Cary Baker: I would just – I would just add that we don’t always line up with Avery Dennison’s prints and that’s for a variety of reasons including us selling to the broader market, but probably more importantly as we ship in front of their demand and – and our shipments can proceed our partners demand by up to 90 days, and that can be even further elongated when new programs are coming online. So you have to factor that timing in, and – and I would point you back to a – a comment that Chris made in his prepared remarks. We’re anticipating greater than 25% endpoint IC unit growth in 2023 on a year over year basis.
Harsh Kumar: Got you. Thanks guys. I’ll be back in queue. Thank you.
Chris Diorio: Okay. Thank you, Harsh.
Operator: The next question comes from Jim Ricchiuti with Needham & Company. Please go ahead.
Jim Ricchiuti: Hi, good afternoon. Cary, I wanted to follow-up on just that point about your expectation for 25% endpoint unit volume growth in 2023. What has it been through the first six months? And just based on the way your expectations for Q3, what does that translate to, because it would seem to suggest, I think, some recovery outside of the soft retail market in Q4. Maybe you could help with that.
Cary Baker: Yes. Hi, Jim. Thanks for the question. So you’ll see in our 10-Q that our volume is up roughly 70% on a year-to-date basis through the first two quarters of the year. When you map that in to our 25% year-over-year number, you’ll see that yes, there is a step down in the back half of the year. We announced that our Investor Day in the middle of June that we had increased our life to date shipments by about 10 billion units. So you can assume that through the first half of the year, we did a little bit more than 10 billion units called 11 billion units in the first half of the year.
Jim Ricchiuti: Okay. The follow-up I have is just I’m trying to understand how you get to your adjusted EBITDA guidance for Q3 of these low levels of revenue and lower gross margins. And maybe you could talk a little bit about how we should think about the OpEx in Q3 as it relates to the bigger areas. And then the question is as you come out of this are you – is your intent to maintain these OpEx levels at lower than previous levels that perhaps we were thinking?
Cary Baker: Yes, great question, Jim. So, as I noted, we are tightening our belt on spending, and OpEx is coming down in the third quarter. I also signaled that the litigation expense would be roughly flat in Q3, so Q2 was $4.3 million. So assume that same level of litigation spend, absent that litigation spend, my guide would have been in the black for the third quarter. But yes, we are tightening our belt on spending given this lower revenue line.
Jim Ricchiuti: Okay, thank you.
Chris Diorio: Thanks, Jim.
Operator: [Operator Instructions] The next question comes from Mike Walkley with Canaccord Genuity. Please go ahead.
Mike Walkley: Great, thank you. Maybe just shifting a little bit to the systems business with the strategic European retailer or is it a pause or are they pretty much done rolling out the systems and maybe you could remind us what a more normalized system quarterly cadence is for your business?
Chris Diorio: I’m going to say Mike, thanks for joining us. They are not done, and I’m going to hand it over to Jeff to just tell you a little bit about the pacing.
