Quinn Bolton: Great. Thank you for all that color, Bill.
Operator: Thank you. And our next question comes from the line of Toshiya Hari with Goldman Sachs.
Toshiya Hari: Good afternoon. Thanks so much for taking my questions. First one for you Bill, based on the fact that you’re reiterating the full-year guide, you guys are clearly doing really well. But curious if you’ve sensed any change in customer behavior, whether it’d be the large hyperscalers or some of the enterprise OEMs across your business? Have you seen any projects get pushed out or downsized? Or is the adoption of AEC for instance too strategic and too important for your customers to really tweak projects even going into fiscal year €˜24? Thanks.
Bill Brennan: Yes, I think that what we see in our customer base is really two different threads. We have seen a reduction in CapEx and a delay within our Chinese hyperscale customers. There’s no question about that over the past quarter. We’ve seen kind of a shift in the ramp to high volume on the next generation optical. And that’s I think everybody is well aware of the macro situation in China. And these hyperscalers don’t necessarily serve a wide customer base globally. And so the second part is really the U.S. hyperscalers, and although we’ve heard that there may be a slight bending of the curve. We haven’t heard that anyone is going to decrease spending year-over-year. And these are with the customers that we’re engaged with that we’ve ramped production and we will ramp production with, so it might be a slowing of the growth, but the growth still is very significant.
I will reiterate that for us, it looks a little bit different, because we haven’t reached the point of saturation and so every new product ramp that we see is next generation better than the current generation technology. And so if anything, there’s still a fierce competition amongst data centers to deliver better services to their customer base in order to win market share. And so we see that there is a very, very consistent pull for next generation better than technology to get better productivity, to get better performance. And even an environment like this at a macro level, that becomes critical to be able to differentiate. So we still remain quite bullish on the customers that we’re ramping. We haven’t seen any major shifts.
Toshiya Hari: That’s great. Thank you. And then as my follow-up, on the second customer in your AEC business, you talked about revenue recognition toward the end of this fiscal year and then a meaningful ramp in fiscal year €˜24. I understand you can’t give too specific with these customers, but I was hoping you could compare and contrast the ramp that you’re expecting in fiscal year ’24 with the second customer vis a vis what you’ve experienced so far with the first customer. I think you’ve talked about a potential uplift in pricing just given the complexity. But if you can kind of level set us on your thoughts there into fiscal year ’24 twenty that would be super helpful? Thank you.
Bill Brennan: As a contrast, I think we’ve been relatively pleased with what we’ve been seeing from the second customer in a sense that over a year ago, we engaged with them. We delivered samples — for samples of this unique cable that we’ve built in December of last year. And we’ve now finished a very stringent qualification. And so it’s a full green light on ramping as soon as they’re ready. Their schedule has been really consistent over the past several quarters, and the contrast there is that with our first customer, our solution was enabling a new architecture, but it wasn’t necessarily that the servers were changing. So they had a high volume stream of deployments and what they were trying to do is shift to an architecture that gave them much, much better utilization of floor space and much better utilization of equipment.
But it wasn’t like it was the next generation server, and so we kind of naturally saw the customer kind of dual passing it and trying to cut it over in an orderly fashion. And so it was a little bit delayed, compared to what their first objectives were. So that’s kind of the big contrast is that the second customer, this is a brand new generation. And so there’s extremely small — extremely strong pull to deploy and deploy on time, so that’s something that we’re pretty encouraged about.
Operator: And our next question comes from the line of Vivek Arya with Bank of America.
Vivek Arya: Thanks for taking my question. I actually had two for the first one, Bill you mentioned the engagements for the third and fourth hyperscaler also that seems like a positive. I’m curious, the adoption of AEC seems like a no brainer on surface? What is the main pushback that you get? Is it just a matter of time? Is it the ramp of a certain speed? Is it 400 gig or 800 gig? What do you think drives that sharp inflection upwards with multiple customers?
