Mike Bishop: All right. Thank you, Cody. Okay, so some questions have been coming in through the through the chat and I’ll just go ahead and ask some of those. First is, why do some Phase III customers pay for an integration license and others do not?
Scott Bibaud: Yes. So let me let me take that. Yes, so our — there’s no hard set of rules on this. If we have a customer that we think has incredibly high potential, and they push back very hard on the concept of an integration license, then we’re probably going to be, we’re probably going to be flexible for that. Because more important to us to get those very high potential customers going using our technology, and then to get the money from them. For others, especially ones where we’ve done multiple runs, at some point we can talk them into the integration license is not a matter of paying it or not paying it, it’s only a matter of when you pay it. Because with all customers, they understand if they avoid paying it at the beginning, when they finally get to manufacturing license, then they will have to pay the integration licenses. Those pieces all add up to each other.
Cody Acree: Okay. And another one is goes the JDA, the first JDA licenses allow for limited sampling to their customers.
Scott Bibaud: Yes.
Cody Acree: And then — let me follow-up because there’s other questions about whether the JDA is our sampling in general to their customers?
Scott Bibaud: Yes. So let me first of all, I’ll just talk about our JDA and licenses in general, because it can’t talk about specifics for the individual JDA customers. But typically, when a customer gets to a manufacturing license level with us, and at least for our first JDA customer, it did include a manufacturing license, we do include the right for them to do limited sampling. Now remember, these guys are not typically making devices and selling them. They are working on process technology. So it’s more likely that they’d be sampling. They’d be sampling wafers with, with the devices people could measure or even PDKs that have models that have the characteristics of the new transistors. But yes, that is a right that we give people once they reach a manufacturing license level is the sample. Now, I can’t really comment on whether people have sampled under those that to say maybe only the first JDA customer would have had the right to do that so far.
Cody Acree: Okay. And then we had a question around MST CAD revenue. Can we elaborate on it? And if there’s any metrics to measure?
Scott Bibaud: You want to take that Frank?
Frank Laurencio: Yes. Sure. So we, we offer MST CAD to customers under a free trial for 90 days, a lot of our customers take us up on that, after that, they may either decide not to continue doing the MST CAD themselves, or they convert to a paying customer. And so I think I saw the question come in saying that it was the first time we disclosed that we actually had a small amount of MST CAD revenue in Q3, which we disclosed in our 10Q for that quarter. So, let me also just add that just because the customer isn’t paying for MST, CAD doesn’t mean that they’re not taking advantage of our T cat capabilities. Sometimes a customer will do the TCAD work themselves, because we’ve delivered the MST CAD scripts to them, in which case, it would be under that 90 day trial, and then a paid license thereafter.
But in other cases, they sent us process details and we run the TCAD for them. There’s a very big gamut of approaches that customers have some rely and much more heavily on TCAD and have internal TCAD resources. Others have very little, but they’re willing to look at results on what we do. But as you can see from the scale of the numbers, we don’t plan to rely on TCAD as a major revenue source. It’s really an enabler for getting us to the right solution for a customer more quickly and targeting the development. Although I do you know, expect that we’re going to see more, you know, customers who take advantage of the capability.
Mike Bishop: Okay. And in Richard Shannon joined us. Richard, if you want to go ahead and ask a question.
Richard Shannon: Can you hear me now Mike?
Mike Bishop: Yes, we can.
Richard Shannon: All right. Excellent. Policies up front here I’m traveling and cell coverage isn’t great. So I’ll hopefully the ambient noises too bad here. But that said, Scott, I think my first question here is, I’m going to paraphrase your language and your prepared remarks here. But you talked about more licensees in the months ahead. This sounds like modestly more certain, and maybe I could use the word aggressive statement that you’ve used in the past. So what exactly do you mean by this? Can you help us understand, what activities or actions you can publicly talk about that will happen in these months ahead?
John Kiernan: Yes. Thanks for the question, Richard. You know, of course, it’s a little bit dicey, because I am not trying to announce something that doesn’t hasn’t happened yet. But I definitely would say, I think there’s no doubt if you look at our customer pipeline over the last couple of years, we’ve had good traction with customers, we’ve been working with customers, but everything has been slowed down by this capacity crunch, the industry was in the — I think we talked about a JDA customer taking nine months to get a sample. I think we talked about that early last year. And in fact, it’s take it was taking more than 12 months, just because the fabs are so slow. Now, that’s all changing, right? We’re seeing much faster throughput times on our internal R&D lots, we’re suddenly see a dramatic improvement in the throughputs we’re getting.
And we’re seeing customers who are much more interested in starting to meet with us and talk about potential programs because they can get into those paths. That’s one of the things that’s driving our optimism. We also, we’ve got very good relationships with most of our licensees and JDA partners, and, we can see the progress they’re making and we’re hopeful that they’ll get to I mean, I’m more optimistic than ever that they’ll get to licensing options this year. Yes, it’s always tricky. Because reason we don’t pre-announce is that any decision by them that they want to do one more wafer run can take nine to 12 months more, but we’ve got a lot of shots on net here with all the customers in our pipeline, and we’re hopeful that some of them come up with licenses in the near future.
Richard Shannon: Okay. Fair enough. I know you don’t want to get essentially you negotiate against yourself by declaring something overly strong. But I just wanted to get a sense of the level of improvement of competence. And I think you portray that. So thanks for that. Scott, you in one of your early prepared remarks you talked about travel activity up 450% to 500%, I think quarter-on-quarter. How should we think about what this really means? I mean, is this a sign of activity in earlier stages? Or kind of my one of my follow-up questions here will be, I think one of the key things for your story and impact on your stack will be getting somebody over the finish line getting them to production that seems like a critical thing. Is this travel activity? Is this more early stage or potentially late stage such that could help you get over that finish line?
Scott Bibaud: Yes, I’m sure you won’t be surprised that I say it’s a mix of both, Richard?
