And then normalized demand is – it happens when we are shipping into our customers exactly what they are shipping out. And I think we are confident we can get back to the levels of revenue we have had in the past. And then with our model, the operating leverage is pretty immense. And we should see significant bounce back when we get up to that $400 million to $450 million, even $500 million in revenue. And I think that’s doable in the not-too-distant future.
Samik Chatterjee: Okay. Thank you. Thanks for taking my questions.
Kathy Ta: Thank you, Samik.
Operator: Your next question comes from the line of George Notter from Jefferies. Please go ahead.
George Notter: Hi guys. Thanks very much. I wanted to ask about the gross margin performance in the quarter, down, gosh, roughly 400 basis points sequentially on a pretty similar revenue number. I guess I am wondering if there is – certainly, the lower 3D sensing is an element of that, I suppose. But I am wondering if there is some excess and obsolete inventory charges there or anything else that drove that big sequential step down? Thanks.
Wajid Ali: Yes. So, you are right. So, the 3D sensing number did come down into Q4. Excess and obsolescence was pretty normal from a run rate standpoint. It was really under utilization. So, as we have been working through where we really want our inventory to be outside of some of the pre-builds that we are doing as part of our consolidation strategy, we had a pretty hefty impact within our fiscal Q4 with underutilization, that hit both our OpComm and our lasers business pretty significantly. And we are seeing that really flow through into the back half of the calendar year.
George Notter: Got it. So, is it fair to say that a good portion of the product that you shipped in the June quarter was then manufactured in prior quarters? Is that the way to read that?
Wajid Ali: Yes. That’s fair. Yes, that’s right.
George Notter: Okay. And then is there some strategy here to kind of, I don’t know, I guess produce a softer gross margin in the June quarter? Take that underutilization hit all at once then, and then you can kind of clean that effect up going into the September quarter, or is it – is there some other strategy in terms of how you run your utilization?
Wajid Ali: Yes. I mean really the only way to do it is to produce more, and so – or consolidate facilities. So, we are consolidating facilities, and we will start to see the benefit of that probably in the January timeframe because we will be out of the facilities in the November-December timeframe this year. So, we will start to see the impact of that in our fiscal Q3. So, that will be pretty sizable. And then it’s really production coming back up at all of our facilities to a more normalized level. So, that’s – those are really kind of the only two ways that you can improve that.
Alan Lowe: Yes. Just to add to that, though I would say that the June quarter Datacom was below on Datacom, and those chips that are produced in our fabs absorb a lot. And as that ramps back up, we should see a better absorption and utilization of the fabs that we have in Japan, making Datacom chips.
Wajid Ali: Yes. That’s fair.
George Notter: Got it. Okay. And is that – I was going to say…
Kathy Ta: Please go ahead.
George Notter: Is that inventory – thanks Wajid. Let me follow-on here. Is that inventory that you built up from a manufacturing perspective in the March quarter, is that inventory then consumed heading into the September period?
