Desmond Lynch: Sidney, thanks for your question again. What we’ve said is our visibility beyond sort of Q1, it’s limited on the sort product transition. Your customers are digesting the inventory in advance of the product transition from there. But I think, overall, we do expect to grow our sort of product revenue with growth in the sort of back half of the year is the way that I would describe it from there. I think overall, our execution and growth in the product side has been exceptional from there. I think we’re not going to really break out the DDR4, DDR5 mix. Again, our visibility is sort of limited as the customers work through some of these transitions from here. But I think overall, for the year, we do expect to grow our product revenue.
Sidney Ho: Okay. Maybe if I could sneak in one quick one. If I — looking at your operating expenses, excluding the cost of goods sold, it’s up a bit from the Q4 level in your guidance, how should we think about the rest of the year given the current macro environment?
Desmond Lynch: That’s a great question, Sidney. Thanks. We’ll continue to be disciplined and vigilant in our operating expense management given the macro challenges. For Q1, we did guide our total operating costs, which includes cost of goods sold to be relatively flat to Q4 at $85 million. If you really look specifically our operating expenses in 2022, our quarterly operating expenses were relatively stable, around the $55 million to $56 million per quarter, with R&D at $35 million to $36 million per quarter and SG&A is roughly $19 million to $20 million. In Q1, we will see some seasonal payroll increases, which will increase our sort of cost basis from there. But our expectation is that we will keep our operating expenses relatively flat from Q1 to Q2.
And really looking at the sort of back half of the year, we’ll continue to be prudent in our expense management and really strike the right balance to ensure that we continue to fund the right investments to ensure that we maintain our leadership positions in key programs. And I think you’ve seen us, the discipline throughout the year, so it was a nice operating expense leverage from there.
Operator: The next question is a follow-up from Gary Mobley of Wells Fargo.
Gary Mobley: You have shipped DDR5, again, chipsets. And so I’m curious to know the order of magnitude for the price increase for the RCD specifically in a DDR5 versus a DDR4, maybe in the initial days of DDR5 and maybe as well taking a view with more commercial volumes. And then with respect to the companion chips, the data buffer — I’m sorry, not the data buffer, but the SPD hub and the temperature sensors. How would you calibrate your share in those particular end markets vis-a-vis your RCD share knowing that you have a broader set of customers in those companion chips?
Luc Seraphin: Thanks, Gary, for your question. Regarding DDR5 pricing, typically, when there’s a change of generation, we do see a reset of pricing especially at the very beginning when the volumes are small. But when we go in production in earnest towards the second half of the year, we will see this price erode over time, starting from a much higher level. This is typical in that kind of generation would change. And that’s why we believe, as indicated by Des earlier that our margin should improve throughout the year. And we still see us meeting our margin targets of 60% to 65% for the whole year. So that’s how we do see the transition from DDR4 to DDR5. With respect to the companion chips, these companionships are in qualification now with customers.
