Phil Gallagher: Yes. Well, it really is a mixed bag. I mean, you see the different report outs in the last week or so. Some are calling out as negative, others as positive. I think it really — you kind of answered your question. Really depends on the content you have in the automobile and where that content is, and whether it be combustible or EV, ADAS, again, the content in the EV is much higher. But even I’m looking at the numbers now. Yes, we saw up year-on-year last quarter. And we call it transportation to be fair so it’s a little broader than just automotive, but automotive is the bulk of it. And on a 3-quarter trend, globally, we still saw it up year-on-year. So not only last quarter but over the last 3 quarters. So it’s kind of — now that looking at it by region, it might be a little bit different but that’s kind of how we’re seeing it at this point in time.
Operator: [Operator Instructions] Our next question is from Ruplu Bhattacharya with Bank of America.
Ruplu Bhattacharya : Maybe this time, I’ll start with Ken. Ken, can you remind us like what revenue level do you need for keeping — in order to keep the components operating margin above 4%? I know you talked about some restructuring and cost control. How much of that is split between Farnell and Components?
Ken Jacobson: Yes. I mean, I think most of the cost actions that you’re going to see through the remainder of the year would be more Farnell because the core business is in the process of executing some of those things. I would kind of say, Ruplu, the question I got before was the guidance implied below 4%. Is it probably at 4%? So I’d kind of flip it and just say, “Hey, this level of revenue, depending on regional mix, is kind of where we’re at to maintain the 4% because the guidance implies kind of right around 4%. And there’s obviously put or take of plus or minus 20 basis points, depending on how much is EMEA and Americas versus Asia, some of those things, but that’s — we’re kind of at that level, absent some other meaningful increase in demand creation mix or supply chain and service scaling a lot more than we have implied.
Ruplu Bhattacharya : Okay. Okay, that’s helpful. And Ken, maybe another one for you. Can you talk about how you think about the cash conversion cycle trending over the next couple of quarters? How should we think about free cash flow? Then you laid out uses of cash. I mean, can you give us your thoughts on buybacks and any opportunity for M&A in this environment or not?
Ken Jacobson: Yes. I mean, I think we’d expect positive free cash flow. We are going to be in the market in the fourth quarter buying back shares. We believe they’re still at a great value, considering they’re well below book value. I would not anticipate any M&A through the remainder of this calendar year. I think we’re always looking. But again, looking at smaller like IP&E type acquisitions, nothing transformational. But at this point, we’re probably not going to be active in M&A over the next few quarters. And CapEx should return to normal levels. So think about it as $25 million to $35 million a quarter as a normal run rate.
Ruplu Bhattacharya : Okay. Okay, that’s helpful. Maybe I can sneak one more in for Phil. I mean, the operating environment is tough right now, Phil. But can you, as a high-level question, talk about what are some of your focus areas to grow revenue over the next 12 months? Where do you think like either which end markets or which geography do you think comes back sooner? And when that happens, like where do you see like Avnet is best positioned? Like which end markets, which verticals, which geographies? And is there anything you’re investing — even in this climate, is there anything you’re investing in right now to better position the company for the recovery?
Phil Gallagher: Yes. Thanks, Ruplu. A lot packed into that question, but I’ll do the best I can to pare it down. Well, we already talked regionally. So we feel Asia Pac’s going to start to bounce back, which is positive. We’re well positioned in Asia Pac and continue to gain share there. So a high-level statement. We’ve shared before on the earnings calls, we’re trying to keep the team intact. We’re not trying to overreact to the market. We’ve had great momentum many quarters in a row now. So we’re being very careful where we reduce expenses while still making investments. And we’re continuing to invest in the verticals. So we — although industrial and everybody knows industrial has kind of been hit harder and that’s a big play for us, we’re positioned extremely well in industrial and we’re going to continue to stay positioned there.
