Ganesh Moorthy: Our confidence is pretty high. We have looked at a number of scenarios. We’ve looked at how other cycles have gone, and I think we’ll be well above 40% in the way that we have modeled it in the different scenarios that we have brought. Eric, do you want to add more to it?
A – Eric Bjornholt: Yes, I think you’ve summed it up well Ganesh. We’ve done scenario planning and do not see a scenario where our operating margins on a non-GAAP basis could fall below 40%. So we’re very comfortable in making that statement. Maybe the other piece that I would add to Ganesh’s first response is, I think it’s a little bit tricky for investors to understand what is normal seasonality for microchip, because the supply constraints have been under for the last couple of years now, they did play a part in that, and then we’ve done a lot of acquisitions historically, right? But we would say that probably a normal December seasonal might be down 3% or 4%. So hopefully that provides some context, and we’re saying that based on the conditions that we’re seeing, it you know likely could be – what’s the word, Ganesh? [Cross Talk] yes, amplified.
Joe Moore : Great. Thanks so much for your candor. Much appreciated.
Operator: Our next question is going to come from Joshua Buchalter with TD Cowen. Your line is open.
Joshua Buchalter: Hey guys. Thank you for taking my question. In the past you’ve sort of given us rough levels of where you expected inventory to come in in the quarter. I guess given we’re going through this digestion period, can you give us any level that you would feel comfortable with? What sort of targets are you thinking about for on-books and in the channel when you would feel more comfortable that you’re shipping closer to end demand? Thank you.
Ganesh Moorthy: You know, I think the channel inventory is driven by in part what the channel wants to carry, what we can supply, and what their demand intensity is. So we don’t try to guide where’s the channel inventory going to go. It goes where it goes based on those factors. We do take a lot of effort on the internal inventory inside microchip and we have an added factor at this point, which is we are customers who have inventory positions and are looking for push-out help. And that has caused us to go slower than we would normally have liked, but it’s the right long-term answer for us and for our customers. And we do expect as Eric said, to have both, a reduction in absolute and days of inventory on our balance sheet in the September quarter.
Joshua Buchalter: I appreciate the color there. As my follow-up, I mean given that dynamic, your gross margin suggests that there’s no real material cut, at least on your internal utilization rates. Can you talk about how you’re thinking about running your factory through this period of digestion, and then I guess the same question for your foundry partners as well. Thank you.
A – Ganesh Moorthy: Sure. So, our internal fabs are continuing to run relatively unchanged. These products are very long-lived products. In many cases had been depleted in the inventory points that we typically need to be able to serve at a high level of certainty, as well as the lead time we want. So our internal factories and the internal fabs in particular are continuing to run. And our foundry partners, depending on where the inventory levels were, in some cases, we will be adjusting and have adjusted the purchasing to bring that inventory into line with where we want to be long-term.
Joshua Buchalter: Thank you.
A – Ganesh Moorthy: You’re welcome.
Operator: Our next question is going to come from Chris Caso with Wolf Research. Your line is open.
Chris Caso: Yes. Good evening, thank you. First question is about, I guess something we haven’t spoken about in a while, a potential for the requirement for turns. And can you speak about that, given the reduction in lead times, the fact that customers are booking closer in? Are we in a situation… [Audio Gap]
A – Ganesh Moorthy: Chris, we may have lost you. Can you hear us?
Operator: It looks like this is line hijacked. So, until he calls back, we’ll just move on to the next person in queue. And that’s going to be Harlan Sur with JP Morgan. Your line is open.
