Kris Sennesael: So no, it’s not really tied to one of the businesses. But we have been bringing down the utilization of our factories in part because the revenue is down year-over-year, but also because we have been focusing on driving down the inventory, right? We are taking our medicine now. We’re not just building inventory to protect the gross margin. Now it takes a little bit of time for those underutilization charges to hit the P&L. It goes through an inventory cycle, right? That’s why you continue to see slightly down gross margins on a sequential basis into the March quarter. But again, we have confidence that March is the bottom in terms of gross margin, and you will start seeing gradual improvements after the March quarter.
Thomas O’Malley: Helpful. And then just on the moving pieces for the back half of the fiscal year. It sounds like Android is getting better typical seasonality on the — on your largest customer side in mobile. But I just want to get a feel for what you guys kind of are looking at in terms of the reacceleration of broad markets. If you look at March for your guidance, up slightly. You’re still down 20% year-over-year. Do you think that kind of exiting your fiscal year, are you looking to kind of be growing year-over-year? Or just can you give us any kind of color on the pace of recovery there just because I know things are improving, but just how quickly is something that I think is a little more difficult to wrap our heads around.
Liam Griffin : Yes, sure. There’s a lot there, but I think I get your point. So we definitely believe there’s going to be more acceleration in revenue in the broad markets. We have a roster of incredible companies that we’re serving right now for Cisco to Ford, Daimler, Nest, we talked about before Google Company. It’s a very diverse set of products and customers in the broad markets portfolio, and that’s what we like. Each one has their own vector. And we’re continuing to nurture that and grow into that. And it also have a great opportunity on the sales side because we do have quite a bit of revenue in mobile. But the number of accounts that we haven’t served yet is still very, very high, and that’s a great opportunity for us to go after.
Operator: And our last question in queue coming from the line of Quinn Bolton with Needham.
Quinn Bolton: It’s been a couple of questions on the call that seem to be alluding to perhaps you guys may be losing content at your largest customer in the second half of the year. And I haven’t heard you guys specifically address that. Can you give us any thoughts as you look into the second half, how you’re feeling content-wise at that largest customer? And then I’ve got a follow-on for Kris on the gross margins.
Liam Griffin: Yes. I think we have a great position with our largest customer. Nothing really is concerning on that point. I mean we know exactly who we are and who they are, and we have great partnerships and will continue to drive success.
Quinn Bolton: Okay. And then for Kris, you’ve kind of talked about the gross margin drivers. Potentially pretty quick recovery post the March bottom. I’m just kind of curious. Is there — can you give us any sense how quickly can you get back to 50%? Is that something you think you can do in the calendar year ‘24? And does it require you to get to a certain revenue level to get rid of some of those underutilization charges or are things like product mix, a much bigger factor as well as the cost reductions you’ve taken to getting back to that 50%, so it tends to be maybe a little bit less driven by a certain revenue level? Just what’s the best way to think about getting back to 50%?
Kris Sennesael: Yes. I mean, we guide only one quarter at a time, and there’s a reason for it, right? There’s a lot of puts and takes that go into the equation. But again, we have confidence that March, 45%, 46% guide is the bottom. We will start seeing gradual improvement from there. We obviously want to get as fast as we can back to the 50%, right? And then once we get back to the 50%, we’re not going to stop there. Our long-term target model calls for 53% gross margin, and we believe we can do that. There is no structural impairments in the business that will prevent us that. But obviously, yes, we need revenue growth and we need to get better factory utilization that in combination with all the cost efficiencies internally and externally that we have been working on and will continue to work on, right.
Keep the conviction that we will get back to the 50% in a reasonable amount of time. And then we’re going to keep driving it towards our target normal of 53%, but we’ll provide an update on a quarter-by-quarter basis.
Operator: Ladies and gentlemen, that concludes today’s question-and-answer session. I’ll now turn the call back over to Mr. Griffin for any closing comments.
Liam Griffin: Thank you all for joining. Look forward to seeing you at upcoming conferences. Thanks.
Operator: Ladies and gentlemen, this concludes today’s conference call. We thank you for your participation. You may now disconnect.
