Michael Toomey: Hey, guys. Thanks for taking my questions. Mike Toomey here from Jefferies covering for Xuyang Li. Most of my question has been answered, but just two, please. Can I ask a follow-up on the photon accounting? When do you think that this could start contributing to the revenue for you guys? Are we talking in the next two years or longer term? And anything you’d highlight on either pricing from your side or costs kind of easing or stabilizing, whether that’s globally or in China? Thanks for taking my question.
Sunny Sanyal: This is Sunny. I didn’t catch the second part of the question. So, let me answer the first one.
Michael Toomey: Sure.
Sunny Sanyal: I think cut — the cost question. We’ll come back to that. So, photon counting. So, there’s — there are — in addition to — we talked about CT quite a bit about photon counting applications for CT. That is — that’s a longer duration project. Those are — our typical cycles for these types of projects are three to five-ish type of years more — and this being a new technology more on the five-year side. However, we’ve been working with our customers now for about a couple of years. So, we’re looking at about a three-year type of horizon for when we expect our CT detectors to start contributing in any measurable volume, so to say. Between now and then we will see some amounts of prototypes and low volumes of shipments.
There are other applications within photon counting that are also being contemplated. Those will also be within that two to three-year window, but those are for other modalities. And there you’ll see the revenue contribution to be modest. A large chunk of our photon counting detectors are being sold — a larger proportion of our photon counting detectors are going into industrial for food inspection and other applications, high-speed, real-time imaging applications in industrial. Those are short cycle. Those are happening continuously, and we’re counting on industrial to contribute to the growth of photon counting in the near term.
Michael Toomey: Okay. All right. That’s really helpful. And just to reiterate the second question was just if there’s anything on price that you’re charging, any pressure on pricing and any change — significant changes in the cost.
Shubham Maheshwari: At this time, the supply chain driven issues they are largely behind us. I would say that freight is quite manageable at this time. And from the raw material cost perspective, things have begun to normalize or they’re rather stabilized at this point. We talked about price increases about 12 to 18 months ago. That round of price increases has largely been completed. And other than on a spot basis, we are not embarking upon any new across-the-board price increase type of a campaign at this point. But we are looking at here and there different situations where we need to work on certain price related initiatives, which we would do. And in case inflation picks up much more than what we are planning, then we would address it through a campaign of price increases. But that is not front and center for the situation at this time.
Michael Toomey: Okay. Great. Thanks very much.
Operator: Thank you. There are no further questions at this time. I’d like to turn the call back over to Chris for closing remarks.
End of Q&A:
Christopher Belfiore: Great. Thank you. I’ll now turn over the call to Sunny for some final comments.
Sunny Sanyal: Thank you, Chris. In closing, as always, I’m very proud of all the hard work of our employees globally as they work to support our customers every day. We’re looking forward to our customer successes with incorporating our technologies and also looking forward to their success this year with new product launches. So thank you for taking the time to join us today and for your continued interest in Varex.
Christopher Belfiore: Thank you, Sunny, and thank you all for your questions and participating in our earnings conference call today. The webcast and supplemental slide presentation will be archived on our website. A replay of the quarterly conference call will be available through February 20th and can be found at vareximaging.com/investorrelations. Thank you, and goodbye.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
