There’s disruption in the marketplace. So as the market comes back, we are very confident in our position.
Operator: Thank you. [Operator Instructions] And our next question comes from the line of Christian Schwab from Craig-Hallum Capital. Your question, please.
Christian Schwab: Great. Thanks, guys. So, I guess my first question is regarding the excess inventory, I understand the good news of potentially generating cash that normalizes back to your goal of $90 million. But, given the state of the market and, is there any risk that we should assume that you may be more aggressive with pricing strategies to move that inventory a little bit faster?
Kevin Rhodes: Hey, Christian. Yes, I’ll cover that one. I mean, I would say a couple of things. One, I said in my prepared remarks that so far we are holding price as a company, which is good through Q3. We are also hearing and seeing in market that some of our competitors with excess inventory themselves are starting to discount more heavily. And so we have to evaluate that on an ongoing basis as to, how we are doing versus they. We’re typically 10% to 15% cheaper than Cisco in the first place. So, if they do discount more, they need to discount a lot more in order to be at our pricing. So that tends to help us being slightly lower than what they are already. But that being said, we evaluate on a quarter-to-quarter basis, the key here is going to be like, how much is Wi-Fi 7 adopted, 6E? We still have some Wi-Fi 6 in place, but we do believe that we can move that inventory over time. And that’s what we evaluate on a quarter-to-quarter basis.
Christian Schwab: How much Wi-Fi 6 inventory do you have? Is that a material amount? Is that, $20 million worth or is it materially less than that?
Kevin Rhodes: No, I think it’s that or less. It’s not, I would say it’s not a huge amount of the 185 that we have.
Christian Schwab: Ok, perfect. And then the new, I guess, to Mr. Henderson’s question, I guess the new aspirational near-term revenue target is $1.2 billion kind of run rate, $300 million a quarter. Did I do that right? So, ’25, we’re still moving through cost of spending, elongated sales cycle, Cisco pricing competitiveness, blah, blah, blah, blah, blah. Channel trying to figure out which products they want to sell. So should we should kind of assume fiscal year ’26, is, our 1.2 billion plus gold depending on market conditions. Is that fair?
Kevin Rhodes: On fiscal ’26, I think that’s big. Yes. I mean, obviously there’s a lot of ifs in terms of what is going to happen from a marketplace perspective and when will it come back is the big question, right? The channel digestion activity in that cycle and does that end in this calendar year? And then that generates a bit more positive tailwind for the entire industry coming into January of 2026 and into our fiscal year. I personally think that we’re still a couple quarters at least, if not a couple, maybe a few quarters through the end of the year here in order to get back to normal. And then once we get back to normal, we should start to see us getting into the $300 million range as a company at that point. Obviously, at that point, we’ll start to get some normalized seasonality from Q1, Q3 being our lower quarters and Q2, Q4 being our higher quarters.
And so you’ll have a slight contraction and expansion in those quarters once we get back to the new normal. But we think that’s going to be a few quarters out.
Christian Schwab: Great. And then my last question is, should we assume that the $135 million plus or minus OpEx run rate is the appropriate run rate? I forget exactly how Edward did it, but to support and drive a recovery to $300 million and $1.2 billion in revenue, is that the right OpEx number we should be assuming that when we do get there, you’ll still be running that plus or minus?
Kevin Rhodes: Yes, I mean, I think that what we’re looking at in Q4, right, it’s just a pocket in time. And there are other quarters that have, for instance, the other events in them that will make that OpEx kind of ebb and flow. We will have, for instance, merit increases coming in at some point in the future and some other expenses that come in in the future. But for now, I would say that’s the expected run rate for the current quarter.
Operator: Thank you. This does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Ed Meyercord for any further remarks.
Ed Meyercord: Ok, thank you. And we appreciate all the questions and the time and interest in Extreme for everybody participating in the call. I also want to shout out to our, we have a lot of employees joining in here, customers and partners for all of the work and especially the engagement last week and Connect. We are going through a challenging period here. We are, in terms of the rebound, I would say we’re excited about rebounding and I would say the return to normalcy in the industry and our position and what we’re going to be able to do. So thank you all. Thank you for, thanks for participating and look forward to seeing you on the road.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
