If the — if that customer or our customers’ customer grows from $100 to $200, they would buy more systems and more WaferPaks. But if their customer mix or the product mix changes, they might displace all of those WaferPaks. So we would get revenue even though their revenue isn’t growing. And that’s a very important part of obviously our business for our shareholders but also to our customers that we can continue to generate revenue and have the dollars to spend on R&D and applications and support and new enhancements for their needs even if they’re not necessarily buying new systems. But we do think that they will still be a significant customer for us next year. We believe that they — and are consistent with what they have been telling people their growth plans are.
But we think that there’ll be other customers, most likely there’ll be bigger than them next year.
Christian Schwab: Great. And then my last question, I apologize for so many. Is the Chinese market still is a — a faster adoption — adopter of silicon carbide, has numerous manufacturers — many manufacturers of silicon carbide. Is that a market that you plan on eventually targeting or are you currently targeting?
Gayn Erickson: Let me — that’s a good one, you’re taking all the good questions here. But let me talk about the Chinese market because I think there is a change there from last quarter on — and I’ll be giving you more updates probably at the next one. So the Chinese market, certainly the EV market itself is growing very fast. A lot of the things you hear in the US with respect to why people should or shouldn’t adopt EVs is just not the case outside of the US in particularly in Asia, and China. Chinese EVs are — have exploding growth with big suppliers like BYD and NEO and others. We’re actually shipping where we know we’re testing products that are going into the Chinese market today. So they aren’t being tested in China, right, but they’re actually being tested on our systems and shipped to it.
A lot of the silicon carbide if not the majority is still being supplied outside of China into China. But we see that changing over time as there’s a lot of players getting into the Chinese market for silicon carbide. A lot of them in the wafer in itself, but also in devices. In the last quarter, we’ve had some pretty active conversations with some of the big Chinese suppliers, who candidly are asking us to participate and to engage with them more directly. And we’ve been having some conversations related to how can we protect our IP there, what would that look like, et cetera. And we are working on some strategies that I’m not trying to keep them from our shareholders, I’m just trying to keep them from our competitors, so we’re keeping those close to our chest.
But expect some movement there over the next quarter. And I will give you — some movement in what we’re doing. Next quarter, I’ll try and give you guys some more update. But there are some key activities going on in China that I think Aehr is going to be participating in.
Christian Schwab: That’s great, thanks Gayn. No other questions.
Gayn Erickson: Thanks, Christian.
Operator: Thank you. The next question is coming from Jed Dorsheimer from William Blair. Jed, your line is live.
Jed Dorsheimer: Hey, thanks for taking my questions. Sorry for the background noise, I’m in Las Vegas, meeting with your customer actually. So just Gayn trying to reconcile, it sounds like there was a material change in the last 30 days in terms of demand and visibility to your business. Is that correct? And I just asked that because your largest customer did flag something last quarter, but I want to separate what happened in the past versus what’s occurred in the last 30 days. Thanks.
Gayn Erickson: All right. Well, one thing I’m going to start giving people heads up on is, I’m trying to be more thoughtful about giving insight into our customers, to be fair. But I’m going to specifically answer what I think you’re implying. Right after our largest customer talked about their change in their forecast, we not only did not hear a negative impact to us, candidly, it flipped around and for a period of time, it was actually an uptick, right, which was a little hard to imagine and explain, but had to do with the wafer pack and the shift to new customers and some other things. Literally in the last seven days, they have reconciled their plans, et cetera. And we’ve tried to thoughtfully reflect that in the latest one.
But again, I actually said in my prepared remarks, their revenue to us is pretty close to what we were expecting when this all came out. So if you want to say the bulk of the $15 million to $25 million decrease was not from them, that was actually from other customer forecasts that have changed over the last, like three to four weeks candidly.
Jed Dorsheimer: Got it.
Gayn Erickson: Our lead customers forecast settled in only in the last week or so. Now, having said that, folks, it may not be the right answer. There’s still a range. We took a very conservative stance in hopes there’s no way we’ll miss it on the low end, but I can see scenarios where we could be higher than the range I gave you. But going out and saying we have a range of $75 million to $100 million just seemed weird silly. And so, we’re taking this stance, I think we really think that this is appropriately communicating what the customers are telling us, and we could defend that and we’re doing our best to just be open with people. Okay? Q – Jed Dorsheimer That’s helpful, I guess, Gayn to that point, though, if I look at what you’ve done this year versus the guide of $75 million to $85 million and subtract out the delta there, that would imply, if it was equal between each of the next two quarters, somewhere between $16 million and $19 million each quarter.
