Daniel Baker: It’s both. I might put a little color on the second point, which is that we quote lead times. So we quote lead times that allow for us to test the parts. So having more equipment allows us to quote shorter lead times. So we think that, that’s important to many customers. To your first point, with supply shortages and the supply chain challenges that have been well publicized throughout the semiconductor industry, many companies are looking for domestic suppliers and onshore supply. So there’s been a lot written about that. And of course, the priorities that have been set domestically by the CHIPS Act and other actions that encourage domestic supply of semiconductors. So, we’re proud to be a part of that. And some of these investments may benefit from those incentives.
And we do have customers that ask us about security of supply and being able to tell them that our back-end operations and much of our front-end operations are here in the United States. That is important to some of our customers, and that’s a competitive advantage.
Jeffrey Bernstein: Great. Thank you for that clarification. And so I’m going to jump off and let somebody ask some questions. So I may come back with some more
Operator: Our next question comes from the line of Andrew Bell with Shores Edge Financial. Your line is open.
Unidentified Analyst : Hey, Dan, this is . I’m sitting here with Andrew from Shores Edge. Congratulations on a great quarter, and congratulations on being included in some really important space missions. That sounds very exciting. I had a question about the receivables and the inventory and kind of the dichotomy here. So your receivables are really kind of very much on the low end, and can you provide some color around that, that your sales have been quite high these last two quarters, but the receivables are going down just seems unusual. Have you changed anything as far as customer payment requirements or how you bill and ship or requiring prepayment? Or is there something else going on there?
Joseph Schmitz: This is Joe Schmitz. I’ll address the question, and thank you for noticing that. Our accounting team has taken a lot of pride in that result this performance or this quarter. I would say there’s really two pieces to that. Typically — well, first of all, I should back up. We — our terms have not changed nor has the mix of customers change to the point where the days sales outstanding would significantly change. What you’re seeing there is the result of a lot of good work to diligently pursue accounts that are trending towards past due. And then you’ll also — and then also, this quarter, if you remember — if you recall from last quarter, where we had a high level of anti-tamper, big project-related sales, I mean, we got collection on a lot of those outstanding receivables this quarter.
So that is also a favorable outcome. But I just want to compliment my team on the work that they did to help us keep in front of this. There’s just a lot of good work that happened there. In most other applications, I would say I would see inventory as a drain on working capital. In this particular environment, at this particular time, that helps us reduce our backlog, serve our customers faster. And I see that as a healthy thing for our business at this point in time. And I would not say that it’s not coincidental that we try to find a way to fund our working capital without having to dip into the bank account, so to speak. So they are related in that context.
Unidentified Analyst : So as I understand you, the inventory increase is really about making sure you don’t get caught with supply chain shortages and getting — and just having adequate parts on hand to be able to provide quick turnaround time. So maybe part shortages are a big deal, right? So like if you don’t have something, you might not be able to get it for some number of months is what I’m thinking about?
