James Fish: Hey ladies, nice quarter and Anshul as well, of course. Purchase commitment, I wanted to circle back there as well, it’s moving down as you guys anticipated. But obviously, you guys are a much larger business than you were pre-pandemic. So, I guess, how are you guys thinking about the level of normalcy of purchase commitments as we, kind of work through this. And obviously, Ita, you talked about that we’ll see sequential impacts to cash flow still on the inventory as we, kind of convert that purchase commitment to inventory. Is that something that should reverse then in early 2024? And how should we, kind of think about free cash flow conversions for this year then?
Ita Brennan: Yes. Look, I think if I have my ways, the purchase commitment number will come down significantly over the next, I don’t know, 12 to 18 months right, because we don’t need it once we start to see some of these component lead times come in. So, we need to – obviously to manage that. Some have long lead times that we do want to receive, and you will see that grow in inventory, some, we’ll look to reposition, if we can. But obviously, there’s a keen focus on kind of managing that number now. But the net of it is, I think you grow inventory through the year, it will consume some cash, and then it will flip in 2024, where we’ll actually start to, kind of generate more cash as we start to bring that inventory number down.
Do we ever go back to kind of where we were before? I think probably not. I mean we probably will carry a little bit more inventory and more buffers, having just gone through what we went through the last couple of years, but it should certainly get – come down from where it is today.
James Fish: And any thoughts on the free cash flow conversion for the year?
Ita Brennan: Yes. I think for this year, inventory is a consumer of cash. So, it’s probably – it’s hard to know exactly what that looks like, but I think every quarter, we’ll increment that inventory balance as we go through the year, that will concern some cash. But I mean the P&L is highly cash positive with the guidance that we’ve put out. So, I think we’ll still be generating a healthy amount of cash, but we will build inventory balance.
Operator: Your next question comes from the line of Ittai Kidron with Oppenheimer. Your line is open.
Ittai Kidron: Hi, thanks. Hi ladies, nice quarter. Ita, I wanted to dig into the comments on gross margin where you expect them to improve through the year? there. Number one, what – now the supply chain is getting better. What is it in the supply chain that’s still expensive that’s hurting you on the gross margin side? And how does that get mitigated? And second, the improvement that you anticipate, is that just a reflection of the mix, meaning cloud perhaps moderating to your point or is most of the improvement driven again by supply chain – better pricing on the supply chain side?
Ita Brennan: Yes. I mean I think in Q1, we were still consuming broker parts and other parts that we had purchased prior, right? Because I mean, obviously, you have to prepare for the quarter, that should get better in Q2 and then even more so as we go through the rest of the year, where we’ll stop consuming those legacy, if you like, broker parts that you have in the pipeline. So, that will definitely help. The other thing that’s important is now that we don’t have the soft start of the and stuff, we can focus on manufacturing, we can focus on driving manufacturing, driving efficiencies there, et cetera. So, we should see some improvements come out of that as we go through the year. I’m not assuming a whole lot of a change in the mix of the business, maybe a little bit more, but not a lot, just because we have a deployment pipeline for cloud, right?
