Good afternoon, everyone, and welcome to First Solar's Third Quarter 2019 Earnings Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the call over to Adrianna Defranco from First Solar Investor Relations. Ms. Defranco, you may begin.

Thank you. Good afternoon, everyone, and thank you for joining us. Today, the company issued a press release announcing its third quarter 2019 financial results. A copy of the press release and associated presentation are available on the First Solar website at investor.firstsolar.com. With me today are Mark Widmar, Chief Executive Officer; and Alex Bradley, Chief Financial Officer. Mark will begin by providing a business and technology update. Alex will then discuss our financial results for the quarter and provide updated guidance for 2019. Following their remarks, we will open the call for questions. Please note, this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in today's press release and presentation for a more complete description. It is now my pleasure to introduce Mark Widmar, Chief Executive Officer. Mark?

Thanks, Adrianna. Good afternoon, and thank you for joining us today. I'll begin by noting our third quarter earnings of $0.29 per share. We had a variety of sources contributing to our Q3 EPS result. Firstly, the third quarter reflected our strongest quarter of the year with respect to third-party module sales driven primarily by a significant increase in the volume of watts sold compared to previous quarters. Secondly, on the system segment side, we successfully closed the sale of our 72-megawatt Seabrook project and are continuing the momentum with the recently signed transactions for the sale of our 150-megawatt Sun Stream, 100-megawatt Sunshine Valley and 20-megawatt Windhub projects. These deals remain subject to certain conditions precedent for closing, which we expect to be satisfied during the fourth quarter, resulting in a meaningful contribution to our full year revenue and earnings. Finally, reflective of our module's outstanding sales performance, lower-than-expected warranty return rates and other factors, the third quarter EPS result benefited from a reduction to our product warranty liability reserve. Alex will provide further detail on this later on the call. From a module production standpoint, we continue to make significant strides in the ramping of our Series 6 module capacity. As of the beginning of this week, we started the ramp of our second Perrysburg factory approximately three months ahead of schedule. This marks the fifth Series 6 factory, where we have commenced operation within a period of only 18 months. Across our manufacturing fleet, we had 4.2 gigawatts of Series 6 nameplate capacity at the end of the third quarter, increasing to 5.5 gigawatts this week with the addition of Perrysburg 2. From a booking perspective, we added an additional 1.1 gigawatts of net bookings since the last earnings call, bringing total revenue expected shipments to 12.4…

Thanks, Mark. Starting on Slide nine, I'll cover the income statement highlights of the third quarter. Net sales in Q3 were $547 million, a decrease of $38 million compared to the prior quarter. The decrease was primarily a result of reduced systems project sales in The United States and Australia, partially offset by the sale of the Seabrook project in the U.S. and Ohio module sale volumes. On a segment basis, as a percentage of total quarterly net sales, our systems revenue in Q3 was 32% compared to 61% in Q2. Gross margin was 25% in Q3 compared to 13% in Q2. The system segment gross margin was negative 5% and was negatively impacted by several factors, including low overall revenue recognized in the quarter relative to the systems segment fixed costs, a higher mix of lower margin EPC projects relative to self-development projects, and approximately $8 million of charges associated with the decision to transition to a third-party EPC execution model. Also our Seabrook asset which was acquired in late-stage development and was anticipated to have relatively low risk and low development margin compared to our earlier-stage development assets was impacted by the currently greater-than-expected variable integration cost under the PPA, which adversely affected the sale value of the project. The module segment gross margin was 40% in the third quarter, which is positively impacted by $80 million reduction in our product warranty liability reserves, partially offset by $6 million of Series 6 ramp-related costs. Reduction of product warranty liability reserves is driven by analysis of module return rates, improving module return rates for almost recent series of modules and updated information regarding our historical module warranty claims experience. The increase in module 7 gross margin was driven by increased shipments, lower ramp costs, lower cost per watt and…

[Operator Instructions] Our first question comes from Philip Shen with Roth Capital Partners. Your line is open.

Hey, guys, thanks for the questions. The first one is around your projects. Alex, I know you gave some detail just now in terms of what to look for in the fourth quarter, but can you specifically comment on your confidence level and potentially or possibly the risks around closing on time in Q4? And also is there a Japanese project that is required for 2019? Secondly, as it relates to your shipments, I think in Q3, the implied shipments were 1.6 gigawatts. How many megawatts of that number was recognized in revenue versus megawatts shipped, but not recognized in revenue? And then also what was the mix of megawatts shipped that was recognized that was Series 6 versus Series 4?

Yes, with regards to the projects in the U.S. we have 3 assets, Sunshine Valley, Sun Streams and Windhub projects, and we have signed deal to sell those assets. And that was signed after the end of the quarter, so you're not seeing that reflected in the financials of Q3. We'll expect that to close in Q4. So obviously, there is always some risk until we get to close, but we're through the commercial negotiation of getting through to final conditions precedent to closing. So high level of confidence in those assets, when it comes to the full year, the forecast has 3 projects from Japan in it, our Ishikawa asset, Miyagi asset and our Yes, it enemies your asset. As of now, the three are all structured to be sold under 1 fund structure together. The typhoon event in Japan has had an impact on one of our assets. As we mentioned in the prepared remarks, we're just trying to get access to the site and understand the damage there. Now from the very preliminary views we have, we think the damage to the site has not been extensive, however the damage perhaps to the surrounding area and potentially the gym was still waiting to get an assessment of that. And when we look through that, obviously there is insurance on the site as well. So it's early to say, but a very early indication would seem to be that from an economic perspective will be okay. From a timing perspective, it is still unknown. So those 3 assets are all in the guidance. They all due to be sold together. If we have a delay in one of them, that could potentially delay all of them. As I mentioned in my remarks, we do have the ability to sell those assets individually as well, there could be some delta in value doing so. We have obviously structured the fund because we think that's the optimal structure and optimal value for all 3 assets. So as of now, they're in the guidance. We'll get more information over the coming weeks. And the other key is the 2 things. One, we are not going to compromise the value. So if we get to a point where we could sell those asset out and selling this year, then we would be destroying value by doing so. We won't do that. We'll keep them all together. And the second is, if there is a delay in selling the asset, it's simply a timing shift. It just pushes out from Q4 into the next quarter. So it's not a change of value, it's simply timing of revenue and margin. So that's the project piece. Now the shipments?

Phil, I know one of your questions on the revenue mix. The revenue mix was on 60% was Series 6 and 40% was Series 4. And then the other question was around the shipments within the quarter, how many were recognized within the quarter? This will make sure I get your question correctly.

I think we calculated 1.6 gigawatts of shipments in Q3. Sometimes you guys ship, but don't necessarily recognize those megawatts in revenue. So did you recognize all 1.6?

No. No, so we -- the number was -- you're close to the number around shipments. We actually have a little over 800 megawatts of the third-party module sales that have not been recognized. The deferred revenue at this point in time effectively, which will be recognized in the fourth quarter. We also shipped another close to north of 100 megawatts into our own system assets. So you got a combination of about 800 megawatts that didn't get recognized for third-party module sales just based off of shipping terms and trigger for revenue recognition, then you got another 100 megawatts or so of Series 6 product that got deferred out into our systems project which will be now recognized -- a significant portion of that will be recognized associated with our Golden Eye Sun Stream -- Sunshine Valley and Windhub projects that we signed which will close in the fourth quarter.

And Phil, if you're trying to work it forward from last quarter, we said last quarter we had about 1.4 gigawatts of shipments and about 1/3 of that recognized revenue, 1/3 of that was shipped to our systems assets. Didn't recognize revenue, a 1/3 went onto the module business and didn't recognize revenue. So as you carry over the module shipments in Q2 that didn't rev rec in Q2, will rev rec in Q3, however, the shipments that went to our systems assets in Q2 may likely not have done still because a lot of that will have been associated with the assets that we haven't recognized revenue on yet and completed the sale.

Your next question comes from Julien Dumoulin-Smith with Bank of America. Your line is open.

Hey, guys, good afternoon.This is Julian. Just to follow up very quickly on the last question, if you don't mind. Can you clarify just which projects are included in this year's Is that the $0.50 and specifically here this has to be SCE project so this time and I closed on, just again decided to come back on just maybe as to clear about what this year versus next year? And I'll leave there. I got a follow-up.

Just on the SCE project, I'll let Alex handle the balance of it. Yes, the projects that we just referenced that had now been signed, submitted CPs to close, the 3 of them, those are all with SCE as the counter-party. So we're very happy to move those forward. As you know, we talked about those throughout the other earnings calls earlier in the year. So those are moving forward. That is, again, Sun Streams, Sunshine Valley and Windhub. Those are all being -- in the process of being -- final days and signed now in the process of closing which we won't expect to happen here in the fourth quarter. The other projects that are still moving around are Japan assets, which Alex can talk about.

Yes. To expand the previous answers, so Ishikawa asset, Miyagi asset and f7 enemies USA. asset. So all 3 of those are currently in the guidance forecast for the year.

Got it. And just the $0.50 would be for which one moving out, just to clarify this?

Let's say, the comment given was around, if we do not sell those Japan assets, we could see coming in $0.50 below the low end of the range of guidance.

Okay, just Japan. Right, excellent. And then if I can get into your -- you commented about this $0.005 improvement versus the initial 4Q guidance on S6. How does that put you with respect -- position you with respect to further cost reduction? Heading into 2020 and onwards, I mean, how do you think about that road map? Certainly good success across the board here. Can you comment more broadly if you can especially if you think about the optimization element?

Yes. So again, the $0.005 actually higher than our target, right? So if you look at across the fleet, exiting the year, we'll be about $0.005 higher across the fleet. And again, putting in perspective, that was a 30% reduction from where we started the year and we are talking about a few percentage points that will be above that number from our current view. We are sitting -- we are better than where we had anticipated through 3 quarters, but we got a couple of headwinds that I mentioned in the call, mainly impacting our Ohio factories. And I think factories because when we began the year, we did not anticipate the start of Perrysburg 2. So the target that we gave you would not have had Perrysburg 2 in that number. And so Perrysburg 2 start-up and, again, underutilization and just general ramp and initial production means being lower than average, while we are now starting using ARC this week, we started it by Monday. ARC will start to be commissioned this week. We actually are getting good bins without ARC and when we include ARC, we'll see better bin, but they will be slightly lower bins in the overall distribution across the fleet. So you got a little bit of start-up, underutilization, referred to that, so bin distribution is not nearly where the fleet average is. So face a little bit of headwinds. Combine that with the tariff-related costs that we have on our U.S. manufacturing is impacting the overall fleet by about $0.005. We are in the process -- we largely have resourced our cover glass to avoid tariffs. But even there, we're seeing slightly higher cost than we would have otherwise. We're still working through our aluminum frame around resourcing of that aluminum that would…

Our next question comes from Brian Lee with Goldman Sachs. Your line is open.

Hey, guys, thanks for taking the questions. First one just on the gross margin, Alex. Lots of moving parts here for the module segment. Excluding the warranty item, thanks for breaking that out, the gross margin, I guess, is implied to be 18% there, but then there's some other moving parts. You mentioned the pull forward on Perrysburg 2, I think $10 million, some ramp-up costs and then some other items. So if we adjust for all of that, I'm getting to something in the low 20s sort of as a clean gross margin for the module segment. Is that fair or we maybe missing something else there? Maybe if you could walk us through some of the moving parts? Then I had a follow-up.

Yes, so you're doing the right math. The product warranty release comes out of COGS out of the module segment. The roughly $40 million reduction to COGS coming out of one of the development items that comes out of the systems segment. But that's in the full year guidance. You're not seeing that in the quarter. In the quarter, you're going to see about $10 million of ramp, that's out of the module side and then about $10 million associated with the EPC. So if you work that math, you get $80 million minus $40 million minus $10 million minus $10 million getting to about $20 million down to the gross margin, that's what you see in the half point increase to the guidance.

Okay. Fair enough. And just on that point, there is nothing from the Q3 quarterly result that would repeat in Q4. And then just to make sure I get my following in, just on the capacity here, last December, on the update call, you talked about 5 to 5.5 gigawatts of production in 2020 as the target range, I think with Perrysburg two, four, three months, maybe some optionality to keep Series 4 online through Q1 for safe harbor. How should we be thinking about that range? It seems like it has some upside at this point and also with the debottlenecking?

And just a last thing for me on the quarter sales, the severance we talked about on the EPC charges associated with -- exiting the U.S. EPC business, as $10 million, $8 million hits the quarter, you will see $2 million flow through into Q4. But outside of that, the warranty reserve release was a onetime in Q3 and the development item will hit all in Q4 as we roll through the revenue recognition on this project itself.

Yes, and then it relates to capacity next year for -- Brian, I mean, we're not in a position yet to give guidance on that, but I will say that the early start of Perrysburg, in fact, if we allows us now, we -- we'll have more production out of Perrysburg 2 in 2020 than we would have otherwise. I mean I'm really happy with where we're starting off. I think the initial bin that we're seeing is coming across the production line is really good. And throughput, we expect to make meaningful progress of ramping up through -- between now and the end of the year. So our leaping off point, exiting this year and entering into next year, will allow us an opportunity to get incremental production in 2020 out of our Perrysburg 2 factory. The other items, in terms of incremental throughput, debottlenecking and other things that we can do across the fleet, that exists as well. So we highlighted that our nameplate capacity, we are right now at 5.4. That does not include the additional debottlenecking and other things that we can do across the other factories. So there's a little bit of upside there. So I would say, we were comfortable that our share will be at the high end of the range that we previously guided to for production for next year and we'll see where we can go above and beyond that. Including this one, I think we were highly motivated to start a production, not only because we were ready but obviously driving that through and ramping that factory gives us incremental capacity next year and a very strong demand opportunity set for us. And hopefully, with that incremental throughput, we'll drive better revenue for next year as well.

Our next question comes from Ben Kallo with Baird. Your line is open.

Hey, thanks, guys. Maybe going back to the Analyst Day and your margin targets. Can you just talk about where you are with hitting those targets? And then how, I guess, changing from the EPC business to module sales changes that overall model? And then maybe just a little more context what the $0.005 within your target means? You still get to that greater than 20% gross margin on Series 6?

Yes, I think, I guess, the way we look at it, Ben, is -- margin is obviously a combination of 2 things. Margin is a combination of what are we able to capture in the market from an ASP and then what's the actual cost of producing the product. If you look at our bookings, 1.1 gigawatts that we highlighted, again with volumes going up, not only in '21, but in the portion that's beyond '21. The ASPs, when you look across that are all very good. They are very much in line with -- if you look at our -- on a blended basis, if you look at the queue that will come out tomorrow, I think the numbers will apply something around $0.34, somewhere in that range. And these additional bookings post the end of quarter will be consistent with that type of numbers. So when you look at that result of good ASP, when I also look at the bins we are producing, and not only that, over time, the energy advantage because some of that we wanted to highlight in the scientific improvement that we made or discovery that we made around replacing copper, that will significantly improve long-term degradation of the product. And we've always said 2 things: it's not only efficiency but energy. Whatever we do, we need to drive better energy, and that's a meaningful driver to improve energy and that drives value, accretes value back into the module and the market price that we can get. So when I look at that, I feel confident there. The cost right now across the fleet -- the fact that our low-cost regions are where they need to be, that's extremely encouraging. We just got some challenges we are dealing with in Ohio specifically. We'll address some of that with -- throughput is a great way to help dilute your fixed cost and drive your cost per watt down and highlighting that benefit in our factory, our second factory in Ohio, will help. We got some work that we need to do on the labor, and we got to find a way to get some labor cost out of Ohio. It's running higher than we had indicated. We indicated that earlier in the year we got to work through that. We're just not quite there yet. So when I look at the long-term destination of where we will be relative with -- when I look at where ASPs are and what the cost per watt profile is, we are very comfortable with the original gross margin target that we set for Series 6. Nothing has changed from that standpoint. That $0.005 is not going to move bad, and I would argue that again that $0.005 is being more than compensated by the strong ASPs that we are seeing.

Ben, just to add on the EPC piece. I think we guided -- that I don't say about 1.5 years ago, nearly two years ago now to a 5%, 10% gross margin business in EPC. So that is going to come out as we don't perform in EPC. We're also at the same time as we commented taking cost structure out and we pointed to $10 million to $15 million of annual recurring savings as we exit the EPC business. So going forward, you may see a change in top line revenue as we exit the internal performance of that function. On an overall consolidated basis given the EPC was a low-percentage margin business, you should see a beneficial impact across the consolidated gross margin.

Our next question comes from the line of Jeff Osborne with Cowen and Company. Your line is open.

Good afternoon, guys. I was just wondering in terms of the -- post the bifacial decision, can you talk about what you're seeing in terms of the broader market discussions you're having into the closing months here of safe harboring? Is there any heightened activity? Or is it too late to safe harbor at this point?

We're seeing some additional activity related to that. Part of the promise, we don't have a lot of supply, so that's been one of the challenges. And people are looking at Series 4. We still got a few opportunities potentially that we could -- been able to safe harbor around Series 4. So that could happen. But I wouldn't say that -- we were very -- even though, obviously, the exception was there for a period of time and the other thing I would like to continue on the other side is we said on the call we were very happy with USTR's decision around eliminating the exemption that was provided. We were very happy still with the ability to go through and sell-through that. I think when the announcement first came out in June of last year, shortly thereafter, we highlighted that we booked one of our largest orders ever with a single customer, which is about 1.7 gigawatts, and that was a backdrop of that exemption being provided. So we've been able to -- and we feel very confident with our capability of our technology to compete against bifacial modules. Now there could be certain applications in certain geographies that it could be less damaged in or may be disadvantaged; that can happen. But we've never been -- we understand the bifacial technology, the capability relative to our technology. We are confident with our relative competitive position. I also continue to look forward to what we're doing, not only in efficiency but all the way so we can drive energy performance out of our technology that will further enhance that competitive position against bifacial. So we -- our teams are working very hard and we are very aware of the competing technologies that are out there, and we're doing everything we can to make sure that we again have differentiated technology and advantaged technology. So -- but there will be a little bit of opportunity here, maybe like toward the year-end, but it hasn't been real mover for us because we don't have the supply available.

Your next question comes from Paul Coster with JPMorgan. Your line is open.

Yeah, hi, This is Mark Strouse on for Paul. Most of them have actually been answered. But, Mark, I wanted to ask you a high-level question. So you mentioned the 19% efficiency in the 440-watt panels. As you continue to improve your products, should investors think of that as kind of relatively modest tweaks to Series 6 technology? Or, I guess, how much run rate do you have until a Series 7 platform would be potentially required? A - Mark Widmar So the way I would somewhat describe it is that is at core, we are a technology and manufacturing company, and we have to stay ahead of the game on the technology. So there's still plenty of runway to go on Series 6. Again, driving efficiency, improving the energy profile of the product, not only in long-term degradation, look at ways that we can improve temperature coefficient, look at ways to the extent we can to improve spectral response, right? Anything we can do to generate more energy. And in real-world conditions, this is a point I always like to make is that the efficiency that's flashed or labeled on a module is a 25 degrees C. The real-world operating parameters of the module have many other issues to deal with on with temperature, but moisture in the air and other things that can adversely impact the performance of the module. And then you have the long-term degradation impact and more that you can do to improve that over time, all enhances value of the technology. So we have many levers still to go around Series 6, but I'm not pulling to rest without thinking through. The team is doing a great job to think about use the word Series 7, whatever you want to call the next evolution of the technology where that's on top of mind for us. And we have -- one of the nice things that we have always had is we've had our advanced research team in California, that's always been out in front of the game and looking at other potential technologies and capabilities, and we've made investments over the years and early investments in 6 and made investments with monocrystalline and anti to understand that technology. We've made investments to study prospects. So we're in front of the game, and we're always looking at what can we do to take our technology to the next level. We are looking at the next-generation technology; we have to. But in the interim, we're very confident and comfortable with the product that we have and its capabilities to complete and to further enhance. Is there something more disruptive that could be out in the horizon? There may be. We'll keep working on that, and hopefully, crystallize those thoughts and communicate when we're ready.

Our next question comes from Michael Weinstein with Credit Suisse. Your line is open.

Most of my questions have been answered too. Maybe you can just talk a little bit more about the -- where you stand regarding the -- relative to the 40% target below 2016 levels for Series 6 cost reduction, maybe more specifically around that 40% number where you stand now?

What I would say, I mean, that 40% number, if I look at it at our -- let's say, our lowest-cost factory today, not only because of just the region but also because we're running 2 production lines in Vietnam. Vietnam right now because of that, and one of the things that will happen when we put our second factory in Malaysia, it will be able to leverage the tool set across both factories, which we know helps drive throughput and manage through downtime and other things that create headwinds around your cost profile. Vietnam is our advantage factory today. And when I look at where that cost is, as we exit this year relative to that 40% target, we'll be in a very good position to have achieved that number. When I look at the fleet, we're slightly behind, mainly for the reasons that I mentioned. And that's what we have to work on in terms of getting at the end of this year. It doesn't mean that the destination is going to change. There's many levers we can get to get to the destination, but at this leaping off point, we're about across the fleet about $0.005 higher than where we need to be, and we've got to figure that one out.

I mean, is this one of the -- is this the main reason why you're pushing out guidance into early next year for 2020?

No. Mike, if you look at guidance, I mean, I commented in the script, right, on the module side, we've a lot of moving pieces in terms of when we shut down Series 4 and transition that over to Series 6. If you go back to early 2018, at that point, we'd have said we are planning on shutting down that Series 4 at the end of 2018. There was a surge of demand around the safe harbor especially. We had a large customer order come in that pushed us with that volume all the way out through the back end of 2019. We are actually in a position right now, where one of our customers around Series 4 is potentially in some financial distress. Now we have security against those bookings, but we're looking to optimize our risk profile that may make sense for us, one of our risk and value timing, potentially reduce some of that Series 4 earlier than planned, helps us convert earlier to Series 6 and get to a more advantaged product and technology. So there's some uncertainty for us around the module business around when we make that call. There is significant uncertainty around timing in the systems business, as I mentioned earlier, this is timing of value. But right now we've got U.S. assets that -- even since the end of the quarter, we signed a deal, although we still haven't closed that. That's a positive step, and we'd expect to close that, but those need to close. And as commented earlier, we've got significant uncertainty around what's happened in Japan. And only 2 weeks ago, we saw a typhoon go through, which is completely unforecasted and unplanned. So we've got all those moving pieces, and I think as Mark mentioned in his prepared remarks as well, we're also doing a deep dive into the cost structure across the entire business. And so we've made the decision around transitioning our EPC approach to third parties. And as part of that, we're looking at the isolated cost to remain in the development business as well as looking at all the business units, including the module to make sure cost is competitive across every business unit. So with all those moving pieces, it's not the case of having 1 binary outcome. We could guide to an A or B scenario. In this case, we've got a lot of different moving pieces. It makes it very hard to give an accurate guidance. So we would rather get through all of those and come out in February with more accurate numbers.

Yes, and along those lines, just in terms of -- and just to put it back in perspective, there's been a while -- if you looked at last 3 factories which we've commissioned, the 2 in Vietnam and then our Ohio factory, while we had a facility in Vietnam, we didn't have any associates. I think we built a brand-new facility -- a second facility in Vietnam and we built a brand-new facility in Ohio. If you go back and remember what happened when we did a wind down for Perrysburg in our first factory in Malaysia, there were reductions and there were decommissioning costs -- and reduction because you have to remember that the effectively on equivalent basis, there's about 50% less labor in the Series 6 versus Series 4, which is one reason why Series 6 is an advantaged product. Whenever the timing is of that decision to start the conversion of our second factory in Malaysia, there will be costs associated with that. Onetime upfront costs, which includes decommissioning and some impact to head count. Now if that happens this year, if the wind down plus -- as you know, there is -- with respect to kind of notice periods, we have charges. If it doesn't happen until next year, we don't have charges, right? If we run the factories through to Q1, we have more volume, right? So we're just not in a position right now, even at the Series 4 level, to have certainty because we are working through some of the issues that Alex referenced to say for certain we're going to give you guidance that we know as of now that reflects our best understanding for 2020. I don't want to do that in December and then come out in February and have to change it because of all these moving pieces. We feel the best thing to do is to wait until February where there's clarity. And we can give the best information versus having to guide to something and then revise it within a matter of couple of months.

Our final question will come from the line of Joseph Osha with JMP Securities. Your line is open.

Hey, I made it. Thank you. Just following on from that question a little bit, if I look at your slide from the end of 2018. The idea and you alluded earlier Mark to 6.5 gigawatts of capacity in, going into '21, that number would seem to be a little conservative you're suggesting that you've got 5 1.2 gigawatt plant plus Ohio that's 6.6 right there and that's before any of these efficiencies that you talked about. So, all other things being equal. I'm just wondering whether we shouldn't be thinking about sort of north of 7 gigawatts of output in 2021?

The way, the way we always try to phrase it is that we are very much demand during the demand driven drives supply and in our supply capacity plan roadmap and as we get more and more comfortable and confident with the volume in 2021, but again we're about two-thirds right now. Plus, you got an corporate call it a gigawatt or so of our systems business relative to that original supply a 6.5. We're starting to get to a point to have more confidence in 2021. And I also like that we're starting to fill up some '22 and beyond. So the more, the better we do with bookings and the more we look out into '21 and beyond. It gives a higher level of confidence optimize and make sure we drive the highest pipeline, but it's always going to be aligned to the demand that we see highly predictable demand to ensure we can scale and ramp that capacity efficiently because of the customer off-take requirement for that product. But yeah, we're not in a position on this call to give revised numbers we've been measuring ourselves against is what we communicated that was a 6.5 gigawatt supply plan for up 2021 and as we learn more, we'll give you the best information we can at that point in time.

This concludes today's conference call. You may now disconnect.