Brian Lee: Hey, guys. Good afternoon. Thanks for taking the question. I had several. Maybe just to start off, I wanted to understand kind of the evolution of the SunPower dispute resolution here. So they got — you got 85 megawatts of volume committed pricing fixed at the original terms. But effectively, at least it sounds like you’re allowing them to terminate the prior contracts that you had for ’24 and ’25. But I guess I don’t really hear what you guys are getting in exchange for letting them out of both contracts because they effectively, I don’t think they’re fulfilling volume commitments under the ’23 deal, and then ’24 and ’25 are going away. So I just — I guess I’m struggling to understand how this — I know you wanted to dispute behind you and you can move forward and strategically, this gives you better clarity heading into the next few years. But is there anything I’m missing just it feels like this was a one way — a bit of a one-sided resolution?
Bill Mulligan: Yes. Yes. Thanks, Brian. Well, the settlement does include warrants for us. So that’s part of the upside for us. I come back to, though, that the primary reason was for us to be able to go out directly to these installers. Really cutting out the middle man with SunPower in a challenged market like this, there’s just really not a lot of room for stacked margins. So we’re going to be able to offer installers better pricing and also achieve higher ASPs ourselves by eliminating the mark-up that SunPower has historically applied to our products. So that is really our view is we wanted to be able to get out of this exclusive relationship, diversify our customer base. So it was really a strategic move. And we felt this was the right time to do so.
Brian Lee: Okay. That makes sense. I guess as a follow-up to that, it’s going to take a little bit of time, right, to recover, if you will. But in the medium term, it sounds like this is a good transition for you, Bill, as you mentioned, you’re going to get higher ASPs, you cut the middleman out. Presumably higher ASPs, I would assume that means higher margins for you as well. So in the interim, it does sound like margins are going to be pretty negatively impacted by underutilization on IBC relative to performance. When do you think we see kind of margins get back to a point where you’re significantly higher on IBC versus performance like we were probably seeing in the first half of this year when you were doing consolidated mid- to high teens gross margins.
Bill Mulligan: Yes. We’re absolutely excited about this for the long term, right? Just taking control of our destiny in the US market, which is becoming increasingly important to us. With the world’s best product, we think, we’re well positioned for the long haul. You’re right that there’s a little bit of a time between here and there. It’s the reason we’re taking pretty dramatic action on rightsizing our capacity because we don’t want underutilized capacity, right? So we’re dealing with that now so that we can work through the problem quickly. And so I think we’ve sort of struck the right balance there between capacity for growth and maintaining profitability and positive cash flow in the near term to the extent possible. so that we’re strong coming in out of the second half next year.
Kai Strohbecke: Yes. And I would add that talking about the second half of next year, if you think about it, we’re going to have a completely revamped product portfolio for the DG markets. In Europe, we’re going to introduce Performance Series 7. So the latest incarnation of that product which the sales team is really excited about. And also, we’re going to have 100% of our IBC production on Maxeon 7 on the very latest technology. So all these moves are designed to bring us back to these margin profiles that we have enjoyed in the past. And in the United States, we’re also going to deploy Maxeon 7 and then we’ll also have the new Solaria suite of products that we are importing into the United States. In addition to that, we are ramping up beyond the panel complementary offerings to really have a full suite of products for DG home owners.
So that’s our strategy, and we think that’s going to play out successfully after the transition in the first half and then coming to a full swing in the second half of next year.
Brian Lee: Okay. Great. That’s helpful. Last one for me and I’ll pass it on. I think, Kai, you mentioned during your prepared remarks, you alluded to some customer co-investments as it relates to the New Mexico facility. Can you maybe elaborate a little bit on that? What kind of discussions are you having what sort of the magnitude you could potentially expect if you see those come to fruition? And then time-wise, is it right ahead of construction? Or what sort of — what should we be thinking about as we look to that potentially being a cash in source?
Kai Strohbecke: Yes. It’s something, Brian, that we have talked about pretty consistently actually as the main pillars of our financing of the US manufacturing side, which are the DOE loan and customer co-investment. Customers are very, very excited about that new facility and we’ve been in touch with them and discussing all these things that you just mentioned around volumes, pricing timing terms and conditions and so on. We’re not in a position right now where we would disclose the details. But I think suffice it to say that these things have to come together, the DOE loan and the customer co-investment as the two main pillars of that financing and both of these items are on track.
