In another example, in the core router business, that’s very heavy on clocking and relatively light on oscillators. So, we have an opportunity for one oscillator, which we do supply, but there’s an opportunity for up to eight clocks that, distribute that are jitter cleaners, buffers and network synchronizers that are needed in that. And now we would have the opportunity to sell eight more chips in that one core router. And finally, in the data center, for example, in a server, we already have opportunity for oscillators, a couple of those. But now we would have an opportunity to sell up to four different kinds of clocks in that market. So, these are three key markets. The first one was in the radio access networks. The second one was in the core edge and access networks, and the third one is in the data center.
So, we have really fulfilled our clocking opportunities and products not partially, but wholly. In other words, it allows us to compete with the other clocking companies, full front and center that have taken them decades to build these products. We’re able to do that overnight. It gives us a unique opportunity because, of course, none of those clocking companies possess the SiTime MEMS-based technology with all its superior attributes. So, this gives our customers a very unique way to come to us, to solve their entire clocking needs, entire timing needs. And we think that that’s a very, very important place to be.
Doug O’Laughlin: Perfect. Would this be like some kind of integrated package unit that would be sold as like one piece that contains, all these pieces of silicon and maybe versus another vendor, it’s an integrated solution?
Rajesh Vashist: Right. So first, as I said, it’s the first step would be for us to sell these products as is. So, we get quickly to design wins and in the market. The second one would be to do a virtual value creation. So two chips, not in one ship, two separate chips that are sold, particularly in connection with our Epoch product in connection with our Elite RF and Elite X products. But then the third time around is to do what we’ve already done with Cascade. Our Cascade family of products has an oscillator from SiTime integrated into it, and that’s been very valuable to our customers. We would do that for the plot generators, we would do that for the jitter cleaners, and we do that for the network synchronizers. So, it has the opportunity to take our product, ASP significantly higher and make our products significantly more valuable, either through the virtual integration or the actual physical integration, and we’re going to do both throughout.
Doug O’Laughlin: Perfect. Looking forward for the next call. Take care guys.
Rajesh Vashist: Thank you, Doug.
Doug O’Laughlin: Thanks.
Operator: One moment for our next question. Our next question comes from the line of Tore Svanberg of Stifel. Your line is now open.
Tore Svanberg: Yes, Tore at Stifel. Just had two quick follow-ups. First of all, Art, I noticed the DSO went up quite a bit. Is that, because of a revenue mix? Or are customers starting to ask for extended terms at this point?
Art Chadwick: No, it has nothing to do with customers asking for extended terms. It has to do with the fact that this particular quarter for a particular – some manufacturing reasons, was a little more back-end loaded. So when you ship more of your quarter near the back end of the quarter, it raises the DSOs, because you ship it and you can’t collect it within the same quarter. I expect DSOs would drop back to more normal levels in Q4.
Tore Svanberg: Understood. And my other follow-up, coming back to Aura. So it sounds like with the earn-out, the total cost could be as much as $268 million. You mentioned a potential $100 million business. So, I was just hoping you could share a little bit more on the math that the management team went through to determine this type of a price?
