James Anderson: Yes. That’s based on — like, that’s based on the customer forecasts that we have the backlog that our customers have placed for instance, for the second half of the year, and what customers have shared with us in terms of their own plans to draw down inventory levels and our own internal analysis. So based on that, as I said, we think that the inventory rebalancing and digestion is certainly an effect in the first half, but dissipates through the rest of this year. And that’s one factor that leads us at this point to believe that the second half is stronger. But the other factor is all of those product ramps that we talked about earlier in the call. Now look, business conditions can change. Macroeconomic conditions can change.
That’s what we’re seeing at this point. That’s what we expect at this point. And so we want to provide color, at least qualitative color on how we see the year unfolding. But that’s obviously subject to change if macroeconomic conditions or end market business conditions change.
Operator: Our next question comes from the line of David Williams with Benchmark.
David Williams: First, I wanted to see if maybe there was anything geographically that you noticed this quarter in terms of Avant weakness or softness among the different categories or segments? And maybe just kind of how you’re feeling about that heading into the first quarter?
James Anderson: Thanks, David. So from a geo-perspective, just kind of how some of the softness, the more recent softness that we’ve seen has evolved is especially in the industrial auto segment, which is the segment that slowed down most recently for us. The initial weakness that we saw towards the end of Q3 of last year, that was really primarily in Asia and in particular, in China. In Q4 of last year, we saw that extend not just into Asia, but extended into Europe as well. So we saw weakness in European industrials in Q4 as well as European communications customers. Now North America through the — really the Americas through the end of last year held up, and we actually saw a sequential increase in Americas revenue from Q3 to Q4.
But going into the current quarter, Q1, we would expect Asia, Europe to be down again sequentially. And we now expect Americas to be to be down as well as we’re starting to see softer demand from some of our North America-based industrial and automotive customers as well.
David Williams: And then maybe just on the automotive side. If we think about where your Avant platform can play. How do you think about that total addressable market in automotive specifically over the next few years? And maybe talk about any of the design interaction or early stage design activity you’re seeing around auto for Avant.
James Anderson: Thanks, David. So first of all, we believe that auto electronics represents a great growth area for the company over the long term. We believe we’re underexposed to that area. That’s one of the fastest areas of growth that we’ve seen over the past years for Lattice solutions, even ahead of Avant. And we believe Avant is really well positioned in automotive electronics. We believe we’ll see adoption of Avant in ADAS, infotainment systems, around a wide variety of applications. We’ll be able to talk more about that as we move through the Avant ramp, but we certainly see many applications in the automotive electronics space. And I think we highlighted some of those potential usages at the most recent Developers Conference in December. So I would say stay tuned, expect to hear more about Avant in the automotive segment.
Operator: [Operator Instructions]. Our next question will come from the line of Srini Pajjuri with Raymond James. Please proceed with your question.
Srini Pajjuri: A couple of questions. First one on your disti inventory. I think you said it’s back to pre-pandemic levels. Obviously, the SAM, I’m guessing, is bigger than pre-pandemic time periods. And then on top of that, you have many new products that are ramping. So I’m just curious as to when you think you’ll start to kind of increase the disti inventory as we go through the next few quarters?
James Anderson: Yes. Thanks for the question. And just to clarify, when I say back to pre-pandemic levels, I mean, on a relative basis, for instance, a weeks of inventory perspective. So that accounts for the growth in the business that we’ve seen since pre-pandemic. So yes, on a relative basis, it’s back to the same levels as we were pre-pandemic. And our goal moving forward then is to keep inventory levels at our distis stable, right? Ultimately, what we’re trying to do is if we’ve got a healthy level and a normal level of inventory at our distributors, what we’re trying to do is match the sales into our distributors with the sales that our distributors are selling out to our end customers. That’s our goal on a quarter-to-quarter basis.
