Chris Grenga: Got it. And with the go-to-market realignment you had mentioned the end markets that you intend to double down and focus on, to the extent you could, could you elaborate a little bit on the demand environment for each of the end markets? And maybe what drivers you’re seeing in terms of what drivers are creating more urgency for customers to adopt this technology, use these machines and also maybe discuss the demand environment by geography, what you’re seeing in North America versus Europe?
Benny Buller: Yes. So we still operate vastly mostly in North America, right? So our footprint in North America is much, much stronger in most of the business we are driving is still coming from North America. So a lot of that is kind of extremely North America tilted what we are seeing. And so, space and launch programs, specifically launch and specifically turbo machinery and rocket engines is what’s driving a lot of our demand in space. And then engines and new engine components in hypersonics is 1 of the main drivers for our demand in defense. These are the two most best [ph] specific that I can mention. And the ability to produce high-quality parts with tremendous complexity very quickly at very large sizes and with a lot of details. That’s really what allows — what enables our customers in their programs and that what drives the demand for those.
Chris Grenga: Got it. And do you have any insight into the utilization trends of the installed base? And how — I guess, how that’s evolved in recent quarters?
Benny Buller: I do but I will not share that. As you can imagine, we are a public company but we are operating in an environment with competitors.
Operator: Our next question comes from Jacob Stephan with Lake Street Capital Markets.
Jacob Stephan: I just kind of want to focus on the quarter. So what kind of verticals are you seeing where orders are more, I guess, retailers are more reluctant to get the product and what, obviously, aerospace was a strength in the quarter but where are you seeing kind of push out into the right?
Benny Buller: So I would say that a lot of the places where we started to engage with customers in applications that we have not proven yet — value are places that take longer. And these are basically a lot of the segments that we didn’t touch upon in this — as kind of areas of focus. So these are areas where our footprint is very preliminary, usually 1 system, maybe 2 systems. And until we have demonstrated traction in those, we can expect longer sales cycles for those markets.
Jacob Stephan: Okay. And then I just want to touch on the guidance real quick. Obviously, Q4 guidance, the range is roughly $12 million. What could give us more confidence in hitting that high end? And what could be some factors that would kind of push the number to the low end.
Bernie Chung: Jacob, this is Bernie. We definitely have a path to get to our high end of our range and that’s our focus. With our — going back to our go-to-market, there’s a lot of things that we’re doing that are going to help us get that next level of engagement of our customers and simple things as when we put a quote out there, we’ll put an option to purchase a second machine, right? So we can build get into their project plan to see their future development. We’re not trying to be shortsighted with just 1 sale. And so by just doing simple actions like that, it’s making our part of the sales cycle and part of their projects with our customers to really engage. And that’s where we’re trying to bring the customer experience and value to these guys. And that’s — that’s where it takes time. And obviously, we’ve had some hiccups on that but we are continuing to focus on those areas that we do well in to get those customers to actually come through of those orders.
Jacob Stephan: Okay. And maybe just kind of 1 last 1 here. When you think about the new inventory kind of alignment strategy, when you think about new orders coming in, does that affect essentially the build time or the shipment time, or is there kind of precautions that you’ve taken to assemble some of the basic parts? Or tell me kind of just walk us through that.
Benny Buller: Yes, sure. So — we have, as I mentioned, the inventory to build what we think we need to ship in Q4 and Q1, right? Here and there, we might find that we lack some material 5%, 10% of an existing office system. And of course, we are going to buy what we need in order to be able to build that. So it’s really important to understand that the kind of built to order applies to buy material to order, not to start procurement — not to start actually the production machine. Once we have the material, there is absolutely no reason for us not to start building it because we have the people, we have the material. So we absolutely are going to start building it. And the machines we are building are actually dependent on the forecast.
What we are saying is that we are not going to buy additional material based on a top-down revenue plan that we had in the past of down forecast of machines that we will need to ship in future quarters where you basically look at that and you say, well, in order to be able to ship this amount of revenue, this amount of machine, I need to buy material now. We basically say, well, let’s say that we actually ship material. Let’s see that we build backlog that the inventories start dropping as we see those indicators, then we start making assessment when we need to buy more material, right? So basically not — we are not making a commitment to buy material before we actually see the growth of backlog and the depletion of inventory that warrants that.
So at this moment, this doesn’t affect our ability to deliver the lead times. But it could be that come Q3 next year or can come Q2 next year, it will affect the lead time on some of our systems, right, not all of them but some flavors of our systems. That definitely could be 1 of the outcomes of that coming Q2 or Q3 next year.
Jacob Stephan: That’s helpful. I appreciate the color.
Benny Buller: And when this will be the case, we will know that that’s the case, right? So — and we’ll be talking about this. I think you’ll have the signals from what we report to recognize.
Operator: [Operator Instructions] There are no further questions. I would like to turn the floor back over to Benny for closing remarks.
Benny Buller: Thank you, everyone, for joining our call. I’d like to summarize the strategic move that we have done rightsizing our operations and our company to a much more sustainable growth that gives us much more time to build the foundations and to grow profitably from that moment. So thank you so much for the call and looking forward to answer any more questions. Thank you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
