Auguste Richard: And congratulations on entering the Promised Land, a positive free cash flow.
Karel Janac: Yes, we promised it, and we’re doing our absolute best to make it happen.
Auguste Richard: You delivered. In the press release, you mentioned 5 deals with 30 of the top global technology companies, and I was just wondering if you could explain exactly what you mean by top 30 global tech companies. Is it semis? Is it hyperscalers? Is it by market cap? Is it by revenue? Just a little bit more color on that statement.
Karel Janac: Yes. So in order to have a sort of a unified methodology, we’re going by market cap. And so, it’s basically top 20 semiconductor companies by market cap, and then Top 10 system houses by market cap. And together, they make up what we call the top 30. It’s the Arteris top 30 technology index.
Auguste Richard: Got it. And then which buckets were those 5 companies in? The semi companies or the system houses?
Karel Janac: Both sides. The reason we want to do revenue, we go by revenue, is because the revenue from the public semiconductor companies is available, but you don’t know what the system house chip revenue really is, right? So that’s why — you just made market cap made sense from a sort of unified methodology perspective.
Auguste Richard: Got it. And then just looking at the numbers and sort of realizing how your cash works, is it reasonable to assume that the bookings in the quarter are on the order of $6 million?
Nicholas Hawkins: So ask that question again, Gus. I didn’t get the tail end of it?
Auguste Richard: Sure. Just looking at sort of your accounting and making some back of the envelope calculations, is it reasonable to assume that bookings were on the order of $6 million in the quarter?
Nicholas Hawkins: No. Hopefully a lot more than that.
Karel Janac: Yes. A lot more than that.
Nicholas Hawkins: Because that means our OpEx runs at sort of high 70s. Sorry, not high 70s — 17s in the quarter. So yes. But basically, TCV of bookings, total contract value, has to run in terms of collections in excess of that to be cash flow positive in the quarter. And then you’ve got plus or minus working capital shifts at the end of the quarter and the beginning of the quarter, which can sometimes mess things up a little bit. But that’s the basic deal. So bookings, which is what we would call TCV, plus and royalties we would throw into that bucket, so it’s everything together, have to be north of the OpEx number. The non-GAAP OpEx and it has to be the non-GAAP OpEx, because obviously the SBC is not a cash expense, if that makes sense.
Karel Janac: Does that make sense, Gus?
Auguste Richard: Yes, absolutely. Yes, that does indeed. And then typically you guys announce a new product every year, and I’m just wondering, are there any thoughts on sort of when and what, new product might be this year?
Karel Janac: Not ready to announce, but what we said is that we expect there to be impact on revenue in the second half. And that’s not changed from the fourth quarter to this quarter. We’ve been working very hard. We’ve been making progress, and we still feel that we’re going to make a good understatement.
Auguste Richard: Got it.
Karel Janac: And we’re very excited about it.
Operator: There are no further questions at this time. I will now turn the call over to Charlie Janac for closing comments.
Karel Janac: Thank you, everyone, for the good questions and being on the call. And we look forward to seeing most of you at the upcoming conferences that we’re participating in. And we look forward to updating you on the progress of the company. Thank you very much.
Operator: That concludes our question-and-answer session. Have a great call, and you may now disconnect.
