And secondly, the timing of the inventory digestion is quite difficult for us to be precise about. We hear the same — I suppose the same industry observations that others have made that it seems to be a two quarter — the timing of this seems to be about two quarters and, as we get towards the end of the calendar year, we should start to see order patterns come back to normal in the early part of calendar 2024. We just don’t know. And I think we’ll have to just wait and see like everybody else, but that’s what we’re hearing. But until we have the purchase orders, we’re reluctant to kind of call it at this point.
Joe Cardoso: No. Got it. And I appreciate it, Seamus. I guess my follow-up is just around the 800-gig and — maybe I should just call it, the AI opportunity for you guys in datacom. Obviously, you did — you’re doing tremendously well with the current program that you won. I’m just curious like what is the opportunity for you guys to win an additional program beyond the current customer that you’re in? Do you have any visibility around it? Is that opportunity materializing in any way? Just curious to hear your thoughts around expanded beyond just this current customer to perhaps a different supplier. Thank you.
Seamus Grady: Yes. So, we’re not — first of all, we’re not going to break out, if you like, the AI program itself, because it’s right now, as you rightly point out, it’s coming from one customer, and we’ll really let them — we’ll let them speak to what’s going on in that business. What we can say is that, that particular program is ramping very fast, and has obviously become a meaningful contributor to our revenue and our growth rates and has really helped us to absorb the decline in the telecom business. The timing couldn’t have been better really. But we also believe we’re very much in the early days of this program and this opportunity, very, very much in the early days. We’re really just a couple of quarters into this of what we believe, as we understand, it will be a very long cycle and a very long trend.
So, we’re looking forward to expanding, let’s say, beyond — yeah, definitely beyond one customer, but also to multiple programs with the customer base that we have currently. So, nothing really to announce at this point, but it does seem to represent a very significant opportunity and we’re very excited about it.
Joe Cardoso: Thanks, Seamus. Appreciate the responses, and congrats on the results.
Seamus Grady: Thank you.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Tim Savageaux with Northland Capital Markets. Your line is open.
Tim Savageaux: Hey, good afternoon, and congrats from me as well on the quarter.
Seamus Grady: Thank you, Tim.
Tim Savageaux: You — I don’t know if I missed it, but in terms of the guide, which is kind of flattish overall, although, clearly better than might have been feared, do you expect the trends that you saw in the fourth quarter to continue in terms of a significant decline in telecom and continued strong increase in datacom, or do you expect that to kind of maybe flatten out a little bit? And I have a follow-up.
Csaba Sverha: Hi, Tim. This is Csaba. Yes, we are expecting a pretty similar pattern in our Q1. I pointed out that we are anticipating telecom to be down sequentially in Q1, and we are anticipating datacom to be up. So, the trends haven’t really changed quarter-on-quarter. And we also said that auto and laser, we are anticipating to be flat. So, telecom, down; datacom, up; and flat, auto and laser.
Tim Savageaux: Okay. I guess I’d try to come back for a little more color on that, just the given the degree of volatility we saw in Q4, which is very significant increases in datacom, very significant declines in telecom. When you say expect a similar pattern, is that what you continue to expect, big movements on both sides?
Csaba Sverha: Yes.
Tim Savageaux: Or — yes?
Csaba Sverha: Yes, that is correct.
Tim Savageaux: Okay, great. I want to follow-up on the access or PON systems side. You announced a deal with Nokia recently. I imagine that’s going to take a while to ramp up. But between that and your pre-existing relationship with DZS, I mean, at what point, I guess, in fiscal ’24 would you expect that to start to get material for you? And was it material at all in Q4?
Seamus Grady: So, first of all, I think it wasn’t hugely material in Q4, I would say. And if you take the business with Nokia, it’s important for sure and we’re very, very happy to be expanding the relationship with Nokia, but we don’t believe it will be a material or a 10% customer or anything like that. We — it’s an important piece of business. It’s an important deal. It’s important to Nokia, it’s important to us to help them with their onshoring activities. But in terms of the revenue impact, I wouldn’t want you to leave thinking that it’s a hugely significant revenue driver, it’s not.
Tim Savageaux: Well, maybe a little bit more broadly, given they’re in the same kind of neck of the woods or competitors. If you look at the access systems area in general, maybe refocus the question on that in terms of timing and decree of materiality in fiscal ’24, including DZS.
