Michael Lucarelli : Thanks, Prashanth. And Josh, one thing to add, you asked about utilization when we think about taking them down. One thing I wanted to point out is about our swing capacity and cross-qualification. So before we pulled down our internal utilization, we’ll bring what we can back in from external, internal to support utilizations and our gross margins.
Operator: The next question today comes from Ambrish Srivastava with BMO Capital.
Ambrish Srivastava : I’m going to ask the same question. I think we’re all struggling with it. You guys won a lot of accolades for being super transparent last earnings call talking about the order trends. I think Vivek asked the right question, were you surprised? Is there a seasonality to it? I mean nobody doubts your positioning and how strong you are in your chosen markets. And Prashanth, thanks for clarifying the prosumer versus other companies calling it legacy industrial. But is there a seasonal aspect to it as well that orders stabilize because it’s very contrary to what we’re seeing, hearing from other companies report, including many industrial companies? Because last time, you had said that you expected — although order cancellations were very small, you expected them to climb in the current quarter. So I would love to get a little bit more color on that. And then a real quick tactical one on lead times. Where are the lead times now?
Prashanth Mahendra-Rajah : Sure. Yes. Let me just make a comment on cancellation. So we provided cancellations as a metric that we watch in the third quarter because we wanted to give everyone some context that we saw an inflection happening with orders. So it was in the spirit of transparency. However, I don’t want to get into a pattern of reporting cancellation data every quarter. So if it was something meaningful, we would have called it out, which we didn’t. So you can read that for what it is. I would say that unlike others in the industry, we are proactively analyzing our backlog and working with customers to remove orders that they no longer want given the rapidly changing environment. So this strategy for us is to seek out cancellation.
It helps us align our backlog with current demand, and it really gives us better visibility into where the supply needs and what we need to build. So that has increased our confidence in the quality of the backlog we have. It is still — the coverage is out still over a year, but it is down sequentially. And so while we’re always mindful that there can be some continued noise in that backlog, we feel pretty good about both the guide and as we mentioned, the near term.
Vincent Roche : Yes. I think the diversities, well, Ambrish, of the business in general is stronger than it’s ever been. We’re getting benefit. We’re winning share in the power management market, that sector of our portfolio. And I think if you look at where we are in the Automotive sector, where we’re getting a very strong tailwind from the electrification of the vehicle. In fact, we’re gaining a lot of share in general, I think, within in-cabin and the electric vehicle. So I think we’ve got some tailwinds that are transcending the macro cycle here as well. The only part of the business I would say that has a cyclical timber to it now is the Consumer area, where we have seen kind of the normal pattern there at the — which happens at the tail end of the year.
