Samik Chatterjee: Okay. And if I – last question, if I may – and sorry for the multiple questions here. But just what we’ve heard from general distributors and VARs has a lot more pressure in the finance field services, customer verticals since the headwinds on the banking side. Any sort of way to ballpark what your exposure to that customer vertical is? And if there has been a more sort of pocket of softness there since what’s happened over the last couple of months? And that’s it for me. Thank you.
Xavier Heiss: Yes, this is a good question. And I will look at it in two ways, and FITTLE will be at the core of the answer. The first way is if I look at what we call the bad debt situation for Xerox bad debt related to FITTLE here. It’s quite steady. It’s quite strong. We have not changed any way we do credit or risk rating for our customer. So our own performance from a financing point of view with our own customer remain resilient and strong. The other point on the – and I think you have also this in mind there is the fact that some of the SMB business, and potentially some of these bank difficulties here, could drive more business for FITTLE. This is the way we look at it, there is an opportunity, but I want to be very clear on this one. We won’t do that at the decrement of the quality of our leasing portfolio. And the team is very stringent on this.
Samik Chatterjee: Thank you.
Operator: Thank you. And our next question comes from the line of Shannon Cross from Credit Suisse. Your question please.
Shannon Cross: Thank you very much. Steve, can you talk a little bit about your decision regarding donating PARC? I mean, I’ve worked with multiple CEOs over the years who all expected to monetize PARC. And generally, we’re unsuccessful. So I’m not sure this – I think it’s probably the right decision. I’m just curious, as you looked at it, can you maybe talk a bit about why you think that was the case? And then are there any other benefits – just I understand on R&D savings, but in terms of tax benefits for that, maybe, Xavier, you could touch on it? Thanks.
Steve Bandrowczak: Yes. Let me go back to, when I took the CEO role, Shannon, I talked very specifically about a shift in two areas. One was a focus on R&D that was a little bit nearer to our revenue horizon. And very specifically, we took actions around Novity and Mojave as Xavier talked about a little bit earlier, and that was we weren’t going to continue to use our cash as those particular products and those particular businesses were growing. And so as we looked at PARC, we saw significant shifts in the industry in terms of valuation of startups and products, et cetera. And we decided that if we were looking at too long a horizon and too big a spend and continue to invest in those things, however, it was very important for us to be able to see inside to that innovation and have the ability to take advantage of that innovation going forward with our overall strategy around R&D.
So the PARC SRI donation fit perfectly into what we were trying to do, meaning that we could still have insight to innovation, still have insights to technology – by the way, have the greatest researchers in the world focus on some of the toughest world’s challenges and very specifically some of the challenges we see in clean tech, et cetera, et cetera. And we have the ability to be able to take our long-range plan, meaning our R&D and our business strategy, work with PARC SRI in the future to help us to develop our strategy and get insights to those technologies. So, I see it as an expansion of our PARC capabilities in terms of seeing insights to technology and getting access to longer-term development while we can focus our capital resources on more near-term revenues.
So that’s why we made the decision, Shannon.
Shannon Cross: Okay. Thank you. And then, I guess, Xavier, anything from a tax credit benefit maturity, I don’t know if there’s a benefit there down the road?
Xavier Heiss: Yes. So the reason tax credit, we do not disclose a number precisely there. More to come when the overall credit will be enacted here. We will disclose when the amount will be published here. But so far, we are not disclosing any specific figure regarding the tax credit.
Shannon Cross: Okay. Thank you. And then my final question is just you made a number of comments about flexible cost structure. I’m wondering how we should think about fixed versus variable. I mean, traditionally, copiers had a pretty high fixed cost structure because you had to go out and maintain them. You had to drop – you can drop ship and you had to bring them to a loading dock, all of that. So how do you see your cost basis maybe over the next couple of years shifting? What’s fixed versus variable now? And what do you think you can get to over the next few years? Thank you.
Steve Bandrowczak: And so, Shannon, let me start and then turn it over to Xavier. So, we’ve been focusing on driving operational efficiencies and driving sustainable change in terms of a management operating system within the company. And so that was the foundation of Project Own It. On top of that, it was the constant utilization and embedding technology inside of our overall processes. So a simple example is what we talked about with CareAR. We now launch products with CareAR automatically as part of when a customer receives a box, they see CareAR in terms of how to unbox and actually install. That CareAR session helps us to reduce service calls. We can do more things remotely. We talked about artificial intelligence and helping and using artificial intelligence to help our service delivery team and help them resolve problems quicker, and, in fact, sometimes not even have to go to a customer site.
So we have been embedding technology inside of our processes, inside of Xavier’s area using technology, artificial intelligence, business intelligence and how we run our management operating system. So we have been very systematically, over the last couple of years, with Project Own It, not only putting a managed operating system in place, putting discipline in place for our people, but more importantly, using technology that drives sustainable and continuous improvement. And we’re on that journey, and we’ll continue that journey. That’s why we lost Project Own It the name because it’s now embedded in the culture of the company, and we’ll continue to do that. Xavier?
