Kevin Cassidy: Okay, thank you.
Operator: Thank you. Our next question comes from the line of Brian Chin with Stifel. Please go ahead.
Brian Chin : Hi there! Good afternoon. Can you guys hear me okay? I know that it’s kind of a little bit faint.
A – Mark Adams: Yeah Brian, we can hear you. Can you hear us?
Brian Chin : Yeah, yeah, I’ve got you, clear thanks. Yes, I’m curious, especially on the memory business, a pretty big sequential decline in the February end quarter, although also a pretty big memory, a pretty big decline in the memory market pricing also over that period. So I’m curious, in terms of the pass-through of lower memory prices, is that kind of a real time event, particularly on the specialty memory part of your business, plus if the ASP declines do start to lose momentum, I guess if that’s the right way to put it. that’s part of that reduced headwind you’re seeing?
A – Mark Adams: Yeah, so Brian let me answer it, the exposure we have. So typically on our balance sheet we carry in the neighborhood of four to five, four to six weeks of inventory for memory, and so that, there is some exposure. They are both good and bad, depending on where ASP’s move, but it’s fairly limited to that. But when you look at our business, especially around the specialty segment, our customers know for the most part what the pricing is for various memory components, and therefore that piece is more of a pass-through, and it’s really the value add that we provide on top of the memory for those specific applications, and that’s why customers work with us. And it’s also part of the reason that you saw the strong operating margin performance in Q2 from our overall memory segment.
So even though we’ve seen some headwinds in the overall revenues if you looked versus a year ago quarter or year-over-year on the quarterly results, the op income percent has still remained fairly healthy, which is a testament to the strength of that business and how we operate, the specialty memory segment.
Brian Chin : Yes, yes, of course. And that, I think that’s always helpful to point that out, how you guys had a memory downturn. It kind of affects you guys differently than maybe some of the suppliers. In terms of the €“ in terms of the IPS business, it looks like most of the sequential revenue decline is going to be from IPS and kind of consistently what you said about sort of the momentum being a little bit more physical first half versus second half loaded. I’m curious what kind of went better within the IPS mix in fiscal 2Q to drive gross margins to nearly 29%. And how do you see that sustaining or not in physical second half relative to your gross margin guide and revenue outlook?
Mark Adams: I’ll take the first part of that, Brian. As we’ve talked about in the past, we’re not kind of a revenue only play. We’re not looking to boost up revenues at lower margins, and part of that initiative is driven by our commitment to provide value ad managed services to our customers who we engage with. And as we commented on services, it continues to be a really strong part of this business, and when you complement our systems and solutions, software solutions bundled with services, we think the gross margin profile of the business continues to be relatively stable and strong. So that’s kind of what’s driving it for us. So it’s just really been a discipline not to focus on revenue, but really focus on value add solutions that we bring to our customer base.
