Alex Henderson: I get it on the margin side, then you’re pretty clear on your guidance there. I guess, my question really is how much of the revenue growth is a function of price versus volume, within the both the December quarter and back half outlook?
Ed Meyercord: Yeah, I think we would point to — I think we would point to low to mid-single digits for that pricing number.
Alex Henderson: Great.
Ed Meyercord: The other comment that I’d make Alex is that the largest competitor in the industry has raised price. And fortunately for us, it creates an umbrella and gives us the flexibility to consider potential pricing moves as well.
Alex Henderson: How much do you think Cisco’s prices are up?
Ed Meyercord: We think in the high-single digit, low-double digit range.
Alex Henderson: All right. Any thoughts on the trajectory of interest income and tax lines for the next couple of quarters? Obviously, your cash position is improving, your debt is coming down. Makes a little hard for us to calculate that number. What is the march expectation for interest and other income? And for that matter, any sense of the June quarter would be great as well.
Ed Meyercord: Cristina, you jump in on that one.
Cristina Tate: Yes. Thank you. So we expect interest expense to remain fairly stable as we do bring down our debt. So we don’t see a large increase in that. And we’re basically affecting our non-GAAP results with roughly an 18% to 19% effective tax rate.
Alex Henderson: So the net of the numbers, because we don’t see the components of it. The net of the numbers, because we don’t see the components of it. The net and that number on the interest and other income line should be continuing at around $2.9 million expense? Is that what you’re saying?
Cristina Tate: Should be higher than that for both interest and .
Alex Henderson: That’s what you posted in the — no, interest in the interest line?
Cristina Tate: Yes. That’s right. Let’s call it $3, roughly $3 million to $3.5 million something in that range.
Alex Henderson: And is there a reason why that’s not coming down as cash balances are getting better rates and the
Cristina Tate: Rates are increasing as the balance goes down.
Alex Henderson: Okay. So the rate — the floating rate on the debt is going up and offsetting the floating rate on the interest — the cash balances.
Cristina Tate: Right.
Alex Henderson: Okay. I got it. And the taxes you already gave me. Thanks.
Ed Meyercord: Alex, the other thing I would just mention is that the share count, you’ll see a drop in share count based on the share repurchases during the second quarter.
Alex Henderson: Great. Thank you. Actually, before I get off of one last question that what are you seeing in terms of employee retention and employee wage rates inflation?
Ed Meyercord: Well, this is the quarter where we have, from a benefits perspective and from a merit increase, this is when that gets whizzled into our numbers. But you’re familiar with that, because that’s always the March quarter. We are in a really strong position and really fortunate we have first of all, our turnover is very low, the lowest among the tech industry peers. We do a lot of comparison, evaluation and analysis and our voluntary turnover is incredibly low. And along with that we are in the market and we’re hiring, because we’re investing in growth, because we have this unique growth opportunity over the next several years, and we have a lot of different growth opportunities that we can invest in. So Extreme has been hiring and our turnover has been low.
