Brian Faith : Most of that is IP license and device revenue. There is some service, I don’t recall the exact percentage, but it’s the lesser of the three categories you just mentioned. And I just, by the way — I’m not going to get in the habit of breaking out down to that level of granularity in the funnel on every call. That’s just too much to track and put forth. But I think the bottom line is that the lion’s share of that funnel is represented by IP licensing and device shipments, not services. To be very clear, we’re not trying to become a services company. We’re monetizing our services to generate IP licenses to get into the royalty stream and to do customer funded development for devices that we could be the storefront of, because that carries such a higher gross profit dollar component than even a royalty would be in the future.
And I think that best positions, QuickLogic for delivering a lot of sustainable high value revenue potentially decades into the future, just to be clear.
Rick Neaton: You mentioned a couple of specific opportunities, in doing so you talked about royalties in the future. When can we expect royalty revenue to begin on those particular items you spoke about?
Brian Faith : I do think we’ll start to see some royalty in 2023 as some of the earlier licenses that we talked about last year, in fact have gone through some development with the customer. In fact, one of our customers just received some test chips back from one of those IP licenses. So, that means they’re probably a couple quarters away from actually starting to take that in volume, but that’s the point at which that we would start to see royalty. So some point next year.
Rick Neaton: When you gave your outlook — general outlook target of 40% growth for next year, in looking at that are you — in looking at how your business is developing, are you seeing any elements of seasonality in this business as it evolves or are you seeing in your forecasts, more and more stability in your revenue flows arising in €˜23 and beyond?
Brian Faith: Well, I definitely see there’s more stability coming from these contracts that are longer term in nature. That does provide us a lot more visibility. So it’s revenue layering on revenue, not just one shot and done each quarter. I think the market that still has seasonality to it is the smartphone market. So as long as we are selling into that market, we will see a little bit of that. But like I said on the call, I think, that’s going to start to become a lesser and lesser percentage, which is a good thing, right, to get more of these longer time in revenue, higher gross margin wins is actually a good thing. So, I don’t really see a seasonality to it yet on these new wins very much.
Operator: There are no further questions. I would like to turn the conference back over to Brian for closing comments.
Brian Faith: I’d like to thank everybody for participating in today’s call and for your continued support. We look forward to speaking with many of you again when we participate in upcoming investor events in November and December, and when we report our fourth quarter and fiscal year 2022 results in February. Have a good day. Thank you.
Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
