Samik Chatterjee: Yeah. Hi. Thanks for taking my question. And Francois, if I can sort of go back to the comments about the stabilization of demand and dig into that a bit more. I mean you didn’t comment about the stabilization in a quarter when we saw systems revenue declined significantly, as you sort of walk — have walked through the backlog. So I’m just wondering when we interpret those comments related to both hardware and software, is that — should we be interpreting this as sort of a more normalized mix based on what you’re seeing in the macro and that sort of as we think about fiscal ’24 means that you’re sort of looking at a $700 million or $2.8 billion annualized sort of number as being at least where the floor is where you track be if the macro remains the same? Is that the way to the went to sort of interpret the demand stabilization comment?
Francois Locoh-Donou: Hi, Samik. Okay, so let me unpack that. There was a lot in there. So, when I talked about the demand stabilization, it’s really the fact that if you look at the first two quarters of the year, things were getting progressively worse in March than they were in January, and they were worse in January than we felt them were in September. But when you back to where we were at the end of June, we didn’t feel things have further worsened. And so, things have stabilized. That’s really the origin of by my commentary. As it relates specifically to hardware, Samik, as you know, we have — demand has been soft on hardware throughout the year. And it’s been soft largely because of the macro environment and customers sweating their assets, also customers needed to digest a lot of shipments that we have now been able to make.
Customers have made — placed orders last year, they have not been able to get the equipment and they needed to get the equipment and get it installed and deployed. So all of that is happening. As a result, we have worked through our backlog and our backlog has come down significantly, which is why you’re seeing hardware, where it is in Q3. And frankly, when you look at even next quarter, Q4, I would expect hardware to probably be even down from the level that you saw in Q3 in terms of where were demand is at today. As it relates to what this means for 2024, as you would expect, it’s too early for us to be gating to 2024. We’ve said in the past that cycles of this nature in the past have been four to six quarters. We feel we are three quarters into it.
So you can infer from that where potentially demand will return. We do expect, by the way, demand to return in 2024. When exactly, we don’t know when. But we do expect demand across the Board to return and hardware demand to be higher next year than it is this year. However, I would ask you to keep in mind that because we have been able to ship so much of our backlog, we said last quarter that there would be six to eight points of headwind on total revenue growth next year based on the way we worked the backlog this year. And so, I would keep that in mind when you’re thinking about revenue for next year.
Samik Chatterjee: Got it. And Francois, a question that I’m getting a lot from investors really is about AI and their investors are expecting inflection again in terms of application growth because of AI use cases. It’s really more about your application security capabilities. How do you think they positioned to navigate sort of that inflection and application growth and how do you think about the challenges in managing that growth as well at the same time?
