Doug Boessen: Yes. So relating to those margins, obviously, the decline in sales had an impact on us, obviously, deleveraging on our expenses. Also relating to the gross margins, we did — as we previously talked about, with JL Audio in there, that’s a lower gross margin than the marine average. So, that did have an impact on it also. So, it’s really just a combination of that gross margin and some product mix in our marine organic business there as well as the sales output. Then on an ongoing basis, as it relates to JL Audio, we should see — as Cliff talked about, as it relates to our gross margins, they are lower. So there’ll probably be some dilution of that as we go, but hopefully, we’ll be able to get some synergies and opportunities, get those improved as we move along.
Operator: Your next question comes from the line of Ivan Feinseth with Tigress Financial Partners.
Ivan Feinseth: Congratulations again on the great results and the increased outlook. On the acquisition of JL, you talked about expanding the marine audio, but what about do you think some opportunities for you to integrate this in automotive OEM audio? And then recently, another company launched a headset, a bone induction headset. Do you think there’s opportunity to expand in some of the consumer product audio areas?
Cliff Pemble: JL Audio already has a fairly broad market reach across several markets, including, of course, marine is one of the biggest. But they also have products for aftermarket audio as well as power sports and home audio. And so consequently, they’re pretty diverse, which is exciting, gives us some opportunities to explore some new areas. And I think each one of those has their own nuances. I think aftermarket audio is a very specific kind of play, but the expansion in power sports and also home audio are new areas of business for Garmin.
Ivan Feinseth: And if you went into home audio with them, would you be rebranding? It would be a Garmin brand or a Garmin JL brand?
Cliff Pemble: Well, they’re already in home audio. So they’re currently selling systems right now, subwoofers and things for home theater systems. And so, we intend to continue those business lines and invest in an appropriate level of innovation across their various product lines.
Ivan Feinseth: Very good. And then on the introduction of the new MARQ Carbon. What kind of like uptake are you seeing from, let’s say, people new to the brand or upgrading existing watches? And also because of the much higher price points, are you looking to go into like a different type of marketing platform or different retail distribution for those watches?
Cliff Pemble: I think MARQ Carbon fits in nicely with our overall high-end product line. If you look, especially in adventure watches, starting with the fēnix and epix line, these are premium launches anyway. But customers do appreciate unique materials and unique designs, and that’s why we’ve been successful in carving out our own niche in this huge market. I think as we look at customers and the registrations, they tend to vary by product line, depending on what it is, but we see anywhere from mostly new customers coming into the category to repeat customers. But either way, we’re pleased with the ability to offer a broad product line at low end to high end, to cover as many customers as we can.
Ivan Feinseth: And then on the new ECG functionality on the fēnix — on the Pro line, is that because you’re able to integrate because of the more advanced sensors that are now in the Pro line, or how broad can you go, let’s say, with that functionality?
Cliff Pemble: I think that’s an indication of the platform capability that we have. We have sensor technology that we design in platforms, and we’re able to move that platform across all different kinds of product lines. And so that the fēnix and the epix Pro series are the ones that receive that latest platform, and we were able to then launch the ECG App for those products as well.
Ivan Feinseth: Then one last question. Do you think that there’s some opportunity at some point to incorporate the SOS functionality of inReach within a watch, just for that one feature?
