Michael Feniger: Makes sense, Tim. And just — I know there’s a lot of focus on the EV build-out capacity in China. Just curious on the U.S. side, how exposed you are to there already? Just because there are some headlines you’re seeing, I’m sure you’ve seen, Tim, about Ford pushing out around $12 billion of CapEx right now. GM with a plant, Tesla, there seems like there’s a little bit of a pause going on right now based on some EV demand in the U.S. It could also just be with strikes that were happening there. So just curious what you’re seeing there? How critical that is to you now? And if you’re seeing that more of a pause rather than anything more indicative going forward?
Timothy Mammen: Our view is that there is a bit of a pause, right? You’ve seen several announcements that have come even in the last couple of weeks. But if the transition towards electric vehicles is going to continue and reach a much more meaningful level, the total investments will have to pick up. I mean our view is that if they’re starting to have to start looking at capacity for ’25 and ’26, the second half of next year, should see some improvement on that. Our exposure in North America on some quarters, it can be quite high. You’ve got projects where we’ve delivered a significant amount of welding and other equipment for EV. There’s some revenue for EV in North America in Q4 guidance. But it’s not — I mean, our business in North America isn’t totally dependent upon EV but it clearly was a meaningful driver for us, and we do need a rebound in that EV investment to happen. And hopefully, that will happen in ’24 with a view to capacity that’s needed in ’25, ’26.
Eugene Scherbakov: And for America, EV applications for us is interesting because it’s not only — requirements are not only for lasers or some components. We also start to supply to our customers a complete system. For example, for cleaning applications, one of the biggest EV manufacturers are start to use our cleaning applications was a new product, already and in pipeline stage, some additional orders for this. For us, it’s very important to demonstrate our new technologies.
Timothy Mammen: Sorry, Mike, the other thing is that we are expanding the application. So the drying — the first meaningful amount of drying revenue will come in Q4. The overall feedback from the market on that is very — not just for EV, by the way, across the whole bunch of different applications where that laser can be used on drying, whether it’s for coatings or even some — even more esoteric areas. So that and then we’re looking at some other cutting applications within battery as well that are more specialized. So the application set is continuing to expand, and customers are working with us on different applications as well.
Michael Feniger: That’s helpful color. I guess maybe following up on that, Tim, with expanding the application set. It seems like you guys are making progress on the gross margin given some of the changes in production. I’m curious though, if you got a big picture, if you think maybe taking the margin range down, would that unlock more growth in some ways since that was kind of a lever, at least on the pricing side, historically? Just curious how you kind of think about that, would that reinvigorate or [indiscernible] to drive higher growth if you made that type of shift?
Timothy Mammen: I think the overall pricing of lasers and integrated beam delivery systems drives a huge amount of productivity benefit for the end customers, right? A lot of these — even on the EV side, when you combine it with LDD and even non-EV applications, the welding is really driving significant returns on investment. We highlighted, for example, on LightWELD compared to MIG or TIG it’s 4x faster. So I don’t think the issue on the pricing is that you’re going to try and compete with the Chinese it’s not like a 10% price reduction. It’s magnitude greater than that and the cost of lasers overall has come down very dramatically over the last 3 to 4 years. So we don’t think this isn’t really a pricing issue, the value proposition of the technology overall continues to be very significant.
