Unidentified Analyst : Okay, understood.
Nigel Hunton: So in that, again, what I mean is that exclusivity means we cannot sell to anyone for those applications. So that’s what the — that’s why the exclusivity, it is absolutely exclusive to them for that application.
Unidentified Analyst : And this is actually a show of my ignorance. But I want to know what is the market share of your TRIO partner in the cellphone market?
Nigel Hunton: You mean from our partner’s market share is not really for us to comment on, the market share of our partner is probably on their website but they are clearly the market leader in absolute number one, so they are market leader in that sector.
Jim Moniz: And I would say anybody that has paid attention over the last four or five months as to what we’re doing. Yes.
Unidentified Analyst : Okay. There is a trend towards putting tempered glass on top of the display. Would that temper glass stick to your film?
Nigel Hunton: I mean, I think if you look at what we announced in the press release, the TRIO is for coating glass and glass ceramic substrates, and any glass and glass ceramic substrate is covered in that agreement. So it doesn’t matter if it’s tempered or not tempered, I think it will cover — it covers any substrate. And that’s why I mean is a game changing technology that really has the flexibility and everything about it is why our partner is so excited about it and why we’re given the exclusivity.
Operator: Next question today is a follow up from Hendi Susanto from Gabelli Funds.
Nigel Hunton: We can’t hear your Hendi? No, that’s just me. Operator, can you hear Hendi?
Hendi Susanto: Yes, hi, again, Nigel and James. I think 2024 is still far away. But with regard to the first full year of profitable results. Do you have insight into what revenue level? And what kind of revenue mix is the underlying assumptions among let’s say like hard disk drive market Lean 200, HAMR and TRIO?
Jim Moniz: Yes, I would say at this time, we’re not prepared to talk about what the revenue mix could be how much between the two, but what we look at internally is if you look at the investments, we’ll make an R&D this year. And as we said in our prepared remarks our OpEx being somewhere between $36 million and $37 million. If you just did simple math and assumed a 40% gross margin, you need to be somewhere around $90 million in revenue to breakeven.
Hendi Susanto: So that is very encouraging, James. And the second question is I saw on your website ballistic coating, is that the commercial name for TRIO let’s say end products. And then outside of consumer electronic devices, do you see any like low hanging fruit applications?
Nigel Hunton: Yes, just to cover that first. I mean, as you said, as you know, when I joined a year ago, we had the Intevac ballistic coating and the IBC as a potential route forward and a potential technology. And some of that has been developed into this TRIO tool. So the website, as it says is under development. And we will actually address that in 2023. My focus in 2022 has not been about trying to put nice things onto a website, it’s been absolutely about creating a new technology platform, getting this business fundamentals correct. But you’re right this year is the time to get the website upgraded, put some additional material on there and actually bring TRIO to life on the website. So that will be one of my actions for this year.
But last year was very much about getting the technology launched, focused and making this company success. But you’re right, the website still does say under development for IBC. And we will change that to TRIO on current platform and the future growth.
Hendi Susanto: I see. And, Nigel, my second questions about like potential target application outside of consumer electronic devices for TRIO.
Nigel Hunton: Yes, I mean at the moment, as we’ve said very much the focus is getting this tool built, qualified and out there and making that success. Beyond that I see other opportunities. I think we talked in one of the announcements about this potential around the automotive and other sectors. There are market opportunities, I mean but for me at the moment is let’s get this thing built, qualified into the market and keep updating use of it every single quarter by saying this is what we’ve done. This is what we’re going to do next quarter and keep building that story and building that success. So I think I’ve got enough to do to focus on that one exciting market opportunity of electronic devices first.
Hendi Susanto: Thank you, Nigel, and then all the best for winning TRIO — into production environment.
Operator: Next question is coming from Dan Weston from WestCap Management.
