Mark McKechnie: Okay. Yes, we did not — can you hear us on our end? We didn’t hear that question.
Robert McKay: Yes, I can hear you.
Mark McKechnie: Okay. So David repeated the question. So it’s about the inventory. Is that correct?
Robert McKay: Yes, exactly. Just wondering why it’s a little bit high. Yes.
Mark McKechnie: Okay. So again, I didn’t hear the question well, but I think I can address it if it has to do with the inventory. So, our inventory at the end of the June quarter, there were three factors to it. So it was $471 million. It was split between raw materials, about $192 million, work in process was $109.8 million, and then finished goods inventory was $168.9 million. So, we did — the finished goods inventory, a lot of that is tools that are under evaluation being evaluated by our customers. And so that is an important metric for us. In terms of our overall inventory levels, we are working on bringing them down a bit. We built some inventory, one based on our forecasts, but also given the supply chain tightness. But as David noted, some of the supply chain is loosening up, so we’re looking to bring those inventories down to more normalized levels.
Robert McKay: Got it. Super clear. I don’t know if you can hear me now.
David Wang: Your sound is still light. Can you speak close to speaker?
Robert McKay: I’m on my headset. Yes, I’ll speak as loud as I can. I was wondering if there’s kind of any information you can share on the orders from Hua Hong on its new expansion this year? Are we already factoring that into our revenue guidance?
David Wang: Yes. Actually, Hua Hong has been, as I said, [indiscernible] So they have also multi-fab building in different locations, right? So it’s really our strategic customer, [indiscernible] quite a bit of contribution for our revenue in the future, right? And this year, something happened, so a lot of starting in next year, next two years. It’s a great customer. And also, we have a strategic relationship, our cleaning tool, fab cleaning tool, our furnace, right, and — is wider, acceptor evaluates and then codify it in the Hua Hong Group. So it’s great. We’re looking for customer continue to grow and also we’ll continue give a better service supporting with our portfolio product to the Hua Hong Group.
Robert McKay: Got it. Very clear. Once again, sorry for my microphone quality. I just wanted to follow up a question on the revenue guidance. I think our revenue guidance is still quite wide. And I just wondering if there’s anything you can share about why it remains so wide?
David Wang: Yes. Well, I mean, probably, you’re right, a little wider. I mean there’s still uncertain, right? So, we’ll probably in the Q3 timeline, give you more [narrow] (ph) of the — guidance. And at this moment, I think we’ll be keeping, not changing.
Robert McKay: Got it. So, is there just some uncertainty about some orders from some of your customers? Is that the reason for the wide range?
David Wang: Can you repeat the question? You sound too small. Can you repeat again?
Robert McKay: Yes. I just wanted to know if the wide range is maybe due to some uncertainty about some customer orders or — what kind of information do we need to be more certain about our guidance for the year?
David Wang: Yes. I think probably you are right, some still orders, some still components of each, right, both together, that probably give us kind of wider projection right now.
Robert McKay: Got it. Great. And then the last question I’ll ask, and maybe I’ll go back in the queue after, is about the dividend. I think Shanghai subsidiary issued quite a large dividend. And I was wondering what we — what our plans are for that dividend. If we’re just going to invest it? And what we’ll finally do with that? Yes, thanks.
David Wang: Great. Actually, as we announced, we have a dividend, right, and go to all the shareholder of ACM Shanghai company, which is 82.5% comes to the ACM USA. We are going to use this money investing in marketing, also continue to invest in our other R&D activity, a demo center in the U.S., and also we’re applying in other regions, right? So we’re going to put the money into the — well enhance our sales and marketing and build capability, helping product go to the first-tier customer in the world.
Robert McKay: Got it. Thank you very much. Sorry for my audio quality. I’ll go back into the queue. Thank you, and congrats on the good results.
David Wang: Thank you.
Operator: [Operator Instructions] Our next question comes from Mark Miller with The Benchmark Company.
Mark Miller: Thank you for the second question. How should I think about modeling R&D for the remainder of this year?
Mark McKechnie: Mark, I’m sorry, can you repeat the question?
Mark Miller: How should I think about modeling R&D expense for the rest of the year?
Mark McKechnie: R&D expense, yes, let me give some thoughts on that. R&D overall was about 12.7% non-GAAP in 2021, 15.3% in 2022. So, we’re looking at for the year, about 14% to 15% would be the right range for R&D.
Mark Miller: Thank you.
Mark McKechnie: Yes, thanks, Mark.
