Gregory Woods: Just Greg, I was just going to highlight something I said last quarter as well is that the — from what we’ve seen in the historical information from Astro Machine, their second half of the year tends to be stronger than the first half.
Thomas Spiro: I see. So if I were to look at the PI sales for the quarter of just under 26% and back out 5%-ish, PI is running well under where it was last year.
David Smith: It is running last year.
Gregory Woods: It’s behind where it was, yes.
Thomas Spiro: Yes. Okay. All right. This is most helpful. Thanks very much and good luck.
Operator: Thanks Tom. Our next question comes from John Dasha [ph] from Pinnacle. John, your line is now open. Please go ahead.
Unidentified Analyst: Good morning. Just a quick question on the retrofit expense, $852,000. That seems to be a supplier-related issue and I’m just curious, are they sharing in any of the cost of retrofitting the machines? And do we have any recourse against them?
Gregory Woods: Yes and yes, and it’s something that we actually announced that earlier. So there was a financial restructuring and there’s also some pricing concessions as well.
Unidentified Analyst: Sorry, I must have missed that. Where was that disclosed?
Gregory Woods: It was a year and a half David, two years ago? I forgot exactly what quarter that came out in.
David Smith: I can’t really…
Gregory Woods: Recognize what that was and there’s a limitation of liability per event in that particular supplier’s contract.
Unidentified Analyst: Limitation of liability. Okay.
Gregory Woods: Yes, to maximize the payouts on that. Go ahead.
Unidentified Analyst: Okay. I just got to say, so there’s really no recourse at this point against the supplier?
Gregory Woods: No, not for the amount that we reserved, no. Yes.
Unidentified Analyst: Okay.
Gregory Woods: Separate from that, longer term…
David Smith: The amount that we…
Unidentified Analyst: Go ahead.
David Smith: The amount that we have on the income statement is that we reported. This is the amount that will hit us.
Unidentified Analyst: Okay.
David Smith: If that’s helpful. If that’s helpful.
Unidentified Analyst: Well, I guess what I’m trying to understand, is the supplier matching that obligation? Or who’s on the hook primarily here, you or the supplier?
Gregory Woods: Well, it’s a shared amount, but we’re not — because of the negotiations, we don’t release the exact dollar amounts between the two of them.
Unidentified Analyst: Okay.
Gregory Woods: But we’re going to probably disclose what we’re reserving for.
Unidentified Analyst: All right. Thanks very much.
Operator: Thanks John. Our next question comes from Dennis Scannell from Rutabaga Capital Management. Dennis, your line is now open. Please go ahead.
Dennis Scannell: Yes. Good morning. Most of my questions have been answered. Just real quick, though. Maybe could you talk a little bit about the timing of the $2.4 million in savings, kind of how that will leg in over the next few quarters and kind of when you expect to be realizing the full benefit of the realignment actions?
Gregory Woods: Yes. So as far as the $2.4 million, that’s what we expect to get on an annualized basis, but it will take a little bit of time to ramp up. So it will ramp, but it’s not really back-end loaded. It’s just that there’s kind of a startup going in Q3 and Q4 to get to the full amount. But we fully expect to hit it within the 12-month period in the fourth quarter. And then it’s an ongoing benefit, of course.
Dennis Scannell: Right. Yes. So annualized full benefit in fiscal ’25, then? Is that your January ’25 fiscal year?
David Smith: Certainly. Yes.
Gregory Woods: Probably also in the next four quarters.
Operator: Thanks, Dennis. We now have a follow-up question from Samir Patel from Askeladden Capital. Please go ahead when you’re ready.
Samir Patel: A couple of follow-ups. One is you didn’t talk, unless I missed it, about the e-commerce site, just kind of any early briefings there?
Gregory Woods: Sure. Yes. So we continue to add customers there. So that’s — I don’t if you’ve been on it and off, but there’s more and more things getting added to it and linked into it. So that’s growing. We’d like to see it grow a bit faster, but it’s more an uptake, and we’ve got our customer service people, whenever they’re talking to our customers, we encourage them to use it. But we also picked up a fair number of third party — call them third-party customers, where they bought a printer from somebody else, but they’re buying label material from us via the e-commerce site. The other benefit, Samir, from that is we’re seeing a nice uptick in our Internet marketing results, getting higher up in search and a higher number of inquiries.
