Hamed Khorsand: Hi. First question is, if I look at just revenue on a just simple basis, you were down something like $30 million year-over-year, is that $30 million lost? You’re saying it gets pushed down ‘24, but it just seems like it’s never being recouped.
Dhrupad Trivedi : Yeah, so I would say Hamed that, I would probably separate service provider and enterprise in that segment. As if you look at sort of historical cycles for service provider spending, that CapEx is cyclic. And, our enterprise revenue has grown every year, right? So that’s not a factor here. And on the service provider side, what we saw was pullbacks from handful of large SP customers who had projected plans to add capacity or new services and have subsequently, recut those plans to be over longer periods of time or reduce them. And this is very consistent with all the 5G data or reports you’ll see from many of our peers, partners, and customers that, in general their projected incremental investments are now slower or deferred over a longer period of time.
So now when we say we don’t think we lost, the reality is what we are looking at is there was not a project where we were the chosen provider and the customer made a decision to go with someone else, which we would call as a competitive loss, right? So it’s more that the customer was spending, planning to spend X million dollars and ended up ultimately spending half of that, right? Or saying we’ll do half this year and a little bit next year, a little bit next year. And the difficult thing is, it’s hard for me to say a 100% of that reappears in 2024. And I think I’ll leave that to the economists and our analyst to figure that out. But I think to our ability, what we can do is make sure we are aligned with those customers. We are not losing to competitors and as they gain confidence to invest we feel that we are in a good position to get that.
Hamed Khorsand: And could you just talk about the sales timing within the quarter? Did it all happen towards the very end of the quarter?
Dhrupad Trivedi : No, actually no, it was better than what we saw in Q3 phenomenon. And generally, obviously we hope the quarter is more balanced just because it reduces the risk and volatility for us on execution as well, as well as cost. And so the fourth quarter, I would say, definitely improved from second and third quarter in terms of what we were able to book and ship in month one, month two, and month three.
Hamed Khorsand: Do you still have a large accounts receivable with one customer or is that more diversified?
Dhrupad Trivedi : It’s fairly diversified, but I don’t know, Brian, you can add to that.
Brian Becker: We did have two large customers in AR. But it’s normal cycle. I think as Dhrupad has mentioned in the past, it does change a quarter-to-quarter. The two that we had this quarter, I think did not appear as the same customers in previous quarters.
Operator: [Operator Instructions] We now have Hendi Susanto from Gabelli Funds.
Hendi Susanto : My first questions, so Dhrupad, if we see the sales to like service providers from one quarter to another, I saw some sequential improvement in Q4 from Q3. Do you have any insight whether the service provider’s segment has seen its button or there — or is there still any risk that it may continue to slide down sequentially?
Dhrupad Trivedi : So Hendi, if you remember in the third quarter, what we had talked about was the fact that, as we had entered even the third month of that quarter, we had seen a few significant deals that were projected for Q3 move into Q4, and I think the Q4 results really show that materialized in Q4. In some cases they were slightly smaller than what we originally thought in Q3, but in general you can see fairly significant step up, but it’s related to that timing between the two quarters. And as far as, thinking about calling a bottom, again, as I said, I would leave that to the economists and the federal board and analysts to figure that out. From our perspective, certainly we are very closely aligned with our customers and making sure we are designing in even more products that as their confidence in spending resumes, that we will be a key part of that strategy going forward.
And it’s hard for us to say, and as I said before, particularly in a year, that could be influenced by political factors. It’s even more difficult than just purely economic factors.
Hendi Susanto: And then since we have the full year revenue, can you share what percentage of the security solutions?
Brian Becker: Yes, I believe it was around 50% just below that. So in line with our goal of achieving 65%, which we announced 2022. It’s steadily growing, and we’re tracking to plan.
Hendi Susanto : And then last question for me. Brian, if I look at OpEx, is $35 million to $36 million a good baseline for quarterly run rate of the OpEx?
Brian Becker: Good question, Hendi, there’s a few factors. Obviously, variable comp is lower than expected. Not only because of the changes or at least the misses that we saw in Q3. And then overall, we were projecting a little bit better result in Q4. But I’d say that there’s variable comp that’s missing from OpEx, both in Q4 as well as the full year results. As we turn to ‘24, we will be expecting to add back that variable comp maybe like a third of that cost back as a result.
Operator: [Operator Instructions] We currently have no further questions registered. So I’d like to hand it back to Dhrupad Trivedi for any final remarks.
