Gene Sheridan: Yes. We haven’t — thanks, Jon. We haven’t quantified that adverse impact, but there’s no doubt we could have done even higher growth rates than we’re achieving today in the near-term quarters, if we didn’t see some slowdown in consumer and solar. With that said, we see strength in the other markets. We see strength in our pipeline growing, both in number of customers now for projects. So despite kind of a mixed market environment out there and equip slowdowns in growth rates in some cases, we see us growing significantly faster than the market, as we mentioned in our prepared remarks, I think that probably translates to 50% growth or more next year. We haven’t given official guidance, but as an early indication that speaks to the strong growth despite kind of a choppier mixed market environment out there.
Jon Tanwanteng: Okay. Great. Thank you. And then, Ron, you mentioned something about entering Q4 fully booked, is that versus your existing capacity? Or how should we qualify that comment. Just help me understand what it means to be fully booked.
Ron Shelton: Yes. So just very simply, when I say reference fully booked, as we look at our revenue outlook for the quarter end, our capacity available, it’s effectively fully booked. So any guidance I gave would suggest that most of that was in backlog at the beginning of the quarter.
Jon Tanwanteng: Got it. And then just a follow-on to that how do you improve the capacity going forward to drive that — the growth that Gene just mentioned in the past comment.
Gene Sheridan: Yeah. I could grab that one. So we mentioned early this year, maybe it was even late last year, we signed an agreement with X-FAB for a 500% increase in capacity. That obviously is a big deal that includes material and FAB capacity. And that’s throughout this year and into next year. So we’re benefiting today by growing not only our backlog as Ron said, but growing that capacity quarter-by-quarter appreciably throughout this year next year. In a similar way, TSMC expanded the GaN capacity and tripled it and finished that one up last year. So we’re in a pretty strong position to fill. In fact, we’re building — we’re shipping all we can build on GaN as well, not that we don’t have the capacity, but the orders keep coming in with very short lead times. So we’re constantly scrambling to try to fulfill those upside demand in Q3 and Q4.
Jon Tanwanteng: Got it. That’s great color. Thank you, Gene.
Gene Sheridan: You bet. Thanks, Jon.
Operator: [Operator Instructions] Your next question comes from the line of Quinn Bolton of Needham & Company. Your line is open.
Quinn Bolton: Hey just had a quick follow-up. The earn-out liability seems to be jumping all over the place. I think it was $70 million on the balance sheet last quarter down to 30-something million this quarter. Just wondering if you might be able to help us as we think about that earn-out liability for the GeneSiC acquisition, as liability comes down, does that mean that the GeneSiC revenue outlook is negatively affected? Or what’s the — what should we be reading into kind of the GeneSiC outlook as that liability comes down?
Ron Shelton: Yeah, Quinn, good question, just as a point of clarification, with the GeneSiC acquisition there was an earn-out as part of the deal, but we’re past the period where that earn-out ran. So what you see on the balance sheet today, that earn-out liability actually goes back to the IPO. And that earn-out liability goes up and down based on our stock price. So it’s has nothing to do with the GeneSiC acquisition and is only related to earn-out related to the IPO.
Quinn Bolton: Got it. Thanks for the clarification, Ron.
Ron Shelton: Yeah, you bet.
Operator: Your next question comes from the line of Mark Lipacis from Jefferies. Your line is open.
Mark Lipacis: Hi. Thanks for taking my question. Clarification, a couple of questions, so to the question about the mobile strength, so it sounds like that this is penetration or expansion you expanding inside of product lines of your customers, and you haven’t yet seen broader handsets start to bounce up off the bottom. Is that an accurate interpretation of what you were qualifying for your growth in mobile?
