Alex Henderson: Yes. So again, the question is, is there a shift between September and December? Historically, September has actually been a little stronger than the December quarter. Is this a late start to some extent, and therefore, a little bit more in the December quarter? Or should we be using that as the new level of a seasonally strong period?
Chris Coldren: I would say it’s a little early to guide that product line for that timeframe, but I would think you should think about it being flattish between the two quarters.
Alex Henderson: Great. And then second question I had for you is, looking at the broader context of the trajectory of demand, I think we started back in the September timeframe saying that we were going into an inventory correction at least in Datacom. Telecom obviously started later than that. But you had initially thought that by the end of the June quarter and into the end of the summer, Datacom would start to recover. Then you pushed it out to the end of the fourth quarter calendar. At this point, it sounds like that’s holding, but it may be a little bit steeper initial decline. Can you talk a little bit about what’s going on relative to the trajectory from the expectations that you gave last quarter to the expectations you gave this quarter on that business and within Telecom as well?
Has it steepened as a result of excess cutbacks in shipments at the service providers? What’s the linearity of the demand structure there? Did it fall off towards the end of the quarter?
Alan Lowe: Well, let me take them one at a time. I would say on the Datacom market, as you have said, in September, we talked about it, getting better in the summer, and we are seeing that in a lot. And I would say that, in fact we are seeing it so much that we probably ratcheted back our capacity more than we should have on Datacom. That’s now in full force to accelerate the output of our Datacom chips. And so I think that’s why we have talked about Q1 being up from last quarter, and then we expect to see sequential growth in our Datacom chip business through the balance of this year as well as into calendar ‘24, so Datacom, I think is on the right trajectory. On Telecom, I would say that our customers are telling us that they want to bring down the inventory to normal levels.
And I think the confidence that they have in our ability to produce what they need when they need it, and that the component suppliers, including semiconductors are going to be there when they need it gives them confidence that they can live with even less inventory than originally anticipated. So, I would say nothing really changed there other than inventory levels need to come down further. And that, therefore, we are shipping into our customers less than they are shipping out to the carriers, which in turn should take care of that problem and more normalize as we get into calendar ‘24.
Alex Henderson: Good. Thank you.
Alan Lowe: Thanks Alex.
Operator: Your next question comes from the line of Samik Chatterjee from JPMorgan. Please go ahead.
Samik Chatterjee: Hi. Thank you for taking my questions. I guess from – first one, if I can just ask you to delve a bit more into the AI-related demand that you are seeing? How much of that are you seeing in terms of interest on the VCSEL side versus EML? And when you think about also the customer set there, how much of the engagement is hyperscalers versus other newer sort of companies coming into the ecosystem? Any thoughts in terms of what you expect that demand to look like in a couple of years would be useful, and I have a follow-up. Thank you.
