And that gives us inherent stability and resilience, and we’re pleased by some of the progression we’re seeing in the AI ML spend, because we’ve been working with customers on this for some time now. And we expect that as more of the network traffic is driven by applications that are coming out for AI ML, this will become a bigger part of our business. I’ll just maybe hand it off to Mark to make some comments on orders.
Mark Wallace: Yes. Thanks, Satish. Chris, I’ll just add a few color comments to what Satish did here. And then it really begins with all of our customers, still remaining very active in their R&D projects. And we see that in our funnel in terms of new funnel intake, which has been very positive. And our ability to convert that remains high, although as we’ve said for the last several quarters, some of this long-dated backlog and then customers taking a bit more time to make these decisions as have been a factor as well. I’m also seeing stabilization in the indirect businesses, some of the inventories in our distributors normalize, and I’m very pleased with our e-commerce business, which continues to be strongly adopted. We saw about a doubling of business through that — through that channel.
And in total, we continue to add new customers, more than 2,000 during the course of the last year, and about 300 of those came through e-commerce. So there’s some positive elements of what we’ve seen in the fourth quarter.
Christopher Snyder: I appreciate that. And then for my follow-up, I guess maybe more of a modeling question. For the revenue, Q1 revenue guide, the $1.245 billion at the midpoint, does that include $60 million from ESI implying about $1.285 billion at the midpoint for organic Keysight. It seems to be a pretty sharp fall off versus the 1327 orders we just got. Thank you.
Neil Dougherty: Yes. $1.185 billion, not $1.285 billion, but your math is correct. $1.245 billion, less $60 million gets you to $1.185 billion for Core Keysight. And what we’ve typically seen is on the order side is a high single-digit sequential decline as we move from Q4 into Q1. And I think given the normalization, that we’re currently seeing, particularly in EISG, we expect a sequential decline this year to be a little bit larger than historical average. And so that’s — and again, with orders and revenue converging, that’s how you can think about getting to that $1.185 billion for Core Keysight.
Christopher Snyder: Thank you.
Neil Dougherty: Thank you.
Operator: Our next question comes from Mark Delaney with Goldman Sachs. Please proceed.
Mark Delaney: Good afternoon. Thanks for taking my question. A question on Commercial Comms. And do you think the company can get back to the historical highs in the Commercial Comms segment, in terms of revenue from a resumption in 5G alone? Or do you think you would need some contribution from things like 800 gig and 6G in order to get there?
Satish Dhanasekaran: Yes. Thank you, Mark. Absolutely, we are confident in the long-term outlook for the business, I outlined at Investor Day several overlapping themes of technology waves that are playing out across end markets. And our view remains solid with that. In fact, as we engage with customers even through this time, where the spend has been lower, customers are intensely focused on higher priority R&D programs. And so that strategic view has not changed for us. Obviously, there is this current demand normalization that’s occurring after fiscal ’21 and ’22, where we had outsized order growth in the business. And so post normalization, we remain confident in our ability to continue to grow the business, because of these multiple ways of technology across both wired and wireless ecosystem.
Mark Delaney: That’s helpful. And other question on the competitive landscape with one of your competitors having recently been acquired. Have you seen any change in any opportunities in terms of new business wins or any changes on the competitive front that you would point out? Thanks.
Mark Wallace: Yes. No, we remain active in all of the markets that we serve. The automotive market, in particular, continues to be quite robust with many customers investing in long-term EV projects, which we continue to engage with. So no, we’ve not seen any change since any recent announcements.
Mark Delaney: Thank you.
Operator: Our next question comes from Adam Thalhimer with Thompson Davis. Please proceed.
Adam Thalhimer: Hey, good afternoon, guys. Congrats on the strong Q4. Can you give a little more color into what is going on in China and whether you’re seeing any green shoots there?
Satish Dhanasekaran: Yes. Thank you. I’ll have Mark make some comments, but thank you. We’re pleased with the execution and the operational performance of the business in fiscal ’23. Our engagements in China with customers remain strong, but I’ll have Mark make some comments by end market.
Mark Wallace: Yes. Our business in China remains very diverse. We did see softer demand in Q4 and in the second half. And actually, our business in China held up relatively strong in the first half, especially from the EISG standpoint. But there is incremental weakness in manufacturing and in semiconductor, and we expect that to continue for the next couple of quarters. Where I see the activity is around the areas that, we have remained focused on high-speed digital, optical, auto and EV and AE and opportunities for mature semiconductor technologies continue there as well. I also think we’ve de-risked quite a bit of the trade impact that we’ve been experiencing for the last several years. We’ll watch that carefully. It’s been fairly status quo, I would say, for the last couple of quarters. And if we do see some moderation to the demand normalization on the manufacturing side, I think we’ll be very well positioned when that happens.
Adam Thalhimer: Okay. Thank you, Mark.
Mark Wallace: Yes.
Operator: Our next question comes from Atif Malik with Citi. Please proceed.
