Eric Brock: Sure. So we’re going to hear — So we are at the moment is getting back to the rail, want to highlight that we are planning now with Siemens and the customers for 2024 so. It’s a little early for me to be able to kind of give you some specificity around this on a drone side, we have a pipeline of we’re going to be expected to continue Fleet expansion in the UAE. As you know, we’ve also established some other partnerships with local partners in India and now Morocco as well as Saudi Arabia so we think we’re going to get traction there. And then, of course, with the maturation of our pipeline here in the United States, we’re going to see significant growth. So we’ve said in the past that we expect to be able to double our revenue across the businesses next year.
But I know I’d like to think that we can do even better than that. So, — but we’re going through the proper planning. And when we’re ready probably early next year, we’ll put more and more details around that. In terms of margins, we’re still look at our business for these technology platforms is providing a very attractive margins at these low volume levels. You’ll see some lumpiness. Our margins were down this quarter and to give you a sense. Is that a little bit more color on why, as I highlighted, we have sort of its kind of a fixed level of costs at the OAS business unit for field service operations. So we have people in the field who are tasked with from serving customers and also growing the business. It’s debatable whether this should be cost of sales or SG&A, and it will look at that next year.
But we had a cost or related to that sort of service operations in the field. And that was relative as compared to a very low revenue quarter for the drone business. So now when you look at the margins in the next year and beyond, we’re targeting at least 50% and as I believe as we get volumes and operating leverage, even on the gross margin line, we’re going to see some expansion from there.
Timothy Horan: Thank you.
Operator: For the next question will come from Matthew Galinko with Maxim Group. Please go ahead.
Matthew Galinko: Hey thanks, — Thanks for taking my questions. Can you touch on Stewart mentioned a opportunity to provide turnkey service to a Class I Rail around the 900 megahertz on deployment. Can you can you go into a little bit more detail around why that became a direct engagement and how that changes the scope of what you’re delivering?
Eric Brock: Sure. Actually, Stewart, I’ll let you take that.
Stewart Kantor: Sure. So what we’re starting to see is, as we’re getting closer to the deadline, the customers are looking to some of our expertise and deploying wireless network. So I would not say that it’s a solid trend right now, but it does open up new opportunities. And what we see also is their confidence in us is growing in terms of our capabilities, where historically a lot of the rails have managed tightly. And internally. They’re deployment processes, but we’re starting to see trust in our ability to assist and accelerate the deployment. So we think this does represent a new opportunity. We’re not forecasting it heavily at, but we do think it’s showing additional confidence in our capabilities.
Eric Brock: Yeah, I’ll amplify that. That’s a great point our expertise, as I alluded to, there’s a lot of complexity in terms of migrating while the trains are still running right migrating from legacy technologies, literally decades old to a new modern general IP network. And no, so it’s rightly saying the expertise we bring in their would demonstrate a daily basis is valued highly so that a minimum across the board will be strongly involved that advising and training folks, new systems and how we key deployments and operation of the network. But we are likely to be called on certain instances for even more significant services around that?
Matthew Galinko: Thank you. That’s helpful and then I apologize since it’s going to be a multipart follow up, but I think it’s all gone into the same point on you provide a little bit of color around the none — around the cash operating expenses, I think for Q4. Can you talk a little bit about again? I know I’m asking for color around 2024, but what can we kind of expect from Opex Looking into ’24 on by how do you think about can we kind of take your general gross margin run rate, supplier, Opex and sort of get to your burn rate? And thirdly, in reference to that opportunity on rail, around helping managing that complexity, is there a scenario where you’re staffing up around that time if it becomes more of a pronounced trend? Thank you.
Eric Brock: Yeah. Great question, Matt. So we’ll look at it a couple of different ways. So firstly, I’ll say our cash Opex, as we’re entering next year, shouldn’t be increasing dramatically. And we do believe we’re going to get a significant operating leverage across both businesses. Specifically around Ondas Networks, the operating leverage is going to be even more apparent because we’ve got a most of our FX that you see is really related to development of the technology platform and specific product segments in the railroad customers are desiring. And you know, to the extent we have to add more in terms of field service, as we were just discussing, that’s likely to be actually a creative to profitability because we’re going to be able to charge for those services.
So I don’t see a significant increase in Opex for Ondas Networks as we’re scaling with customers and generating revenue on the drone side, particularly with the US, you’ll probably see us expand. The team have built to service that growing business. But that’s not going to because you’re not going to be sort of a big shock to the to the headcount. For example, in advance, we’re going to be able to do that simultaneously and a lot of those field services actually can be contracted at least a transitional way with third parties on the are likely to see us actually establish the proper partnerships on the field services side for the OAS business unit.
Matthew Galinko: Thank you.
Operator: [Operator Instructions]. Our next question will come from Mike Latimore with Northland Capital Markets. Please go ahead.
Unidentified Analyst: Hey, guys, this is Luke on for Mike. Just wanted to touch on the $2.6 million to buy or are you going to be able to quantify how many units or how many drones this order was for?
Eric Brock: No, we’re not in where I guess I’ll say it is proprietary information for now. But I do think we’re getting into next year we’ll give you a sense as to what you sold basis. But I don’t want to kind of a public forum connect our pricing strategies, given the you know, all the customers we work with have to look at various levels of solutions. The systems are different so and I know that’s one of the summer services sums are somewhat purchases.
