Lorenzo Grandi: In terms of expenses, net operating expenses actually in the first quarter are expected to increase in respect to our Q4 operating expenses. And this is mainly due to negative impact of the calendar because during Q4, we had, let’s say, vacation at the end of the year, as you know very well, with the Christmas period. We have an increase of activity. We have also some unfavorable currency effect during — in this quarter in respect to the previous quarter. We have also to consider that we will have a negative impact in the line other income and expenses. So there are 2 reasons for that. One, I was explaining before, is due to the start-up cost that we account in this line. And the second reason is that we do expect in the — in Q1, a lower level of R&D income grants, let’s say, due to the fact that for administrative reasons, we are not in the position to recognize, let’s say, all the amount of R&D grants in Q1, most likely there will be a catch-up of these R&D grants due to the renewal of the various convention with the various authorities.
So at the end, when we look at Q1, our net operating expenses, including other income expenses, should fall in the range of $900 million, $950 million.
Andrew Gardiner: And then in terms of how you think that trends through 2023.
Lorenzo Grandi: Both for the year 2023, let’s say, I would say that this year will be a year quite significant, let’s say, investment in terms of R&D, in terms of activity, in terms of, let’s say, digitalization of our company. So we have many programs running. I would say that a midpoint, while in 2022 we enjoy a significant, let’s say, leverage on our expenses, my expectation is that, let’s say, in 2023, we will not enjoy a significant leverage on our expenses at the midpoint of our revenues indication.
Andrew Gardiner: Okay. So steady as a percent of sales on ’22? .
Lorenzo Grandi: Yes.
Andrew Gardiner: Okay. And if I could just squeeze a quick follow-up in back to the personal electronics question. If I go back to how you guys framed the outlook for ’23 back at third quarter, you’ve given us an initial indication of growth, and you said at that time that you thought you could grow across all 3 divisions in 2023. As we start the year here in January, you’re now saying no — AMS is going to be down, driven by this reframing of the personal electronics relationship. Has something materially changed in the last few months with that, that’s driving the this mix towards lower revenue but higher gross margin? It feels like it’s more socket changed than any pricing dynamic because if it was pricing on a similar part, gross margin largely wouldn’t move up. So is there anything more you can add to that?
Jean-Marc Chery: Here, okay, there is 2 points. Point number one is the usual, okay, seasonality of Q1 of the personal electronic overall. But this is not a surprise. And again, what I commented on the mix change, okay, with an important engaged customer program, is absolutely not a .
Andrew Gardiner: Okay. I guess that’s what you can say. I understand.
Celine Berthier: And just to clarify because we had a question from the , the amount of net OpEx for Q1 is $900 million to…
Lorenzo Grandi: $950 million.
Celine Berthier: $950 million.
Lorenzo Grandi: $950 million.
Celine Berthier: Yes, exactly. Just to be…
Lorenzo Grandi: I take some time some cushion in giving expecations. At this time it’s a little bit to mature.
Celine Berthier: So with this, thank you very much to all of you. I think you can end our call for this time.
Jean-Marc Chery: Thank you, everybody, and happy new year for everybody.
Lorenzo Grandi: Thank you.
Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
