The other thing is, yes, we are a little reserved as it relates to our guidance, but we feel very good about the guidance. Based on what we’re hearing in the market from our competitors and from others that are down single to double digits. So we’re just trying to make sure that we put something out that’s fair based on our pipeline, based on our backlog, based on everything that we’re seeing. The other thing I will highlight, it is up 7% to 11% on over last year in this market, which I don’t think you’re seeing in most of the companies that have announced results. And quite honestly, that’s ballpark $150 million to $250 million in terms of guidance above what we did last year. So I think it’s a somewhat aggressive but realistic target, so not undercutting it.
I don’t know if that gave you everything you need there, Matt.
Matthew Sheerin: Well, I have some follow-ups, but just regarding backlog, is it still elevated? It sounds like it was down. Was it down $60 million quarter-on-quarter? And is it still elevated, and how much relative to your normal backlog?
Mark Marron: Yes, it’s still elevated to our normal backlog, Matt. It’s quite honestly, it’s almost pre-COVID, almost double our normal in terms of open orders, but it’s down sequentially $60 million.
Matthew Sheerin: Okay. And then on the EBITDA guidance, the margin guidance 9% to 9.2%, that’s basically flat year-over-year, but you’re going to be up significantly year-on-year in UR in Q1. So I’m wondering is that because you expect maybe some OpEx going up? Why not continue to see that leverage play through the year?
Mark Marron: Yes, I think there’s two things, Matt. One, we acquired the network service group. So you only saw two months of the OpEx in this quarter. So I’d expect that to be up a little as we move forward. And yes, we believe we can continue to grow market share. So we are going to invest across our practices, adding more customer-facing headcount. For example, if you think about some of the stuff going on with artificial intelligence, it’s an area that, right now, I believe, is in the early innings. I don’t — it’s not a big revenue generator for us, but we believe it could be a growth driver. So, we’ll look to invest in areas in that space over time by providing advisory services around helping customers understand the risk and the government and things that they have to understand, understanding how to take advantage of some of the AI embedded solutions from our partners that are out there.
So yes, we do plan on making some additional investments in headcount, but it’s also some additional expense that’s not in there as it relates to the Network Services Group, which we acquired in May.
Matthew Sheerin: Okay. That’s super helpful. And just last question for me. Just regarding the pricing trends and I know in recent quarters, you and everyone has been — have been able to pass along the vendor price increases. Are you starting to see that level off at all? Or any pricing pressure as the component availability becomes better.
Mark Marron: Yes. No, Matt, I haven’t seen anything. We’ve been able to pass it on and haven’t seen. There are certain deals where you’ll have some pressure from competitors that will go in aggressively with discounts. But as it relates to any pricing pressures, we’ve been able to pass that on, we had a strong quarter related to our product sales, which I think Elaine mentioned was up 29%. So didn’t see much of that change in that space.
