David Sylvester: Thanks, Rex.
Sara Armbruster: Thanks.
Rex Henderson: I wanted to draw attention to a comment that you made in the press release, and — which you made, Sara, you made on your comment about part of the beat on — for this quarter was due to increased project orders from large corporate customers. Can you reconcile that you know kind of the common wisdom these days is that it’s a mid-market that’s doing better and big corporations or not, and you’ve mentioned that — your guidance is also for lower orders for large corporate. Can you tell me a little bit more about what those projects were? How sustainable they are and kind of how that — how that continues to flow through next year, if at all?
Sara Armbruster: Yeah, maybe I can give some color on the comments. I think one of the things that we’ve seen from large corporations recently is more investment in, I’ll say, significant projects. So we’ve talked in previous quarters about how many of our larger customers have been interested in discussion and conversation and some of them had moved into pilots or small scale. I’ll say tests of new space idea, but I think more recently we’ve seen more energy, more interest, and more actual orders that tie it to true action where customers, at least some customers are making bigger investments to renovate an entire building or to move into a new location and obviously just kind of the scale of those types of projects, generates higher revenue for us because they’re bigger.
So, I think the reference to large corporate projects is some evidence that we’re seeing more and more customers who have been thinking and talking and experimenting and highlighting, starting to make bigger commitments to their future workplace strategy.
Rex Henderson: And is that . Go ahead.
David Sylvester: Well I was just going to add a little bit, some of the specifics of the like the product that’s being ordered or looked at is, it’s really emphasizing what Sara was talking about in her scripted remarks. I mean privacy is a big deal. In the future, privacy in the open plan, privacy or private office applications. Collaboration also is a big deal, where architectural walls are under higher demand right now. So it just speaks to more sub-standard change. Now, full transparency, we also have some large orders that are being thought about that are just more freshening up the office. The clients want new chairs for when their employees come back or something like that. But the common themes are what Sara summarized.
Privacy and collaboration are big deal, which is great I think for the industry for the next couple of years as the offices — as our clients deal with what it’s going to mean to have people back in the office more significantly and living on video, they’re going to need to facilitate collaboration and privacy, and that’s going to be change and change is good for us in the industry.
Rex Henderson: And you mentioned that the first three weeks of March order levels have been improving. Is this sort of activity contributing to that?
David Sylvester: Yes.
Rex Henderson: Okay. All right. Is it — you’re still expecting a lower large corporation orders for the year. Could this kind of activity change that outlook over the coming year?
David Sylvester: Well, maybe clarify as we weren’t projecting orders from large company. We’re projecting revenue from large company. So .
Rex Henderson: Okay. All right. And that’s based on backlog at the moment, right? Okay.
David Sylvester: Yeah, exactly, so we start with a low backlog and it will take a while for large corporate to really get that engine restarted if it in fact is going to more significantly restart.
