Ronen Faier: Yes, thanks for the question. First of all, it’s very multidimensional because we’re talking about the split between geographies as well as between segments. Now, added onto that really sell-through by our distributors is not online data. So the fact that we’re into the quarter doesn’t mean we have that much information in front of us. It gets accumulated a bit later. I can say that there are some countries in Europe that are showing faster growth rates right now; Italy, Switzerland. As I mentioned before, Germany was a bit slow. The expectation is that it will begin to pick up because this legislation went through just a week ago. Those were probably just from specific data that I’ve seen. I would say that Italy and Switzerland stand out a bit, and probably also commercial is showing in some cases faster growth.
And this data is a combination of how we track the installation rate and, and sell-through. So although we’re a little bit more than one month into the quarter, I don’t think there’s a lot of definitive information that we can give on this topic, probably other than what I mentioned that is more evident is, are the countries that I referred to.
Vikram Bagri: Great. And on a related note, you mentioned gaining market share through more innovation and more features in SolarEdge ONE software, particularly in C&I side and also on residential side going forward. We only see that R&D line item, which is $300 million on an annual basis. Could you talk about how you plan on gaining market share going forward, both in U.S. and Europe? Is the strategy to be differentiated on software side or there are more innovations on hardware side that are upcoming that we don’t fully appreciate? Thank you.
Ronen Faier: Thanks for the question. Hardware has been our bread and butter for years, and our expertise or the expertise of our R&D team in power electronics is a significant differentiator for the company, so it’s definitely a core priority for us. And as I mentioned, I gave the example in my prepared remarks of the next generation three phase large inverter for the European market that is targeting a growing segment. And there we definitely plan and are en route to differentiation on the basis of hardware with the traditional factors in mind of efficiency, cost, and all of the capabilities around the interaction between the battery and the inverter. So that, and a lot of the things that I didn’t refer to in this conversation around safety, that is coming from the optimizers, where we are constantly introducing more unique safety features and again, completely on the basis of our hardware infrastructure and capability.
That said, and when you refer to the R&D investments, definitely the ratio of software to hardware investment today is different than it was four or five years ago. And software takes a bigger portion because it is much more important to the customers from a world that used to be based on feed in tariff, where it just mattered how much electricity you deliver into the grid, to a world today that is much more complex and self-consumption oriented, which creates, again, another opportunity for differentiation which we are focused on. So we are definitely taking a balanced approach between the two. But in historical perspective, it means that we’re doing more in software today than we did in the past, because we were always very heavily invested on the hardware side.
Vikram Bagri: Thank you. We’ll take our next question from Christine Cho with Barclays. Your line is open.
Christine Cho: Hi. Thank you for squeezing me in. I just had one question. Last quarter, with respect to gross margins, you mentioned batteries were, the single phase batteries were a reason for the drag on gross margins similar to this quarter. But you had also mentioned that you had a higher percentage of customers with discounts and that you expected for it to revert back. You didn’t mention anything about customer mix this quarter. So just curious if you did see it revert back or was it pretty consistent with what you saw in the last quarter?
Zvi Lando: Actually, Christine, thank you for your question. It’s actually mentioned in my prepared remarks. We did see that we saw lower ratio of customers that enjoyed the volume discounts, and this was actually offsetting, this benefit was offsetting of the additional batteries that we shipped above what we actually planned. So definitely, yes, this was the case. The surprise here actually was not the change in mix that we did not anticipate. We anticipated this one. Surprise was actually simply selling more batteries, which I think was a little bit of a good thing at least commercially.
Christine Cho: Do you expect continued improvement on the customer mix or no, it’s back to normal?
Zvi Lando: I would say that it’s relatively normal. The only thing I would say is, again, it’s a very small numbers game, and everyone that will give us a surprising, large customer that will come with a surprising order simply because he needs something, may change it a little bit in those numbers. But in general, we do expect that the ratio that we see right now is the more normal compared to what we saw before.
Operator: And it does appear that there are no further questions at this time. I would now like to turn it back to Zvi for any closing remarks.
Zvi Lando: Thank you, operator, and thanks everyone for joining us on our call today. Have a good evening. Thank you.
Operator: This does conclude today’s program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.
