Good morning my name is Jamie and I'll be your conference operator today. At this time I would like to welcome everyone to the Teradyne fourth quarter 2017 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question and answer session. [Operator Instructions]. Thank you Mr. Blanchard, you may begin your conference.

Thank you, Jamie. Good morning everyone and welcome to our discussion of Teradyne's most recent financial results. I'm joined this morning by our CEO, Mark Jagiela and CFO, Greg Beecher. Following our opening remarks, we'll provide details of our performance for 2017's fourth quarter and full year along with outlook for the first quarter of 2018. The press release containing our fourth quarter results was issued last evening, we're providing slides on the investor page of the website that maybe helpful to you in following the discussion. Replays of this call will be available via the same page after the call ends. The matters that we discuss today will include forward-looking statements that include risk factors that could cause Teradyne's results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statement contained in the earnings release as well as our most recent SEC filings. Additionally, those forward-looking statements that are made as of today are made as of today and we take no obligation to update and as a result of developments occurring after this call. During today's call, we'll make reference to non-GAAP financial measures. We've posted additional information concerning these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP financial measure were available on the investor page of our website. Also between now and our next earnings call, Teradyne will be participating in industry conferences hosted by Goldman Sachs, Morgan Stanley, Citi and Susquehanna. Now let's get on with the rest of the agenda. First, Mark will comment on our recent results in the market conditions as we enter the New Year. Greg will then offer more details on our quarterly and full year financial results, along with our guidance for the first quarter. We'll then answer your questions and this call is scheduled for one hour. Mark?

Good morning, everyone and thanks for joining us. In my remarks today I'll provide a brief summary of 2017, share additional insights on our strategy, then describe our 2018 outlook for the markets we serve, and close with comments on our capital allocation plans. Greg will then take us through the financial details. The fourth quarter capped off a strong year for Teradyne, sales were up 26% compared with the year ago quarter and non-GAAP EPS was up 44%. All business segments showed double-digit sales growth over the fourth quarter of 2016. In SemiTest, our memory test shipments hit record levels in the quarter, which we are set to exceed again in Q1. SOC sales in the quarter were also strong with Eagle Test and service revenue up 29% and 20% respectively. Universal Robot sales were up 61%, compared to the year ago quarter, as shipments to the Asia Pacific region in particular, exceeded our forecast. For the full year of 2017, Teradyne sales grew 22% and non-GAAP earnings per share grew 55%. A healthy growing test business, combined with an exciting hyper growth collaborative Robot business, resulted in Teradyne breaking the $2 billion revenue mark and exceeding our $2 EPS target, three years ahead of plan. Market leadership with differentiated products and a disciplined financial model have allowed us to grow with high leverage to the bottom-line. Over the last 10 years, we've methodically grown our share of the combined SOC and memory test market from 24% to about 50%, while improving gross margins. We've taken a disciplined approach of targeting the attractive growth sub-segments of the market. Focusing on technology inflections and market shifts in mobility, automotive and flash memory, paved the way for these gains. This will continue to be our game plan going forward. The ongoing…

Thanks, Mark, and good morning, everyone. I'll start with the highlights of 2017 and then offer comments and perspective on 2018, including our capital allocation plans and the impact of the newly inactive tax laws. Also offer perspective on our strategic position and market trends of the business segment level, outline our new midterm financial model and close with the fourth quarter results and first quarter outlook. On the financial highlights front, as Mark noted, our $2.14 billion of sales in 2017 was up 22% from 2016, driven by a strong ATE market, SemiTest share gains and 72% sales growth at Universal Robots. As a result non-GAAP EPS was $2.34 for the year, up 55% from 2016 and exceeding our 2020 $2 EPS target three years early. In 2017, we performed quite nicely against our key attractive, we gain 2 points of share in SemiTest making 2017 the sixth consecutive year of ATE share gains. We grew Universal Robots top-line 72% well above the 50% threshold target. We had model operating performance in Wireless Test, mobile [ph] and Production Board Test. We also bought back 200 million of our stock at an average price of $34.30. Since the beginning of 2014, our balanced approach to capital allocation has returned $839 million to shareholders in buybacks and dividends and invested upwards of $350 million to acquire Universal Robots. When we bought Universal Robots in 2015, its sales for its recently completed year of 2014 were only $39 million. Over the subsequent three years they have grown over fourfold inside of Teradyne with sales of $170 million in 2017. With the new $1.5 billion share repurchase authorization we plan to repurchase a minimum $750 million of our stock in 2018. We increased quarterly dividend of 29% to $0.09 a quarter is effective…

Thanks, Greg. Jamie we would now like to take some questions and as a reminder please limit yourself to one question and a follow-up.

Thank you. [Operator Instructions] Our first question is from Toshiya Hari with Goldman Sachs.

Good morning. And thanks for taking for the question. Mark you made a slight change to your 2018 SemiTest market outlook, today I guess what were some of the developments you saw over the past three months that led to that change? And if you can talk little bit about some of the sub-segments within SOC, mobility, automotive, image sensors, et cetera that would be helpful. Thank you.

Okay, sure. So, since November we ended up in fourth quarter of '17 above the high end of the guidance we have for revenue. So we've seen throughout November, December into January a steady increasing demand for SOC capacity more so than we expected. And it's pretty broad based across everything except mobility where mobility as I've mentioned in my remarks has shifted maybe four weeks further into the future. So automotive, image sensor, linear all of these areas were getting pulled for reasonably quick buy delivery cycles, and typically our lead times are 8 to 12 weeks. So we get a reasonable amount of turns within the quarter sometime. So it's that sort of across the Board demand that has brightened the outlook looking forward. And then within mobility itself although there is a little bit I'd say the peak tooling installations this year about four weeks later than last year or the year before. The demand there also looks very strong. And so on the SOC side I think it's just a broad based rising of demand. But I would point out that with about an 8 to 12 week visibility, we don't get to see the backend of the year with any precision until we're sort of into the backend of the year. So a lot of what customers are talking about as a general budgetary number, it's kind of flat with 2017. On the memory front just to turn to that for a minute, things are very busy and hot there. I mentioned we'll exceed our Q4 shipments in Q1 in memory, similar kind of lead times. The $700 million to $800 million range hasn't changed since November, but if anything there is pressure there on the upside I could see that going up especially if in the indigenous fabs in China we see that the yields get to a sufficient level that they begin to turn on production. We haven't assumed that for '18 we've assumed that's more of a '19-phenomena. But that could be upside on the memory discussion.

Great, thank you for the details there. My second question is on Universal Robots, in your long-term model you've assumed 45% to 50% top-line growth for the business. I guess, I was curious what the rational is for that number, why not 30%, why not 70%? And then I guess related to that if my math is correct I think UR gross margins improved 3 maybe 4 percentage points in 2017 versus 2016. What's the path forward there as you look out to 2021? Thank you.

Okay, this is Greg I'll start and maybe Mark will add to it. I'll start with the gross margins, I'll go back further when we acquired Universal Robots the gross margins were about 51% as we end '17 we're in the upper 50s. And we see a path to increased margins a few more points. Now this doesn't factor in, what does the competitive field eventually unfold and look like. Today as I think, I mentioned in my prepared remarks, it's much more about stimulating awareness versus were going up against competitors. So we do see opportunities for further margin improvement, but again at some point there'll be some competitors that will bump into particularly at large accounts. On the first part of your question why not 30%, why not 70%? We look at third party reports there's a number of them out there we speak to our distributors, our channel partners, we see that our existing channel partners grow their business about 50% a year they sell 50% more cobots each year. And there will come a point we'll probably slow down or stop adding new distributors or integrators in terms of net increases, there might always be some adjustments for quality. So then if I say what the existing ones sell today it's about 50% they were constantly improving in terms of some of the offerings we're giving them as well as the UR Plus, what's on the online website, the academy. And we've seen sales grow at a higher rate each year, which is unusual to see the growth rate increase, increase, increase but we all know with as numbers get larger that gets harder to continue. So in the end it's a judgment, but we come out from many different perspectives and we also look at bottoms up the types of jobs that can be automated, but that leaves you to various not only big numbers, but then we cut them back up with that because the numbers just look too big looking at it that way. So it's judgment, but we look at it in many different ways and our track record to-date has been well above 50%, but we know as numbers get bigger that will get harder to be well above 50%.

Thanks so much.

Our next question is from Mehdi Hosseini with SIG.

Thanks for taking the question. Just back to your ATE forecast, is there any impact or are you anticipating any incremental market impact from some of the new A6 designs coming to the markets. These new A6 are designed for block chain computing and like a crypto currency. And I'm just wondering if the market is big enough for the ATE market and Teradyne is specifically to see that in your forecast? And I have a follow-up.

Yes, so I think crypto currency processing as a sub-segment of the ATE market is really de minimis. It's not significant in the grand scheme of thing. On a broader scale though I think the idea of array processing whether it's used in a hedge applications like AI for things like facial recognition or voice recognition. That's becoming a discernible segment and growing I'd say several hundred million dollars of that TAM. You could attribute to the combination of all the crypto currency processing plus GPU plus AI related processing. And our participation - Teradyne's participation in that space in the traditional GPU side has been low below our average market share. But in the emerging edge space of applications whether that's in automotive or in cell phones or in infrastructure areas is kind of right at the norm, right at that 50% point. So couple of $200 million in TAM growing faster than average and we are participating outside of GPU.

Is this what's driving your market share target specifically for 2021?

No, not specifically. I think, we will grow with the market share. I think our market share gains for 2021 will come from the digitization of automotive. The combination of our strength in traditional automotive electronics and our strength in mobility will help us in gain share in that area.

Got you, thank you. And a quick follow up for Greg, I look at - appreciate for updating us on the longer term earning power. It seems to me there isn't any much of a leverage left in the P&L. And these ranges that you're targeting $3.50 to $4 to a large extent depends on your ability to execute on the share gain. So in the context, what is it that gives you as a rather conservative company to step up and discuss these share gains? And B, what if we hit air pocket and whether what is your flexibility in managing cost given the fact that you are still investing in some of the growth areas.

Got it Mehdi. The slide, we've put forth, which we hope will give you a very clear path. We've put the assumptions on the upper half and printed the biggest assumption as Universal Robots growth rate. That's driving most of the sales and earnings growth, but let me go to the SemiTest question our market share. We have steadily gained market share in ATE in both SOC and memory over many years. We've shown that on the slide here the last four year period we grew from 44% market share to 50% market share. And for modeling we're using anywhere from 4 to 6 points. So we're modeling what we've done in the past and we've been a bit conservative saying could be as well as 4 versus 6 points. If you go back further, we've gained much more than 6 points share - 6 point of share. So we do have the ability to carefully target the right segments growth with those waves as well as find areas for differentiation and not compete against capital cost. So it's a long running formula that we've had at Teradyne that I think we has proven that it's sustainable. And there is always leverage Mehdi in the model. In here there is a bunch of variable compensation tied to profit. So if the profits are lower the variable compensation comes out, there's a lot of spending that goes with the growth, if we see the growth in any business isn't what we think it is then we'll pull some of the spending back. So there certainly is flexibility.

Got it, thank you very much.

Our next question is from Patrick Ho with Stifle Nicholas.

Thanks very much. Mark maybe first off in terms of the SemiTest market that you talked about and the outlook you provided. Would some of the timing, I would say push outs on the mobility and what are your concerns there that maybe that pushes out potentially into 2019 or so. Do you feel that it will come that four weeks later that you're talking about right now? And do you have that visibility, or is it just something that could potentially extend a little further?

Yes, I think that's one area where we have pretty good visibility and no it will not extended into '19, what will happen is that some shipments that would normally be in second quarter will leak over into third and it's about that four-week window is the delta. But not a lot of ambiguity in that.

Great, that's helpful. And maybe Greg in terms of some of the commentary you made about UR cost going up, it clearly make sense because obviously you are growing it at a very rapid rate. Can you give a little more detail, is it going into more on the distribution side of things in particularly Asia given the rapid growth there or is it a mix of both distributors as well as integrators?

By far it's the distribution and that's the single biggest time is more sales people that can then work with distributors and channel partners in new regions that we're not covering adequately as well as existing regions where there's some accounts we are just not getting to. And then the next is engineering to continue the innovation that we deliver to step that up even further. Those are the two big areas with distribution by far the largest.

Great, thank you very much.

Our next question is form the C. J. Muse with Evercore.

Thank you for taking my question. I guess first question, going back to some of the prior questions around your overall SemiTest guide. In the prepared slide deck you talked about growth there, but in terms of your outlined expectations you're guiding to flat. So curious, how we should interpret that? And as part of that, how you are thinking mobility spend on the SOC side year-over-year and is that sort of part of what's driving that flat guide?

Yes, so one thing I'll start out with as a caution. A year ago in this very call we gave a guide for the SOC market that was in a range of 2.2 to 2.5 but we ended up at 2.65. So with that caveat we're not completely able to see what's going to happen. But in mobility I would say year-over-year our expectations is that it will be flat to very slightly up. And that market is one that typically comes to the majority of the installations come to conclusion by the end of third quarter, so we have a little bit more visibility there. I think what's less clear to us and what surprised us last year is, automotive, how much longer will that have legs it's been going out for about a year and half, if automotive continues at the rate that it did last year with or even a little bit of acceleration that moves us toward the high side of the SOC market. And linear, industrial linear, those are two that are very kind of quick turned businesses that we get very little visibility beyond the current quarter. So mobility everything else being equal roughly flat and then industrial, linear, automotive the wildcard that swings the rest of it. I'll just make a comment about memory, memory as I said before the range we gave of $700 million to $800 million, could easily have another $100 million or $200 million on top of that, if the indigenous Chinese fabs really decide to or are able to go into a production ramp. So that's something we have modeled into '19, but that could pull in.

Very helpful. As my follow-up, as you think about you are and building out your infrastructure to support that, curious if you've seen sort of any momentum year-to-date related to tax reform accelerated depreciation and in pending industrial accelerated spend. And whether or not that's changing perhaps your near-term outlook for perhaps faster growth in that business?

C.J. we haven't seen that yet in North America, but we will have our antenna up to see if that's possible. As you know the cost is fairly low, but I certainly could see that that might make us went into the ROI calculation. Mostly ROIs are very quick without further advantage, a tax advantage and often the cobots are improving quality or doing tests that aren't well suited for human. But sure it might help a little, but we haven't seen it yet.

Great, thank you.

Our next question is from Richard Eastman with Baird.

Yes, just a quick question on UR, could you just go back a little bit to how for '17 calendar '17 how UR's business model did shake out, I think you referenced high 50s gross margin kind of at year end, but I'm curious what does the model look like as we go into '18 with the growth here. Are we kind of expecting flattish operating margins close to 20% or how are we modeling that out for '18?

Okay I'll start with that one. There's actually a range because the growth rates are so high there is stretch growth rate and then there's a growth rate 50% plus. So the range of scenarios we could be in and we try to yet to put to some OpEx in early and then we try to meter it where we can. So this year we hit 19% operating profit with ended the year with our 58% gross margin. We actually wanted to bring more people on quicker frankly to position for another wave of high growth. So if we end up at 19% or 20% profit we're delighted. If we end up at 17% or 18% that might be a great story to if we've done the things strategically. So we're not driving it with a sharp eye on profitability it's much more on the growth and are we getting further ahead is what we're monitoring and pushing hard on. Because the market has many years of high growth thereafter and we want to extend our lead through with the best distribution partners, well trained, the best third party ecosystem accessories on our website, easy to do training and then development that makes it even easier to program. The more we can get ahead the more the numbers naturally in the subsequent years will certainly meet our mid-term model.

Okay, understood. And then just a question, Mark we have spoken maybe at the third quarter results as well and we've kicked up our SemiTest market size twice now in the past whatever four, five months. But I'm curious as we look into '18 given the puts and takes of Teradyne's share in memory versus SOC test would you expect to expand market share in '18 your slide makes it clear that you're looking for a similar share gains out to 2021. But I'm curious how do you think the Teradyne share does it hold in '18 or does it expand in '18?

So I think we would be delighted if we held our plans or to gain a bit of share. If you look at the two segments we're 50% of the overall market, but in SOC we're more toward the mid-50s and in memory closer to 30%. So to the extent the memory business hits the upside or exceeds the upside, we will participate in that. we might gain a little bit of share, but optically when you roll the whole year together it looks like the share to be flat when that all gets said and done even though we might pick up share in SOC. So it really depends on the math around the size of the memory market where our share tends to be below the combined average.

I see. Okay, very good. Can I just ask one last question, what share count are we looking at for the first quarter guide from an EPS perspective?

200 shares.

Okay, thank you.

Our next question is from Farhan Ahmad with Credit Suisse.

Thanks for taking my question. My first question is just on the deceleration in growth that you're forecasting for March. Can you just talk about why are we seeing growth decelerating from something like 20% for the last three quarters to like 4% in March quarter. And is there a risk that that further decelerates as we go later in the year?

Yes, I think that the growth in the quarter - there is a variety of factors. One think we talked about was Universal Robots being up last in Q1 over last year's Q1 due to the price increase we instituted a year ago that drove in extraordinary amount of buying into the Q1, '16 period. So you are well likely be up less than it's been growing at. If it's been moving at say last year's 70% Q1 could be closer to 25% kind of up numbers. So that's one factor. And I think the other thing is mobility having moved out of four weeks. What you see is that even last year the year before we began shipments in Q1 for the tooling for mobility. There is less of that in this Q1 because of that four week shift.

Got it. And then my second question is on SOC Test market, you kind of talked about the impact of memory test becoming larger and that might weigh down on your overall share in the combined ATE market. I wanted to dive a little bit on the SOC Test market. My understanding is that you don't play in the CPU GPU and in server markets for example, where things are pretty strong this year. So is that going to be a headwind for your market share in SOC Test overall this year, or do you think like you have some products in that area as well that will help you gain share?

Yes, I think we have participation in segments of that that will help us - that market was relatively strong last year, but as I mentioned to an earlier question the crypto GPU straightforward application sub-segment it's sub-$100 million. But when you roll GPUs together and the whole thing it's a $200 million. So outside of the strict GPU market, we do participate in some of these applications. I don't think it's of this - the market itself is of the size and our share position in that market would be below the 50% average. I don't think that's going to be a factor in moving our share up or down.

Got it. Thank you, that's all I have.

Our next question is from Atif Malik with Citi.

Hi, thanks for taking my question and congratulations in meeting your long-term EPS target three years earlier. And hopefully you can get the 2021 target earlier as well. Mark, I have a question on system test business, your sales and orders grew strongly in December quarter. Can you just talk about what are some of the new products driving the momentum here? And how big the opportunity is for these new products? And then I have a follow-up for Greg.

Okay, well as I mentioned, as we went through last year. Inside our system test group, we've had a storage test business that's been primarily focused on testing hard disk drives. That business has diminished over the years as the hard disk drive growth has slowed. And we repurposed that platform last year for more of a semiconductor testing application called system level test. We recognized most of the revenue for that initial project with the initial customer in the fourth quarter. So the fourth quarter bump there that you saw was primarily getting through deliveries and acceptance of that first instantiation. And frankly looking forward, we haven't put a lot of growth into that product in 2019 we're at the phase now, where we can go beyond this initial customer and look for some other opportunities in the market. And that's what we'll be doing in the first half of this year. So we have a sort of a steady business now with one account. And we'll be exploring whether we can expand that over the next six months. So sometimes by the summer we should have a verdict on whether this can be a growth business or not.

Great. And then Greg, with higher accessibility to offshore cash, you touched on the M&A strategy, but you talked about software being an area of interest, but you are using third parties for infrared sensors. Is your strategy on UR fundamentally different from and I think robots still using sensors and AI. Can you just talk about or elaborate on your approach on UR?

Okay, I think Mark will pinch in on this too. Our approach has been to distinguish our cobot based upon ease of use, that is the very different approach we took to automation so that a shop for operator and not an engineer is able to train our cobot and repurpose it when demand changes in their factory or a small manufacturer. And that's why, somewhere about half of our customers are small and medium enterprises. So, it's a different approach than what I believe others have originally taken, now there maybe others trying to do what we're doing. But it's not easy to do, because you also have to build up a distribution and an integrated network that can be good selling one or two cobots at a time. And most companies we find like chasing the large, the very large orders which tend to be multi, multi, multiyear sales. So, we've tended to have a different focus and a different go-to-market approach. So, we continue to do things that make it easy to use the cobot and will be new enabling technologies I mentioned vision modules coming down, that'll make using vision more likely for bin picking or advanced applications, where vision can help you getting deeper into a tray or a bin. So, I think there's lot of innovation yet to come in areas around the cobot that the cobot can take advantage of.

Thanks.

Our next question is from the line of Edwin Mok with Needham.

Great, thanks for taking my question. My first question is in UR margin, I think your OpEx increased on face value is growing at a faster rate in the 50% plus top-line growth, does that mean that we might see some operating margin pressure this year on UR?

UR and the gross margin, line you're referring to?

No, on OpEx, you said that you'll grow from $16 million exceeding loss share to $30 million loss exiting this year. So, that's growing at a faster than 50% rate, wouldn't that have some specially in your operating margins this year.

It is possible that we may not end up at 19% or above, where we ended up this year, because as I mentioned, we didn't bring out as many people as we wanted to. We actually weren't targeting 19%, we were targeting 15%. But there is a challenge bringing on as many people as we wanted and that got somewhat delayed. So, I don't consider it challenge, if we end up at - next year at 17% versus growing to 19%, to me it's not a challenge it depend on what we look like. If we get to 17% as a number and we're growing at a healthy rate and we see the next year as another strong year, because we put in the investments necessary to continue this 50% plus healthy growth rate, then I think we'd all be very pleased. So, we're much more focused on maintaining the high growth because we know the opportunities are out there, it's a matter of us tingling the awareness, lowering the transaction cost to put a cobot and by making it easier to use. So, that's where our overwhelming focus is. We have really no worries about the operating profitability. Frankly, we're way ahead of where you might expect us to be at 19% given the growth prospects of this business.

Okay, great, that's helpful. And then, I have a question on the 2021 model, if I have done my math correctly your auto test part, your system plus widest test. You are actually modeling to grow around that 4.5% CAGR from '17 to '21 what's driving that, is that market growth like 5G turning on or is it new product and comps, specific on the new product I think on the last question, regarding system level test, my understanding that's more for testing Semi on the system application, right? And historically in SemiTest especially in mobile semi, pretty much each chip maker select the ATE and costing [ph] with them in there's a lot of stickiness and very hard to gain share against your competitors, because customer are qualified. Is that the same kind of dynamic swing all in system level test?

Okay, I'll take the first part of the question, the growth rate in the other test, you're correct, it's in 5G wireless test, that's the one element of those other businesses where we see credible meaningful growth. The other businesses are more 2% or 3% GDP growth. 5G is 2020, 2021 thereabout and we believe we'll be well positioned for it and we have some integrated 5G product that is out with a chipset company or two now. So we're in a good position all be it's very early and 5G would be new to us because we were in 4G, but didn't have meaningful share because we got to that market late. But we don't plan on getting the 5G late. As you might recall we're the leaders in connectivity, but the seller side has been more difficult for us to break into. On your other question about is it sticky with system level test. I don't see it that way. What we're seeing as is that there may be more applications that need system level test that didn't have it before. So some of these more advance semiconductor devices mainly in addition level test to read out the harder to find false. And there may not have been any system level test in the past so it's a greenfield. But the challenge for us is a good for us meaning can we leverage our existing platform, if we can't and it's a whole new to design then it probably isn't worth it to us. So that's what Mark was referring to what you were going to look to see if there is other opportunities, but they have to fit with our platform.

Great, that's all I have. Thank you for squeezing two in one on that one.

And I am afraid we have a time for just one more quick question, please.

Thank you. Our final question is from the line of David Duley with Steelhead.

Thanks for slipping me in, I appreciate it. I was wondering on the robot side of things, initially you talked about being able to take that into some of your larger electronics customers. And I think you've been highlighting on conference call the average sale is still two or three units. Could you talk about what the average sale is currently per customer on the robots and if you have had success moving into larger electronic customers?

We have a small number of customers that we call on from other divisions LitePoint and our production board test group. One is an automotive Tier 1 supplier we're in and another one is an Asian production PCB board supplier and they do assemble as well. So there is two that are over 100 cobots there tends to be coordination that we're able to help the Universal Robots, distribution team get to the right person. But there hasn't a list of 15 accounts that I could point to you and say here is the leverage. Well we've given Universal Robots significant leverage frankly is cost down on the material pipeline, we've gotten them several gross margin points. We're able to help them hire people much faster around the world open up more offices. So there is a host of things that were able to help them move faster, we help them with engineering quality, we bring some people over there to learn best practices and pick and choose what fits their culture. So we're helping them in a number of areas on the customer facing there has been some help, but there is not a list of 10 or 15 accounts that I have.

Okay. And one final thing for me is on the high performance computing segment, is there any sort of crossover point in complexity or speed where you might be able to insert yourself in a large way in the GPU market?

Yes, I think what's happening in the GPU space or the array processing space is right now a lot of diversification, there are a lot of companies that do not traditionally make silicon, developing custom silicon for their applications whether these are automotive companies or consumer goods companies, web infrastructure companies. So I think like we're seeing with memory a diversification of task specific let's say GPUs or array processors, that's what point on right now. So when we get into next year I think you'll see this array of suppliers doing custom A6 for their own end markets. And that's frankly where we see the ability to participate and where we're focused.

Thank you.

Okay, folks. Thanks so much for joining us. Sorry to be going over just a minute or two look forward to talking to you in the days and weeks ahead. Bye, bye.

Thank you.

Ladies and gentlemen this concludes today's teleconference conference. You may now disconnect.