Matthijs Glastra: Yes, first and second half of 2024, so the products start ramp, full production will probably go roughly around in the end of December. So the full effects of that really won’t be felt until 2024. And then the launch cycle around production of the medical consumables will be very customer-specific. And so, it depends upon how customers want to stock safety stocks around that. It depends on how their qualifications work out, their FDA processes. And so, the full effects were really a back half of the year is the easiest way of thinking about it, where we start all new products, all new medical consumables are launched out of that facility. Now, similarly, in our Manchester facility, we will be launching all new products out of that facility as well.
So, that facility will be up and running, really by the end of the first quarter, fully in production phase. And so, products will be coming out of the second half out of that facility, again putting us in a great position to deliver a higher gross margin.
Robert Buckley: Yes, and then you have in some of the other product categories more and more intelligent subsystems, which, you know, have a higher margin profile as well. Also that will launch in the second half. So think about laser beam steering or precision motion related intelligence subsystems, right, that are starting to gear up in the second half of 2024 as well.
Brian Drab: Okay, thanks for answering those questions.
Matthijs Glastra: Absolutely.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Matthijs Glastra for any closing remarks.
Matthijs Glastra: Thank you, operator. So, to recap, Novanta had a solid operating performance in the third quarter of 2023. We beat our own expectations for margins, profit and cash flow, and saw solid sales in medical markets, helping to offset declines in industrial markets. We’ve maintained a robust level of backlog coverage while reducing our past-due backlog, and we see continued tailwinds in our medical businesses that should help partially mitigate growing pressures in the industrial capital spending. We’re progressing our innovation pipeline and are excited for the large product launches happening later next year. Novanta remains very well positioned in the medical and advanced industrial end markets with diversified exposure to long-term secular microtrends in robotics and automation, precision medicine, minimally invasive surgery and Industry 4.0. In 2023 and beyond, we will continue to focus on executing our new product Super Cycle, design wins in high-growth applications and doubling down on the Novanta growth system, driving cash flows and gross margin expansion.
In closing as always, I would like to thank our customers, our employees and our shareholders for their ongoing support and commitment and continue to be impressed and specifically grateful for the dedicated efforts of all our Novanta employees, who work diligently every day to tackle new opportunities, manage through new challenges, and make Novanta a great place to work. We appreciate your interest in the company, and your participation in today’s call. I look forward to joining all of you in several months on our fourth quarter and full-year 2023 earnings call. Thank you very much. This call is now adjourned.
Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.
