented on $0.16 to $0.18.

BMY

Q1

David Risinger 

Chris Boerner

Yes. Thanks very much. I have two questions, please. First, could you just discuss the bar that Bristol-Myers set in first-line melanoma with the combination of Opdivo plus Yervoy? Just so we have that in context ahead of the LAG's readout ahead. And then, second, could you provide a framework for Zeposia sales drivers in coming years in both the U.S. and ex-U.S.? Thanks very much.

Yeah. And then, let me take the question on Zeposia, David. So the way we think about Zeposia is, first of all, we're very excited about the opportunity initially that we have both in the U.S. and ex-U.S. in MS. We think that Zeposia brings a very differentiated profile into this market. It's now in the U.S., the No. 1 SP in terms of written prescriptions. We're gaining on oral agents. And as I mentioned earlier, we are making progress in terms of optimizing the patient pull-through in terms of commercial dispense. So we think we've got considerable opportunity to continue to grow in the short term in MS in the U.S. Ex U.S., it's still very early days for the launches of Zeposia, but I would say that in the early launch markets in Europe, Zeposia's uptake appears to be very good, particularly in markets like Germany. So I think in the near term, there's going to be clearly a focus on maximizing the opportunity that we have with Zeposia in that market globally. And then, of course, with the upcoming launch in UC, that becomes a much more important opportunity for us as we get into 2022 and beyond. Zeposia's profile looks very good. The feedback we've gotten from treaters in the IBD space is very positive. Obviously, the rate limiter in terms of the U.S. uptake is gonna be accessed. We know that's a very important component, and we are going to approach that in a very stepwise fashion. It's going to be important that we drive volume initially in those patients -- with those patients who have insurance that is open or relatively unrestricted. And then, we'll leverage the Zeposia profile to drive additional utilization and then, of course, work with payers to ensure that we continue to increase the access that patients have in that space. That will clearly take some time. But we think the opportunity in IBD for Zeposia is substantial. And that will be important both in the U.S. and ex-U.S. as we get into that launch in -- later in 2021 and then, certainly 2022 and beyond.

SMCI

Q3

Robert Maina

Charles Liang

Price declines and [ECD] components like you sold this past quarter, does that mean gross margins go lower than the 13% or can you buff it that somehow with some of the new processes you've put in place? Thank you.

Of course, I'm very happy to say that our hard drive and memory inventory already lowered to much more healthy level, we do have $13 million, Over $10 million, just in hard drive and memory inventory. So that's for sure dramatically improve our position. And like Howard just said, we now have dedicated position to watch those change periodically. So that to prevent from to minimize that risk.

BBBY

Q2

Curtis Nagle

Mary Winston


Great! Thanks very much for taking my question. Maybe just a little bit more detail on the progress of the CEO search process. How many candidates you are down to? What does soon mean? And are you still within "weeks" as you guys have laid out in your shareholder letter?

So to answer the last part of your question first, yes, we are definitely down to the final weeks. I’m not going to get into the details of the number of candidates, but you know we have been very actively focused on the search. We’ve got a great search firm working with us. We’ve had great interest in the position. So we’ve had quite a number of strong candidates.As I think we had mentioned before, we’re looking for somebody with you know retail transformation experience, innovation, online and digital experience, marketing experience. So we’re looking for all of the things that we would need to really continue the transformation of the business and we feel good about where we are in the process. And so you know, we expect to be naming a permanent CEO soon.

PLXS

Q1

Jim Ricchiuti:

Steve Frisch:

Got it. Just on commercial air, could you just remind us, what that’s representing right now of the A&D or maybe, just historically, what it was – and then I’ll jump back in the queue. Thank you.

Yes. And that’s a Plexus of the sector, it’s about roughly a third.

BLDR

Q2

Alex Rygiel

Peter Jackson

And any comments on progress through July, as it relates to 2Q results?

Good. Yes. We're happy.

OSUR

Q3

Vijay Kumar

Stephen Tang

Steve just I have one quick follow-up on the antigen testing. Maybe can you -- what should investors expect, over the next few months, right? One, will we have any update -- will The Street have any update? And I'm asking because, we had a push out to Q4 and now it's Q1. And I think The Street would like some updates in the interim. And the second was when are the trials starting right? Are these in-field clinical trials as in you're testing, in the field on live cases given these have to be self-swabbed? Is that what's causing the delay perhaps? And has the prototype for the device been locked yet? Thank you.

Yeah, Vijay, we have not announced prototype locks. So we haven't said anything about that. I do understand the interest in our product and the product development. I mentioned earlier, in response to a separate question, that we do plan to announce the submission of our EUA application, for the professional test. That's our plan right now. Beyond that we will have to see, what we'll communicate and when. There are obviously some competitive issues that would -- we have to account for, in any particular announcement. But, the delays are not due to any particular factor other than we had very high expectations, for the performance of the product. And the clinical trials are running to validate the particular design and performance of the product. So that interplay has continued and ramped up, since our August Q2 earnings call. So that will [Indiscernible] what I said before is that, we will use what we understand are the standards for the FDA targeting a self-test. And our own internal quality and performance standard as the measuring stick. And that's a very high bar, which is why it takes time to get this product on the market. But we are very confident that we're on the road to getting this product to the EUA process in the first quarter. And following with the Rx self-test and the OTC self-test shortly thereafter.

PTEC

Q1

Rich Kugele - Needham & Co

Woody Hobbs

Okay and then just to follow-up on Woody’s comments there on operating expenses and the ability to reduce costs, I understand you don’t want to preempt any restructuring, but can you give us a sense on how much you think you can actually reduce the structure and what the end game is? Are you aiming for if conditions remain at these levels all year; you’re cash flow neutral or what is the ultimate goal, so we have really some sense on how to model this?

Yes, you can’t get to cash flow neutral instantly, but that would certainly be our goal over the years, to move in that direction and to give our revenues from new products a chance to catch up and exceed our expenses. We can’t give you an expense number exactly because we’re working on it and we just don’t want to get ahead of ourselves, but we’re going to be aggressive about it. I think Rich said on the last call that in addition to being growth guys, we love growth, we’re also turnaround guys and we know how to fix problems like this.

POWL

Q4

John Franzreb Sidoti and Company:

Don Madison:

How much of your backlog is in the oil and gas sector?

We really don't have that statistic. Again, it comes back to the standpoint we get orders directly from the end client, we get orders, purchase orders, that actually come through [ENC] firms. So, even if you were to look into our backlog and tried to run a report, it's not easily ascertained. When you are looking at overall aggregate, I would expect it to be similar to what we've seen in the revenue side. As we have talked in the past, probably anywhere from 60% to 80%, depending on the year, of our industrial segment comes from the oil and gas and oil and gas related projects, depending on how you want to characterize the oil and gas segment.

BBBY

Q2

Oliver Wintermantel

Mary Winston

Yeah, the question was just with your improving sales in the back end of the year and the BEYOND+ membership promotions. Should we expect then gross margins to be negatively impacted because of shipping costs in the second half?

Assuming a significant ramp up in BEYOND+, yes we’ve been calling out how that’s impacted margin, because they do have free shipping associated with increased enrollment, but they also spend more frequently and spend heavier when they are buying from us than the average customer.

IM

Q2

Brian Alexander

Kevin M. Murai

Okay. And then just as a follow up, when you say that you are turning the corner in Europe are you making comments more around Ingram's specific situation that is turning the corner, are you making comments more around the market turning the corner because given that it is July and usually seasonally slow around this time of the year I guess I am surprised to hear that you are just picking up now?

Yeah, that comment really is an Ingram Micro comment. I think, we are feeling pretty good about where we have come from over the past say three and half quarters, in particular the German situation. Now in addition to that though we have seen slightly stronger than typical demand at this time of the year in Europe too, so having that little bit of wind at our backs is certainly going to help our business too.

GVNC

Q2

David Rau

Mark Thornton

With regard to the enrollment, do you anticipate that, I mean at the present enrollment for us to get the 330 we would need another 21 months of enrollment to get there, it seems like we really don’t have the cash on hand to do that. Does the company really feel that its going need to go to the potential of 330 or is there, really the goal is possibly to file for approval after this first -- after the next look?

Okay. Well, I would just add that as Paul mentioned I think it’s, we have a certain enrollment plan. It’s been constant with the manufacturing plan both programs are designed to be in concert. So, that’s for maximum efficiency, everything sort of comes to fishing around the same time for BLA filing given that the data is along set. So, we have these various opportunities to see just where the data stands with regards to that. Certainly, the trial is sized for 330, the company is focused on the aspect of as was mentioned looking at the data, at these interim looks that is with any program I think it’s a step-by-step sort of process where you take a look at the data, you see what the opportunities are, you obtain the necessary funding to move on to the next step. And so, I’m sure that’s an aspect of things. But as Paul also mentioned we are certainly not resting on our laws with regards to be what I can say a very good enrollment especially this would be other benchmarks from other companies. And so, I don’t know exactly what 2009 pertains with regards to enrolment but we are certainly always looking for additional sites and always looking for ways to sort of shrink that timeline for the total 330, should the trial need to go that far?

SYKE

Q1

Kevin McVeigh

John Chapman

Got it. Chuck, at some point, does that change how you need to price? And does that impact the seasonality of the business? Are there, in terms of, we should think about the quarterly cadence?

And Kevin, we don't see a seasonality to be that different in 2015 versus what it has been in 2014.

SWN

Q3

Charles A. Meade

Steven L. Mueller

Got it. That's all very helpful, Steve. It sounds like -- am I right in guessing that this is just a kind of a combination of sand load and pump rate and some chemistry that you...

It's just mix. And when you put the sand in and how much water you put, there's nothing magical about the fluids themselves.

TTC

Q3

Mark Rupe

Michael Hoffman

Okay, and then as far as the outlook, as far the commodities, I know that, it’s pretty clear on the last call that commodities will be higher in the back half. How should we think about commodities and the higher freight going into, I guess the fourth quarter, and into the early next year on the flow?

Well, I think, relative to as we wrap up the year that’s reflected in our guidance. So, as we’ve said we will work to have our gross margins remain kind of flat through the rest of the year now. Much of that inventory has been built. As we think about commodities, and you know, commodities move in one direction, and then they move in another direction. As we think about commodities for 2012, that’s something we’re building our plans around right now looking at – as we said before we don’t price to cost, but we look at what’s going on in the industry, and so as we project commodities for 2012 that will be factored into our pricing strategy as always. So in the fourth quarter is when we start moving out with some of the 2012 pricing and setting the stage for next season’s spring business if you will.

RHT

Q3

Steven M. Ashley

Charles E. Peters

I guess, I'd just like to drill down on that healthcare deal that sounds very interesting. You said, I think, largest deal in the quarter. Just if you could maybe give us some color around what the use case was, what kind of products they might have consumed, what kind of history you had with the customer? Just some general information will be helpful.

Well, it's not only -- it's our largest deal in the quarter, it was our largest deal of the year. And it was both RHEL -- obviously, RHN, which is our management platform, and also was JBoss as well. So it's a Middleware deal as well. It's kind of a combination of legacy migration, as well as their kind of standard platform going forward for new functionality. So it's just a very large customer kind of making the commitment to move from a proprietary platform to an open source one.

TTC

Q3

Josh

Michael Hoffman

Okay, and then looking at your product portfolio, where do see your vitality index into the coming year?

Vitality index – oh, you are talking about the new products?

CTAS

Q1

Michael Fox:

Michael L. Thompson:

Good afternoon. Just a couple of quick ones. When you look at the Fire Protection business and the Document Management business, you talked about the margins should increase as you gain national scale. Can you talk about how bigger geographic presence you guys have today and how long you think it will take to get national?

Certainly. In Document Management, we are in approximately 80 of the top 100 markets, obviously expanding very quickly in that space. Fire went approximately 60 of the top 100 markets. So, as we continue to expand, we will get further acquisitions to enhance that and then also greenfield startups where there is not an acquisition opportunity available.

UNVR

Q1

Allison Poliniak

Steve Newlin

I wanted to touch on the volume decline in the U.S., I know you attributed some of it to your actions specifically, but then also a little bit of sluggish market. Could you help us quantify your [indiscernible] was it mainly your actions that led to the volume decline, was it markets still, and what kind of visibility do you have for the balance of the year?

So Allison, it's Steve. I want to just give a little bit of -- I want to put this in context here, and then I'd like David and Carl to weigh in on it. And if you follow, I guess, my past practices, its volume is not the driver of profitability growth. And we're trying hard in our culture to be more selective about the customers we choose, to work on the mix of our product so that we have the appropriate amount of higher margin products in there. And in fact inside the tent here, I don't like us talking a lot about volume. Now, I know in your space you have to do that. And will come a time where you can really measure us on that front, but it took me a long time to get that changed in the last house. And we're moving a little faster here. So it doesn't bother me at all where our volume is. In fact, if our volume grows too much without a massive amount of leverage on the profitability line it makes me a little bit nervous because I don't want us spending our time on business that doesn't make a lot of sense for us. So that's the context. And with that, David, do you want to go first, then Carl?

ANET

Q1

Jin Ho

Jayshree Ullal

Great thanks for squeezing me in. A longer-term question as it relates to the enterprise. Has the nature of your conversations with your close enterprise customers changed at all? This may be a little bit premature.And the reason why I ask is, given that we're at a stay home, zero touch environment, one would have to think that the network automation, thesis should start playing out a little bit faster given that no can get to their networks anymore. How does that fit into customer conversations today?Do you think that will evolve? And especially given that you do have big switch that provides that enterprise -- hyperscale cloud-like environment to the enterprise that might be a positive to you guys in the long-term.

Yeah. No, Woo Jin, you really bring up a good point here. We tend to talk about data center and campus and all of these different use cases. But our customers are thinking more and more operationally. It's great to have a box. But how to ignite that box with the right operational capabilities is very, very important.And so when you look at it, you're absolutely right, day zero, day one, day two, zero touch automation, one click for the campus, data center, huge topic. The other one and this is why we bought Big Switch is not only are we igniting real-time streaming telemetry and cloud vision.But we're really extending that into the observability and network package relative space and we're very pleased with the sort of sum of data analyzer, cloud vision and now fix iCH to extend our dance monitoring fabric.So that trial or combination is going to be very important 50% energy so our enterprise conversations are going beyond that’s complete platform to much more operational automation analytics, availability and in the future security and segmentation as well. Woo

GERN

Q3

Brian Klein

John A. Scarlett

And then lastly, for Chip, a question on BioTime and the stem cell program, I know that you can't really comment specifically, but the assets, the stem cell assets that you have, have sort of been on the market for about a year or so, can you give us a sense of how discussions have gone over the past year and if the BioTime open letter is sort of your first offer that you received or if there's been other potential parties that have been interested?

Brian, I'm really sorry, but this is an area of confidentiality and a confidential process. I would just get in a whole heap of trouble if I made any comments about that, I'm sorry.

FISV

Q4

Greg Smith

Jeffery Yabuki

And then the high tax rate in the quarter that clipped you for $0.02, when did you sort of know that, I guess, is the question? I mean, is it fair to say that, that was unexpected by you guys? It certainly was by me?

Greg, I think it's one of the challenges of having an equity investment, to some extent you take what you get.

SYK

Q2

Matthew O'Brien

Kevin Lobo

Got it, thanks for that. And then over to Neurovascular, I know you don't want to call off this acceleration during Q2 versus Q1, but that you're doing much better than the overall market by our calculations anyway, so are there specific areas that are accelerating? I don't know if it's ischemic specifically within that category, and that you're really well positioned there. And then just is your ability to bundle this much better than elsewhere? And I guess the real question is, can this business grow upper teens, low 20s for the next couple of years?

Well, it's been growing at that kind of rate for the last few years and this year, you are seeing an acceleration of growth. And what I would attribute it to is we already have fabulous coils, stent retrievers, we're already very, very good. But we've strengthened our portfolio with the flow diverting stent with the surpass of all stent, and with the 0.074, vector catheter, aspiration catheter, so that that for us was a product gap. We didn't have an easy to deploy, empty catheter approach for float diverting stent, and we didn't have a large for aspiration catheter. So we plugged those, let's call them product gaps. And we've had fantastic expansion around the world. And really, the Atlas stent in China, as an adjunctive stent for hemorrhagic is performing exceptionally well and this global business is really, really well run. We have an exceptional leadership team over there that have been executing very well, but I would say the acceleration; let's call it this year's acceleration versus prior years is really driven by this product cycle that really has us covering all of the bases with excellent products that are meeting the needs of our customers.