Ron Tsoumas: Those three areas are by far are most profitable products. The e-bike market, our customer, although maybe a week ago, the best two weeks ago, said that there’s still going to be over-inventoried for the duration of the year and then going into next year as well. And then we’ve studied the e-bike market and we concluded that but — and at that point with the change in their forecast, we have no choice but to bring down our estimate again very profitable and effective EPS. Now, do we expect that to return? Yes. I mean e-bikes are very popular but there was a spike during COVID and every shortage is always followed by a surplus. And that’s what our customers are seeing and we had to react to that.
John Franzreb: Okay. Just a couple of things based on your answers. Can you give us context of how much revenue e-bikes contributed on a quarterly peak and what they are contributing today?
Don Duda: We’ve — quarter-over-quarter.
John Franzreb: No. Just in general. At its height, what was e-bike revenue quarterly contribution?
Don Duda: From its peak.
Ron Tsoumas: 50%.
Don Duda: So, that’s significant.
John Franzreb: Okay. And do you think you can…
Don Duda: In the second half.
Ron Tsoumas: In the second-half.
John Franzreb: And do you think a sustainable revenue in 2025 would be about what for e-bikes?
Ron Tsoumas: 40-ish.
John Franzreb: Okay. Alright. Just wondering, I was just trying to bracket that all…
Ron Tsoumas: I’m sorry, say that again, please?
John Franzreb: I’m just trying to — I’m just trying to get the context of that business and how it’s impacting everything. And you also mentioned data centers is one of the reasons just you’re pulling down the guidance, has datacenters weakened from you from last quarter, because most of the companies I follow in the datacenter market actually posting relatively good results. And actually your guidance for the next year or so is actually fairly positive, there seems to be a disconnect with what you’re seeing in data centers or other companies [Multiple Speakers]
Don Duda: Our major customer there John has told us that they’re over-inventoried. So, it’s not the market and we’ve got one very major customer that has told us they are over-inventoried.
John Franzreb: Okay. Okay, all right. And switching off that on the SG&A expenses, I know you said these other fees in there, what would be a normalized SG&A run rate for the second half of the fiscal year, what would you expect it to be like?
Ron Tsoumas: We would expect it to be less than 17.3%, well, I’ll leave out the amortization 15.4% experienced in the quarter, but it will be higher in the second half of the year as compared to prior years being in — without amortization in a 11% to 12% range. So, somewhere in between there depending.
John Franzreb: Okay. And that reflects Nordic, I’m assuming, right?
Ron Tsoumas: Pardon me. Yes. The first quarter numbers of 17.3% and 15.4% without amortization at all in Nordic Lights, correct.
John Franzreb: Right, right, right. Okay. Okay. That’s all I had, I’m going to jump back with the queue and let somebody else ask the questions. Thank you, guys.
Don Duda: Thank you.
Operator: [Operator Instructions] Our next question is coming from Gary Prestopino with Barrington Research. Your line is live.
Gary Prestopino: Hi, good morning, everyone.
Don Duda: Good morning.
Gary Prestopino: I want to drill down on what you were talking about in your Monterrey, Mexico facility. You were basically producing center consoles they are right, that was one of the bigger products. And I think that business has gone away because the model is going away. Is that correct? Don?
