Steve Kelley: I’d say it’s about the same. I think the forecast that we have today support a high single-digit percentage perhaps 10% increase in revenue in semiconductor first half to second half. So, I think that’s about the same that we saw a quarter ago. So, really nothing has changed when it comes to the second half of this year. I think what’s changed for us, it is really our view of next year and that’s based on our success with eVoS and eVerest our first design wins and the intensity of activity we’re seeing at our customers right now.
James Ricchiuti: Got it. Thanks very much.
Operator: And the next question comes from the line of Scott Graham with Seaport Research. Please proceed with your question.
Scott Graham: Hey good afternoon. Thanks for taking my question. And Steve you sound better than you did a quarter ago. I noticed the revenue print was a little hard, but the gross margin held up well and you sound better on the outlook. I wanted to ask you a question about the Data Center business, because I so for a number of companies as others do that, have a lot of data center exposure. And I’m still not really seeing the declines that you guys have been seeing the last couple of quarters. In fact, in most cases, to the contrary, I know you kind of walk us through that. You kind of see that the power conversion equipment goes in let’s say, last. Would you color that you know the last couple of quarters of declines that way?
Was there perhaps some destocking involved there? Or was it or was it something else? Because you sound obviously and for August order’s sake much more optimistic about data centers going forward. I just want to trying to understand what happened in years back.
Steve Kelley: Yeah. Scott, I think part of it was just a sequential procurement strategy where you can’t build these AI enabled data centers without a commitment of chips and modules for the GPU and the high-bandwidth memory. So I think once our customers were able to secure those allocations right. Then they were able to come to companies like Advanced Energy and the purchase of advanced power supplies. So I think that’s part of it. I think a second part of as I look back over the last three or four quarters is, first, this is a cyclical market, if you look back over the last 10 years this is the way it goes. They tend to buy a lot and then they go into an inventory digestion mode and they come roaring back. And that’s — it’s pretty much on schedule.
So we would expect to see strong demand from data center for the next four to five quarters based on, the last two cycles we went through. I think the third factor is these customers were also impacted by the supply chain issues over the past few years. And I’m sure there were some inventory issues that they were dealing with as well.
Scott Graham: Fair enough. Thank you for that. I just wanted to maybe touch on the balance sheet, the liquidity there. You did the debt deal a couple of quarters back. Is it essentially that Industrial and Medical are just sort of sluggish markets for you right now that you’re not looking there? Or what is — what is the outlook for the announcement of the closing of a deal or more this year? How does that pipe looking? What’s your optimism on timing of closing?
Steve Kelley: Yeah. So maybe I’ll chime in here. I think we’re fortunate and we generate cash as a company and that we had a successful convertible deal in September. So we’re now sitting on over $1 billion in cash. That said, we’re not going to do a deal, it doesn’t make sense for the company and so we’re still looking for a deal that makes financial sense for the company, makes strategic sense for the Company, that we can integrate quickly and it averages up our gross margin. So we’re still working on it and we’ll see what develops in the coming months.
Scott Graham: I guess more to the point my question is your deal pipeline a little thicker than it was six months ago and is your optimism higher or is that that weakness in those businesses may be a bit of a barrier?
Steve Kelley: Well, I think the deal pipeline maybe slightly thicker. We’ve always had a good pipeline and our practice has been to develop relationships with our potential target companies, so that we’re their first in line when they decide it’s time to make a make a move. That said, I think there’s always going to be issues on valuation. And so that’s I think that’s really where most of these discussions end up you have to figure out what’s a fair value for both parties.
Scott Graham: Right. Thank you.
Operator: [Operator Instructions] Our next question comes from the line of Mark Miller with Benchmark. Please proceed with your question.
Mark Miller: You indicated that the booking trends were positive during the quarter. I was just wondering, is the breakdown a little more strongly? What were your strongest areas for bookings?
Paul Oldham: Yes, Mark, it’s interesting because you know we typically have talked about backlog. We had expanded and now it’s come down in bookings only represents part of our business. But we do think it’s sort of one of those indicators that gives us confidence that things are starting to come back. And we saw increased bookings frankly across all of our markets with the exception of telecom and networking. And as Steve mentioned, the debt markets particularly challenged right now given both having inventory, as well as quite a bit softer market conditions and that’s pretty well publicized.
Mark Miller: Was wondering in terms of your current backlog, what does — is it a front end, back end, more linear type backlog in terms of how it flows through in terms of sales, but what about the margin profiles is similar improving in terms of what you’ve recently been seeing?
