Rick Neaton: Congratulations, Brian and Elias, on a record quarter. It’s been a long time coming. I wanted to ask you a little bit about the second aspect of the rad-hard contract. For several quarters, you’ve talked about the contract having the $72 million possible revenue flow by 2026. Does that number include revenue flow from the second foundry?
Brian Faith: Does the revenue flow through in the 72 million?
Rick Neaton: Does the $72 million just include SkyWater, who’s your foundry partner? Or does it include more than SkyWater, the second foundry?
Brian Faith: It would include more than just the SkyWater foundry which was the first foundry that we announced back in August of last year.
Rick Neaton: Okay. I just wanted to get a better understanding of that, whether SkyWater only was part of the $72 million possibility. Okay. And that dovetails into whatever has been said at its conference call. Secondly, so what you’re saying with your smartphone customer is you now have an extra year of visibility into one more year of design-ins of QuickLogic products into that company’s smartphone family. Is that what you’re saying?
Brian Faith: We do. We have meetings with them about once a quarter at the management level for planning and visibility purposes. And the net of that is, yes, we see the horizon pushing into 2025 now for when we’ll be continuing to ship EOS S3 devices. And I think the other aspect of that, like I said earlier, is just that we were seeing their inventory that they took on earlier in the year being digested to the point where we’re seeing increased backlog and shipments for this quarter over last quarter. So I think we sort of turned the corner on their inventory digestion, so we can project into 2024 to be a bigger year revenue perspective-wise for smartphones for us than 2023.
Rick Neaton: Okay. In terms of the sales funnel and the quantification of the $162 million, does that include any expected product sales from storefronts in the future from your storefront operations? Or are you just talking basically eFPGA IP license and royalties in that funnel?
Brian Faith: So on the commercial side of the funnel, there are some device opportunities in there that we would be under the storefront but it’s — I would say it’s not the lion’s share of that. And that would still be within sort of this 2-year horizon that we have on the sales funnel. It does not include anything from like a defense storefront perspective because frankly, if I added that number to it, you would probably say, Brian, you’re crazy, you can’t say your funnels $500 million now. So we’re keeping those things out of it for now. And any device storefront is related to either the mature antifuse devices that we can sell immediately off of inventory or some of the commercial device business we have on EOS and that’s any of the defense storefront stuff that’s more than a couple of years out is not included in that number for the reasons I just stated.
Rick Neaton: Okay. So you’re not — we shouldn’t expect defense storefront revenues before 2026, then I would assume based on…
Brian Faith: Yes and no. So if it’s defense storefront for devices that are getting designed today like this government contract, then I agree with you, we’re not going to sell devices until the contract is done from a development perspective and we said that, that’s like 2026 onward. If it’s defense storefront for, again, standard products that we have today or those types of devices, then yes, it could happen before that because we already have devices, we’re not designing it. We’re just designing them in which is a very different task for the customer.
Operator: Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the call back to management for closing remarks.
Brian Faith: I want to thank you all for participating in today’s call and for your continued support. We look forward to speaking when we report our fourth quarter fiscal 2022 results in late February or at some of the conferences we are attending over the next few months, including in person at the Craig-Hallum Alpha Select Conference which is being held on November 15, 2023 and November 16, 2023 [ph]. On December 11, 2023, we will be at the virtual Oppenheimer 5G Conference and the Needham Conference in early January 2024. Thanks again and have a great day. Thank you.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
