Amit Daryanani: Got it. And then just on the CCS side, could you just talk about what contribution do you think be projects could have for the company over time? And it’s reasonable to think that, that might be more of a calendar ’25 revenue contribution versus ’21. I’m wondering if you could size what that potential could be? And when do you think that you start to see the benefits there?
Chuck Treadway: Yeah. I would say it’s going to be at the very end of ’24, probably at the earliest, but most likely, we believe it’s more 2025 now. In terms of the opportunity there, I think I said in our last earnings call, it’s around $4 billion opportunity over four to five years. I think that still holds.
Amit Daryanani: I’m sorry, is that $4 million to $5 million or four years? Is that the TAM? Or is that what CommScope could get? Just so I understand that.
Chuck Treadway: Yes, that’s the TAM.
Amit Daryanani: Yeah, fine. Perfect. Thank you.
Operator: One moment for our next question. Thank you. Our next question comes from the line of Matt Niknam of Deutsche Bank. Your line is now open.
Matt Niknam: Hey guys, thanks for taking the question. My question is mainly related to inventories and where they sit at customer levels. I guess first on NICS, if there’s any more that you can give on where inventory levels sit today? And any visibility in terms of when demand comes back? And I ask it in the context of commentary that implies 1Q should be the bottom with an uptick in subsequent quarters, yet the commentary doesn’t sound too great in terms of end market demand. So that’s the first question. And then maybe secondarily, on CCS similarly, you talked about uptick in orders in CCS. Just wondering whether customers are largely done with inventory work downs or if that’s varied across different types of carrier customers? Thank you.
Kyle Lorentzen: Yeah, I think as you mentioned, as we think about just where our customers are with inventory destocking, clearly, it’s by business. I think as we think about your questions just around sort of the NICS and RUCKUS business, I mean, I think we have visibility to the inventories. The inventories have been coming down. I think where we are in that business is there’s probably still a little bit of ways to go before we get to the destocking that needs to take place to start seeing sort of more normal growth. I think on the CCS side of the business, I think as Chuck mentioned in his comments, I think we’re probably close to the inflection point of seeing that inventory has been worked down by the customers, and we’re now starting to get back to sort of normal growth levels. And I think we’re seeing that in some of these order rates that we’ve talked about.
Matt Niknam: Great. Thank you.
Operator: One moment for our next question. Thank you. Our next question comes from the line of Tim Savageaux of Northland Capital Markets. Your line is now open.
Tim Savageaux: Hi, good morning. Question on CCS. You mentioned increasing order rates throughout the quarter. I guess my question is, have you seen that continue here into Q2 and have you seen any changes with regard to the mix? You mentioned stronger building and data center, an uptick in carriers, but maybe not as much. Have you seen or do you expect that to change here as we go forward? And just as a follow-up, if you look at the magnitude of the sequential increase you’re expecting for CCS in Q2, can you give us some more color on that, say, relative to what you saw in Q1 over Q4? Thanks.
Chuck Treadway: I’d start by saying we believe that where we are right now is kind of — we’re hopeful. We’re cautiously optimistic that this is the start of the recovery. Right now, the data center and building a campus business is stronger than broadband. But I believe those will kind of line up to get to the same level of growth going forward and potentially broadband being more, but we haven’t seen that yet, but we — that’s what we would expect as this thing moves forward.
Kyle Lorentzen: And I’ll sort of answer your question about Q2 relative. I mean I think what we’re seeing is it continues to be a little bit dynamic from the standpoint of — even though we’re sort of into the quarter, I think it’s still dynamic. I mean, I think as we said, I think we sort of stick with Q2 being higher than Q1 for CCS revenues. But clearly, it’s pretty dynamic, and we’re seeing the increases and we’re not exactly sure where that’s going to wind up at the end of the quarter. So I don’t think we’re going to be specific about what that’s going to look like, but we’ll have to play through the quarter.
Tim Savageaux: Great. Thanks very much.
Operator: I’m showing no further questions at this time. I would now like to turn it back to Chuck Treadway, Chief Executive Officer, for closing remarks.
Chuck Treadway: Yes, thank you for your time today, and I appreciate your interest in CommScope. I’d like to all of you to have a great rest of the week. Thank you.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
