Chris Thome: Yes, I know, it’s a little bit confusing, Gary. So let me walk you through it. So during the quarter, we reserve $3.1 million for inventory and accounts receivable related to Virgin Orbit. That $3 million charge resulted in a $600,000 reduction in performance based compensation, since all our bonus programs are performance-based. So the net impact to the quarter and the year was $2.5 million. As you know, bankruptcy proceedings are complicated, and they take some time to work themselves out. So we still have a little bit of exposure left on our balance sheet, which we feel very comfortable with what we reserved during the quarter. But again, these proceedings and us being able to capture value from what we have left on our balance sheet is uncertain. But we feel very comfortable with where we’re reserved at the end of the quarter and don’t see any more impact for 2024. But never say never, so we wanted to at least put that qualifier out there.
Gary Schwab: Okay, so there’s no recapture. You just don’t expect any more reserve?
Chris Thome: Yes. So let’s say the team is 100% focused on this. And if there is an ability to recapture, we’re going to try to go after, and we’re going to get it recaptured. But it’s just too soon to tell and we wanted to make sure that we were adequately reserved.
Gary Schwab: Okay. And then one last thing. In the third quarter, you were talking about your backlog, and you said that of that backlog, 40% to 50%, should be converted in 12 months. Now, this quarter, you’re saying that you weren’t going from 40% to 50% to 50% to 55%? What sped up the delivery schedule?
Chris Thome: It’s just a mix of the contracts that we have out there. As you recall, in the third quarter, we had some larger defense programs that we received, which we’re not going to work on until, like, fiscal ’24 through fiscal ’26. So that extended it out a little bit. But then in the current quarter we received the Mark 48 modification, so that brought it back in a little bit. So, those numbers typically won’t ship too much over time, but can vary a little bit. But typically, we see around that 50% level that’s going to convert [indiscernible].
Gary Schwab: Okay. Okay. And actually there was one of the things. In the — they’ve been talking about the Artemis Moon program scheduled for ’24. And then ’25, is Barber-Nichols involved in that in anyway?
Dan Thoren: You stumped me on that one. I don’t think so. But I don’t know that for sure.
Gary Schwab: Okay. All right. Well, that’s all I have. Thanks very much.
Dan Thoren: Thanks, Gary.
Operator: We have no further questions at this time. I would like to turn the floor back over to management for closing comments.
Dan Thoren: Thank you. Thank you, everybody for your time. I just want to reiterate the three key themes, we hope you take away from our call. First, we’re delivering on our promises. And while we have the several years to achieve our fiscal 2027 goals, we are demonstrating our ability to get there. Second one is we have successfully diversified the business and have expanded our customer base. Even with the event with our one space customer, we were able to absorb that and still deliver for the year. Third is we have a large opportunity set in front of us. And we have the strategy and team to continue to drive growth and improve profitability. I hope you all enjoy the rest of your day. Thank you very much.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.
