Ted Jackson: Good. I want to hear that. Then my last question on backlog, if we take Alfamation out, backlog was down substantially. And is that drop in backlog purely semi-driven?
Duncan Gilmour: Yes. I mean a huge portion of that is semi-driven. As you can see from the kind of order activity in semi, relatively low or a low quarter, revenue is still somewhat holding up. You kind of do the math on that, and you can see kind of backlog dropping there. So, semi certainly the bigger driver, the front-end component, as Nick highlighted in commentary there as well as in Q&A, really being the kind of driver of that sector with respect to kind of that backlog reduction. I think the rest of the markets, you are relatively, you are holding up kind of relatively well, but that’s where we see the biggest change.
Ted Jackson: Okay. Thanks Duncan. And thanks Nick. I will step out of line.
Nick Grant: Thanks Ted.
Operator: [Operator Instructions] Our next question comes from the line of Peter Wright with Intro-act. Please go ahead.
Peter Wright: Hey guys. Thank you for taking my questions. Nick, my first question is if you could share some color on kind of customers’ activity around capacity expansion. Do you think some of the push-outs are more proactive or reactive, or can you tell at this point to kind of what they are seeing there? And separate from kind of the capacity conversations on more of the innovation or tech-type purchases or new customers, has there been anything to kind of highlight or note there, either accelerating or decelerating? And then the second question I have is more from your guys’ perspective as we look at kind of where we are in the cycle, you guys have made some acquisitions and maybe have some costs to cut there, but what is changing maybe in your investment philosophy in your own innovation, in your own development cycle? Is there any cost cuts or harder hurdles to get by, or are you guys full steam ahead? Thank you.
Nick Grant: Sure. Hi Peter and thanks for the questions there. So, relative to capacity expansions and what we are seeing, I would say most of those really have been kind of delayed out there. Customers still have these projects on their roadmaps, they are in our funnels. And it’s just a matter of timing before they pull the trigger and they are going to need our equipment for those things. So, nothing is being, I would say mothballed or canceled. It’s just purely just a delay on getting CapEx spending approvals there. As we relate to new customers, this is something we have been driving across the businesses since I joined, aggressively going after new customers in the markets, going after existing customers and getting more share of their wallets.
And that continues throughout. And in fact, we have got an aggressive push to elevate activities in those areas, obviously in these slower times and going after competitive accounts in that. So, the teams are laser focused on finding the opportunities and getting them closed out there. But we will continue to add new customers every quarter. And excited about the new customers we brought in with Alphamation and their customer base and trying to explore the larger portfolio of our solutions across that as well. And then the last question you had, comment was on what are we doing relative to our investments in R&D. So, innovation remains one of our core strategies, and we aren’t slowing down in that area. In fact, pushing the teams to do more and try to speed up development around the new products, kind of linked with that in new customers is pretty excited about the number of customers that are qualifying the SCAiLX new vision camera that we did release last year.
It takes time to design in the new cameras, and so we have got a pipeline of opportunities there that should start bearing fruit later in the year. Likewise, the new Benchtop Thermostream that we launched at our ITS business, up in Mansfield, Massachusetts, good excitement there. It was launched at a trade show out in California. They had over, dozens of leads that came back specific around that product. So, we are chasing those down. So, yes, innovation is something we won’t throttle back. We believe it’s going to create demand going forward for us.
Peter Wright: Thank you for that. If I could ask one kind of detail question, maybe more of a survey-ish type question. Duncan, if you look at pricing and cost trends, is there – looking at where we are in kind of the ebbs and flows of the inflation cycle, is anything getting notably more difficult or notably easier out there in managing margin?
Duncan Gilmour: I mean it’s all relative if you compare to a 1.5 years, 2 years ago when certainly things were a lot more volatile from a supply chain, inflationary perspective then, the amplitude of that is certainly less, but it’s a constant, I mean the teams are constantly looking at it. We are constantly looking at that price versus cost equation ensuring the teams are pricing appropriately and managing costs, managing supply chain costs, etcetera, etcetera. So the amplitude is more manageable, but it’s an ongoing battle and it should be.
