Randall Lipps: Correct. But I think what we said is we are above 60% now. It’s a little less than 40%.
David Larsen: Okay. Great. And then for semiconductors, is pricing locked in for all of your semiconductor needs for 2023 and what about 2024? And then like if things heat off in Taiwan, between China and Taiwan, are you protected from that type of an event in terms of your COGS? Thanks.
Randall Lipps: Yeah. I think, David, so we pointed out in the prepared remarks that we have $80 million of previous seats of semiconductors and into so that gets us a good way into the year to sell customer demands and we have locked in pricing for the remainder of the year as well. I would say, we are not from a risk factor perspective, we are not excluded from any geopolitical impact, and as our risk goes up, we will continue to manage it as actively as we can.
David Larsen: Okay. And then just in terms of like the hospital clients, I guess, Scott, what are you seeing on the ground? Is there enough labor available in terms of nurses and technicians to actually deploy these cabinets or is labor so tight, people just aren’t available to deploy these things?
Scott Seidelmann: Thanks, Dave. Look, I mean, hospitals are still struggling with labor challenges. I think labor expenses continue to be higher than they were back in 2021, 2022, but it seems to be getting better. I think hospitals like any other business or any other organization just takes a bit of time to figure out the new operating reality and that’s certainly what it feels like. We are not seeing at this point sort of major pushback on implementation, timing, et cetera, as a result of those labor constraints. Like we said, I think, the environment stabilized, our processes have stabilized, we know what’s working, what’s not working, which is the basis of our forecast or guidance in 2023.
David Larsen: Okay. And then it’s my understanding that there were some very favorable rulings by the Supreme Court and other courts that are positive for like the entire 340B program and hospitals should be getting a pretty significant
Randall Lipps: Right.
David Larsen: windfall from those rulings. Any sense for if and/or when that might happen and I would think that, that could drive some demand for your solutions?
Scott Seidelmann: I think there’s a lot of activity in the courts regarding 340B, some good, some bad. I think that it continues to favor our Specialty Pharmacy Service and our 340 BPA business, we are taking a cautious outlook this year on and expect it relatively to be flat year-over-year.
David Larsen: Okay. And then just the last one and I will hop back in the queue. In terms of your reported backlog, were there any changes in the way that backlog was estimated or was any backlog just kind of written-off and reversed out that might reduce like the ending backlog for 2022 or your expected backlog for 2023. Were there any changes in like the way the calculations were being done?
Randall Lipps: Yeah. So the — thanks Dave for the question. The methodology is unchanged for 2021 and 2022. We haven’t forecasted 2023 adding backlog, which you can calculate it with the numbers that we provided today.
David Larsen: Okay. Appreciate it. Thanks very much, and yeah, I will hop back in the queue. Thank you.
Kathleen Nemeth: Thanks, Dave.
