Operator: Sami Badri with Credit Suisse. You may go ahead, sir.
Sami Badri: Thank you very much. Chuck, I wanted to go back to a comment you made regarding market share and some of that sitting in the backlog. Now if we assumed that there was nothing in the backlog and all the numbers that you generated were publicly reported through your financial statements, would that show that Cisco actually maintained or increased or even lost market share?
Chuck Robbins: You mean if all our backlog was actually shipped and reported?
Sami Badri: Correct.
Chuck Robbins: Yeah. I think that will be true. I mean, look, we operate in lots of different markets. So is it true 100% of the markets? That would be difficult for me to say. But I believe that as we ship out the — particularly our secure Agile Networks, our enterprise and networking products, that’s certainly going to help. As we catch up on our data center infrastructure, I think that’s going to help. There’s also just reporting dynamics that occur. Some of our competitors report certain routing products into data center switching, and we’ve reported into routing, which makes it difficult to ascertain. So it’s an imperfect science on top of that. But I do believe that as we — as our backlog unwinds and gets back to normal levels over the next 18, 24 months, then I think that you’ll see — I think you will see that dynamic.
Sami Badri: Got it. Just to be clear, that is Cisco gain share? I don’t know, just to make sure I heard you correctly.
Chuck Robbins: I think that’s right. In certain key areas, I mean, not perhaps across every one, I’d have to go do the analysis. But in some of the key ones that I know all of you are worried about, the answer is yes.
Scott Herren: Bigger markets.
Chuck Robbins: In the bigger markets.
Sami Badri: Got it. And then one question just for Scott. So Scott, maybe you could tell us where in fiscal 1Q of 2023 did shipments begin to start accelerating just because we want to understand the trend here going from now through fiscal 4Q and putting into that product gross margin comment into perspective. What I’m really trying to understand is as shipments start to accelerate, how much will software attach to those shipments just so I can understand the glide path here, what happens in some of the other segments outside of just secure network, Agile Networks, et cetera, right? I’m just trying to get this pull dynamic that may occur from the other segments related to shipments going out the door.
Scott Herren: Got it. Yeah, we — so we talked about the overall backlog reduction at about 10% from Q4 to where we ended Q1. That — a subset of that, of course, is software. That same percent held pretty much true in software. Software continues to be well over $2 billion of our overall product backlog. But it’s about — it’s actually about the same reduction sequentially as we saw in overall backlog, so right around the 10% rate. I think as you look ahead and try to model out the 50 bps to 75 bps of improvement that I talked about, I think it’s going to be probably a little bit heavier in the second half of the year than it will be in the second quarter. You saw the guide for the second quarter.
Sami Badri: Got it. All right. Thank you very much.
Marilyn Mora: I’ll turn it over to Chuck for some closing remarks.
