Paul Chung: Hi. Thanks for taking my question. So, just on Anord Mardix, so you’ve had this acquisition for about a year. Can you talk about how that business has performed kind of on revenues and margins and would have been some of the benefits of cross-sell? And how material has the acquisition been to kind of winning other deals in the space? And as we think about future complementary kind of acquisitions, where are you looking to find incremental value and which specific verticals should we be thinking about that can kind of see the same playbook from an Anord Mardix?
Revathi Advaithi: Yes. I’d say, Paul, the acquisition has gone very well. If you recall, the strategy was we wanted to get bigger in the power space and we particularly wanted to focus on data centers, both colo and hyperscale, and expand our portfolio in that, because we felt it’s a long-term macro for us that was important. And Anord Mardix has — in terms of revenue growth, has done really well and they have a strong backlog. We’re more focused on expanding their footprint and really helping them grow their business faster. And in terms of how it has helped us win overall business, I would say, in hyperscale and in colo, where the focus is really on schedule and delivery of schedule, it really helps to have a more comprehensive portfolio to be able to offer to our customers.
And we see that as a differentiator that nobody else has in our space. And so, the conversation has definitely changed with data center space in terms of how we’re focused on power and on the IT sector, whether it is racks and enclosures and servers and storage. So, we’re seeing the effect of it. It’s playing out exactly how we thought it would, and you see that in our cloud expansion and our overall growth there. So, really good asset, I would say, for us. The growth story has been fantastic.
Paul Chung: Okay, great. And then, just a follow-up on cash flow. Which end markets are you having kind of the most issues with golden screws? And how do we think about some of the timing of conversion there on cash? And are you taking advantage of more customer deposits to kind of partially offset as well? And then, I know it’s early, but can we see more meaningful conversion in ’24 and get close to that 80% mark in your view? Thank you.
Paul Lundstrom: Sure. So, I think three questions in there. First on the end markets, the older technology or the larger node technology have been the biggest headwind of late. Things have gotten a little bit easier and so the more the commoditized, more consumer end markets. But automotive and industrial, to an extent, health solutions have continued to face pressure from those shortages and that has not been helpful. You see it manifesting itself in the P&L as we talked about earlier today. But you’re absolutely right, Paul, that also has an effect on — that also has an effect on inventory and ultimately cash flow. I think the second part of that was, what are things that we can do to offset that. Well, working capital advances and support from our partnerships we have with our customers has definitely been helpful.
And you probably heard in our prepared remarks, I was very pleased to see that for the first time in a long time, we saw the trends of net inventory, and I say net as in gross inventory less advances from customers, actually came down sequentially. So that was a source of cash and great to see. Is there light at the end of the tunnel? I don’t know. But certainly, I’d like to see that trend. So, we are getting some support from the customers. I think Shannon asked a question before about the last couple of years what’s changed, well, that would be one change. I think better partnership with our customers in supporting a very voracious appetite for inventory. And then, the third, looking ahead to 2024, it’s a little premature to guide on that.
Long-term, I think everybody understands that this is a timing issue and ultimately, yes, I mean inventory should come down as all these shortages start to abate. But I would balance that with a comment on organic growth. Look, Flex is probably going to grow 16% this year. That definitely puts some pressure on working capital, but it’s our job to manage that. So, a little early to target on ’24, but I think overall this is — it’s really just timing.
Paul Chung: Great. Thank you.
Paul Lundstrom: Yes. Thanks, Paul.
Operator: Your last question comes from the line of Jim Suva from Citigroup. You may ask your question.
