I think that that’s going to continue to grow and show more and more of it in our backlog. The biggest beneficiary so far has been our small UAS with Puma AE and Puma LE systems, which is, by the way, the workhorse of the U.S. DoD’s assets that they have given to Ukraine. We are told that every weapon system the U.S. DoD has given to Ukraine has one of our Pumas or Puma LEs lying in front of them. So, it is the workhorse of Ukraine conflict against Russia and their defenses. It scouts targets, it sweetens targets for HIMARS and other weapon systems. It then actually helps them to shoot it. And then once it’s done and it does with battle assessments. So, variety of different missions have been achieved by Pumas and Puma LEs very effectively and very cost effectively for Ukraine and for U.S. I think that trend is going to continue.
I think we’ve only seen a small portions of that reflecting on our backlog so far and more of that to come in the fiscal year 2024 and beyond.
Kevin McDonnell: And the recent announcement is not in our backlog.
Wahid Nawabi: None of the recent announcements, Pete, that you heard from the 24th of February is reflected in our backlog, neither is the Pumas, the Switchblade 300 and 600s or the JUMP 20 systems. All of those we expect to convert into backlog in the next one or two quarters.
Pete Skibitski: Okay. Yeah. I mean one-third to one-half implies a lot more to go it seems like. And just let me follow up on your comments on fiscal 2024 growth. A lot of people, I think, believe we could have a full year CR for DoD in the government fiscal 2024 or at least an extended CR. Is that factored into your thinking — your double-digit growth thinking for fiscal 2024 and does that matter — does that potential long-term CR matter less given you’re ending backlog here, funded backlog?
Wahid Nawabi: So, Pete, CRs always do matter to some extent. But given our backlog, our backlog at the end of Q3 was over $400 million. Same time last year was much lower than that, significantly lower than that. Even last quarter was about $293 million at the end of Q2. So, we’re talking about almost the two times increase in our backlog compared to third quarter of last fiscal year. Going into fiscal 2024, that gives us a lot of confidence in our ability to be able to achieve that year. Obviously, the big factor is going to be supply chain and availability of products and lead time of components. But overall, I think that the CR should — always has some impact, but not as much to our business as other businesses. There is — like I said, one is the backlog reason.
Another reason is the fact that the system is a high priority and high urgency for both U.S. and Ukraine, and I don’t see that actually decreasing over time, whether there is or there isn’t a CR in general. I think that the macro level demand drivers for our business is very, very healthy. And let’s not also forget, vast majority of our sales now — shouldn’t say vast majority, a significant portion of our sales come from international demand, both for small UAS as well as for now Tactical Missile Systems as many countries that are interested in them. So, I think all of those combined, net-net, we’re going to — we’re looking forward to a really strong year in 2024 and even beyond.
Pete Skibitski: Okay. Great. Thanks guys.
Wahid Nawabi: You are welcome, Pete.
