Operator: Thank you. And our next question coming from the line of Tore Svanberg with Stifel. Your line is open.
Tore Svanberg: Yes. Thank you and good morning. Steve, I was hoping you could talk a little bit more about OMMIC and where the revenues are today. So I mean it sounds like maybe it’s a $10 million business. Should I assume that that’s primarily in satellite today? And as you obviously grow this business, will satellite still be sort of the main segment? Or are there other areas where you intend to introduce the technology as well?
Steve Daly: Right. So I just want to be a little careful about talking too specifically about their business, given we haven’t closed the deal yet. So what I €“ there’s a tremendous amount of information on their website. I would encourage everybody to visit ommic.com. They actually list some of their legacy customers. And what you’ll see based on that public information is really a blend of satellite manufacturers, some North American and European defense OEMs. So because they’ve been operating on a 3-inch line, they have typically been targeting satellites, satellite manufacturers as well as defense applications. And so as we think about the business in the future, we want to bring them into the high-volume commercial worlds, including many different markets that MACOM today is already in, but not at the higher frequencies.
Remember, their products can operate up to W band. So it’s just €“ provides the company a great opportunity to grow. But you’re thinking about it the right way. Generally speaking, they’re in satellite and defense applications today.
Tore Svanberg: That’s very helpful. And perhaps a question on sort of business dynamics. So you mentioned you turned about 30% this quarter. I know there’s been nothing normal the last few years in the semiconductor industry. But is sort of 15% to 20% terms where you expect the business to run it going forward? And maybe you can even comment on how much turns you need to get to the midpoint of your guidance for the March quarter?
Steve Daly: So we have seen an increase in the turns business. Last quarter, I believe it was 10% €“ or the quarter before Q1. And then in Q1, it was 13%. So we do see a trend of increasing turns business. We think this is coming from the fact that lead times are coming down, cycle times are coming down. Many customers are now waiting and buying, knowing that suppliers like MACOM have inventory. So we’re on the other side of that curve where people are not placing long lead orders, they’re actually returning to, let’s say, a more normal dynamic in performance. We can’t really comment on what percent were booked to meet our current targets. I would say that we’re following the same methodology that we have in the past in terms of looking at our backlog, making assumptions on what we think will book and ship within the quarter.
So €“ but we are seeing that trend of book-to-bill increase, and we think that’s a good thing. And I’ll just highlight that one €“ I think an important point here, which is we had a tremendous booking performance last fiscal year. We had a 1.1:1 book-to-bill for our fiscal 2022. And everybody knows in Q4, we had a book-to-bill of 1 and then last quarter, 0.9. So we are in a very strong position regarding our backlog. We don’t have consumer exposure. Our top 10 is about 30% of our total revenue and no big 10% customers, and no one product is more than 2% of our revenue. So we truly have a very diversified business. And so I think that’s important to note.
