Tim Long : Two, if I could, sorry. Could you talk a little bit about the software businesses, kind of which pieces of it you’re maybe seeing more of an impact than others? Is it some of the SaaS businesses or it sounds like a lot of the term deals? But anything you can split apart there to let us know on that. And then related to that, what — why are we still talking about the distinction between hardware and software? I don’t think you guys really sell the solutions that way. So could you just give us an update why we still need to look at that distinction?
François Locoh-Donou: Thank you, Tim. I will take your two questions. So let me start on the question on what — where are we seeing the softer demand on software. I think if we split the software between existing contracts that have renewals or to forward or expansion versus new contracts, the renewal business on existing contracts largely performed as expected and where we saw most of the softer demand was on new contracts and new projects, which we had said, we expected this year in the past three years, new software business had grown pretty significantly year-on-year. We expect it coming in the year that new software project would be flat year-on-year. And what we saw in the first quarter was more of a — it was down double digits relative to last Q1.
So this is where we saw more of the pressure. Whether it affected more of the SaaS business or the term subscription business, I would say, it was quite indiscriminate across product lines, what we saw. But of course, the most significant impact in terms of in-quarter revenue was really in this multiyear term subscription deals. That’s really what was a bigger impact on Q1 revenue. In terms of the hardware software distinction, Tim, it’s a good question. Look, I think this year, certainly, and there was also that effect last year that there is a dynamic around hardware where last year we had a lot of demand that we couldn’t really ship because of supply chain issues and this year we are looking to improve on our supply chain and be able to ship all the orders that we’ve had in our backlog.
And we’ve made a lot of progress on the supply chain to be able to do that. But it’s true that a lot of our customers consume both hardware and software. We think that’s going to continue to be a trend from our customers towards more software-first environment. And that’s because of the way they want to consume the technology ultimately. But when we look at the total performance of the company, we focus less on that distinction than driving earnings growth and specifically double-digit earnings growth, and we’re absolutely committed to driving that regardless of the dynamics between hardware and software.
Operator: Our next question is from Alex Henderson with Needham.
Alex Henderson : Great. helping you address a little bit about what your backlog in systems looks like. I think it was running 40% to 50% of four-quarter product sales in systems. And I was hoping you could give us some insights there in terms of what the backlog is at? And then second, obviously, getting the rSeries out in March of last year was an important milestone, but there was a lot of application functionality that you needed to get built into it in order to solve individual customers’ needs in order to replace the iSeries. And I was hoping you could give us an update on where you are on that? And do you think that, that then creates post, say, the June quarter, a refresh cycle on the large installed base of iSeries?
