Kevin Buchel: Well, the comps get a little harder each quarter. Third is a little harder than the second and the fourth. It’s $30million last year. So, when I model this, I modeled 10% hardware growth with the expectation that we could possibly do better than that and continue. We’ve been in the 20s the last several quarters. We hope we can keep it up. There is no guarantees. There is nothing we’re seeing that says we can’t do it. But when I model, I’m more conservative, so I am more in the 10% range, especially when we get to Q4, which is $30 million, and that would mean 10% would be $33 million. But our guys are charged with – I want 20% out of all of them and that’s what we’re pushing for.
Brian Ruttenbur: Okay. Very good. Then just moving on with cash. You talked a little bit about inventories, maybe coming down over the next couple of quarters. So that should produce, unless I am missing something, you can walk me through, cash should increase sequentially from second to third quarter and third to fourth quarter. Is that correct?
Kevin Buchel: That is 100% correct. So two things are happening. So as the recurring revenue grows, the cash grows with that too. We haven’t really felt it because we’ve been using a lot of that growth that the recurring brings us for inventory. So as recurring keep growing, cash grows and if inventory goes the other way, it will €“ you’ll feel the growth in cash two ways, so to speak. And so, yes, we expect cash to grow in the third quarter and the fourth quarter and beyond.
Brian Ruttenbur: Okay. So receipt pools and other things and payables aren’t going to €“ other working capital isn’t going to change dramatically. It’s all about the inventory of the cash, right?
Kevin Buchel: Exactly.
Brian Ruttenbur: Okay. And then, in terms of price increases, I believe you €“ on the product side, you had a price increase in April, 1 in July. Have you had any other price increases in the last 90 days or do you plan any in the next 90?
Kevin Buchel: We haven’t had one since that second one and we’re discussing it. We haven’t made the decision yet. But typically, we take a price increase every year. So, at the very least, we’d probably do 1 in July. We always do it. The question is, would we do 1 beforehand that we’re talking.
Brian Ruttenbur: Okay. And then, last question in terms of backlog. You mentioned backlog coming down. Are they still near record levels? I’m just worried about our €“ I have a question less worried about your visibility with backlogs coming down slightly.
Kevin Buchel: Backlogs was never a big thing here. Backlogs became a big thing when supply chain and COVID hit, and it was up to $10 million and then we got it down to $6 million and now it’s down to $3.5 million. These are still historically high levels. We don’t like backlog. We want to be able to ship dealers right when they order it. So we’re working hard. As fast as we kill the backlog, we get new orders. When the demand is strong, that’s a good thing. But even with strong demand, we are working to reduce that backlog to less than $1 million. We are not there yet, but working hard towards it.
Brian Ruttenbur: Great. Well, thank you very much.
