So, many of our long-standing great utility distributors have been really positive about feeling like they know how to sell this immediately to customers that we already have. So that’s not usually the case within the water industry, but with Syrinix, it’s a lot closer to the center of what we’re doing and how we talk about AMI and real-time information within the market. But do keep in mind, it is small, but there’s a lot of excitement around it. And as we’ve talked about before, small deals for us are certainly not viewed as a bad thing, because it takes a while sometimes to get the leverage, but when we do, it’s very good.The other thing that we’re really excited about Syrinix is now if you take our BEACON software platform, which was built on AMI, and now since we acquired s::can and ATi, now we can leverage in the water quality information.
And now with the fully-developed RADAR software that Syrinix — that we acquired with Syrinix, we’re now giving utilities the opportunity to monitor all three of those in one software platform, which is something that our customers are finding very valuable.Rob Mason Very good. Thank you.Ken Bockhorst Thanks, Rob.Operator Thank you. And the next question comes from Tate Sullivan of Maxim Group. Please proceed.Tate Sullivan Thank you. Ken, sticking with the demand from utility customers in the U.S. for real-time water quality monitoring, is it a constant sales process, or is it most of the time that you’re selling when meters are up for replacement for utilities, please?Ken Bockhorst No, it’s a constant selling process, similar to with other budgeting concerns and things that utilities tend to budget out into the future.
So, the water quality sales team is out there selling independently. The water quality sales team is selling jointly with the utility business. So, it’s an ongoing thing.Tate Sullivan And then, are your customers, I mean, just — are they still worried about water quality in their systems meaningfully? I mean, it’s been since 2014 with — when — I mean, can you just comment on what you’re hearing from customers? And do they want your — do they — are they still worried about water quality and their infrastructure?Ken Bockhorst Yeah, I think if you just turn on the news and look online on any news, I guess people don’t open newspapers that much anymore, but the news just continues to grow on people being concerned about what’s in their water, and that’s why we were so excited about s::can and ATi because of the high-tech nature and the ability to provide that water quality real-time, on-demand information.
So, certainly people are interested in it, and that interest we view as growing, which is why we really want to get into that space.Tate Sullivan And then, I think you mentioned in your prepared remarks more radio replacement meter levels. When were your first ultrasonic meters in the field? And when is the replacement cycle going to start for those ultrasonic meters?Ken Bockhorst Yeah. So, I think the point that I was making was on radios, but I’ll answer your meter question first. So, meters, whether they’d be mechanical or ultrasonic, that’s in that — meters are about 85% annual replacement volume.What I was speaking to on the radio replacement volume is that now if you think about the drive-by radios, they’ve been in the market 25 to 30 years.
AMI radios have been out there now roughly 10 years. And as more and more radios get deployed, you’re going to see the same over time, right? It takes a long time, because these are long-cycle products in the field. But radio replacement volume is going to be the same exciting 85% once you get the full saturation in the market. So, every year, we see a higher level of replacement volume in radios just because that’s the nature of the business.Tate Sullivan Okay. Thank you very much.Ken Bockhorst Yeah. And you’re welcome.Operator Thank you. There are currently no additional questions registered at this time. So, I will pass the conference back over to Ms. Bauer for closing remarks.Karen Bauer Great. Thank you, operator, and thank you all for joining our call today.
For your planning purposes, our second quarter 2023 call is tentatively scheduled for July 20. I’ll be around all day to take any follow-up questions you might have. Have a great day. Thanks.Operator And with that, we will conclude today’s call. Thank you for participating. You may now disconnect your lines.
