We speak now with one voice. We’ve gone through all of our contracts with respect to identifying opportunities to implement more constructive contract management. We’ve looked across our supply chain and we’re implementing supply chain actions to try to speak with one voice, speak with an amplified voice, and garner the value from that, okay. Now, the other thing is I think also it gives us an opportunity to look at facilities and perhaps look at consolidating facilities. So, clearly this kind of an action bringing the organization together, we’ve picked some low-hanging fruit, but it is a long process that’s going to last really probably well more than another year. We always planned for our discovery phase to last about 10 or 11 months. We actually got through it perhaps a little ahead of that.
And then we planned for our implementation phase to implement the actions that came out of that discovery process. We had always planned for that to take 20 to 28 months. And we are operating inside that timeline. So, we’re on track. There’s much yet to do.
Mike Crawford: And then sort of related, I was hoping you could share some key components, like I don’t know, maybe a dynamic cloud platform of your strategy to become more of a system solutions provider.
Ken Peterman: That’s really the other side of the coin of the discussion that we just had about consolidating or centralizing the 14 siloed businesses into two segments and applying some central oversight and leadership in terms of enterprise-wide actions. The second — the other side of that coin is consolidating our businesses like this enables us to collaborate more effectively and enables us to offer customers subsystems, systems and services solutions that the individual silos could not do alone, okay. I think that first of all, that’s — one thing is that — that’s what our customers are asking from us. They’re asking for more comprehensive systems and services solutions by bringing the technologies, products and capabilities and even the people expertise from across our enterprise together to be able to bring them our comprehensive solutions.
Now, the customers are asking us for that and, in this construct, we’re able to deliver that. So, I think that that is a — and by the way, typically in the systems and services market segments, the financial return is much greater, profitability is much greater. So, we’re working steadily to move and up-tier our systems and services capabilities in that regard. We’re making really good progress along those lines. And I think this GFSR contract and some of the other ones are an example of that.
Mike Crawford: Okay, great. And then one final question for me is it’s nice to see your Terrestrial and Wireless segment margin back over 20% where it used to be fairly consistently, and I’m wondering if it’s mostly just job cuts there or what else is at play, and if you think that’s sustainable?
Mike Bondi: Yeah, I think again, this is going to come down to our One Comtech lean initiatives taken. I think you’re starting to see the benefit of those actions and certainly getting more work in-house like with Ohio and just kind of building that base of business up and ramping up PSAPs on the systems will certainly give us a better economies of scale, leveraging the infrastructure for supporting that business. So, I think you’re seeing both of those kind of happening in this Q4 period.
Mike Crawford: Great. Thank you.
Operator: And we’ll move next to Lance Vitanza with TD Cowen. Your line is open. And it looks like Lance may have withdrawn himself. [Operator Instructions] And it does appear — oh, we do have a follow-up from Greg Burns with Sidoti. Your line is open.
Greg Burns: I just wanted to follow up on the margin question just on the — at the consolidated level. You got back to that, we’re close to 13% this quarter, I guess, guiding to 12% at the midpoint. So kind of back to where we were and I think where you were targeting in the near term. So, how should we think about the business from here? Is this a good level? Or is there a next phase of the One Comtech initiative that maybe where you could see margins going higher from here? Thanks.
