Jonathan Tanwanteng: Okay, great. Last question just on the Test business. How much was pushed out of, I guess, the quarter and kind of when do you see all of that pushed out the delayed revenue hitting? I think you mentioned some of even going to fiscal ’25.
Bryan Sayler: Yes, I would say it was a few million from Q1 beyond, but I think the amount that pushed out from this year to next year might have been $10 million or $11 million.
Chris Tucker: Yes, $10 million to $15 million, I would say. And I would also say that the way it’s kind of laid out now, we saw as Bryan said, maybe $2 million to $3 million in the first quarter, but we saw a pretty big reduction in the second quarter as well that kind of got — we flowed this flat a little snow, if you will, into the third and the fourth quarter and then on into the next fiscal year. So that kind of helps size it up for you a little bit, I think, as we look at where we are.
Jonathan Tanwanteng: Okay. And would you expect that segment to improve as you come out of the second quarter and into third and fourth and construction kind of gets back …?
Chris Tucker: We would, yes. Because of the cost take out and because we would expect, we’ve obviously got big volume declines in the front half, and we would expect the business to kind of level off and maybe even grow a little bit in the second half, which would also aid the margin recovery.
Jonathan Tanwanteng: Got it. And I was just wondering how broad-based, I guess, these construction delays were. You mentioned some large projects. Is that more of a general industry issue that’s going on? Or was there some particular exposures that are going on in the U.S. either by region or industry?
Bryan Sayler: Yes, we ask the same question. It’s most noticeable here in North America, to be honest, but it is fairly broad based. It’s not just one or two projects. It just seems like the overall construction industry isn’t running at the same pace that they have in the past. One — there are some other supply chain things that are happening there, like in the data center world, they’re having a hard time getting a hold of switchgear and transformers and in the medical space that are having a hard time. The Magnet lead times, we were told recently that Magnet lead times have extended from what used to be 3 months and that would be kind of — we get an order and immediately be taking action to now something more like 9 or 10 months where we get the order.
And what happens is the way it works for us is we have to create an enormous design package that then has to be approved and then we are told when we can go and execute it. So we make assumptions about when that’s going to happen. And then periodically, as we check in with the parent building owner or a developer. What we are seeing is they’re seeing lots of delays that are beyond normal, at least beyond pre-COVID normals for sure.
Jonathan Tanwanteng: Understood. Thank you.
Chris Tucker: Thanks, Jon.
Operator: Thank you. One moment. And we have a follow-up question, and that follow-up question is coming from Tommy Moll of Stephens. Your line is open.
Tommy Moll: Hi, Thanks for putting me back on. I wanted to ask about Doble. Revenue in the quarter was up double digits, low teens, though obviously, your comps get tougher this year, and the orders were flat in the quarter. So that business has recovered nicely in the recent past, but I just wondered, does it feel like we are getting to a more normalized level for that business? And if you think about the growth prospects going forward and you can define how far forward you want to talk. But from this higher base, what is a reasonable and repeatable rate of compounding here, is mid-single is a decent proxy?
Bryan Sayler: Yes. I think where we’ve got it [indiscernible] is in that 6%, 7% annualized growth. We’ve checked in with those guys recently, and we still feel like that’s very solid, even off of these much higher comp levels that you’re referring to.
Tommy Moll: Great to hear, and I appreciate it and I will turn it back. Thanks.
Operator: Thank you. One moment. And we have a follow-up question from Jonathan Tanwanteng of CJS Securities. Your line is open.
Jonathan Tanwanteng: Hi. Thanks for the follow-up. I was wondering what we can expect out of the Doble Conference this year and kind of what the sentiment in attendance looks like getting into it?
Bryan Sayler: I’m sorry, the question was, what can we expect out of the Doble Conference?
Jonathan Tanwanteng: Yes, just attendance, what you’re excited to talk about and introduce there or what the industry is [indiscernible]?
Bryan Sayler: We expect it to be back to pre-pandemic normal. I think we are pretty excited about the event. We’ve been continuing to do some good product development. I’m not going to announce any products on the call, but we expect that to be a good time for everybody, and a good time for Doble.
Jonathan Tanwanteng: Okay, great. Any commentary on just the MPE integration and how they’re doing at the gate?
Bryan Sayler: Yes. We are really pleased with how that’s going. Every time you do a deal like this, once you kind of get in there and actually start working with it, you’re always worried that you’re going to find some surprises. And so far, it’s gone really, really well. No surprises. The margins are coming through the way that we anticipated. The teams are really cooperating very effectively with each other. And yes, the orders are holding up. So yes, so far, so good.
Jonathan Tanwanteng: Great. Thank you very much.
Operator: Thank you. At this time, there are no more questions in the queue. And I would like to turn the call back over to Bryan Sayler for closing remarks. Please go ahead.
Bryan Sayler: Well, listen, thanks, everyone, for taking time to talk to us. We are — as I said during the call, we are excited about ESCO and where we are heading, and we are expecting to deliver a third record year. So thanks a lot.
Operator: Thank you for participating in today’s conference. This concludes the call. You may disconnect.
