Jim Suva: Thank you, Sean. Sean before you were at Arrow and before COVID, there were some supplier consolidation, some supplier changes about using distribution, not using distribution giving more value-added demand creation, giving less value-added creation to the distributors. I’m just wondering now that hopefully, if we exit COVID and hopefully get to more normalized supply chain, are you seeing or having discussions with suppliers for any changes? And are they positive, negative or no changes. I’m wondering if there’s actually more opportunity? Or is there like more consolidation? Or kind of what’s going on because the past three years have been challenging for everybody. Thank you.
Sean Kerins: They certainly have. Thanks, Jim. So maybe take your question in a couple of pieces. I mean, first, from a consolidation perspective, that’s a little tough for us to call. Consolidation will likely continue in the industry, but we don’t have any specific knowledge of anything in play. We’ve tended to benefit from some of that and at times, maybe get heard from some of that. So that one is a little bit tough to call. But from a program perspective, look, we’re always having conversations with our suppliers. Our suppliers are always looking at ways in which they can work with us to rely on more of our capabilities I would say, in general, not less. I do believe there’s more demand creation potential in the overall semiconductor supplier market in total.
We saw our demand creation mix improved year-over-year. We look at design activity every quarter pretty closely throughout the world, and we see design registrations, design wins still going up. So while you might from time to time catch wind of a supplier that’s looking to trim the margin profile in their channels, I’m comfortable that there’s plenty that still place a lot of value on the engineering investments we make for demand creation and give us a chance to be rewarded accordingly. So I think the outlook for that particular piece of the question is still very valid and very promising.
Jim Suva: Thank you so much for your details. Congratulations on good results in such a challenging time. Thank you.
Operator: Your next question comes from the line of William Stein from Truist Securities. Your line is open.
William Stein: Great. Thank you for taking my question. First, I’d like to ask about the trend in lead times broadly. I think it’s clear that they’re coming down, but I wonder where you think we are in that normalization process. Are we somewhere in the middle innings? Or are we still in the beginning of that process. Would you expect that to continue throughout the year? And then I have a follow-up.
Sean Kerins: Hi, Will. So it’s funny because I think you read some headlines specific to certain components of the technology mix and people broadly assume the supply constraints have gone away. But we still see it as very mixed. I mean, lead times have come in, in certain cases. But on average, the lead times we see across our whole electronic components business is twice the pre-pandemic average. Now that’s down from some of the higher levels at one set at, but it’s still not sufficient to satisfy the backlog that we still see. So I call it mix on a technology basis. Hard to say when it all fully normalizes, I don’t see that happening probably anytime soon. Maybe it will gradually improve throughout the year. Don’t know. We really don’t want to speculate too far ahead of the quarter in front of us and maybe just a little bit more.
Remember, all the capacity investments that we read about over the past couple of years, that takes time to materialize and really change the structural in a supply formula for the industry in total. So I think it’s still going to be kind of mixed and it’s going to be a little bit of an ebb and flow here over the course of the year. But we’re going to focus mainly on what we can see over the next 90-plus days.
