Julian Mitchell: That’s very helpful. Thanks Nick. And then maybe one just for Blake, on the sort of process industry vertical. So I think you talked about mid-single-digit growth there in the first quarter, and you’ll pick up steam as the year goes on. Is that just a function of kind of sort of faster backlog recognition in Process Industries as the year goes on? Is there any sort of particular vertical within process that you think will drive that pickup over the balance of the year versus what you saw in the first quarter?
Blake Moret: Yes. Julian, oil and gas is where we expect a particularly strong ramp from mid-single digit to double-digit. We also see a little bit of that in related chemical industries, particularly the fine chemical applications that are really our sweet spot. Orders continued strong for oil and gas and other verticals in process. They continue, as I mentioned before to see some supply chain shortages that put a little bit of pressure on the shipments in the quarter. But we’re comfortable and confident with the continued orders and with the really strong backlog that we’ll see the double-digit growth for the full year.
Julian Mitchell: Great. Thank you.
Blake Moret: I should mention €“ I should just mention, since we’re talking about process if you were at Automation Fair, you saw the new high availability Process IO. So it’s not just the traditional value that we’re providing, but the strength of some of our recent acquisitions and new product introduction. And as we release over the coming months that high availability IO, that’s a major step change in our capabilities in our PlantPAx system. So that’s something that had been a gap for a period of time, and we’re very happy with the way that the IO has turned out and the endorsement by process customers.
Julian Mitchell: That’s a good remainder. Thanks Blake.
Blake Moret: Yes.
Operator: Our next question comes from Steve Tusa from JP Morgan. Please go ahead. Your line is open.
Steve Tusa: Hi. Good morning.
Blake Moret: Hi Steve.
Nick Gangestad: Good morning, Steve.
Steve Tusa: Congrats on the execution on the quarter.
Blake Moret: Thank you.
Steve Tusa: Just on the orders, maybe just a little bit more color. I mean it looks like the lifecycle services orders were up sequentially. You said that total orders were up sequentially. I mean any kind of frame of rough magnitude? I mean should we assume kind of modest sequential growth? Maybe just give us color on total book-to-bill. Was it in around that kind of 1.1 type of area? Maybe just a little bit more high-level color on where the orders landed?
Blake Moret: Yes, the orders were strong. We continue to give the book-to-bill specifically for lifecycle services, which was at 1.21. And overall, for the company, as we talked about orders and backlog being sequentially up, meaning, obviously, orders were in excess of the shipments for the quarter, it’s across the segments and it’s across the regions as we see that continued demand. And we will see continued high backlog levels even with the strong shipments and the increased guide, we’ll see very strong backlog at the end of 2023 as we go into 2024.
Steve Tusa: Okay. Like up low-singles for total order, something in that range?
Blake Moret: Yes. We haven’t talked about it other than to say it’s healthy sequential orders because we think the sequential information and the cancellation rates, which we also talked about being flat and remaining in low-single-digits, we think those are the most important factors going forward.
Steve Tusa: Right. And the price embedded in those orders, I mean, to get from up €“ I think you said 7% this quarter to up 4% in the year, it looks like that prices obviously decelerating. I mean the comps on price get tougher. Is the price in the orders somewhat similar to the price you’re booking in revenues today? And are you pretty much booked when it comes to future price increases at this stage?
Nick Gangestad: Yes, Steve, as far as the pricing, what the pricing that we’re going to experience for the balance of fiscal year 2023 is all or virtually all of it already baked into our backlog based on the orders that we have and the pricing we put in that. And that will be showing sequential price improvement from what we’re seeing right now, just based on how that backlog is playing out. In terms of the guide I’m giving for the full year that is not representing an aspect of price starting to come down from the pricing level we’re seeing in the first half. It’s just a recognition of €“ we had virtually no price growth in the first half of fiscal year 2022, and then we had more significant price growth in the second half of fiscal year 2022. So that change from the €“ it’s all based on comp, not on any kind of deceleration there.
Blake Moret: And if I could just add to that, yes, we did have an additional price increase in December, so in this fiscal year. And apart from the announcements of specific price increases, we’ve talked over the last year of being more agile in terms of getting the recognition of the prices by changing our methodology with customers and with the channel. And I would just say that’s proceeding smoothly and with our expectations in terms of being able to be more agile as future price increases are introduced.
Steve Tusa: Sorry, one more quick one, because you guys mentioned it at the Investor Day, any feedback from the channel on how €“ on the behavior around this January cancellation policy change?
Blake Moret: Yes. As we talked about the new cancellation policy on orders, that’s more of a hygiene type of issue. We didn’t expect it to affect order patterns, and that’s exactly our experience is that it did not have a significant impact on order patterns. But we got it in, and I think it’s a healthy part of our processes.
Steve Tusa: Yes. All right. Thanks guys. Appreciate it.
Blake Moret: Yes. Thanks Steve.
Operator: Our next question comes from Brendan Luecke from Bernstein. Please go ahead. Your line is open.
Brendan Luecke: Good morning all. Thanks for taking my question.
