We’ve got to work our way through it and then eventually we’ll be exclusive with lower cost parts for our radios. I think we’ll start to feel a difference a little bit in Q3, more in Q4 and certainly in fiscal 2024, I think we’ll really start to feel it and as we work through that inventory, it will also help reduce the inventory overall, which we’re carrying a lot of extra inventory because we don’t want to be short at all with radios. Radios leads to recurring, which leads to going on forever.
Jim Ricchiuti: All right. And then just 1 quick final question, if I may. Just remind us about ISC West and the impact that has on SG&A in this current quarter?
Kevin Buchel: ISC, okay, go ahead, Dick.
Richard Soloway: ISC, I’ll do the first one. ISC West is the biggest Trade Show in the industry and we’ll get to see lots of dealers, which are great buyers and we’ll be able to pick up a lot of market share. We show a lot of new products at that show. We have a very large out, right in the main section. It’s very important to show our products. We’ll have our sales teams out there. We’d like to have any customers and also financial people come out and see it. You’ll get a feeling for the power of NAPCO in the industry and you can hear the dealers talking to us. As far as what the costs are, Kevin, maybe you can explain that.
Kevin Buchel: Yes, so, it will hit €“ the show is March 28 through the 31st. So it’s a Q3 for us fiscal Q3 expense and expense well worth it. But it’s dollars plus hit to SG&A. So, for those of you that are modeling SG&A, remember that SG&A, in Q3 will have that expense in it and should be somewhere in the neighborhood of $500,000 to $600,000 higher than what you saw in this quarter that we just finished.
Jim Ricchiuti: Got it. Thanks, very much.
Kevin Buchel: Thank you, Jim
Richard Soloway: Thank you.
Operator: Our next question comes from the line of Brian Ruttenbur with Imperial Capital. Please proceed with your question.
Brian Ruttenbur: Yes. Thank you very much. First of all, the gross margin question, it looks like gross margins are going to continue on the equipment side expanding what you just talked about, do you expect steady services gross margin is 89% sustainable?
Kevin Buchel: Well, I modeled this back then when we did our 150, 150 goal at 80% and I was thrilled at that time to be utilizing an 80% gross margin and it just keeps growing and growing and growing and growing. I thought the top was 85% or up to 89%. It keeps growing mainly because we are selling more and more fire radios. And that’s €“ we get more money for those. So the margins expand. I think, if I was modeling this, I use mid-80s, maybe we’ll keep it in the high 80s. It’s not going to go below mid-80s, maybe we’ll even hit 90%, it’s possible. But mid-80s is certainly great enough.
Brian Ruttenbur: Okay. And then, in terms of equipment revenue growth, you beat me by a couple of million on the top line in revenue in the period. Is that – $27 million, $28 million, is that a sustainable number for the third quarter what you had in the second quarter?
