Marc Marquez says his Honda MotoGP team has made a "big step" with this year's electronics after the second day of testing at Phillip Island.
But the two-time champion has warned that, given the nature of the circuit, it was important not to get carried away.
Honda struggled with its electronics settings in the first test of 2016 at Sepang, with its engine delivering the power in a very aggressive way that made life hard for the riders out of slow corners.
While Marquez, second quickest in Thursday's session, admitted things have improved significantly, he concedes there is still a long way to go.
"I know that the level is there and we are working hard and we did a big step with the electronics," said Marquez at the end of the day.
"At least now we have a base on which we can start to work, because in Malaysia we were completely lost. We did a good job but we still must work hard.
"And the thing is that this circuit is special. I mean we must be careful because here it's third and four gear corners, high speed, and last year we already had problems so we must be careful with all these things and maybe we arrive in Qatar and what we have here doesn't work."
He added: "The engine here looks okay, but where we have the problem is the tight corners and under big acceleration like in Malaysia. And here we don't have those kinds of corners, so it's working well."
The Spaniard also said he still needs to find the right balance to feel 100 percent comfortable on the bike with the Michelin tyres, as the higher grip they provide does not suit his style.
"With the Michelin tyres we have more grip and it's more difficult to slide," he said.
"It was easier for me to slide with the Bridgestone and to find the best line. But I think we can improve the balance of the bike and we can adjust."