Mitch Hourtienne: Yes. I think, one thing Jun talked about today is the integration of Ethernet-based centers. So most lidars have an Ethernet output, a lot of the newest radars have an Ethernet output. So we’ve developed a suite of software validation tools working on the GM program that’s really state-of-the-art but that’s a big challenge to overcome. Outside of that, there’s the perception software side which we’re not taking care of for this particular OEM contract. So I think that’s another area that’s challenging. And I think what you’re seeing today isn’t much different from some of the other news that you’re talking about from other OEMs over the past year.
Hull Xu: So the ADAS software integration is indeed challenging but it’s not really specific to lidar. In fact, Cepton, we make lidar and we try to make our lidar with these Ethernet-based tools of validation procedures to make it — certainly not the bottleneck of the entire stack of ADAS. And we actually very much shine in that but there are certainly challenges in the entire stack integration, as you can see in the industry. But it’s part of the growing pain and it will be over in a few months.
Richard Shannon: Okay. Fair enough. One last question from me and I’ll jump on the line here. Another interesting passage here in your press releases about technology, the fact you’re on track to launch your next-gen long-range lidar, what’s your time frame for launching and assuming everything stays on track or what would be the first time you’d be like in C-sample and then getting to production? Is this something that could happen in calendar ’26? Or is it farther out than that?
Mitch Hourtienne: Yes. The next-gen sample will definitely be ready for calendar year ’26 and beyond. We’re already starting to demonstrate to some of the lead candidate OEMs and we’ll continue that process through the first half of next year and even working with Koito on some of their customers on that.
Operator: The next question is a follow-up from Tom Narayan with RBC Capital Markets.
Tom Narayan: Actually, I just had a follow-up on something Hull was saying about safety. And I was just wondering if right now, it’s an optionality you were talking about but I wonder if you could kind of flip the script maybe. And is this something that maybe you guys could lobby or maybe the greater lidar industry could lobby regulators to potentially mandate something like use of lidar in addition to radar camera. But just like Level 2+, Level 3, even further offerings. Is that something that you guys do lobbying regulators? Or do you see that as a potential catalyst for you guys down the road? We’ve all seen the numbers on safety to Tesla FSD notoriously gives those stats. I think their product is like 5x safer than the regular car on the road. So yes, just on that greater topic of lobbying regulators to make this mandatory. Is that something that you think could happen?
Mitch Hourtienne: Yes, definitely. Thanks for the question. That’s a great point. In fact, I did have a meeting with the Department of Transportation officials maybe a couple of months ago about some of these topics, it’s broader but all centered around safety, whether it’s a vehicle or service safety or infrastructure safety. But absolutely, we do see lidar taking the path of cameras and seatbelts and airbags in the safety of vehicles over time. So and that’s exactly what we’re driving toward. And the prerequisite of that also is one of economics, too, right? So the cost has to come down over time. And that’s exactly what we are working on our performance goes up, cost goes down over a period of time.
Operator: This concludes our question-and-answer session. And I would now like to hand the call back to CEO, Jun Pei, for closing remarks.
Jun Pei: Yes. Again, thank you very much for joining us, summarizing this record revenue quarter. We look forward to meet again next time to tally up this exciting year of 2023 and share more exciting news. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
