Matt Sheerin: Yes, thank you and good morning everyone. Just related to the hardware sales, I know client devices are part of it, but so are infrastructure, products, storage servers, networking. And I know you’ve commented that you’ve had good backlog, particularly on the networking side, but that’s the expectation where that backlog were to get worked down with improving supply. So could you give us some color on what you’re seeing with those products and how that plays out in Q4 and into next year?
Joyce Mullen: So yes, so the infrastructure backlog has largely normalized now. And we are seeing some softening and infrastructure demand that’s really, again, consistent with what we’re hearing from our partners. There’s a bit of uncertainty just, acquisition, quotes are taking longer to turn into POs, et cetera, et cetera. However, we still believe the long-term dynamics are very strong. Again, we think Gen AI will be an accelerant around infrastructure, and so we’re spending a lot of time. It’s just sales cycles are a little longer.
Matt Sheerin: Okay. And you talked about sequential growth in client devices in Q4. Would you expect the infrastructure products to be also up seasonally?
Joyce Mullen: Well, we have a little bit of a different dynamic because we just lost a bunch of backlog in Q3, so we would not see the same dynamic there. That’s largely driven by backlog.
Matt Sheerin: Okay. Got it. That’s helpful. And as you noted, the free cash flow has been very strong. I know the inventory’s been coming down. I imagine because of the client device flush and also a better supply. Could you talk about expectation for working capital and inventory going forward?
Glynis Bryan: We would say that our inventory has largely normalized as of right now versus the buildup that we had back in the supply constraint era, and we would expect that it would stay around this level as we move forward. Our working capital has been great at this stage, given that hardware is very soft. It’s improving, but it’s still very soft. We would anticipate that we’d still be in a positive working capital environment if hardware were to grow and be kind of low to mid-single digits. It becomes more problematic for us when hardware is growing in the 25% to 30% – devices in particular, in the 25% to 30% range like it did in 2021 and 2022. So we’d anticipate that we’d see a new working capital that we have right now.
Matt Sheerin: Okay, great. And just lastly, your comments about the pricing and profitability of projects that you had in terms of customers and increasing pricing. Could you talk about that? Is that across hardware, across services? How successful has that been?
Glynis Bryan: I think it’s been very successful, as evidenced by the gross margin appreciation that we’ve seen and the improvement in gross profit on declining revenues. So we have a strategy that is related to hardware. I want to think about it that way. In terms of the floors, that the pricing that we will accept from large customers and approval processes that we put in place with regard to level of gross margin relative to size of customer, et cetera. And we’ve also put some floors and ceilings in place around services that has helped drive that improvement in gross margin, as well as really looking and standardizing our utilization metrics across all of our service practices so that we are measuring it consistently and that we can really pinpoint where we need to be focused in terms of utilization.
And to be fair, we’ve also leveraged some offshore capability to lower our overall charge out raise that has helped with the gross margin as well as services. Since then, a combination of various factors, I would say they’re now systemic. They’re not one-off anymore.
Matt Sheerin: And there have been no share issues or share loss issues because of that in terms of competitive landscape?
Glynis Bryan: I would say if you look at our results, we’re looking for our largest reseller competitor out there, as I’ve talked about it from a hardware, from a client segment perspective, we’ve definitely held our own. We’ve definitely held our own.
