Louisa Sanfratello: Sure. So the revenue comes from two different places in TGSS. The first part of it is services. Basically what I mentioned before, you need to take all these existing 3G, 4G, LTE, so-called 5G stuff that’s right there, right, with all carriers right now. We need to upgrade all of that and put in the inter-operability with the new 5G systems. That inter-operability is the O-RAN compliance, which is, has been standardized so that everyone can use the existing infrastructure and then tack on the 5G. Otherwise it’s not possible. So services TGSS is providing these services that will make O-RAN compliance for all these carriers. And that means any country, anywhere that’s using 3G, 4G, 5G, they will now be able to come up to that standard and be able to receive the new 5G hardware, so second part of our plan in TGSS is to provide the hardware.
So the hardware itself is the radio that uses our amplifiers, which are very low cost, I mean not low cost, but low noise. And as well, they have MMIC form. A MMIC form factor means chips, so they can fit into these radios and hundreds of them can fit in there because they’re in ship form. Now, because of that, we would be able to increase the range of these radios and provide a much lower noise figure and higher data, which other radios cannot. So it’s a new kind of radio and hardware that is designed to fit into these existing systems so that they can be an easy retrofit. So the first part of it is the services to upgrade everything to be able to handle the new hardware for 5G. And the second part of it next year is to provide these, this hardware that will be retrofitted into millions of sites.
But also with the hardware and millions of sites, you’re going to have services for all these millions of sites as well. So that’s where the revenue will be coming in from both sides.
Unidentified Analyst: Got it. Makes sense and do you, when do you anticipate being able to start accepting orders? On the hardware side?
Louisa Sanfratello: Hardware side would be sometime mid next year is what our estimate is.
Operator: .We do have one question that we submit electronically that reads what steps has AmpliTech made to increase gross profit margins? Is this due to operational or manufacturing changes? Is this sustainable for long-term?
Louisa Sanfratello: Sorry, as I mentioned before, yes, it is both operational and manufacturing. And I’ll mention this again. We did the consolidation of the two companies so that we have a lower cost structure. We’re also focusing all our product focus to the large higher margin products like the quantum computing amplifiers and modules also to the 5G infrastructure, which is the hardware, which is not a $2,000 amplifier like we normally sell. It’s, several tens of thousands, right? So we’ll multiply that by millions of sites. So that is very important in, in showing why the revenue will increase. And in manufacturing, we’ve lowered our overhead, as I mentioned internally in all across our, our different divisions as well as the, the ERP system that we have in place.
So we can effectively manage our pro production much more effectively and streamline the operations and then match our sales to our production. So we’re providing more COTS products as well because of our MMIC products. So the COTS generates a faster turning turnover of sales as opposed to the custom design product that takes 30, 60, 90 days to build. So all of that adds up for a more streamlined operation with more throughput.
Operator: Thank you. And that concludes the question and answer session. I’d like to turn the call back over to Fawad Maqbool for any closing remarks.
