Jim Kempton: Yes. From a gross margin perspective, Jim, it’s really driven by scale in terms of the revenues coming down, to where we have certain fixed costs embedded in the cost of sales that are impacting that. Now, the second part of your question in terms of like costs coming out related to the platform that is correct. In future periods, we are driving out some of those legacy ring costs. And they will not fully be out in Q1. That will be coming out over the course of Q1. And some will even tail into Q2. And then we would expect to have them completely out of the cost structure by the end of the second quarter.
Jim McIlree: Okay. That’s it for me right now. Thanks a lot.
Bill Smith: Thanks, Jim.
Operator: [Operator Instructions] Our next question comes from Scott Searle of ROTH MKM. Please go ahead.
Scott Searle: Hi, good afternoon. Thanks for taking my questions. Maybe to dive in on Europe, I just wanted a quick clarification in terms of the Tier 1 customer that has already been won. Is that SafePath global, or is that more of a traditional SafePath solution? And then I was wondering if you could elaborate a little bit more on the pipeline. Bill, it sounds like you’re optimistic about some of the opportunities there. I was wondering if you could give us an idea about where you’re seeing the strength. Is it other Tier 1s? You’ve called out that SafePath global is really targeted at Tier 2s, Tier 3s. Is that where you’re seeing the strength? And do you expect to have announceable deals and other launches in the 2024 timeframe?
Bill Smith: Okay. Let’s start with your last question. Absolutely, yes, I expect that we will be making additional announcements at existing, and new carrier customers about many of the products that we’ve talked about on this call. As far as the SafePath global part, the European customer is not launching SafePath global. And as I said in my comments, we pretty much know who the first customer will be for SafePath global. And we also believe we have a really good idea who the first customer will be for SafePath premium. So, that ought to give you some idea that there are other players. From a standpoint of the type of carriers, it covers a broad swath. We continue to focus heavily on the Tier 1 carriers in North America as well, as in the European marketplace.
But we’re also seeing activity from Tier 2s, Tier 3s, and from some really impactful MVNOs. So, I think what is happening in this world, I’ve talked about it on previous calls, we are just in the right spot at the right time with all the turmoil and all the chaos that you see around the world today. The need to keep our loved ones safe is becoming really a major driver. And a product like SafePath, which is designed to help do that, really tends to benefit from it. So, there’s a lot to be excited about. Some of the new product ideas, are really quite innovative. And with the SafePath OS, carriers will be able to launch kids’ phones and kids’ tablets, which will not require anybody, to buy a different brand phone. It can be a brand phone that the carrier already sells, but it will come preloaded with SafePath OS, which will then just out of the box make everything work.
There’s nothing that has to be done to get the thing up and running. This becomes an exciting market, as you see kids growing and they get their first phone. And this is when parents really have to take a moment and they go, wow, now I’m exposing my kid to all sorts of things. I’m really not sure I really like that are on the internet. So, now I better figure out a way to keep them safe. Well, in this case with SafePath OS, they can get a tablet, which may be the first device, or a phone, and they can have it preloaded. And all the safety features, are there from the minute you power up the device the first time.
Scott Searle: Hi Bill, maybe to just follow-up on that front, specifically in Europe, what does the competitive landscape look like considering that there are additional security requirements and privacy requirements, particularly around young adults? Does that change the competitive landscape in the European theater, or are there no competitors on the front? And then just a quick question on pricing. I assume premium pricing will have premium pricing, but SafePath global, is that the expectation that’s going to price in the same range of what you’re seeing today or how are you thinking about that?
Bill Smith: Okay, let me parse it apart and then come back if I missed one. First off, the global product will price exactly the same price, as the current SafePath offerings. The premium product will price at a premium price. So, that gives both the carrier and Smith Micro an opportunity to enhance revenue. You packaged up an awful lot of questions.
Scott Searle: Just the competitive landscape in Europe, given what you had to do to SafePath 7 and upgrade the security features, you’ve mentioned a couple of times about cyber bullying. I’m just wondering what is the competitive landscape in Europe right now? Because it sounds like you check all the boxes. Is there anyone else who’s able to do that?
