Tom Ernst: Yes. Thanks for the question. Certainly, those are both drivers. Mark, we look over the long run. So our experience in the actuals to-date through fiscal 2023 was it was a significant year of investment for us in terms of getting SymBot out in prototype and proof of concept and getting these first almost 4,000 units now of feel tested. So, there’s been a net investment relative to their prior generation in the actuals. It’s not something that changes kind of in a stepwise way as we look forward, Mark, but it is something that we do anticipate seeing leverage as we deliver the next units going forward. This is leverage as we come from two primary drivers. First, it’s engineering change and final release kind of gets out in the field, which drives better performance.
And then it’s scale manufacturing with outsourcing partners brings the cost of those units down which drives of the margin. And so that’s going to — we anticipate that as we plan out over the coming several quarters, those improve kind of consistently over time.
Mark Delaney: Okay. That’s helpful. And my second question was just thinking about the backlog and the opportunity to expand with some of the current customers and a lot around GreenBox and of course, Walmart is a key customer and has something you’ve spoken on to the extent you’re able to. But when we think of some of the other comers Albertsons, Target, you’re trying to get into any specific customer plans. But when we think about some of the other customers who do have systems, what do you think it might take for some of those other customers to expand and place new bookings with you? And is that something they’d want perhaps in-house or maybe that’s GreenBox, but just wondering when we may perhaps see some additional backlog for some of these other customers and what it might take for them to put those bookings in.
Rick Cohen: Yes. So I’ll take that. So this is Rick. So I think from a good example would be with Southern Glazer’s, so our first site for them, it’s been announced is Las Vegas and it’s a big site. But they — but that space is regulated. And so it’s state by state. So they may end up actually wanting smaller systems in a number of places. And I think we all expect some of our other customers, they want smaller systems and smaller systems, surprisingly, are more difficult in the sense of they’re easier to build. But if you have less parts to them, they have to be more reliable. And so, we’ve been working very, very hard — that’s what I was talking about, the new chipsets, the reliability, the artificial intelligence, the ability to run a site remotely.
So, I think we’re having those discussions with people now. We’re having similar discussions with people in, for instance, in a GreenBox opportunity that’s saying I can’t — I don’t want to put out the capital now, but if I don’t put up the capital, I don’t save any money. So, I’d rather do a small GreenBox system or participate because at least sell money. And so all of those factors are in play, and that’s — we’re attacking all of them at the same time, but it’s not one size fits all.
Tom Ernst: I’ll just add to that, Mark. So we have deployments with seven customers in flight. The strong majority of those we’re giving them a system at a time. And so I think as we move forward, the strategy is not to add customers that have a large amount of backlog. You’ll probably see more of kind of the mix we have now, where we’re giving customers on site at the time is common.
Operator: Our next question comes from the line of Jim Ricchiuti from Needham. Your line is open.
James Ricchiuti: When you talk about smaller systems, how much of a role, if any, does BreakPack play in this as you begin to think about different types of deployments?
Rick Cohen: Yes. So BreakPack — so BreakPack is something we’ve talked about. It’s actually very few customers at this point that have seen the BreakPack operation, and it’s still a prototype. We’ve learned a tremendous amount, and it’s working very well, but there’s a lot of innovation that we will have on the BrakePack 2 site. We have a lot of customers that are saying when it’s ready, please let us know.
James Ricchiuti: But you don’t see this necessarily — will this be a key element as you go forward and pursue — be able to offer customers smaller deployments? Or is — should we just think about the traditional system that you have scaled down for a smaller deployment?
Rick Cohen: Yes. So — but the answer to your question is both. So we could — so you could sell a small system that supports in a BreakPack system. So let’s say somebody has more slower-moving items or as a smaller retailer, they still have their fast-moving items. But our system, the main system provides a storage sortation and selection solution. But then for instance, somebody that is shipping totes or shipping smaller quantities to drug or convenience, they could put a small regular system in combined with a BreakPack and that would be a very good solution.
James Ricchiuti: Got it. And final question. Tom, I thought I heard you mentioned that there was some modest level of revenue instead came out of fiscal Q1 into Q4 that potentially drove some of the upside to revenue. So I wonder if you can quantify it.
Tom Ernst: That’s right. That’s right. So, a modest level, so I don’t want to quantify that hard, but think about it mid-single digit percent.
Operator: And our last question for today will come from the line of Rob Mason from Baird. Your line is open.
