Welcome to TASER International, Inc. Q4 2014 Earnings Conference Call. [Operator Instructions]. I would now like to introduce your host for today's conference Chief Executive Officer, Mr. Rick Smith. You may begin, sir.

Thank you. Good morning to everyone. Welcome to TASER International's fourth quarter 2014 earnings conference call. Before we get started I'm going to turn the call over to Dan Behrendt, our CFO to read the Safe Harbor Statement.

Thank you. Statements made on today’s call will include forward-looking statements including statements regarding our expectations, beliefs, intentions or strategies regarding the future, including statements around projected spending. We intend that such forward-looking statements be subject to the Safe Harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding TASER International Incorporated. These estimates and statements speak only as to the date which they are made, are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. All forward-looking statements that are made on today’s call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in our press release we issued today and in greater detail in our Annual Report on Form 10-K for the year ended December 31, 2013 under the caption Risk Factors. You may find both of these filings as well as our other SEC filings on our website at www.taser.com. And with that, I will turn it back over to Rick.

Thanks, Dan. As a reminder to everyone on the call we’re going to be accepting some questions via Twitter during the Q&A portion of the call. To follow our updates on twitter during the call follow the account @taser_ir. For those of you without Twitter I will update some graphics streamed directly to our investor relations website at investor.taser.com. The conclusion to 2014 was yet another record company [ph] for the quarter solidifying a record year that we’re excited to discuss with you today. We also have a lot of exciting developments and new data points to share with investors on today's call. First consolidated revenues grew 17% year-over-year to 46.8 million continuing the streak of record course. This marks the 12th straight consecutive quarter of year-over-year top line double digit growth. We continue to work hard to aggressively grow the top line and are eager to continue to show our progress and successes throughout 2015. Bookings related to our AXON and evidence.com products saw tremendous growth this quarter reaching 24.6 million which is growth of 372% over the fourth quarter of 2013. For the past several quarters we have talked about continuing momentum and new milestones and the fourth quarter is no different. Consolidating the top tier of the market to be on the AXON system continues to be our number one priority in this segment. The Los Angeles police Department was our first customer to purchase the new Officer Safety Plan which was actually something we developed in close collaboration with them. LAPD was very proactive in their valuation and procurement of on officer cameras and we’re thrilled to be partners with such a large agency who is considered to be a thought leader within the law enforcement community. They are taking the first steps to ensure their…

One of the things that TASER has benefited from its having a Founder as CEO because they usually take a long term approach to running the business. TASER has always had that in our DNA but as the company has grown we have made a concerted effort to formalize that as a philosophy and ensure we communicated to all of our stakeholders, investors, customers and our employees. We believe that using a longer time horizon to make business decisions will directly result in increasing shareholder value as well as increase the total market value of the company. We believe that by investing to obtain, extend and solidify a market leadership position we will create a public safety platform that we can leverage to create a powerful economic model. Our emphasis on the long term directly influences decisions that we make and it's guided by few principles that we feel are best suited for us to create the preeminent technology company in the worldwide public safety market. During last quarter's call we spoke about the runway success that TASER enjoyed at the IACP conference with our Don’t be a Dinosaur theme, over the last couple of months we have had the opportunity to quantify that bit, over 2500 customers went through our booth experience and we added 21% to our pipeline opportunity from this single event. Further we have seen a 43% increase in pending trial and the evaluation programs at the end of the fourth quarter sequentially from the third quarter ending the fourth quarter with over 200 open T&E programs. We continue to hear over and over from our customers that no one at IACP had the proven scalable end to end system that we have spent the last six years developing with AXON and EVIDENCE.com. Others will try…

Thanks, Luke. So in the fourth quarter, consolidated sales were $46.8 million, a 17% increase from the fourth quarter of 2013. The increase in sales was primarily driven by total law enforcement smart weapon sales of 20.4 million partially offset by the lower legacy X26 sales which fell by 4.4 million versus the prior year. As a reminder we have ended the life of X26 e-legacy product but will still support warranty at handles we will be focusing solely on the smart weapons platform this year. Cartridge sales also had a strong quarter increasing 2 million over the prior year. Overall the weapons segment sales increased 2.9 million or 7.7% over the prior year's fourth quarter with fourth quarter total sales of 40.5 million. In the AXON segment AXON camera revenue increased 3.1 million compared to the prior year and service revenues for the AXON segment increased 0.8 million to 1.5 million in the fourth quarter compared to prior year. Overall the AXON segment sales increased 3.9 million or a 159.4% over the prior year fourth quarter with fourth quarter 2014 sales of 6.4 million. On an annual basis the weapon segment grew 18.1 million or 14.2% over the total 2013 sales of a 127.5 million finishing the year with a 145.6 million of sales for 2014 and the AXON segment grew 8.6 million or 82.6% over the total 2013 sales of 10.4 million finishing the year with 18.9 million of sales in 2014. Overall sales grew by 26.7 million or 19.4% finishing the year with 164.5 million of sales which is a new record. A significant contributor to the overall growth in 2014 was the strong performance in the international part of the business. The company has been investing heavily to grow the international business and in 2014 w…

[Operator Instructions]. I'm showing our first question or comment coming from the line of Steve Dyer with Craig Hallum. Your line is now open.

Luke, I think you said your average monthly revenue pool per software seat was $26 which seemed low, given, what you appear to have been booking lately - how has that trended - maybe if you us - what was that a year ago, for example?

Actually that has trended up, I think part of it is just as we - certainly we’re seeing the larger agencies grab a day towards more advance offerings which drives that up. But there are certain amount of the bookings especially that P&L get by the levels of service include future camera upgrades, that doesn’t count in that sort of monthly recurring revenue. We’re counting that at sort of getting deferred on the balance sheet. So there is about $15 and a lot of those contracts is getting deferred which may be the reason why the booking numbers seems high compared to what you’re seeing in the monthly recurring revenue.

Okay, and I think you had said 80% again, I'm looking more for trends here, 80% of the deals signed or the camera sold in Q4 had the E.com subscription and I think 87% or 88% of those had five year, how has that trended, I guess anecdotally seems like when this first started the attach rate was much, much lower 40% or 50%, is that consistent with what you're seeing?

Yes that’s definitely trended up both in the amount of the - attachment rate is certainly up over time, and then the number of five year deals continues to the increase. So I think we’re seeing customers - I think we’re doing a better job of convincing customers across all sort of strata of the market. I think we have always had really good attached at sort of large customers, the trouble we had is sort of the smaller customer service through telesales. We’re having a harder time getting attach rate; we have put a number of programs in place in order to get a higher attach rate across all the market. In Q3 we had about 75% attach rate so that’s gone up to 80% and then almost 90% of the customers taking five year deals is certainly up as well.

Like to dig into the investment spend a little bit, is that primarily sales, is it software? It seems like maybe on the bigger deals with the enormous agencies, there is more customization required there. Maybe it's not quite as much of an off the shelf solution. Can you give a little bit more color of what you're spending on? And then secondly a couple of years ago you guys did a big kind of an investment spend and then that number came down pretty considerably. Is this sort of a shorter term year or two type surge to sort out land grab this thing or is this sort of the new level that we grow off from?

So on the SG&A side, we feel that there is the market is happening now for body cameras and we are winning 90% of the deals that we’re in. We feel by adding additional channel resources we can capture additional market share, and we believe this is the time to invest, so we can consolidate the market and really our core belief is we want to get this people on the platform so we can capture that reoccurring revenue stream, walk them up to the pricing tier and then also have the potential to add on additional applications as we develop them. So that’s why we’re increasing the spend on the SG&A side. On the R&D side, we really feel that we have got an opportunity to build and become the preeminent technology in law enforcement and these features that we’re creating by having the same talent, that we said, Google or Dropbox, we’re able to create transformational value for our customers where it's not iterative but they are capturing real efficiency gains and getting police officers out on the street and this is something that philosophically we’re getting advice from Bret Taylor, the Former CTO of Facebook and Hadi Partovi, are saying we have never seen a company that has enough good engineers and you should be strategically building up a world-class engineering department and they will continue to create additional features that we can upsell to and also position us in a competitive advantage where it's going to be very difficult for our competition especially in the law enforcement space to catch up and I will maybe turn it to Dan on terms of--

I think that’s exactly right. I think it captures the R&D side, I think on the SG&A side I think it's just, we want to make sure that we continue to have as many people in customer facing roles that we can make sure that we’re in front of every opportunity that post-sale we have good account management and people are helping make sure we have the great experiences and every customer is referenceable. We want to capture this entire market, as a result we don’t want to concede any sales due to lack of cover. So we’re going to make sure we’re investing not only to make sure we’re gaining the sales but also to make sure that once people have bought the product they have great experiences and expanded programs over time.

I want to chime in last time, there is a fundamental difference between bubble in R&D back in 2008ish time frame versus what you’re seeing today. I would say back then we were moving into a new space and we invested very heavily early on. And frankly some of that was learning curve for us and we cut back because I think partially we were early to the market and frankly we made some hiring and other mistakes. I think we tried to grow the team to fast, this is very different from the position that we’re in today. If you just do the math on the last quarter, we are at a bookings run-rate of a $100 million in this business and it's growing in the 100s of percent year-over-year. So the business is scaling. The team that we’re hiring now is very dialed in. Again we have - this is not new to us anymore. We have been through the learning curve, so I wouldn’t expect though that this is a bubble in R&D that’s going to like sort of come up and then absolute levels of R&D come down, that’s not likely to happen. What I think you’re going to see happen is that team is going to continue to not only build out the revenue stream that’s existing today but we see - virtually the biggest problem we have got right now is picking which adjacent software opportunities we go after because there are still many that we could build out in this platform. So having that team I think it is going to enable us not only to meet the needs of our big customers today and we’re not doing one-off customizations of any major significant, what we’re learning from these big agencies is there is just a lot of additional workflow but they are pretty similar across the different agencies. So don’t take it if they were doing one-off customizations, that’s not what's going on. We’re building out the product to be more robust as we have gotten to better understand our customers. So, I think the R&D spend is here to stay for the long term but that’s what building the business at the levels that we’re seeing and we think in addition to the business we have built right now there is a couple of adjacent ones that this same team could continue to go after in the future.

Could you give maybe some examples of those adjacencies, are those things that the departments and law enforcement is asking you for or maybe how do we think about the progression of those?

Yes. I would say at this point for competitive reasons, we don’t want to telegraph, what we see the next expansions to be. But I just don’t think we want to comment exactly where we go you yet other than we will just say if you look at the spend our customers make technology, we estimate it's in the $15 billion a year sort of range and that’s far larger the size of our company today but we’re the disruptive force that’s coming into these industry, these cloud hosted business models have ripped through industry after industry and when you think about, mobile, cloud, wearables these tech trends that are massively disrupting other spaces, we’re the disruptors with the best tech platform.

Yes. I would say one investment that we have made in R&D that’s paying off now would be integrations. So the capability for the agency and we talk a little bit about that earlier to pay for an integration with our RMS system. What this does this is it deeply seats our software product into their workflows. The other features that we have been investing in our network features where they can do external sharing would DAs or other agencies. We believe that this is integral to our platform strategy. This software platform play, if you want to look to a comparison company Salesforce did a phenomenal job capturing a seat with their CRM system, and then it allowed them to introduce new revenue streams, 1 to 2 to 3 years later as they kind of captured that consolidated platform and that’s a company that we emulate in terms of creating kind of the public safety cloud platform.

Last question for me and then I will hop back in the queue as it relates, I think you said you’re winning 90% of the deals including virtually all the major departments. Has anything changed on the competitive landscape, is it getting more crowded, less crowded and when you don't win a deal is there a typically common denominator as to why you wouldn't win it? And I will hop back in the queue. Thanks.

When we don’t win a deal I say that it's typically because there is either - like it's an agency that has some pre-existing they have got an in-car system that they have heavily invested and they just decide maybe we want to keep this stuff on premise. So if we lose I would say that in terms of the competitive landscape, one thing that’s shifted pretty dramatically is two years ago everybody in the digital admin space, basically our competitors are all hardware vendors for the most part, they give away software or sell it at very low cost, they get very small software teams. So two years ago the competitive landscape was - those TASER guys were kind of crazy with this cloud thing, you’re a law enforcement agency, you can't put your data in the cloud you need to keep it on premise. We have seen that flip a 180 degrees where our customers are now realizing information security is a specialized field that the part that we and the partners we put together are bringing information, security practices and technology that individual agencies can't do on their own. So I would say our competition has given the fight against the cloud and so everyone of our competitors are now saying, well we’re going to have a cloud platform too. I would just point out, we know what it's like to transform from a hardware company to a software company, it's not easy. The level of talent and time and investment it takes is significant. So we’re delighted to see all of our competitors following suit, we just thing it has validated our business model but we feel very well-positioned to win. But that’s another reason to make the big investments. Luke, had a comment at one of our business meetings, it's a whole lot easier to take the hill when there is no one on the hill rather than if the market fragments defragmenting it later it would be far more expensive and difficult. So that’s why we need to take advantage of our unique position now to consolidate the market.

And our next question or comment comes from the line of Paul Coster with JPMorgan. Your line is now open.

This is Mark Strouse on for Paul. So a follow-up to Steve's question on it. You said you're winning about 90% of deals that you go after. But if we think just sticking with the U.S. to start, if we think about the total units that are out there - I guess just trying to see what you peg your market share, I mean you guys are obviously having great success with the larger agencies but some your competitors quite have thousands of agencies that are using their our solution. So I think from the percentage of agencies is interesting but if you have anything from a percentage of units that would be really helpful.

Yes, so we probably won't talk specifics, although I would say we understand our market very well in terms of the distribution of officers in the agencies and if you look at where the majority of the officers sit, 65% of the officers sit in agencies that have more than a 100 police officers and that’s where the majority of our focus has been. So it's a little bit misrepresentative if you were to look at number of agency count. There is probably 10,000 agencies that have less than 50 officers and out of those majority of them might even have less than 10 officers. So we’re focusing the majority of our time on the top kind of 1200 accounts where the majority of the officers sit. That’s not to say we’re not also focused on the bottom end. We have a teller team that focuses there as well. So we feel that in the deals that we’re in we’re very successful and that’s part of the reason that we’re increasing the spend in SG&A to get additional channel coverage.

Yes I would pipe in as well, one of our competitors, some of them have tried to do a pretty good job sort of saying well we sold a bunch of cameras historically and we’re in 1000s of agencies, off these are non-public companies there is nowhere to verify those claims. We haven't seen them win any deals of significance in recent history, so if we were looking at like that market that’s happening today, we’re very confident. We have a very dominant market share and we just have 5000 agencies using EVIDENCE.com platform, that’s over a quarter of U.S. law enforcement. We don’t think there is anyone else approaching anywhere near that scale. And if you add in the TASER cams, historically we now have over a 100,000 cameras in the field. So we’re very confident, we’re winning the big agencies and we’re doing well in those small agencies but that’s - we have some agencies that have gone out and bought cameras on Sky Mall, they have bought them in consumer outlets, they bought some either from some competitors, if they have an in-car system they have bought one maybe from their in-car vendor. That is an area we’re looking to tune up as well to make sure that we’re working more deals in the lower end of the market. We don’t want to leave any part of this market untouched, but the big ones are going to be the leaders.

And then maybe since you gave us and ask for a mile here, thanks for the guidance on the OpEx and 1Q but if we look at the year now, I mean how should we think about that, I think your OpEx in 2014 was up in the high teens percentage growth should we be thinking similar magnitude year-over-year in 2015?

I would say that we’re going to continue, obviously we want to give some sort of directional information here at least for Q1, I think we will continue to build for those levels. I think part of the gaining factor for us will be the high bar we have for hiring but I think as we continue to find top quality engineers and top quality sales people and other folks that will help create a great customer experience for our customers, we’re going to continue to hire throughout 2015. So I do expect that those expenses will continue to rise throughout the year.

And then last one for me, I appreciate Rick's comments about the hypothetical operating margins for AXON in the quarter, but on a GAAP accounting basis it kind of apply to your last two or three quarters, I'm just kind of curious in 2015 is that revenue scales up obviously with the investments so if we should expect that to stay at these levels or if we can from a GAAP perspective anyway if that should continue getting better?

That’s a tough question to answer, I would say that as you model out, certainly we’re seeing the revenues go up and that the problem in our business is that the GAAP revenues, I know obviously we’re going to continue to focus on that it's sort of a lagging indicator. So we’re sort of focused on the leading indicators which are bookings and I think as long as we continue to see the strengthen in bookings that gives us the confidence to make those investments even though on a GAAP basis it may not look great in the near term, we think we’re building a really very strong, very profitable business for the long term.

And our next question or comment comes from the line of Glenn Mattson with Ladenburg Thalmann. Your line is now open.

Just two quick ones, I know it's late, the camera supply issue you said you had enough supply to satisfy your forecast but what about if there was any upside to that forecast like if you get big wins like large agencies that are out there, is there any concern should demand exceed, what you’re currently forecasting?

We’re obviously managing that very closely, that is something that we’re keeping eye on. We do feel like we have got enough cameras to satisfy the forecasted sales for this year. We’re working hard from a supply chain perspective to make sure that we have enough cameras to satisfy demand even if we get some of those upside orders but it is something we’re addressing and feel like we have got a good team in place working hard to make sure we continue to satisfy the demand as it comes.

Okay. And then I guess secondly just conceptually I think you guys have been doing such a great job especially in the U.S. gaining market share that you know it's interesting to see the increased spend because I think a lot of people are kind of already assuming that you’re going to win large majority of the U.S. maybe the wild card out there is international and grabbing a large chunk of the share there. I mean the U.S. is kind of a market that’s ripe and it's growing rapidly, that level of acceptance might be different countries. How can you be confident that the demand is there to justify the spend to say in the international market?

International you’re right, it's been a challenge. I think if we looked at the 2013 results it was a little frustrating because we had started ramping expenses at the end of 2002 and spent significantly higher amounts in 2013 and really didn’t see any impact on sales because the sales cycle of international was so long but in this year we went up close to over 45% year-over-year internationally that was a big part of our growth for the overall business within international. We think there is tremendous white space opportunity, Rick talked about one out of every two officers carrying TASER in the U.S., internationally that’s one in 50 and then we have a camera business because of the way we have engineered the product with to be a cloud solution allows us to sell that that product around the world and have a localized product and different markets. So we think we have got not only a big white space opportunity in the weapons business around the world, we think we have a tremendous camera opportunity as well and we’re confident that the investments we’re making will pay off. Again longer term pay offs but I think the growth we saw in 2014 is giving us confidence that there is a pay-off for those incremental investments.

And our next question or comment comes from the line of Greg McKinley with Dougherty and Company. Your line is now open.

I'm wondering if you can talk about I guess the breadth of the opportunity of the marker, the concentration risk in it when you think about your potential big customer relationships from a booking standpoint, it's obviously something investors are monitoring very closely around your bookings levels, those numbers have grown dramatically in recent quarters. Is there enough volume of potential customers out there that bookings can continue to grow consistently quarter-to-quarter or where are we in the maturation of the business such that visibility on bookings level becomes easier for investors.

So the way we think about the market is once we’re able to put an officer on our platform we got additional opportunities to walk them up the pricing tier with features that provide value for the agency, so we think the first phase is we need to grab the market share and the second phase which we’re investing in now is developing additional features that provide value so we can walk that customer up the pricing tier and we think there is a lot of opportunity and that’s what we’re assessing now is how do we develop those features where we can get more price per seat per customer.

I think the other thing too is that a lot of this - at these big agencies there a lot of the initial bookings are not fully deployments, they are sort of the initial deployment for an agency that still has a lots of room to grow. LA is a good example it's great, they are now in our list of customers but there is a lot, there is a tremendous opportunity on top of the booking we have already recognized in LA for future camera sales as they go to full deployment. So I think it's not only a matter of getting new customers but also getting the customers on a system going to where every patrol officer has the camera that’s still a lot of upsides to the numbers we reported.

Yes. I would just jump in I think what you’re getting at is can we expect a relatively smooth upward trajectory of bookings and the answer there is probably not because we do have these bookings are coming in relatively large chunks. If one or two of those slide out of quarter you could see a sequential dip. We think we’re going to continue to see solid year-over-year growth but I just wouldn’t want to miss that expectation that we’re into this highly predictable phase, we’re not dealing with millions of consumers large numbers, lots of small transactions, the big transactions are driving a lot of our bookings. So there is going to be some lumpiness quarter-to-quarter.

And then as you’re moving after some of these big markets, you talked about I think in your officer safety plan, the notion of bundling a weapon with the camera and the software, does that help crack the code on some of these major municipalities that historically haven't used weapons and how significant of change is that to the way you can work with them to get weapons in their hands?

Well I need to contain my enthusiasm here because we’re talking about the future but I would tell you it made a big difference in LAPD. LAPD we have been working on for 15 years and this opportunity of putting the cameras and the TASER's together I think it's what gave them sort of the emphasis and the opportunity to expand our TASER's to every officer together with the cameras, because the cameras answered the major concern you would have about TASER's in a large city which is maybe a more political environment. What's the push back from various non-government organizations, they might have concerns about at least potentially misuse the taser, while if they have got the camera, they have police agencies simultaneously introducing a higher level of oversight. So we’re great at LA, I would say qualitatively we’re hearing a lot of interest from other large agencies but it's early in the game we’re 45 days into this. I'm excited and enthusiastic about it but we need to see how the market actually develops, I would just tell you reactions have been real positive early.

And then Dan, you had given us some metric I think of 53.6 million of future revenues, 39.3 million of future bookings. Is it essentially true that the difference between those two is just differed revenue and then secondly on that 53.6, any visibility you can provide to us how that splits out between software and hardware.

On the first question yes it's exactly right, so the only difference between the numbers sort of the differed revenue if you take the future billings plus the deferred revenue that is going to be sort of future recognized revenue so that’s exactly right. As far as the mix, that’s probably one we’re not ready to talk through. I would say that as you model out the business, I think as you sort up the license count and look at sort of the monthly recurring revenue proceed I think there is a way to model that but we’re probably not in a position to sort of give that split between hardware and software at this point.

Again focusing a little bit more on software and also you’ve a $26 monthly revenue proceed, was that in Q4 bookings or is that where the business stands at cumulatively today? And can you comment if it wasn’t for Q4 bookings, how that changes as people are opting for the OSP and the ultimate plans?

So what I can say is that is the cumulative so that’s actually December's revenue was at that $26 proceeds so that’s sort of the cumulative of all deals before that we have already sort of invoiced and recognized a revenue for and that did go up and it's been going up. So I would say that the most recent deals that were recognized started to be recognized in fourth quarter helped drive that rate up over that same number say for this month of September. So we’re seeing that head in that right direction. You know the one thing just to be clear is that things like officer safety plan and the ultimate plan we’re going to take roughly 20% of the bookings on officer safety plans and strip that out, that’s the weapons part of business so that won't be included in the monthly recurring and the part that represents sort of future camera upgrades will also be stripped out and put on the balance sheet. So you’re going to have about $15 a month on those plans that include future cameras, they are not going to be that monthly recurring that’s going to be on the hardware side so that won't be in the monthly recurring. Even though we’re seeing we’re collecting the money every month that’s getting differed, so the monthly recurring is actually the revenue we’re recognizing each month.

So just to be super clear, so on the $99 a month, take 20 bucks a month off for the weapon and another 15 bucks a month off for future camera hardware?

That’s correct.

So taking $35 out there and then as you take - go down in the unlimited plan which is DOSP [ph] but without the weapon and unlimited and ultimate in both of those you take $15 roughly out for the future camera hardware.

Yes, roughly that would be a good approximation.

And then lastly can you comment on how many, so 80% of your cameras booked seats in Q4 up from 75% in Q3, how many seats are you at cumulatively today is it something you’re willing to disclose?

We said last quarter we are about 10,000, we’re about 15,000 at this point so we’re continuing to grow that seat count. The other thing too is that seat count, we wait for sort of the implementation everything else before we start recognizing the revenue on the seats so sometimes there is a little bit of a lag in that seat count from when the booking is just because we’re we need to implementation services.

And I'm showing no further questions at this time. So with that I would like to turn the call back over to the Chief Executive Officer, Mr. Rick Smith with any further comments.

Well in view of the time we’re not going to take the Twitter questions here. I think Eric will deal with those offline. It's been a long call. Everybody thank you for tuning in today. Again couldn’t be a more exciting time at the business. Feel very excited about the team we have got, the products resonating, this year you’re going to see us really starting to tune up some of the international performance, continuing to consolidate the market. So thanks everybody for your time and we look forward to seeing you all at our shareholder meeting coming up in May which will be held at our new Seattle office. So look forward to seeing you - any of you can make it up in Seattle in May. Thanks and have a great day.