Dan Fleming: Yes, that’s fair. Our long-term model remains the same, so — and just to reiterate what that is 10% to 15% of our overall revenue mix will be IP, the remainder being product. And from a gross margin perspective, 63% to 65% gross margin in that long-term model. So what is long-term? We really view that as a three-plus-year model. And we’ve stated in the past that this fiscal year we expect the gross margins to expand purely out of increasing scale. There are subsequent factors in FY ’24 and ’25 that will increase the product margin as well. One notable difference if you kind of read into some of Bill’s comments for the year AEC has been ramping faster than we initially expected. So if you look out a year from now in our FY ’24 that has an implicit margin impact.
And with optical taking a little bit longer to ramp than we initially expected again somewhat of an impact in FY ’24. So overall, our corporate gross margin in FY ’24 is probably going to be similar to what it is for the full-year of fiscal ’23.
Richard Shannon: Okay, perfect. Thanks for that detail, Dan. Bill, maybe a big picture question for you. Obviously, Ethernet is your dominant protocol standard you’re supporting and obviously a lot of growth opportunities there. But you’ve talked about USB and PCIexpress in the past and I think you’ve even alluded here recently to cable opportunities, AEC opportunities that exist with one or both of those. Maybe you can just kind of give us a big picture on your thought process on when those technologies and products start contributing more meaningfully to your outlook?
Bill Brennan: For PCIe, our intent is to really enter the market in a big way when the market moves to Gen 6. Of course, we’ll build a product that is compatible with earlier generations and we expect to get traction earlier to get cycles prior to Gen 6. But that’s really what we expect is the point when we’re going to enter the market in a big way. And so we see that being in the ’25, €˜26 timeframe. And it’s really dependent on the schedules, the servers decibels and hopefully things get back on track and the world goes faster. So I’ll say that our view of the overall market opportunity for PCIe and it can be measured from a PCIe retimer within the server and also within the UCI equipment. We view this as a very large market opportunity.
On the USB front, it’s probably the same kind of timeframe that we see the (ph) 80 or 80 giga’s per second or two lanes of 40 gig PAM 3. It’s probably the same timeframe that we see that opportunity. Now as it relates to the AEC opportunity, we definitely see opportunity within both segments or both standards and it’s a very natural extension for us to look at that opportunity, the same way that we look at AECs for Ethernet. Now for USB, I’ll tell you that the consumer market will probably not be the one — the company building cables will probably go straight to a reference design model.
Operator: Thank you. And our next question comes from the line of Suji Desilva, .
Unidentified Analyst: Hi, Bill. Hi, Dan. So question specifically on the revenue breakout perhaps for Dan. The product engineering services would — I know it’s a smaller part of the revenue, but would growth in that revenue be a lead indicator of activity you have with hyperscalers where you see are those, kind of, indicators as you go from one to two to three or four hyperscalers, would that grow? Is that the way to read that line?
Dan Fleming: I would not read it that way, it’s we’ve — from day one as a company, we’ve been able to capture some NRE dollars from customers as we’ve developed chips and solutions for them. It really speaks to the innovative nature of our solutions. And longer term, we don’t expect that to grow necessarily in absolute dollars. And just like our IP revenue, it can vary quite a bit quarter-over-quarter. So it’s not — I wouldn’t really read it as a lead indicator for anything such as that.
Unidentified Analyst: Okay. Thanks Dan. And then the second question perhaps for Bill. You talked about the TAM for AEC being to $4 billion to $5 billion, I think, I heard the number correct — I heard it correctly. Is that the vast majority of that hyperscaler or is there a meaningful non-hyperscale part that could kick in as you kind of evolve your offering beyond these initial customers?
Bill Brennan: Yes. Just to clarify, I referenced a multi-billion dollar market that the market forecasts are forecasting and it’s really in the four to five year timeframe.
Unidentified Analyst: Four to five year, okay.
