Gene Sheridan: Yeah. It’s a good question, Mark. It’s clearly adoption or conversion from silicon is the main driver. I actually couldn’t quote or their total mobile charger shipments, probably Xiaomi and Oppo, of course, are in a better position to talk about, how much they’re shipping and where there might be a bottom overall, but we’re certainly the beneficiary of significant conversion from silicon to GaN. So it’s hard for me to quantify the two, but clearly, the predominant factor is conversion from legacy silicon over to our GaN ICs.
Mark Lipacis: Got you. Okay. That’s helpful. And is it fair to assume that that linearity of bookings that you’ve kind of ramped through the quarter? And is that fair? I mean, it kind of sounds like you guys are really hitting your stride here.
Gene Sheridan: What do you mean by linearity maybe? Or could you clarify?
Mark Lipacis: Well, if you think about what your total bookings are for the quarter, you could have a-third, a-third, a-third or it could have ramped 20/40/50 or something like that as 20/30/50 bookings ramping through the quarter?
Gene Sheridan: Yes. I mean I think it’s fair to say, while we started the quarter pretty heavily booked up, as Ron said, we — I also mentioned we continue to get sort of short lead time upside orders, especially from the mobile guys and they historically don’t give you a ton of advanced notice. But we’d certainly like to be more linear. So we’re building everything we can in the back of the quarter just because that’s when some of these upsides orders are also coming in early in the quarter kind of within cycle time putting pressure on us to try to ramp up faster.
Mark Lipacis: Got you. And then, Ron, you talked about the cash balance. How much cash would you — do you feel like you need to have on the balance sheet to run the company. Could you talk about appetite for further acquisitions going forward? And if so, what kind of is in your sweet spot? Thanks.
Ron Shelton: Yeah, sure. Good question. Well, with respect to the balance sheet and cash, clearly, we have enough cash and have been consistent to certainly run the business to operating breakeven and execute on our epi expansion that we’ve talked about before. I think beyond that, our need to approach the capital markets, raise equity or debt would be tied to a transaction such as an acquisition. So today, though, we feel really good about the balance sheet and where we stand with cash, no debt. I think we’re being much better with working capital and being efficient with working capital, certainly efficient with our CapEx. So — so we’re certainly comfortable with the balance sheet and where it sits today.
Mark Lipacis: Fair enough. Thank you.
Operator: Your next question comes from the line of Kevin Cassidy of Rosenblatt Securities. Your line is open.
Kevin Cassidy: Thanks and congratulations on the great results. And I came on the call a little late, so if I’m repeating a question, and I apologize. But have your costs come down as you’ve mentioned tripling the capacity with TSMC and then also there’s just lots of news in the press about silicon carbide wafer substrates coming down in price. Are you able to benefit from that? And is that helping gross margin expansion?
Gene Sheridan: Yeah. I think it’s certainly a driver. I mean we’re coming out of an environment where I think people are dealing with cost increases, right? What we saw TSMC on GaN and other places throughout the whole industry. So I don’t see reversing that dramatically that quickly. I think costs are reasonably stable. I think prices are reasonably stable. So I don’t think it translates into big gross margin jumps. I think where we can capitalize on cost reductions. Obviously, in-house epi is one example. The yield is getting a bit better than even we expected with the great yields that Ron talked about. We’re generally going to try to use that for better pricing power to drive market share and continue the great growth and adoption rates as a general approach. But with that said, we’re also committed to our margin expansion plans as we’ve always talked about, and we continue to balance the two.
