So, and then turning to your second question on the reduced capacity with regard to the R&D resources, I think we have also mentioned in our prepared remarks, we have actually looking at how to optimize our R&D efforts. For example, in the past, since we don’t have €“ before we had Zepp OS, each and every product we need to kind of engineered separate software platform for it in order to tell the €“ our smartwatches. And now with Zepp OS, we can apply a more platforming approach with less people in order to deliver a high quality product, right. And we are also trying to streamline our operations to try to generate more efficiencies on applying a so-called in working out our R&D projects and our new smartwatches. So, I think that’s why at reduced R&D spending level we’re able, we believe we’re going to churn out a same quality of R&D efforts or even more with reduced sales force workforce.
I think that’s in a nutshell what we’re trying to do. I hope those gave you a flavor on what it is.
Clive Cheung: Yes, very clear. Thank you, Leon.
Operator: The next question comes from Lisa Lee with . Please go ahead.
Unidentified Analyst: Hi, management. Thank you for taking my question. I just have one question. You mentioned further cost reductions going forward, can you please elaborate on your measures? And how should we think about €“ how should we quantify further cost reductions in the fourth quarter and next year? Thank you.
Leon Deng: Thank you, Lisa. I think we have identified a few areas to streamline our costs. Number one is what I just mentioned in the area of R&D, we’re trying to apply a so-called platforming approach and the to make sure that we can, kind of realize the similar goal with a reduced workforce, right. Number two is on the sales and marketing expenses part. We are trying to look at the return on investments on our marketing investments. For example, if we’re going to a sports activity, a marathon for example, we want to look at the return on investment very closely to make sure that we’re just €“ we’re not investing on certain things just for the sake of investing on it, right. And also, we’re actually looking at the channel performance in different offline channels, to trying to see what type of products we should sell in which channel and then try to get the best return out of that.
And the third one is on the G&A expenses part. We are practically looking at where we can save and what we can leverage more from either third-party services or looking at whether or not we could streamline the service and actually prioritize certain request opportunity rather than the others. So, I think to answer your question, we are currently standing at operating expenses overall of 300 million per quarter. And then we €“ in Q3, this includes a 10 million severance cost. So, basically, if you strip that one out, at 290 million kind of operating expenses level for Q3. And in Q4, we’re more looking at streamline the cost base towards the 250 million level. And hopefully that will be a first step and then going into next year, we’re going to proactively check the cost base and see if we need to reduce the cost base even further if the macro environment is now improving.
Unidentified Analyst: That’s very helpful. Thank you. I actually have another question. Can you also give us some guidance on your gross margin going forward?
