Yahoo Finance

Charles Liang

Thank you, Michael. Thank you, everyone, for joining us.
As previously announced, our fiscal Q3 net revenue totaled $4.6 billion, coming in lower than our original forecast. This decline was primarily due to a customer waiting and evaluating AI platforms between the current hub and upcoming (inaudible) GPUs, leading to a delayed commitment.
We expect many of these engagements to materialize in the June and September quarter, strengthening our confidence in meeting our long-term growth target, as we close out this eventful fiscal year.
Despite macro economic conditions and tariff impact, our ability to expand the market share in IT and AI remains strong.
On the earnings (inaudible), our fiscal Q3 non-GAAP EPS stood at $0.31 per share, compared to $0.66 last year. This time, it was largely driven by an inventory write-down of old-generation GPU and related components, while the new platforms are finally ramping quickly, about now.
Although our quarterly performance did not align (inaudible) with our expectation, we successfully fulfilled our commitment to regain financial regulatory compliance. At the same time, we continue to enhance technical innovation and development, which results in successful high-volume delivery of our new-generation AI platforms at the end of March.
Looking ahead, some major background new innovation are set to service the market in this quarter and the new fiscal year, especially our (inaudible).
With a clear time-to-market advantage, Super Micro, once again, lead AI [ecostructure] (inaudible) solutions. This strong position enable us to explore new opportunities and expand the market share.
During the quarter, we achieved volume shipment of (inaudible): 10 (inaudible), (inaudible) NVIDIA (inaudible) systems, both are exactly the first for the market again, as well as (inaudible) rags. Additionally, we start to a [OPPO] (inaudible) solutions to further broaden our AI portfolio.
Leveraging our system building blocks, we will, again, over time-to-market on the upcoming new platforms such as NVIDIA, (inaudible), and AMD MI50 platforms this summer for customers seeking leading technology, more optimized, higher density and (inaudible) solution.
Building our strong foundation of technology leadership, building product solution and (inaudible) computing (inaudible), we have been deeply focused on developing the industry's first end-to-end AI IP data center total solution.
We are now about fully ready to share these exciting news with the market, in the coming days, by launching our blending Data Center Building Block Solution, we call it DCBBS, featuring our second-generation system (inaudible) technology, we call it, BLC pool.
With DCBBS, we are able to dramatically shorten customers' efforts to build a data center, reduce their cost, and most importantly, (inaudible) data center, data quality, and performance, (inaudible) and with higher availability.
DCBBS consolidates political components, including AI service systems, storage, (inaudible), all different kinds of switches, BLC systems, water tower or dry tower, (inaudible), power sale, battery backup unit, (inaudible) BBU, on-site deployment, (inaudible) design, cabling, and data center end-to-end management software, and all different scopes of services into a streamlined process.
The true value of DCBBS lie in its ability to reduce power consumption, optimize space, and decrease water usage, delivering up to 30% lower TCO. More importantly, it accelerates new data center deployments and upgrade existing data center in a matter of months or even weeks, rather than many quarters or years, driving significant improvement in data center time-to-(inaudible) , we call TPDP; and time-to-[online], TPO.
One of the key components of DCBBS is our industry-leading PLC solutions. Super Micro remains at a forefront of driven industry adoption of PLC technology, direct cooling technology, setting new standards for performance, efficiency, and sustainability.
Last year, we shipped 4,100 (inaudible) AI drag equipment with PLC, helping our customers reduce energy costs by up to 25% or even 30%. We are committed to double this volume in the coming year, further amplifying the impact of wind computing.
With the upcoming PLC (inaudible) technology, Super Micro will be able to deliver even greater savings and benefits to our customers. For example, in the same power and water, up to 40%; and reduced data center noise (inaudible), down to about 50 BP. That is almost quite a library.
We are going to announce the detail in the coming days.
Green computing can be everywhere. And with our [PLC-2 ] solutions, we are making that (inaudible) a beautiful reality. Our long-term investment and leadership in PLC has solidified a sustainable competitive edge, providing economics of scale and keeping us far ahead of competition.
Our global operations continued to expand when our new Malaysia campus began shipping product to partners. Meanwhile, our facility in Taiwan and Europe are scaling up their capacity and capability, providing customers with flexible options for their logistical choice and minimize their cost build in the market and tariff uncertainties.
To further strengthen the pool for key partners and aligned with government initiatives, we continue to expand our US domestic manufacturing capacity, including new facility in the Midwest and other locations.
This strategic expansion will allow us to meet rising demand, while continuing to enhance our commitment in quality, security, and TCO PTD and PTO.
In summary, fiscal Q3 was dynamic and productive. We successfully to navigate the financial challenge while continuing to strengthen our leadership in (inaudible) and technology innovation. Our first-to-market advantage in AI infrastructure, along with the expanded reach of DC (inaudible) solution and advancement in TLC technology further solidify our industry position.
I remain highly confident and optimistic about our long-term strong growth and market share gain. However, near-term macro economic and market uncertainty makes it difficult to precisely forecast the pace and technology adoption.
Despite this, I'm confident that we were close to the fiscal year on a strong note. Even with the current condition, we anticipate Q4 revenue of at least $6 billion. And we'll resume providing a broader forecast range, once we have better visibility.
Before passing the call to David for the financial overview, I want to thank you all for our partners, customers, investors, and Super Micro team members and express my deep appreciation for their continued support.
With that, I will now turn the call over to David.

David Weigand

Thank you, Charles.
Fiscal Q3 2025 revenues were $4.6 billion. This was up 19% year over year and down 19% quarter over quarter. Q3 revenues were down quarter over quarter, as certain new platform decisions by customers moved some sales into Q4 and later.
AI GPU platforms again represented more than 70% of revenues, with AI GPU customers in both the enterprise and cloud service provider markets.
Our design win pipeline remains robust. And we expect continued growth in Q4, as we ramp up production of our Data Center Building Block Solutions, DCBBS, based on new GPU platforms.
As a leading US technology company, we focus on extensive rack scale and DCBBS technology and capacity investments in the US, which is complemented by our investments in Taiwan, the Netherlands, and Malaysia.
As Charles indicated, we have a flexible global manufacturing footprint to meet our customers' needs. And we continue to closely monitor the rapidly evolving macro and tariff environment.
During Q3, we recorded $1.9 billion in the enterprise channel vertical, representing 42% of revenues versus 25% last quarter. This was up 3% year over year and up 38% quarter over quarter, as we saw strength in enterprise adoption of new AI and CPU platforms.
The OEM appliance and large data center vertical revenues were $2.6 billion, which represented 57% of Q3 revenues versus 75% in the last quarter. This was up 35% year over year and down 38% quarter over quarter.
Two existing CSP/large data center customers represented 22% and 14% of Q3 revenues.
Emerging 5G telco edge IoT revenues were $48 million or 1% of Q3 revenues.
Server and storage systems comprised 97% of Q3 revenue and subsystems and accessories, the remaining 3%.
By geography, the US represented 60% of Q3 revenues; Asia, 30%; Europe, 6%; and the rest of the world, 4%. On a year-over-year basis, US revenues increased 3%. Asia increased 77%, Europe decreased 3% and the rest of the world increased 83%.
On a quarter-over-quarter basis, US revenues decreased 20%; Asia increased 76%; and Europe decreased 69%; and the rest of the world increased 45%.
China continued to represent less than 1% of sales in Q3.
The Q3 non-GAAP gross margin was 9.7%, which was down 20 basis points quarter over quarter, from 11.9% in Q2, primarily due to higher inventory reserves for older generation products, lower volume, and accelerated costs to enable time to market for new products.
Q3 operating expenses, on a GAAP basis, decreased 3% quarter over quarter and increased 34% year over year to $293 million. On a non-GAAP basis, operating expenses decreased 5% quarter over quarter and increased 30% year over year to $216 million.
Q3 non-GAAP operating margin was 5%, compared to 7.9% in Q2 due to lower revenues and gross margins.
Other income and expense for Q3 was a net expense of $31.7 million, consisting of $13.4 million in interest expense, principally from convertible bonds; and other losses of $18.3 million, principally from a non-cash $3.3 million loss on the amendment of the 2029 convertible bond and adverse foreign exchange impact and other miscellaneous expenses offset by higher interest income.
The GAAP effective tax rate was 5.1%, resulting in a GAAP tax expense of $6 million for Q3. The non-GAAP effective tax rate for Q3 was 15.5%, resulting in Q3 non-GAAP tax expense of $36 million.
Q3 GAAP diluted EPS of $0.17 and Q3 non-GAAP diluted EPS of $0.31 was lower than our guidance due to lower revenues and gross margins.
The GAAP fully diluted share count for Q3 was $622 million and the non-GAAP fully diluted share count was $636 million.
Cash flow generated from operations for Q3 was $627 million , compared to cash flow usage of $240 million during the previous quarter.
The Q3 closing inventory was $3.9 billion, which increased by 7.6% quarter over quarter, from $3.6 billion in Q2. as we prepare for higher shipments in Q4.
CapEx was $33 million for Q3, resulting in free cash flow of $594 million during the quarter.
During the quarter, we amended the terms of our existing 2029 convertible notes and raised $700 million in gross proceeds in a new 2028 convertible note from the existing convertible investor group. The proceeds from the new convertible note offering will be used to strengthen our working capital, enable continued investments in R&D, and expand global capacity as needed.
The closing Q3 balance sheet cash position was $2.54 billion, while bank and convertible note debt was $2.49 million resulting in a net cash position of $44 million versus a negative net cash position of $479 million last quarter.
Turning to the balance sheet and working capital metrics: compared to last quarter, the Q3 cash conversion cycle was 124 days versus 104 days in Q2. Days of inventory increased by 3 days to 81 days compared to the prior quarter of 78 days due to key component purchases for higher expected Q4 shipments.
Day sales outstanding increased by nine days quarter over quarter to 56 days, while days payable outstanding decreased by 8 days to 13 days.
We are closely monitoring the macro environment, tariffs, and the technology transition to new platforms.
The outlook for the fourth quarter of fiscal 2025 ended June 30, 2025: we expect net sales in the range of $5.6 billion to $6.4 billion, GAAP diluted net income per share of $0.30 to $0.40 and non-GAAP diluted net income per share of $0.40 to $0.50.
Given this dynamic environment, we are being prudent and expect gross margins to be approximately 10%.
GAAP operating expenses are expected to be approximately $319 million and includes $74 million in stock-based compensation expenses that are not included in non-GAAP operating expenses.
The outlook for Q4 of fiscal year 2025 fully-diluted GAAP EPS includes approximately $63 million in expected stock-based compensation expenses, net of tax effects of $18 million, which are excluded from non-GAAP diluted net income per common share.
We expect other income and expenses, including interest expense to be a net expense of approximately $16 million.
The company's projections for Q4 GAAP and non-GAAP diluted net income per common share assume a GAAP tax rate of 14.9%, a non-GAAP tax rate of 16.5%; and a diluted share count -- fully diluted share count of 628 million for GAAP and 642 million shares for non-GAAP.
We expect CapEx for Q4 to be in the range of $45 million to $55 million. For the fiscal year 2025 ending June 30, 2025, based on the Q4 guidance above, we are expecting revenues of $21.8 billion to $22.6 billion.
Michael, we're now ready for Q&A.

Michael Staiger

Great. Victoria, let's go to Q&A.

Question and Answer Session

Operator

(Operator Instructions)
Samik Chatterjee, J.P. Morgan.

Samik Chatterjee

Maybe, for the first one -- I know in your prepared remarks, you mentioned that the macro is making forecasting a bit tougher and you're talking about prudence in your guidance itself. But maybe you can share what you're hearing from your customers. Are customers already talking about pulling back some orders? Or is there any change in customer order trends that you're seeing because of the macro?
And given just where we stand, relative to the June quarter or (inaudible) month, I would assume you would have more visibility into the June quarter, rather than having to put some level of consumerism in. So have you seen a lot more volatility, in terms of customer orders recently to drive that prudence, in terms of the revenue outlook for June?
And I have a follow-up, please.

Charles Liang

Yeah. Very good question. Basically, June will be our traditional strong quarter. And for sure, no tariff and macroeconomy and uncertainty that concerns some customers.
But at this moment, we see a strong order. So I believe we will have a strong quarter for June. And September, next fiscal year, will be even stronger because our new product -- especially, Blackwell -- is fully in volume production now.
So we gain more and more order for Blackwell and expect strong growth to start from now.

Samik Chatterjee

Okay. Got it. And, maybe, for my follow-up on the gross margin side: Previously, you had talked about margins improving as you start ramping new products, where it sounds -- the guidance itself implies a bit more cautiousness on that front.
Has there been a change in the pricing landscape for the new products that you're seeing in the market? Or is this more about the tougher pricing environment for Hopper-based products?

David Weigand

I think it's a combination of concern about tariffs. And so, there's conservatism there? And, also, with some -- obviously, also some impact from the changeover in technology platforms.

Samik Chatterjee

Sorry. Just to clarify: in terms of the changeover that is driving some headwinds to the gross margin, the changeover itself from Hopper to Blackwell?

David Weigand

That's correct. As you come off of some of the older platforms, you have more price competition.
And as we said, we had some delayed decisions because of these technology platform changes.
And so, that's really impacting that, along with tariff uncertainty -- drives a little bit more prudence in setting margin expectations. .

Operator

Michael Ng, Goldman Sachs.

Michael Ng

I was just wondering if you could talk a little bit more midterm about your demand outlook. Are you -- and apologies if I missed it -- reiterating the $40 billion revenue target for fiscal '26? And, perhaps, you can talk a little bit about any changes that you'll be seeing from demand perspective, aside from the timing of the technology platform transition and the macro uncertainty.

Charles Liang

Yeah. We remain very confident with our midterm and long-term growth. Especially Blackwell product line, we have a very strong demand. And, also, our commission DCBBS, Data Center Building Block Solution, we see a lot of customers really interested in our data center total solution.
So the demand growth will keep strong.
And yes, the tariff and some macro economy uncertainty: we, at this moment, do not provide a guidance for fiscal year '26. But when the visibility becomes more clear, we will share at that time.

Michael Ng

Great. Charles, that's very helpful. And just as a follow-up, can you talk about whether or not you're seeing differences in demand between HGX versus NBL 72 racks. Any differences there, either in customer demand or your ability to fulfill demand on either product?

Charles Liang

Yes. We see a strong demand for kind of GP (inaudible) 72 and (inaudible) liquid cooling. But the customer liquid cooling data centers basically are little (inaudible).
So that's why they are waiting there; waiting that it'd be more than what we expect.
However, the solution -- (inaudible) soon. And we do see that the schedule is getting a much more exciting.

Operator

George Wang, Barclays.

George Wang

Charles, just a question on the GB 300. Any differences in terms of value-add from Super Micro, just in terms of customization and, potentially, more services attached, with the presumed (inaudible) media potentially open up the components -- more open standards for the GP 300 that could lead to better margins for Super Micro? Do you agree? Just any kind of puts-and-takes there?

Charles Liang

Yeah. I guess whenever the new technology -- it's always putting more chance to Super Micro. As you know, our (inaudible) system, for example, we are the first to have the product available and demand is strong.
So (inaudible) for sure, we expect a very strong demand. And we saw very mature liquid cooling solution.
We have PLC solution start to ship last year, 4,000 racks. And this year, with our DLC division 2, it offers even better power saving, water saving, and also much better in terms of noise level, right?
So we believe (inaudible), our technology advantage will be even more clear. And we are excited to see (inaudible) in the coming summer.

George Wang

Okay. Great. Just a quick -- if I can squeeze in -- maybe, for David, and also for Charles.
Just in terms of top 2 customers this quarter, combined percentage was a bit lower versus last quarter. So is this because of quarter-to-quarter lumpiness volatility? Or is there anything else you want to call out, in terms of customer contribution a bit lower?

David Weigand

Yeah. I don't think there's any trend, George. It's just the timing of shipments.
But we don't have any concern about --

George Wang

Just to follow up, any outlook of for the top 2 customers in the next few quarters? Any high-level thoughts? And any other customer set you, guys, are expecting to (inaudible) and pop up?

Charles Liang

Yeah. We believe our business will continue to grow much faster in the coming quarters.
I hate to mention -- but still, in December quarter last year and March quarter, we got some impact from the cash flow from the (inaudible)-day impact. But that's already behind us.
So, now, we have a much better cash flow. And we are ready to grow much quicker now, especially with the new technology.

Operator

Asiya Merchant, Citigroup.

Asiya Merchant

I know there's a lot of uncertainty with tariffs, et cetera. But is there something that you talk to us -- or see how investors -- AI diffusion rules, there's a lot of investor angst around that. How are you, guys, thinking about your visibility and how the order should flow through, given AI diffusion could impact or possibly could impact your revenues?
And then, I have a follow-up.

Charles Liang

Yeah. At this moment, we see our demand continue to grow. And that's why we continue to expand our facility in USA, in Taiwan, and in Malaysia.
So, overall, our technology didn't age, especially -- we do continue to see that demand will continue to grow stronger.
(multiple speakers) impact the demand a little bit. But, overall, we will continue to gain market share.

Asiya Merchant

Okay. And then, if I may, on gross margins, again. Can you just help us understand how you're thinking about the margins, especially as you expand on your DLC version 2. Just how we should think about gross margins in calendar -- fiscal '26, sorry?

David Weigand

Yeah. We're not going to give forecast for next year, at this meeting. But what I can tell you is that we have published before what our target margins are.
But right now, we've got some of the headwinds of -- like you mentioned, the diffusion rules coming up in mid-May. We have tariffs that we have to find our way through. And so, those things are certainly headwinds.
But on the other hand, we still have the majority of our business from our US customers. We're a US-based manufacturer. And so, we think that we're well positioned in the marketplace on all of those fronts.
But we don't -- we also, being a first-to-market provider of the latest solutions, think we have an edge there. So we think that we're as best positioned as someone in the marketplace can be.

Operator

Ananda Baruah, Loop Capital.

Ananda Baruah

Really appreciate it. Two, if I could. This would be for Charles and for Dave.
You, guys, made mention of ongoing ramp, as Blackwell supply comes on. And so, should we assume that the September quarter looks up sequentially from the June quarter? And just along with that -- this is not my follow-up -- like when -- during Hopper ramp, you had multiple quarters, that's not accurate, you had two quarters of 70% sequential growth; you had a 40% sequential growth quarter, during the Hopper ramp.
So not like a forecast, but are those -- you have 30% up here in June, off of the soft market. So the question is: order of magnitude, can you be up -- you say you'll be up September quarter, again, as Blackwell ramps.
And, like, those copper order of magnitude, sequential increases, Charles, through cycle, is that the type of thing that you sound so when you talk excitedly about the (inaudible) potential. Is it that order of magnitude that you think is possible to get back to at some point, as you go through Blackwell cycle?
And then, I have a quick follow-up as well.

Charles Liang

Yeah. Thank you for your question. Yes, you are right.
I believe March quarter, we were soft. The major reason because technology transition. Not just people waiting for a Blackwell solution but, also, we have a lot of write-down for the (inaudible).
So looking forward, I hope we can repeat the Hopper history -- start to grow from June and September and December quarter. I believe so. I hope so.

Ananda Baruah

Okay. That's great. And then, my follow-up is actually more of a technical question.
You mentioned in your prepared remarks, Charles, about liquid cooling, the HCXB200s. And the question is: How many HCXB200?
And then, if you want to give early comments about the B200. How many HCXs are you actually seeing you can stack in liquid pool? I'm wondering how many GPUs are folks able to stack a liquid cool with HCX?
I'm interested in seeing how close you can get -- folks are getting that to the MVL72?

Charles Liang

Yes. For Hopper, as you know, air cool, work fine. But we'd like to prove. We want to establish the liquid cooling technology.
So we try to promote a (inaudible) liquid cooling for Hopper. And we successfully shipped about 4,000 rack DLC to the market.
And so far, the 4,000 rack run very reliable; customer up our TSC solution a lot. So we gained a lot of experience.
And, now, our DLC solution is much mature than last year. And that's why we further prepare to promote DLC 2.
Our DLC 2, second-generation DLC, we are up from the first generation. And we will have a big promotion in next few days or next few weeks.
So with Blackwell, our DLC solution is fully ready. And we will provide a base DRG solution to the world to have a customer save power, save water, save money; and, also, improve our data center performance.
So we have a very strong confidence for the liquid cooling, especially for Blackwell and future products.

Operator

Nehal Chokshi, Northland.

Nehal Chokshi

I just want to make sure I understand the inventory reserve that occurred in the March quarter? And then, is there any expectation that there will be inventory reserve in the June quarter? And is that part of the 10% gross margin guidance?

David Weigand

Yeah. As mentioned in our pre-release and also in this release, the inventory reserve reduced our margin by about 220 basis points. Most of that was caused by taking a reserve for some of the older inventory products.
And so the -- certainly, we're watching, very closely, our inventory products. However, as mentioned, the substantial reason for the expected reduction in margin is really caution or prudence regarding tariffs.
I want to point out that, by the way, that we've -- through three quarters, we have $16.2 billion in revenues. That was versus last year's 4fourquarters of $15 billion.
And so, we're very happy with where we are on the performance cycle, even though we expect even better.

Charles Liang

Yeah. To simplify, I would like to share. For March quarter, we have a 200-point impact from the reserve, right?
But the June quarter may be, I hope only 100 points or less. And September quarter, I hope close to zero.

Nehal Chokshi

Okay. And so, just this inventory reserve that you're taking as a charge, that basically means -- if you look at the impact of 200 basis points for March where that basically equates to $100 million. And then, you had a $1 billion shortfall on revenue.
And so, does that basically mean that some percent of that shortfall just isn't finding a new home? Or does that mean that that shortfall is being resold in the June and September quarter at a lower price?

David Weigand

Yes. I mentioned that some of the revenues that we expected in Q3 were platform decision-based. So that means, actually, that people are moving to the newer platforms in the upcoming quarters, okay?
And so, what that means is that in cases where people change their minds on platforms, we have to write the expected realizable value of those ,take a reserve for those, and do our best to sell them at more competitive prices.

Operator

John Tanwanteng, CJS Securities.

Jonathan Tanwanteng

I was wondering if you could expand on that platform decision a little bit more. Is it customers declined to take Hopper and decided to move to Blackwell? Is it something else? Is that what I'm hearing?
And was it due to design or demand performance considerations? Or was there something else going on with, maybe, data center constraints or something like that?

Charles Liang

Yeah. Our customer base is a bit different from the other competitor, right? Most of our customers are technology-leading company. So that's why new product is very sensitive to them.
And reason is, now, Blackwell solution is fully ready. So we are excited to ramping up (inaudible).

Jonathan Tanwanteng

Okay. Great. Charles, I also wanted to touch on something you mentioned before, just with one of the biggest US server manufacturing operations.
Can you just talk about your relative strength there and positioning in US domestic manufacturing versus your competitive set? And how much of an advantage is that when you are seeing tariffs going up across multiple industries? And is that providing you any more additional demand? Or is that too hard to see, right now?

Charles Liang

Yeah. As a US company, we are able to especially manufacture in Silicon Valley. We are able to respond to new technology much quicker and efficient than others; especially with better performance, better solution like DLC2, right?
And as to the tariff impact because the tariff program is not quite settled down yet, we are watching carefully and try to adjust our logistics and our operation as efficient as possible.
(inaudible), we have a (inaudible) operation in USA and in Taiwan and in Malaysia now, as well. So when the tariff program settle down, we should be able to quickly respond to optimize the base solution for customers.

Operator

Nicholas Doyle, Needham & Company.

Nicholas Doyle

On for Quinn Bolton. Can you just talk about your supplier allocations? Are you seeing the same GPU allocations for Blackwell, as you have for Hopper? How is your supply change, as more competitors enter the market?

Charles Liang

Yeah. Still some allocation matter, right? Some customer won Blackwell, right away. And we had to wait for our allocation.
So that situation is a little bit better than Hopper timeframe. But, still, some constraint there.

Operator

Mehdi Hosseini, Susquehanna.

Mehdi Hosseini

I'm a little confuse with capacity. I see the slide that capacity has remained around 5,000 racks per month. But your CapEx has been aggressive. Can you help me reconcile the CapEx and existing capacity?
And I have a follow-up.

Charles Liang

Yeah. Our capacity remained very huge. 5,000 racks per month. And then, 2,000 racks can be GB 200 (inaudible) 72-high-performance drag.
And so, we are very fully ready for when that demand ramp up. And that's why when Blackwell become more mature, much better year rate, then we are fully ready for -- especially for our BLC 2, a much better cooling solution.

Mehdi Hosseini

But Charles, how does that 5,000 per month today compared to like six months ago?

Charles Liang

Indeed. For USA, we have a 5,000 racks per month since six months ago. But, now, we are growing in Taiwan and Malaysia (inaudible), as well.

David Weigand

Well, I was just going to say: we haven't fully enabled Malaysia, as of yet; which we will be by the end of this year -- it will be fully enabled for larger-scale (inaudible) production.
Yes. I think that's what you were driving towards (multiple speakers).

Charles Liang

(inaudible)

Mehdi Hosseini

Where are we with the CFO search?

Charles Liang

When company continue to grow, for sure, we need more manpower. So we continue aggressively looking for more talent, including CFO position.

Operator

Thank you. That concludes today's call.
Thank you for your participation. Enjoy the rest of your day.