Peraso Inc. (NASDAQ:PRSO) Q4 2025 Earnings Call Transcript

Peraso Inc. (NASDAQ:PRSO) Q4 2025 Earnings Call Transcript March 16, 2026

Operator: Good afternoon, and welcome to the Peraso Inc. Fourth Quarter 2025 Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference call is being recorded today, Monday, 03/16/2026. I would now like to turn the call over to your host for today’s conference call, Mr. Jim Sullivan. Please go ahead.

Jim Sullivan: Good afternoon, and thank you for joining today’s conference call to discuss Peraso Inc.’s fourth quarter and full-year 2025 financial results. I am Jim Sullivan, CFO of Peraso Inc., and joining me today is Ron Glibbery, our CEO. Today, after the market closed, we issued a press release and a related Form 8-K, which was filed with the Securities and Exchange Commission. The press release and Form 8-Ks are available on Peraso Inc.’s website at www.perasoinc.com under the Investor Relations section. There is also a slide presentation that we will be using in conjunction with today’s call that may be accessed through the webcast link on the Investor Relations website. As a reminder, comments made during today’s conference call may include forward-looking statements.

All statements other than statements of historical fact could be deemed as forward-looking. Peraso Inc. advises caution in reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, adjusted EBITDA, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings, as well as any statements concerning the expected development, performance, and market share or competitive performance of our products or technologies, and any statements related to future financing arrangements or capital transactions and the evaluation or pursuit of strategic alternatives. All forward-looking statements are based on information available to Peraso Inc.

on the date hereof. These statements involve known and unknown risks, uncertainties, and other factors that may cause Peraso Inc.’s actual results to differ materially from those implied by the forward-looking statements, including unexpected changes in the company’s business. More detailed information about these risk factors and additional risk factors are set forth in Peraso Inc.’s public filings with the Securities and Exchange Commission. Peraso Inc. expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Additionally, the company’s press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP.

With respect to remarks on today’s call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense, severance costs, amortization of intangible assets, and the change in fair value of warrant liabilities. These non-GAAP financial measures, definitions, and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related Form 8-Ks which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the Investor page of our website. I will now turn the call over to our CEO, Ron Glibbery, for his prepared remarks. Ron?

Ron Glibbery: Thank you, Jim. Good afternoon, and welcome to everyone on the phone and webcast. We appreciate you joining today’s conference call. We closed out 2025 with a solid fourth quarter that was in line with our guidance range and supported by continued year-over-year growth in millimeter wave product shipments. For the full year, revenue from our millimeter wave products grew approximately six-fold compared to 2024. Together with healthy gross margins, and our disciplined approach to expense management, this contributed to a meaningful improvement in our bottom line results for the year. I continue to be pleased with our team’s execution over the past several. The year-over-year expansion in millimeter wave revenue underscores the growing commercial traction of our 60 gigahertz solutions in multiple targeted end markets.

It also reflects a combination of increased product shipments as well as the ramp of newly secured design wins across both new and existing customers. Notably, we have achieved this while maintaining tight control over operating expenses. Turning to slide four. Fixed wireless access remains our largest and longest served end market. Not only was it the primary driver for our millimeter wave revenue growth in 2025, but we believe that fixed wireless access will continue to be a sizable ongoing market opportunity for our 60 gigahertz millimeter wave technology. We saw a broad recovery in customer demand and order trends throughout the year, which included notable traction for our fully integrated Dune platform as well as our prospective 60 gigahertz millimeter wave modules.

Specific to our Dune platform, we have seen sustained uptake by customers for deployments of high-speed wireless broadband in dense urban environments. The fundamental performance benefits of the integrated platform, including lower cost deployment, low power, long range, and point-to-point-to-point capabilities, continue to resonate with a growing list of wireless Internet service providers that span North America as well as Africa. More broadly, I want to briefly reiterate two significant fixed wireless access customer wins that we secured in 2025. First, in July, we announced that Tachyon Networks had selected Peraso Inc.’s prospective modules for their latest outdoor 60 gigahertz gigabit wireless solution, supporting up to 48 client connections per sector and targeted for cost-effective deployments in both dense urban and rural environments.

Then in September, we announced our renewed collaboration with Wheeling to accelerate cost-effective deployments of a multi-gigabit mesh architecture for business and consumers in dense urban neighborhoods across multiple major U.S. cities. We believe these customer wins position us well for continued growth over coming years. Most recently, in early March at Mobile World Congress, MicroSeq launched its next-generation 60 gigahertz wireless NRA point-to-point product incorporating Peraso Inc. technology. Given this customer’s substantial market share of wireless Internet service providers globally, we believe this product launch has the potential to reinforce our position as a leading provider of 60 gigahertz semiconductors for the fixed wireless access market.

Today, we continue to support a wide span of ongoing proof of concepts utilizing Peraso Inc.’s 60 gigahertz technology with a diverse group of wireless Internet service providers. If additional proof of concepts are converted into deployments, we would expect incremental production orders to support sustained year-over-year growth of the millimeter wave product revenue. Moving to slide five. Beyond fixed wireless access, we have continued to see increased market awareness of 60 gigahertz technology extending to additional end markets, most notably tactical communications. In fact, 2025 marks a significant step forward for Peraso Inc. as we successfully transitioned an initial prospective customer engagement on a conceptual military defense application from an emerging adjacent opportunity to what we now view as a definitive new market vertical with high growth potential.

In April, we achieved the first major milestone toward commercialization within the tactical communications market. This was highlighted by our announced contract to incorporate Peraso Inc.’s 60 gigahertz wireless technology into a leading specialized defense contractor’s innovated and first-of-its-kind deployable system solution for enhanced situational awareness on the battlefield. We delivered initial production shipments in support of our joint solution with this defense customer in June. And then we were pleased to report in November the successful completion of initial field trials. Notably, this initial customer engagement has served to further validate the robust performance of our technology, while also demonstrating why our millimeter wave solutions are particularly well suited for these environments.

Traditional wireless communications are highly susceptible to NME detection and jamming. In contrast, 60 gigahertz millimeter wave can offer stealthy communication characteristics thanks to narrow beamforming, dynamic beam steering, and oxygen attenuation. These characteristics are designed to provide low probability of detection, low probability of interception, and strong anti-jamming characteristics, all while operating in an unlicensed frequency band and avoiding interference with licensed spectrum. Today, the jointly developed solution for enhanced situational awareness is undergoing additional planned field trials with our lead defense contractor. The collective feedback from these trials has been consistently positive and we continue to believe this solution and partnership could represent a meaningful long-term revenue opportunity for Peraso Inc.

Having said that, the progress we achieved over the past year established a strong foundation for broader engagement with our lead customer and for an expanded presence in the tactical communications market. Earlier this month, we were pleased to both name Intact as our lead defense contractor customer and also announced that Intact selected Peraso Inc.’s 60 gigahertz millimeter wave technology for use in its next-generation drone identification friend-or-foe system. Given the significance of this latest win, and new application for our technology, I will turn to the next slide to review additional details. To further highlight this recent win and its validation of our 60 gigahertz millimeter wave technology for mission-critical defense applications, I want to briefly talk about the capabilities that we are enabling for Israeli defense contractor customer.

Intact selected Peraso Inc. technology to serve as the core communications back for its next-generation drone identification friend-or-foe system, engineered specifically for highly contested electronic warfare environments. With the rapid proliferation of drones on the battlefield, secure identification systems are becoming essential to prevent friendly fire incidents and enable safe coordination between unmanned and manned forces. This innovative platform enables secure, real-time, mutual authentication between friendly drones and ground forces, allowing counter-drone systems and battlefield operators to rapidly distinguish friend from foe in today’s increasingly crowded skies. A fundamental characteristic of our 60 gigahertz millimeter wave technology is its secure and directional communications channel.

Additionally, our beamforming wireless transceivers deliver low-power links with extremely low probability of detection, all of which makes our technology ideal for dense battlefield environments where traditional radio frequency signals can easily be jammed and or compromised. Lastly, I want to emphasize that this recently announced mile is a result of an ongoing multi-project collaboration with Intact over the past two years, during which we have consistently demonstrated the readiness of Peraso Inc.’s millimeter wave technology to enable diverse mission-critical military communications applications. Turning to slide seven. While fixed wireless access and tactical communications remain our primary focus area, we continue to see compelling incremental opportunities in adjacent markets.

Many of these adjacent market opportunities originate with a prospective customer approaching us looking for a solution and the significant versatility of our 60 gigahertz millimeter wave technology allows us to solve connectivity challenges they have not been able to overcome using traditional wireless technology. One example that I highlighted on a previous conference call was our first ever production shipment around 60 gigahertz millimeter wave’s unique combination of multi-gigabit data rates for high-resolution video streaming, ultra-low latency for real-time performance, and exceptional power efficiency, which is critical for battery-operated edge AI devices. To highlight another recent milestone, during the fourth quarter, we announced our collaboration with Bayer Wertz.

We are supplying our latest 60 gigahertz perspective modules to power their BX60 platform, enabling multi-gigabit wireless connectivity, specifically designed for robotaxi fleet vehicles and physical AI applications. This partnership directly addresses one of the biggest bottlenecks in autonomous vehicle operations, the need to rapidly offload terabytes of telemetry and high-resolution camera data when vehicles return to depots for charging, while simultaneously delivering software updates. Conventional Wi-Fi and 5G solutions can easily become oversaturated under these demands. The VX60 system delivers breakthrough performance, supporting up to 1 terabyte of data transfer per vehicle per hour, which we believe can surpass the capabilities of traditional alternatives.

As I stated in our announcement, this is exactly the kind of challenge our 60 gigahertz products were designed to solve. Autonomous vehicles and the AI systems that power them process tremendous amounts of data and require immense bandwidth, and that is what our technology does extremely well. This robotaxi application could represent one of the largest scale uses of our millimeter wave solutions to date and further validates the unique value we bring to customers across diverse edge AI applications. Buyerworks and its robotaxi platforms are a perfect example of how adjacent opportunities expand our served addressable market and help diversify our revenue base beyond fixed wireless access and tactical communications. In closing, we are encouraged by the growing market awareness of 60 gigahertz wireless technology and its unique ability to deliver high bandwidth and secure connectivity in congested operating environments.

Our focus for 2026 remains on broadening our customer base and pipeline of design wins across fixed wireless access and tactical communications while selectively pursuing high-growth opportunities in adjacent markets such as edge AI. Combined with our ongoing commitment to disciplined expense management, we believe we are well positioned to deliver continued year-over-year growth in millimeter wave revenue in our operating results over the coming year. Lastly, before turning the call over to Jim, I want to acknowledge a unique challenge that we recently became aware of and which we now anticipate to have a negative impact on our top-line results for the first quarter. Due to an unexpected delay in the receipt of key materials from one of our Asia-based suppliers, which as of today we believe is stuck in customs, we are unlikely to be able to fulfill a significant order that was previously scheduled for shipment during the first quarter.

Although we do expect to fulfill this order during the second quarter, the delayed shipment is anticipated to result in more than $500,000 impact on our anticipated revenue for the first quarter. While we are clearly disappointed by the delayed shipment, I want to emphasize that this is largely reflective of a temporary supplier logistics issue and we remain optimistic about the future prospects of Peraso Inc.’s overall business. With that, I will hand the call over to Jim to review the financials and provide our revenue outlook for the first quarter.

Jim Sullivan: Thank you, Ron. Turning now to the results for 2025. Total net revenue for the fourth quarter was $2,900,000 compared with $3,200,000 for the prior quarter and $3,700,000 for 2024. Full-year 2025 net revenue was $12,200,000 compared with $14,600,000 in the prior year. Product revenue in the fourth quarter was $2,800,000 compared with $3,100,000 in the prior quarter and $3,700,000 in 2024. The decrease in product revenues for 2025 from the comparable period of 2024 was primarily attributable to the reduction in shipments of memory IC products due to previously announced end of life of the products. This was partially offset by a year-over-year increase in shipments of millimeter wave products in 2025. Full-year 2025 product revenue was $11,800,000 compared with $14,200,000 in 2024.

Specific to sales of millimeter wave products, revenues were $2,400,000 in 2025 compared with $3,000,000 in the prior quarter and $200,000 in 2024. Total sales of millimeter wave products for full-year 2025 increased to $9,100,000 from $1,300,000 in 2024. GAAP gross margin was 52.2% in the fourth quarter, down from 56.2% in the prior quarter and compared with 56.3% in the year-ago quarter. GAAP gross margin for full-year 2025 was 58.0%, compared with 51.7% in the prior year. The increase in GAAP gross margin for full-year 2025 compared with 2024 was primarily attributable to increased millimeter wave margins due to increased shipments, and an increase in memory IC product margins due to reduced amortization expense related to intangible assets, which were fully amortized as of 12/31/2024.

On a non-GAAP basis, gross margin for the fourth quarter was 52.2%, compared with 56.2% in the prior quarter and compared with 71.6% in 2024. Full-year 2025 non-GAAP gross margin was 58.0%, compared with 67.2% in 2024. The decreases in non-GAAP gross margin for the fourth quarter and full-year 2025 compared with the comparable periods of 2024 were primarily attributable to reduced shipments of our memory IC products. GAAP operating expenses for 2025 were $2,800,000 compared with $3,000,000 in the prior quarter, and $3,700,000 in 2024. GAAP operating expenses for full-year 2025 were $11,800,000 compared with $20,000,000 in the prior year. The decrease in operating expenses on a GAAP basis from the comparable period of 2024 was primarily attributable to reduced stock-based compensation expense and amortization expense related to intangible assets fully amortized in 2024, as well as a $2,300,000 decrease in severance and software license obligation costs.

Non-GAAP operating expenses, which exclude stock-based compensation, severance costs, and amortization of intangible assets, were $2,700,000 in the fourth quarter compared with $2,900,000 in the prior quarter and $3,200,000 in 2024. Non-GAAP operating expenses for full-year 2025 were $11,300,000 compared with $14,900,000 in 2024. The decrease in operating expenses on a non-GAAP basis for full-year 2025 compared with 2024 was primarily attributable to a $1,800,000 decrease in software license obligation costs, and the benefits realized from previously implemented cost reductions and ongoing cost containment initiatives. GAAP net loss for 2025 was $1,200,000, or a loss of $0.13 per share, compared with a net loss of $1,200,000, or a loss of $0.17 per share in the prior quarter, and compared with a net loss of $1,600,000, or a loss of $0.37 per share in the same quarter a year ago.

Full-year 2025 GAAP net loss was $4,800,000, or a loss of $0.67 per share, compared with a net loss of $10,700,000, or a loss of $3.57 per share in 2024. Non-GAAP net loss, which excludes stock-based compensation, amortization of intangibles, severance costs, and changes in fair value of warrant liabilities, for 2025 was $1,200,000, or a loss of $0.13 per share. This compared with a non-GAAP net loss of $1,100,000, or a loss of $0.15 per share in the prior quarter, and a net loss of $500,000, or a loss per share of $0.13 in the same quarter a year ago. Full-year non-GAAP net loss for 2025 was $4,300,000, or a net loss of $0.60 per share, compared with a net loss of $5,100,000, or a net loss of $1.71 per share in 2024. The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAAP and non-GAAP EPS for 2025 was approximately 9,200,000 shares.

Adjusted EBITDA, which we define as GAAP net income or loss as reported, excluding stock-based compensation, amortization of intangible assets, severance costs, change in fair value of warrant liabilities, interest expense, depreciation and amortization, and the provision for income taxes, was negative $1,100,000 in 2025, compared with negative $1,000,000 in the prior quarter and negative $400,000 in 2024. Full-year 2025 adjusted EBITDA was negative $4,000,000 compared with negative $4,500,000 in 2024. With regard to the balance sheet, as of 12/31/2025, the company had approximately $2,900,000 of cash, compared with $1,900,000 as of 09/30/2025. The net increase of approximately $1,000,000 in the company’s cash balance for the fourth quarter reflected approximately $2,100,000 in net proceeds from sales under the company’s at-the-market offering program during the fourth quarter.

As of today’s call, the company has approximately 12,000,000 shares of common stock and exchangeable shares outstanding. As previously disclosed, the company has been exploring potential strategic alternatives, including a merger, sale of assets, or other similar transaction, as well as various potential sources of additional capital. Aside from confirming that the strategic review process continues to be ongoing, in coordination with the company’s financial adviser, there are no related updates to share on today’s call from what we have previously disclosed. Now turning to our outlook. We remain optimistic about the breadth of customer engagements for our millimeter wave solutions across fixed wireless access, tactical military communications, and other markets.

However, as Ron previously discussed, a large order that was previously planned for shipment in the first quarter is now expected to be shipped in 2026. Given the size of the order, this delay is expected to have a meaningfully negative impact on our revenue forecast for the first quarter. Unrelated to this order, overall visibility into future demand is lower due to a combination of irregular order patterns from our fixed wireless access customers in addition to having multiple new customers that have yet to establish observable order patterns. Based on revenue recognized year to date, and assuming no contribution from the previously mentioned delayed order shipment, the company currently expects total net revenue for the first quarter of 2026 to be approximately $1,200,000.

This concludes our prepared remarks, and we thank you for your time this afternoon. Operator, please commence the Q&A session.

Q&A Session

Operator: Thank you. We will now open for questions. At this time, we will be conducting a question and answer session. You may press star one to ask a question. You may press two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. The first question today is coming from David Williams from Benchmark. David, your line is live.

David Williams: Hey. Good afternoon, gentlemen. Thanks so much for taking my questions, and congratulations on the progress.

Ron Glibbery: Thanks, Dave.

David Williams: Maybe, Ron, first, if you think about that Intact deal, when should we think about the revenues from that beginning to start coming in? And is there any way to size the total revenue opportunity for what you see in front of you here now?

Ron Glibbery: Good question. I mean, really, that revenue is comprised of two components. One is what we call nonrecurring engineering, which is NRE, of course, a onetime payment, and the other is what we call production revenue. We are seeing, I would say, 90% NRE right now, 10% product revenue. I am not sure, Dave. We have not split it out specifically. Maybe I will leave it to Jim to explicitly talk about it. But we see the real shift to what I would call production revenue. As a matter of fact, I just spoke with them earlier today. The real production is going to shift to be in the second half of 2026. So that is what we are looking at right now. We do expect more nonrecurring engineering revenue. Primarily, it is just really adapting this.

One of the primary goals for us is getting the power consumption down, which has taken a lot of effort. But I would say right now, the meaningful revenue is 90% what we call NRE, and in 2026, that will shift into product revenue, and we have real visibility into that. Sorry. Are you still there?

David Williams: Yeah. Sorry about that. Thanks for the color. I could not get my phone off mute. Ron, you also talked about the adjacent market opportunities and clearly a lot of benefits there. Is there a way to quantify the number of customers that you are in active conversations with? And maybe provide a little color on the different segments where you think that could move quickly into an order or potentially production?

Ron Glibbery: So, the number of customers there, we are really looking at maybe on the order of three to five. But the difference is they are really more household names, I would say. Again, confidentiality prevents me from explicitly saying, but certainly Fortune 100 companies, if you will. The feedback to us is the sooner, the better. Take the robotaxi situation, for example. Again, these vehicles collect information all day long. They get back, they have to recharge, they have one hour to download a terabit of data, and then go down to the data center and process it, and then send new algorithms back up to the vehicle. Now if it was just one vehicle, that is one thing. But if it is 100 vehicles, for example, the real challenge is the aggregate throughput here, not just one vehicle, but hundreds of vehicles.

To answer your question, this customer would take our existing silicon. I could see us being in production at the end of this year, frankly. But we could even see ourselves going into next-generation chips with this customer because the feedback from the customer is the demand is limitless. So we are really hoping that we can get these devices into production later this year, early 2027. Now the other thing I will mention is, I really want to shout out to this customer that we did a press release with called Barworks. They have a very sophisticated software solution that we have been working on for several years, frankly, probably three or four years, and they are a key partner for us. I think what we have done a very good job of is those partnerships where we do not have to invent the entire system, and we work with smart partners to facilitate some of these opportunities.

That is a good example of how I would summarize the demand for very high data rate systems and doing that in a congested environment. Our existing silicon addresses that, and I could see us get into production at the end of this year and into 2027. I hope that answers your question.

David Williams: It does. Thanks again. And let me ask one more question if you do not mind. Just given the state of current affairs and the current conflict, I am curious if you are seeing inbound interest there. It seems like the technologies that we are using today could do some advancing. It seems like you might have a solution that could be very beneficial for us, especially on the drone application. Are you seeing that, and can you talk about your go-to-market strategy in that market? How you are going to the market, if you are waiting for those to come to you, and that development there? Thanks.

Ron Glibbery: I have to say when we did the last press release last week with our drone partner, it was a company in Israel called Intact, and Intact, again, a value-added partner who has developed, in conjunction with us, this friend-or-foe identification system. One of the main evolutions we have seen in warfare over the last two years is this idea of drone swarm and the sky is getting cluttered with drones. Militaries need to identify friend or foe, and they do not want to be shooting their own drones out of the sky. Alternatively, they do not want drones shooting their own people on the ground. That is the real traction. I mean, this really started out as an infantry solution, but clearly, drone interest has exploded here. Without getting into detail, we are definitely seeing an explosion—no pun intended—of interest in terms of that solution for friend-or-foe identification, which is a classic problem, frankly. But we have come a long way in solving that.

David Williams: Thanks, and best of luck.

Ron Glibbery: My pleasure.

Operator: Thank you. Once again, it will be star one if you wish to ask your question today. The next question will be from Kevin Liu from K. Liu and Company. Kevin, your line is live.

Kevin Liu: Hi. Good afternoon, guys. Maybe just starting with your—just wanted to start with your FWA business. You talked about the resurgence you saw in sales to customers last year. As you talk to them, where do you think inventory levels are with those customers, and when would you expect to see more growth or a return of orders from those folks? Got it. And just with respect to that large order you referenced, I am curious if the delay in timing from Q1 to Q2 impacts order patterns for the remainder of this year, or was this a fairly significant order that would cover the full year anyway?

Ron Glibbery: Frankly speaking, we were hoping for this large shipment in Q1 with MicroTig. For many of our customers, we are expecting to see those orders get replenished in Q3 and Q4, so we are standing by for that. I would say, for many of our customers, that is the timing we are looking for. Obviously, it is almost Q2 now, so we expect to see those orders come through in Q2 and Q3 and the rest of this year. It will just get into queue and make an orderly push with our orders for the rest of the year. I think it will have an impact, but we are only looking at a couple of weeks, so it is not going to be an extremely material impact. We are looking at probably two to three weeks in terms of our order pipeline throughout the year.

Kevin Liu: Understood. With some of these newer opportunities you are winning, particularly with Intact, is there any increase in investment you plan to make either on the R&D side or elsewhere, and how might the ramp-up affect your gross margins as those move to production?

Ron Glibbery: We have had a policy over the last couple of years, Kevin, to charge the customer. We do not make a lot of profit on the engineering, but our view is if the customer wants the solution, they have to pay for it. We are not in a position to really bet on the come. These projects, I would say, almost universally, the customer is making a significant contribution to the engineering and the R&D effort. I see that continuing. We are just not in a position where we can really bet on the come. It also validates the market because if the customer is financing that, he believes in the market himself. That is our operating strategy right now, and we see ourselves continuing with that.

Jim Sullivan: Yeah. And, obviously, that is funding our R&D expense and personnel costs, etcetera. Also, we generally come out of it with another product or another version of the product to bring to market. If the NRE combined with production orders are large enough, in some cases, the customer has exclusivity, although we work with the customer on that because they also want to see us sell it elsewhere to bring down pricing, rather than just to them. If they do not hit numbers, etcetera, then we address it. That is the other area where we work on expanding our product portfolio with contribution from a customer, which is worthwhile.

Kevin Liu: Okay. Appreciate all the color there. It sounds like there is a lot of good traction in some of these new markets, so good luck as you make your way through the year.

Jim Sullivan: Thank you.

Operator: Thank you. I show there are no further questions in the queue at this time. We will conclude today’s conference call. Thank you for your participation, and you may now disconnect.

Ron Glibbery: Thank you very much, everyone. Bye-bye.