Csaba Sverha: Regarding gross margin, Samik, obviously as you know there are lots of puts and takes in the gross margin and this last fiscal quarter we had a mild headwind as usually from merit increases and gross margin came in as we had anticipated at 12.6%. And obviously, we are working hard to make sure that we continue to execute well efficiently, provide cost reductions for our customers and also make sure that we manage the mix and mix of business to deliver industrially the margins. I think we have done a good job there in the last couple of years. Obviously, there are a couple of factors to be mindful that may resolve some seasonalities like the merit increases in the first quarter. It’s also subject to foreign exchanges which have been tailed in the past and then we managed to overcome of the temporary headwinds there as well.
So, there are lots of puts and takes but we are optimistic that we can maintain this middle 12.5 round about gross margin and above, working hard to make sure that we continue to deliver on the operating margins as we scale the business and accomplish our roadmap for growth.
Samik Chatterjee: Thank you. Thanks for taking the questions.
Csaba Sverha: Thanks, Samik.
Operator: Thank you. And one moment for our next question. And our next question comes from the line of Dave Kang with B. Riley. Your line is open. Please go ahead.
Dave Kang: Hi, yes, thank you. First question is regarding your 400 gig plus revenue of $322 million, what is the rough split between datacom versus telecom?
Seamus Grady: We typically don’t break out and provide that breakdown, but obviously as you appreciate what we have communicated in the past, datacom growth in that space have been obviously far more than the telecom growth. So, you would think datacom is going to be much stronger in that area, but we haven’t provided a breakdown on that.
Dave Kang: Right, and then on the telecom portion of that 400 gig plus, I mean is this growing or is it going to inventory question, any color on that segment?
Seamus Grady: I think we touched on that as well, that the traditional telecom business that’s not DCI as we typically would include that in the Telecom segment has been going through inventory digestion and has been there for a while and we continue to see a headwind there. But our DCI and 400G particularly have been very strong over the last couple of quarters and we continue to be optimistic on that space. So, I think again, the puts and takes there is traditional telecom still experiencing headwinds and the datacom, which is again driven by data centers DCI is going strong for us.
Dave Kang: Got it. And just quickly on the number of 10% customers you had or near 10% customers and new 10% or near 10% customers?
Seamus Grady: We are disclosing our 10% customers in our 10-K at the end of the year. So, obviously we have disclosed that in August. At that time, obviously had the 10% customers, but we are not disclosing this during the quarter. So, you will have to wait for another couple of quarters to see if any change is there.
Dave Kang: Got it. Thank you.
Seamus Grady: Thank you, Dave.
Operator: Thank you. And I’m showing no further questions and I would like to hand the conference back over to Seamus Grady for any closing remarks.
Seamus Grady: Thank you. Thank you for joining our call today. We’re very pleased with our first quarter performance, including record revenue, net income and free cash flow. We’re optimistic about the longer-term drivers of our business and our ability to continue to execute well to produce strong results. We look forward to speaking with you again and seeing those of you participating in the Needham Virtual Conference next week. Thank you and goodbye.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
