So margins could come down just a little bit, but that’s a good indicator for 2025 at the same time because, we will start to progress some more through the factory at that point in time is what we’re currently seeing. Now it’s in full production. It could be a little bit of a benefit. That’s what we’re weighing right now.
Bill Austin: Okay. Thanks. And then one more just a little on the Subsea Robotics, you guys did a demo for the U.S. Navy and Defense Innovation Unit in Norway. Do you guys mind talking a little bit more about that. You had Phase 1 and when could Phase 2begin? And do you have any framework around what the potential revenue opportunity for that type of thing could look like for you guys in the future?
Rod Larson: We’re in Phase 2 and Phase 2 is kind of where we go from what the product does to more about some of the other things they may wanted to do. So that Phase 2 part is this quarter. That business, it’s just a little bit hard to predict. It’s — because we don’t know. They haven’t really talked about scale, but it could be something that is significant. I’ll just put it that way. It’s not going to — they’re not really talking about 1 or 2. So it depending on how far they want to take that. We’ll be — we’ll know more when they decide. And part of it isn’t that they’re being coy with us. It depends on the capabilities. So obviously, the more capabilities we can deliver the more applications and then more demand. So we’ll kind of watch this space.
But I mean, thanks for bringing it up. It is a pretty exciting thing. We talk a lot about what’s going with the MaxMover in the forklift on the terrestrial OMR. But on the Subsea, these different applications for Freedom is really broad and is sort of the aperture of not just energy, not just sort of our typical work, but some of this defense work could be pretty sizable.
Bill Austin: Very well. You got my questions. I’ll let some other people ask some questions. Thanks a lot guys.
Rod Larson: Thank you.
Operator: Thank you. [Operator Instructions] We have a follow-up question coming from Kurt Hallead from Benchmark. Your line is open.
Kurt Hallead: Hey guys. So you referenced — you guys referenced that you have discussed or established a shareholder — return of cash to shareholder program and talk about a share repurchase, what kind of additional details can you provide on that?
Rod Larson: Yeah. And I guess, I don’t really have an algorithm to share, but I’ll kind of — I’ll share with you what we’re looking at Kurt is, is we’re really looking at the cash generation. Obviously, we got some — we got some comments back on the cash burn in the first quarter. I will be more overly focused on that because we always have a cash burn in the first quarter. One of the things that, unfortunately, we’ve seen in a couple of the past few years is that, that didn’t really come back until fourth quarter. So, we saw the big drop in first quarter and you had to wait until fourth quarter to see it looked like we’re going to hit the number. We don’t see it being as backloaded this time. We see that happening more ratably.
And as it happens, that gives us the comfort level to work with the Board and establish a repurchase number. Of course, I’m going to compare that cash available the share price and making sure that it’s a good deployment of capital. And also against a couple — some of the — especially the organic investment opportunities we’ve got on the plate and we’ll go back and forth. But we really — I mean I just — I guess I would share that’s a lot of stuff that says it’s a hard maybe, but there is a desire to do it. We have their support for management and they certainly support on our board, but we just need to make sure that we’re making the right decisions. We’re being somewhat opportunistic of us taking those shares at the right price and at the right time.
Kurt Hallead: Okay. I appreciate that. And then a follow-up on the ROV side of the business, you guys referenced the increase in pricing for the quarter. Typically, the ROV pricing does track pretty closely to the deepwater rig rates. And I think the last time, rig rates were $400,000, $500,000. I think your ROP rate was 1,000-plus. So just want to get a general sense from you guys on what kind of continued momentum you would expect to see in terms of ROV pricing?
Rod Larson: I think we’re still seeing some. I mean we’ve talked about they have to work through the system. And just even this year, we’ve negotiated some changes in rates. So, some of that is still coming through. When you get to that higher number, I would say it’s — we got to correct the leading edge to the average. The leading edge rates we’ve seen above 12 even today, depending on where we’re operating in the world. So, I think that we’re on track to get back to kind of like rig rates. When rig rates get back to where they were I think rates are going to get back on average to where they were and we talked about going back to Q4 of 2014. So, we’re definitely tracked that way with some movement left. So, I expect the averages are going to continue to go up through this year, and that’s good news.
