So there’s an area where we’re starting to get nice confirmatory to our anecdotal understanding of what will need to happen with these new Generative AI networks. And we’re seeing sort of the cloud and the beginning, the leading edge of that second optical network that will need to get built to do these Generative AI programming. So that is what we’re seeing in more of the detail. It’s just too early yet for us to over-conclude and call timing. We’ll know more in the coming months. Ed and Jeff and Ann are out there speaking with you all, they will make sure they share as we learn more. Does that work for you?
Asiya Merchant: Yeah, great. And if I may, on display as well, I think it’s tough to call when these panel makers come back with their utilization levels off of the 1Q down tick that you guys have talked about and I think the industry has talked about. But if the retail volume happens to be, let’s say, mid to high single digits from a glass perspective and you’re already starting the year with healthy inventory levels, is it reasonable to assume, like a, sharp snapback in 2Q and 3Q? Any color there would be helpful. Thank you.
Ed Schlesinger: Yeah. Asiya, I’ll take that one. And I won’t give you a specific quarter. I think that’s hard to call. But if you think about the Q1 panel maker utilization levels and a mid-single digit glass market for the year, you would need to see a double digit increase from their current levels in Q1 to achieve that glass market. And even if the glass market were lower than that, let’s just say even flat, you would still need to see a double digit increase from their Q1 level. So I think the answer to the sharp part of your question is yes, the timing is obviously harder to call.
Asiya Merchant: Okay. Thank you.
Ann Nicholson: Next question.
Operator: Our next question comes from the line of Meta Marshall with Morgan Stanley. Your line is now open.
Meta Marshall: Great, thanks. Maybe doubling down on Wamsi’s question, just around whether you’ve seen with the pricing increases on the display business, any changes in share or has it largely played out as expected? And then maybe just second question, on the gross margin stability that you expect into Q1, is that from kind of efficiencies that you found in the business over the last year that are just starting to play in or kind of the pricing increases on the display business or is that from a mix of the business? Just how to think about that stability in Q1 over Q4? Thanks.
Ed Schlesinger: Yeah, hi, Meta. I’m going to — I’ll start with your second question on gross margin. So I think if you think about what we’ve done throughout ‘22, we improved our productivity across all of our factories significantly and back to historical levels, best demonstrated levels. That’s improved our gross margin. We’ve also raised prices and we’re now sort of right side up versus inflation. So that’s improved gross margin. And we’ve certainly taken out some costs as well. So we’re able to run at a much more efficient level, even at a lower volume, in a lower volume environment. That’s allowed us to hold our gross margin, and we’re also managing OpEx well, so that actually helps on the operating margin line. And that’s what’s allowed us to increase gross margin through the year despite sales falling, and that’s why we feel confident around the gross margin or operating margin or both as we go into 2024. And I apologize, can you repeat the first question?
Wendell Weeks: I understood the first question. I think what…
Meta Marshall: Yeah, just share on…
Wendell Weeks: Did our price increase lead to a disturbance of our market position. And we see no significant change in our market position as a result of our pricing actions to share more appropriately where the yen is at and where inflation is at.
Meta Marshall: Great. Thank you.
Ann Nicholson: Next question.
Operator: Our next question comes from the line of Martin Yang with Oppenheimer. Your line is now open.
Martin Yang: Hi, good morning. Thank you for taking our question. First question on display. Have you ever done an analysis similar to the chart that presented optical fiber thinking of a normal trendline for display volume in relation to current weakness on retail, particularly in China? China has been weak for quite a few years now. Are we significant below the trend line if there is such a more normal retail demand?
Wendell Weeks: So, excellent question. The answer is yes, we have done those. And we’d be happy to share this. We’ll put that on our list to at some point in time this year. To be a little more responsive to the specifics of your question, China is just behaving a little differently than what you would normally expect on display demand as a country goes through its development cycle. And you are right, it seems to be net underperforming. We are not counting on, in the dialogue that we’ve been having with you about the $3 billion spring that we have. We are not counting on China “sort of” reverting to a more traditional demand cycle. We’re continuing to expect that to be relatively below trend for the foreseeable future. Does that make sense to you, Martin?
Martin Yang: Yeah, definitely. Thank you. Another question on specialty, given that the semi-exposure within specialty has been pretty strong, has that changed that segment’s seasonality a little bit, where it was more exposed to smartphone cycle, and now do you think that has shifted a little bit?
Wendell Weeks: I still think that the biggest thing that drives the seasonality or the different demand in different, I don’t even know what to call it, seasonality, the different demand in different quarters is major product launches. And also major product launches not only of our customers, but also of us introducing a major new category defining product. And any sort of real analysis of this sort of points to it’s the product, right? So I don’t know that we can over-conclude much beyond that yet, Mark.
Martin Yang: Got it. Thank you. That’s all from me.
Ann Nicholson: Great. Thank you. Next question.
Operator: Our next question comes from the line of Samik Chatterjee with JPMorgan. Your line is now open.
Samik Chatterjee: Hi, thanks for taking my questions, and thanks for all the color today on the call. Maybe just the way I’m interpreting your comment about the $3 billion opportunity that you have in front of you is, let’s say hypothetically the markets do recover by 4Q of this year, your exit run rate on a quarterly revenue would be somewhere close to $4 billion. And maybe just help us sort of then range bound some of the sort of the revenue opportunities here in terms of if you don’t see a macro improvement by the end of the year, what is sort of the exit run rate for the year if you just have the seasonal improvements that you’ve talked about from 1Q onwards without a material macro improvement that hopefully gives us some sense of where the potential outcomes are here in terms of exiting the year?
