Wendell Weeks: Quarter 1 is like no time to call optical, right? So let me get another month or 2 into it, and we should be able to tell you how this all looks. We’re very close with our customers. We’re watching what they’re doing. We’re talking to them a lot on their project timing. And we just finished executing perhaps the most significant price increase — not perhaps, the most significant price increase in my 30-plus years of being associated with optical communications, and we did it successfully, which gives you an idea of the extent of planned demand in this business.
Operator: Our next question will come from Asiya Merchant from Citi.
Asiya Merchant: But just on free cash flow, Ed. Just — I know a lot of questions have been asked on revenue, sales and how you guys think about margin improvement. Can you shed some light on cash flow and your adjusted free cash flow post the levels in ’22?
Ed Schlesinger: Yes, sure, Asiya. I mean I think on capital, I shared our view that we expect to hold CapEx similar in 2023 as we did to 2022, and that was sort of similar to the prior year as well. And I think what you saw in 2022 that really impacted our operating cash flow the most was the inventory build. We built about $500 million of inventory in the year. So obviously, that negatively impacts our operating cash flow. Our goal is to make inventory go the other way. We made a small step in the fourth quarter here. And even not building inventory, just holding inventory flat helps our cash flow going forward. So our goal is to make our operating cash flow go up, keep our CapEx flattish, and so that should make free cash flow go up. But we’ve got work to do to be able to do that, and it’s primarily in the inventory space.
Asiya Merchant: Okay. And are you expecting like a lot of resumption in share buyback here? I know you talked about dividends — an increase in dividends. How should we think about the pre — how should we think about share repurchase in ’23?
Ed Schlesinger: Yes, I’m not going to guide that specifically. But what I would say is our priorities are investing for organic growth, and we will continue to do that. We believe there’s a lot of opportunity out there. That’s sort of the highest priority for our operating cash flow, and then we want to return cash to shareholders. We shared what we plan to do on the dividend. And then, of course, buybacks are important to us. As a reminder, we did a very large buyback in 2020 — I’m sorry, 2021 with Samsung’s conversion of their preferred shares. We bought back about 4% of our outstanding shares, and that sort of is still — we’re still paying for that. We’ve got one more tranche to pay for that in April of 2023. And then we’ll have that behind us. That should give us more flexibility. And buybacks, of course, will remain important.
Ann Nicholson : Operator, I think we’re out of time. So I’m just going to shut us down for today. And I want to thank everybody for joining us. Before we close, I want to let you know that we’re going to attend the Susquehanna Financial Group 12th Annual Tech Conference on March 2. And on March 7, we’ll be attending the Morgan Stanley Technology Media and Telecom Conference. Additionally, we’ll be hosting some management visits to investor offices in select cities. And finally, a web play of today’s call will be available on our site starting later this morning. So once again, thanks for joining us. Operator, that concludes our call. You can disconnect all lines.
Operator: Thank you. This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.
