People are sitting in a control room away from the hospital. We get a contract with the hospital and we give services to them. And anytime there is a vital sign event, the technician sitting in a control room far away from the hospital, they call up, we talk to the technicians, we tell them, hey, go look at patient number 14. And that is caught on. And it’s a subscription model, it’s a paying model. And with our Rothman Index also into it, we are sort of differentiating ourselves from our customers. But overall, it is a challenging business, and we are spending a lot of money for the last couple of years and will continue, hopefully with the success of a brand new platform in the coming year.
Christopher Glynn: And then on the security margins, you called out a mix a couple times and it occurs to me, I wanted to ask, I think, different phases of these large projects might have different mixes. So should we regard the mix dynamic as kind of optimized in the second quarter relative to what’s probable in most quarters as you execute these projects?
Alan Edrick: A good question. It was indeed a favorable mix in the second quarter. That being said, a number of the projects that we have in our backlog and in our pipeline of opportunities appear to be strong margins as well. So while it may not carry the same gross margin profile that we saw in Q2, we still expect it to be very, very solid as we move forward. But it was a very favorable mix in Q2. You’re exactly right.
Christopher Glynn: And last one, no surprise on the slightly negative year to date free cash flow, I know, it’s timing and obviously you have the projects and overall revenue ramp. But should we assume continue pretty, pretty tight next year and more harvest time in fiscal ‘25?
Alan Edrick: Although we don’t really provide cash flow guidance, I think directionally what you’re saying is correct. We’ll continue to invest in some working capital associated with these big contracts in the near term. And then there’s an opportunity to harvest an awful lot of free cash flow going forward as we have in years in the past. So, we’re excited about this. This is what we like to put our balance sheet to work with.
Operator: Our next question comes from the line of Larry Solow from CJS Securities.
Lawrence Solow : A couple follow-ups. Most of my questions been answered actually. Just on the margins, I know you don’t get specific guidance out, but obviously in the security piece, I think it was a good 250 points above your previous record high. Curious, anything in there that would or going forward that would make this an unusual number or why can’t we kind of sort of sit in, at least in this low 20s range as I look at just from the near fact that of a big bump in revenue, it looks like the last couple times you’ve gotten kind to this revenue level. You’ve also had margins sort of in that high 19s or over 20. So just trying to par out, is there anything that should kind of make this margin not sustainable?
Alan Edrick : Yes, Larry, this is Alan. Good questions. And we don’t disagree with you. Again, as we don’t provide guidance on an operating margin level. But what you’re talking about in the past seeing 19 and low 20s at these type of revenue levels, there’s every reason to believe that those things are sustainable. There’ll always be changes associated with the different mix in the like, but yes, we do believe that there’s every opportunity to sustain and even increase those type of margins over time.
Lawrence Solow : Okay. In terms of sort of the order queue or the funnel not so much orders, but I guess, potential orders. As you look out, obviously, it sounds like most areas are still doing really strong. But can you just kind of give us a feel qualitatively where in terms of — are you still seeing a lot of vehicle inspection demand? Is it cargo inspection at ports? What are sort of the bigger drivers, if you will?
Deepak Chopra : This is Deepak here. Good question. It’s a very broad. What I said in my statement, both in borders and port security and even in aviation, all that area, is a lot of demand and lot of interest, not only just for expansion, but also to replace the old technology with the new technology. And every customer is more conscious about to make it more efficient. And one of the things that we are very proud about it is because of our success turnkey multi-year contracts that have been very successful with happy customers, they make a very good reference point as a selling tool for customers that are not even thinking about going to a turnkey solution and best buying equipment. But they look at that and that expands into it.
So our presence, and we can be very, very confidently say, we consider ourselves number one in this space. But I look at this as a growing business with the economy there and with people more security conscious and border security everywhere, people are more conscious and we have the right equipment. It’s now no one area. It’s broad all over the world.
