Rich Hume: So Keith, good morning. I hope everything is well. Yes, they’re proceeding consistent with our expectations. We would anticipate as we think about this year that we’re going to start to see meaningful progress relative to our cross-sell opportunities with our customers. When we think about our guide, we fundamentally believe that we’ve baked that opportunity into the guide and it will really kind of ramp up and hopefully be a bit more meaningful in the back half of the year. Do you have anything to add, Marshall?
Marshall Witt: No.
Keith Housum: Appreciate it. And if I could just touch on real quick, the acquisition from — you announced over the past week or two, I believe it was Cokeva, and please correct me if I get the name wrong. But it appears more of a life cycle services company. I guess, perhaps talk about the strategy and making that investment now, when I think your largest competitor actually got out of that business recently. Perhaps there’s a strategy diversion and is that an opportunistic or competitive advantage you have versus your competitors?
Rich Hume: So first of all, let’s talk about the primary capabilities that are offered with the acquisition. First is around repair and then test and refurbishment. We certainly participate in those businesses today. And really, we connect quite well relative to assisting our vendors in that regard. And we like the business. And obviously, it also offers a 220,000 square foot piece of real estate, which will allow us to do more integration for customers as well. But we see a good demand, a solid demand for those services with our vendors, and they’ve been encouraging us to grow that footprint, which we are doing. The other thing I’d like for you to think about is there’s more focus on these types of things, especially the refurb segment moving forward as sustainability comes front and center.
So we also see sort of, if you will, a bit of a revival around refurb as the world tries to become more sustainable. So we think that there’s going to be an extra ticker relative to these types of businesses moving forward based on that focus.
Keith Housum: Great. Thank you.
Operator: And we’ll take our last question from Ashish Sabadra with RBC Capital Markets. Your line is open.
Ashish Sabadra: Thanks for taking my question. There was a lot of discussion around AS dynamics near term, both the first half and the second half of ’24. But as we get through some of that near-term volatility, I was wondering if you can talk about how should we think about the midterm growth for the AS solution as well as margin profile for this business over the midterm? Thanks.
Marshall Witt: Yes. So I’ll start, Rich, and you can chime in. So for AS, as we said in our prepared remarks, we still have some backlog from a comparative standpoint that will be — make it a difficult comparison year-on-year as we’re in quarter one. We think as we play out the rest of fiscal ’24, we expect to see a return to growth for both portfolios, ES and AS. The — we’ll call it the sequential momentum of that or ratability of that is still somewhat to be determined. But I do think back to the comments we made about how we build up our forecast, we do rely quite a bit on our leaders at the country level to look at their AS relationships and to figure out and determine how best we think that’s going to grow. But thinking about that low- or mid-single-digit to high-single-digit growth rate, I would also think about AS as performing in that same range in the second half.
Ashish Sabadra: Maybe just to clarify, like — is that like the — when we think about that exiting at mid- to high- single-digit growth for AS in ’24, is that the right growth profile? Or could we see a further acceleration there over the next three years, let’s say, midterm?
Marshall Witt: Yes. So beyond the thoughts we gave, we don’t provide guidance or thoughts around what it looks like in ’25 and ’26. Certainly, we go back to our strategic initiatives and how we position our investments and the commentary we made near term about what we’re doing to lean into AS, SG&A and the skill sets and how important it is to retain those and grow those. So we’re certainly confident in that market space. But beyond the commentary, not much more we can provide in terms of what that looks like.
Rich Hume: Yes. I guess the only thing that I would add to Marshall’s comments is we always have an aspiration to grow a bit faster than the market. I think history would say that we had been successful relative to that pursuit. And we would kind of characterize ’25 and ’26 with that type of expectation that whatever the market growth is that we would aspire to and execute above — a little bit above market expectations.
Ashish Sabadra: That’s very helpful color. And maybe if I can ask a clarifying question. PC decline, obviously, was a big headwind in fiscal year ’23. Have you quantified or is there a way to think about the total revenue headwinds from the PC decline in the fiscal year ’23 last year?
