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Thursday, May 7, 2026 at 4:30 p.m. ET
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Image source: The Motley Fool.Thursday, May 7, 2026 at 4:30 p.m. ETNeed a quote from a Motley Fool analyst? Email pr@fool.comContinue reading
Image source: The Motley Fool.
Thursday, May 7, 2026 at 4:30 p.m. ET
CALL PARTICIPANTS
- Chief Executive Officer — Jennifer Lloyd
- Chief Financial Officer — Nancy Erba
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TAKEAWAYS
- Revenue — $108.3 million, representing a 3% year-over-year increase and a 5% sequential rise from Q4 2025.
- Non-GAAP EPS — $0.25 per diluted share for the quarter.
- Industrial Segment Revenue Growth — Up 23% compared to the prior year; achieved 15% sequential increase.
- Consumer Segment Revenue — Down year over year from the 2025 base due to tariff-related pull-ins, but up 17% sequentially as appliance inventory normalized.
- Communications and Computer Segments — Delivered seasonal sequential declines in Q1, with outlook for percentage growth in Q2 attributed to recovery off seasonal lows.
- Non-GAAP Gross Margin — 53.5% for the quarter, up 20 basis points sequentially and at the midpoint of guidance.
- Non-GAAP Operating Expenses — $45.3 million, below the outlook range of $45.5 million to $46.5 million.
- Non-GAAP Operating Margin — 11.7%, an increase of 200 basis points from the previous quarter.
- Free Cash Flow — $18 million for the quarter.
- Inventory Reduction — Inventory decreased by $4 million, with days on hand reduced by 21 days to 292; channel inventory declined by half a week to 8.9 weeks, approaching the target of 8 weeks.
- GAAP Restructuring Charges — $6.6 million recognized, mostly for severance; $6.2 million in OpEx, remainder in cost of goods sold.
- Automotive Segment Developments — In production or design engagements with 17 of the top 20 EV manufacturers; on track to double automotive revenue from last year; $100 million automotive revenue target reiterated for 2029.
- Product Pipeline and Strategic Initiatives — Launched TinySwitch-5 and TopSwitch GaN, with broad market ramp and refreshed architectures aiding both new and legacy customer engagement; Mike Balo appointed SVP of Worldwide Sales.
- Data Center Market Activity — Two new Q1 design wins at Taiwan customers serving U.S. data center equipment manufacturers; ongoing collaboration with NVIDIA for 1,250- and 1,700-volt GaN in new 800-volt DC architectures.
- High-Power Segment Wins — Secured key Q1 design wins in 6-megawatt wind turbines for a European customer and a STATCOM application for India; about 40% of high-power revenue derived from renewables, battery storage, and high-voltage transmission.
- Q2 Revenue Guidance — Forecast $110 million to $120 million, an 8.5% sequential increase at the midpoint.
- Q2 Non-GAAP Gross Margin Guidance — Estimated 54%-55%, with improvement driven by manufacturing efficiencies, volume, and dollar-yen exchange rate movement.
- Q2 Non-GAAP Operating Expense Guidance — Anticipated $47 million plus or minus $0.5 million, incrementally higher due to annual merit increases effective in April.
- Q2 Non-GAAP Operating Margin Guidance — Projected between 13.5% and 15.5%.
- CapEx Plan — Plan for capital expenditures of 5%-6% of revenue during 2026, with heavier weighting in the second half of the year.
- Data Center Serviceable Addressable Market (SAM) — Management estimates data center SAM, including rack and grid applications, will exceed $1 billion by 2030.
SUMMARY
Management cited “increase in order activity” and forecast “seasonally higher revenue in the second quarter along with higher gross margin.” The company highlighted ongoing product diversification in industrial, automotive, and data center markets, underpinned by new customer wins and expanded engagements, especially in GaN and high voltage. The Q1 restructuring shifted application engineers from Marketing to R&D, reallocating approximately $3 million of expense, and aims to further align product development with customer requirements.
- Mike Balo was introduced as SVP of Worldwide Sales, bringing sales leadership experience from onsemi, Infineon, and Cypress.
- Management stated that “all of the markets will be up” sequentially in Q2, but Consumer growth is expected to be “flat to slightly up” due to continued appliance weakness offset by seasonal air-conditioning strength.
- The majority of future data center market opportunity is expected to be GaN-based, supported by “we are engaging across the whole data center ecosystem—hyperscalers, server OEMs, rack providers, and power-supply providers—and we are finding opportunities across all of those.”
- Customer feedback indicates rising addressable content per EV for Power Integrations’ products, with content projected to “approaching $100 per vehicle over the next several years.”
- Manufacturing, inventory, and capital allocation decisions are being managed with “ROI-based discipline” governing both short-term and long-term investment priorities.
INDUSTRY GLOSSARY
- GaN (Gallium Nitride): A wide-bandgap semiconductor material enabling high-efficiency, high-speed power conversion, especially in high-voltage and high-frequency applications.
- Flyback topology: A power conversion circuit architecture using a transformer to provide galvanic isolation and energy storage, commonly used in low- to medium-power switched-mode power supplies.
- POWI GaN technology: Power Integrations’ proprietary Gallium Nitride platform tailored for high-voltage, high-efficiency integrated circuits.
- SCALE and SCALE-2: Brand names for Power Integrations’ families of gate-driver modules for the control of high-voltage semiconductor switches in power electronics.
- SAM (Serviceable Addressable Market): The subset of the total addressable market targeted by a company’s products based on current capabilities and offerings.
- STATCOM: An abbreviation for Static Synchronous Compensator, a grid-connected power electronic device used for voltage regulation and reactive power compensation in transmission systems.
- CapEx: Capital expenditures, representing funds used by a company to acquire or upgrade physical assets such as property, plant, or equipment.
- OpEx: Operating expenses, the ongoing costs for running a business’s core operations.
- BOM (Bill of Materials): The comprehensive list of components, parts, and materials required to build a specific product.
Full Conference Call Transcript
Jennifer Lloyd: Thanks, Joe, and thank you, everyone, for joining us today. I am pleased with how we have started the year with Q1 revenue of $108 million and non-GAAP earnings of $0.25 per diluted share. Industrial was the main driver of revenue growth again this quarter, up 23% year over year. Consumer revenue was down compared to 2025, which had been unusually strong due to tariff-related pull-ins in appliances. However, we saw a 17% sequential increase in Q1 as that inventory build appears to have cleared.
Looking ahead, while visibility is somewhat hampered by ongoing macro uncertainty, we have seen an increase in order activity since our last earnings call, and we are forecasting seasonally higher revenue in the second quarter along with higher gross margin. Just as importantly, we are making good progress on our strategic focus areas: customer centricity, streamlining our product pipeline for time to market, and operational and organizational efficiency. Firstly, we are improving alignment between our commercial and engineering teams to bring the customer’s voice closer to our product development process. Reinforcing this customer commitment, earlier this week, we announced the addition of Mike Balo to our leadership team as SVP of Worldwide Sales.
Mike is a veteran sales leader with deep experience in power, having led the sales organizations at onsemi, Infineon, and Cypress. I am excited to have him on the team, and I am confident that he will both strengthen our existing relationships and help us expand our customer reach in markets like data center and automotive. Secondly, we are streamlining our product pipeline to accelerate time to market on the projects most tightly aligned with our target markets and long-term strategy. And finally, we are implementing organizational changes to drive operational effectiveness and redirect resources, both functionally and geographically, to the opportunities most critical to our long-term growth.
Although it will take time for these changes to be reflected in our results, I am encouraged by our progress. Over time, you will see product releases with quicker time to revenue based on earlier customer engagement and improved alignment between our products and customer needs. For example, our new TinySwitch-5 is off to a strong start with a wide range of designs set to ramp in the second half of the year. We also expect a nice ramp with TopSwitch GaN, which we introduced at the APEC show in March. The TinySwitch and TopSwitch names are well known in the power-supply industry with billions of units shipped and an embedded base of designers accustomed to using these proven architectures.
Even as we pivot toward the AI data center, industrial, and automotive markets, we are refreshing these existing product families to sustain and grow core markets like appliances, where reliability and efficiency are highly valued and dollar content is rising along with appliance power levels. The addition of a PoE GaN switch more than doubles the power capability of the TopSwitch architecture to 440 watts, so designers can now use this classic flyback topology for a wider range of designs than ever before. The flyback topology offers a variety of benefits, including smaller board footprint, faster design cycles, high standby efficiency, and lower component count.
In fact, a flyback power supply can save up to 30% on both component count and BOM cost compared to the more complex topologies typically used above 200 watts. TopSwitch GaN is already opening doors for us at new customers designing high-power chargers for industrial applications, drones, and e-bikes, where flybacks now have access to sockets that have historically been off limits. We are also seeing strong engagements at appliance customers, many of whom have been using TopSwitch for years and are excited to realize the efficiency benefits of GaN in their designs.
In automotive, we are currently in production or in design engagements with 17 of the top 20 EV manufacturers, and we are on track to double our automotive revenue this year. In the first quarter, we won a new emergency power-supply design with China’s second-largest EV OEM, and as mentioned on last quarter’s call, we also began production in Q1 at a major German carmaker using a platform developed as part of its joint venture with a U.S. EV OEM. As we continue to accumulate wins for inverter power supplies, we are also expanding engagements with customers for next-gen EVs featuring micro DC-to-DC converters.
These power supplies will bypass the 12-volt batteries used in today’s EVs, instead powering subsystems directly from the main high-voltage battery. We are also developing products for higher-power sockets such as onboard charging using our 1,250-volt GaN technology. As we expand our automotive product portfolio to address evolving EV architectures, we see addressable dollar content rising from single-digit dollars today to tens of dollars in the near term and approaching $100 per vehicle over the next several years. Our high-power business, which sits in the industrial category, continues to grow at a healthy pace, driven by a diverse set of verticals, including electric rail, renewables, oil and gas, and power-grid applications, including DC transmission and power quality.
Key design wins in Q1 included a design for 6-megawatt wind turbines at a European customer and a STATCOM power-conditioning design for an Indian customer. Lastly, turning to everybody’s favorite topic, data center. We continue to pursue multiple paths to growth with our unique POWI GaN technology. Our ongoing collaboration with NVIDIA includes a variety of sockets utilizing our 1,250- and 1,700-volt GaN technologies in forthcoming 800-volt DC architectures. We continue to gain share in aux power supplies for today’s data centers, winning two new designs in Q1 at Taiwan customers serving U.S. equipment makers. We also have ongoing customer engagements on upcoming higher-power GaN products for rack-level AC-to-DC conversion.
The data center rack is one of the most attractive opportunities in power semiconductors today. We believe our differentiated GaN technology gives us a significant competitive advantage, and customers are looking to us as they develop long-term roadmaps calling for higher voltages and improving power density. But our opportunity in data center goes beyond the rack. The demands that data centers are placing on the power grid are just as important and challenging, and we are well positioned to respond with our high-power products. Power grids are rapidly evolving to support the estimated 200 gigawatts of power needed for data centers by 2030.
Renewable energy, including dedicated installations for data centers, is certain to become a bigger part of the energy mix, accompanied by battery storage to ensure consistent availability. High-voltage transmission lines will deliver renewable energy to the grid or directly to the data center, and solid-state transformers will convert power at the front end of the data center to be delivered to the rack. The value of our gate-driver product is proven in renewable energy, battery storage, and high-voltage transmission, which together accounted for about 40% of our high-power revenue in the first quarter. We have a strong offering for solid-state transformers as well, with a differentiated driver solution for silicon-carbide modules.
We have a variety of data center–related customer engagements underway in high power, and we anticipate that opportunities related to the data center buildout will add hundreds of millions of dollars to our SAM for gate-driver products in the years ahead. Altogether, we estimate that our data center SAM, including rack and grid applications, will exceed $1 billion by 2030. In closing, the opportunities ahead of us grow more attractive by the day as markets demand more of the technology and system expertise that PI has developed over many years. We are a pure-play high-voltage company with foundational technologies like POWI GaN and SCALE gate drivers, backed by deep system expertise.
We are building an organization capable of turning our foundational advantages into long-term value for our customers and shareholders. Now I will turn it over to Nancy for a review of the financial highlights.
Nancy Erba: Thanks, Jennifer, and good afternoon. Before I cover our results, I would like to direct you to the supplemental information shared with our press release this afternoon. There you will find many of the financial details we normally share in our prepared remarks, in addition to a GAAP-to-non-GAAP reconciliation. We had a very solid start to the year, with Q1 delivering revenue growth with key financial metrics at or better than our outlook. We also improved our balance sheet as we generated $18 million of free cash flow and reduced inventory both on the balance sheet and in the channel. Revenue was $108.3 million, up 3% from a year ago and 5% versus Q4 of last year.
Our Industrial business continues to perform well, with sequential growth of 15% in Q1. The Communications and Computer categories were seasonally down, while Consumer revenues were up 17% sequentially with the recovery in appliances. Turning to gross margin, non-GAAP gross margin was 53.5% for the quarter, right at the midpoint of our outlook range, up 20 basis points sequentially. While end-market mix was favorable, we saw less benefit from the yen-dollar exchange rate in Q1 due to the stronger yen in the early part of 2025. As a reminder, there is currently about a one-year lag between fluctuations in the yen and the resulting impact on our P&L.
Non-GAAP operating expenses were $45.3 million, coming in below our outlook range of $45.5 million to $46.5 million. This resulted in non-GAAP operating margin of 11.7%, up 200 basis points from the prior quarter. Expanding our operating margin is an important priority for us. We are tightly managing the investment decisions that drive our customer-focused technology development and product roadmap addressing the highest-growth markets. During our Q1 restructuring activities, we evaluated our engineering resources across the organization and determined that, in order to better drive the roadmap requirements of our customers, certain engineers previously accounted for in our Marketing organization would be more fully dedicated to development work and moved into R&D.
These changes were effective at the time of the restructuring in early February and resulted in approximately $3 million of R&D expense in Q1 that would previously have been included in SG&A. All investments in SG&A are evaluated with the same rigor. Continuing down the income statement, non-GAAP net income was $13.9 million, or $0.25 per diluted share. Our GAAP results include $6.6 million of restructuring charges, primarily consisting of severance payments related to the restructuring activity in February. Of that, $6.2 million was in GAAP OpEx, with the remainder in cost of goods sold. Turning to the balance sheet and cash flow, cash flow from operations was $20 million for the quarter, while CapEx was $2 million.
Our 2026 plan still calls for CapEx of 5% to 6% of revenue for the year. We are applying the same ROI-based discipline to capital decisions that we are to operating expenses and expect to see CapEx more heavily weighted to the second half of the year. Inventory decreased by $4 million during the quarter, while days on hand fell by 21 days to 292 days at quarter-end. Our target is to bring days on hand below 200. Channel inventory also declined during the quarter, falling by half a week to 8.9 weeks and nearing our target of 8 weeks. I expect further improvement in both metrics throughout the year. I will now review the second-quarter outlook.
We expect revenue to be between $110 million and $120 million, which would be up 8.5% sequentially at the midpoint. Communications and Computers should have the largest increases in percentage terms, coming off of seasonal lows in Q1, with Industrial also up sequentially. We expect a sub-seasonal quarter from Consumer, with positive air-conditioning seasonality offset by ongoing headwinds in major appliances. I expect non-GAAP gross margin to improve sequentially, with a range of 54% to 55%. At the midpoint, that would be an improvement of 100 basis points from Q1, primarily due to manufacturing efficiencies and volume-related benefits of the higher revenue as well as the dollar-yen exchange rate.
Non-GAAP operating expenses will be sequentially higher in Q2, a range of $47 million plus or minus $0.5 million. The increase from Q1 mainly reflects annual merit increases, which took effect in April. I anticipate that OpEx in the second half will remain roughly flat with the Q2 run rate, putting us on track for low single-digit growth in 2026. Our intent is for OpEx to grow at a rate of less than half of revenue growth over time. Finally, I expect non-GAAP operating margin to be between 13.5% and 15.5%. In closing, I am encouraged by the demand we are experiencing in the first half of the year and that the markets we compete in appear largely healthy.
We are excited by the opportunities in front of the company and focused on the long-term growth drivers in data center, automotive, and industrial. Importantly, we are continuing to stay agile, cognizant of the macro and geopolitical uncertainty we operate within, and we will continue to manage the business accordingly. After a full quarter in the CFO role, I am confident in the direction we are heading as a company and our ability to achieve faster growth, improved profitability, and increased shareholder value. I would like to thank the PI team for their continued commitment to innovation and to customer and execution excellence, and to our partners, customers, and shareholders for their continued cooperation and support.
And now, Alexandra, let us open for Q&A.
Operator: We will now begin the question-and-answer session. To withdraw your question, press 1 again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Christopher Rolland with Susquehanna. Your line is now open. Please go ahead.
Christopher Rolland: Thank you for taking my question. I guess starting out, Compute and Comms have been disappointing for quite some time, but particularly in March. I know there is some seasonality there. How are you thinking about these markets going forward? They are obviously kind of sub-scale at this point in time. Maybe you can talk about your strategic plan for these moving forward. Are you deemphasizing these markets? How should we think about them and maybe the mix of end markets moving forward for you?
Jennifer Lloyd: Okay, great. Thank you, Chris, for the question. In terms of Compute and Comms, in Q1 we do expect that to be seasonally a low quarter, so we are expecting those to be seasonally up in Q2. You are correct that they are two of the smaller of our market areas. In terms of strategic plan and whether we are deemphasizing, we are not deemphasizing those areas. We continue to look at those as areas where there is opportunity. I talked in the prepared remarks about TopSwitch GaN and TinySwitch-5 serving applications across the spectrum of our market segments, so we continue to nurture those areas.
For the year, they are not the biggest growth drivers, but they are also not the largest part of our business.
Christopher Rolland: Perhaps on your favorite topic, AI. You had some great detail on aux power and solid-state transformers, etc. But could you talk about GaN and maybe even silicon opportunities, but mostly GaN? How are engagements going on the main power? As we think about the power-train applications, are we talking about interest in power-delivery boards or IBCs or power supplies? Where are you getting the most interest? And are there any applications I left out that you might be engaged in for your GaN portfolio?
Jennifer Lloyd: Thank you for asking about our favorite topic. It is going great. I want to emphasize that the aux and the SST opportunities are the shorter-term opportunities for us, but we do have ongoing engagements for those as well as for GaN. We are seeing real pull for our high-voltage GaN technology for the high-voltage architectures, the 800-volt architecture in particular. Our GaN works natively at 800, 1,200, 1,250, and 1,700 volts and offers a simpler design. Even in our discussions with NVIDIA a couple weeks ago, we are learning about additional sockets where our technology is a great fit.
In terms of where there is the most interest, we are engaging across the whole data center ecosystem—hyperscalers, server OEMs, rack providers, and power-supply providers—and we are finding opportunities across all of those.
Operator: Your next question comes from the line of Ross Seymore with Deutsche Bank. Your line is now open. Please go ahead.
Ross Seymore: Thanks for letting me ask a couple of questions. My first one, in the near term on the Consumer segment: I know you split the air-conditioning versus the white-goods side, but the appliance market does not sound so great if you listen to Whirlpool and others. When you say that is sub-seasonal in the second quarter, what do you mean? Is it still going to be up, or will it be down? And how do you think you address that market over time? If the market is weaker, do the inventory dynamics allow you to still grow, or is that going to be a challenge that lasts a little bit longer?
Nancy Erba: I will take that one. As I said in my comments, all of the markets will be up, although on the Consumer front it will be very modestly up—so think flattish. That is a balance between the pressure on appliances that you referenced and some offsets within our portfolio. Net-net, flat to slightly up. Certainly, other markets are growing faster in Q2 from the standpoint of both dollars and percentage. We are really pleased with the demand we have seen thus far in the first half and the continued strength we are seeing in Q2. Net-net, a good first half, and we are off and running through the year.
Ross Seymore: Following up on the AI side, how do you envision the time to market for the different opportunities—whether it be the percentage of your business that you think it will represent this year, next year, and the year after—or if you want to talk about the aux and the SST side versus some of the bigger ones? How should we think about how those fold in? Just timing-wise, not necessarily magnitude.
Jennifer Lloyd: Thank you, Ross. The aux opportunities are happening now, and we continue to see a sequencing of opportunities. There are continuous new designs in this space for aux and SST, and we discussed a couple of those wins. For high voltage, we know that is longer term for us. That is not next year; that is in a couple of years. What is encouraging is the continuous sequencing of wins, so we are expecting that as those 800-volt systems come online, there is going to be momentum from what we already have and continued momentum from the new systems.
We continue to evaluate and size the opportunity as we go quarter to quarter, and as mentioned, we expect the data center SAM to be at least $1 billion by 2030.
Operator: Your next question comes from the line of David Williams with Needham & Co. Your line is now open. Please go ahead.
David Williams: Good afternoon, everyone. Thanks for letting me ask the question. To continue on the data center topic, you talked about it being maybe a $1 billion possible TAM for you all. How do you think about the GaN portion of that specifically? If you can, speak to the level of engagements you are having today. Clearly, you have one of the highest-power capabilities in the market. I would presume that you are leading those discussions, but just curious how that traction has been going specifically on GaN and how you see that from a size perspective.
Jennifer Lloyd: Thanks, David, and by the way, congrats on the move. In terms of GaN, we really do see the bulk of that being GaN. It is a split between inside the data center and outside the data center; the outside-the-data-center portion would be our gate-driver product family. Inside the data center, where we really have the advantages, is with GaN. So we see that as mostly GaN.
David Williams: Thanks for the color. On the automotive side, it sounds like you are making some really nice progress. In the past, prior leadership talked about this being a multiyear strategy, but it feels like your strategy is helping drive penetration and you are building product roadmaps toward your customers. How do you think about automotive and how that is developing for you? How should we think about revenues over the next 12 to 24 months from that auto segment?
Jennifer Lloyd: We are making good progress. We are winning designs; as you know, we have talked about wins in the inverter emergency power supply. That is not huge revenue, but we are seeing engagement. We are looking at expanding into other parts of the automobile and expanding our BOM content. The market has been slow, and we have talked about some push-outs; that revenue for us is going to push out. As we build up additional sockets, that will accelerate growth. We put a $100 million target out there for 2029, and we still feel like we are making good progress toward that.
Operator: A reminder, if you would like to ask a question, press 1 again. Your next question comes from the line of Tore Svanberg with Stifel. Your line is now open. Please go ahead.
Tore Svanberg: Thank you, and congrats on the progress. My first question is on the restructuring and moving some people from Marketing to Engineering. I want to understand that a little bit better. I assume these are more technical sales or marketing people. You talked about improving time to market by being closer to customers with R&D. If you could explain the changes, that would be great.
Jennifer Lloyd: Thanks, Tore. Yes, those are technical resources, and I will let Nancy talk about it.
Nancy Erba: Sure. We talked about this on the last call. As part of the restructuring, we are going line by line and evaluating our resources: how do we shift to be more customer-focused? These are application engineers that were previously sitting in Marketing. With Chris Jacobs joining and emphasizing how we get closer to the customer and bring that input in, we found those resources should be more prioritized and focused toward the product-development piece of their work. At the time of the restructuring, effective February 1, we made that move, and we will continue that forward.
The other piece is ensuring those resources are focused on the right products—prioritizing dollars to the most important markets we serve and to the products that are going to give the highest ROI. There is a lot of work happening to make sure the portfolio is tightly aligned to what we are hearing from customers and what we need to deliver to the market over the coming years.
Tore Svanberg: A follow-up on inventory, both internal and the channel. You are trying to get internal inventory down to 200 days and channel to eight weeks. Beyond demand, are you doing anything else to get to those targets, especially on the channel side? When could we potentially be back to those numbers?
Nancy Erba: We are not doing anything unnatural in the channel. Demand in the first half is good and broad-based, as we discussed. As we see revenue progress through the second half, we would expect to exit at that eight-week level, potentially a little below—it will depend on the demand environment at the time. On the inventory we hold on our balance sheet, we are putting a very concerted effort on that. That is cash, the way I look at it. We have an ongoing cadence reviewing inventory, and the approval process to bring anything new in goes through the same ROI rigor that we are applying across the company—whether OpEx, inventory, or CapEx.
The team has responded well, and we are seeing great execution. Expect the inventory on our balance sheet to continue to step down as we move through the year.
Operator: There are no further questions at this time. I will now turn the call back to Jennifer Lloyd for closing remarks.
Jennifer Lloyd: Thank you, everyone, for joining us today. I am really optimistic about the opportunities ahead of us. Electrification, AI, and the rapidly transforming power grid are set to drive demand for advanced high-voltage semiconductors for many years to come, and PI is well positioned to capitalize with a strong technology foundation and a deep well of expertise in high voltage. In just a matter of months, we have assembled a transformational leadership team capable of translating innovation into sustainable, profitable growth. I want to thank our investors, our customers, and suppliers for partnering with the PI team. Thank you, and good afternoon.
Operator: This concludes today’s call. Thank you for attending. You may now disconnect.
