And lastly, as 5G is deployed, operators are looking to further monetize by adding the SA versions and new applications such as Open RAN continue to be gain traction across the global ecosystem. And so, the opportunity that we have in R&D continues to grow, and we’re well positioned with the comprehensive offerings we have to address it. I also want to point out that we have a very diversified business. Yes, 5G gets a lot of attention, but we have secular trends in wireline evolutions, which we’re well positioned to capitalize on based on the acquisitions of Ixia that we have made, and we continue to see traction there. Not to mention the newer additions to our go-to-market with automotive and with next-generation semiconductor nodes. So we run a diversified business, and I think that’s a source of greater stability for us and over time.
And the second part of the supply chain question that you asked is, at the beginning of last year, we took a series of actions to basically redesign our products to second source components, and we had a — we’ve talked about it on earnings calls. And all those actions have really enabled us to do better than we expected every quarter. But as we think about the supply chain, I speak with a number of our semiconductor supply chain partners, and they’re all putting actions in place to obviously increase capacity, but it still continues to be a constrained environment. We’re not back to this pre-COVID sort of supply environment yet and might take all of ’23 to get there from our best information right now.
Operator: Our next line of questions comes from the line of David Ridley-Lane with Bank of America. Your line is now open.
David Ridley-Lane: Sure. You talked about some of the headwinds to revenue in the first quarter, but one tailwind not mentioned is pricing. And just sort of wondering how significant is pricing today versus more normal levels. I mean you’re giving a couple of points tailwind from that. And then what type of volume growth is really embedded into first quarter’s guidance?
Neil Dougherty: What was the last part of the question? I’m sorry, David, I missed just that last part.
David Ridley-Lane: The type of volume growth is embedded in the first quarter guidance.
Neil Dougherty: Yes. I mean I think the pricing question — obviously, we’ve had — we’ve been doing our best to keep pace with inflation. We’ve had multiple rounds of price increases over the course of the last 12 to 18 months, and those are embedded in the backlog. Although I think you can see based on the fact that we have maintained margins over the course of fiscal ’22, it’s flat at 65%, which frankly, I think in this inflationary environment was a very strong result that we’re basically keeping pace on a margin basis with what we’re seeing in terms of increases. And so — and right now, while on the one side, yes, we have these increases that are embedded in our backlog and will continue to yield dividends and revenue, it’s not like the inflationary elements have stopped in the cost structure as well.
I referenced, for example, that we are going to be doing our salary administration for next year here in our fiscal first quarter. And this will be our second consecutive year with salary increases that are materially above our historic averages. As to the volume question, given the nature of our business where we’re selling instruments that literally cost, in some cases, hundreds of dollars and, in other cases, cost $1 million, that’s a very difficult question to answer. There’s such a high deviation of mix that — it’s really hard to get to a meaningful answer on that question.
