Asiya Merchant: Great. Thank you very much. Could you walk us through some of the margins — the EBITDA margins also on the direct deal side of things, those were a little bit softer as well compared to last year. I know they increased sequentially, but maybe you can walk us through what’s going on there why the margins? Is this like new contracts that are ramping up that just carry lower margins. And then as you look out into fiscal ‘24, are you expecting margins to kind of revert back to — if you dial it back a couple of years ago, I think they were north of 20%. Is that reasonable to expect for fiscal ‘24 going forward? And then just if I think about it, I think your fiscal 4Q outlook up sequentially 2% to 4%. With the exception of perhaps 1 quarter where you guys had extraordinary sales back in 2018, that seems — or the 2020 quarter, which is obviously an odd year.
It seems to be a little underwhelming relative to — I mean, I know it’s generally north of 4%. So I don’t know, 2% to 4%, midpoint of 3%. Is that just baking in some conservatism here? If you can just kind of walk us through some of that, that would be great.
Mike Bondi: Yes. We’ll unpack. There are a few questions in there. In terms of the margins in terrestrial and wireless, this is another area we are definitely focused on as we move into FY ‘24. I think I speak for the team, we’re all impatient as we’re awaiting the award of several large opportunities to get us back to some economies of scale in the segment. But at the same time, while we’re awaiting those awards, we are doing our benchmarking and as part of our — bringing the companies together and One Comtech, we have identified some opportunities to improve our margins going forward. And I talked a little bit about some of those initiatives to grow revenues and different types of revenues at a more software-based and moving up the tier, if you will, on margin.
But given the long-term nature of the backlog in terrestrial and wireless, it will take us some time to burn that off. They had lower margins in that NG911 business. Those were the initial awards. It was a land grab, trying to win the work with the customers. They are great contracts to have. They’re very long-term in nature with renewals. So if we do a good job, we expect to see better margins as we continue to ramp up the recurring revenues and move into the renewal phases of those jobs. We’re just not there yet. We’re probably a year or two away from seeing that happening. But nonetheless, we are ramping up those revenues. At the same time, it’s taking on more of a percentage of the overall segment and with the core routing business being sort of steady state, I think the margin percentages are getting influenced by the NG911 business.
So — but again, we’re not going to just allow that to happen. We are addressing it. We’re trying to come up with new revenue verticals and ways to get the margins up. We have taken out some costs in our March reduction in course. We have not seen the full benefit of that in Q3. And we do expect to see better margins as we go into ‘24. I won’t give specific guidance yet on ‘24 EBITDA margins, but directionally, Asiya, that’s sort of what we’re thinking is to get back to those historical margins.
Asiya Merchant: And do you think that’s achievable in fiscal ‘24? And I guess I’m just trying to understand like, I see that you’re obviously — hopefully increase your EBITDA margin relative to fiscal ‘23. But are we…
