Tim Oliver: Yes, I should have been clear. We had a very big second quarter a year ago in SCO shipments, we have a large rollout from one of our major customers. We did not have that in Q of this year. But we’ll have a similar rollout in Q3. And so, it made the comparison in this year’s Q2 easy, I mean, are harder and should make the one in Q3 a little bit easier.
Matt Summerville: Got it. Okay. And then just with respect to the self-service banking business maybe comment just globally on what you’re seeing overall, in terms of ATM demand. And I thought you did a great job in hospitality talking about, how adding an incremental site for platform and payment is worth X and Y. Could you do the same thing? What does that math look like for ATM as a Service? Thank you.
Tim Oliver: Yes, the ATM as a Service business. If you take the revenue stream over the first seven years of the life of that ATM, it’s going to be about two and a half times the revenue that you would have gotten from an upfront sale with perpetual license and a service agreement. And when we wrap the totality of the ATM as a Service business around a unit, you should expect two and a half times the revenue over that seven year period. As you know, as in a traditional sale, our current model, much of that revenue occurs in year one. In the new ATM as a Service model, that new two and a half times revenue will occur linearly across the seven year period with a crossover point in about 22 months and when your crossover revenue will start to creep to the upside.
Matt Summerville: And then just overall comment on global ATM demand, maybe add some original color as well?
Tim Oliver: Yes, good, good everywhere. As we said in the first quarter, we anticipated coming into the year that our revenue in this business would be down 3% or 4% for the year entirely driven by some flat units, entirely decline driven entirely by the shift of recurring revenue or ATM as a Service. We’re going to hit or exceed our ATM as a Service numbers for the year. And in fact, this business will have revenue close to flat or up slightly for the full year. So, we are three or four points better from a growth dynamic in this business than we thought when we started the year. And it’s everywhere. The demand is very good everywhere, but we enter Q3 with a little more backlog than we had in Q2.
Mike Hayford: I would like in the comment. So, we think the demand environment is still good out there for ATMs, but we’re also benefiting from maybe the challenges one of our close competitors is facing right now. And then, I think the other big part is Tim talked about ATM as a service I think we hit that market just about right in terms of when we came out an offering as the demand side has shifted to have more full service, full stack outsourcing. We just have been there with, we think the best offering. So, I think those two things combined, have created a much stronger year in self-service banking for us than we anticipated.
Matt Summerville: Great. Thank you both.
Operator: And the next question will come from Kartik Mehta with North Coast Research.
Kartik Mehta: If you alluded to this a little bit, but I want to make sure I understood. You had a fantastic second quarter, but you didn’t increase your guidance, you kind of said the higher end of the guidance. And I’m wondering is that strictly because of the separation of the company concerns about the macro environment and one of being cautious in the second half or something else completely?
Tim Oliver: You have no reason to be cautious. I think, look, we’re well ahead of our budget for both revenue and profit at this point in the half. We’re about $25 million ahead from where we thought we’d be from an EBITDA perspective, and somewhat ahead on revenue as well. If you project those forward, we will take the high end of the range, if you presume we started at the midpoint of a range will take the high end of this range. If I thought that the most likely outcome was above the high end of the range, I would have raised our guidance. But I don’t believe that’s the case. I believe that we’re painting the high end of that range that’s a likely outcome for us. So, we left it in place. But that wasn’t meant to quash any excitement on this quarter.
It was a terrific quarter. It came in much better in every regard than we thought, we made great progress nearly everywhere, strategically. And what’s really important is the cost actions we’ve taken, you can see it in gross margin up some 300 basis points, year-on-year. And we’re keeping all of the – let’s call indirect cost out that we took out last year, but it was a little harder to control direct costs. So, I feel very good about where we are. We’re going to have a great year and the second half will be better than the first I think we’ll post growth in the second half. It looks relatively similar to the second – the first half look relatively similar to the second half. We’ll differ more money, more revenue and profit to recurring revenue streams, but still grow through that and our margin rates were up about 240 basis points in the first half of the year.
