Walter Liptak: Okay. Good. Yes. So just to be clear, there was the steadiness that you were speaking of that was signed throughout the quarter and not just on average, but including in that 45-day period where other parts of the business soften.
Joe Kelley: Yes. As we said, it’s — the term, as I would say, a multi-speed economy. You have some that are going down, some that are steady and some of that are growing nicely. And I would lump that business into the steady growth in line with our long-term expectations.
Walter Liptak: Okay. Great. Great. And then just as a follow-up in IPS, how are you feeling about price cost? It sounds like you were a little bit positive this quarter, how are you feeling about the rest of the year?
Joe Kelley: Yes. So price cost, again, as we communicated in Q4 and here in Q1, it is net favorable from a gross margin dollar standpoint, but it is dilutive from a gross margin percent standpoint. But we have been successful in passing through the inflation but not passing through the inflation plus the 55% gross margin. So in diluted — it’s diluted our consolidated Nordson margins by about 100 basis points. And I would tell you this division has been successful and they incurred a significant inflation. And so passing that through this division clearly has, I would say, led the way and been successful in that pricing initiative.
Walter Liptak: Okay. That sounds great. Thank you.
Operator: And we will take our next question from Jeff Hammond with KeyBanc. Your line is open.
Jeff Hammond: Hi, good morning.
Sundaram Nagarajan: Good morning, Jeff.
Jeff Hammond: So you guys gave a lot of great color on kind of where the softness is. But I’m just wondering if you can kind of maybe parse out the split between — it seems like IPS, no change. And then maybe the split between medical and ATS in terms of like the cut? Is it 50-50? Is it heavier one way or the other?
Joe Kelley: Yes. I would tell you, as I — if you think about the change in our guidance, and so we dropped the midpoint on revenue, $65 million, the majority of that is simply in response to the semiconductor, what we’re seeing in that market. And so — from a segment perspective, the reduction is greater in ATS than it is in the MFS segment.
Jeff Hammond: Okay. That’s really helpful then. And then just — what are you hearing in terms of how long this medical destocking will take? And kind of what have you built in there?
Sundaram Nagarajan: I think the way to think about this — and I’d love to be able to give you a more precise answer on when this is going to come back. What I can tell you is the declines have stabilized, and we are beginning to see some recovery in order entry from big biopharma customers. And that is — that’s based on what we see today. I would hate to give you any more detail because it will be more speculation from my perspective. I feel really good about our loan because we feel this is going to be a strong high single-digit growth company. This is — we have no — our long-term prospects on secular growth drives of single-use components in this space still holds good. We expect a further more increasing use and less increasing use, but not answering your question on when exactly we will see this fully normalized.
I sure hope it will be sooner than later, but — what I — what we are beginning to see and we feel confident about is that stabilized beginning to see recovery.
Jeff Hammond: That’s great. And just —
Joe Kelley: I mean, that was part of the change in the guidance. If you think about our Q2 guide before, we thought the recovery might come in Q2, it appears to be delayed about in our guidance a quarter.
Jeff Hammond: Okay. That’s great. Just last one on CyberOptics. I don’t know if there was seasonality, I don’t recall it from their filings is, is the 1Q kind of revenue contribution run rate the right way to think about the go forward? Or is there some seasonal step up? Or — and maybe just — I don’t know, it seems like that business is softer. Is that business going to be down year-on-year?
