Operator: Thanks, Mike. The next question comes from Hendi Susanto from Gabelli Funds. Hendi, please go ahead with your question.
Hendi Susanto: Good morning, Ric, Jana, and Andy. First, my heart goes out to Don Charron’s family and Kimball Electronics’ family. My first question is about CapEx. If I see the fiscal year 2024 CapEx guidance of $70 million to $80 million, it’s not that far different from the $91 million spend in fiscal year 2023 that included capacity expansion, so I’m wondering how much more of facility expansion and capacity addition are associated with the fiscal year 2024 CapEx? And then related to that, is there a way to draw total manufacturing capacity now in dollar terms?
Jana Croom: Yeah, so great questions. What you’re seeing in FY’24 is continued capacity utilization and ramp, particularly in Mexico and Poland. And so while the bricks and mortar expansions are done, we’ve cut the ribbon on both, they are up and running. We’re continuing to put SMT lines in those facilities. And so there is a building that’s — and FY’24 has certain continuation of the equipment that we need to put in to continue to serve all of the NPIs so that we can get those plants fully utilized. And then, I apologize, Hendi, ask your question again on manufacturing.
Hendi Susanto: It’s like, is there any update on how much total manufacturing capacity in the dollar terms? I think, my sense is that Kimball Electronics’ capacity now is above the $2 billion mark. I’m wondering whether there is any update on.
Jana Croom: Yeah, so, you know, Don used to say all the time we are built and building for $500 million quarters, right, and so with the completion of Poland, it’s 38% capacity increase, and yes, Hendi, we do not need to expand any further to be over the $2 billion mark. Having said that, as we look at our longer-term growth rate opportunities and strength our funnel, we have some work to do on the organic growth side to support everything that is coming our way. And so more to come on that but certainly we could get above the $2 billion mark with the current capacity we have now that Poland is up and running.
Hendi Susanto: And then, Jana and Ric, braking system is now a new growth driver in your automotive vertical, is there a way to size how big braking system sales or whether you can quantify or — quantify how much of the 4% to 7% organic growth target in fiscal year 2024 is associated with the braking systems?
Jana Croom: We can’t — well, we don’t quantify what braking systems is specifically as a percentage of Automotive sales, but what we have said is that is the key focus area of growth for us within Automotive. Now, we won’t turn down a profitable next-generation steering program because we do steering incredibly well and that’s also a highly profitable program that we enjoy with our customers, but you’re not going to see us to, I think, it was Derek’s point out earlier, you’re not going to see us putting in sunroofs and window lift and those things, it’s really going to be focused on that next-generation technology within steering and braking and other areas that have high-quality capability, lifesaving requirements, et cetera.
Hendi Susanto: I see.
Jana Croom: So said differently.
Hendi Susanto: Thank you, Rick. Thank you, Jana. Yeah, and then, thank you and then all the best for the fiscal year 2024.
Jana Croom: Thank you, Hendi.
Richard Phillips: Thanks, Hendi.
Operator: Thanks, Hendi. [Operator Instructions] The next question comes from Mac Furst from Singular Research. Mac, please go ahead with your question.
Mac Furst: Hi, this is Mac Furst with Singular Research. So, congratulations on the quarter. Well done. Thank you all for your hard work. Condolences to Don’s family on his passing. I have a clarifying question as far as Medical is concerned. So you said one customer pulled back, revenue growth was rather muted, and if I understand you correctly, and if you can just please clarify, you think at this point in time there is a permanent step down of about $100 million in the Medical field because of some issues regarding to that one customer, so it’s unlikely that that revenue with that specific customer is going to come back anytime soon, did I get that right?
Jana Croom: You’ve got that right. Yeah, we pull — so if you wanted to know what the net was you could take our guidance for FY’24 and add a $100 million to it and that’s what it would have been, but for this impact.
Mac Furst: I understand.
Richard Phillips: And look, Mac, it’s Ric, I think the other aspect to that exactly what Jana said for 2024, we are — as we continue to have a close partnership with that customer, we’ll be working with them on how they come out of this from a remediation standpoint. So we would anticipate business coming back, but we don’t have a timeline on it.
Mac Furst: Understand. Thank you very much.