Gregory Woods: The other product lines that weren’t effective like that are doing fine. Go ahead.
Unidentified Analyst: That’s great. That’s okay. Okay and if the problem — if the product we had, the problem that we had, came from one of our suppliers, are we seeking compensation from that supplier?
Gregory Woods: Of course, and that comes in different
Unidentified Analyst: Okay. Well, I’m, well, how is it going? I mean, are we in negotiations, we have a lawsuit. What how does that look?
Gregory Woods: No, no, it won’t be a lawsuit. We’ve got a mutually agreeable way to work our way out of that with, I don’t want to get into details of it because it is not public, but yes, it will help as we go into FY 2024, let’s put it that way.
Unidentified Analyst: Okay, great. Well, thanks much and good luck.
Gregory Woods: All right, thanks, Tom.
Operator: And with that, our next question comes from George Melas with MKH Management. George, please go ahead.
George Melas-Kyriazi: Thank you. Good morning, Greg and David.
Gregory Woods: Good morning George.
George Melas-Kyriazi: My line of question was very much, good morning, was very much along Tom’s question on revenue in the PI segment. So I think you answered some of that, but maybe I can ask you just a few little bit more details on that. You said there was a problem with ink and when did it start?
Gregory Woods: It started well a little bit actually at the beginning of last year, but it became a bigger issue about the middle of the year.
George Melas-Kyriazi: Okay.
Gregory Woods: Yes, and then we deployed our, go ahead.
George Melas-Kyriazi: Yes, because I mean, I think I mean, I do the same math as Tom, right? So revenue was roughly flat. But then then if you take out the contribution from Astro Machine, the EBIT was down quite a bit. So just trying to understand, did you have, did you have extra cost and less revenue because of the problem?
Gregory Woods: Yes, it hit us in a couple different ways. So well actually probably three ways. So number one, the machines that are impacted don’t run or don’t run as often, right? So you’re getting less revenue and that’s kind of typically the ink and supplies, which are higher margin product for us. And then you have the issue of having to spend test — basically our technical support teams have to go out and repair these, because we do warrant the products that we sell through to our end customers. And then you have essentially the costs of those supplies that go out there. So it ends up as a warranty expense and extra technical support costs for us to do these changeovers.
George Melas-Kyriazi: Okay. And then you’re probably going to have that in the, okay, but can you say sort of how much was the warranty expense in the year and in the quarter?
Gregory Woods: Yes, I don’t think we divulged that specific number.
George Melas-Kyriazi: Okay.
David Smith: It was significant.
George Melas-Kyriazi: Okay. And when you say you’re halfway through it, does that — that seems like a long time to solve the problem because if it started like at the beginning of last year, I mean, that has run through at least 12 months, right? And so help us understand sort of how a problem like that gets solved.
Gregory Woods: Well, first of all, you’ve got to, it shows up, you see a few issues in different locations for different reasons and it’s the issue really is getting to the root cause. So you chase down a variety of different, it wasn’t as simple as, oh, it’s just changed this and then it works instantly. So yes, the technical teams, both from the supplier as well as our own teams had to go through a lot of diagnostics to figure it out. I’m please just say they did come up with a solution, but now we, it takes time to implement it because you’ve got to get, it requires a physical change, kind of a flushing of the machine basically to make it as simple terms and then change out a couple of components. And when once we do that, they work fine. But yes, we have several hundred machines in the field, so you can’t do them all instantly.
