Scott Buck: Great. That’s helpful, Sam. Thanks for the additional color, guys.
Operator: The next question comes from Gene Inger of ingerletter.com. Please go ahead.
Gene Inger: Hi Sam and Al; I thank you both for your leadership and the tough effort which is ongoing in turning the company around. And I’m just curious about a couple of things. I agree. The headwinds from China, by the way, are probably turning into tailwinds, but I don’t know
Operator: It appears we only lost Gene. And our next question comes from Aaron Martin of AIGH Investment Partners. Please go ahead.
Aaron Martin: Hi, guys. Sam, I think you mentioned four different automotive customers that you’re engaged with on the automatic braking system with. Can you give a little more color around that process and where you are with the different automotive customers?
Sam Rubin: Yes, absolutely. I’d say that all of this is fairly fresh with some of the customers, but moving surprisingly fast compared to the automotive industry. With one customer that has already field tested our system extensively, we’ve been working for, I’d say, a year and a half, maybe even close to two years. And with that customer, what we provide is actually more than just an optical assembly. We also do some of the electronics related to the system. I’d say that that customer we’re most advanced with, and they would probably start if everything goes well, they would probably start taking deliveries within the next year and a half and gearing up and scaling up. They have a timeline of five years. This customer, I’d say, is the most advanced that we know of in terms of actually testing systems in the field, on cars and so on.
Other customers are in different stages. Some are just exploring the area, taking some general samples from us to sort of play around with thermal imaging. Others are well established companies that know exactly sort of what they want in this and have very clear specifications. But their timelines sometimes vary and change. So I’d say with the automotive industry being where it is, and the swing is there between no inventory to over inventory and so on, I’d be a bit cautious about when we would see this go ahead but at least with one customer, signs are very positive.
Aaron Martin: And for this customer, are you dependent upon them sort of specing in a new system or really this is adding them to adding your solution to an existing solution?
Sam Rubin: Well, I’d say the base system that they are adding this in, meaning automatic braking system exists and so they know how to handle the input from those systems. They have already a platform for it. What we’re doing is working with them to add another sensor, another input into that system, which is why I feel comfortable enough talking about it. It’s not a pie in the sky as requiring the customer to learn a whole new system and a whole new set of data. It’s something they’re familiar with and can deal with it. However, they’re not going to retrofit it, as far as I know. Not going to retrofit it into existing cars. This is into new models that would hit production in that time frame.
Aaron Martin: Okay. And then on the gross margin, obviously a great quarter there and I heard the caution a little bit. In the short term, as we think longer term and hopefully with revenue growth, where should we be thinking on the gross margin side; medium to longer term?
