David Silver: Okay. And then just last one for me not the biggest issue, but there was a commentary, a comment or two regarding your share repurchase authorization and whatnot. And this is just my opinion, but I don’t necessarily think your typical investor is demanding that kind of activity on your part. But just remind me, I mean, is your authorization there to offset dilution? Is it for handling options related issuance? I mean, how do you anticipate your share repurchase activity fitting into your overall capital structure and cash deployment strategy?
Shelly Chadwick: Yes, I’ll take that one. Thanks. We think a lot about capital allocation and where we want to invest our money. We do have the 8 million available on the share repurchase program that was last authorized, but we haven’t had any activity on that in a couple of years. And really the reason is because we’re more focused on that organic growth. So deploying our capital to our organic growth is more important to us right now than kind of offsetting dilution or bringing that share count down. And we think we’re delivering really well. The returns are very good. So we’ve got that lever there. Should we choose to use it? But right now it’s something we’re not very active on.
David Silver: Makes perfect sense. Okay. Thank you very much. I’ll get back in queue.
Jugal Vijayvargiya: Okay. Thanks, Dave.
Operator: Thank you. The next question is coming from Samuel McKinney from KeyBanc Capital Markets. Samuel, your line is live.
Phil Gibbs: Hey, good morning. It’s Phil Gibbs. How are you?
Shelly Chadwick: Hi, Phil.
Jugal Vijayvargiya: Good morning Phil.
Shelly Chadwick: Hi Phil.
Phil Gibbs: Thanks for talking about the aerospace and defense and space market and thinking about those buckets kind of leads me into the question that I had. How much is space right now as a percentage of that total bucket? And I would think that includes satellites and commercial space?
Jugal Vijayvargiya: Yes. Well, it’s becoming a much larger part, right? As you know, Phil, right? You’ll be following our company for quite a while and space was relatively small component of our business, more related to government type activity or just large projects such as the James Webb or something like that. And now, space has become a much larger part of our component. Defense has continued to grow. The commercial aerospace has continued to grow. But I would say — I’d say, probably we’re looking at maybe about a quarter to a little less than third is probably the space component, but I would expect to continue to see growth in that in that business.
Phil Gibbs: Thank you. And then, well, a lot of questions on margins, on electronic materials, but hoping to just simplify it a little bit. Obviously the mix wasn’t ideal in the quarter. And it sounds like you’re shipping under your production rates, which impacts absorption greatly when you think about that type of business. If you were shipping in line with your production rates, and if your mix was, let’s just call it an average or something more ideal, where should margins have been?
Jugal Vijayvargiya: Well, look, I mean, we’ve sat all along that that we need this business to be contributing positively to our goal of 20% EBITDA margins for the company. So I expect this business to be able to deliver those types of margins. I mean, we saw what this business was able to do in Q2 and Q3 when it had decent mix, even though we had a little bit of a sales challenge in Q2 and Q3. So I expect this business to be able to deliver favorably towards our 20% EBITDA target.
Phil Gibbs: And the last one for me on the H.C. Starck acquisition from late ’21 there was a little sliver in that business that was non-tantalum based. I think some of that was going to be directed toward clean energy. Any thoughts or comments that you can make along those lines? Thanks so much.
Jugal Vijayvargiya: Yes. You’re absolutely right and your memory is correct. I mean, we did. And I can tell you that that business is doing extremely well. Both the tantalum side by the way of non-semi application, I’ll say, as well as non-tantalum business where we have pursued other markets and have grown in other markets. So, I can tell you that that business has done extremely well over the last year and a half or so with our team. And I expect a continued growth in that business over the next over the next few years.
Phil Gibbs: Thanks. Best of luck.
Shelly Chadwick: Thank you.
Jugal Vijayvargiya: Thanks, Phil.
Operator: Thank you. The next question is coming from Dave Storms from Stonegate. Dave, your line of life.
Dave Storms: Good morning.
Jugal Vijayvargiya: Good morning, Dave.
Dave Storms: Appreciate taking the question. Just to kind of want to start looking at the general market this year, first, last year kind of what is the general customer acquisition and contracting environment look like?
Jugal Vijayvargiya: Yes, I think the acquisition and contracting environment has been good even though the markets, the actual sales in ’23 were challenged in some of the markets. As we’ve talked about new business activity and new product development activity has continued to be strong. And as a result, we’re seeing some of those things already convert into new business wins, but we would expect more of that to happen during ’24. So, I think what’s been positive is that customers did not really slow down new development, new R&D activity, therefore working with us, and so, we would look for those to materialize and contribute to our, towards our one to three year sales window.
Dave Storms: That’s perfect. Great color. And just kind of sticking with those business wins, obviously as we’ve discussed, you’re very well aligned with some really cutting edge technologies LIDAR, the AI, clean energy. Are there any of these technologies that you see as having, like particularly strong potential to take a leap and scale up over these next 18 to 36 months?
