Once again, additional information is available at ADTRAN’s Investor Relations webpage at investors.adtran.com. Thank you for attending our call. I will now turn back over to the operator and we will take your questions.
Operator: [Operator Instructions] George Notter from Jefferies.
George Notter: I wanted to just ask some more questions about what you’re seeing in the marketplace. You referenced inventory digestion, you referenced the macro economy. But I know one of your competitors was also talking about BEAD acting as an overhang on current demand. But could you tell us more about what you’re seeing, is there a BEAD effect in your business, or what can you tell us that gives us more detail on demand trends?
Tom Stanton: So I think when you were talking about BEAD, we’re typically talking about the Tier 3, the smaller carrier space. If I look at OLT shipments specifically into that space in the quarter, they were actually pretty flattish, maybe slightly down. I would expect it actually probably a little bit to pick up this quarter, so I don’t know. I guess you could say, yes, there’s an impact because that’s a segment that had been growing 30% year-over-year for some period of time. But as to how much of that, I don’t get a sense there’s a lot of inventory in that Tier 3 space. I think what we’re seeing is real demand. So I would say it’s — for us, anyways it’s flattish at this point in time. There are without a doubt some customers that are waiting for BEAD and then there are some customers that are moving forward. So I would say, yes, I see the impact. But for us that kind of points back to a flattish number. Does that answer your question?
George Notter: And then, I know there was an effort to look at the real estate portfolio in Huntsville and maybe elsewhere. Any update on where you guys are in rationalizing real estate?
Tom Stanton: We’ve got — if you’ve ever been here, we’ve got three separate buildings here. We have consolidated everybody and there was just way too much space kind of post pandemic and even maybe a little bit pre-pandemic as we had hiring going on and post acquisition, we had a lot of resources in Europe, specifically in Poland as well as India. So we had too much space. So we are clearing out two of the towers that should be done right at the end of this quarter. We have started showing those properties and that’s moving forward. We’d still expect second half of this year for the impact on that.
George Notter: Any update on what kind of proceeds you might be able to get from that process?
Tom Stanton: So there are two — I don’t know if we’ve given specific ranges. So there are two different paths that we can go down, and we talked about one of those being on that is fairly straightforward to execute on, but we haven’t made a firm decision to execute on that. And that’s the tower, I guess what we call the East Tower, which we could do a sell and lease back on. On the North South, which is the one we’re just talking about, I’m thinking it’s in the range of $40 million to $60 million or something like that.
Operator: Your next question comes from the line of Michael Genovese from Rosenblatt Securities.
Michael Genovese: So is the CPE subscriber solutions inventory correction over, is that the right way to think about it?
Tom Stanton: Well, that’s the way I’d like to think about it. And the real answer is, I can’t say — I don’t want to say yes, because I think that we sell it to a lot of different people. We happen to have an uptick. We’re expecting it to be kind of in the similar range during this quarter. So I would say for our specific inventory, I think, we’re through the deep part of that. So let me just leave it at that.
Michael Genovese: And can you talk about on access and aggregation, just some of the timing issues some more? And I mean, we’ve got your first quarter guide sequentially flat. What should we be looking at as we move through further quarters given the timing on access and aggregation?
Tom Stanton: So we had a couple of customers and it really was to one in Europe, probably can guess who that one is. And then an MSO here in the US that had bought previous to that. I would expect the MSO probably to come back this quarter. The other customers are going to have a decent quarter this quarter, it will be stronger than last quarter. And then Tier 3s I already talked about, they’re kind of flattish.
Michael Genovese: And then finally for me, I mean, just when we look at the overall guide, the midpoint of the guide at 225 flat sequentially. I mean, you’ve already mentioned subscriber solutions being about flat sequentially. I mean, should we look at the other two, optical [Technical Difficulty] and access aggregation roughly flat as well?
