It’s not like it’s over in the mid-30s, but I think it’s premature to get into too much detail. So the next stop is the mid-30s and we think we’re going to get there and we’ve got good plans in place to do just that.
Scott Buck: Great. Well, I appreciate the additional color guys. Congrats on the quarter.
Lee Rudow: Thanks, Scoot.
Operator: Thank you. Our next question comes from the line of Gerry Sweeney with ROTH Capital Partners. Please proceed with your question.
Gerry Sweeney: Good morning. Thanks for taking my call.
Lee Rudow: Good morning, Gerry.
Gerry Sweeney: 2 questions. I’m going to start with maybe just NEXA. I know you just discussed the part of your — part of the strong growth we’re seeing, but I’m just curious, very complementary business. How much of an opportunity is there for cross selling or how big of an opportunity does NEXA open up for growth?
Lee Rudow: We think it’s substantial. So we’ve been with NEXA for about 16 months, 17 months now, coming up on a year and a half. And so right out of the gate, we were able to sit at the same table, if you will, both Transcat and NEXA with certain strategic customers of ours. And the combined pitch, the value proposition that we were communicating resonated really well. And we even had some early wins, literally a quarter after the acquisition took place. We’ve seen that continue throughout the subsequent three or four quarters. And when we look at our pipeline now and we look at how we’re managing that relationship, how we’re managing the synergies, which, obviously, are getting better and better as we get to work with each other.
I think there’s a lot of upside there. I think our sales team thinks that, the NEXA team thinks that and that goes both ways, which is actually kind of interesting. They have picked up business by virtue of our customers and vice versa. So substantial would be the word I would use over time. It’s a great question and we’re encouraged by the (ph) since the acquisition.
Gerry Sweeney: Would you say pipeline continues to expand? Is that a — as you’re getting deeper and deeper?
Lee Rudow: I think that’s reasonable.
Gerry Sweeney: Got it. Second question, just a little bit more further out on the curve. Obviously, Complete Calibration, I think it’s your first lab I will say in Europe. Is this a toehold? Are you looking at other opportunities in Europe? I know Ireland has a lot of life sciences, but maybe mainland or any thoughts on that?
Lee Rudow: Well, it’s interesting. When you think about the calibration lab that we bought in Ireland, I would characterize it two ways. There’s two things going on in Irelandm one is calibration. Yes, we have a foothold that we’re going to build a lab. We will have a lab there. We will go after calibration business in Ireland. When you have the calibration services you have to think of that as almost a local business. So calibration in lab can service Ireland pretty well. Not to say we couldn’t service outside of Ireland from Ireland, but generally speaking, we think of that as a local business. But we have 40 or 50 employees in Ireland working on the NEXA side of the business, we can always call it professional services where they’re doing the consulting work and some of the things we alluded to in the script.
And that’s not calibration services. And what’s interesting about that particular channel, Gerry, is that, you can expand further out beyond the borders of Ireland fairly easily. So most of that work is done in front of a computer. You do a site visit and then most of your work can be done anywhere. And so I see that platform, in particular, being able to expand at a faster rate and at a greater rate than the calibration lab, which, yes, we’re in Ireland and we plan on developing our (ph) business there. So I look at it both way.
