But I can pinpoint that residential was actually up, right? ONT shipments were actually up. CPE Ethernet net shipments were actually up. The only thing that was down was some legacy products that we sell to 2 large carriers well, one large carrier in Europe and one large carrier here in the U.S. who are who we know have inventory situations. If I look — if I were to subtract those 2 customers from the mix, that whole category would be up sequentially and year-over-year for that matter. So we are definitely getting through that bubble.
Michael Genovese : Okay is there — meaning — I guess — I mean, I don’t know if you have this number or we give this number, but I mean I assume most of subscriber solutions is related to the access business, but I think there’s probably also a meaningful piece that’s related to the optical business. Could you help us understand that breakout at all?
Tom Stanton: On the optical side, it’s the Ethernet knit piece is kind of the traditional, I’ll call it, Adva piece that we’re talking about here. And that business is actually doing pretty good. And then the other pieces of that are the subscriber piece is broken up multiple areas, right? One is residential, and that’s kind of the ONTs, RG, the things that are driven by fiber to the print shipments. That business is up on a year-over-year basis. Piece that is down is we have if you remember, traditional switches and routers, but those typically go through carriers, and they go along with service offerings from those carriers. And we have 2 big customers that drive that business, and both of those customers were down. That’s the whole totality of subscriber solutions.
Michael Genovese : Got it. That’s helpful. And then my other question is I mean it just — you guys are clearly doing a lot on the management front, too, I think, as you say, make it a more profitable company even at — if revenues are lower than before for a period of time. And we can see that, but I think that — I want to make sure I’m not missing anything, right? Because there’s restructuring and there’s working capital management, bringing down inventory. I guess I look — my question really is — am I missing anything there that I should be focusing on? And — but then also, can you give us an update on anything related to the real estate portfolio transactions?
Tom Stanton: Yes. So we have — we do have some real estate here in Huntsville that is for sale. We have two different, think about it as two different pieces. We have a tower that at this point in time, we’re at 90% unoccupied. We’re moving the rest of that. I think this quarter, we should be done with that. That’s on the market right now. We do have interest in that. We haven’t closed anything. We also have the sale leaseback potential on the other building here in Huntsville. That is what we’re putting off and just try that we’re doing the right thing at the right point in time on that. So that we may or may not execute on that one.
Michael Genovese : And were there any other categories of kind of like the OpEx restructuring, working capital management? Any other kind of big categories of what you’re thinking about to improve the market.
Uli Dopfer: These are the main categories, Mike. Our business efficiency program includes getting more efficient as a company, bring optimizing costs, optimizing physical footprint. And then, of course, the working capital measures you mentioned, the big piece here is the management of inventory.
Tom Stanton: We did also announce the closure of a site in Germany earlier in the quarter.
Operator: Our next question comes from Ryan Koontz from Needham & Company.
Ryan Koontz: We ask for some feedback from your customer summit you had there. we heard one of your peers in the U.S. here talk about BEAD really stalling customer activities, customer planning for — we’ve also heard — I’ve heard my work, a lot of concern from the smaller customers about the regulatory requirements around BEAD, maybe some pushback there. Any feedback for us on either of those topics from your Summit?
Tom Stanton: Yes. So we talked a lot about that. And there are — what BEAD for the most part, hasn’t started flowing yet. It’s real clear that some states are better at implementing than others. There was a lot of interest there. There are a lot of people I mentioned like 80% so that they were taking stimulus dollars. They were getting ARPA funds today. There are different buckets out there, but most of them are participating in some form or fashion. There was skepticism on beat, but in the regulatory piece of that, and we had some breakout sessions on that. But you got to — you have this group that’s just going to do it and think they can do it and don’t see — they see it as a headache, but they see it as a manageable headache.
And then you have people that are — you have some that are saying no, but those are typically have different financing arrangements. I would say the majority of people there were very open to it, and we’re kind of just waiting to see how the state rules, roll out and where they get in line at. So I think that’s very fluid. The money feels like it’s definitely going to be taken, it’s just who’s going to take it. But there was — it was way more like I said, 80% I’m saying they were going to take some point or fashion to see this funding order are we taking it.
Ryan Koontz: Got it. Helpful, Tom. And on the OpEx efficiency, I understand there’s some — something some onetime impacts on FX and probably seasonal kind of payroll type things that hit Q1. Where are we headed to there in terms of OpEx efficiency? Any more you can share in terms of how you think about that line for the rest of the year?
