Butzi Machlis : Kobi just alluded. We are expanding our production facility — our production capabilities for UAVs. We are building a new facility right now in the City of Modi’in, which is not far away from Jordan and Israel. And this is on top of the facilities we already have. And this facility should go live by the end of this year, which will enable us to meet the growing demand for UAVs that we are seeing all around the globe, and to enable us also to deliver to our customer in a relatively short period of time.
Operator: The next question is from Ella Fried of Bank Leumi.
Ella Fried : I have actually a few. And the first question is, what was the reason for inventories going up? I mean, it could be future growth, rising prices of materials, fly delays? Or it means investment in long-term projects?
Yossi Gaspar : This is Yossi. As we indicated back in our investor event, we are planning this year, the ’23 year to have each quarter — we are building each quarter to transform the backlog to revenues with increased sales quarter-after-quarter in ’23. That means that in order to be able to fulfill this backlog for ’23, we needed, of course, to buy raw materials, to invest more in ways and we were doing that in the first quarter. This is according to our plan, to have those inventories ready to be transformated to revenues in 2023 and some of that in 2024. So that is just a way for us to build the additional revenues — that increased revenues that we’re expecting in the coming quarters.
Ella Fried : Okay. So we should be looking at it as a positive indicator. Okay. I have two — a couple of more questions. In two weeks, you’re going to Paris — in 2.5 weeks, you’re going to Paris Le Bourget Air Show. And you obviously will return with even more orders and with even more massive backlog. And it’s just a follow-up to all these questions that were asked. How do you plan to cope with even more massive backlog in the short, medium term? I mean, it seems that you will be really getting lots of orders and attempts to order. And I mean will you be taking more these orders like the American leading companies or other? Or are you implementing any other strategy more — I don’t know if you have the possibility for more outsourcing?
Butzi Machlis : Thank you, Ella, Butzi. You are right. We see a growing demand for our products and systems and we see a very big funnel ahead of us. And that’s exactly the — and we took it an account. That’s exactly why we took a decision to invest to enhance our facilities in Israel at Tel-Aviv port. Just to remind all of us, we expand our [new land] facility here in the North part of Israel to port more Land Systems’ revenues. We expand our radio facility in the North part of the country in order to support growth and revenues of the C4I and Communication Equipment division. And the same we did also at Rehovot in order to support more revenues coming from our ISTAR division. We mentioned already the new UAV facility we are building these days, and we are going to unveil it by the end of this year.
