Danny Eggerichs: Yep. Got it. Okay. I think, my order push-out was kind of more broad-based and not necessarily related to the 3300, but that makes sense. I guess maybe shifting over to kind of the medium-term targets that you’ve got out there. I think most of those are below the revenue line or kind of fiscal year 2024. Just wondering if you feel like you’re still confident that you’ll be able to achieve all these, maybe just assuming that the macro stays consistent for the near term or next couple of quarters.
Yoav Zeif: Danny. It’s a good question. And the answer is that we have confidence and the main reason is that most of those measures are within our control, and I’ll explain. We’ve created an infrastructure both on the cost side, on the gross margin side, on the cash flow side that are within our control. So even in a challenging macro environment, we do have the lever and we do have the infrastructure to maintain low OpEx and to improve our cash flow. So the 50% plus gross margin in 2024, the operating cash flow positive in — in — in 2024 and the ability to maintain good OpEx level, as a percentage of revenue, that’s something that we’re very focused and believe that can be achieved even in the macro — challenging macro environment.
Danny Eggerichs: Got it. That’s helpful. Maybe just one more, touching on dental. I think last quarter you had mentioned a top five denture producer had or was committed to acquiring system, but what’s the update on that, did that hit? And any progress on smaller potential sales within that space?
Eitan Zamir: Thank you for the question. In one sentence, it’s the highest revenue quarter in dental ever. So I think that’s a good reflection of where we are. Our strategy is working both on the TrueDent side but also on the replenish — in replenishing of the portfolio both on the printer side but also on the material side, it’s really working well. Also on the regulatory front, we are receiving on time approval that we’re waiting for and we will see more grow there. Especially because we are focusing on what we called restorative dental. So we are less sensitive to the current macro environment where you have discretionary sectors like the aligners and others were quite sensitive to inflation, interest rate, income. On our end, we are focusing on restorative, on dentures, on removable dentures, on models, and crowning [indiscernible] in the future.
So, and we do it with a truly disruptive use case. So we are not, there is no need to in our offering. Nothing here. It’s about innovation, again making the life of the dentist and the technician much easier, multi-material, multi [indiscernible], high esthetic, almost no labor we are transforming this restorative sector.
Danny Eggerichs: Great. I will leave it there. Thanks.
Operator: Thank you. Next question is coming from Ananda Baruah from Loop Capital. Your line is now live.
Ananda Baruah: He. Thanks, guys, for taking the question. And, yeah, our thoughts are certainly with you all and everyone with all that’s occurring in your neck of the woods.
Yoav Zeif: Thank you —
Ananda Baruah: I guess a couple from me if I — Yeah. You’re very welcome. A couple from me if I could. I guess just to start like on the macro and bigger picture, what’s a useful way for us to think about as macro say clears up, begins to improve whenever that occurs, 2024 going into 2025? Key milestones there, I’ll use the term milestones, but key milestones, key occurring with, with your industrial folks. The audit — the auto announcements are obviously quite exciting. So inside of auto, but even more broadly Aero and General Industrial, what’s the useful way for us to think about the dynamics signpost that — that kind of need to occur or will be occurring that can continue to amplify the activity into those environments?
Eitan Zamir: Thank you, Ananda. Mainly, and a big thank you for your support. We don’t take it for granted. And really, I want to thank all our customers and industry peers. The support we are receiving over the last month and a half is amazing and worth mentioning. So, thank you. So maybe I’ll start with — maybe I’ll start with the macro situation that would, I believe, are the main factor that will put us and the entire industry back on track and then I will relate to the specific milestone for Stratasys in specific verticals. So I’ll start with the, with the macro. What is — those factors that really impact us, and it’s very clear that those are two, I would say. The certainty [Technical Difficulty] because we are growing to manufacturing and I will explain when I get to Stratasys.
We are going to manufacturing, it’s a very simple but laser-focused strategy. When you go to manufacturing, you’re challenging the status quo. And when there is uncertainty, the tendency of the largest manufacturer in the world to change the way they’re doing thing is lower by definition. At the same time, there is the interest rate pressure because at the end, it’s CapEx and there is — the cost of the CapEx is the interest rate and it all starting with inflation and so on and so forth. But what we see now is that the inflation is stabling with the US. So we are positive on this side. And also, we see that no matter what happens, in the new state of the world, not with the 0% interest rate but with 3% or 4%, also in this world the large manufacturers need to start a new, a new cycle of innovation and production.
