Quinn Bolton: Excellent. And then just one last quick one on the memory outlook. You called for growth to be high-single-digits. We’ve heard from a lot of folks in the memory industry that pricing for both DRAM and NAND is moving up pretty quickly here, especially after the earthquake in Taiwan. Wondering as you look at that high-single-digit, is that mostly ASP growth? With units still pretty muted, are you starting to see a unit recovery, but pricing benefits may come in future quarters? Just how you’re thinking about units versus ASP? And I’ll go back in the queue. Thank you.
Mark Adams: Yeah. Let me just — before I get to the specific, I just want to highlight, if you go back and look at memory cycles, unlike the pure play semiconductor companies, we made money through the cycles, okay? And we do that because we have a differentiated business. And we also see that if you go back and plot this out, we’re kind of slower on the front end of feeling the pain of the downturn. And on the back end, our recovery is a little bit slower because of these inventory corrections of select inventory that customers may be sitting on or are holding back from in terms of how they look at acquiring memory. So we are starting to see pricing benefits in our business overall, and we’re seeing corner cases of demand requests.
I would say that our demand has been somewhat flat of late, but that’s better than declining over the last couple of quarters. And if you look back at the last earnings call, I suspected, I projected that my view of the world was that we could probably start to see some more demand in our Q3, Q4 timeframe, because I just thought it was going to be a little slower. And we’re starting to see that turnaround. It’s just, it’s not here in the Q2 numbers. And I think in Q3, we’re starting to see a little bit more of a demand, and I think we’ll continue to see that through Q4 and early fiscal year ’25.
Ken Rizvi: Yeah. And Quinn, just to highlight Mark’s point there in terms of the margins, and you can look at our operating margins for this business, even in Q2, which was a softer quarter here, off margins were just above 7%, and we’re starting to see some expectations for growth. That’s what we guided to here for Q3 sequentially, for the memory business as well.
Quinn Bolton: Perfect. Thank you.
Operator: Thank you. The next question comes from the line of Kevin Cassidy with Rosenblatt Securities. Kevin, your line is now open.
Kevin Cassidy: Yes. Thank you for taking my question and congratulations on the quarter. Can you talk a little more about, with IPS, you said it would be flat to up depending on at least one order. And does this include services? And is this part of what the guidance for gross margin being 1.5% one way or the other? Can you just give a little more details on that?
Mark Adams: Yeah. So thanks, Kevin. Thanks for the question. I’m going to start and let Ken jump in. As we said originally, if you go back to our Q1 earnings call, we saw a stronger second half, and that’s, in fact, what we see playing out. And part of these engagements, the margin move-around is kind of muted. It could be mixed issues. It could be hardware early configurations that we then convert services to. And if you look at all of that, we’re in a good place. The margins will move around, as you said. I’ll let Ken kind of quantify that a little bit, but margins will move around in our business a little bit. But let’s not forget, gross margins are up from 19.5% three years ago to where we are today. And if a margin moves around a point in a quarter, it’s primarily because of mix of maybe hardware deployments in a quarter and then future quarters where software might be stronger or services might be stronger.
And that’s just the nature of the business we’re in. Very pleased with the team’s execution and very confident that we’ll continue to see good progress there.
Ken Rizvi: Yeah. And Kevin, if you look at the margin, we provided a little bit more room here in Q4, and part of that’s just around the timing of not only the hardware deployments, which we’ve talked about in the past, and making sure we get the appropriate customer acceptance and the like, and those can move between quarters. That’s why we outlined that. But if you look at the margin for Q4 and the guidance, we have both point-in-time services and ongoing managed services. And we just wanted to have a little bit more flexibility. My assumption is most of the street will probably end up near the midpoint, but that gives us a little flex around that.
Kevin Cassidy: Okay. Great. Thanks for that color. And maybe, as you’re saying, your engagements are increasing, can you talk more about the potential for expanding your customer base for IPS in particular?
Mark Adams: Yeah, absolutely. I think, Kevin, as you know, this is a business that we’ve talked about repeatedly was — is a business that we’ve said it’s got customer concentration and can be lumpy. We’ve invested very heavily over the last fiscal year here the last nine months to 12 months on bringing on new go-to-market resources. And to be very honest, I’m super pleased with the progress we’re making there in terms of, again, managing major accounts and getting the executive engagement to go market our capabilities to these large enterprises and Tier 2 CSPs. The amount of proposals that we have generated continues to increase with the opportunities we’re seeing and we’re looking forward to get on a path where those convert into bookings and revenue over time.
