Good day ladies and gentlemen and thank you for standing by, and welcome to the Network Appliance Third Quarter Fiscal Year 2006 Conference Call. My name is Carlo and I will be your coordinator for today's presentation. At this time all of our participants are in listen only mode, we'll be facilitating a question-and-answer session towards the end of today's prepared remarks. At that time if you would like to ask a question you may do so by pressing "*" and "1". If at any time during this call you require any assistance please press "*" "0" and the conference coordinator will be happy to assist you. I would now like to the turn the presentations over to your host for today's conference Tara Calhoun, Senior Director of Investor Relations

Good afternoon everyone, and thank you joining us today. Before we begin, I would like to invite you to registry for upcoming Analyst Day on March 14th, in San Francisco. In addition to the respective presentation providing an update on our corporate vision and direction, we will host the solutions pavilion in the afternoon, where you will be able see a live demo of data ONTAP GX, our next generations operating system, as far as several other NetApp solutions that are driving our growth today. Please contact the IR team for details and registration information. Today's conference call has being webcast live and also be available on our website at www.netapp.com along with our earnings releases, the reconciliation between GAAP and non-GAAP numbers and other financial and statistical information presented during our call. In the course of today's call, we'll make forward-looking statements and projections that involve risk and uncertainties, including statements regarding our expectations for stock repurchases, potential declines and total shares outstanding, higher end goals, operating result for Q4 and FY'06, timing of future product introduction, growth in our SAN and SCSI business, and growth rates relative to the industry. Actual results may differ materially from our statements or projections. Important factors that could cause actual results could differ from those in the forward-looking statements include, but are not limited to customer demands for product and services, increased competition, and declined in general economic condition, and foreign currency exchange rate fluctuation. Other equally important factors that could cause actual result to differ from those in the forward-looking statements are detailed in the risk factors section of our Company's 10-K and 10-Q report on filed with the SEC and are accessible through our website. All of which are incorporated by references in today's discussion. We disclaim any obligations to update information contained in these forward-looking statements, whether as a result of new information, future events or otherwise. With me on today call are Dan Warrenhoven, our Chief Executive Officer, Tom Mendoza, President, Steve Gomo, our Chief Financial Officer, and Tom Georgens, Executive Vice-President of our Enterprise Storage System group. Steve will review this quarter's financial and discuss our financial outlook for the fourth quarters and then Dan will share his thoughts before we windup with everyone here for Q&A. Steve?

Thanks, Tara. Good afternoon everyone. As if you could see from the results, Network Appliance had a robust third quarter, which again was driven by the strength of our new FAS 3000 midrange product. Our business was also strong across all geographies. Now, I will walk through the details of our results to provide additional color. Please note that all numbers comply with GAAP unless stated otherwise. For the third quarter, total revenue came in at $537 million up 30% over 3Q of last year and an increase of 11% sequentially. The foreign currency effect subtracted approximately half percentage point on a sequential basis, and three percentage points year-over-year. Product revenues are $474.2 million grew 29% year-over-year, almost 12% sequentially. And-on software and software subscriptions, accounted for 36% of total revenue this quarter. This figure is a combination of software subscriptions, which were 11% of total revenue, and add-on software products they were 25% of total revenue. Revenue from IBM and Decru, both increased, with IBM just over 1% of total revenue this quarter. Decru finished the quarter a little under 1% of total revenue. Revenue from services, which include hardware support, professional services, and educational services was just under 12% of total revenue, up 8% sequentially and up 40% over the third quarter of last year. Service maintenance contract increased 9% sequentially and total professional services grew 6% sequentially. Non-GAAP gross margins were 61.6% this quarter. Non-GAAP product gross margins returned to a more normal level of 66.3% despite a modest increase in the mix of add-on software. This decline in product margin was mostly due to a significant increase in the amount of low margin storage sold this quarter. Sequentially, period expenses were also higher as we responded to product demand that exceeded our expectations. Non-GAAP service margins…

Thank you, Steve. The NetApp team delivered another terrific quarter, and I am particularly pleased with our progress in penetrating and expanding our presence in enterprises data centers. NetApp's business with mission critical application partners like Microsoft, Oracle and SAP continues to grow. We have seen business supporting databases increased steadily in our mix to well over 40% of our business today. In addition to going deeper within our product line innovation and expansions are broadening our addressable market; Database cloning, data encryption and disc-to-disc data protection to name a few. Before I tell you about our newer products, let's review the performance of our core business which drives the current growth. Total storage systems shipped were up 11% sequentially driven again by the adoption of our FAS 3000 product line. For the 40% increase in unit shipped, the 3000 series accounted for over 40% of all systems sold. At our high-end of FAS960 continued to decline as it is solely replace by the 3050s with the 980 and quite a resurgence this quarter with 30% sequential increase in unit shipped. Our new high-end which many of you may have referred to by it's code name Excelsior is on tract to begin shipping in Q4 to pre-selected sets of large accounts, who are part of our earlier adopter programs. This new high-end positioned well above the 980 will bring substantial increases in both performance and capacity, increase in the breadth of our product offerings in the market. Turning to the low-end, unit shipped of our FAS250 increased again this quarter, while units of the FAS270 declined slightly. We suspect that decline may have been a result of customer choosing to buy entry level 2 terabyte 3020 systems with ATA drives as their cost for gigabyte is very similar and the…

Thanks, guys. Can you dig in a little bit more as to what drove the strength in the add-on software mix and then looking ahead, why do you think that add-on software, the add-on software mix goes down, particularly when you got a high-end product cycle coming online this quarter?

Andy, Steve Gomo here. There's no single driver behind the add-on software mix. Several categories of software picked up during the quarter slightly and matched the contribution to the increase. We think, and we still are modeling here, a target of 35% add-on software as we go forward. We think there is a absolute penetration level that our software can reach and we think at 35% we pretty much reached that. That said, think there will be quarters when you could see a point, maybe even a 2-point uptick in that level, but you could also see a point or two-point level down tick, so I think that targeting 35% is safe and representative of what you'll see over the longer haul.

This is Dan. We also find on a new high-end systems that the percent of their total value that's associated with add-on software declines initially. And so as the new systems come out, I think you'll see they carry less than 35% going out the door than you'll see add-on software for the systems pick up later.

And, sir, our next question is from the line of Ben Righteous with UBS.

This is Jeff Brickman for Ben. I was wondering if you could give a little more detail on inventory, obviously, understand what happened in the middle of the quarter, but clearly there was a pretty large uptick here and when are you expecting DSO's could possibly go down and maybe if you could give a little more color on how you see things ending the quarter.

This is Steve Gomo here. You'll notice, again, we had the, we had the superior growth this quarter and indeed, December was a challenging month for us, as orders significantly outstripped our expectations. So obviously we had to build some inventory to catch up. We also have seen, DSO deteriorate now for two quarters and we've decided that it would be prudent to have a little bit more inventory on hand, given the robust demand we're seeing across the board. So we're going to start the new quarter in a better inventory position, hopefully to avoid any kind of challenges this next quarter.

Two other things in that inventory number, inventory supplies that are essentially consigned to IBM, who now does their own manufacturing JVIL, and that's a significant component as they start ramping up. And we have a significant amount of material in there for the new high-end systems and they won't convert to revenue until, if at all, until the very end of this quarter.

And, sir, our next question is from the line of Tom Curlin with RBC Capital Markets.

Thank you. Can you comment on Decru revenue contribution? I think everything else was pretty clear, but that piece.

This is Dan. I think in Steve's script he had it just under 1% of revenue.

Okay. Thank you.

And, sir, our next question is from the line of Brian Freed with Morgan Keegan.

Hi, guys, great quarter. Could you comment a little bit more about the IBM relationship you just mentioned, how that's going to be manufactured by IBM, maybe give a little bit more detail about the stable relationship you mentioned.

You broke up on that. Could you repeat?

Could you give a little more clarity on the IBM manufacturing? You just mentioned, I think you said they are going to manufacture through JVIL.

Yes, JVIL is our contract manufacturer, IBM also uses JVIL, so the arrangement we have is that JVIL will manufacture the IBM logo and branded equipment and pull essentially raw material stock for that, and we get the invoiced or whatever as, or they get invoiced from us automatically, I should say, as they pull a kit.

And the inventories will be on whose balance sheet?

They are on ours until they actually pull one to go to fab, they are on ours.

Sir, our next question is from the line of Aaron Rakers with A.G. Edwards.

Hi, guys. Thanks a lot. Nice quarter as well. Maybe you can talk a little bit about the high end business. I see that the 980 was pretty strong in the quarter ahead of a product cycle, forthcoming. Maybe you can help us understand what type of ramp we expect with the new high-end product coming on board, any type of revenue expectations, contributions for the current quarter from that new high-end solution?

Yes, high end solution, you know, is kind of on the cusp for this quarter. We're putting in basically beta systems. They are not revenue. They are still on our inventory, et cetera, although they are in customer hands. My guess is if we do anything at all it, will be very close to the end of the quarter in terms of revenue recognition. It may not be in the quarter at all. Relative to 980, the new Excelsior System is well above the 980, as I made in my comment. I expect the 980 to stay as a very healthy contributor in the product portfolio for quite sometime. We're talking like 2 X of differential between them. There's plenty of room between a 980 and Excelsior.

Sir, our next question is from the line of Harry Blount with Lehman Brothers.

Hi, guys. Quick question, Dan, you mentioned that part of the contribution to the significant growth in petabytes is you saw an uptick to add-on shelves. Can you give us a sense of where that's at? You thought that might grow as a percentage of revenue.

I think the surge in the add-on stuff was $3 or $4 million. The way we have it quantified, add-on shelves was up 30%, but that really means $3 or 4 million in the mix. Like I said, I really believe that was customer who is took it at the end of the year because they had money to spend, they'll probable set it aside and install it when they need it. I should also clarify a misstatement I made in the, in my remarks on the introduction. I misstated a number. I had said that total systems shipped were up 40%. That number is actually 47%.

And, sir, our next question is from the line of Laura Conigliaro with Goldman Sachs.

We had two quarters in a row where you've taken your strong revenue growth and allowed for some large earnings upside, is this indicative of a slight change or attitude toward rewarding in investors with upside or is it more of an operation to give you strong revenue growth, misstep in July, and it seems like you've been strong higher expectations, higher revenue outlook would suggest that your margins can move higher.

I don't think that's the case. We're still operating through a target operating model of somewhere between 15.8 and 16.4% on the operating income, and if we see a surge in revenue, it's got to fall to the bottom line because you just don't have time to spend it. But nominally what were trying to plan to is 15.8 to 16.4.

Our next question, sir, is from the line of Paul Mansky with Citigroup.

Can you hear me?

Yes, sir.

Oh, great. Thank you. Just wanted to touch base on Decru again. You indicated it was about 1% of revenue, suggests 5, $6 million roughly. I think that may be tracking now for the second quarter slightly behind expectations. Can you give us some guidance as it relates to what you expect ultimately that revenue run rate to look like over the next couple of quarters?

It's really very lumpy. I think that's part of the challenge. In fact, we don't normally disclose bookings, but Decru's bookings in this quarter were about 3 X their revenue contribution because some large deals close at the end of the quarter and they didn't get converted. As a start-up business, selling into large enterprises with lumpy deals, it's very difficult to predict what the linearity is going to look like. I'm much more interested in looking at the deal slow and sales cycles and so we were pleased this quarter that the enterprise business exceeded the federal business. Think we're starting to get a handle on those sales cycles, but I, I would be reticent to predict any particular number for this quarter, and hopefully we'll give you better guidance for next year, in March, at the analyst day.

And, sir, our next question is from the line of Kaushik Roy with Susquehanna.

Congratulations on a great quarter there. There has been some talk about the delay if the integration of the spinerest, can you comment on the time line and what impact it may have on revenues?

That new operating system, we call ONTAP GX is in the hands of at least five or six customers as we speak in a beta condition and we know they use it because they filed bug reports, so I think it's right on track. It's, yes, again, you'll see it in the March 14 analyst day, and we'll be right on the cusp of, of making that a generally available release, or available to any customer who wants, I should say. GA is a different term, but FCS release, right at the end of this fiscal quarter. You should, you'll not see any revenue impact, though. Realize it's on the same 3000 systems that you buy data ONTAP today.

And, sir, our next question is from the line of Daniel Renouard with Robert W Baird.

Thanks. Going back to the high end product for this quarter, you kind of indicated you'll be in beta mode for the April quarter. Does that imply that we'll be in full, be shipping to everybody for the July quarter so you'll be at a sort of normalized run rate, or would you expect that to be a ramp for the next couple of quarters? Then when would it be a reasonable timeframe, and I know it's hard to predict, but just some sort of goal post around when IBM, you might expect IBM to qualify in that OEM product.

You would have to ask IBM on that one, but the last one they took was roughly a three-month separation and obviously both parties are looking to try to improve that. I think on the, on the new high-end, I know, I'm not encouraging to you include any revenue in your model for this particular quarter. We'll be in a ramp quarter in our fiscal Q1. Generally the high end, as it comes out has a tendency to have a fairly quick takeup and, but I would think it would be kind of in its steady state in the mix, probably during our Q2.

And, sir, our next question is from the line of Andrew Ness with Bear Stearns.

Hello?

Hi.

I know that you wanted to save some of this for your upcoming analyst meeting, but are there factors that you see they are going to slow down your growth as you go into fiscal '07, or do you see same sort of, that will effect your margins as you look out at '07?

Matt, this is, we're not forecasting any change in our normal business model.

And our next question is from the line of Clay Sumner with FBR.

Thanks, and my congratulations, too, on the quarter. Can you guys say what percentage of the 3000 series or of the total product line shipments shipped with dual controllers this quarter?

Yes, if I could find the data.

I generally understand that the trend has been markedly up in the last couple of quarters.

I do recall that the volume was up 12% sequentially.

Volume of dual?

Yes, of clusters, right.

Of clusters.

As I recall, it's approaching over 70%.

Okay. Great. Thank you very much.

And, sir, our next question is from the line of Brent Bracelin with Pacific Crest security.

Thank you. Two-part clarification on IBM, if I may. Obviously we're in early days here, but what was the order linearity, from IBM in the quarter? Was it anything different than what you saw with your kind of reseller base? Then secondly, Dan, you did mention that IBM is only shipping two products from NetApp today. Can you talk a little bit about what other products you anticipate IBM taking on over the next one to three-year period?

Yes, I certainly expect them to continue to take most of our primary storage systems, so they will pick up Excelsior, is my guess. In fact I'm pretty sure that's going happen. But I think that will kind of be the conclusion for them and they will track with us relative to refreshes. When we refresh the low end, I'm sure they will introduce that as well. Did you have a second piece of that? Oh, the linearity in the quarter. Pardon me. So IBM's fiscal year ended in December. So we saw a surge in both bookings and shipments during that month. It was a very atypical relative to the rest of our channels, so we had a really strong December from IBM. Other than the IBM surge right there, which is only 1% of revenue, our booking profile this quarter looked virtually identical to last year. We were stronger through December, a little weakest at the beginning of January, then a pretty strong finish. IBM was actually part of the December challenge relative to materials selling.

And, sir, we a question from the line of Glenn Hanus with Needham & Company.

Could you maybe give some color around how you'll be offering the GX pricing it, how you'll be upgrading people, sort of the basic marketing tactics around that?

I'm not going to say anything about pricing, but let's think about new shipments first. The customer who chooses a 3000 or one of the new high end systems will have their choice as to which operating system they want installed when it's shipped, and customers who have current 3000 systems have the opportunity to upgrade those if they so choose. That upgreat process requires that they have Flexball enabled on their current ONTAP environment, and from that point it, should be a fairly straight forward process.

Thank you.

And, sir, our next question is from the line of Carolyn Cowen with Cowen.

inaudible:

Steve Gomo there. Basically there's been no change in our hiring profile or planned hiring profile. Roughly we plan to hire roughly 300 people next quarter, about 100 in sales, 100 in the services area, predominantly professional services, and about 100 in engineering.

And, sir, our next question is from the line of William Fearnley with FTN Midwest Securities.

Thanks. Quick question regarding availability for you. There was a lot of questions on third quarter, certainly, but for the fourth quarter, is it fair to say that you guys are out of the woods in regard to availability? You mentioned the inventory build in your introductory remarks. Thanks.

We were never in the woods. We did not, we were never in any kind of difficulty whatsoever. I think we lose the fact that we had a surge in the number of add-on shelves, which stressed the supply chain. IBM had a really good December, which was cocurrent with that. Many of our customers gave us orders which were conditional upon receipt of the product by the end of the calendar year, and so we were in a churn of rescheduling to give them priority. But none of those were severe, nor did any impact our performance during the quarter. So we got plenty of supply, got plenty of material and I should point out that if you look back at Zyrtec's reports in January, you can see we had a very, very strong performance through the end of the calendar year, correlated with their results. So I mean Steve said, I think the comment he made was that the rumors concerning our supply chain issues were greatly exaggerated, so, again, I stand by my opening comment. We were never in the woods.

And, sir, our next question is from the line of Mamba Barowa (phonetic) with Banc of America.

Hey, guys. Thanks for taking the call. Sir this business had another really strong quarter. Just wondering if you guys sort of have a goal there for, you know, I guess, as a percentage of total revenue and I mean how long here should we expect you to continue to sort of outgrow the rest of the business?

You know, I think it goes on for quite a while. I can foresee the day when services represents 20% of our business or more. So I expect that to keep growing faster than the product business and I think that's very appropriate. I mean the service set is used to accelerate customer acceptance of the product and there's a strong demand for it.

Yes, in fact, to add on to Dan's point, think, or to emphasize his point, professional services is the fastest growing piece or fastest growing category of our business today and so while it's small in terms of its absolute size, it's going to continue to grow quickly, particularly as we continue to add resources to pull our technology and to, into customer accounts.

This is Tom. One of the big requirements, we had a very strong enterprise quarter, as you've heard. One of the big requirements there is consistent service offering globally and they are willing to fund that. So when you get into bigger and bigger enterprises, spreading major applications onto our products, they want to have professional services involved at each end and that could be on every continent in some cases. We're in front of that. Rather than trying to be reactive to it, we're being proactive and hiring and, the whole strategy is to provide the customer what is they need by more of our products. Obviously the margin structure is good. We don't have to find the new business, just make sure this one works well. We want to be on the front end so we're not reacting. I think that's what you're seeing here.

And, sir, our next question is from the line of Shebly Seyrafi with Kaufman Brothers.

Yes, thank you very much. Looking at your geographic trends, your intercontinental revenue grew quite nicely for the first time, I would say, in a fiscal Q3 for several years. Maybe you can talk about the geographic trends and whether or not you expect broad-based geographic growth in the fourth quarter.

Shelby, we had actually forecast sometime ago that Asia-Pac would outgrow the rest of the world and they really struggled during Q2, so they kind of rebounded in Q3 was the way I viewed it. I expect to see the fastest growing region still be Asia-Pac, next several years, and probably Europe in second place. I would expect to see a few points of our mix shift towards Asia-Pac from the U.S. I should point out that the currency issues in Europe created interesting challenges, especially as compares year-over-year. As Steve mentioned in his remarks, that basically, that took three points off our growth rate on a year-over-year comparison. Without the currency issues, we would have been at 33% year-over-year. I'll give you just a pattern on Europe in the mix for those of you who are wondering why it was up. If you look at fiscal, or Q3 '04, fiscal year '04, Europe was 34%. Q3 fiscal year '05, Europe was at 34%, and this year they are at 33%. So they always have those Q3 spike. It would have been higher, as I said, if it wouldn't have been for the currency.

Sir, our next question is from the line of Kevin Hunt with Thomas Weisel Partners.

Thanks. I think I missed when you said earlier, did you say what the net cash number was for the quarter?

Yes, it was about 3% of revenue.

Okay, thanks, guys.

Thanks. You know, now that you guys are going, when you launch the new DX operating system, you'll have two OS's to, I assume so, but can you just confirm its a full family of other add-ons software products will be fully compatible with both OSs?

No, not initially especially. As GX comes to market as a subset of the total ONTAP capabilities, it would be adding additional features to it over time. Over a period of a couple years. The interoperability will be preserved, but it will actually be different code, you know what I mean?

And, sir, our next question is from the line of Kaushik Roy.

Can you comment, what are your expectations from IBM this quarter? Could it be 4, 5% or 6, 7%?

I doubt it. 1% last quarter. I don't think we should model more than 2, certainly and probably 1.5 might be more appropriate.

And, sir, our next question is from the line of Shebly Seyrah.

Yes, your product sales were quite strong this quarter, up 12% sequentially, yet Hewlett Packard arrested also reported this evening and their storage results were down 9% sequentially. So did you notice an easier time winning against them and separately, they are supposed to have an iSCSI announcement next week. Do you think that will change the playing field?

No. I think we've gotten some visibility to their upcoming announcements and I would, I think that's just a mid life kicker. I didn't attach any particular significance to what I saw. No, I don't think it will impact the iSCSI field at all. We actually did not see a change in competition or a change in win rate with Hewlett Packard arrested, although I must say we cannot track that very well through the channels, so there may have been, we really saw the increase in engagements with the MC and I think that was largely at our initiative. We're really going after them, as Tom said in the enterprise. HP was flat in that mix.

The overriding themes I would leave you with is that many customers are now concluding that they should have two storage vendors. There's a large number in the enterprise that have relied on one and we would come in the logical second, similar architecture and you can decide which does it better, but if you're looking for a true different company that's innovating, most people have concluded that we're the other innovator and we are getting that shot. Over the last year, I would say it's been building and building and building, but over the last two quarters, it's been very obvious. The number engagements and size of the engagements have increased dramatically. That's another reason for the professional services piece. If you get larger opportunities, you got to be prepared to meet a certain need. That's exciting. This is where we've been heading for a long time. The last thing I would say is the unified storage message and the ability to enhance their infrastructure in different way with things like our D filer, and then when you combined with the ability to not only consolidate information, but cover that information, but secure it with Decru, the whole message is resonating very well with the large accounts.

Sir, your next question is from the line of Daniel Renouard.

Hi, just a housekeeping question. Can you give us a rough sense of what the option, stock option expense would be for the April quarter?

There won't be any in the April quarter.

Yes, we don't, this is Steve Gomo here. We don't start reporting, we don't implement FAS 123R until our first quarter.

Fiscal quarter.

First fiscal quarter, so we continue to footnote it in our Q and K.

And Steve's going have a section in his presentation at the analyst meeting to cover what the forecast is on options expensing.

And, sir, our next question is from the line of Aaron Rakers.

Yes, thanks, guys. I guess kind of along those same lines, you guys continue to make some meaningful investments in terms of head count. Maybe you can talk about the environment you're seeing in terms of making those hires. Is it becoming increasingly challenging for you on a hiring front, and then maybe on the same lines, if you can talk about maybe it's a little bit early, but maybe talk about Steve, what your approach is in terms of options expensing, in terms of possibly seeing that decline at some point going forward.

This is Dan. On the hiring, we haven't seen any significant change in profile this. Past quarter obviously we were again included in the, as Number 27 on the Fortune List of the Top 100 Great Places to Work. We've got a lot of assets that attract very talented people and we've had no difficulty whatsoever with finding and having the right people join us. And it shows in the numbers, so we've been able to, I think, keep very, very high quality level as we go about hiring several hundred people a quarter. What was the second question? The question on option expensing, I would like to table that whole thing until March 14th so we can treat it in its entirety.

And, sir, our next question is from the line of Glenn Hanus.

Just a follow-up on the increase in low margin storage. Are we going to continue to see that become an increasing portion and how should we think about how that translates to product margin, possible product margin declines, sort of sequentially over the next year or so.

I'm not sure we have enough of a, a vision to be able to give you any guidance on that one. I think it's going to fluctuate in the mix a fair amount. We saw in this quarter that a lot of customers chose to just buy add-on shelves. My guess is that does not recur next quarter, but our product architecture is moving to the point where our systems can grow than incredibly large. You'll notice even on the R 200 when we brought that out, it's configurable from 8 terra bytes, to 96 terra bytes in increments of 8 terra byte, 8 terra bytes is a shelf, so customers start small and add-on I think you're going to see that trend continue and we're going to encourage our customers to buy what they need and then buy the expansion later because it's probably going to be at a lower price as the rate, drive prices come down. So it's hard to predict how all those things are going to fluctuate in the mix. We've seen it trend up maybe a point every, every other quarter or so, half a point a quarter in the mix. This time it surged a little bit. My guess is goes back down. I don't think it's going to be material. If you think about it, it's about 2 to 4/10 of a point of gross margin was the result of the, gross margin decline quarter- over-quarter sequentially, was the result of the increase in the stand-alone storage.

And with that, ladies and gentlemen, this concludes the question and answer session of today's program. I will now turn the call back over to Daniel Warmenhoven for any closing remarks.

Thank you all for joining us today. Again, we want to remind that we're looking forward to seeing you at our analyst day on March 14, in San Francisco and also on sharing our Q4 results with you on May 24th. So, again, thank you all for your interest and look forward to seeing you on March 14th. Take care.

Ladies and gentlemen, we thank you for your participation in today's conference. This concludes your presentation and you may now disconnect.