David Weigand: It’s really about trying to return the most shareholder value. So back to your point, we know that with — because of our tight control over operating expenses, if we get more volume from a large customer, we’re going to be able to bring more EPS to our shareholders. So that’s really the — it’s really the decision to partner with a really good customer.
Nehal Chokshi: Got it. Okay. And then did you review the 10% revenue customers for the quarter?
David Weigand: We did, where we said we had two, one 25 and one 11, both in the CSP large data center vertical.
Nehal Chokshi: Great, thank you for taking my question. I’ll get back in the queue.
Operator: Our next question is from Jon Tanwanteng with CJS Securities. Your line is now open.
Jon Tanwanteng: Hey, good afternoon, and thank you for taking my questions. And really, congratulations on the fantastic growth. Charles, my first question is for you. I was wondering what gives you the confidence in the growth beyond this year. You mentioned — inferenced the ecosystem potentially years and decades of demand. Where is the visibility to coming from, what are you seeing in your backlog and your order books and in conversations with customers that gives you that confidence?
Charles Liang: Yeah, thank you for the question. Yes, I mean, other than generative deep learning segment continue to grow very strong. Our inferencing opportunity in general CPU customer base also growing. So with AI continuing to be more popular, indeed, so many vertical around the world need more inferencing solutions as well, including private cloud, private kind of data center and [indiscernible]. So, we are approaching continue to grow in [indiscernible] of direction and we see positive feedback, a convincing feedback.
Jon Tanwanteng: Got it, and to ask one of the questions that’s been mentioned in a different way, is there a gross margin floor as you pursue this share gain. And when do you see a possible inflection? I’m just wondering what is the limit. When you go in terms of gaining share versus the margin that you generate?
David Weigand: Sure, so we set out a target back in March of 2021 of 14% to 17%. But that’s and we’ve actually done pretty well against that target. But one thing I’ll say is that we have a lot of — there’s a lot of initiatives that play into our favor. Number one, we’re doing a lot in terms of expansion to lower our cost envelope. Number two, we are — our advantage is our building block solutions and what that means is, we’re the fastest to market because of the way that we have architected our products. So what that means is there’s a lot of new technologies that are coming out from many different technology providers. And we expect to again, as we work with AI, be first-to-market with those. And that first-to-market advantage helps us — helps to differentiate ourselves as we come out with a complete set of solutions. So, we think that’s another thing that will that is always going to play to Super Micro’s advantage.
Charles Liang: Yeah, especially we have so broad building block proud solution. So, economical scale will help our building block solution to be more efficient because there’s lot of product in our volume were still in the middle size to small size volume and we [indiscernible] and will continue to be aggressive to grow to see every segment, every vertical, we have ALC, economies of scale.
Jon Tanwanteng: Okay great, thank you. I will turn back in the queue.
Operator: Our next question is from Quinn Bolton with Needham. Your line is now open.
Quinn Bolton: Thanks for taking my question. I mean congratulations on the very strong results. I guess I wanted to ask a gross margin question too, obviously it’s moderated here in the current quarter and the forward quarter. As you guys position yourself to further market-share gains. I guess my question is, what sort of the midpoint of that 14% to 17% level that you set back in 2021, is that sort of the right level to be thinking about as you guys stay aggressive and try to drive market-share gains? And maybe — sorry about the twist in the question, to the extent that. Supply catches up to demand and growth rates slow, would you then start to focus more perhaps on higher-margin business, just any sort of thoughts, wherein that 14% to 17% range margin may trend over the next year or two would be helpful?
David Weigand: Yeah, for sure I’ll — most important principle is why would a base go for shareholder for our company. So, although we said of 14% to 17% as in that range in 2021, but if any change, any further adjustments would be the pace of a shareholder. We went to that change. And we are carefully evaluating that range kind of monthly.
Quinn Bolton: Okay, got it and then as Charles said, question on liquid cooling. Just as you look forward, you guys are ready, it sounds like the infrastructure may still need some improvements, but I guess as you look at data center customers CSPs that are looking to deploy liquid cooling. Is that sort of does that include current-generation sort of 700-watt, GPUs are, is it really the next generation, the B100s and sort of the 1,000 watt GPU class that really drives the adoption at your CSP customers, drives that need for liquid cooling.
Charles Liang: You are right. In these current 600 watt, 700, watt module, people can still take care very well, we say air conditioning. And that’s why people still are comfortable with our traditional air cooler. But when that system grows to 1,000 or even 1,000 watt per module, yes. I mean — I think cooling becomes even much more critical. So, by that time, I believe. Most of the data center will have facility ready for that. So we are very optimistic and very patient to continue to improve our quality, especially that reliability and easy for maintenance. So when customers are ready, we can dwell quickly to support them.
Quinn Bolton: Excellent. Thank you.
David Weigand: Thank you for the question.
Operator: Our next question is from Aaron Rakers with Wells Fargo. Your line is now open.
