But with all these right things in place we’re confident that this will continue to drive us revenue improvement as well as margin improvement over time.
Keh-Shew Lu: Thank you. This is Dr. Lu. And as I mentioned in my speech, we will continue to focus on R&D, spend the money in R&D, focus on new technology new process and new product. And this is we still target of our vision of $1 billion of gross profit. And so short term, yes, we have some inventory problem or not. This is inventory adjustment. But for us still need to focus on long term.
William Stein: Thank you.
Operator: Our next question comes from David Williams with Benchmark. Please go ahead.
David Williams: Hey, good afternoon. Thanks for taking the question. I guess maybe firstly, here just it seems like there’s been some mixed commentary out of the automotive segment and the put and takes around just where the exposures are and whether it’s good or bad. But just kind of wondering if you could help us kind of square some of your commentary on the automotive, where you’re seeing the weakness particularly in terms of geographies and whether that’s ICE or traditional excuse me ICE or EV anything that kind of helps us understand where the particular weakness is coming from would be helpful?
Emily Yang: Yeah. So David, this is Emily. I think overall in the automotive market segment that we see in general the inventory level increase, right? So we do expect some inventory rebalancing. Each customer situation can be different from the others and each program can be a little bit different as well as down to the part number level. So unfortunately, not everything equal. But in general, we also see with the inventory rebalancing coupled with certain area of demand adjustment as well, right? So as a result of this too and I also mentioned you know quarter end inventory control by some of the distributors. So we really believe that’s really compounded area that we do expect automotive is going to be under a little bit of challenge in the short term.
And from the regional point of view, I think for automotive, especially with strategic account, it’s really a global approach, right? So it’s really kind of difficult to point it out to a specific region. But in general, we’re seeing more of the weakness from the North America and also Europe market, so that’s really what we see.
Keh-Shew Lu: Yeah. And if you look at we’re still able to accomplish record of the 19% of the revenue. So our automotive still continue growing. At the same time, we still continue improve our content of the automotive. Because that’s the effort we are focused on and I think we still continue successfully to increase the content.
Emily Yang: Yeah. So I think I mentioned we actually introduced 139 automotive compliance product just in third Q. I believe second quarter is 113 and the previous quarter is actually other 79 or 80 numbers. So ,you can actually see the focus overall for the company on driving new product, introduction, as well as getting into a new market area expanding our SANS and TAN will continue to be the focus.
David Williams: [Technical Difficulty] Is that part of the issue going into the fourth quarter?
Keh-Shew Lu: Hey David can you repeat that? You really broke up on that question. Could you repeat that?
David Williams: Yes. My apologies. Was the — UWA strike was that any impact to you guys on the fourth quarter?
Emily Yang: Yes. I mean you know there’s definitely indirect impact, but I think relatively it’s not a big impact.
David Williams: Okay. All right. And then just lastly for me is on the gross margin can you kind of maybe give us a puts and takes there and just the guidance on the margin side is down pretty further than we would have thought, but is it just volume or is this part of the service agreement that’s also having impact? And any color there would be helpful. Thank you.
