Kurt Wood: Kevin, do you want to take the first part on trend and I’ll take the…
Kevin Hostetler: Yes, I mean, so we don’t give quarterly booking trends, and I think it’s — we’ve stayed away from that. We’re comfortable with the current momentum in our business, and that’s as far as I’ll go with Q2 or Q3 bookings. We’ve really tried to get the market off of a quarterly bookings trend to think about the long term of the year just due to the cyclicality, seasonality of the bookings and the fits and stops that we’ve seen in this industry over the last several years. So from that standpoint, I’m going to stay away from predicting Q2 and Q3 bookings. I’ll just say that the underlying momentum in our business, we’re pleased with to date. We haven’t seen any significant change in that in the near term, but I won’t predict what may or may not happen quarters out. I’ll let Kurt talk about the second part of your question.
Kurt Wood: Yes. And I’ll just add to that, Phil, as we go in and look at the bookings trends, we’ve had historically where you have a low quarter that you immediately go back with a high quarter like we saw in Q4 was $600 million. That’s why we try and shift away because what we’re not going to do is do any type of price concession or anything, just had a booking number by the end of the quarter. That’s just not what we price here. From an international standpoint, we haven’t seen any kind of change from our historical revenue mix. It’s pretty consistent with what that is. I think from — when we look at it and our Q should be out right now that you get that we’ll look at from a competitive standpoint, we have seen in Brazil is a little bit more competitive than what we’ve seen in the past there.
But we’re still winning our share. Our mix is the same as Kevin alluded to in his prepared remarks, our ability to perform and the track record that we have with the way technology and the energy yield from those fields has been phenomenal, that’s certainly helping us in those markets through those proof points. For example, I know we referenced in my remarks, the full year results, but it’s just getting better. In December, we had 16 of the top 20 solar sites in Brazil for our rate sites. And that’s significant. And when you think about that data and you unpack it, the difference in the top 5 and say, numbers 16 through 20 is several percentage points’ worth of efficiency. So this is where we’ve talked routinely about results being rhetoric, and we love the third parties out there capturing those results and putting them out there for everyone to see, it’s really helping us win additional business down in that marketplace because it’s actual results and statistically very significantly better than the competitors that we compete against in those markets…
Operator: Thank you, sir. The next question we have comes from Maheep Mandloi of Mizuho Capital – of Mizuho. Please go ahead.
Maheep Mandloi: Hey, thank you. Maheep Mandloi here. Just a question on the international mix also. It looks like it’s 75, 25 US international. Should we expect something similar for the rest of the year? Just trying to get an understanding of the rest of your revenues, which might be exposed to AD/CVD here? And second part, on the margins on international, you talked about being competitive, it looks like around 15% for the 10-Q. Should we expect something similar going forward here or any expansions of improvements there?
Kevin Hostetler: Yes. A couple of things there. Regarding the mix, I think it’s going to be fairly consistent. It obviously can move around in any quarter, but we see that fairly consistent with what we’re doing in the book, obviously, in Brazil and Spain a little more bookership in that same quarter, how those markets work. As far as margins, we mentioned a little bit earlier in the Q&A, there was a little bit more locally sourced supply coming into Brazil and Spain in particular versus some of the lower cost regions where we can source supply. We did that to accelerate some time schedule with some customers. We think we’ll — the margins will improve in the second half year in those regions with what we’ve already kind of sourced and that’s coming in.
But as you know, we got to burn through the inventory that we burn and secured for those projects. So I think you can see the Q2 kind of that similar range, and then you’ll see that starting to lift in the second half.
Maheep Mandloi: Okay. Thank you, all. Take the rest offline.
Kevin Hostetler: Thank you.
Operator: The next question we have comes from Donovan Schafer of Northland Capital Markets. Please go ahead.
Donovan Schafer: Hi, guys. Thanks for taking the questions. So first, I want to ask someone else earlier in the Q&A asked about the 250 tracker. And Kevin, I think you commented that actually the new design, you seem to be suggesting it’s not that it’s doing so great in the US because DuraTrac is doing so well with the cost down structure. But that the new — but that the redesign on the H250 that was actually done with the intention of making it more attractive in the US market that, that is driving incremental interest internationally, but there’s more — now that you’ve got the driveline between tube is kind of the rotating shaft instead of the pendulum swing thing that cause — is that correct? Am I understanding that correctly?
Kevin Hostetler: Yes, that’s correct. The enhancements that we made initially targeting in the US market, we frankly weren’t going to launch internationally for a much longer period of time. The — not only did we do product enhancements, but it was much more cost-effective in the redesign. And this was about getting the FTI engineers working closely with the Array engineers and coming up with kind of some hybrid ideas for improving that product and reducing its cost. While that was originally targeted at a lower price point here in the US, you’re absolutely right, the US is still just migrated to accelerating the purchases of DuraTrac, and then what we saw happen very quickly is our international customers really wanted access to that product line.
So we had to accelerate the international versions of that. And I would say that’s, by and large, the disproportionate amount of what we’re booking now in our international business. Now again, that will be for delivery several quarters out. its really predicated on that new platform, both in Spain and Brazil. So that platform is being well received.
Donovan Schafer: Okay. And then — that’s interesting. And then following-up four kind of still stick with International. There is the press release, the announcement kind of a partnership with the Saudi Arabian, I think it’s called like — I think the name is an aluminum company, but it’s — I believe it’s a steel fabrication sort of subsidiary. And so, — to go after that market and be able to bring in a locally source — sourcing and so forth. Saudi Arabia and significant portions, I think, of like North Africa and maybe other parts of the Middle East can have such harsh weather conditions. And I remember someone once describing at least the DuraTrac as being built like a tank. So, I’m curious, does your — does that still — is that still the sense among market participants. Does that give you an edge in places like that? Is there still a reputation or perception? I mean you’ve taken concepts, I don’t know, maybe hypothetically…
Kevin Hostetler: Yes. I can tell you…
Donovan Schafer: Made in not a…
Kevin Hostetler: Yes. Great question. I just came back from a week over in Dubai and Abu Dhabi meeting with several end-use customers as well as supply chain partners, and I’ll give you a sense of what we’re focused on here. So this is going to be a very quickly developing market, albeit the market at a slightly lower price point than we would enjoy here domestically. But both in — more broadly in Africa as well as the Middle East, I think it’s going to be a huge market. So, a few takeaways from my visits. So first, our approach has consistently been to partner with suppliers in region, for example, in Saudi that will allow us to be able to get beneficial pricing because of the amount of domestic content we’ll have in those regions.
And I think our supply chain team and our Middle Eastern team, have done a great job lining that up and putting us in a great position. When we met with several of the EPCs and developers, I would say my biggest takeaway was how well-known our brand was and how welcome we are into the market. Look, the tone, quite honestly, was not only what took you so long, but thank God, you here, how do we get going together. So incredibly positive tone in that market, and we’re taking it very seriously. We’re actively hiring resources in region and we are actively bidding on a lot of work in that region at this point. So, it is going to be a growth market. We’ll talk more about it once we start really converting some of those inquiries into orders. A little premature now, but we’re really excited about the market and not spending some of my personal time there with some of the members of the senior leadership team.
Donovan Schafer: All right. I’ll take the rest of my questions offline. Thanks.
Kevin Hostetler: Thanks, Donovan.
Operator: The next question we have comes from Tom Curran of Seaport Global Securities. Please go ahead.
Tom Curran: Hey, guys. Thanks for squeezing me in here before last call. Kevin or Kurt, could you give us an idea of maybe just directionally, how total non-tracker revenue did sequentially in 1Q? And then are the two of you working on a plan to eventually break out non-tracker revenue or maybe just provide some more disclosures related to it? And if so, is that something we could expect to see in this year 2024?
Kevin Hostetler: I don’t think you’ll see it this year. We’ll break it out when it becomes material enough to do that. We obviously saw some this quarter coming in. We’ll not material enough to disclose part of our active strategy, and we will break it out when it’s material, but it won’t be in 2024.
Tom Curran: Got it. Thanks for taking my question.
Kevin Hostetler: You got it Tom.
Operator: The next question we have comes from Colin Rusch of Oppenheimer. Please go ahead.
Colin Rusch: Thanks so much. Guys, you talked about the CLIP solution, and I know you’ve worked on different footing solutions. Can you give us a sense of how much efficiency you can get or you can give your customers from a labor perspective or a time-to-installation perspective with some of those solutions?
Kevin Hostetler: You’re talking relative to our new CLIP on the first solar Series 7 in particular? Is that what you’re talking about?
Colin Rusch: I’m talking about just in general. It seems like an area of competitive advantage and opportunity for you guys to pick up some market share and drive some value for customers.
Kevin Hostetler: I don’t think we’ll quantify it here but suffice to say when we came in and working with Jerry, who’s our Head of Engineering, look, it was one of those avenues, one of our six pillars we decided to focus on was ease of installation and speed of installation to reduce the overall installation costs of our customers. So from that, we started several new product development initiatives in order to focus on speed of installation, ease of installation, several of that being better, new enhanced CLIP design, several of them launched over the last six months and several more that’ll be launching over the next six months. So I can’t quantify it other than telling you it’s a huge focus of ours and we’ve been working with several of our customers in validating those time studies of ease of installation and I could just say that it’s being well-received. I guess, I would leave it at that. It’s meaningful.
Colin Rusch: Thanks so much guys.
Operator: Thank you. The next question we have comes from Andrew Percoco of Morgan Stanley. Please go ahead.
