Robert Mason: And is — just for clarification, is that likely to show up in the EISG segment or in the CSG segment?
Neil Dougherty: It’s a mix. I think earlier in the year, those orders skewed towards EISG, not surprising with the strength in Aerospace, Defense and Government fiscal year-end. In the fourth quarter, they were more skewed towards Aerospace, Defense end market. So it really is a mix.
Robert Mason: Very good. And just as a final question, if I could. Just do you have any sense as to what a reasonable time line should be to come complete the entirety of the ESI acquisition, the squeeze-out process?
Neil Dougherty: Yes. It really depends on what happens during this tender offer process, which again, we expect to complete the tender in the calendar first quarter. I think if we do that, then we’ll move immediately and that goes as expected, we’ll move immediately to a squeeze out that I think would have us complete mid-year. There are scenarios, where if less than the required number of people get to tender, where it will take us a little bit longer to meet the appropriate thresholds to essentially do the squeeze-out process.
Robert Mason: Very good. Thank you.
Satish Dhanasekaran: Thank you.
Operator: Our next question comes from Aaron Rakers with Wells Fargo. Please proceed.
Aaron Rakers: Yes. Thanks for taking the questions. I want to go back to the prior question on kind of the longer backlog metric. I think last quarter, you talked about that being $200 million. Is that — I know you said 8% of orders, but is that still that — roughly that number, which should be on top of the $2.3 billion or so total backlog you came out of exiting this last quarter?
Neil Dougherty: Well, the numbers are included in the backlog, right? And so if you take our order rate for the year about 8%. So you get to somewhere around $400 million of longer-dated backlog, orders with longer-dated backlog that we took within the year. Obviously, some of that — if we took a 10-month order in Q1, it would have shipped here at the tail end of ’23, but you can that view that most of that $400 million is sitting in our backlog, as we enter fiscal ’24.
Aaron Rakers: And to be clear, that will, typically, your backlog was a six-month forward number. It sounds like a majority of that would be recognized in the back half of the fiscal year. That’s a fair assessment?
Neil Dougherty: I’m just thinking, as we’ve received those orders all throughout the year. And so again, there is — there are a couple of large-scale projects that pushed out into ’25, where we’ll get kind of lump sum revenue recognition. It probably has a back half skew though for the portion that’s in ’24, I would say there’s a back half skew for sure.
Aaron Rakers: Okay. Perfect. And then the real quick follow-up is, could you talk a little bit about what you’re seeing on Wireline with regard to AI? Just maybe flesh out exactly where you’re involved? Because it seems like that is — clearly, as we move towards possibly Ethernet and 800 gig, it seems like that would be inflecting. I’m just curious to how Keysight’s involved in that?
Satish Dhanasekaran: Yes. Thank you. I think as we talked about, our Commercial Comms business is diversified with exposure into both Wireless and Wireline parts of the ecosystem. For the Wireline parts of the ecosystem, we’re obviously tethered to computing, networking, being the core end markets. And what we’re starting to see is some signs to the compute markets are starting to stabilize after a period of inventory digestion that was underway. But equally, there is some incremental spend that’s occurring driven by cloud and hyperscalers, who are pretty serious about upgrading that infrastructure. And so that’s manifesting itself in manufacturing test for our transceiver test business. It’s also manifesting itself in increased spend that we saw this quarter for 800 gig and also terabit Ethernet solutions.
And so we’re quite pleased with the sequential uptick we’ve seen. Again, one quarter doesn’t make a trend, but I think we’re encouraged by the progression that we’ve seen on the Wireline side.
Aaron Rakers: Thank you, guys.
Satish Dhanasekaran: Thank you.
Operator: Our next question comes from Chris Snyder with UBS. Please proceed.
Christopher Snyder: Thank you. So orders came in up about 7% sequentially. I think it was the best order quarter number for fiscal ’23. And I understand there’s seasonality involved, but can you maybe just talk about, where orders have improved versus three to six months ago, versus maybe where you’ve seen continued softening in orders versus three to six months ago? And then specifically for the AI ML and the data center infrastructure, could you size how big that AI ML related businesses today, whether it’s on orders or revenue? Thank you.
Satish Dhanasekaran: Yes, maybe at the highest level, I would just say, we got a sequential improvement, I would say, in orders from our Aerospace, Defense business, which was strong. Obviously, the year-end is typically what we expect. We saw that for Commercial Communications, sequential growth, stability in Wireless/5G and a sequential uptick in our Wired part of the ecosystem. And what we anticipated also was, we would see some softness in the EISG business, particularly with Asia and China, and we did experience that. Now again, to put it in context, the EISG business is just later in undergoing this demand normalization. And so that was what we had sort of forecasted, and so it behaved as we expected. With regard to the Wireline Ecosystem, I just go back to our long-term growth rate expectations for the Communications business in general and say that we see a business that is diversified, where multiple technology waves are overlapping.
