Christopher Rolland: Great. Thank you. Perhaps as a follow-up to someone else’s question, did you guys get to take a look at the Cloud Light deal, or did you guys get to look at the Intel Cifo sale to [Indiscernible], and were any of these deals interesting or perhaps in your opinion threatening in any way either? Thank you.
Chuck Mattera: Okay, Chris. Giovanni do you want to take that?
Giovanni Barbarossa: Yes, sure. Thanks for the question. No, we were not engaged. You know, we don’t need pretty much a contract manufacturer to be added to our existing manufacturing lines. So we believe that, as I said earlier, we welcome the competition. We think it’s the combination will definitely be a stronger competitor. So we endorse that, but as I said earlier, it’s also an endorsement to our strategy, which we deployed years ago to be in this market at this time, be leader with a larger scale and the largest — broadest portfolio of differentiated components and sub-assemblies for — to serve this market.
Chuck Mattera: Thanks, Giovanni.
Christopher Rolland: Looks like a nice [Technical Difficulty]. Thanks, Giovanni.
Chuck Mattera: Thanks, Chris. Thank you, Chris.
Operator: One moment for our next question. Our next question comes from Tom O’Malley with Barclays. Your line is open.
Tom O’Malley: Hey, guys. Thanks for taking my question. I just had one on the segments. So in your $4.6 billion guide for the year, could you give us a little more color on what you expect a comm business to do and then more specifically within the comm business, what you’re expecting the telecom business to do and what the data comm business will do? I ask because there’s obviously some big movements inside of the telecom and data comm business, and I’m just trying to get a little better feel for what you guys expect for growth last year . Thank you.
Chuck Mattera: Okay, Tom, good morning. We’re not going to give business unit guidance, and I think Rich can just make a general overall comment. I think at the midpoint, we’re up 11% in the second-half, compared to the first-half. There’s some puts and takes across the segments. You want to say anything else, Rich about it?
Rich Martucci: No, that’s right on.
Chuck Mattera: Okay. If you have any specific question about the telecom market, Beck can take it, but he’s not going to give you guidance in the second-half of the year.
Tom O’Malley: Sure, I guess just the trend looks as though the high-speed data comm business looks as though it’s the big driver of growth. Could you talk about, historically, you guys have said that within your comm business, the transceiver business is below corporate gross margins. In these new products, particularly in 800G, are you seeing a creative gross margins with those new higher speed products or are those still below corporate gross margins? Thank you.
Chuck Mattera: Okay, this is a good question. Well, Rich will take it, but I would say at the launch point with all the things that we have going on, what we were at today, we’re driving to improve is just a general comment for the company. We have lots of flywheels turning inside the company all the way from the front end fabs where we’re still adding capacity to be able to keep pace not with FY ‘24 demand although that’s a challenge because it keeps going up, but especially because we believe FY ‘25 is going to be that much more exciting. Rich, make a general comment about the margins, if you would.
Rich Martucci: Sure. So on the margins, the average is about where we are at as a company, but we fully expect as we go through the learning curve that the margins will increase going forward.
Chuck Mattera: Yes.
Operator: One moment for our next question. Our next question comes from Mark Miller with The Benchmark Company. Your line is open.
Mark Miller: Thank you for the question.
Chuck Mattera: Good morning, Mark.
Mark Miller: I’m doing fine. Good morning. I just wanted to pursue a little more from your guidance, it looks like you’re projecting improvements in margins going forward. You listed several things in your letter to shareholders. Is that being driven by higher revenues? I guess I have a similar concern about transceivers in terms of the, they being accreted to overall margins, especially when you’re seeing strong growth there? So I’m just wondering what’s driving the expectations for higher margins? Is it just higher sales or mix?
Rich Martucci: I’ll take that. This is Rich. Thank you. So as I mentioned before, our ongoing cost reduction, including our synergy and restructuring plans and higher volume, as noted in our guidance, better mix of product on higher margin product as we move forward throughout ‘24, and our long-term continued leverage of our NPI. Anything that we can also get from our vertical integration where it drives margin improvement, we’ll be implementing that as well.
Mark Miller: Last question is the data centers. A couple of firms like Cigar and Western Digital are finally saying they’re seeing light at the end of the tunnel with their data center customers. I’m just wondering what you’re seeing in terms of data center business?
Chuck Mattera: Sanjay, do you want to just make [Multiple Speakers] talk about it?
Sanjai Parthasarathi: Yes, sure. So within our data comm business, there are two drivers. The biggest one today is AI, which is growing at a 47% CAGR. Our traditional non-AI business, if you will, is growing at a slower clip. But together it still — the market is still continuing to grow at a 20% CAGR long-term. So we are pretty excited about that market.
Mark Miller: Thank you.
Chuck Mattera: Thank you, Mark.
Operator: One moment for our next question. Our next question comes from Ananda Baruah with Loop Capital. Your line is open.
Ananda Baruah: Hey, yes, good morning guys. Yes, thanks for taking the questions. Really appreciate it. Chuck, I guess just sticking on transceivers and the higher speed. Do you have any sense if your position, I guess, how your position from a share perspective going forward? Would you expect to, I guess any view on expectations to maintain share going forward, gain share going forward, any context there would be helpful. And I have a quick follow-up, thanks.
Chuck Mattera: I believe that we’re in a great position. I believe that if you look even beyond 800G, given the portfolio that we have, the products coming through the funnel, that we’re going to be able to continue to not only maintain that position, but we’re counting on growing it.
