Tom Deitrich: Certainly, we believe that the growth in distributed energy resources in front of and behind the meter on the side of the house is going to continue to grow dramatically. That’s just going to happen. I don’t see any way that it would not. How do you control and optimize the use of all of those assets is where I think we’ve got a really unique and interesting value proposition. So when you start to think about things like demand response, where we have the IntelliSOURCE platform that allows the thermostat inside someone’s house to be adjusted to manage the load and shed load in a difficult situation, having hundreds of megawatts under that platform or control. We expect that business to grow, and we think it’s going to become more and more fine grain capabilities.
So helping the utilities cope with that, helping consumers understand how they are utilizing an asset or making those assets part of the larger macro solution is clearly a growth area, which that Grid Edge Intelligence platform that we’ve talked about is firmly targeted and well advanced in terms of adding more and more capability.
Joseph Osha: All right. Thank you very much.
Operator: Thank you. [Operator Instructions] And our next question coming from the line of Austin Moeller with Canaccord. Your line is open.
Austin Moeller: Hi. Good morning. Great quarter. So just my first question here. How much of the backlog that was not inflation indexed still needs to be shipped? And do you view that as more of a Q2 or second half expectation?
Tom Deitrich: The total backlog, it’s still in the range of 70-30, meaning 70% is either new or repriced or shorter-term pricing levels. There’s still 30%, a little less, that is not repriced or not protected indexed in some way. That range hasn’t materially changed over the last couple of months. We’re still within a few percentage points of that. The majority of that 30% pre-priced, if you will, or not re-priced backlog flows through in roughly the next year or two. So it’s still going to trickle out over time itself, but we’re continuing to eat through it overall. And it’s part of the expectations that we are managing for the full year.
Austin Moeller: Okay. And then just another question. Does your long-term guidance that was issued during the Investor Day factor in improved lead times for chips and other components in terms of being reduced further and getting closer to pre-COVID levels and enabling higher shipment turnaround or are you sort of expecting the same kind of lead times that you’ve been seeing recently?
Tom Deitrich: Yeah. We’re running our business with roughly the lead times that we see today. Obviously, if they were to continue to improve, that there’s opportunity there to be a bit more responsive. But our outlook doesn’t expect a meaningful change for the year. We’re pleased with the level of supply chain performance that we’re getting today. We are going to carry a little bit more inventory to manage anything that goes bump in the night in the year ahead. But it doesn’t require a dramatic change in component lead times for us to continue to operate at the present level.
Austin Moeller: Excellent. Thanks for the insights.
Tom Deitrich: Thank you.
Operator: Thank you. And I’m showing no further questions in the queue at this time. I will now turn the call back over to Mr. Tom Deitrich for any closing remarks.
Tom Deitrich: Thank you very much for joining the call today. We look forward to updating you again in a few months for Q2.
Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.
