Philip Shen : Yes, that is a great color, so thank you. Shifting to the implied Q4 EBITDA margin, was wondering — you may have touched on this earlier as well with international being maybe a bit of a drag, but was wondering if you could give us some more color on the implied Q4 EBITDA margin, which seems closer to 13% versus Q3 of 16% in the first half of 20. What’s driving that, and would you expect a recovery back to either 16% or even 20% in the first half of next year? Thanks.
Nipul Patel : Yes. Hey, Bill, I’ll take that one. So the implied EBITDA margins really related to the gross margins that we talked about. We had some projects that were going to deliver in the back half of this year, finish up the projects in the U.S. from our STI division there that were going to finish up, and they were lower than our expected margin rate. And we had a project or two related to the Array side, which we had signed a while ago that we knew that was going to be a little bit challenging on the margins. So similar to what we had said in Q2, those will still deliver here in Q4, providing the lower than expected gross margins, and therefore dropping down to the EBITDA margins.
Philip Shen : Great. Thanks. And so I know you don’t have guidance for the first half of next year, but would it be fair to presume that after these projects are taken care of, we get back to the normalized, call it 16% to 20%?
Nipul Patel : That would be our expectations, yes.
Philip Shen : Okay. Thank you very much. I’ll pass it on.
Operator: Thank you. The final question we have comes from Sean Milligan from Janney. Please go ahead.
Sean Milligan : Hey, thank you for fitting me in this afternoon. Just wanted to touch base on the new products, H250. I think you quoted over 6 gigawatts in various, like, bidding stages globally, and then OmniTrack also, I guess for both of those, you talked about pretty robust bidding. Curious, in terms of, one, do you view that as an incremental opportunity for you relative to, like, where you would have bid DuraTrack before? Just kind of maybe could you address, like, what the TAM is for that in terms of gigawatts? And then two, like, are those bids for 2024, 2025? How should we think about that?
Kevin Hostetler: So, the first part of your question relative to, I think you’re asking how much of its incremental versus replacement or cannibalization. If you think about the Array OmniTrack, we expect that to be a part cannibalization of DuraTrack in a better fit product, but also lead to about a 10% increment in TAM. So, that’s kind of how we look at it from that product. As it relates to the H250 and the strong bookings that we’re seeing there, or the strong funnel, if you will, that we’re seeing there, there’s a portion of that that is replacing the old STI 250 where customers are just now saying, look, I really want that new product. I would have given Array the order previously for the old version, but I really want that.
I was just recently in Brazil where I was in the room where we were talking to a customer that was placing a very large order who demanded that they get all new product as quickly as possible, right? So, I think a portion of that will be incremental and a portion of that will be replacement, but I will say that’s replacement at accretive margins to the product that’s displacing. Hopefully that’s helpful.
Sean Milligan : That’s helpful. And then kind of the second part would just be in terms of the bidding that you talked about in the 6 gigawatts, is that for 2024, 2025, how can we think about that in terms of timing potential?
Kevin Hostetler: I think it’s split. There’s at least half of it that I would say is really about 2024, and then there’s another large multi-year VCA, if you will, that would cover two years. That’s a big portion of that 6 gigawatts as well. I would say it’s largely 2024 with a portion of 2025.
Sean Milligan : Okay. And then just to, in the first response, you mentioned kind of the margins being accretive to the legacy product on 250. Are they in line with, like, corporate margins where you’d expect to see those shake out?
Kevin Hostetler: Yes. I mean, what you’ve seen, if you just look at the gross margins of the STI business, and certainly in this quarter, we’ve been focused on the recovery of the STI gross margins. I think that focus over the last year has gone very well. They are back to pre-acquisition gross margin levels. So we’re quite excited about that. And as we launch the new product, that’s, again, a product with really good gross margins for us as we go forward. So I think we’re quite satisfied there.
Sean Milligan : Okay. Thank you for fitting me in this afternoon.
Kevin Hostetler: Absolutely, Sean.
Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. This concludes today’s conference call. You may now disconnect your lines. Thank you for your participation.
