Derek Soderberg: Yes, thanks for taking my questions. Just piggybacking off of one of the last questions. With the new hardware and software innovations, will all of those be pushed out to systems currently in operation and any new systems? Or is it more of an optional add on for customers? And then I’m wondering whether or not the – any of the new hardware or software innovations turn into either cash payments or upside to existing contract terms or anything like that. And then I’ve got a follow up.
Carol Hibbard: So, I’ll start and then Rick can add at the end. So it depends. And so the innovations that we have in flow, we typically focus on several things. We’re innovating for looking at R&D and additional enhancements to our systems. And so we do view those as potential opportunities in the future for additional revenue and additional sales. We also continue to innovate and look at R&D for how we’re going to make the systems more efficient from an operational perspective and focus on reliability. So some of those enhancements are being rolled out to the systems we have in flow today and will be part of what’s in our contracted backlog. And then the third, which we’ve talked quite a bit about, is we’re focused on innovations that will drive cost out of either system deployment or system operation.
And so there’s a mix in there. And so some of the innovation that we’re working on absolutely is driven to our current customer set, but others would be growth going forward.
Rick Cohen: Yes. The other thing is that we’ve always contemplated that if we can make the bots go twice as fast and you need half as many bots, who gets that income. And so either we charge for reduced maintenance, or if we take, and we have the same number of bots that go twice as fast and the palletizing cells can do twice as much work, we would be entitled to a recurring income stream for the additional work that we’re doing. That’s always been contemplated, but we’re not there yet.
Derek Soderberg: Got it. And then as my follow up, just to clarify some of your commentary, Carol, I think you said there are some lower margin projects out there. Can you talk a bit about what’s changing on the project front that would characterize a project as low margin at this point? And what kind of step up in gross margins might we see after? I guess some of these low margin projects are worked through this year? I’m just looking for you to kind of clarify some of that. Thanks.
Carol Hibbard: Yes, so we’ve got projects in flow that were our earlier innovation projects, some of them fairly early systems, proof-of-concepts are included in there. And so as they burn off, you’ll start to see our gross margins step up. I’m not going to tie a specific timeline to those because the schedules vary, but you should expect into next year gross margin to start stepping up.
Derek Soderberg: Got it. Really appreciate it. Thanks.
Carol Hibbard: Thanks, Derek.
Operator: Thank you. And this does conclude the Q&A session for today. I would now like to turn the call back over to Jeff for closing remarks. Please go ahead.
Jeff Evanson: Thank you, Lisa. And thank you, everyone for joining our call tonight. We appreciate your interest in Symbotic, and we look forward to seeing you online for our Investor Day. Goodbye.
Operator: This does conclude today’s conference call. Thank you for joining. You may all disconnect.
