Rich Hume: So I think it’s part of the decline that we’ve seen in PC and then moving forward to the lesser declines and then the AS growth rates that we talked about and then even within our Hyve business, we have tough compares in the back half of the year, and know that we’ll be challenged from an overall sales perspective there. All of these things have multiple factors, Keith. I think it starts with the macro and I talk about the macro and Marshall has a couple of time. And certainly one of the outcomes of the macro are elongated sales cycles, more scrutiny, if you will, around the purchase, more on absolutely limiting the purchase to what’s needed now as opposed to what can be foregone for a period of time. So I didn’t — maybe I didn’t directly state that the protracted sales cycle time is an outcome, but certainly, I see it as tied to sort of the macro and natural — a natural reaction given the macro.
Keith Housum : Great. I appreciate. And just as a follow-up, with the additional cash flow that’s available as the reduction of the business in putting that capital use, how do you guys see the M&A environment today and your opportunities available to you?
Rich Hume: So I think M&A is something that we always have an active pipeline on, and we continue to engage on that pipeline. Things come in, things fall off. I would tell you that our M&A interests are pretty consistent with what they have been over time. As you well know, within this industry there’s the ability to grow organically, predominantly driven in the new technology areas. And there’s the ability to grow inorganically and over the continuing — continuum, sorry, I think that both of those tools will be utilized in order to continue to drive our enterprise.
Keith Housum: Great. Thank you, guys.
Rich Hume: Thank you.
Operator: And the next question is from Matt Sheerin with Stifel. Your line is open.
Matt Sheerin : Yes. Thank you and good morning. I had a question on the gross margin. Marshall, the implied gross margin guide is roughly 6.7%. So down 20 basis points sequentially. You talked at the end of your comments, your opening comments about Hyve having some, I guess, some catch-up and some pricing with customers in that it was sort of a onetime positive impact. So could you talk about the expectations for gross margin, particularly as you get into the back half of the year with Advanced Solutions slowing and client devices picking up and particularly your consumer business also picking up seasonally. Should we expect gross margin to be down again in Q4?
Marshall Witt: Yes. So I’ll address the second half and then Rich certainly can chime in. So we think the gross margins probably come down slightly. Most of that, I think, Matt is just due to seasonality. As you know, quarter four tends to be a little bit more PC weighted. And with that, it tends to have a little bit lower gross margin profile. But you’re right, we had some onetime items that won’t repeat themselves in Q4 for Hyve, and that definitely did benefit last year’s quarter four margin, gross margin. But generally said the majority of the uplift, if you think about the year-over-year comparison on gross margin are primarily due to the mix shift between AS and ES, Matt. And also the increased amount of gross versus net that’s taking place within the enterprise.
We roughly have about a 3% higher grossing of those revenues year-on-year. So it does actually artificially or mathematically increase the margin profile, while gross profit dollars stay relatively consistent or constant relative to overall revenue volatility.
Rich Hume: I have nothing to add. I think, Matt, as Marshall had said it, maybe marginally with the anticipation would be a sequential down a couple of basis points along the way, but fairly stable, I think, in Q4 then.
