Melissa Fairbanks: Great. Thanks very much.
Kenny Wilson: You’re welcome.
Operator: Thank you. Next question is coming from Mark Delaney from Goldman Sachs. Your line is now live.
Mark Delaney: Yes, good morning, and thank you for taking the question. You mentioned you’re planning for a challenging macroeconomic environment in 2024. As you see things today, are you thinking the macroeconomic environment is incrementally more difficult next year or is it more of a continuation of the kind of challenges you’ve been seeing?
Mike Dastoor: Hey, Mark. Just to clarify, I think the words I used, we’re just being cautious and vigilant. There’s a lot of chat around consumer end markets, we’ve seen some of that. It’s a little bit patchy, it goes up, it comes down, for instance, Q2 was down, Q3 was actually up for us from a consumer standpoint, we’re not seeing anything major in any of our end markets that would give us any concerns. I was just being cautious and vigilant, that’s the only meaning behind my comments there. And if you look at the secular markets that we’re in today, all growth-oriented, the EV, healthcare, renewables, 5G, cloud, they’re all — they’re all moving in the right direction, so I don’t think that gets slowed down by macroeconomic conditions that much, that might be instead of growing by double-digits, maybe it grows by single-digits. But overall, we’re not seeing any of that right now. And we just want to be cautious and vigilant as well.
Mark Delaney: That’s helpful. Thank you, Mike. And my other question is, as you’re seeing such good growth in certain markets like EVs and renewables, are there steps you have to take operationally in order to continue that growth, either more factory capacity, finding more labor and other constraints you may be running into given that the growth rate you’ve been undergoing in a couple of those key markets? Thanks.
Mike Dastoor: Yes, so on the EV side for example, yes, we have to expand our operations where we’re expanding in the Americas, we’re expanding in Europe, we are expanding in Asia. So, there is definitely — we need to grow in our footprint in some of the geographies. Healthcare is a little bit more steady [indiscernible], but overall still the trend is upwards. Renewables, we’ve just opened a new factory in the US, but — and we’ll continue to expand as and when we feel the requirements are there. But yes, it is something we are watching, we’re being very thoughtful, we’re very disciplined. We don’t want to over-invest in CapEx and we’re watching trends very carefully to make sure there are long-term sustainable trends and not just hype which is temporary. So, yes, the answer to your question is, yes.
Kenny Wilson: And I call it follow up on that, Mark, also is that, we always talk about having a single instance of ACP in our company and that, for example, becomes critically important. As we look to get requests from customers to introduce new products, introduce them across multiple geographies, having that single instance of ACP is critically important, but more than that, we’d be JJ Creadon and his teams are looking at making sure that our factory network operates consistently with the same processes. We got a kind of unified table culture as I mentioned. So, our ability to incubate new business or new capabilities in one part of the world and then be able to deploy that at scale across the rest of our network really lends itself to our model. And so we’re feeling quite bullish that we’re really well-positioned to support the needs of our customers as you know, in the world where geographical manufacturing seems to be more invoked.
Mark Delaney: Thank you.
Operator: Thank you. Next question is coming from David Vogt from UBS. Your line is now live.
David Vogt: Great. Thanks for taking my question, and good morning. I just want to go back to the AI automation conversation. I know you’re probably going to provide a lot of color on this in September and I know it’s early days, but when you think about sort of the end markets in your customer base, obviously there’s going to be some technological shifts in what’s happening, whether it’s in the data center or the network stack, how does that work with you and your customers in terms of you potentially winning new types of businesses for new technological sort of changes effectively and generally, what are the lead times in terms of from concept discussion into deployment? And then I have a follow-up on margins, which I can maybe just roll-in here as well.
So, it sounds like near term, the opportunity is for your own efficiency gains from automation going forward in fiscal 2024 from AI potentially, is that fair? Is that a fair way to think about the business next year? Thanks.
Kenny Wilson: Yes. So, for sure, and if I don’t answer this question, David, like there was a lot there. So, for sure, internally, I mentioned previously that, you know, there are internal processes, we will simplify, optimize, standardize, and automate. We’ve been doing that forever. This helps us accelerate some of that as I had mentioned. So, we see that this is definitely going to be help us from our ability to introduce new products, ability to be more efficient, and therefore drive margins. So, for sure, we see that. And in terms of engagement with customers, I mean, we don’t see any one of our end markets that isn’t going to be favorable for whether it’s in autonomous driving or in healthcare or whatever, and the relationships that we have are quite deep-rooted with our customers.
We access their technology roadmaps and conjunction with them to help them introduce new products. So I think that the model, this isn’t going to change the model that we have engagement what we have with our customers, like we got our technical expense of which will be felt then across the company, are actively engaged with customers looking at their roadmaps and how we can support them, so I think for sure that there’ll be some acceleration there. But for us, it’s almost business as usual as it comes to engaging with our customers.
David Vogt: No, that’s helpful. Maybe can I just ask a quick follow-up along those lines, do you — I know it’s early days, do you get the sense that maybe some customers would re-prioritize spending and roadmaps for maybe some existing sort of products and the roadmaps to really take advantage or jump on this new sort of large long-term secular driver in AI on anybody that have maybe some legacy [indiscernible] get de-emphasized?
