C.J. Muse: I guess, what I’m trying to get at is how much of your, I guess, relative optimistic view for 2023 is based on kind of current backlog versus not?
Steve Daly: So I would say that it’s not necessarily based on backlog. It’s based on looking at the markets because we still need to book a significant amount of business to achieve the goals that we need to. So we’re making assumptions based on a bottoms-up sales forecast where we identify customers and programs and part numbers and in speaking with customers, getting an understanding of their future demands. And so when we talk about the fiscal year, we €“ that’s the data we’re looking at, not specifically in only our backlog. And so as you go out in time, as you can imagine, there’s more risk, and that’s one of the reasons why we generally don’t give full year guidance. Clearly, in this environment, I think it would be even more difficult to give full year guidance.
C.J. Muse: Thanks so much.
Steve Daly: Thank you.
Operator: And our next question coming from the line of Richard Shannon with Craig-Hallum. Your line is open.
Richard Shannon: Well, thanks guys for taking my question. Maybe one digging into the telecom side of the business, Steve, I’m checking my notes, and hopefully, I got them correctly here, calling out the areas of weakness here with 5G and broadband. I just want to confirm that you’re not seeing in other areas within telecom specifically coherent. And then within those two weaker segments, 5G and broadband, are you seeing different dynamics here either by differences in customer activity levels of inventory or expectations of when those businesses return to more normal patterns.
Steve Daly: Right. So I would say that if I heard you correctly, are we seeing weakness in coherent? Was that your question?
Richard Shannon: Yes, I’m wondering if that was
Steve Daly: Yes. I would say that we are definitely seeing a bit of weakness primarily due to inventory adjustments. And then when we look at the weakness in 5G and broadband, there are very different dynamics there, very different markets, particularly in broadband, we have large CATV customers that we believe have a significant amount of inventory, and that’s really the back story with broadband. And then on 5G, we think there’s inventory burn down from our major customers primarily on the RF side, so front end €“ things like front end modules or amplifiers.
Richard Shannon: Okay. Perfect. That’s great. And then following up on the topic of OpEx, I may have missed the kind of team here, but you talked about some reductions here going into the March quarter here. They sound mostly structural in nature. So just want to make sure that’s the case here. And then is there a pattern we should see from an absolute dollar basis going through the rest of the year.
Jack Kober: Yes. And Richard, this is Jack. I would say a majority of the items are not structural. There is some of that in there in our guide going into Q1, but it’s more on the discretionary side as you look to what we’re doing from an OpEx standpoint. So having said that, as you look a little bit further out, there will be some rebounding as some of those discretionary items are pushed out into future periods. But amongst all the things that we do here, we want to make sure we’re maintaining an appropriate level of profitability. So we will be judicious with all of our spending as we go forward.
Operator: Thank you. And I’m showing no further questions at this time. I would now like to turn the call back over to Mr. Steve Daly for any closing remarks.
Steve Daly: Thank you. In closing, I would like to thank our employees for their contributions this past quarter. We look forward to closing the acquisition and welcoming the OMMIC team to MACOM. Have a nice day.
Operator: Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect.
