Good day, welcome to Intevac's 1st quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then 0 on your telephone keypad. Please note that this conference call is being recorded today, May 3rd, 2023. At this time, I would like to turn the call over to Claire McAdams, investor relations for Intevac. Please go ahead. Thank you, Irene. Good afternoon, everyone. Thank you for joining us today to discuss Intevac's financial results for the first quarter of 2023, which ended on April 1. In addition to discussing the company's recent results, we will provide financial guidance for the second quarter of 2023 and our outlook looking forward. Joining me on today's call are Nigel Hunton, President and Chief Executive Officer, and Jim Moniz, Chief Financial Officer. Nigel will start with a review of each of our businesses and our current outlook. Jim will review first quarter results and discuss our financial outlook before turning the call over to Q&A. I'd like to remind everyone that today's conference call contains certain forward-looking statements, including, but not limited to, statements regarding financial results for the company's most recently completed fiscal quarter, which remains subject to adjustment in connection with the preparation of our Form 10-Q, as well as comments regarding future events and projections about the future financial performance of Intevac. These forward-looking statements are based upon our current expectations, and actual results could differ materially as a result of various risks and uncertainties relating to these comments and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The contents of this May third call include time-sensitive forward-looking statements that represent our projections as of today. We undertake no obligation to update the forward-looking statements made during this conference call. I will now turn the call over to Nigel. Thanks, Claire. Good afternoon, everyone. I'm pleased to have this opportunity today to update you on our year-to-date activities, progress on the TRIO platform, and discuss the business environment in our primary served markets. First, though, I will run through the Q1 results. In our hard drive business, we achieved revenues at the upper end of our expectations due to the increased urgency and customer demand to drive aggressively towards their technology advancement objectives, resulting in an acceleration of upgrades deployed during the first quarter. With gross margin and operating expenses consistent with our forecast going into the quarter, the resultant net loss of $0.16 per share was also at the upper end of our expectations. I'll share my perspective today on the business environment affecting all electronics markets, starting with the hard drive market. As we're all very aware, the hard drive industry entered a period of softening demand around mid to late 2022. Around that time, we significantly moderated our growth expectations for 2023. Since that time, we've also discussed the reprioritization of customer demand, which effectively delayed plans for capacity additions in favor of a rapid deployment of technology upgrades. Our guidance for HDD revenues in 2023 has been consistent at around $40 million, roughly split between the first half and second half. Given the widespread weakening of customer demand across the electronics industry, the overall business environment has become increasingly challenging, especially related to forecasted growth rates for mass capacity drive demand. These recent industry announcements indicating further weakening of the HDD market are now putting a portion of the 2023 forecast at risk of pushing out. The fact that we've been able to largely maintain our 2023 HDD revenue forecast over the last three quarters, in spite of the continued deterioration in market conditions, is testament to our critical role as a technology provider and enabler for our hard drive customers. Our forecast for 2023 is primarily driven by technology upgrades that enable the migration to HAMR drives. There is no doubt that capacity additions have been pushed out and that the industry is utilizing significantly less than the currently installed media capacity. Even though our customers have altered their outlook regarding the timing of capacity investments, they remain excited about the long-term opportunities presented by the secular growth of data and the relevance of mass capacity storage as new data-centric applications emerge and more workloads migrate to the cloud. Our view on the latest industry feedback, however, is that the slowdown in the growth rate of data center investments will continue for some time. I will continue to meet with our leading customers each quarter in order to ensure we are sharing the latest data and outlook on each earnings call. In response to the current industry conditions, we are prudently managing costs and expenses as we weather through this drought in system shipments, and we are closely watching inventory dynamics to determine the timing and magnitude of any changes to our longer-term forecast. Finally, in what is now highly regarded as a game-changing development for Intevac, in late 2022, we delivered on our commitment to develop a meaningful partnership relating to a new product category. Intevac's development of the TRIO platform, a new product that supports consumer electronics and other applications, has the potential to provide a runway of compelling and sustainable long-term growth opportunities and revenue for Intevac far into the future. It is by far and away the most important development achieved by the company since the launch of the 200 Lean products 20 years ago. The recently announced development agreement was a key milestone in our growth strategy, as it has the potential to broaden our product line and increase the total addressable market we can reach. These have been extremely busy and productive first three months of 2023. On the last call, I highlighted that the process of transferring the technology from a test bed to a production tool and then into qualification would take a couple of quarters. I therefore am very pleased to confirm that at the end of Q1, we successfully completed the build of our first TRIO system, which is a significant and key milestone. The TRIO system is currently running samples and testing multiple configurations and chemistries to optimize the tool. Our partner continues to express their excitement about the TRIO technology and development program. Our next milestones are to move the tool to qualification at the end of this quarter and complete qualification ahead of market demand returning in 2024. Because of this progress with TRIO, we will continue prioritizing resources towards these new opportunities. As a result, during the quarter, we also made further investments in the TRIO development program, which we are able to make given our strong balance sheet. These underscore our confidence in the platform's future success. One key investment was to capitalize the TRIO tool for wider development activities and ensure we retain a capability for in-house coating for all our potential customers. A key driver of this decision was positive feedback from meetings held in U.S.A., Japan, South Korea, Vietnam, and Singapore during the quarter. However, in the electronics ecosystem, we have seen forecasts being significantly reduced, levels of consumer weakness that are just beginning to be understood, and development timelines elongating. Many OEMs have signaled that the industry's sharpest slowdown in more than a decade is lasting longer than expected. As such, we're responding to the evolving market conditions and customer qualification timelines and are still forecasting that initial TRIO orders will be placed around year-end 2023, with first revenues now in 2024. As we sit today, we have an incredibly strong team that can execute and deliver world-class products to the forefront of the markets we are operating in and pursuing and with great partners. Our objective on this call today is to ensure that our investors, analysts, employees, suppliers, customers, and all stakeholders recognize the important achievements over the last 15 months and our confidence and commitment in our strategy to deliver strong growth and financial performance for years to come. Underscoring our confidence and commitment to delivering this strong performance are the unique attributes of the TRIO. Before turning over the call to Jim today, I will highlight some key features about technology and platform we are developing with our strategic partner. TRIO technology leverages the 200 Lean's flexible and modular design that enable coating of glass discs. TRIO is able to coat fast-glass faster than any other manufacturing processes, resulting in higher throughput. TRIO is also more flexible than other manufacturing designs, and it does have capability for all form factors, including 2D and 3D shapes. TRIO's unique operating concepts enables a compact footprint. We continue to believe that over time, the TRIO platform will be developed for multiple applications and make a significant contribution to our growth plans. Despite the uncertain operating environment, our significant technology expertise, deep customer relationships, and strong fundamentals provide a solid foundation for us to execute on our business strategy. This includes expanding our served markets, diversifying our customer base, expanding market research, establishing a leaner and more diverse team of operational leaders, and continuing to deliver differentiated technology and manufacturing solutions to our partners and customers. In summary, we have launched into 2023 with continued progress following the transformative 2022 for Intevac. We are very excited about the future and our new partnership and development agreement for the TRIO platform. I will take this moment to emphasize just how committed we are as a company to increasing stockholder value and protecting the strength of the balance sheet. We made a decision to utilize our strong cash balance to make strategic investments in our future, and these investments will absolutely convert back to cash as we revenue multiple tool deployments in the coming years as we grow the business and transform Intevac into a consistently growing and profitable cash-generating company with a leading position in each of its key markets. Our goal is to emerge in these challenging market conditions as a stronger, more agile company with a return to profitable growth and leveraging our technology leadership. That completes my prepared remarks, and with that, I want to turn the call over to Jim. Thank you, Nigel. First quarter revenues totaled $11.5 million and consisted of HDD upgrades, spares and service. Revenues were at the high end of our guidance range of $10.5 million-$11.5 million due to the acceleration in pull-in of technology upgrades in the first quarter. Q1 gross margin was 40.9%, roughly at the midpoint of our guidance of 40%-42%. Q1 R&D and SG&A expenses were $9.2 million, just below the midpoint of our guidance of $9 million-$9.5 million. The Q1 net loss was $3.9 million or $0.15 per diluted share. The non-GAAP net loss was $4.2 million, or $0.16 per diluted share, which is equal to our net loss from continuing operations and excludes the impact of discontinued operations from the Photonics division. Our backlog was $120.7 million at quarter end, reflecting the $10.5 million of new orders booked in the quarter. We ended the quarter with cash and investments, including restricted cash, of $85 million, equivalent to $3.27 per share based on 25.9 million shares at quarter end. This equated to a net use of cash of $28 million in the first quarter. The most significant change in the composition of our working capital during the quarter was the roughly $14 million increase in inventory. As we discussed on our last earnings call, we have been making targeted strategic investments in TRIO-related inventory in support of the growth ahead. These investments, which begin in earnest in Q4 and which drove the majority of the increase in inventory during Q1, support the build of multiple TRIO systems over the next several quarters. To a lesser extent, a portion of the increase in inventory was in our HDD business and reflects a number of long lead time components that we had ordered over a year ago when our customers were on an aggressive delivery schedule and the supply chain was highly constrained. It's important to note that this inventory was already funded by advanced customer deposits received late last year. On our last call, we shared our outlook that we expect inventory to continue to go up as we go through the year, and that when you see a decline in cash, there will normally be a corresponding increase in inventory to support customer requirements. That being said, our cash declined more than we expected in Q1, and that is largely attributable to the $6 million increase in receivables year to date. This increase is directly related to the current, very challenging business environment in the hard drive industry and the extended payment terms we currently have in place with our largest customer. The cash portion of the P&L loss was about $2 million after adjusting $1.6 million of stock compensation and about $400,000 of depreciation and amortization. Total cash flow used by operations was $24 million during the quarter. The remaining use of cash in Q1 was from capital expenditures of $4 million, driven primarily from the TRIO tool being capitalized. We absolutely acknowledge and appreciate that the use of cash exceeded our expectations going into the quarter. We expect the increase in receivables will convert to cash within 2023. The increase in inventory will take a bit longer to convert, it absolutely will. Further, the additional HDD inventory is more than funded by advanced customer deposits. When these HDD systems orders were placed, we were on very aggressive shipment schedules with a highly constrained supply environment. As such, we made certain commitments to purchase critical components. Delivery of these non-cancelable orders will continue throughout 2023. Let me move to the current quarter Q2 2023 guidance. We are projecting revenue to be in the range of $8 million-$9 million. This would bring first half revenues to $19 million-$20 million, which is about 40% higher than the first half of 2022. We expect second quarter gross margin to be in the mid-30% due to the increased under absorption and a somewhat less favorable mix of higher margin upgrades. Q2 operating expenses are expected to be around $8.5 million. We expect interest income of about $400,000 and GAAP tax expense also of about $400,000 in the quarter. Most of the tax expense will be non-cash. We are projecting a net loss in the range of $0.21-$0.23 per share based on 26 million shares outstanding. For the full year, as Nigel mentioned, for the last few quarters, we have been consistent with our expectation that hard drive revenues will be around $40 million this year. With our visibility today, we believe as much as 10% of that forecast is at risk of pushing out to next year. This forecast continues to include 1 200 Lean system and a similar level of upgrades to 2022, and at this time, our full year revenue forecast does not include revenue from TRIO. Given this revenue profile and expected mix, we now anticipate gross margins for the year will be in the 35%-38% range. We expect ongoing operating expenses will be below the $8.5 million forecasted for Q2. As a result, full year OPEX is now expected to be approximately $34 million. We expect both interest income and taxes to be in the range of $1 million-$2 million in 2023. Our current expectation is that our use of cash for the remainder of 2023 will be in the range of $5 million-$10 million, which is largely comprised of planned material receipts in support of future growth. This completes the formal part of our presentation. Operator, we are ready for questions. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press Star, then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment please while we poll for questions. The first question is from Hendi Susanto of Gabelli Funds. Please go ahead. Good afternoon, Nigel and Jim. Hi, Hendi. Nigel, I'm interested in learning more about the probability that $4 million of sales to hard disk drive market may get pushed out to 2024. I'm wondering whether you can share more color in terms of how much visibility into that or in other words, when you will know whether the push-out may take place or not, and to what magnitude. Secondly is with regard to the push-out. Is the push-out primarily related to upgrades? Okay. Thank you for the question. As I said in the sort of prepared remarks, we have a very close relationship with all of our customers in the HDD sector. And I meet with them every quarter, and we look at demand, and we look at what they require for each quarter, and then through the balance of the year. We have a very good relationship, and sharing of data and good visibility of what they're thinking as well. As, as part of that, you've seen and you've heard a sort of push-outs both of data centers and some of that slowdown and some of that underutilization, which again, is all pretty public data. On the back of that, we are working with them to confirm a clear plan for this quarter, which we've put into the announcement there for the revenues. We'll work through them through the rest of the year. Every time we meet them each quarter, we'll go through each of those detailed demand plans. I think to being prudent to the moment, it's sensible to take out a percentage of the demand from this year. I think some of that demand will be some of the sort of more towards the sort of planned sort of scheduled upgrades of some of the systems going out this year. As you know, we have one system in this year. I think that will stay within this year, and the rest will be some of those upgrades moving out and really phasing it out from our customers. Does that help answer the question? Yes, I think that is helpful. Second question is for Jim. Jim, you mentioned that use of cash for the remainder of 2023 is $5 million-$10 million. You indicated that inventories will grow higher. Is there some insight into how much more increase in inventory we should expect throughout the remainder of the year? Yeah. I think, the increase in inventory, as Nigel alluded to, some of that will be conditioned upon the shipments from backlog that our largest customer in the hard drive wants the rest of this year. The other portion will be, we are continuing to invest in the manufacturability and the TRIO inventory to be able to support multiple tools in the field in 2024. We still have some supply chain constraints, so we're bringing some of that inventory in. Most of that growth, as I said in my prepared remarks, the $5 million-$10 million of potential additional use of cash will be really growth in inventory. Yeah. Nigel, do you have any update on HAMR and whether the timing of HAMR adoption by customers may get delayed or may still... or everything is still on track? If you listen to some of the key earnings calls of some of the HDD industries, it's been announced that the HAMR drives are have been manufactured are in the market for evaluation. The ramp is in starting in 2024. The schedule for HAMR, as far as I can tell from our customer feedback, is absolutely on track with evaluations this year and then into start of some volumes in 2024, I think. I, you know, that's the message I'm getting from our customers. I think everything around HAMR has been good, you've seen us over the last three quarters build that capability and support them. In fact, you know, we've played a critical part in enabling their technology. We're pretty confident that's coming through. I see. Nigel, would you remind us again what kind of milestone, what kind of technical milestone, in order to be able to recognize the first TRIO system revenue that is currently running a sample production at your customer? As we said in the last call, the system goes through completing build, which is the first mile, which we've done. We then go through from actually having achieved that build through running the process and running all the modules together. We added into the presentations that's on the website, a sort of schematic of the tool that shows the various stages of the processing chambers of that tool. We're now going through running that tool in an internal qualification around getting that process up and running. That's the critical next milestone, which we said we'll do this quarter. We then hand that over, we go through further customer qualifications on that tool, which will take us, you know, let's say another sort of quarter plus. That'll move to a, you know, fully qualified and adopted tool and we're looking at revenues once we're through that qualification in 2024. I mean, for me, as we said in the last call, this will take a couple of quarters. We still believe we are gonna deliver an exceptional product into the market. Our partner is excited about the technology. We are working on executing on that, and we'll keep everyone updated as... on each further call. We'll keep explaining where we are on each step of that timeline as we move to sort of revenues into 2024. The key achievement is to pass the qualification. Yep. Jim, for the increase in working capital, I assume that the majority will be preparing, the next TRIO systems. What I'm wondering is, for the next TRIO systems, will it be for production? Yes. The inventory that we are putting into place for TRIO will be for saleable inventory. Inventory that once qualified, is available to sell to the customer through our initially, potentially through our JDA agreement. Yeah, those inventory that we will purchase will be for sale, absolutely. Got it. Okay. The majority of the inventory growth will be TRIO from here to the end of the year. I see. Yeah. Thank you, Nigel. Thank you, Jim. Thank you, Hendi. Thank you. The next question is from Mark Miller of The Benchmark Company. Please go ahead. Good afternoon. I was just wondering, do you have an estimate for what the capacity utilization is at your hard drive customers? I think we believe that utilization in the market now is in the sort of 40%, 50% level. Okay. you mentioned, you're doing some long lead items. Has there been any improvements in pricing or in the component supply chain you've noticed recently? There's always interesting challenges in the supply chain. I think overall we're starting to see some improvements. I mean, there's certain specific items. Some companies had some specific issues in the last couple of quarters, which impacted their ability to supply. I think overall, the level of supply is starting to come, starting to improve, would be my observation. What about pricing? Is pricing starting to stabilize? I think overall, I mean, one of the things we're looking at is always around pricing, around long lead, long-term agreements. I'd say pricing is relatively stable. You gotta remember last year we saw some spikes and so some of those prices have stayed higher. I think overall the pricing is stable. Okay. Your tax situation, you're getting hit for about $400,000 per quarter. Does that change in 2024 when you start revenuing some of these tools? The majority of the tax that we see now is really from the hard drive business, which the income runs through Asia. It's really the tax that we make on the hard drive business. That could change depending on how much of the TRIO revenue we take with profit in 2024. Keep in mind, we have fairly large net operating losses in the U.S., so we'll be able to shelter that income for a couple of years. Thank you. The next question is from Peter Wright of PartnerCap Securities. Please go ahead. Great. Good evening, guys, and thank you for taking my questions. Yes. Nigel, I've got. Hello. Nigel, I've actually got three questions for each of you. Nigel, my three questions for you are really around TRIO, and the first one is around trying to understand the capacity potential of this marketplace. If I look at kinda your install base for hard disk drive at about 180 units. It's a roughly billion-dollar market with a $50 million annual kind of service opportunity. When you look at kind of the ballistic coating market, just specific to CE today, how do you think that market compares? Is there anything we can think of from kind of a sizing perspective to try and understand kind of what the TAM is? The second part to the question is, you know, technology has a, has a big spectrum on how significant the equipment vendor is to the equation. You know, process diagnostic tools have higher gross margins because they're a much bigger piece of process and design technology. Hard disk drive is maybe at the lower end, gross margins at 40%. Where do you think, because this is a technology you brought to market as opposed to, you servicing an existing market, how do you think that's gonna affect kind of the gross margin equation, you know, as this product ramps? The third one, if I can throw it out at you, is the timing around non-consumer electronic markets. Is there any discussions going on yet? Or, or from a time perspective, when do you think that's gonna happen? Okay. I might answer these in reverse order, just to spice it up a bit. The timing of other markets. I mean, there is incredible amount of interest in this technology. The meetings we've had in the last quarter have been not just with the current partner, but with other partners, other potentials. If you think about moving to, again, obviously, your initial question about the size of this market and market opportunity. You look at the trends, what's going on in the world at the moment. If you take the auto sector in particular, with hyperscreens and screens which are the width of a car, all glass, all curved, all now moving into that spectrum of having to be coated. As people moving into coated glass, thin glass for car dashboards, and thinking about how you make them user-friendly. You've got passengers having one section they're using and the driver a different section, and it's all touch screen. Those touches are creating scratches and smudges and marks, and you've got to have AR. Our technology absolutely fits the market requirements into the auto sector, and that's clearly an area where we've had some good discussions so far and potential opportunities in the future. That business, I've worked in that business and worked with the auto sector for many years. Often takes from a discussion and a concept to a new car design can take multiple years. I think there's a huge opportunity into that sector. It may take time, but the initial discussions we're having and initial opportunities, initial thoughts, say to me there's a great opportunity there. We're not just sitting back and going, "It's all about consumer devices and stuff," because we know that's a huge market opportunity. Therefore, that's why we've got the exclusivity and why we've got a strong partner to help us develop that market. Beyond there as well, we're talking to other glass suppliers and coating suppliers, looking at both life sciences, some small optical equipment, and to other areas of other sort of exciting new technologies which might come through in the next 5-10-year horizon. We're not sitting back and saying we're gonna put it all into one opportunity. Certainly, the meetings I've had over the last quarter and will continue to have with my team, that's why we strengthened the team with Eva Valencia and Mark Popovich to come on board. It's showing we've got opportunities, you know. It is, it's probably three years out, but there are timing and opportunities out there way beyond the consumer devices. For me, I'm pretty excited that we've got the right technology for a much broader play. I think I sort of covered that in my sector. What does that mean around technology? I think the technology we're moving into is a very competitive environment. Yes, we've got unique technology. We've got technology that enhances throughput. We have a technology that enables through the unique charge-art mechanism, which is where we actually take in the key parts in and out of one processing chamber. Enables it to be probably one of the smallest footprints. It's a very competitive market. As we said on the last call, I think for the moment around modeling, we should keep the sort of gross margins as similar to 200 Lean. It clearly for us is about how do we maximize that value. Also as I look out 3-5 years, there's an opportunity potentially to even look at coating in a different business model. For me, the opportunities this gives us to be game-changing for Intevac is immense. Therefore, we'll position that technology to maximize value for the company. Size of the market, it is much, much larger than the HDD business. We are still in the process of trying to quantify it and give you some better numbers and better scope around there. If I think about whether it's in the sort of smartphone sector, into tablets, and sort of the broader consumer devices, and then you think about the AR and, you know, opportunities for augmented reality, and then you look at the automotive, then you look at life sciences and so on. I just think this opportunity is significantly larger than HDD. Does that help answer those questions? Maybe in reverse order, but hopefully gives you. Yep. -a bit of an answer on each of those three questions. That's wonderful. I appreciate that. Jim, I have three for you, too. Unfortunately, not as consistent. They're a bit all over. My first question there is the TRIO™ build number. Can you share with us how many TRIOs you expect to build in 2023? The second question is there was a little pickup in PP&E as well. Can you share with us what the invested capital has been in TRIO™ to date? Kinda, how you think of, you know, really the return on investment in that business versus your legacy hard disk drive, if we can think back 20 years ago. Then my third question is a follow-up to one of the earlier questions. He was asking if the tools were gonna be production tools next year. For you guys, I understand you're gonna revenue them, but are they actually gonna be production worthy for the client, or are they gonna be R&D tools next year? All right. I'll try to answer them in the order that you did it. The TRIO quantity of build, I don't think we're prepared to give you the absolute number at this point in time, other than to be consistent, it's going to be multiple tools that we will build. The PP&E or the capital, one of the things that you saw, and you'll see tomorrow when we file the Q, and you can see it on the balance sheet from the press release or the earnings release, is, you know, we added about $4 million in capital in Q1, and the majority of that was a tool, a TRIO tool that we are capitalizing to have the capability to own that and to do multiple coatings for multiple potential customers beyond just the customer who we have a JDA agreement with. As Nigel said, that could be automotive, it could be virtual reality, it could be a number of areas where we think there's tremendous value in using some of our balance sheet to own a tool where we have control over who we talk to and the coatings and be able to do some improvements in our coating capabilities. It's going to be multiple. Certainly it's gonna be more than two, could be two or four. I'm not gonna give you a specific number, but that's the number for the TRIO builds this year. You can see when we talked about inventory going up $14 million, and the majority of that was TRIO. You know, that's a portion of those inventories that we're building. As far as the... You know, that's kind of the number of tools, the invested capital. I don't have a good number for you on the 200 Lean. I can tell you that we spent. You can look in our R&D last year. A majority of the R&D last year was spent on TRIO. The majority of the R&D that we'll spend this year will also be investments in TRIO to launch that technology and improve that capability. Your third question again, can you repeat that? I thought I wrote it down. Yeah. Do you want me to take the third? The third question was really about whether those tools go into- Oh, -valuation or to making real products or whatever. One of the reasons we're separating it. Clearly, we've talked about some of that market push, our market decline. One of the reasons we actually are going through a process of getting qualification and customer qualification here is to actually make sure that we actually put the time and use this opportunity with the market sort of slowing down a bit, to really make sure that tool is fully evaluation, fully qualified by our partner. One of the key benefits of doing that is then you get that tool into the field, and once it's in the field, you can go from delivery, installation, and into revenue for the customer faster. The tool we're doing with a joint venture partner in particular is going through extensive, and we'll probably use this opportunity to make that slightly longer, evaluation, testing, and sign-off here before that is deployed in the field. You know, no one wants to have capital in a field that's not actually making revenue for customers. I think it'll be. Those things, once tools hit the field, we'll start to produce parts as fast as they possibly can. Agreed. That's helpful. One follow-up. I'm sorry, Jim. Very last question is on invested capital. No, go for it. Is there a number that you have kind of to help me think about how much has been invested in the TRIO? I would say, now you have a combination of R&D. And keep in mind, the R&D and the TRIO benefit was all of the tens and hundreds of millions we've invested in the hard drive business. We've been able to capitalize on that capability as well as some of the prior tools to TRIO. I think in the last couple of years, the R&D is gonna be somewhere between $15 million and $20 million invested in R&D. And then part of the other investment is gonna be the inventory that we've invested to date, as well as we'll continue to invest the rest of this year. That investment won't stop at the end of 2023, 'cause there are gonna be applications and they're gonna be additional TRIO platforms that could be used for automotive, which may take different sizes than the current one. I don't know if you wanna add on to that, Nigel? No, that's a good point. I think as we, you know, deliver success here and actually look at sort of broader applications, I think there will be iterations of the tool. We will continue to invest for growth, but we will be investing for long-term profitable growth. Correct. The majority of our R&D investments will really be in the TRIO 'cause that's the platform that gives us that, as Nigel said, that growth in the future. That's exciting. It's clearly a much better use of capital than acquiring something. That's tremendous. Thank you for sharing that. Thank you, Peter. Thank you. There are no further questions at this time. I will now turn the call back over to Nigel Hunton for his closing remarks. Please go ahead, sir. Thank you. Firstly, I wanna thank all of our employees as well as their sort of counterparts with our industry partners for their hard work and dedication as we progress with our partnerships for the new TRIO™ platform, as well as the partnerships for the HDD's industry transition to HAMR. I think it's been an incredible performance from everyone. I also wish to thank our investors for their ongoing support. You know, clearly we need their support while these near-term macroeconomic challenges are adversely affecting demand in each of our markets. I'd like to thank the investors for their support in that remit. Also I'd like to say that if you wanna reach out to Claire directly, you want to follow up with us, and we look forward to updating you on our Q2 call early in August. With that, I will conclude today's call. Thank you. This does conclude today's conference. Thank you for joining us. You may now disconnect your lines.