Marshall Witt: Yes. Thanks, Rich. So just a few things to add, as we said in our prepared remarks, the near completion of our ERP in North America certainly enables us to drive a lot more opportunity for efficiencies across all areas, and that’s not only just within SG&A, but that’s margin optimization, pricing, scale, et cetera. So I think that gives us additional confidence to know that deploy it onto one system, we’ve got an opportunity to drive it down. Specifically to the $50 million in cost optimization, the way we see that play out in general terms is we’ll start to feel that benefit in Q3, roughly around $10 million of incremental SG&A takeout. We think there’ll be another $15 million or so in Q4 incremental. We’ll call that [$25 million] (ph) for the rest of 2023.
And then for fiscal 2024 Q1, we expect the — an incremental $25 million in Q1. So that’s how we expect it to play out. I think just as Richard said, there’s lots of things we need to consider that will be continued investments going forward. Higher SG&A as it relates to our high-growth technologies will continue to be important to us. You’ve probably experienced and seen in the past when we have some heavier SG&A, typically that bears fruit two to three quarters down the road in terms of better returns, higher margin and cash flow coming back in through the door. So that’s how we expect it. In terms of the glide path for Q3, we’ll probably be right around 4% in Q3 for SG&A as a percentage of revenue and then we’d expect to be between, call it, 3.6% to 3.8% as we enter Q4.
Michael Ng: Thanks, Rich. Thanks, Marshall. It’s very helpful. I’ll hop back into the queue.
Rich Hume: Thank you.
Marshall Witt: Thank you.
Operator: The next question is from Joseph Cardoso with JPMorgan. Your line is open.
Joseph Cardoso: Hi. Good morning and thanks for the question. Just one for me as well. As it relates to your AS business or your AS and high-growth technologies business. Just curious to get some more granularity around the trends that you’re seeing there. Specifically, is that — I guess there was some broader concerns from the investment community around maybe seeing a pullback as you kind of digest some of the backlog in that business. I guess, can you just touch on whether you’re seeing trends track out of your expectations 90 days ago? Are you seeing any pullback in terms of current demand trends or order trends? Just curious to see how that business is tracking relative to your expectations 90 days ago? Thanks.
Rich Hume: Yes, a couple of things. Thanks for the question, Joe. So first, AS has been growing at a reasonably robust pace — there’s — for sure, it’s — that growth rate has benefited from some backlog runoff. We are starting to reach sort of profile levels of backlog, generally speaking. There are some very isolated pockets. So the way I kind of see it just to give you a trend here is, I think that the AS growth rate will be coming down, but there’ll still be growth for the back half of the year, but at a bit of a lower growth rate. So if you think of the dynamics of our business, we talked about lesser declines in the PC ecosystem moving forward. I think we then have lower growth rates moving forward in the AS business.
