Bob Daigle: Yes. So — the demand requirements that we received from some key customers is fairly significant that there’s some pretty large opportunities going forward as you point out timing may depend a bit on how much utilization there is in the industry. It’s up with a little bit of the frankly the drop off and more so expectations of EV may slow things down a little bit in the industry but ultimately, at least the view I have is that the industry is going to migrate and continue to migrate pretty aggressively towards silicon carbide because of the efficiency of the inverters. So I think some of what’s been going on in terms of a little bit of the slowdown and EV market may affect timing but I don’t think it changes the trajectory we’re on.
I think the wildcard is also — we do participate. We participate in the EV, but we also participate pretty significantly in the power electronics for hybrid electric vehicles. And in particular, I’d say the direct fund copper furnaces that are used for silicon-based IGBTs are fairly sizable part of our business at BTU. With this pivot maybe and a greater emphasis on HEV in the near-term that could present additional opportunities for us in the silicon base power module packaging.
Craig Irwin: Understood. So you’ve been doing a really good job managing cash right, getting to a net cash position this quarter. Usually when there’s an air pocket like we’ve seen sort of in the macro in silicon carbide. It’s a good time to continue conversations around them acquisitions. How active are you on the M&A side? I know there are some very interesting properties out there both on the materials and consumable side, that actually directly play into silicon carbide, traditional power semiconductor markets. How likely are we to see you step-up and maybe grab something or consolidate something? Is this a priority today?
Bob Daigle: I’d say our near-term priority was obviously around the goal of being cash flow positive with the current market realities and a sluggish industry. But ultimately, we’re a growth company. Ultimately, we are seeing a tremendous opportunity in the power electronics area and in particular silicon carbide. So it’s an area we are spending time. I can’t really say too much Craig about what the timing might be but in terms of it being a strategic priority for us in terms of trying to bring more breadth, more exposure, more growth drivers in this area, it’s definitely a priority for the Company.
Craig Irwin: Okay. Excellent. And then the last question if I may. You did exceed your revenue guidance in the quarter. It seems that your visibility is pretty good at least in the short-term. Can you maybe comment about anything that’s changing materially for the back end of the year? Is there maybe a sentiment that investors might appreciate a little color around that you could — but can you give us to help us understand sort of where this visibility reaches out to? Do you have visibility through December, and how would we see that play out?
Bob Daigle: Yeah. So I think, again, we have to talk about the various segments. So if you look at in the furnace area, whether it’s horizontal diffusion furnace or the ovens we’re providing for things like direct bond copper applications, we’re — again, that’s a high percentage of our backlog is in that area, and takes us out through the December quarter. If you look at the consumables part of business, that tends to book and shift even within the same quarter at relatively short lead times, and we’ll tend to get that out pretty quickly. So there’s not — the visibility tends to be more medium, long-term forecasts we get from our customer base, and, again, that’s going to depend on ultimately market demand to drive that. And that’s also true, frankly, of the parts and service.
We’ve seen quite a bit of a pickup in recent weeks and months in terms of activity there, signs of life in the industry, but it’s not like we have great visibility beyond a month or two in that area, because those tend to be pretty short lead time items. And as Lisa mentioned earlier, even on the back end, packaging equipment, reflow, surface mount, as well as chip packaging, you know, we’re — our lead times are four to six weeks, so there’s not — there’s not really an incentive, frankly, for customers to book things out six, nine months ahead of time. They don’t need to. They can get equipment pretty quickly from us. So it’s really a mixed bag. I’d say where we have the most visibility is really in the furnace area because of the long lead times historically.
Lisa Gibbs: Yeah. And, Craig, I would just add on the gross margin side, we expect a fairly similar product mix going into Q3. So I think we’ll see some of these headwinds that we saw with material costs kind of repeat again in Q3. We do expect incremental improvement in Q4 and in the fiscal Q1 as we’re shipping out some of this older backlog and then beginning to ship out the newer quoted backlog that has the higher margin quotes that we’ve been using.
Craig Irwin: Thank you for that, Lisa. I’ll take the rest of my questions offline. Congratulations on the revenue results. It’s good to see you guys executing.
Lisa Gibbs: Great. Thank you, Craig.
Bob Daigle: Thank you, Craig.
Operator: There are no further questions at this time. I would hand over the call to Bob Gagel, CEO, for closing comments. Please proceed.
Bob Daigle: Well, thank you again for joining our conference call, and I look forward to updating everybody on progress we’re making in the months to come.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation and you may disconnect.
