Operator: Thank you. We will go next now to Maheep Mandloi at Credit Suisse.
Maheep Mandloi: Hey. Thanks for taking the question. Just clarifying the previous comment, you talked about transitioning to new pricing over the next six months or the next two quarters by Q2 of next fiscal year. And second question, just on OpEx. How should we think about that you were able to reduce it a little bit for this year? Going forward, should we expect somewhat flattish at these levels or, obviously, slower growth than revenue growth, but how should we €“ just any clarifications or clarity on that would be appreciated? Thanks.
Rex Jackson: Yes. So, on the pricing front, again, if you think about €“ if you announce a price increase, you got to get it out to channel, you got to get it out to sales. It impacts only new deals that are not already quoted. Then you have to get those deals closed. As you know, we have been building backlog all year. So, then you got to cycle it through your backlog. So, it takes €“ you do a June price increase, it fully see that roll through, you are looking at nine months at a minimum, just the way it works, right. Good news is we are four months through. And so we are well underway, and we did see some nice impact from that in the third quarter. But I think we just have to be patient there as that works its way through the system over the next several months.
And then as far as operating expense trajectory is concerned, I think if you look at our OpEx for Qs one, two and three on a non-GAAP basis, which I would encourage you to do, even though we all look out. You will get to see the actual trajectory of the company. And it’s been very steady this year, and that’s very purposeful. There is some €“ the nice thing as we look forward, our new product introduction expenses that hit OpEx will be many of which were in this past year will be substantially reduced. We are going to be intelligent on hiring. But as I have said in my prepared remarks, I do think OpEx will go up, but I think it’s going to go up in a very measured way in the near-term and a substantially reduced rate relative to our revenue increase.
And then frankly, if you were to look back 2 years from now €“ 2 years ago, what was the OpEx rate of increase percentage-wise, nobody expects us to be below that. So, the rate of increase is going to go down.
Operator: Thank you. We will go next now to Shreyas Patil at Wolfe Research.
Shreyas Patil: Great. Thanks so much for taking my question. I just wanted to maybe come back to the margin and just as we are thinking about the prior guide, I think it was indicating somewhere around 25% or 26% for the back half. It sounds like it’s going to be more like in the low-20s now. I understand some of that is related to some of the ongoing supply chain issues. But maybe can you help us reconcile the missing piece €“ the pieces there that’s kind of resulting in the margin softness?
Rex Jackson: Yes. So, the number €“ so, if you go through our last two calls and this one, what you will see is the PPV/logistics side of the house, when we had some effort charges this quarter. And then we had €“ twice we have had stuff not get out of the dock from an AC, which is a higher-margin product perspective. So, there have been 6 points to 8 points, even 9 points in each quarter that doesn’t have anything to do with our business model. It doesn’t have anything to do with the products. It doesn’t have anything to do €“ well, it may be a little bit with mix but not really. It’s sort of points lost on the shop floor. And so our thoughts on trying to recover to get to our annual guidance coming out of Q2 and guiding to the low end of that range was dependent upon some of that stuff cleared up.
