Adam Jonas: Hi, everybody. You had a competitor on earlier this morning who guided to a negative 1% global production, and while acknowledging the chip supply broadly is getting materially better year-on-year, they did highlight that there are certain systems and chips, specific situations that do remain problematic and are leading to supply disruption. I was curious if that was consistent with your view, and could you specifically tell us what your OEM customers are struggling with right now? What type of chip or module or system is problematic to prevent significant growth on that weak term. Thanks.
Ray Scott: So it is better. There’s no question about it. We’re going to look back from where we were last year to this year. There’s no question that our customers are much more sophisticated. I think what we’re seeing now is the over ordering of all kinds of chips across the board, putting tremendous pressure on supply has been reduced. There are still issues relative to very specific chips and usage by particular products and I’m knocking in the specifics of what chips. I do know that we’re in a much better situation, but there are situations where we’re finding a shortfall of supply relative to chips. I think the communication between the customer and the Tier 1 and the chip manufacturer is significantly improved even though the industry as a whole has improved, there are pockets where we’re finding shortage of particular chips.
Now I do know that capacity — more capacity is coming online this year. I think our customers are more optimistic about how things are going to move from the first quarter to the second quarter and the second half of this year should improve significantly. But we are at this stage right now in the first quarter, seeing shutdowns due to shortages of chips, and they’re very selective chips. And I don’t have the specifics of what those chips are, but we are still seeing shortages and it’s more sporadic than we saw last year.
Adam Jonas: That’s helpful. That’s helpful. So I was going to ask, when did you think that would alleviate your suggesting second half? I don’t know if you wanted to develop that a little more based on the schedules and discussions of what you’re seeing between your Tier 2s and what you’re hearing from the Tier 1s? Is that kind of the expectation, I mean for the latter part of the year?
Ray Scott: There’s capacity that comes online, I think that there’s alternative designs that are coming online. There’s, like I said, a much more sophisticated process now of what’s required. The over ordering in the system that kind of shut down all chips, I think, has improved significantly. So from the way I’m looking at from what I’m getting feedback from OEMs and also suppliers, our chip manufacturers, is that the second half should be better.
Operator: And our final question today comes from Colin Langan from Wells Fargo. Please go ahead with your question.
Unidentified Analyst: Hi guys. This is filling in for Colin. Just on the price concessions. You guys have done a really great job at gaining market share. Don’t you guys think that this kind of gives you guys more leverage when you go into negotiations with your OEM customers?
Ray Scott: Yes. You know what — there’s a — like Jason talked about, there’s a basket of ways that we can negotiate all kinds of things. And I will say this that we’ve been at this for 2.5 years with some of the commodity inflationary costs, labor shortfalls, those things, supply things. The customers are lot more willing to look at alternatives and ways to negotiate solutions across the board. We have not been in a position we have to buy business, and we’re going after business just for the sake of buying business or productivity or paying for it. And I think the team has done a remarkable job of having balance between what our productivity deals are and offsetting some of the commodity increases, transportation increases, shutdowns, those types of things.
