Sundaram Nagarajan: Yeah, as you think about test and inspection, we’ve had strong, strong years here now going. Even last year when our dispense business was down a bit, you also found them to be doing fairly well. But as you go into next year, we expect that we would have challenging comms for our x-ray business. We certainly expect that our optical business and our acoustic business, which we’ve not talked about in the past, is an area that we feel there is some strength. And too early to say we have reached an inflection point, but certainly telling you that this is an area that we are well positioned to take advantage of any market movement. Customer conversation, pipeline activity, all still indicating second half of the year, calendar year, that we have a good recovery.
But I think we feel good about where we are, particularly on CyberOptics, we’ve had now a year of experience with this. CyberOptics is exactly what we thought it was, incredibly fantastic technology that has added to the portfolio. So our thesis around expanding our precision technology portfolio with CyberOptics is certainly strong. And our expectations are that we continue to be able to solve more problems for our customers and continue to benefit on this investment in semiconductors that is expected to come.
Matt Summerville: Thank you.
Operator: [Operator Instructions] Your next question is from the line of Christopher Glynn with Oppenheimer. Please go ahead.
Christopher Glynn: Thanks. Good morning. I was just curious about the ATS foreground, spend another moment on that. You said your team is very engaged talking to customers, so that sounds like everyone is on the same page in terms of expecting a recovery. Are you just seeing like materialization of pre-RFP activity? Is there, like, improving breadth month to month? Just curious how the cadence is there.
Sundaram Nagarajan: Yeah, I would go back to what we were talking about, which is really great customer conversations, historical trends all pointing towards second half of calendar 2024. Clearly our pipeline activity continues to be pretty good. And our expectation is that, that translates into order entry and translates into shipment. Beyond that, I — our expectation for the ATS is it’s going to be flat, but first half down, second half up. And if you look historically, that has been a fairly good indicator and we believe that. So our guidance is based on APS being flat, not significant growth.
Christopher Glynn: Yep, yep, I understand the timing. Thanks for that. And then a quick one on MFS, the kind of non-medical fluid solutions portion. I think you talked about some significant manufacturing and productivity benefits there from cost actions and NBS Next. Curious how that industrial fluid solutions business, I think it’s short cycle oriented. How’s that — a little more detail on how that’s behaving, please?
Sundaram Nagarajan: Yeah, that is going fairly well. I would say early times here. We are very pleased with the improvements that teams have made in manufacturing and the business starting to return to where it typically operates. A significant pickup in this business is going to be tied to the electronic customers in Asia as well, right? And so this is a business that has some electronic exposure and that they will benefit from that as the second half picks up for them. But overall on the industrial side it seems to be steady.
Christopher Glynn: Thank you. Thanks, Naga.
Sundaram Nagarajan: Yeah. You’re welcome.
Operator: Your next question is from the line of Walt Liptak with Seaport Research. Please go ahead.
Walt Liptak: Hi, thanks. Good morning. I wonder…
Sundaram Nagarajan: Good morning, Walt.
Walt Liptak: Good morning. You guys haven’t talked too much about pricing yet and there’s still some inflation out there even though it’s come down. How are you thinking about systems pricing and component pricing as you start going into the new year?
Sundaram Nagarajan: Steve, this is something that you want to touch on?
Stephen Shamrock: Yeah, to answer that question, what I would say is, again, just to remind you and everyone that really when we talk about pricing, I mean, we’re selling the value of our products to our customers. So we’ve not passed through large inflationary price increases as a result of that. I mean, again, our focus is maintaining our very strong gross margins from that perspective. So, as I mentioned earlier with the organic growth guidance, the 1% for FY ‘24, I would think that that organic growth would be balanced in terms of a little bit coming from volume and price, but again, it’s not something that we’re really focused on from that perspective. Again, our focus is on maintaining those gross margins.
Walt Liptak: Okay, great. And I wonder if we could talk a little bit about the ag markets and just the — regionally, ARAG is pretty international in Europe and South America. I wonder if you could talk a little bit, give us some insight on how those markets are trending and we probably have a better view on the US, but — so maybe the second part of the question is, you guys are looking at kind of a new opportunity in the US for market share. Can you grow the US part of the business next year?
