Aaron Martin: Okay. If we talk about the gross margin, obviously the cost-downs that you’re talking about are material. In your initial plan to get to 35% from the year, which would apply, well north of that on a runway for Q4, I assume the shift towards the 9000 was a bigger piece of that rather than just the cost-down because, the demand increases much larger. Is that accurate?
Scott Malmanger: I wouldn’t say that specifically, Aaron. I think, we expected to do better in our gross margins in the second quarter and we were disappointed in our lack of execution, right? I don’t know how else to say it, right? And, it’s like we lost a quarter of it. I mean, we did improve our margins and, yes, I’m thankful for that.
Aaron Martin: It’s a little more than a percent.
Scott Malmanger: Yes, it’s not where we wanted it to be or expected it to be, right? And so, that’s really what’s pushing it off more than anything else.
Aaron Martin: I guess what I’m trying to figure out is the two big components is the cost-downs and then obviously the mixed shift. And then there’s some accessory shifts there. I don’t think those are higher gross margins, but I’m trying to sort of get at how much of those two items are part of the, getting us to 35-plus percent gross margin. How is it split between those two big items? And then this delay on the cost-downs, is that the only delay? Is there also a delay on the mixed shift towards the 9000 or not? I’m just trying to —
Scott Malmanger: Yes, so the latter is not, right? What happened in Q2 was an execution, right? And so, the programs that we thought we would have introduced into the factory that would result in better gross margins for our products and were delayed. But those programs or some of those programs are coming to an end. We have a series of programs that we had planned throughout the year. But the ones that had, I would say, a more material impact to what we thought our gross margins were going to be in Q2, those programs are now being introduced into our factory. And so we’ll see an impact on Q3. We never planned to ship a lot of radios on the 9,000 initially. So the number of radios that we shipped is basically the plan. Our third and fourth quarter plan hasn’t changed.
Aaron Martin: Okay. So you’re saying all the changes are obviously cost-downs in those programs. And so independent of those, obviously, we’re going to be seeing some material or a step up in 9000s in Q4. That should move the gross margin. And then in addition to that, on the execution side, we’re looking for these programs to be fully in place by Q4 or close to it?
John Suzuki: Yes, that’s a good summary, Aaron. We had a speed bump in Q2, in essence, right? And we’re now picking it up in Q3. But the 9,000 is an independent stream.
Aaron Martin: Okay. And the 9000 on its own is enough for the step function rather than, this —
John Suzuki: You’ll notice that.
Scott Malmanger: It’ll be a step function throughout 2024, is the way I would describe it.
Aaron Martin: Okay. Thank you very much and congratulations on the continued progress.
John Suzuki: Thank you Aaron.
Operator: We now hear from Scott Weis with Semco.
Scott Weis: Hey, John. Hey, Scott. I have got two questions. The delay in the 1000 phones at the last week of the quarter due to this accessory. Was this accessory a BK-made product or was it a third-party product?
John Suzuki: It’s a BK product, but it was a product that was manufactured by one of our contract manufacturers. And you have to understand, right? I mean, if you’re talking a matter of days, right? But at the end of the day, if you miss that window, it doesn’t fall into the month of the quarter.
