Nick Grant: There’s a lot there, Peter, all right. So let’s start with the demand slowing and we truly believe it is more just getting the approvals on these CapEx projects. I mentioned our funnel activities are strong, and we’ve seen a nice increase quarter-over-quarter. So the opportunities are there, the projects that they’ve got identified are there. And it’s just a matter of CapEx budgets, are the projects going to meet the internal rate of returns and getting the right signatures that are slowing things there. We haven’t seen our funnels decreasing, indicating a broader slowdown in demand or anything like that. Relative to the cameras, the new cameras, these cameras ASPs are very different from our other more CapEx type projects and solutions that we have out there.
These things are $1,000 or less in many cases. So it does change our overall ASP. But in general, we’re getting decent margins on these things. And with some of these redesigns, we’ve improved margins with some of our manufacturing abilities and cost components going into this thing with these new redesigned cameras in it. So Important to note is the — this industry, this video space is constantly evolving new sensors, new components being updated, et cetera, et cetera. So we think we’ll be seeing quite a more frequent product launches out of this business versus what it had done in the past in order to keep the cameras up-to-date and generating the demand for us going forward. Duncan, do you want to tackle the other?
Duncan Gilmour: Yeah. So I think you’re in the right ballpark, Peter, in terms of your breakeven that $26 million, $27 million at top line. So that makes sense. On cash flow, really happy with the working capital improvements that the business has been driving. We’re seeing the benefits of that in the quarterly cash flow number for Q3. Obviously, we’re projecting a slightly softer P&L picture in Q4, but we’re continuing our work on working capital efficiency, and I would still expect this to be positive from a cash perspective, although we’re not guiding specifically on that number.
Peter Wright: Wonderful, guys. Thank you very much. If I could have one last follow-up. On the videology cameras that you have, what is driving the new generations that you’re producing? Is it new markets? Or is it improved manufacturing and margin profile? What is driving it?
Nick Grant: It’s all of the above. The SCAiLX product that I mentioned is really a first-of-its-kind, applicable across all markets or a lot of markets out there with the edge AI computing capabilities. So it’s really unique and not targeted at just one particular application. Some of the others are more specific like our pipe inspection cameras, these are really embedding some upgraded technologies to improve performance of those cameras to help those particular customers improve their ability to identify issues in that. So it’s a combination. Cost is also an area that we’re driving the team to improve as well. So, yeah, all of the above.
Peter Wright: Wonderful. Great. Thank you guys.
Operator: Our next question comes from the line of Ted Jackson with Northland Securities. Please proceed with your question.
Ted Jackson: Thanks. Good morning, Nick. Good morning, Duncan.
Nick Grant: Good morning, Ted.
Ted Jackson: I just have one question. Everything I had on my list got checked off. But we’ve got a weaker fourth quarter. And again, you are correct, you are not the only company that is seeing this kind of slowdown cautiousness within their business and plenty of companies have made very similar comments and taken very similar actions with regards to guidance. But my question for you is, now that we’re having this disruption in the business, if you would, with regards to the fourth quarter, does it impact — I know you’re not providing guidance for ’24. But I mean, does it change the seasonality that’s typical in the business? I mean, would we still expect, based upon your fourth quarter guidance to see a first quarter down sequentially from fourth quarter? That’s really my only question.
