Maxwell Michaelis: Okay. And then just last one for me and then I’ll jump back in the queue. Quickly here, just wondering if you guys are seeing any decommits or cancellations within your pipeline backlog?
Jeffrey Benck: I mean, obviously, when we take an order, right, we end up securing material to go build that product and contractually, customers are obligated for the responsibility of that. There’s always some push-ins and pullouts just depending on what the needs are. So I don’t see anything unusually out of order than what we normally see. As you get out two, three quarters, there’s more flexibility in what customers can do related to demand balancing. But this environment, we haven’t seen something substantially different in terms of that demand profiling.
Roop Lakkaraju: Yes, Max, I would just add. I mean, I think as a general comment, that’s right. And obviously, in certain sectors, we’re not seeing any kind of demand reprofiling, right? So we talked about A&D strength, and that’s continuing in the fourth quarter, and we expect into 2024. So it really is kind of sector-by-sector low consideration.
Operator: The next question comes from Steven Fox with Fox Advisors. Please go ahead.
Steven Fox: Hi, good afternoon. A couple of questions from me. First of all, just following up on the last couple of questions there. With regard to the flat revenues for the first half of the year, how much — when you talk about the weakness, how much is just mature programs just producing less units for customers as opposed to like maybe slower ramps for kind of a wait-and-see on what the macro is? Any color on that, and then I have a couple of follow-ups.
Jeffrey Benck: I think what I would say on that is that the legacy programs typically — we aren’t typically on programs that are very short-lived, maybe a little bit different in advanced computing where we might have an HPC build that comes to a conclusion. I think — what I would say there is that we have had some elongation in some of the new product ramps where it’s taken a bit longer and maybe customers are being a little more careful about development engineering spend. So we see some prolongated development cycles. I won’t say it’s substantially pronounced in one area, maybe really across those sites where they’re multiyear kind of projects anyways. I think, if anything, I think you have customers that might have had their own unfulfilled demand and they’re kind of catching up with that and now looking at how much inventory do I want to have, where do I want to go with my own portfolio and you’re just being cautious about that given the environment.
Steven Fox: Okay. That’s helpful. And then — I’m sorry, if I interrupted.
Jeffrey Benck: No. That was good.
Steven Fox: Okay. Sorry. And then along those lines, I think you mentioned that even with flattish sales, I forget the exact words, but you talked about further margin progression. Are you trying to say that like your margins go up in the first half from where you exit? Or are you just — were you talking more broadly? What, in general, do you think about sort of how the environment is impacting margins?
Roop Lakkaraju: Yes. I mean I think what we’re saying is more generally, we’re continuing to focus on operating margin expansion, and that will continue as we get into 2024. I think it’s a little bit early to give you a lot of specifics at this point in time as we work through things. But with the operational efficiencies and utilization focus, productivity, we do anticipate operating margin continue to strengthen into future periods.
Jeffrey Benck: Our own model, we projected higher margins. Obviously, it goes out to 25%, Steve, as you know. But we just — we see opportunity that we could continue to go where we can continue to improve things even in a flatter environment. So I think it’s more just a reflection of that, that we’ve been on a nice trend of growing operating income faster than revenue. And as we look forward, we want to continue that and think that while we’ve closed the gap substantially to where we needed to be, we still have room that we can be better.
