Sunny Sanyal: Yes, Jim, so yes our overall cash balance at the end of Q4 was $195 million. And I just want to remind looking at the balance sheet, you may not be able to get to that because it’s distributed amongst couple of lines, but the total cash was $195 million and we clearly are in an excess cash situation. But as you rightly said, we are essentially preparing for upcoming refinancing because the debt is supposed to mature in June of 2025, but it would go current in June of 2024. So essentially, we are building up the cash balance to approach refinancing with strength and at the same time take care of some of the excess cash situation. At this time, priority is to – from a capital deployment perspective, the priority is to fully fund the operations and then followed by deleveraging. And lastly, and then beyond that would be an inorganic growth.
James Sidoti: Okay. All right. Well, thank you. Thank you for taking the questions.
Sunny Sanyal: Thank you, Jim.
Operator: Our next question comes from the line of Larry Solow with CJS. Please proceed with your question.
Sunny Sanyal: Go ahead, Larry.
Larry Solow: Thank you, and hey, good evening guys. I guess first question just on the medical weakness on revenue, is it sounds like you guys are feel like it’s mostly China, whether it’s economic-related or mostly the – just the increased scrutiny in this – in the anti-corruption environment, but anything on – just on the U.S. side of it. And I’ve seen a lot of hospital-based companies just having issues with hospital spending budgets. I know you being a little bit tight obviously hospitals aren’t doing well in a high interest rate environment either. And I know you guys in 2023, I think we started out good, then we got a little bit more – a little more conservative and then less in Q3 things were a lot better. So any – but it feels like you haven’t spoken too much about negatives there, but I’m just trying to connect those dots. Thanks.
Sunny Sanyal: Let me make a comment my last time to chime in. So there were many puts and takes Larry. First of all, first quarter is a seasonally lower quarter. And secondly, the situation in China put it – puts additional burden on the medical side. So that, that is what’s driving the – pressure on the medical in the first quarter. And then of course, then compounding the fact that industrial had a strong fourth quarter and we’re just seeing a month-to-month kind of a issue there. In terms of the U.S. and the hospital market, our general perception and what we’re hearing and seeing is that the hospital’s – health of the hospitals is improving. They’re reporting better operating expenses controls. So we think that they’re in a better position going forward into the next year to for capital deployment.
So no real concerns there. What we want to make – what we we’re trying to get our head around is how and when the Chinese situation will turn around.
Sam Maheshwari: Yes. Larry, I would add that if you look at our Q4 results, revenues in Americas improved sequentially over third quarter, and then EMEA also improved over the third quarter. The place where you typically would want to see a growth, but it declined in fourth quarter was APAC. And we talked about China driving that. So Americas and EMEA, they both grew and the impact was through China reflected in APAC. And from Q4 into Q1, there’s a seasonality that is coming in and we then expect to resume the growth from there in Americas, EMEA, et cetera. And then the China, as we’ve already talked about, it is somewhat of a situation dependent. And my – as and when this anti-corruption campaign gets over, we hope to begin to grow from there in that region.
Larry Solow: And specifically China, and I know you’re not guiding, as you look at the 2025, but it feels like the next few quarters, it’s hard to time exactly when the shakes out. But any concern, I mean, that when as we get back to normalization that we’re at a lower level, it feels like I know the – there’s been any change in sort of that mid to longer-term outlook for the build out of CT in China. Anything there of significance?
Sunny Sanyal: Larry, nothing particular. First of all, if you – if based on the anecdotal and customer feedback, we think what’s been happening over the last several months is a significant reduction in new system placements. So that means the volume of business that we’re getting from China has been primarily grew. China for us is mostly tubes and mostly CT tubes. So the business that – the volume of business that we’ve been seeing has been replacement tubes to keep their hospitals and healthcare systems running.
Larry Solow: Right, right, right.
Sunny Sanyal: So that we think is a good baseline for us. So from here on, as business comes back, there is going to be some amount of pent-up demand, which will adjust the levels back up, and then we expect it to grow back from there. Now we’ve grown – China business has grown at 20% plus per year. We don’t – and we’ve said before that that is not sustainable. We expect growth to come to what would be kind of secular levels for China, which is in the 8% to 10% type of a range. So that’s what we think will happen. It’ll bounce back, there’ll be a little bit of pent-up demand, which will raise the baseline and then go back to a little bit more traditional growth rates.
Sam Maheshwari: Larry…
Larry Solow: Right. Okay. I know you’re not guiding – yes, yes, I’m here. Yes, sorry.
Sam Maheshwari: No, go ahead, Larry. Go ahead, please.
