Steve Tusa: Great. Thanks a lot.
Operator: Thank you. Our next question comes from Andrew Obin from Bank of America. Andrew, please go ahead.
Andrew Obin: Hey guys. Good morning
Giordano Albertazzi: Hey Andrew.
David Fallon: Hey Andrew.
Andrew Obin: Hey hi. Just a question. What are typical lead times for thermal management products at this point, i.e., if data center owners are planning to buy these GPU chips, what lead times are you quoting for the related thermal products?
Giordano Albertazzi: Well, that really depends on the customer request, of course, but in this moment, we have changed a lot from a situation in – from the situation in which we were in 2022. As we explained during the last earnings call, where we were out of the 50, 60 weeks lead time to much lower levels to the 30, 40 weeks and down from there further. So really what requested lead times we get depends on the strategy of the various players. And do not think necessarily, if I may suggest that it’s the exact concatenation of when do I get the chip or the GPU, and when I need the infrastructure because the two things go in parallel and very often, the infrastructure comes first. So you will see probably some earlier infrastructure demand.
And when the book or the chips will be available for AI. But it’s customer specific. For what we are concerned, we have moved down the path of shortening our lead times and now we’re able to serve the market with much shorter lead times than we did a year ago, and indeed three months ago. That’s exactly good.
Andrew Obin: And maybe just a follow-up, and I’ll echo Steve’s comment on cash. Could you give us some update, just more color on internal changes that you’re making to improve cash – changes on how you bill payment terms, down payments? Just any color about sort of nuts and bolts of moving the needle there. Thank you.
David Fallon: Yes. I think your words, nuts and bolts probably is a pretty good description. We are similar to what we did from an operational perspective, notably in the Americas is we are really getting into the basics and focusing on day-to-day execution. And we have a lot stronger visibility, transparency with where we are with particular payment turns with every customer. We get daily updates as it relates to inventory. And probably most importantly, we have a plan that we are executing against. So I would say there’s been some early successes but there still is a ton of opportunity out there. And this is – was a focus as we exited last year, probably started in force mid last year, but it’s also a huge cultural aspect. So when we talk about drumbeat and when we talk about financial metrics, we generally start with cash at this point in time. So we’re encouraged with where we are, but not satisfied. There’s still a lot of work to do.
Andrew Obin: Great. Thanks so much.
David Fallon: Thank you.
Operator: Thank you. Our final question comes from Mark Delaney from Goldman Sachs. Mark, please go ahead.
Mark Delaney: Yes. Congratulations on the strong results and thank you very much for taking my question. The company had been expecting backlog to get worked down a bit this year as lead times normalize. But book-to-bill, as you mentioned, has come in at 1.0, approximately for both 1Q and 2Q. So given the upside in orders you’ve seen in the first half of the year, can you share your latest views on how you expect backlog to trend? Do you still think that comes down a bit this year? And then on a related topic, given the better than expected demand, do you think you need to put any more manufacturing capacity in place to support that?
