Ed Meyercord: Yeah. I’ll take a shot at this Mike, and then open it up for the rest of the team, but we continue to see the step function. We are seeing a slightly higher concentration when we look at mix. Wireless comes in with a lower gross margin, then campus switching and data center switching, certainly. And then because of the strength of product that we’re seeing, we wind up with more product mix, which has lower gross margin than our subscription and service revenue. So as a result, that’s why we’ve tempered our outlook for the rest of the year. But we’re very confident and crossing over that 60% gross margin number as we head into our fourth quarter of this year and we expect a step function to continue into fiscal ’24.
Cristina Tate: Exactly. We expect to hit 60% in Q4. We’ve seen a gradual progressive improvement in our gross margin throughout fiscal year ’23. So roughly about a percentage — 0.5 percentage point to 1 percentage point of improvement in each quarter. And we expect that trend to continue in fiscal year ’24. I mentioned that unusual or an inflated costs related to the supply chain environments such as expedite fees, and higher than normal freight costs, we expect those to gradually come down and continue to come down through FY ’24. So roughly, I would say that we expect gross margin to improve roughly 3 points to 4 points by the end of Q2 — fiscal year ’24.
Mike Genovese: Okay. Thanks so much.
Operator: Thank you. One moment for our next question. We have a question from Greg Mesniaeff with West Park Capital. Your line is open.
Greg Mesniaeff: Yes. Thank you, and congrats on a good quarter. I have an R&D question for you guys. As you look at your product mix, and you look at component costs, the fact that they’ve gone up and they’ve remained sticky. What kind of initiatives are you — do you have in place right now to basically engineer out some of the hardware component costs, particularly in switching and campus switching in areas where you know, it’s kind of component heavy, if you will? Any insights on that would I think be kind of helpful to see how you can essentially move beyond some of the higher component costs that go into the products and the switches? Thanks.
Ed Meyercord: Yeah. Well, Greg, thanks for the question. I’ll lead off. One of the things that I mentioned is that, during the quarter that we qualified an additional 37 component suppliers. And there is a question of our resiliency around availability and supply chain constraints. And then there’s also the question around how we drive our gross margin through the qualification of new suppliers and new components and new parts. One of the lessons learned for us is that, we have the ability to enhance this qualification process and the qualification process that was solely focused on availability will be turned towards driving and improving gross margins as we go forward. So it’s a good question. I can tell you, it’s something that we’re very focused on.
Greg Mesniaeff: Great. Also did you guys give a DSO number for the quarter?
Stanley Kovler: Yeah. Greg that should be in the presentation. And if you look there, we talked about DSO in the 44 day range, it’s on Page 14 of our
Greg Mesniaeff: Okay. Got it. Thank you.
Stanley Kovler: Thank you.
Ed Meyercord: Thanks, Greg.
Operator: Thank you. And our next question comes from Dave Kang with B. Riley. Your line is open.
Dave Kang: Thank you. Good morning. Just my first question is on your key verticals, I assume there is still positive. Any verticals that is turning negative?
