Bruce McClelland: Yes. So the $840 million to $870 million at the midpoint is I think a little over 4% growth over what we reported in 2022. The assumptions around that are that the Cloud and Edge business is fairly consistent to what we did in 2022. And there’s obviously a lot of things going on there with enterprise growing the federal portion of the business, that we’re really focused on gaining share, growing and maybe other parts growing less. But overall, we feel like we have visibility to maintaining the level of business that we just did in 2022 and with some of the operational savings, improving the earnings from that part of the business. The top line growth clearly, we expect to come from the IP Optical Networks portion of the business.
Again, we just — we’ve now had two quarters of pretty solid growth, Q3 and Q4. Obviously, we’ve got some seasonality. So, naturally Q1 is not at the same level as Q3 and Q4, but up — but we think up from the previous year. And that will be the large part of the top line revenue growth to drive overall for the company of 4% plus growth, but that part of the business growing at a much faster rate.
Dave Kang: Got it. And my last question is on your gross margin outlook. So you’re starting at 46% to 48%. First of all, so it’s going to be down what six points, seven points sequentially from fourth quarter to first quarter. Just wondering, if you can explain what’s driving that decline? And then for you to hit 53% to 54% for the year, I’m assuming you have to exit the year like, I don’t know 56% to maybe 58%. So, can you — what’s going to drive that margin expansion from 47% to 50% something from first to fourth quarter this year?
Bruce McClelland: Yes. No, it’s a good question, Dave. The first quarter gross margin is not indicative of what we think the year looks like in addition to just a lower revenue level kind of dragging down the gross margin fixed cost absorption. The IP Optical portion of the business we think is down a little bit on margin in the quarter. Some of these new wins, I mentioned typically would have a lower margin at the early stages of the project as we deploy some of the infrastructure. And it’s kind of the gift that keeps on giving then as you add capacity and transponders into the network, the margins are better. So, that’s kind of the phenomenon going on in the first quarter with IP Optical. And kind of similarly with Cloud and Edge, we think the margins are a little lower than they were a year ago.
We do expect to ship more of the enterprise edge equipment, I mentioned in the first quarter, which has more hardware content. So that combination drives a lower expectation on margin in the first quarter. Again, we don’t think obviously with the full year guidance, but that’s an indication of what the full year looks like at all. But we just had fairly good margin results in Q3 and Q4 ’22 and that’s more indicative of what we think the rest of the year here looks like.
Dave Kang: Got it. Thank you.
Bruce McClelland: Thank you, Dave.
Operator: Thank you. Our next question is from Erik Suppiger with JMP Securities. Please proceed with your question.
Erik Suppiger: Yes. Thanks for taking the questions and good quarter. First off, India has come up a couple of times as an active area on 5G. Curious what does the opportunity there outside of Bharti look like? And then secondly, could you — I’m not sure if you commented, but can you comment a little bit in terms of the timing on the new contract win that you had with Bharti what — how that will ramp up over the course of 2023?
