Alex Henderson: Okay. And then going back to the balance sheet, your inventory is quite a bit higher than normal relative to your revenue run rate. Can you talk a little bit about how rapidly you can bring that inventory down? What do you think the risk is that some of that inventory might be obsoleted by sitting on the shelf for too long and kind of monetization of that? Obviously, you did a great job on the receivables here, but I think the inventories in the next piece of the free cash flow generation.
Liron Eizenman: So first of all, we believe that the inventory value is real value. I mean that’s – that we believe is high-quality inventory, and we’re monitoring it and it did decrease by $7 million this quarter. We believe it will continue to go down. I cannot give an exact number because I don’t know exactly what it will go down by. But yes, we expect it to continue to go down. And despite the fact that with certain customers, they’re not ordering as quick as they said that they will. They’re still ordering, and we believe they will continue to order in the future. And our purchases also from suppliers is obviously lower, and we’re not increasing our inventory as well. We will just eat our inventory and will continue to deplete it until we’ll be in a position that it goes back to a relatively normal size to our revenue business. But we don’t see a risk for that. We don’t see a risk for having that stock or something of that sort in significant value, not at all.
Alex Henderson: Okay. Great. I’ll see the floor. If there’s – if there aren’t any other questions, I’ll come back and ask some more, but give somebody else a chance if they’re in the queue.
Operator: [Operator Instructions] The next question is from Alex Henderson of Needham & Company. Please go ahead.
Alex Henderson: I didn’t know whether there would be anybody else there or not. So going back into the cost-cutting moves, can you talk about what you’ve done in terms of the timeline of the staff cuts? Are they all now completed? Were they in for the entire quarter? You know, how do I think about the degree to which that’s already in the first quarter and or alternatively, whether there’s still further cuts to come benefiting future quarters?
Liron Eizenman: So currently, so we completed the cuts that we wanted to do, right now, we’re not expecting significant cuts here and there, maybe, but not something that should impact the numbers significantly. The cuts were made during Q4. The full impact of them, I think, was completely realized in Q1. If not, then let’s say 90% or so. So with the numbers that you’re seeing right now, as Eran said earlier, is what we expect to see on the OpEx going forward.
Alex Henderson: Okay, great. And going forward, do you think that you’re done with anything else on the cost side that might be changing going forward, or is that the completion of all your intentions on that front?
Liron Eizenman: Can you repeat the question? I couldn’t hear it.
Alex Henderson: Yeah. Just to be clear, there’s no additional cuts or other things being contemplated at this point?
Liron Eizenman: No, not at the moment.
Alex Henderson: And then going back to the timeline for the year, assuming the back half is considerably stronger, do you still think you’ll be at the lower end of the gross margin band. You know, if you’re talking about a band of 27 to 32, should we be in the midpoint to the lower half of the gross margins even as we exit the year because the baseline is so, so much lower than normal?
Liron Eizenman: Yeah, I think that’s the first assumption. I think that’s pretty much where we find ourselves.
Alex Henderson: Okay. And any thoughts on the tax line, whether that will be something that you’re still paying out, or do you think there’s any opportunity for that to zero out because of the very low level of profitability?
Eran Gilad: Assuming 2024 will not be profitable, we expect annual income tax of approximately $0.5 million.
Alex Henderson: Okay. So pretty much similar to the first quarter for the year. Maybe a little larger?
Eran Gilad: The first quarter was lower than the expected level due to one time reasons. So I repeat, it should be approximately $0.5 million for the full year.
Alex Henderson: That’s better than the million plus we had in our model. So that’s what I meant. Okay, great. I’ll see the floor. Thanks.
Operator: The next question is from Don McKinnon of Landlocked Securities [ph] Please go ahead.
Unidentified Analyst: Yeah. Thank you. I think earlier in the call you mentioned a couple of maybe larger deals you’re working on. My question is, are these old deals that have come back, or are these new opportunities? And if so, can you provide some color on that? Thanks.
Liron Eizenman: I’m not sure which business you’re referring to that we worked on. Maybe you can clarify the question a little bit more.
Unidentified Analyst: Well, yeah, well, I guess you mentioned some larger opportunities, I think at the early part of the call. Maybe just provide some color on that.
Liron Eizenman: I’ll try. I hope I’m aiming for what you’re asking for.
Unidentified Analyst: Okay, sure.
Liron Eizenman: So we, I mean, we changed a little bit of our methodology in the cells [ph] I think, for, if we’re talking about design wins that we already achieved and that are ramping up slower than we expected. I think I touched on it a little bit on Alex’s question. We think it will ramp up. The ramp up will continue from our perspective, let’s say, in about a year. And if you’re talking, maybe you’re asking about the two products we discussed that we’re developing or product families that we’re working on, and we believe that those will be something that could be significant for our customers and for us as big revenue projects in the future. Right now, we prefer to kind of stay still in stealth mode a little bit with regards to them.
