Okay, good morning. Welcome to day one of the 25th annual Needham Growth Conference. My name is James Ricchiuti, the advanced industrial technologies analyst at Needham. We're gonna kick off the conference with a presentation from National Instruments. A company that's been with us at these conferences for a number of years. National Instruments, NI's been around for over 40 years, provide a wide variety of software tools that are used by engineers across a wide range of industries focused on programming automated tasks and automated measurement applications. We are pleased to have the CEO of the company with us this morning, Eric Starkloff. Eric's gonna run through a presentation, hopefully leave some time for Q&A. With that, Eric, please. All right. Thanks, Jim. I get to kick things off here. Thanks for being here with us early in the morning. I am gonna go through a presentation. I'll do it at a pretty good clip. I know there's a varying degree of knowledge of the company, I wanna kinda give that overview and we'll leave time for Q&A with Jim and with the audience. I'll remind you, of course, that there's risks in investing. You can see the risk factors that we enumerate in our filings and on our website, ni.com/nati. Now, most of you know that those are the basics. Jim said we're a test and measurement company, software-centric company that builds automated test systems for a variety of industries. Where I wanna start off is what actually distinguishes and differentiates the company. That is really around systems that are sort of flexible and modular and can be upgraded over time. The reason that's important is that it correlates our business to a set of applications that most benefit from that capability. These are applications where technology is moving and advancing at a faster clip. An example that we can probably all relate to is the active safety system in your car. You know, you've got a set of sensors, some compute and software that enables your car to stay in a lane, automatically apply the braking system or maybe semi-autonomously drive you around. Those systems you've all seen over the last number of years have been advancing really quickly. Like, every model year, there's new sensors added to vehicles. Maybe a new sonar sensor, an additional camera. There's new types of sensors being added to vehicles like LIDAR, of course, is the one that's on a lot of people's minds. The test engineers and the product engineers that develop those systems, they have to constantly keep up with those test system requirements. They need a system that can evolve over time, add a module to test that LIDAR sensor that gets added. They need to evolve the software when there's a new feature like that new lane keeping assist feature. That's new software that's required for that system. Applications like that, sort of fast-moving, evolving, NI has a platform of modular hardware and software-defined systems that is particularly well-suited for those types of applications. Our software, as Jim noted, is particularly important because we have the automated test software that's used to automate our systems, our hardware, but also the software that's used to automate systems across our entire industry. We're a de facto standard for this type of software. That becomes sort of really important. One of the areas it's important, as we go over time is that that software that automates these test systems, the point of a test system is to get data about the product that you're designing or building, and that data all flows through our software. We have been pursuing an additional opportunity to get actionable insights from that data through data analytics, which is an emerging growth opportunity in our industry and in our business. The company is well-distributed over a range of end applications. I'll talk about the end market opportunities, where we're focused, where the growth opportunities are in just a moment. Well-distributed geographically as well. The other way we look at the business is sort of the distribution across really validation test, automated tests performed in really the R&D function of a company. It's about 60% of the business. The testing that's performed in production when a product is actually built, which is about 40% of the business. Get that clicker. I have announced recently some changes to my organization. I don't need to go through the details of those, but I wanna tell you about them because they kind of allude or kind of speak to some of the priorities of the organization and focus of the organization. We, a few years ago, organized the company around business units that are by end market. One of the themes of the growth strategy of the company is really around secular growth opportunities and increasing our focus on those secular growth opportunities, our knowledge of those markets, and the capability that we can build on our platform to tune it to those specific opportunities. That's been a shift in the business and the organization of the business. I've also recently consolidated a set of operational functions under one of my leaders, Scott, and that's really about driving scale and efficiency as we, as we go forward and being able to meet or exceed the bottom line targets that I'll talk about as we go into 2023 and over the, and over the next three years. Also of note to this group, I recently brought on a new cfo. Just yesterday was actually Dan's first day. My cfo, some of you, many of you know Karen Rapp, is retiring from the company after a long career in our industry and at NI. She's gonna be a full-time rancher. Announced that back in September. Did an external search. I'd already announced Dan, and he started on Monday, and many of you will get a chance to meet Dan soon. He's a veteran of the semiconductor industry, most recently from Micron Technology. Okay, the company is well-positioned for growth and performance, but it hasn't always been that way. I like to start from when we started a huge transformational journey in the company, 'cause many people know us from sort of way back. If you look back, this is the year up to the year 2016, company had performed really well, but it got to a point where growth had stalled. We had flat revenue for a number of years and declining operating income as a percentage of revenue. The challenge was really, of course, a strategic one. It was about, you know, the type of customers that we were serving and the opportunity that we had in the future. As a leadership team, we had to transition at that point from the founder of the company. We sat down for actually a several-month process to examine what do we need to evolve in the company and transform from a strategic point of view and ultimately organizational point of view. We knew that our customers had been pulling us in a direction, which was we built these, sort of like use the example of LEGO blocks. We built these technology blocks that were used very, very broadly in our industry, and our customers in the highest growth parts of our market loved that flexibility that I mentioned earlier, but they also wanted the kits that your kids might use in LEGO, where it's put together and assembled in a way that addresses a specific application with the right software to address that specific application. That was the fundamental, sort of strategic shift in the company, is having more focus on top of the broad-based platform. Of course, like any simple shift in strategy, that there were tons of implications for how to execute on that over multiple years and really go on a transformational journey of the company. The result of that was a trajectory change in the performance of the business. You can see that, you know, we started to immediately see improvement on the bottom line, and then the top line took longer, as you would expect, in sort of getting into these focus areas and developing the technology. I'll talk about shifts in our channel to change and inflect the growth performance of the company. We actually started to see some of the underlying improvement in 2020. The areas of growth really started to take off in 2020, but it was masked by the overall macro obviously being down in 2020 and our overall revenue being down. As we came out of that, 2021, record year revenue profit. 2022, record year, has been on pace for a record year as well. Really a change in trajectory of the company. That's come from a deliberate transformation that has many different pillars that I'll speak to briefly and highlight in some other parts of the presentation. I'll talk a little bit about the change in go-to market, sort of how did we change our focus on go-to market for both growth performance, but also significantly better efficiency of the dollars that we spend in SG&A. I mentioned this focus on industries and secular trends, bringing the expertise in those end markets to be able to serve our customers and address the needs they have in these fast-moving secular trends. Building systems and solutions on top of our platform technology is really a key ingredient to unlocking more available market, and that's been a driver of growth. I'll touch in a moment about how we've shifted our software portfolio, which is such an important part of the company and our differentiators to be primarily recurring, to create resiliency in the business. Then finally, sort of this, you know, really engineering the company's operations, and the way we go to market and all those elements to be able to have better scale, in our expenses and drive improvements to the bottom line. I've shared back in September that our target of next year is to get about 25% non-GAAP operating income. We've also augmented that, primarily organic set of changes and transformations with, some primarily to tuck-in acquisitions that have enabled us to accelerate our focus in some of these end markets. Of note, we acquired, an analytics platform called OptimalPlus that gives us that ability to extend into enterprise software for data analytics. Over the last year or so, we've acquired a set of companies that give us a very complete capability for electric vehicle battery and other electric vehicle components testing and really a leadership position in that part of the market. That's become by far the fastest-growing part of the company, and I'll touch on that in a moment. I'll just build this. The result of all those changes and the trajectory change that I mentioned is that the company's mix has become much more favorable to growth and performance. We look at things like the target industry. The business units of the company are semi electronics, transportation, aerospace, defense, and government. What we call the portfolio business unit, which is the rest of the industry's kind of the long tail of customers that we serve. Those first three are the primary growth opportunity that's gone from 40, sorry, from 57% of the business back in 2017 to 70% of the business today. We expect to get to about three-quarters of the business in the coming years. The, the areas of the business with the highest growth potential have become a majority of the business and continue to grow in their mix. The growth applications within those industries are the highest growth areas: electric vehicles, active safety, 5G and wireless. Those have gone from a very small portion of the business to 38% this year, you know, roughly in 2022. We expect to be about half the business. The end markets growing the fastest, where we have focused are becoming a higher part of the mix. Correlated to that, our tier one accounts. I'll talk about our account strategy. These are the accounts with the most potential. They tend to be directly aligned with those industries and applications I mentioned. Those are the areas, those are the accounts and customers growing the fastest, and are making up a bigger percentage of the mix and where we see the biggest runway of growth out into the future. Briefly on the industries and the growth opportunities. This is a pretty dense chart. Of course, it's on... available to you on our website. Kinda highlights the business that we do in each one of the industries that we serve, the long-term growth opportunity. We actually did this three years ago. We published a range of growth for each of these industries over the next three years, kinda hit right dead on frankly, on all of them in those growth opportunities. This is what we expect over the next three years with some market information. I'll touch here on the primary growth drivers in each of those. In semi and electronics, the primary growth driver, our focus is on primarily wireless. Our technology lends itself to primarily wireless and mixed signal semiconductors as opposed to digital and memory. That's the focus we have in the business. Of course, these standards in mobile and in wire, you know, Wi-Fi and et cetera, those have similar attributes to the active safety example I gave in automotive, where a system that can be upgraded through software and modularity is really important. That is an area of growth. Look, we fully expect in the very near term to have some market correction in the semiconductor space, but are bullish on the long-term opportunity. This has been the fastest growing part of the company for the past five years, and this has been the part of the company where we were sort of first instantiating the new strategy that I talked about. We've seen that be very, very effective. Transportation is the area where the growth opportunity has changed the most. Probably, maybe not surprisingly, that industry is undergoing its own major transformation. That's gone from a sort of broad-based set of applications for us to a fairly focused set of applications around electric vehicles and active safety. Those two areas are now over 50% of the business, and they're growing very fast, you know, kinda triple-digit rates. This has become the fastest growing part of the company, and it's our expectation over the next few years that it will remain the fastest-growing opportunity that we're that we're pursuing. Aerospace, Defense, and Government has been a very good business for us. Steady, kinda mid high single-digit growth, even in downturns like 2020. A favorable spending environment, I think around the world in terms of defense spending. Most of our ADG is actually in defense. That is a steady and successful part of the business where our attributes or capabilities of our technology is very, very well appreciated. Portfolio, I mentioned that's the rest of the business. It's become a smaller percentage, and we've also deliberately focused on how do we create sort of more efficiency in the go-to-market motion of that business, which I'll touch on, and also more resiliency, for more and more of the portfolio business in particular is recurring revenue. That is the part of the business that has historically been the most sensitive to the macro. It's a smaller percentage, and we focus to make it more resilient with respect to macro swings. Get a lot of questions about the transformation we have undergone with our sales channel. It's been a big driver of the improvement on the bottom line. It's been about a 12 percentage point change in SG&A spend as a percentage of revenue, from 2017 till today. It's been fundamentally, again, a shift in the way we go to market from a, what was historically a pretty monolithic sort of sales channel where we treated every customer the same, and allocated a similar number of resources across that broad set of customers, to a channel that's tuned to the strategy that we have, which is about really focusing on where the growth opportunities are, and that's meant we have a sort of a three tiered channel based on potential. The top potential accounts, about 100, we call tier one. That's where a big driver of growth, I showed how that mix is changing over time. Those are aligned with those secular growth market opportunities that I shared. The name of the game in tier two is really direct channel but with scale and efficiencies. This is an inside selling channel, primarily in low-cost geos. You know, over the last few years, certainly we've shown as a society and business community, we can interact remotely really effectively. That's what this channel leverages. It's people on the phone and web and Zoom that are serving our customers in that next tier of accounts. A couple of years ago, we made a shift, a pretty big shift to tier 3 being served with distribution and through our online channel. That is how we serve our broad set of accounts. That's been a very effective strategy for us to drive efficiency and scale in the large number of accounts that we serve, and actually enable us to serve even larger set of accounts by leveraging distribution and digital. Take the commitments I make very seriously. I took on this, been at the company a long time, 25 years. Been in the CEO role since 2020. When I took on the role, I put out there an outlook for the next three years, that's represented in this chart. You can see the 2023 original outlook. That was the model that I shared in terms of expectations around revenue growth and bottom-line performance. Frankly, when I did that back in 2020, there was a lot of skepticism 'cause it represented, as I mentioned, a trajectory change in what we had achieved previously, and there was a ton of skepticism about our ability to do that. We're expecting now that we'll sort of hit those parameters or exceed them a year early. We have been really executing to meet or exceed the expectations we've set out. Now we've sort of reset the target for 2023 through 2025 with a set of growth expectations and bottom-line performance that far exceeds what we originally put out there when I took on the role. Now, there's one that I think is worth talking about, which is the gross margin, which has been a real strength of the company. Company's traditionally had close to 75% gross margins, very software-centric. This year has been an exception due to supply chain primarily, really almost exclusively. One of the impacts of supply chain to us, in addition to, you know, growing backlog and shifts in book-to-bill ratio has been that the broker fees that we've had to pay for certain kind of golden screw semiconductor components have been very large. That's had about a 450 basis point impact through the first three quarters in 2022, and we've had to absorb that, and we've done it with expense management to continue to be on track to hit the bottom-line performance that we set an expectation coming into the year. Now, the good news on that is, as we look forward, as the supply chain challenges and constrictions moderate, that margin will come back into the model, right? That will create the opportunity for flow-through and significant growth in bottom-line performance in 2023 and in the out years through 2025. This is the model that we've shared back in September for 2025, achieving 25% or more operating income on the bottom line. I'll talk for a moment about the top line, and Jim and I will probably share a little bit of questions back and forth on some of the things that lead to these expectations and how we're looking at it. The top line we talked about in September was I said, "Hey, I'm not, I'm not here to predict the economy, but I'm gonna plan for a recessionary scenario." What this sort of slide showed was here's a range of scenarios from a planning point of view. I said at the time, "Hey, we're gonna plan for that recessionary scenario line at the, at the top." Historically, in past performance of a industrial downturn would be suggest a -5% bookings would be a downside scenario in our, in our business. That's what that top line suggests. We're sitting at a point where even with that sort of -5% demand profile, we have a set of tailwinds in the business that give us confidence to achieve mid-single digit, or sorry, a mid-teens revenue growth in a -5% demand environment. You can see those on the slide. I'll walk through them briefly, but we've done a set of inorganic moves in EV, and we have a full year of those acquisitions that are also growing very fast. That adds to the revenue plan for 2023. We've been able to capture price very effectively in this environment. As that flows through into the pricing changes we've already done flow into 2023. That's an uplift to revenue performance. I mentioned we started this channel strategy a year and a half ago, almost two years ago. The goal of those distributors is ultimately to have stock. Given the supply chain environment, that has not been something we've been able to deliver on up until now. We expect to be able to start to deliver some stock into those companies starting in this year. Then we expect that backlog to come down some. We have seen backlog grow from sort of very low to it's about seven weeks right now. We expect to moderate that some, and that will flip around book-to-bill. I've seen that starting a little bit in Q3. We expect that to continue into 2023. The takeaway is even in a constrained demand environment, planning in a recessionary scenario, upside on revenue in the mid-teens. Kind of in conclusion, I know I went through that quickly. Wanted to level set us on the transformation that the company has undergone over the last few years, putting us in a better position from a revenue growth opportunity and a performance at the bottom line. We do expect as we move forward to be in a position to continue to grow and take share in the markets that we serve. We expect to be able to meet or exceed the expectations that I've set on bottom-line performance, which is 300 basis point improvement from 2022- 2023, and ultimately a 500 basis points or 25% non-GAAP operating margin by 2025. Then as I mentioned, and we can talk more as Jim comes up, we've been deliberately focusing not just on the revenue side of the business and the growth opportunities and the secular drivers, but also on the bottom-line performance and the resiliency of the business so that we can kind of go through different macro scenarios and stay sort of strong, growing share, delivering performance at the top and bottom line. With that, Jim, bring it back up, and we can go into a few of these things in a bit more detail. That's great. -slide. Thank you, Pierre. Couple of things. I wonder if we could spend a little bit of time just on the EV opportunity. Sure. I don't know if there's if you could perhaps size it for us. Yeah. I'm also curious, you know, and it's been around for a while. Yeah. How does this compare with other secular growth drivers that you've seen over your history? Sure. Sure. I'll start with some of the basics. We already had some position in EV organically. We have measurement capability and software that was being used to measure batteries and other EV components. The things we acquired are first of all, some high voltage electronics that enable those measurement systems to ultimately connect to the battery or the charging station. There's two companies that we acquired in Germany and the U.S. that have very strong capability in that kind of electronics. A company, another German company called Kratzer, that has the full sort of integrated systems for building battery labs. The biggest part of the opportunity today is primarily. Remember I said about validation and production. Today, this opportunity for us is primarily in validation. It is correlated to the investments automotive companies are making to deliver new models of EV or hybrid electric vehicles. Right? You see all those announcements every day, right? These companies that are gonna all electric by this year, deliver N number of models by that year. In order to do that, they have to build tremendous capacity to be able to prove out the performance of those batteries that ultimately enable them to do things like determine the range of the vehicles, the warranty that they're gonna provide on the battery, how long it's gonna last, that those data points come from the systems that we build, and partner with those companies to build. That's the primary opportunity. There are some other adjacencies to that. Our test systems are also used to test charging infrastructure and the inverter in the vehicle. Those are other important components. Ultimately, over time, we're starting some today already, but that will scale into a production opportunity over time as well, as production volumes of battery packs and modules and cells go up over time and more gigafactories are built. Just comparing it to other opportunities, I'd say, Jim Ricchiuti, this is one of the opportunities in sort of my career at NI, the urgency of our customers is probably the highest we've seen. You see some of that sort of in some of the wireless infrastructure areas that we serve, but the urgency of these customers to deliver this technology and capability and how far they ultimately have to go in terms of this type of technology between where we are today and where the sort of promise is, and even the demand is a huge gap. We see it as a very, very big opportunity. I mentioned the EV and ADAS together are already half of our transportation business and rapidly growing to be much more than half over the coming year plus. Most of that's EV. It's a pretty substantial opportunity, and we expect it. You and I were talking before we started. My point of view on it is it's a pretty durable opportunity. It's not like the capacity for battery labs is gonna be satisfied in 2023. It's gonna take multiple years of investment from automotive companies and their suppliers, and then a lot of investment ultimately in the production of those components over time where we're just getting started when you look at EV share today versus where it's gonna be. Okay. You alluded to this, just the transformation of the portfolio. That 25% of or so that's port- Portfolio ... portfolio business. Yep. In the past, that was certainly impacted more by the macro. Yeah. It sounds like even that 25%, there's been a shift in that business that gives you a little bit more visibility or is that fair? Yeah. Yeah. Let me characterize that. Let me mention one thing on my last answer, too, and then I'll come to the portfolio. The other thing I should mention about the EV opportunity is the analytics opportunity that exists on top of those systems. We've announced already that we're partnering one of the major lead users that we're working with is General Motors to do the software for the analytics systems on their batteries. We think that's a big opportunity going forward because again, lots of importance to the information that comes from those test systems that ultimately determines range, warranty, et cetera. Back to your question on portfolio view. Yeah, I showed you the mix slide that I showed. Portfolio has gone from 50%, 60% of the business, if you go far, far enough back now to under a third of the business. The mix has changed. We've also been very deliberate about how do we manage that part of the business for efficiency and resiliency. Let me be specific about the things we've done to be able to do that. One is the channel. The distribution and digital tier is primarily in that portfolio business unit. That's where most of our smaller customers are. It's really important in that area to have, first of all, a more scalable cost structure. If there are sort of, you know, volatility in that market, then our costs automatically kinda scale up and down. This enables us to do that. That's important. The other move that we've made is around resiliency. We decided last year, beginning of last year, to shift the rest of our software portfolio to purely a subscription base. We'd already been moving our, what we call our enterprise agreements. The motion that we have to sell our software into top accounts has shifted over the last number of years to be a subscription-based motion. It's not a perpetual license, it's a three year term for access to our software. Our larger customers have already shifted in that direction, but all of our sort of single seat, or smaller customers, which is primarily in portfolio business unit, we're still mostly perpetual licenses. In portfolio business unit, it's got a higher mix of software than in other other parts of our business. We made the shift this year to be subscription-based. It actually was, I should say last year. Always happens in January. It actually was a hit to revenue from a recognition point of view by about two percentage points to our 2022 performance, and then become sort of neutral to slightly positive in 2023 and we expect to be much more positive impact to revenue beyond 2023. We made that entire shift essentially last year. Now going forward, our software portfolio is substantially all on sort of subscription. That also helps with resiliency. We know from our past performance that regardless of sort of economic performance, that part of the business stays very steady and strong renewal rates. Our software's very sticky. Renewal rates are high. Renewal rates of our previous subscription that I mentioned, enterprise agreements, is in the high 90s. It's a reasonable expectation, we think, that that will contribute to resilient revenue performance through a cycle. Yeah. Going back to some of the targets you outlined, in terms of the top line, what you anticipate and could see. You're gonna get margin lift, gross margin lift. Yeah. it sounds like. How much leverage could we see on some of the OpEx items? Do you feel the need to. Yeah. -that you're gonna have to make some investments for given some of the growth drivers you see out there? Yeah. I think let's start with that gross margin one because I think it's a really important. I went through it pretty quickly. In some ways, if you think about it, we had this kind of extraordinary hit based on broker buys PPV in 2022. I mentioned that we sort of mitigated that in the bottom line with cost control. We had to take a number of actions in 2022 to do that. I froze hiring in April of last year, a little bit before it became in vogue, and took other cost-cutting actions to enable us to still deliver the bottom-line performance despite that 450 basis point hit on gross margin. The organizational changes that I led off with were sort of one of the ingredients of achieving that. In some ways, if you think about it, absent that one-time event, you know, we would have achieved a much higher, significantly higher operating income performance in 2022. We had that. We had that impact. We needed to do it to continue to support our customers and deliver our products and everything else. We do expect that to abate, and it's not a. You know, we have data to give us confidence in that. You know, we've started already, and we mentioned it in our Q3 call, we've dramatically curtailed our purchases of those broker buys of our components. Now still, some of that will still flow into the P&L, from inventory into the P&L over the coming quarter. It's pretty predictable once you stop buying them, how to map that out and what you expect on the gross margin line. I think that's gonna be a real uplift to the performance, bottom-line performance of the company, going into 2023. That combined with the already mentioned sort of, areas of cost focus and operations that I shared, give me confidence to meet or exceed the expectations that I've set of 23% operating income in a range of macro environments and including a meaningful downturn. We expect to be able to achieve that performance in a meaningful downturn. You guys have done some M&A, certainly over your history, you have as well. Mm-hmm. More recently as well. How should we be thinking about other pieces to the portfolio? Yeah. -or other markets that you may want to be, strengthening your position in terms of M&A? Yeah. The way I tell people about this is we have a lot of conviction in our strategy in the areas we're focused on. You shouldn't expect in the near term, like a different secular growth opportunity to sort of pop up on our radar. We're convinced that we're focused in the right areas. It becomes really about looking at can M&A in certain areas and tuck-in acquisitions enable us to accelerate the performance in those focus areas. The EV was a great example of that. We've enabled and found multiple different entities that really accelerated our performance in an area that we had already articulated as one of the major growth focus areas for the company. The other thing I'm kind of proud of the recent M&A performance is because we have that conviction around strategy, we've become much more proactive in the way we target companies that can add to that strategy. A litmus of that is that many of the more recent acquisitions were companies that, you know, weren't for sale. Which is always good when you're in that position and you're sort of building a pipeline and enabling, you know, this move to happen. You're not just in a sort of bidding process. That's been, you know, really, I think, indicative of the way we've been focusing. We're not sitting back waiting for things to become available. We're looking at what are the growth areas of the, of the company? Where can we do sort of a build versus buy decision that can get us in the position we wanna be faster? That's how we're evaluating and thinking about M&A. How are you thinking about some of the other growth drivers in terms of the changing macro environment? Clearly, on the transportation, the EV side, it looks like you have some line of sight. Yeah. As we think about some of the other areas that you've identified as growth opportunities, more multi-year, you know, are you seeing any changes? Sure. Out there? Yeah. I mean, I've mentioned semi. I mean, semi you got to think of in two time horizons. I mean, as I mentioned and I've mentioned previously, we do expect some correction in the semiconductor market. I think that's kind of well established at this point into people's expectations. We think of that, in terms of just setting the right expectations for the near-term trajectory of the business and everything else. We think there'll be some pressure there, particularly in production. Our semi business is about half R&D and about half production. Now, the medium term, I'm really bullish on. When you think about the regionalization of semiconductor supply chains, the net impact of that will be favorable to our company and our industry. Right? Because there'll be duplicative investments in the infrastructure required to build and test semiconductors in different regions of the world. You know, will that fully offset some of the pressure in the near term? You know, probably not. In the medium term, I'm bullish about the continued growth opportunity and, you know, I reflected that in a 10%-15% sort of three year growth CAGR in that market. That's how we think of it, and that's what we're seeing in the business. Last I'll mention on semi is that even within that space, you know, the wireless and the mixed signal part, you know, mixed signal is a lot of sensors and converters and industrial semiconductor technology, tends to be a more resilient part of the market. We think even within that space, we're pretty well positioned and not in the more volatile parts of the market in leading-edge processors and memory. Yeah. Then just a related question, just you already touched on it, but as we think about the CHIPS Act. We're starting to see the investments being made. Yeah, yeah. When do you guys start to see it in terms of these investments? We, you know, it varies a lot. We think of it a little bit of, you know, those type of investments do ultimately impact us and our, and our markets in a favorable way. You know, you can think of a sort of six-12 month horizon, sometimes flowing into longer in terms of how long it takes those investments. It's not so different. I get the same question, by the way, when there's a defense authorization. Mm-hmm. Defense, you know, R&D kind of gets funded. How long does that take? It's like 12 months, 12-24 months, like that kind of time horizon before it's purchasing happening in our industry. The CHIPS Act's probably something similar, maybe a little bit faster on some of it. Okay. I'm gonna open this up. Yeah. Any questions out in the audience? Yeah. I think in your three-year guidance, you had built in some headwind from some business mix shift. Just thinking of EV testing portion, can you just talk about- Yeah. the margin profile there? Is that the big headwind, I guess, to the business or? Yeah. The question was about the sort of headwind to margin on the EV portion of the business. Yeah, When I look at, you know, the tailwinds and headwinds, I mentioned the tailwind is the big PPV broker purchasing that's been a big impact to gross margin. Some of the mix profile and some of the larger systems we build, and including some of the EV sort of large EV systems have a lower margin profile, so that's built into that expectation, the 74% that I have in the model. Of course, we're focused on improving that over time. You know, we brought those companies in with a lower margin profile. We do believe ultimately by putting those together in systems with the right software, we can deliver something that's got value that's much greater than the sum of its parts. That's a focus, on my team to deliver that over time. We're sort of building in an expectation it'll be a modest headwind, based on the mix and the high growth in that area. When you think about the different pieces of business and the spectrum of margin profile across it, do you think that's the one big standout in terms of like lower margins going forward, the other pieces as well? That's the one that we've called out as an impact. Okay. We'll moderate over time. Yeah. Okay. I think we're gonna have to end it there. We're right at time. Okay. Eric, thank you. Thank you, everyone. Thanks, Jim. Appreciate it. Yeah. Okay.