Milton Childress: No shift currently. We continue to have a focus first on investing in our business for growth, whether it’s organic investments such as the investment we’re making in the new facility in Arizona or selective acquisitions that meet our strategic and financial criteria. We continue to look at a lot of opportunities. We’re very — I’ll use the word picky. We’re not interested in making acquisitions just for the sake of growth and acquisitions, but we do continually look at opportunities. The pipeline is actually quite good, and we’re trying to find the right fit for us. And I think as we’ve mentioned last quarter, we’re spending more time in the Sealing segment and looking at opportunities that fit with us there, and can advance our strategy going forward than we are with AST, where we have a strong organic path ahead.
Steve Ferazani: Thanks, Milt. Thanks, Eric.
Operator: Thank you. [Operator Instructions] Our next questions come from the line of Ian Zaffino with Oppenheimer. Please proceed with your question.
Ian Zaffino: Hi, great. Just a couple of clarification questions. On the destocking, I know you mentioned food and pharma. Is there any other anticipated destocking that you might see across like any of your other Sealings industries or end markets that we should expect?
Eric Vaillancourt: In Sealing? No, the only — I think right now, we’re back to seasonal demand and normal cycles. I do think the one thing is different since COVID, we had elevated backlog due to supply chain constraints. And I do think the supply chain is in balance. And so I think that part is cleared up. And so — and when James talked earlier about taking out extra safety stock, I think our distributors have returned to more normal inventory levels instead of increased safety stock. So overall, I think things are in balance. But I don’t see any more destocking other than food and pharma.
Ian Zaffino: Okay. And then can you maybe give us an idea of what the pricing actions were versus volume actions?
Milton Childress: When you look at the Sealing, you’re referring specifically to the Sealing segment, Ian?
Ian Zaffino: Exactly, yes.
Milton Childress: Yes. It’s mostly, if you look at the organic growth, it’s going to be more heavily weighted toward pricing on a year-over-year basis than volume growth. just kind of where we are in the cycle and then some of the seasonal or typical seasonal patterns that Eric referred to. We had volume growth in certain markets like nuclear and aerospace and space. And then we had some volume declines in general industrial because of slowdown in Europe and China. So it’s — the patterns are different depending on the market. So there are certainly pockets of growth but overall, when you look at the year-over-year growth for the segment, it was more heavily weighted toward price.
Ian Zaffino: Okay. And then just a final one. On the mix at AST. I know you mentioned memory weakness. Can you maybe give us an idea of what’s been relatively strong versus memory? And then also how did aftermarket versus the OE business too. Thanks.
Milton Childress: Yes. In AST, I think the last question first, in AST, we’ve said in the past, and this is rough because it changes quarter-to-quarter, year-to-year a little bit. But we’re roughly one-third of our semiconductor business is driven by recurring revenues and recurring, meaning products solutions that are driven by the production of chips, where chamber components need to be refurbished or cleaned or recoded. And so that’s what we mean by recurring. And then roughly the remaining two-thirds is driven more by new equipment that’s being sold to the foundries and the IDMs to support growth. And so yes, on the recurring part of our business, given where we’re positioned, a lot of that, we are in advanced nodes. And so that part of our business is performing well. We’re seeing some year-over-year growth there. The weakness has been more on the equipment side of the business, given the inventory situation that we alluded to earlier.
