Greg Burns: Okay. And then, in terms of the EDIM modem opportunity, are you — is that a sole source contract or are there multiple vendors that are supplying these modems? And when you think about the conversion or the upgrade opportunity there, is there an upgrade cycle that goes on there or an end of life to these — the EBEM modems? Like, how should we think about that broader opportunity beyond the first $48 million order that you got?
Ken Peterman: Well, the EDIM contract, which is the acronym EDIM, okay, is a kind of successor contract to the EBEM, E-B-E-M, contract that was led in 2003. The 2003 contract had a development — design and development phase along the lines of this current EDEM one, and then it resulted in significant fielded quantities, I believe tens of thousands, perhaps more than 40,000 of the legacy modems were fielded, okay, over the period of 2003 to, say, today, okay? This is a single award program to Comtech. We do have a major subcontractor in iDirect that provides an interference excision capability that has real value in this environment because this is a modem that could be looked at as eight modems in one, and has a significant size weight power advantage over the modems that it’s replacing.
And it implements next-generation waveforms to enable really to help realize — DoD to realize its vision of multi-network connectivity over multiple diverse networks simultaneously. So, this modem could easily be viewed. We’re really excited about this contract, and I think it holds a potential for tens of thousands of production deliveries as a follow-on. But yes, it’s a single award contract.
Greg Burns: Okay, great. Then lastly, can you talk about cash flow this quarter? Looks like you built up a little bit of working capital. So, how should we think about cash conversion as we go into fiscal ’24?
Mike Bondi: Joe — sorry, Greg, on cash flows from ops, I would say, we’re taking positive cash flows for the quarter. Certainly, we’re always subject to the timing of collections of large receivables. So, I would say, in terms of quantifying a specific number, it’s definitely going to be a stronger cash flow than you saw in Q4. And in terms of for the full year, again, not quoting a specific number for the full year and giving full year guidance, but I would say we’re going to start returning to more pre-COVID levels of cash generation. And just being mindful, too, in terms of the CapEx and free cash flow, our CapEx targets for this year are around $15 million and probably more skewed towards the first half of the year, but pretty even throughout the year.
Greg Burns: Okay. Great, thanks.
Operator: And we’ll move next to Mike Crawford with B. Riley Securities. Your line is open.
Mike Crawford: Thank you. Ken, you’re talking about your One Comtech initiative, and I’m wondering if you can give us a progress update on one component that I think is not complete yet, and that’s this assessment you’re doing regarding centralized supply chain operations and management.
Ken Peterman: Yeah, well, thank you, Mike. By the way, it’s good to have you on the call. Let me say first that I think our One Comtech organization had two initiatives — two thrusts, okay. The first one is to bring the organization together, eliminate redundancy, streamline operations, streamline decision making, and a part of that was enable the significant cost reduction. Second part of that enabled us you can think of the centralized supply chain management operations, engineering, technology, development, so that we looked across our enterprise and we did things once we did it collaboratively and we did it collectively in a way that supported our enterprise collaborative strategy, okay. Supply chain was certainly part of that.
