David Wang: Yes. Actually, last year, right, we do have a real experience of long leading time, right, some product, 10 months, sometimes even more than 10 months. This year, actually, that time has been shrinking, right? Actually, every — between five to seven months, depends on product. It also depends on your specific components we have get in the hand. So, it has been improved, and we’re expecting continue to improve.
Chaolien Tseng: Thank you, David. And next question is that when I look at the revenue by region, it’s very great to see that the revenue from China actually grew quite recently in second quarter, although that’s still just 7% revenue. So, I’m just wondering, is this increase mainly from the front-end or back-end business.
David Wang: You mean outside China?
Chaolien Tseng: Yes. In the second quarter, you talked about 7% revenue.
David Wang: Yes, our majority still come from China right now, right? But we see that — as I said, there are outside China sales activity could grow, and more attention from the customer, as I mentioned, in Korea. And Korea, so far, we have a Hynix as a major customer. Also, we see the traction for other packaging and customer in Korea, interest in our plating tool. And the same thing, we also have a customer from U.S. continue interest in other application tool and also we have also European customer, right? So, we’ll say, in the next few years, we’re expecting a lot will happen for our international efforts. And for cleaning, plating and also expecting furnace, where they also play another revenue driving our international efforts.
Chaolien Tseng: Okay. Understand. Thank you. And David if possible may I just ask about furnace because I was — I have been expecting some decent revenue growth from the furnace. So, I see in the second quarter, it seems that still not yet a lot of new revenues from furnace. So, I’m just thinking, can you share a bit more about the furnace? I mean — I know you talked about this earlier already, but I’m just thinking from the revenue perspective, will be the major revenues, new revenues from furnace coming from 4Q this year or maybe from 2024?
David Wang: I will say, we’ll have more customer base increase, right, as mentioned earlier. And by end of last year, we have three customers for furnace. And this year, probably we’re hoping by end of this year, we can increase the total customer number to double digits, right? So again, revenue-wise, it’s hard to tell, right, new customer will take time. So, I will say more of the revenue we expect is kind of next year for contribution.
Chaolien Tseng: Okay, understood. Thank you, David.
Mark McKechnie: All right. Next question, please, operator.
Operator: [Operator Instructions] The next question comes from Mark Miller with The Benchmark Company. Your line is open.
Mark Miller: Congratulations on a very strong quarter.
David Wang: Thanks, Mark.
Mark Miller: The question is about the eval tools in Europe and also U.S. When would you expect them to be revenues? Would that be next year probably?
David Wang: Good question. Actually, we have this tool to evaluation, and we are expecting — the tool get a qualification end of this year, right? So, either end of this year or beginning next year, that’s our expecting, become record revenue.
Mark Miller: Are there any other tools outside of Europe and U.S. and especially in China that are eval tools?
David Wang: Outside China or inside China?
Mark Miller: Inside China.
David Wang: We also have eval tool, right, inside China. And I mentioned about the foreign company, they have their manufacture in China, and we have a copper plating, we also have our cleaning tool, also have advanced packaging tool, right, in those — foreign company, which has a factory in China. We’ll continue expanding that base too. Obviously, we also have evaluation tool into the Chinese customer, too, right, which is quite a bit in the furnace and some plating tool and also our variety of cleaning tool, right? For instance, we have a Bevel etcher and also supercritical CO2, and those two also in the customer for evaluation.
Mark Miller: Just a couple of housekeeping questions. What was stock-based comp and cash from operations?
Mark McKechnie: Yeah. Hey, Mark. Stock-based comp was about — it’s in the press release, but about $2 million for Q2. And then cash flow from operations in Q2 was positive, about $6 million.
Mark Miller: Thank you.
David Wang: Thank you, Mark.
Operator: [Operator Instructions] The next question comes from Robert McKay with Blue Lotus. Your line is open.
Robert McKay: Hey, David and Mark. Thank you for taking my question. I wanted to ask about inventory levels. They’ve been a little bit high for a couple of quarters. And I was just kind of wondering what the reason for that is? And if we can expect to see that come down in later quarters? Yeah, thanks.
David Wang: Hey, Mark, do you want to take that question?
Mark McKechnie: Yes, I didn’t hear the question.
David Wang: Can you speak louder? I think his questions are regarding our inventory and — little higher, he said, in the next few quarters is there going to be reduction or not, that was his question.
