Mehdi Hosseini: Yes, got it. Thank you.
Operator: Thank you. [Operator Instructions] The next question is from the line of Mark Miller with Benchmark. Please proceed with your question.
Mark Miller: Thank you for the question. You talked about the implant was driving your high-voltage opportunity. In the last couple of weeks, there’s been concern about slowing in the EV market. EV sales in China this past quarter were down 27% sequentially. Are you seeing any slowing of quoting activity or orders as a result of this? Ford also delayed its capacity additions because of slowness.
Steve Kelley: Yes, Mark, the short answer is no, we have not seen that. So, right now, our backlog is still very robust, very strong. And we’re not getting any signals yet from our customers that they’re going to bring the forecast downward.
Mark Miller: Next question, Telecom, are any of your customers dealing with an inventory digestion situation?
Steve Kelley: And your question was specific to Telecom?
Mark Miller: Correct.
Steve Kelley: Or just in general?
Mark Miller: Just Telecom.
Steve Kelley: Just Telecom.
Paul Oldham: I’m not aware that they’re dealing with a lot of inventory, but it’s also clear if you look at the telecom manufacturers, they’re in a pretty severe down cycle right now. So, I don’t think there’s a lot of inventory overhang there, but also, there’s not a lot of orders. It’s one of the reasons we talked in our prepared remarks about that we would anticipate that our Telecom and Network business is continuing to trend back towards a $30 million run rate versus where it’s ran the last — most of the last year.
Mark Miller: Thank you.
Operator: Thank you. The next question is from the line of Pavel Molchanov with Raymond James. Please proceed with your question.
Pavel Molchanov: Yes, thanks for taking the question. We’re talking about all of the macroeconomic headwinds in a lot of the verticals. But you also said that valuation prospective M&A are too expensive. From the perspective of the sellers who are insisting on these high-deal model, what are they looking at?
Steve Kelley: I can only comment for Advanced Energy. And I think valuations have adjusted over the past a year and a half. And I think different parties adjust the new valuation at different rates and I think that’s going to — I think the answer to your question is going to vary depending on which target we’re talking about. But we think over the next six to 12 months, we’ll probably be able to come to a deal with one or more of these targets. But again, it’s going to depend on if it makes financial sense for Advanced Energy and strategic sense for the company.
Pavel Molchanov: Right. You also mentioned that for M&A, you’re looking for kind of chunkier deal sizes versus maybe what you would consider historically. If Artesyn was the largest M&A deal in the company’s history, compared to that, are you looking to do something even larger?
Steve Kelley: I think it’s one of our goalpost, I would say, SL Power would be the smallest kind of deal we would like to do in I&M and Artesyn would be the largest type of deal. So, it’s going to be somewhere in between those two goalposts.
Pavel Molchanov: Okay, that’s interesting. And lastly, within Industrial and Medical, I periodically ask this question, more and more headlines about new solar manufacturing, not just in the United States, but more broadly outside of China. Can you talk about your opportunities in that infrastructure build-out?
Steve Kelley: Yes, I think in solar, our primary opportunity is probably in the plasma space where many of these solar cells, solar panels need extremely precise thin layers of various things deposited on flat service. And this is an ideal type of application for plasma. And so we provide basically RF solutions for Intel manufacturers, which includes solar.
Pavel Molchanov: All right. Thanks very much.
Steve Kelley: Thank you.
Operator: Thank you. Ladies and gentlemen, this will conclude today’s — you may disconnect your lines at this time and thank you for your participation.
