ParkerVision Q3 2007 Earnings Call
November 5, 2007
Paul Henning, Cameron Associates
Cynthia Poehlman, Chief Financial Officer
Jeffrey L. Parker, Chairman and Chief Executive Officer
Michael Donahue of Emerging Growth
Greg Lewin, from First
Jack Silver from SIAR Capital
Mark Gaskill from MKG Financial Group
Stephen Hansel from Eclectic Investment Management
Bob Sales with Alan King Capital Management
Jim Whitten with Laidlaw
Operator: Good day everyone and welcome to the ParkerVisionís Third Quarter Earnings Results Conference Call. As a reminder, todayís call is being recorded and at this time, for opening remarks and introductions, I would like to turn the call over to Mr. Paul Henning. Please go ahead, sir.
Paul Henning: Thank you. Before we get started, I want to remind listeners that this conference call will have contain forward-looking statements, which involve known and unknown risks and uncertainties of our business -- our businesses and the economy and other factors that may cause actual results to differ materially from our expected achievements and anticipated results. Included in these risk factors such as the ability to maintain technology advantages in the marketplace, achieve timely market introduction and acceptance of our products, maintain product patent protection, and the availability of capital among others. Given these uncertainties and other factors about our business, listeners are cautioned not to place undue reliance on any forward-looking statement contained within this conference call. Additional information concerning these and other risks can be found in our filings with the SEC, the Securities and Exchange Commission.
Weíll begin todayís call with the Cindy Poehlman, CFO, whoíll review the quarterly financial results for the third quarter. Sheíll be followed by Jeff Parker, the CEO of ParkerVision, whoíll report on the companyís business activities. Cindy, would you like to go ahead, please?
Cynthia Poehlman : Thank you, Paul and thanks to those of you who are joining us for our third quarter update. For the quarter ended September 30, 2007, we reported a 194,000 in revenue from Engineering Design Services and 284,000 in service revenue on a year-to-date basis. There was no revenue for the comparable period in 2006. We reported gross margins of $20,000 or 10% for the quarter and $32,000 or 11% for the nine month ended September 30, 2007. As I mentioned last quarter the margins are significantly impacted by the allocation of indirect engineering costs, to cost of sales.
These costs include facilities, overheads, equipment depreciation, and patent amortization cost that would be incurred regardless of the revenue generated for services. As we reported in our 10-Q issued this morning these indirect costs represent approximately 38% to 40% of total cost of sales.
For the quarter ended September 30, 2007 weíve reported operating expenses of† 4.9 million compared to 4 million during the same period in 2006. On a year-to-date basis weíve reported operating expenses of $14.2 million compared to $13.2 for the same period in 2006. The increases in operating expenses are largely a result of our ability to successfully sell certain budgeted RF engineering and IC design positions as well as ongoing prototype design and fabrication cost. Itís important to note that these increases are not directly related to our relationship with ITT but rather represent our investment in continuing to iterate on silicon verified IP in anticipation of future customer needs.
We reported a net loss of† $0.19 per share this past quarter compared to $0.16 per share for the same period in 2006. On a year-to-date basis our net loss per share was $0.55 compared to $0.54 for the nine months ended September 30, 2006. We ended the third quarter with 17.7 million in cash reflecting a 1.8 million net use of cash in the third quarter of 2007. This $1.8 million use of cash represents approximately $3.8 million used for operations, investment and equipment, and investment in intellectual property and approximately 2 million in cash proceeds from the exercise of warrants and options during the quarter.
Our cash usage for operating and investing activities continues to average approximately $3.5 million per quarter. For the first nine months of 2007 this use of cash has been offset by $6.5 million in cash received from the exercise of warrants and options with weighted average exercise prices ranging between $8 and $9 per share.
I will be happy to address any questions you may have regarding the financial statements during the Q&A session at the end of the call today but for now I would like to turn the call over to Jeff Parker for an update on business activities. Jeff.
Jeff Parker: Thank you, Cindy and thanks to those of you who are joining us this afternoon for our quarterly update. I would like to take this opportunity to update you on three distinct subjects that are at the top of our minds and likely yours as well.
First, the progression and status of our activities with our first the d2p customers ITT; second, a report on where we are in reaching our key goal to gain design wins within the OEM wireless handset community; and finally a view of the progression of our technology and the markets that it will serve. All three of these topics are interconnected in complementary ways and should help you continue to follow the strategy, strength of opportunities, and future of our company. So first letís start on ITT. As you may the call, our first steps with ITT were to define the product implementation and architectural approach of our technology for certain applications within their marketplace. That work has been ongoing since we entered into our agreement and continues today. What is encouraging are the synergies between the commercial product development that ParkerVision had already been doing and applications that ITT can apply our D2P technology to. While I am not at liberty to describe their product plans, I am able to tell you that the fundamentals of our technology as a flexible platform and its ability to process many different RF waveforms and to do so efficiently in both power usage and hardware implementation continues to be the value proposition of our technology.
I think that is important because there are certain growing trends in wireless communications that are an extraordinary fit with our intellectual property. This will be one of my discussion points at our upcoming presentation at the annual AeA Investor Conference where we will begin to present tomorrow. So in short, our work with ITT continues and as I noted during our last call, the ITT relationship and their applications with synergistic with and would not distract us from our primary market target, the wireless handset OEMís and their suppliers and that continues to be the case.
So now letís move into an update on our progress and the goal of finalizing initial design wins in the wireless handset markets. This is a tricky topic to discuss with you not because we are not making great progress because we are, but because there are genuine constraints of what is and is not appropriate for ParkerVision to discuss publicly before the fact.
So here is what I think is appropriate to share with you today. We have made very good progress on several fronts towards engaging in our initial agreement. I would say that we are in a similar territory when early in this year I told you that I thought there would be a good possibility that we would have an unscheduled conference call update before our next planned financial update. That comment preceded our announcement of our ITT relationship. At this time we are certainly keeping our legal counselors busy. Obviously I want you to understand that I canít guarantee this. If we controlled all the factors on both sides of the negotiation towards a final agreement then we could, but we only get to handle one pen, there are other pens that we donít control but we are engaged with parties that are cooperative, enthusiastic, and wanting to get the closure so the products can be fielded sooner than later with our technology.
Finally, I want to make some points on what is happening in the wireless mobile communications marketplace and the trends that we see which are squarely in favor of continuing to build shareholder value from what ParkerVision has developed in both intellectual property and actual hardware implementation. AeA is providing us a great forum to update the investment community on the converging market trends that will enable ParkerVision to continue building significant shareholder value.
Hereís the sneak preview of our theme. ParkerVisionís intellectual property both our D2P power transmitter technology as well as our D2D direct conversion receiver technology have enabled us to create hardware platforms that can now be rapidly applied to a wide range of mobile products, not just singular products. This is an important distinction as opposed to having created a singular piece of hardware for a very specific application and enables us to participate in the growth opportunities in this industry in unique ways.
The trend in the wireless mobile communications market today is truly one of those ďbuild it and they will comeĒ opportunities. Network carriers have poured billions into creating third generation networks. Have just started to deploy third generation devices in volume and yet the dialogue in our industry has never been more lively about what will be the foundation for the fourth generation network and how quickly can those get built. Additionally third generation networks havenít deployed without a hitch, there are still plenty of improvements that are being sought after, from less extensive 3G devices to 3G devices with better talk times and longer battery life.
So why is the industry already active in looking ahead to 4G even before 3G is perfected. The reason is that vision always precedes reality and the universal vision is for an un-tethered world where voice, data, and multimedia are available anywhere without wires and at fast speeds on all kinds of devices. The reason this fundamental trend is important to ParkerVision is that the platform technologies that weíve developed address in meaningful ways about every significant goal for improvement than one would hope for from the RF transport portion of todayís and tomorrowís complex mobile wireless devices.
At the AeA conference from which one of our sessions will also be webcast, we will discuss in more detail why there is a growing belief among industry experts for the need for software definable radios, and how our technology uniquely addresses that need right now. Why experts believe that unique devices will be required to support the convergence the industry seeks, and how software definable devices enable that vision. We will provide an update on why the efficient use of power in generating 3G and 4G RF transmissions is still lagging way behind the goals of marketers and consumers alike, and why that piece of the wireless product being efficient is so important, and how far ahead ParkerVision is in delivering those efficiencies right now.
We will discuss the types of application that both veteran wireless industry giants and industry giant newcomers are looking to make common place, and why the legacy RF transport technology of today gets in the way of enabling the optimal consumer experience that many of these companies dream of delivering to their consumers and how the new architectural approaches of our D2P and D2D technologies go a long way toward resolving those shortcomings.
ParkerVisionís investment to build the portfolio of IT and supporting hardware that we have has been a good one and an investment that we believe will continue to grow significantly more valuable as adoption of our offering converges with these important industry trends. Let me close by saying, we are gratified and extremely encouraged by the pace and progress of our initial contract win for D2P, our relationship with ITT. In addition to its success on its own merit, it provides a solid roadmap for our company as we close in on our first design win in our primary target market.
Just as importantly that market continues to evolve and grow in the direction that we believe, plays into the strength of ParkerVision. More players for a variety of reasons are looking to gain a leg up as we move towards 3G and beyond. Finally, we have every reason to believe that we are ever closer to finalizing our initial design win in the wireless handset arena.
I hope that you will review our AeA webcast as it should help you get a good understanding of why ParkerVisionís technology has the potential to become -- to continue building shareholders value for the near and the longer term.
And now I would like to open up this call for your questions.
Operator: And our first question today will come from Michael Donahue of Emerging Growth.
Michael Donahue: Hi guys.
Jeffrey Parker: Hi Michael.
Michael Donahue: In terms of contracts and OEM deals, how is the picture look now compared to last quarter, is it still 2 to 3 are you seeing companies that are close to signing a deal or how did that look?
Jeffrey Parker: There are several that we are negotiating with and Michael, it is far enough along thatís why I am willing at this point and Cindy is willing to allow me to say that we are pretty confident that we will have a need for a special call to announce anything thatís material regarding those.
Michael Donahue: Okay. Can you just give me sort of a picture of like when your prospective customers expect to have product on the shelves or whatís their goal to have ParkerVisionís technology designing into products that will be on the shelf and the timeframe its going to take from a deal to be signed in order to get product to market some sort of, so we can take a look out?
Jeffrey Parker: Sure. The applications that people are looking at still are in the cellular 3G space. And weíve been iterating away on ICs and implementations anticipating these will be our first customer, so which we can help them get to market more quickly instead of starting from back from a further place. It is reasonable that with certain customers we are talking to that they could start incorporating ICs that have our technology in them and I think 12 months after signing the deal, maybe some preproduction sampling a little bit before then and kind of ramping from there.
Michael Donahue: Okay. Thatís all I have, thanks.
Jeffrey Parker: Okay, Michael. Thanks.
Operator: Our next question will come from First New York Securities, Greg Lewin.
Greg Lewin: Hello, I just want to go through in the -- there has been a lot of public commentary recently from Google and I want to use it as a template if we could, because there was a -- they had an announcement today where they must have spoken about 20 vendors both hardware and software who are participating in their initial product launch, which is not their phone, but their open platform.
Jeffrey Parker: Right.
Greg Lewin: And in fact just yesterday in the Sunday New York Times, their principal -- Mr. Reuben came on and was discussing his passion in developing a phone that was -- he used the exact phrase ďa complete digital systemĒ, I donít believe that could have been a journalist coming up with that, I donít imagine a journalist would not know that a system wasnít completely digital in a cellular handset? And in your last call you spent a lot of time quoting Steve Jobs and the inadequacies that he was quoting on why he chose the system he chose for the iPhone, and I am wondering, there seems to be obviously the drum beat as soon as Apple and Google hit the trading floor these companies whether theyíll be named LG, or Samsung or Nokia, they know that the temperature is rising regarding competition and what the reticence is then in signing a deal or why these other people who have Google is able to announce 20 partners all of which by the way seem to signal the need for more battery life and yet it doesnít seem to be a topic that is so germane to their conversation, is the awareness sufficient or are we missing something about this relative to the value that you add to the proposition?
Jeffrey Parker: Greg, let me try and understand your question. So is your question, does the OEM community understand and appreciate the need for longer talk times and greater battery life in 3G products and beyond, is that what youíre saying or...?
Greg Lewin: Yes, and where there has been public announcements with public partners that obviously you havenít participated in which if you analyze a Google phone and their expectations for these things or as we saw with Apple which what came out, the need for battery life and power consumption, these are critical variables and yet havenít been driven quite to your doorstep yet when you seem to have a component of the solution that would directly impact some of the questions that leave them asking?
Jeffrey Parker: Well let me say this and just about as much visibility as I can give and still be appropriate, when I look at whatís pushing the next deal, ParkerVision -- conclusion with ParkerVision and I see kind of how this is all kind of coming about. It is being helped along by various influencers all throughout the food chain. In previous calls I have talked about the fact that we launched a year ago I think, serious activities to educate network carriers about what we bring to the mobile handset and the mobile device, and the carriers a year ago or even a little bit longer, were sitting there going, well, you know, we think that talk times are going to be 4 hours, 3.5 hours, 5 hours and then after these devices actually get deployed in real consumersí hands it turns out it is more like an hour and a half or an hour. So, some of it is the difference between people hearing whatís going to be the reality and actually then experiencing it and then also becoming influencers to the people who are going to incorporate the technology into actual solutions.
We never expected a network carrier to be a direct purchaser of our technology but weíve always hoped they would be influencers. Thereís other companies in the space that weíve been engaged with and I believe when we look back on our first commercial handset design win and then beyond that we will find that many of the people we spend time with who are influencers played a really important role in getting those first deals done. So your observation about Google is one really of† -- there is a company thatís going to be an influencer for a lot of companies to go off and build handsets that enable another experience for the consumer even though Google themselves may never build specifically a handsets. And thereís a lots of companies out there now that are pushing OEMs to do things, to give consumers a better experience that allows them to uptake more of the network thatís out there in 3G, and to build the momentum so that there is money for 4G and beyond.
Greg Lewin: If we were able to ever access decision makers at firms like Apple and Google would we find out that they are aware of ParkerVision?
Jeffrey Parker: Thereís no question in my mind that they would be, I canít say that all of them would be but certainly some of them would be, yes.
Greg Lewin: And the advantages of the platform that youíve been describing are things that would be somewhat, they would be aware of ?
Jeffrey Parker: Oh yeah.
Greg Lewin: And is there any other person that you have come upon both publicly or privately who you think offers the advantages that your new science offers?
Jeffrey Parker: No and we are going to discuss that in the AeA conference, thatís why I mentioned the webcast. I think it would be helpful to people to kind of get their arms on an update around what is out there in the marketplace and how does it stack up. Because people, like we have said, are continuing to making a little incremental increases but in the overall scheme of what needs to be done its far, far short from what we will provide. I mean if you go back and look at what Jobís quote was, ďI want five or more hours of talk time on a 3G networkĒ. Well those incremental gains are not going to get them anywhere near that.
So, weíll discuss that and we are also going to discuss a little bit more about where does the power consumption in a handset come from because we get calls all the time from investors reading about improvements in various subsystems in a handset, improvements in baseband processors and things like that. And what will help you understand in context what percentage of the total power consumption is that and if I cut the baseband processor power consumption by a third, about 50% does that get you there and the answer is no, not even close. So weíll help you get visibility in our webcast on that -- on that very topic.
Greg Lewin: Thanks Jeff.
Jeffrey Parker: You bet, thank you.
Operator: Have a question from Jack Silver from SIAR Capital.
Jack Silver: My question has already been answered, thank you.
Operator: Next up is Mark Gaskill from MKG Financial Group.
Mark Gaskill: Hey Jeff, Mark Gaskill at MKG Financial.
Jeffrey Parker: Hey Mark.
Mark Gaskill: Hi, I just had a quick question, its sounds like thing are moving forwards and thatís always good to hear. With the contract that was picked by ITT obviously there is other directions that ParkerVision can go. I guess I am just curious, there has been a lot of products, we see a lot of advancements made in the [inaudible] with new chipset products, has there ever been any conversations with these companies as far as joining forces and obviously some of these companies would probably like to move forward, and if they see ParkerVision coming obviously that joining forces might make a whole lot of sense?
Jeffrey Parker: Well, you didnít ask the question exactly the way I am going to answer, but I think it will still be helpful to you, so I canít use -- I wonít use specific names, because weíre under non-disclosure with I think everybody we are talking to but, categorically are we in dialogue and some negotiations with companies who are baseband companies, sure play PA companies, companies who have transceivers, and handset companies the answer to all of those is yes. And I mean, there is interesting reasons why baseband companies would be interested in our technology and there is interesting different reasons why even pure play PA and transceiver companies would be interested. So, yes, those companies are definitely categorically keeping their eye open for where is the industry going, whether the next generations of technologies that are interesting.
Mark Gaskill: Does this help you in your move to -- and talks with OEMs?
Jeffrey Parker: Oh, absolutely.
Mark Gaskill: Okay, pretty much done, thanks Jeff.
Jeffrey Parker: Yeah, thank you.
Mark Gaskill: Good bye.
Operator: Next is Stephen Hansel from Eclectic Investment Management.
Stephen Hansel: Thank you. You spoke about things that are effectively too secret to tell and describe the ITT agreement as material though it doesnít appear to be to me on the basis of its percentage of your expenses or certainly the net revenue as a percentage of anything. And what I am trying to understand is whatís the basis -- my first question, what the basis would be for your doing some sort of interim announcement of the sort you described earlier and of the sort you did with ITT, obviously on sort of a conventional materiality basis it doesnít qualify?
Jeffrey Parker: Well many of our investors in these conference calls, I donít know if you have listened to these in the past or not but as we are a pre-revenue company one of the things they look for as key milestones is are you getting design wins, is the technology being adopted, and itís a question -- and when will we hear more about that and certainly from an investor view point of not being inside the company, not be able to go in OEM sales calls with us, not being able to hear what the OEMs are saying, not completely understand the process, we try to give as much visibility to the investors as we can and so that everybody has kind of the same view at the same time.
So, as I said in this discussion today, canít guarantee it because I donít have the pen of the other parties in my hand but from what we can see of the cooperation and the enthusiasm and kind of how the agreements are progressing and the speed at which they are progressing, I am optimistic, very optimistic that we will have another call to announce our first design win in the wireless handset space.
Stephen Hansel: My second question relates to the patents and their age, you show about $10 million on your balance sheet related to the patents, and can you give me an idea of what the age of the really key patents is?
Jeffrey Parker: Oh boy, the D2D receiver technology, I means itís a -- it is a range, the D2D receiver technology, probably those initial patents started issuing 3, 4 maybe 5 years ago something like that. And the D2P transmitter technologies started issuing just this year. We have lots and lots of additional D2D and D2P patents pending, I think around 100 total and if you look at kind of historically over the last 12 to 24 months, youíll see that we issue maybe four or five patents a quarter, so I hope that gives you a little bit of a sense that thatís kind of the intellectual property portfolio standpoint at this time.
Operator: Our next question comes from Bob Sales with Alan King Capital Management.
Bob Sales: Exciting progress, couple of questions Jeff, in the last conference call, I think it was the last one, you said that, that quarter was a partial quarter with the ITT relationship and its kind of showing itself this quarter where I think the revenue if I am not mistaken is up -- nicely up sequentially. I guess my question is what should we expect going forward with that project in terms of the revenue trajectory obviously realizing you canít divulge everything but starting with this quarter a kind of a base line?
Jeffrey Parker: It honestly depends on some of the decisions that they have before them right now in terms of how much involvement they want in our designing circuits and other things for them versus how much of that they decide to do internally and versus how much they end up picking off of some of the things weíve already done for the commercial market space all of which are options that they are studying right now.
Bob Sales: Right, so for the next quarter do you expect the revenue then to be about the same or be down or up?
Jeffrey Parker: Honestly I didnít -- I did not even take a look at that to prepare for that. I donít know, thatís a good question I wish I had the answer for you right now but I really donít have that at my finger tips.
Bob Sales: Do you still have engineers engaged at ITT to the same level that you did during the quarter?
Jeffrey Parker: We do, but that again that goes up and down depending upon exactly where their decisions take them.
Bob Sales: All right. Okay, good, good. Second question for you is, you mentioned that in terms of tackling the huge opportunity in the wireless handset space you have talked to baseband guys as well as pure PA guys about this and we have a pretty good relationship with some of the PA guys despite the work we do the investment space in. I guess the question I have, what I want you to help me work through is in talking to RFMDís Skyworks, ANADIGICS who comprise 90% of the power amp business for handsets they have pretty much stated that they have looked at the ParkerVision technology and didnít find -- didnít really see a need to adapt it for their 3G progress and I am curious whether thatís consistent with the reactions you have had, whether they were talking to the wrong folks, or whether or not there is some piece of the puzzle we are not seeing?
Jeffrey Parker: You know, I donít honestly know who these guys are talking to in those companies, and I am certainly not at liberty to say which companies in that space weíre talking to. I can only tell you that it wouldnít surprise me if one of our future customers comes out of that space.
Bob Sales: Right, but you have indeed had pure PA companies that have been interested in your technology?
Jeffrey Parker: We have had very excellent dialogs with all those categories.
Bob Sales: Right.
Jeffrey Parker: And continue to.
Bob Sales: Right. Have you ever considered going down the path of just acquiring a power amp company as a way to introduce your technology?
Jeffrey Parker: There is all kinds of possibilities for the company in the future, but right now our focus is get those first design wins in the boat then we will have more options in front of us that I am sure we will be able to take advantage of.
Bob Sales: Okay, and then last question and Iíll turn the table to someone else. As we look at the progress of your attempts to commercialize the technology over the first couple of quarters I think, we heard that the technology was going to be one of low power usage for GSM, and then I think in the last call, there was a talk of more of a bias towards 3G technology and the needs of the exploding marketplace. Today you said 4G; I am just curious how you define 4G?
Jeffrey Parker: Okay, when I discuss 3G, I am really saying, those are wide band CDMA, or CDMA 2000 and often times those are including backward compatible EDGE and GSM applications. When I talk about 3G holistically thatís what I am referring to.
Bob Sales: And 4G?
Jeffrey Parker: 4G is still being defined but it is going to be likely the combination depending on who the network carriers is, of either with emerging is known LTE, long term evolution or Wi-Max or some variant of Wi-Max.
Bob Sales: †Right and so my question there is, if the 3G handset market is a 100 million phones in Ď07, Ď08 timeframe and the main power amp companies are developing as we speak very power efficient PAs that have to go into the handset, how do you view your opportunities to participate given that RFMD, Skyworks, ANADIGICS are all as we are today realizing, growing revenue in that area without adapting to your technology?
Jeffrey Parker: Well, it is interesting. I think when you look back on this you will find this is true I think of most any advancements in technology, you have your first movers and people who have vision and you have companies who would rather sit back and see if others do it and then they jump in later. I mean I have had companies whom we are talking to, who will continue to talk to us and say ďyou know weíre interested, weíll probably become a customer but you know something, we are not going to be your first customer since nobody else is doing it, we donít have to do itĒ and thatís an approach, and some people are very successful about that approach and there are other people who say ďI like what you got and I am going to use it to distinguish and differentiate myself from the competitionĒ and I mean that what makes the world go around. Not everybody has the same business model or the same strategy.
Operator: Our last question for today will come from Jim Whitten with Laidlaw.
Jim Whitten: Hi Jeff.
Jeffrey Parker: Hi Jim.
Jim Whitten: Two questions. First question, is roughly if you do get a contract in short time you consider that it would be sizable, size in scope?
Jeffrey Parker: All of the ones that I am thinking of are sizable in scope.
Jim Whitten: And secondly if you were in the short term to get a contract would you see other contracts shortly thereafter?
Jeffrey Parker: You know thatís a good question Jim. I thought about that earlier because I thought such a question would come in todayís call and from a 30,000 foot view here is how I am looking at it and I think it will play out this way. If you kind of look at when we started going out and soliciting interest in this technology in the handset space or in the industry wide space it was probably till we got our first agreement 18 months, 20 months something like that and I think if you look now from the time that agreement was signed until the second one, I donít know exactly the day its going to be signed lets just say that it will be maybe six months, seven months whatever, okay, eight months. So look at the time compression between the first and the second. I think you can see that time progressing as we move down the path and some of it is because there are companies that are sitting there on the sidelines going ďI donít have the pressure to do anything, there isnít anything out there that is better, so Iíll wait and see if someone else does itĒ. And some of those companies I believe will come off the sidelines when you get your next customer and say ďyou know what, I guess I need to get moving nowĒ. So, I do think that that will happen and I also think itís a function of ParkerVision has been put through a lot of due diligence by some of these companies and it creates a real, a very large body of information that people need to make the decision and that obviously make the decision for the next follow on company a lot quicker and a lot easier. So yes, Jim, I do think that youíll see the second agreement, will help you get the third and the third will help you to get the fourth and industries tend to move a little bit in a herd mentality and that would not surprise me at all.
Jim Whitten: If we go back to the first question if you anticipate a sizeable sign for the first one wouldnít that be an impetus for the second and third one?
Jeffrey Parker: One would think, one would certainly hope so, and I think thatís not an unreasonable thought.
Jim Whitten: Okay, thank you.
Jeffrey Parker: Thank you.
Operator: And that does conclude the question-and-answer session today. Ladies and gentlemen thank you for your participation and Mr. Parker Iíll turn the call back over to you for any additional or closing remarks.
Jeff Parker: Well to those of you who are out in the Bay area at the AeA conference I look forward to seeing many of you tomorrow and the next day and for those of you arenít attending the AeA conference I hope you will take time to go on our website later this week and take a look at the webcast so that I think it will be helpful in kind of bringing up to seed on again where ParkerVision is positioned in the industry and what our opportunities continue to be to grow significant shareholder value. So thanks for your support and for listening in and have a good day. Bye-bye.
Operator: Once again thank you all very much for joining us today. That does conclude the presentation. Have a great afternoon.