Eric Martinuzzi: Yes. I’m looking for a little bit more detail. You talked about I think it was weakness in Germany and APAC. Is that something that’s, you expect to get resolved in the relatively near term?
Ed Meyercord: Hi Eric. Yes, we do. And actually we’re seeing it, we’re seeing it happen now. Germany went into a recession and it was the first time that the country went into a recession since World War II, and so it definitely created a bit of a shock. It slowed down some of the buying cycles and that has impacted us for the last six months or so. But we’ve seen encouraging signs, we’ve seen the funnel pickup, we’ve seen larger deals come back into the funnel and we see that strengthening. The other key driver is what we call a run rate business. This is really coming from the channel that the run rate business dried up with supply chain constraints, and we’re seeing that come back and, that also plays a big role in EMEA and in German markets where we have a very deep channel and partner community where we see a lot of that run rate business. So the signs are encouraging for us. We feel like we bottomed out there, but we’re coming back.
Eric Martinuzzi: Okay. And then
Ed Meyercord: And with Asia Pacific, I would say the same thing, in last quarter we saw, run rate business as well as some of the larger project deals go away. And now we’re seeing them come back with strength. So Asia Pacific is usually one of the first markets to come back, and we’re seeing that happen, and we’re also seeing it happen in Germany, interestingly in EMEA and the rest of the markets, they remain very strong, and the demand in the U.S. market remains very strong.
Eric Martinuzzi: Got it. You talked about share gains, and I’m wondering if you’re doing anything different this fiscal year with regard to channel partner engagement or incentive to really capitalize on what you characterize as your rising reputation to continue to expand those gains.
Ed Meyercord: Absolutely, Eric, so, what we’ve done is we’ve put in place, we’ve got named – partners, which are just over 200 partners that are our target and more strategic partners, where we put in place specific business plans with them, with quarterly business reviews. And I can tell you the growth targets there are significantly higher than what we’re calling for the company. And the interest level is quite high. I think, with the supply constrained environments and some of the macro challenges they’ve been pinched by some of the larger players, and they’re excited about the opportunity to work with Extreme. And for us, it is a big opportunity to expand wallet share. So there’s our name partners, there are new partner opportunities that we’ve – that we’re looking at.
I mentioned the MSP platform that we’re building. We will attract new partners higher volume partners with our platform. And finally with non-named partners or the larger base of what we call authorized partners, when the run rate business comes back with supply chain loosening we’ll see more volumes out of those partners as well. So the answer is yes. We see a huge opportunity in the channel. There’s clearly channel fatigue with some of the larger players and some of the issues with their solutions in the marketplace, and then some of the issues with their commercial practices.
Eric Martinuzzi: Understand. Congrats on the quarter and good luck in FY 2024.
Ed Meyercord: Thanks, Eric.
Eric Martinuzzi: Thank you.
Operator: Thank you. And our next question coming from the line of Christian Schwab with Craig-Hallum. Your line is open.
