Chip Moore: That’s great color, great to hear, Daniel. And maybe another question with that strong backlog, the inventory position just continues to build, any way to think about working capital over the next call 12 months or so?
John Kosiba: Yes, so the inventory has built over the last year, some of its due just to the backlog growth. And some of it has been kind of some shipments. We do have a fair amount of shipments going out in D-VAR, this quarter, where we had some inventory build up to that. So the expectation is we should leave that project out of whip. And we should start to see that. On the working capital strain – this quarter and assumes we have some working capital. So the guidance I gave you four to six, you know if you look, we got it to non-GAAP up six, you know, there’s about a million and a half or so of depreciation. So, in theory would be closer to four and a half, I gave a pretty wide range because of working capital that could impact that up to $6 million or so.
But moving forward after that I see working capital, probably in Q1, if it’s negative in Q4, it’s probably going to be positive in Q1, and it will net out to zero. So I expect working capital to be closer to flat and have no impact just because the way our milestone structure is Q4 and Q1, we may have a little bit of swing from one quarter to the other. But that’s already incorporated into guidance.
Chip Moore: Yes, that’s perfect. And there might be that larger D-VAR project that pushed out last quarter, you still expect that to hit in the current quarter?
John Kosiba: That project is included in our guidance, yes.
Chip Moore: Perfect all right. Thanks very much.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Daniel McGann for any closing remarks.
Daniel McGahn: Thanks, Gary, I just want to wrap up by saying that we’re a much broader and more vibrant company today than we were just a few years ago. We’ve been able to add new pieces of new markets. We’ve been able to manage pricing. We’ve positioned ourselves to grow. And we’re hoping to see that start to pay off as early as next fiscal year. We think there’s a series of tailwinds driven by climate change that are here in to stay and are pushing the business forward. As I mentioned earlier, our pipeline is growing and becoming more diverse. Our order book has gone from delivering at a rate of $20 million in new energy power systems orders per quarter, to now delivering at a rate of over $30 million for the past three quarters.
This is just for the new energy power systems. So our ability to convert that potential pipeline into actual orders is really starting to happen. I think it felt great prospects for us as we look at 2023 and we’re even looking at quoting products for delivery already in 2024. So we think the next years look very bright for the company. Thanks, everybody.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
