Steve Daly: Well, we’re not changing the target of $1 billion. We’re still confident we can hit that. And as we’ve talked about in the past, that is an aspirational goal. I think what’s changed here in the last number of months is really the time line associated with that given the current claimant. I think it’s reasonable to assume that we’ll be shifting the timing of that $1 billion of revenue out in time. And so we haven’t fully reviewed that. I’ll highlight that. Our targets come through a very detailed bottom-up analysis, which typically is aligned with our strategic planning process. And so I would suspect in the July and August time frame when we complete that cycle, we’ll be evaluating where we think we’ll be in fiscal 2025 and fiscal 2026. But it’s fair to €“ I think, to your point, it’s fair to assume that the environments are providing a headwind, which one would conclude would push that out in time.
Operator: Thank you. And our next question coming from the line of Harsh Kumar with Piper Sandler. Your line is open.
Harsh Kumar: Yes. Hey, thanks, guys. Appreciate you guys are clamping on OpEx to maintain profitability as investors we do appreciate that very much. Jack and Steve, I wanted to ask about gross margins. They were steadily going up for a while and now for the last couple of quarters, you’ve been kind of stuck in the 62%, 62.5% kind of range. But I know you have plans and aspirations to be higher than that. So I was curious, just mid-term to long-term, what would be some of the things that might make that margin go up to maybe the mid-60%s if potentially that’s your goal? And then I have a follow-up.
Steve Daly: Sure. So I’ll take the first part of that question and maybe Jack can add on. So we are €“ I think the gross margins that we’re delivering today really represent the business and the portfolio that exists today. And the way we’re going to drive our margins from the low-60s to the high-60s is through new product development and products that can come in to higher price. Examples would be the entire OMMIC portfolio where these are the highest frequency products in the market, leading cutting-edge performance. That portfolio would be an example of a business that we would expect to come into our portfolio that would drive margins often be accretive. Second, our 140-nanometer GaN process that we just announced, as we talked about, that’s a $300 million SAM that we’ll be addressing.
And we believe that our latest products coming from that process will drive margins up. So our theme here at MACOM is the highest frequency, highest power and highest data rate. And if we stay on that edge, within the markets and the technologies that we develop, we will be successful driving the margins up. And so that is thematically how we will do it. I’m not sure we’re going to be driving margins up by operational and executional issues. Maybe there’s additional potential there. But moving to the next phase is about the technology and the strength of your differentiated products.
Harsh Kumar: Very helpful €“ sorry.
