Tom Stanton: Well, we haven’t gotten to our — I think we laid out a plan where we — Q2 was going to be kind of where we kind of hit our ultimate target that we want to get to, and that’s actually below the Q1 level, and that’s where we’re headed to this quarter. I don’t if you had any more things granular.
Uli Dopfer: We said not the last earnings call, the earnings call before, if you recall it, Ryan, we said our target is to reduce our 2024 expenses by $90 million compared to 2023, and this is still our target.
Tom Stanton: All right. Thanks. I think we have any more industry regards.
Operator: We do have one more question from Tim Savageaux from Northland Capital.
Tim Savageaux : Okay. Great. We had a couple of questions. First one is on the outlook, which is sort of flattish, but I wonder if you might give us a little more color on your expectations by segment. It sounds like and especially after a nice quarter in access and aggregation — that maybe that growth is likely to continue, maybe even subscriber to and be offset by optical continued inventory work down there. But I’d like you to kind of comment on whether directionally that’s accurate or if there’s something else going up?
Tom Stanton: Yes. I think yes, the answer is yes, directionally, that is accurate. We would the other — just the way you said it is accurate.
Tim Savageaux : Great. And I assume you had some pretty sharp moves sequentially in Q1, would you expect those movements by segment to be a little more modest in Q2?
Tom Stanton: I guess I don’t know what you mean in my sharp moves.
Tim Savageaux : I mean, access and aggregation was up 30% sequential almost in Q1. I mean those type movements.
Tom Stanton: Yes. We’re not modeling for that type of sequential increase on a quarterly basis. Yes. We would expect them to just — to get to the numbers that we’re talking about, right? We were expected to be modestly up on a sequential basis and then optical to be modestly down.
Tim Savageaux : Great. I guess what I was looking for. On the 10% customer front, can you comment on — did you have anybody in the U.S.? Or should we assume those are both international.
Tom Stanton: They’re both international.
Tim Savageaux : Great. And last question on the Q2 guide. Obviously, your gross margins were up pretty sharply. And you mentioned the drivers there, OpEx just reiterated the target there was certainly higher than I was looking for. I mean, to some degree, as you look at the Q2 guide for modestly negative operating margins, should we expect that to reverse a little bit maybe with gross margins backing off and along with OpEx coming down pretty solidly.
Uli Dopfer: I mean as you know, gross margin is always subject to customer mix and product mix, especially when it comes to the last month of the quarter, there’s many moving parts. But as you — if you look into your model, right, Tom just said, OpEx, we expect OpEx to come down in the second quarter, which would then mean that if you model the midpoint of the guidance, that gross margin would come down slightly, a little bit as well.
Tom Stanton: Well, I think we’re through the call queue. So thank you very much for joining us on our conference call this quarter, and we look forward to talking to you next quarter. Thank you.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
