So we actually want to set the company for nice growth and high profitability while being efficient. We have enough resources to be in the 50 million to 75 million booking a month. I think if we want to grow to 150, then we might add more people and expand internationally more aggressively. I hope that gives you some color.
Pavel Molchanov: Yes. And then maybe just following up on the international aspect, last August, you announced a good size deal with a developer in Italy and Spain. And I think the plan was to start delivering late ’23 and kind of continue through ’24. Is that timetable still correct?
Patrick Cook: Yes. From those projects, that was the announcement we did with 5E, the 350 megawatt portfolio. We’re looking still the majority of that revenue to be delivered kind of in 2024. And like we said, into 2025. We saw a couple of project delays in small nature in 2023, but largely the portfolio is still intact.
Operator: Thank you. Our next question comes from the line of Jeff Osborne of TD Cowen. Your line is open.
Jeff Osborne: Good evening. A couple of questions from my side. I was wondering, Ahmad, if you could just address, in looking back the awarded backlog conversion into the contracted under the prior management team, as you diagnosed why that was a challenge. Is there a way of framing that?
Ahmad Chatila: Yes, just first of all, I want to thank the prior management team to really growing the business to that level. I think a lot of it had to do that we needed everyone to be on the road, also to help customers move the awarded to contracted. And adding more salespeople, getting stuff done internally and that’s what it is really, it’s a lot of blocking and tackling. And I think we learned our lessons and now we’re going to intensify that activity, Jeff.
Jeff Osborne: Good to hear. And then you made some comments that I just wanted to tie into the financials as well, but you made reference to using more steel than your peers. And then a 12-to-18-month sort of design the value and redesign of the portfolio to use the less steel. If I heard you right to get to the 20% gross margin level. Is the comment about the 50 million to 60 million in revenue in the third quarter depending on the bonus payment schedule. Does that assume that you hit a 20% gross margin or do you hit 20% after that 18 month time period.
Ahmad Chatila: We do not hit 20% gross margin in Q3 because we have absorption issues. So the way I look at it is direct margin. And the answer is, we are in a good path already at this moment we are competitive on steel content. Maybe with a little bit better scale, we can negotiate better with steel manufacturers. I think maybe that’s an area we can improve or some of our logistics on supply chain networks in certain international areas we can improve. I think to get to 20% gross margin, we need more than 50 million to 60 million. How much Cathy, do you think we need to be at like 100 million a quarter?
Cathy Behnen: Yes.
Ahmad Chatila: I would say we need to be at 105 million a quarter and we’ll get to 20% gross margin. Yes, 105 million. Okay.
Jeff Osborne: Got it. Thanks for being precise. Last question is, just as it relates to the IRA. Is there any credits assumed in the guidance for Q1 or how do we think about that for the outlook for the year?
Cathy Behnen: No, we have not assumed the credits into our guidance. We are utilizing our facility at out of steel. So we have capacity to manufacture domestic content and provide that to our customers as needed. But we have not put that into our forecasted.
Operator: Thank you. One moment, please. Our next question comes from the line of Donovan Schafer of Northland Capital Markets. Your line is open.
Donovan Schafer: So, Ahmad, first I just want to clarify with your comment around, you’re being at a rate, you have a monthly registered run rate, I guess, right now, booking $50 million per month or adding that to the backlog. Do those, do you mean $50 million that goes into that PO bucket, a purchase order that’s contracted, or is it some of that — does that include awards or projects that go into the awarded bucket? And if it’s not one or the other, can you give any kind of rough, if it’s not 100% one or 100% the other, can you give some rough sense of what kind of a mix we’re talking there?
Ahmad Chatila: Yes, it’s 100% POs, purchase orders, contracted. The awarded is higher than that.
Donovan Schafer: Okay. Fantastic, okay. And then for accounts receivable, yes, I think in the past, so that’s come down a bit, but not a lot just on a quarter-by-quarter basis. And given the fairly low level of revenues in Q3 and Q4, yes, I would have expected it to maybe come down a bit more. And I think in the past, you’ve maybe even talked about improving those collections as a way of providing some of the near-term funding. So, I’m just wondering if we can get an update there. It looks like there was, I think Cathy mentioned that some of that was written down, but are there other amounts in the accounts receivable that are past 90 days or could be coming under pressure for additional write-downs? Just any updates or clarification, that would be helpful.
Cathy Behnen: Yes. Sure, Donovan. No, I’m not anticipating any other write-downs in the accounts receivable balance.
Donovan Schafer: Okay. And then just let’s see, talking about Q1 as the trough, on the Q3 call, I think I look back at the transcript and Patrick, you made the comment that you were expecting to improve revenue performance in the first quarter. And obviously with the guidance that’s come out, that hasn’t played out as expected. So what is it that gives you that — what gives you confidence this time around, I guess, that Q1 will be the trough and that you’ll see that additional growth in Q2, Q3 that gets you to the breakeven. What do you see now that’s different? Thank you.
