Richard Shannon: Okay, fair enough. Let me hit a couple of financial questions for Anuj. Let’s see. Let’s hit on product gross margins here. After some pretty good numbers last year, last two quarters have been fairly significant, amount lower, I think in the high 40s percent range here. Last quarter you talked about it being something related to yield. I’m wondering if that’s still continuing. There’s any visibility in getting that back up to prior levels. And then also, is there any dynamic of mix here, particularly as there seems to be a little bit of shift between Toggle and STT in your mix over the last few quarters?
Anuj Aggarwal: Yeah. Hi, Richard. Great question. Yeah, from a gross margin perspective, the gross margin, again without giving guidance, has been within our internal model. So, you know, we continue to hold with the low to mid 50s as where we believe gross margin is. If you look at Q1 versus guidance, which I think you’re kind of alluding to, the Q1 gross margin was pretty healthy. We did have about $3.3 million in RAD-Hard revenue that, that we saw in Q1. And so that’s normally higher margins, somewhere between 70% to 90% gross margin. In Q2, like we mentioned, there’s no RAD-Hard revenue that’s being incorporated into the guide. So really the range there is based on purely product margin. But from a product margin perspective, the team has done a great job operationally looking at cost reduction projects, being operationally efficient. So we’ve been able to see a healthy gross margin last couple of quarters.
Richard Shannon: Okay. Maybe to follow up on this topic, and I guess I’m very curious, specifically on product gross margins here, should we be viewing these levels that we’ve seen a number of quarters over the past? Looking at the model over the last three years, where you’ve seen numbers in the kind of mid 50s range, is that deemed to be abnormally high or the range you aspire to. And then to what degree do we see – as STT ramps up here, both the high density one and the new low density one that seems to be ramping the second half? Is that a level that we can still aspire to, or is that going to be a little bit more difficult?
Anuj Aggarwal: I think what we’ve seen in the past, Richard, is probably a little bit on the high end. There’s been, I think, some great efficiencies as the teams looked at improving yields and bringing performance up from an operational standpoint. So I think there’s some steady state that you’ll see there. It’s not like you can get yields to 100%, right. So there’s going to be some steady state where that kind of tapers off. There is a little bit of flex in terms of the mix. And so, as we look at that, there’s some challenges there. But if you look at the new low density STT product, we’re expecting margins to improve from that product. Right now, it’s just been introduced, and so we’re working through the margin challenges there as you ramp a new product and get it up to speed and get yields to the levels you need to get them to. But you should see improvement in the gross margin from that product.
Richard Shannon: Okay. Fair enough…
Anuj Aggarwal: Our aspiration is still to be the mid 50S.
Richard Shannon: Okay. But that’s the number you’ve talked about in terms of your total gross margins, not product gross margins, correct?
Anuj Aggarwal: That’s correct.
Sanjeev Aggarwal: That’s right.
Richard Shannon: Okay. Okay. Fair enough. Then maybe one or two others here. You know, I think you said in your press release here something about a foundry agreement here, and I’m not sure if I caught anything in your prepared remarks around that. Can you elaborate what that is?
Anuj Aggarwal: Yeah. So, as you know, we’ve actually been a foundry for several radiation hard programs, and also in the past to an embedded program as well, over the last 15 years or so. So we are, you know, actively acting as a foundry. So this is a new customer that we are bringing online. So right now, we are in the process of setting up their wafers in our fab, and we hope to go into low volume production sometime in the second half of this year, more likely Q4 of this year. And the whole idea over here, Richard, is that it’s going to lower our, you know, it’s going to improve our fab utilization and then lower our – basically distribute our fixed costs over more product.
Richard Shannon: Okay. Can you elaborate on the product here? Is this a custom product in any way, any sense of application? And how big can this customer be relative to your other big customers or your company in total scale?
Anuj Aggarwal: Hopefully we can talk about this more at the next earnings call, Richard, but this is as much as we can disclose at this point.
Richard Shannon: Okay, that’s fair enough. Then maybe just kind of looking big picture at your product business here, your guidance here for product revenues being roughly flat is a good sign in the context of what seems like a fairly difficult market for industrial and automotive. To what degree do you think we are – are we through any sort of inventory burn issues? We’ve seen a little bit of burn, I imagine, in the last few quarters. As you look at it. Are we largely through that, or do you worry that there’s going to be more to come?
Sanjeev Aggarwal: Yes, Richard, it’s really hard to speculate on where the year is going to be. I think if I think about semiconductor and just being in semiconductor for a long time, typical downturns, you usually see them to be four to five quarters, and from that, we should see some uptick in the second half.
Richard Shannon: Okay, fair enough. The last question, I’ll jump on. Sorry, I just didn’t mean to interrupt.
Sanjeev Aggarwal: No, no, go ahead.
Anuj Aggarwal: Go ahead, Richard.
Richard Shannon: Last quick question for me is just on lead times, I think you mentioned companies now ordering inside lead time. Are we at lead times that you were at before COVID on both your Toggle and STT products, or is that still coming down to those levels?
Sanjeev Aggarwal: So, Richard, we’ve kept the lead times back to the pre-pandemic levels. They’re roughly 26 to 27 weeks, depending on which products you’re looking at.
Richard Shannon: Okay, then I think that’s all the questions for me. I’ll jump out of line, guys. Thank you.
Sanjeev Aggarwal: Thank you.
Anuj Aggarwal: Thank you, Richard.
