Ryan MacDonald: That’s helpful color, I appreciate that. Maybe on the cost optimization, Tom, you mentioned that it’s going to be a mix of savings in cost of sales and then S&A. As you looked across retail, wholesale, DSS, can you maybe just help us out and give us a sense of the magnitude of where you’re making the cuts across those three segments as we think about the P&L moving forward?
Thomas Donohue: Yes, thanks Ryan. I haven’t necessarily broken it out. We’re in the process of doing it. It’s a lot of people, it would be people in all three segments, and when you think more on the cost side as opposed to just the people, it’s really switching to the FDC model both in terms of service and support, and really trying to re-focus the capital investment in that area. As we look across, it will certainly be people but it also gets down to the retail level, the store level in terms of store labor and the effects that it has there.
Michael Huseby: Yes Ryan, it’s Mike. I guess the way I would answer the question without giving the numbers that comprised the total is that–you know, we talked about each of the business units in the script, and from a relative perspective, the employees impacted are probably more significant on a relative basis at DSS and MBS because–and there’s some in corporate, but we’re trying to, as we said and as John just said, really focus our investment on our highest return, our core business, and drive our inclusive access model. While there are reductions across the business, the weighting of that really emphasizes focusing the savings in those businesses where we have to really get more rigorous on profitability, and then also have those savings reinvested–when we say reinvested, we really mean to drive our core business where it’s got the highest ROI.
Ryan MacDonald: Makes sense, okay. Maybe just one more from me. Mike, you had talked about in one of your comments that students are just–you know, an increasing number of students not purchasing the course materials they need. I would think that structurally that would be a bit of a tailwind for the DSS business and the Bartleby business. Just curious what you’re seeing there and maybe what’s causing the slowdown, and are you seeing any improvements in the pipeline here of the school associated Bartleby adoption deals? Thanks.
Michael Huseby: Yes, thanks. I’ll answer the second question first. In terms of the pipeline for what we’re calling institutional, where we have several schools now signed up, that is continuing. As we’ve said, though, the main emphasis on DSS is really focusing on more rigorous profitability, getting that DSS segment to cash flow breakeven. Within DSS, as you know, there really are two businesses: the Student Brands business, which is growing, and then the Bartleby business, where we tried a lot of things in the fall in terms of new pricing and some new approaches. Some worked well and some didn’t work as well as we thought they would, some of which has to do with the environment we’re in currently, but we learned a lot in the fall and we’re making some significant changes to, I guess I would say, take advantage of the competitive differentiation we have and the ability to offer a different price point in particular, and also leveraging our footprint in a more zealous way in store and than we probably did in the fall.
We’re reining in the capex by not taking as broad questions from international sources, really focusing more on the U.S. and our footprint and becoming much more focused on Bartleby in terms of rationalizing the business to fit the current circumstances and our need to grow to focus on profitability. It’s been really set up over the last six months to a year in terms of the activities and intentionally to develop and asset for longer term growth. With our financial capacity and the focus on really the core business, we’re reining in that in a bit. Still have great people working there and I think we have great opportunity to set a foundation that positions us for more growth going forward, but the visitors to the sites were down, and that’s an industry phenomenon.
We employ an outside company that tells us about our sites and those that we relatively compete with in this area, and traffic was down across the board, so that’s something we need to work on and have ideas as to how to do it. Very proud of Student Brands also in terms of their turnaround over the last 18 months or so, being led by and his group, experts in SCO and machine learning. That’s a real gem of an asset that we have within DSS and I think complements what we’re doing in Bartleby and eventually downstream into our core business. We’re focused on a big change in Bartleby and the approach just in the very near term for spring, and hope to see better results. We can’t guarantee that, but we’re focused on it.
Ryan MacDonald: Thanks for taking my questions. I’ll hop back in the queue.
Operator: Thank you. As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. The next question today comes from the line of Alex Fuhrman from Craig Hallum Capital Group. Please go ahead, your line is now open.
Alex Fuhrman: Hey guys, good to talk to you. I wanted to ask about the cost reduction initiative – it sounds like after the $10 million to $15 million you’re expecting to realize for the remainder of this year, there’s another $20 million that you expect to realize long term. How long do you think it’s going to expect to realize that? Do you think you’re going to see the bulk of that incremental 20 in fiscal ’24, and then Tom, I think you mentioned it’s your intention to reinvest most of these savings into other initiatives, so how should we think about the impact to the P&L of those cost savings?
