Ryan Levine: Just want to make sure we’re hearing that right. So are you saying that the step-up is really going to come towards the last quarter of the year and then we won’t see a more ratable recovery of the gross margin?
Manavendra Sial: I think you’d see improving gross margins quarter-on-quarter as we — the new deals kick in into revenue and we go through the old deals. And fourth quarter of fiscal year ’23 will be a close the approximation of how you will expect to see ’24 fiscal year as you were pretty much booked in most of our legacy.
Ryan Levine: Appreciate the color. Thank you.
Operator: Thank you. Our next question comes from Tom Curran with Seaport Research Partners. Your line is open.
Tom Curran: Hi. Thanks for squeezing me in. I appreciate it. Just one topic left for me. I know we’ve run over, so I’ll try to keep it short. About two weeks ago, the California Public Utilities Commission approved PG&E’s request to amend for its midterm reliability contracts for storage. Apparently, all four storage contracts have had their pricing rates, three have had their scheduled to lead and one has had its size cut in half. Could you speak to the implications of these changes, especially the approved increase in pricing for your current backlog and expected future awards for California?
Julian Nebreda: Very, very we are not aware of deficiencies that you’re just raising. So I’ll have to go back to my sales team. I guess there hasn’t been an issue material on top of my attention. But we’ll take a look at it and a view.
Manavendra Sial: I think in general, we are seeing it price . I’ll probably not attribute in one single phenomena and rest can follow up on the question.
Tom Curran: Great. I appreciate that. And then could you just give us an idea of what California represents as a percentage of your current backlog?
Manavendra Sial: We’re not providing numbers per market because then we’ll get into this. But I’ll tell you, California is clearly one of our most attractive markets. And in the U.S., it’s a market that where we’re seeing a lot of demand and we see a lot of opportunity for creation. So that’s what I will say for ’23.
Julian Nebreda: Maybe when I think about it is our revenue is two-thirds, if you look at our historical revenue and the backlog percentage of all that, I think two-thirds of our revenue comes from the Americas, within the two-thirds that comes in the Americas, California is leading do not break it down states with America.
Manavendra Sial: Very attractive market.
Tom Curran: Right. I figured it was worth to try to dig a bit deeper. But I appreciate the help. Thank you.
Operator: Thank you. One moment for our next question. Our last question comes from Craig Shere with Tuohy Brothers. Your line is open.
Craig Shere: Good morning. Thank you for squeezing me in. I’ve got a quick near term and then a longer-term focus question. Near term, people seem positive about China opening up in the end of zero COVID, but perhaps for some quarters, people might actually be getting COVID, and we might have disruptions that won’t last forever. But I wanted to inquire about your contingencies and thoughts about those risks into next year on the supply chain. And then longer term, I was truly amazed that the AES, Air Products announcement for their Texas hydrogen JV. And I wonder if you can comment on the degree to which — obviously, you work heavily with AES. But the degree to which BESS has a huge opportunity in the nexus (ph) of clean supporting dedicated intermittent renewables that then produce steady state green hydrogen production.
