Angus Pacala: Absolutely. I think that the book-to-bill is such a strong indicator for the business. You’ll recall going back even to when we went public, we talked about the importance of building binding relationships with our customers, signing contracts with our customers, and we continue to do that and expect to continue to succeed. It’s better for customers to have visibility into their purchasing cycles, and it’s better for us in managing our supply chain and understanding where the business is going.
Kevin Cassidy: Okay. Great. And to just better understand the €“ getting the ASPs back up again, is that high-volume customers. Are you still €“ are they still going to be in high-volume in 2023 and you’re just getting more lower volume, let’s say, higher ASP, so the mix is bringing the ASP back up? Or is that high-volume customer one-time shipments?
Angus Pacala: It’s really a mix of both. And we have €“ things are €“ there is some volatility in ASPs, and we saw that through the quarters last year. There are the seasonal effects of Q4 in our business. We generally see higher volumes with slightly lower ASPs. It was a little more pronounced this year. But yes, I think that there is not too much to read into. We have high-volume customers that are purchasing in all the quarters through the year.
Kevin Cassidy: Okay. Great. Congratulations on getting the merger done.
Angus Pacala: Thank you.
Operator: We will go next now to Richard Shannon of Craig-Hallum.
Richard Shannon: Hi, guys. Thanks for taking my questions. I guess my first one is for Mark here. Maybe give us some thoughts here how to build the cost model and cost structure. But just want to ask a direct question here of how you see your breakeven model from a gross margin, OpEx point of view.
Mark Weinswig: Yes. I appreciate the question. And Rich, I can tell you that we’ve been focusing probably more time on that topic than on any other one. I can tell you that we are in the process of kind of building out our long-term modeling plans to make sure that we can take into account the combined company. We obviously have €“ just 40 days ago, we obviously changed the entire dynamics of the organization with the combination. And obviously, we are very excited about that. In terms of kind of the near-term outlook, we are really focused on that $75 million of cost synergies. We have €“ we went into the merger with that on our mind. We have really put a lot of effort onto it. We are very happy that really in just the first two months, we have already been able to obtain roughly 65% of those cost savings on a go-forward basis.
And we expect to continue to really drive the cost down from €“ as committed to in the merger agreement and continue to actually see additional opportunities to lower the cost structure from that perspective. In terms of the long-term business model, I mean we are doing a lot of work on the manufacturing side. Angus talked about it a little bit before. I also had in my prepared remarks, which is this move of some of the historical Velodyne products over to Thailand to really increase margins. One of the things that Angus mentioned in his remarks was that the merger allowed us to actually expedite some of that work. And you are going to start seeing more and more of the Velodyne products manufactured overseas, which should allow us to start to increase margins.
