Unidentified Analyst: So as long as it keeps on going slightly less. Did I hear you right, is Zyfer all in New York now?
Thomas McClelland: No. No, that — sorry, for the confusion. Zyfer, a year ago Zyfer was split and the manufacturing was being done here in New York. The engineering was out at their facility in Orange County, California. And we’ve made the decision to move the manufacturing back where it was originally to the California facility. So that took place over the last — the last fiscal year. And that the move to do the manufacturing here in New York, we feel was a mistake, and it was to have the manufacturing separate from the engineering was problematic. And so we made the decision to move this back. And obviously to move both ways, we ended up back where things started, but incurred a lot of costs in the process. So it was costly, but I think the results at this point speak for themselves. I think we’re pretty happy that we did things, and it happened a lot faster than we originally expected.
Unidentified Analyst: All right. So that’s back in California completely?
Thomas McClelland: Yes.
Unidentified Analyst: All right. You said the R&D, some of it’s going to be paid [ph]. I saw your R&D went down and you started talking about that will probably go up in the next couple of years. Is that — is Frequency going to be paying that or external payers?
Thomas McClelland: Well, so we’re aggressively pursuing any development efforts that we can get funded externally. That’s the thing that makes the most sense for us as a small company. But we also anticipate that internally funded R&D is going to increase over the next couple of years.
Unidentified Analyst: With revenue, so it would be — the percentage will equal out?
Thomas McClelland: Yeah, I think…
Unidentified Analyst: As revenue goes up, R&D will go up or the opposite? Maybe not exact timing, but they kind of in sync. And — I’m sorry?
Thomas McClelland: Yes. I think that’s a reasonable assumption.
Unidentified Analyst: Okay. And how many employees do you have at this point? Roughly.
Thomas McClelland: I think we have roughly 180 employees, overall.
Unidentified Analyst: Yes, overall.
Thomas McClelland: Yes.
Unidentified Analyst: And final question. You last quarter, you talked about GPS III and IIIF, I think there were two units that they — I think one, they were testing and one was the live test with the National Research Laboratories. How is that coming along?
Thomas McClelland: So the testing was supposed to take place at the Naval Research Laboratory. That’s still going to take place but the government funding to support that testing isn’t going to be available, at least that’s what we’re told, until roughly the end of this calendar year. So we have agreed to — we’ve agreed that we’re going to keep the unit here at FEI and do some testing in vacuum simulating the space environment from now until the end of the year.
Unidentified Analyst: The calendar year?
Thomas McClelland: Yes, just to be able to get additional data on the performance of that unit.
Unidentified Analyst: All right. And those — well, I’m sorry, one thing. All the satellite programs you talked about, are we going to see that all at once in the backlog or just the pieces like we usually do?
Thomas McClelland: Well, it’s impossible to predict that exactly, where there are several major programs that we anticipate in the very near future. It’s conceivable that those could arrive almost simultaneously, but it’s also very conceivable that they could be stretched out a bit. It’s one of the frustrations, but the realities of this business that these things, they tend to stretch out in time more than we would like.
Unidentified Analyst: Yes. It’s basically out of your control when it comes in, it comes in, basically.
Thomas McClelland: Yes.
Unidentified Analyst: Thank you for your time. I appreciate. Great job.
