Ken Gianella: So I think the prior flat, I’ll start with more supply chain driven than anything. I think the other step down, if you will, going back to what this current quarter looked at, the supply chain loosening back up allowed us to fulfill a little bit more of that hyperscale demand, which had a little bit of elevation in the quarter. I go back to what Jamie said, though, a 7% year-on-year number. And if you look, it’s the strongest Q4 that we’ve had in several years, even before the supply chain impacting it, that we think it’s a strong indication heading into 2024.
Eric Martinuzzi : So really, the supply — the outperformance in Q3, you’re saying that supply chain loosening helps or created kind of a bigger starting point. Okay.
Ken Gianella: Yes. It does.
Eric Martinuzzi : Yes. And then — just again, the sequential guide on the adjusted EBITDA also seems — I know we’re talking about the product mix, taking roughly 2.5% out of that $102 million midpoint guide another $1 million for the OpEx higher, but that still seems — the $0.5 million of adjusted EBITDA seems like a pretty dramatic step down. Is that conservatism that you’re kind of baking in there just from the $6.3 million and the $0.5 million seems dramatic?
Ken Gianella: I think mix has a lot to do with it. So if you start with your top line and looking at what you’re shipping out there, the mix with the hyperscale plus this one customer, that’s a lot of fall-through to EBITDA that was an impact. We were purposely mindful to also point out the OpEx increase with the commissions and the other end of year elements. We are seeing some inflationary pieces where the OpEx run rate will probably be more around that 35%, 36% range going forward with some of that inflationary and merit pressures going forward. So you take the $1 million from the OpEx piece that we called out, give or take, and then you call out the points of margin, that’s about two to three plus of EBITDA that fell off.
Eric Martinuzzi : Okay. And then royalty continues to dwindle here. I think on a year-on-year basis, I’m looking at — if I just replicate what you did in Q3 into Q4 would be off about 20%. I know you’re not guiding at the product line, but just at a high level, is this the new normal? Should we anticipate continued erosion on the royalty?
Jamie Lerner: Yes. I think it’s probably safe to say, I think we were at $2.8 million. I think $2.8 million is the new normal. And none of us have a crystal ball, but I’d say unless something changes, I think running around $2.8 million is about right for your model.
Eric Martinuzzi : Got it. Thanks for taking my questions.
Jamie Lerner: Yes.
Operator: There are no further questions at this time. I would now like to hand the call back over to Jamie Lerner for any closing comments.
Jamie Lerner: Thanks, everyone, for joining us today. We’re pleased with the results and have a lot of work in front of us, but it’s great to have Ken on Board and have some fresh legs here, and we’re excited about Q4 and entering the New Year. So thanks, everyone. Thanks for joining.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
