Joe Quatrochi: Okay. Maybe shifting gears a little bit. I just kind of want to think about on the component side. I think if you look at the guidance for the June quarter, this would be potentially where things shake out, the fourth quarter in a row that your largest U.S. competitor to actually be larger from a revenue perspective? I know there’s a lot of inventory dynamics that are going on right now. But just how do we think about your market share and just the sustainability of that as we look forward to a market recovery?
Sean Kerins: So Joe, we don’t really think that there’s any reason to believe market share dynamics have changed in a meaningful way throughout this cycle. If we look at our competition more broadly, we all carry a different mix line card, some comments, some different, and that tends to vary region by region. So it’s not surprising that quarter-to-quarter, you’re going to see some variability in our growth rates and others. But again, we’re pretty confident that we’re holding, if not gaining ground in most of our key supplier relationships.
Joe Quatrochi: All right. Thank you.
Sean Kerins: Thanks, Joe.
Operator: [Operator Instructions] Your next question comes from the line of Ruplu Bhattacharya with Bank of America. Please go ahead.
Ruplu Bhattacharya: Hi, thanks for taking my questions. Maybe I’ll start with Raj. In the ECS segment, Raj, was there a meaningful contribution from netted down items to gross margins? And can you talk about the gross margins in that segment in Americas versus Europe because I think you were trying to focus on the middle market in Americas. Did that have a meaningful impact in this quarter?
Sean Kerins: Ruplu, are you talking about the first quarter or our second quarter guidance?
Ruplu Bhattacharya: No, I’m just talking about the quarter you reported, the first quarter.
Raj Agrawal: Yes, there’s some – first of all, there’s some seasonality from the fourth quarter to the first quarter. So that’s playing a part in a lot of the numbers that you’re seeing because the ECS business has its largest quarter as the fourth quarter of the year. And so the gross margin step down that you’ve seen there is mostly related to seasonality. Year-over-year, that business did grow gross margins, but that’s really what you’re seeing there in the gross margin profile of the business.
Sean Kerins: And as has always been the case, Ruplu, the margin dynamics are different between the two regions. In Europe, there structurally higher based on the substantial size of our mid-market customer base and the mix of the products we offer. In North America, as is the case for the industry, margins tend to be a little bit lower.
Ruplu Bhattacharya: Right. And just to follow up on the second part of that question. I think, Sean, you had said that you’re focusing on customer mix and the mid-market in the Americas region. What innings are we in, in that and how is that progressing?
Sean Kerins: So I think, look, we really like the model that we’ve established in Europe, Ruplu, we think it really reflects our strategy overall, right? We’ve got a substantial mid-market customer base. We have a rich line card of infrastructure software and cloud solutions, good efforts through digital adoption. And frankly, we’re on the same path in North America. It is taking longer than maybe we first thought. We’re fortunate now to have the gentleman that really help build and establish our model at scale in Europe, now leading our global business. And I know Eric will be spending quite a bit of time in North America, but it will take some more time as we look forward.
Ruplu Bhattacharya: Okay. Got it. If I can ask a quick follow-up. Sean, from your prepared remarks for the Components segment, it sounded like you’re seeing some green shoots. I mean, it’s still going through inventory correction, but you saw the book-to-bill was improving and things sounded a little bit better. But when we look at the guide, right, at the midpoint, at least $4.8 billion, I think it’s going to be down 8% sequentially. So just can you give us your thoughts on what you think what you’re seeing for the June quarter in terms of regional mix? And what is – is anything weaker or stronger? I mean, if you can just give us your thoughts on the June quarter for the components segment? Thank you.
Sean Kerins: Yes, sure. I’ll try to frame it up a little bit and then maybe ask Rick Marano, our Global President, to talk about some of the differences from region to region. He’s a little bit closer to our regional market activity. But as you know, in Q1, we saw softness across a number of key verticals for us. There was a better market related to transportation in the West, Aerospace and Defense and Europe, consumer-related verticals in Asia. We saw those as you say, green shoots. We think we’re approaching the bottom based on all the leading indicators that we pay close attention to. We’re probably not quite there yet, but we’re sure getting a lot closer. And as you know, the cycle plays out differently from one region to the next, and it plays out differently over time. So I’ll let Rick give you some additional color about that.
Rick Marano: Yes. Thanks, Sean. I think when you look at the market’s overall, from a regional standpoint; I think they’re playing out as we expect them to play out to a certain degree. Some green shoots in the East in Asia around certain verticals that we’re starting to see some sense of recovery from. To Sean’s point in the West, in the Americas, some green shoots around transportation. Destocking continuing to happen and inventory levels getting to some levels where we’re starting to see some build in backlog overall as we talk about North America. And in EMEA, and we look at basically the mill aero segment of our business. We see some green shoots there. But as we work through the balance of the cycle, as destocking continues to happen, we’re confident that we’re starting to see the market shape up the way we thought we would based off of the regions and the timing within the cycle in those regions as well.
Ruplu Bhattacharya: Okay. Thanks for all the details. Appreciate it.
Sean Kerins: Sure, Ruplu.
Operator: I will now turn the call back over to Brad Windbigler for closing remarks. Please go ahead.
Brad Windbigler: Great. Thank you all again for joining today’s call. We look forward to meeting you at upcoming investor events. Have a good day.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining, and you may now disconnect.
