Operator: Your next question comes from the line of Jonathan Ho with William Blair. Your line is now open.
Jonathan Ho: Hi, good afternoon. Just wanted to start out with some of the delayed payments that you were seeing from your customers. Are you seeing that behavior maybe persist? Or are you sort of building that into your guidance just given some of the challenges around cash flow management that everybody’s sort of facing?
Mark Aslett: Sure, Jonathan. We saw it a little bit in Q1. We talked about it on the Q1 earnings call, we saw a little bit more of it in Q2. Now remember our fiscal Q2 is our customers’ year end. So we did see them managing receivables to us, at the end of the quarter and as we mentioned, is about 30 million that we saw, held that was due for us in the quarter. We’ve received all of that already in Q3. So it was just a couple of weeks or less than a week delay as they straddle their fiscal and calendar years. Going forward, I think we’ve got a really good group of customers that normally pay on time. And so we’re managing that with them. We also put in the factoring facility that I mentioned, and we use it exactly for this reason, Jonathan, which was a tool that we have, that’s a very low cost of financing to us, in order to mitigate the impacts on our cash flow statement in our financials, because of our customer behavior.
So we feel good that we’re in a position to manage it from an organic standpoint, but we also have a tool in the factoring facility, should we need to use it, should we see this behavior continue.
Jonathan Ho: Got it. Got it. That’s helpful. And then in terms of some of the pricing actions that you’ve taken how should we be thinking about, like the timing, and sort of the magnitude of how that flows through like, I know, there’s a variety of different actions across both the pricing of services as well as products, but any color would be helpful, thank you.
Mark Aslett: So pricing has obviously been a one of the major elements of the impact program. And so we stood up a pricing center of excellence, to try and drive strategic pricing and best practices in both pricing and cost estimation, depending upon the part of the business. In the commercial portfolio I think the team’s done a really good job. And we’re actually offsetting a significant amount of the inflationary pressures that we’re seeing on the semiconductor side of things. So focus on value based pricing. We’re looking at the discount and the quotes validity. And I think, as I mentioned, on the last call, we did do and across the board, price increase on our commercial products at the start of the year, that is really the major driver of offsetting the inflation pressures that we see there.
On the non-commercial portfolio it’s slightly different right here. It’s largely some of the cost disclosure type of the the business. Here we’re really mainly focused on wherever we possibly can, passing through both material and the labor inflation costs that we see as well as trying to do a better job in monitoring the scope creep with customers and monetizing those, as well. Now depending upon the type of contract and what’s already in backlog the ability to be able to pass through those costs obviously there could be a time difference there. But I think overall, the team’s doing a pretty good job. I think the inflationary headwinds with the work that we’ve done, aren’t as detrimental to what we thought they could be coming into the year.
Mike do you like to add anything?
Mike Ruppert: No. You got it.
Jonathan Ho: Thank you.
Operator: Your next question comes from the line of Sheila Kahyaoglu with Jefferies. Your line is now open.
