Ken Bockhorst: There are still a tremendous number of singles and doubles. And of course, there are some home runs that come in. But for the most part, that mix of what’s in our bid funnel, mix of what’s in our backlog, mix of what we’re shipping has not changed in any way meaningfully with 50,000 — more than 50,000 utilities in the U.S. of varying sizes. I think what we’ve been able to do over the last several years with our portfolio and the acquisitions of bringing water quality in is we’ve been able to participate in more of the home runs than we used to with our differentiated portfolio. So I think that’s really probably the difference is that we can hit for average and power.
Rob Mason: Very good. Just to go to the gross margin, again, I think as you had previewed this year, you’ve been emphasizing maybe more SEA leverage than over gross margin leverage as the year unfolds. But I’m just curious, given the revenue volume, it all sounded favorable from a mix standpoint. If there are anything going against you just maybe the underlying sales mix or FX in particular? Is there anything that would be keeping that flattish sequentially on higher volume?
Ken Bockhorst: So let me take a first general statement about mix in general. The positive structural sales mix that we have in average ASP drives with some conversion to mechanical ultrasonic conversion to adding radios, the 100% attachment rate of software, the structural mix elements are durable and positive, and that will continue long into the future. We may have some mix within a quarter you just pointed out the impact sometimes of projects and other things. So there might be some slight mix within a quarter. But overall, the positive sales mix trend is long lasting.
Bob Wrocklage: Yes. And I think we’re not at all apologetic about being in the upper end of our normalized range here now on a sustained basis. The reality is, as we’ve always talked about, multiple times. In any given quarter, there’s a variety of factors that play out in our margin, whether that’s mix, price cost, mix of metering technologies, mix of customers, mix of installation pass-through. So there’s a lot going on there. I don’t — again, I feel very confident of the performance we had, and we’re extremely pleased with that. And we expect while there’s certainly been some signs of moderating inflation relative to peak levels, they’re still inflation present, and we’re still continuing to execute on the value-based pricing actions as well as what I’ll call more mechanical price realization because we’re still in an inflationary environment.
Rob Mason: Understood. And maybe just one last follow-up. Around SEA expenses, that increased sequentially as well. Was there anything you’d call out is more onetime in nature? I don’t — sometimes health care or legal costs, or I don’t know if incentive comp had to step up with the performance in the quarter? Or is that a run rate to think about for the balance of the year?
Bob Wrocklage: Yes. I would say the diagnosis of the step change, whether you’re looking year-over-year or first quarter to second quarter is all those things we had listed out in the script. I mean there’s always modest things that don’t recur of a small nature, but nothing significant.
Rob Mason: Very good. Thank you.
Operator: There are no additional questions waiting at this time. So I’d like to pass the conference back over to Karen Bauer for any closing remarks.
Karen Bauer: Great. Thank you, operator, and thanks, everyone, for joining our call today. For your planning purposes, our third quarter 2023 call is tentatively scheduled for October 19. I’ll be around all day to take any follow-up questions you have. Have a great day.
Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.
