Yossi Gaspar: Yes, first of all, I would say the following about that. We have kind of steady state business flow which we were exposed to years ago, and we continue to have these, what we call the medium sized contracts of tens of millions of dollars each, and that continues and we will increase. Then we have on top of that some significant number of what we call three-digit contracts, that are in the hundreds of millions of dollars per contract, that we have seen in recent two years an increase of number of those contracts, and definitely the high level dollar value contracts have the potential to improve future definitely revenues, but also the bottom line. Regarding the areas, geographic areas, you can look at our press releases of the various major contracts that we have announced, and if you analyze those, I would say that the contracts in the U.S. are more or less in the steady state growth that we have seen in past years.
Contracts in Europe and Asia Pacific are higher in the growth than what we have seen in the past, especially related with some of these contracts that I mentioned earlier. The contracts in Israel, of course, are more or less at the level that we have seen in the past, maybe with some middle, single digit growth from what we have seen in the past. In total year over year, our backlog has increased by $1.1 billion, which is a significant number, and the spread, the global spread, as I said, the more higher level growth is in Asia Pacific, Europe, and all the others are the normal level.
Pete Skibitski: Okay, that’s great. Appreciate the color, guys.
Rami Myerson: Thanks Pete.
Yossi Gaspar: Thank you Pete.
Operator: The next question is from Ellen Page of Jefferies. Please go ahead.
Ellen Page: Hi guys, thanks for the questions. Just to start, looking at both from a cash and margin perspective, how would you describe supply chain disruptions today relative to where they were in Q2? Are things improving at all, both from an ability to source materials and also from an inflation perspective?
Butzi Machlis: Hi Ellen, this is Butzi. With regards to supply chain, we see an improvement in shipments. Shipment costs are going down, not yet at their historical levels but they are going down, and we see also prices going down in metal parts and materials going down, once again not yet at historical levels prior to COVID but going down. We don’t yet see it in electronic components – there, we still see a shortage. The main challenge we face right now is mainly around the electronic components. That’s also the reason why our stock went up and inventories. We–from what we understand and from what we estimate, we believe that improvement there will happen during the second half of next year, and we are taking all the required measures in order to overcome some of these challenges.
Ellen Page: Helpful. Just looking at land systems, it was very strong in this quarter, and I believe that’s where Ashot came out. Am l–is that accurate, and how do we think about growth going forward as ?
Butzi Machlis: Are we talking about land systems, Ellen?
Ellen Page: Yes, and Ashot, the divestiture.
Kobi Kagan: Yes, we had–hi Ellen, this is Kobi. We had stronger artillery sales this quarter, and remember that the Ashot Ashkelon part was nearly $20 million, so it is not so significant, but we had stronger artillery and ammunition sales due to the situation mainly in Europe, so we had a stronger quarter in the land system business.
Ellen Page: Helpful. I’ll hop back in the queue. Thank you.
Rami Myerson: Thanks Ellen.
Operator: The next question is from Ella Fried of Bank Leumi. Please go ahead.
