Ken Spink: Thanks, Jed.
Jed Dorsheimer: So I guess first question, Gayn or maybe Ken, maybe you want to take either one. But the guide and kind of reiterating the numbers suggest a pretty wide variance at this stage in the game, $17 million to $27 million.
Gayn Erickson: Yeah.
Jed Dorsheimer: And I know that there were two tools with the — that we weren’t — that you weren’t sure were not you get the rev rec to fall into the quarter. But I am wondering, is that the only thing that sort of kind of the difference of that $10 million or is there something else that you can probably provide a bit more color on?
Gayn Erickson: That’s a big chunk and for folks that are — Aehr Test along with most, I think, all capital equipment companies have revenue recognition policies related to when you can score revenue and that is different than when you get paid by the way. Our policy, I think, is very conservative. If we have a new product, particularly to a new customer, but if we have a brand new product that has never been proven or installed and accepted by the customer, we simply don’t take revenue for it until that milestone, even though we know it’s working here, it’s been completely proven out, et cetera, but until the customer actually signs off on it, we won’t score revenue recognition. And we gave that as a pretty big heads-up going in.
That’s why a lot more detail than normal, and candidly, we will probably be pulling back on detail related to things. It’s just to make sure that our shareholders understand that we have got some pretty large revenue number of things that are shipping during the quarter, but may or may not score revenue. And you have several multimillion dollar tool that misses by a few days and it’s pretty easy. What I want to make sure that and I will be explicit even though it’s just been implied, we are just talking about whether it comes in, in Q4 or Q1. So that’s the bulk of it. We also have a lot of new WaferPak designs. These are new customer wafers. Folks, I think, we have almost 20 — right now 20 designs of WaferPaks that are in process. Those designs are all like the timing of when those first ones ship, et cetera, not so much revenue recognition just with the timing, but those all are expected to then go into volume production as well into next year.
So there’s some of that, too, that adds up. I mean, we are not trying to be coy. We — I will tell you, we have treaded over how do we re-describe where we are at, but that’s a realistic range of where we think we are still at. And again, we have not lost any deals, not — we don’t — we have not identified any new competitors that are threatening or more threatening to us. We — our momentum has picked up in terms of customer enthusiasm, but they are still, as a public company, you still have this quarterly milestone thing and like how do you describe it? So comfortable with the numbers. There’s some variation in there. Probably going to come down in the last week or two to know exactly where it ends up and if not, it will probably already scored by the time we have our earnings call what in July.
So we will see how it goes. Sorry about that, Jed.
Jed Dorsheimer: No. The color is helpful. So thank you. I guess if you could just help me reconcile just two moving parts. Inventory, not surprisingly picked up as you talked about in terms of ramping some of these products, but customer deposits dropped off on the balance sheet. I was wondering if you could just provide a bit more color there. Is that a timing issue or how should we read those two vectors, if you will?
