Paul Silverstein: Alright. And I can do the math, I guess, after the call, but help me out. We have said 10% to 11% gross margin set up for Nestor. How much of a hit was it to overall gross margin, If we look at the 35.7 whatever the number was?
Cheri Beranek: Yes. It is probably about 2.5% this quarter. I mean, they would affect that. So it is important to when we look at the fourth quarter of last year, that is really not a comparable number because we didn’t have any of the new facilities up and we were at complete capacity. Over the course of the last year, we have been adding a considerable level of the capacity to building themselves in March of last year and now adding continual building enhancements. And probably one of the biggest investments that we have made is about a 25% increase in our labor force since summer of last year. And so even though we knew that, the winter was going to be more seasonal, we made a conscious investment in people to ensure cross training of resources and labor capacity availability.
And so while it might be a little unsettling for this first quarter, it is absolutely to plan, as to where we are at from a gross margin standpoint, so that we can prepare for the summer and into next year on the capacities that are going to be necessary.
Paul Silverstein: Alright. I appreciate the responses. Before I pass it on, I would just respectfully submit, I think you are making mistake, with respect your time to stop disclosing backlog, even assuming the times are better days of your business as you maintain. Again, I would urge you to continue providing that. But, let me pass on. I appreciate the responses.
Cheri Beranek: Very good. Thanks.
Operator: Thank you. Our next question is from Jason Schmidt with Lake Street Capital Markets. Please proceed with your question.
Jason Schmidt: Hey, guys. Thanks for taking my questions. Just following up on that line of question. And just what gives you the confidence that second half snapback will come and that this inventory correction or issue or digestion, whatever you want to call it, is just sort of a one quarter issue.
Cheri Beranek: What we are seeing is an absolute continued demand from every customer that they want to increase the number of homes that they are connecting and passing and aggressively working with the contractor community and the labor community to find additional resources and to train additional resources. So we are actively involved in that process, and helping them to gain the knowledge and the training tools by which to enhance the labor availability that is out there. I think there is really, I would call it, almost like a review of household conditions when you come back in at the end of this of the year and you kind of working through your calendar and you are looking to see what is out there versus what you have.
And so all of our customers, I think, are just kind of making that refresh. I think it is the continual demand push that they all continue to want it to be the first buyer out and that commitment across the board that there was still growth in every part of our marketplace. The other thing I want to make sure I think reiterate, is the fact that, when we walked into this year, as we identified the 40% to 45% growth rate for the year. We said we would come out extremely strong in first quarter. In first quarter at up 70% growth rate over last year and that growth rate would de escalate over the course of the year. So the end of the year at a 20% to 25% increase over last year and then working for us to continue at that position. So I think it is important for us as a community to identify that the industry is going through a complete readjustment to this one sort of weird lifetime situation that we call the pandemic.
