Jim Clark: Thank you, Aaron.
Operator: Thank you. Our next question is from Amit Dayal with H.C. Wainwright. Please proceed with your question.
Amit Dayal: Thank you. Good morning guys. Solid quarter, congratulations. Just to begin with, Jim, maybe if you could provide some granularity on where the operating leverage improvements are coming from? Is it just better pricing or larger auditors or maybe some efforts on the cost side? That would be helpful. Thank you.
Jim Clark: Yes. Amit thanks for joining and thanks for the comments. It’s all of those things. And I know it always €“ everybody always wants to kind of identify one that we are over leveraging or that we are really taking advantage of. But it’s really execution against all of those things. I call it the paper clip effect, which is just small incremental changes across the whole €“ our whole scope is the things that contribute to these improvements. And I underline often that I think that we have a lot of runway left because I do think that we have a lot of continued improvement that we can offer. We are by no means operating at 100% efficiency. And so every time I look at that as a team €“ individually and as a team, we recognize that those opportunities still kind of €“ are in front of us.
So, price is an important element. It’s something that we have been very disciplined about. And along with that price comes reliability to our customers, on-time delivery and that type of thing. And when we have on-time delivery, that means that we need to be operating efficiently and we have less margin for error and waste. And so we work on those things, which creates opportunity. And so it’s really kind of an aggregated look at the business. And it’s us executing against all of the elements you just talked about to gain that. And I can’t underline enough, and I think we have been demonstrating it is that we still think we have quite a ways to go. So, those opportunities are still in front of us.
Amit Dayal: Understood. Thank you, Jim. And then from a revenue growth perspective, are you taking market share in both the Lighting and Display segments from other players, or maybe in other words, is this an expansion story that LSI is benefiting from, or are you winning more market share given how you have executed over the last 2 years?
Jim Clark: I think it’s definitely a market share, right. If you think we have had above-market growth now for seven consecutive quarters, there aren’t too many companies, particularly with the broad-based type of solutions we have that are experiencing double-digit quarterly growth. So €“ and we know that the market is not growing at that rate, although we anticipate that there are opportunities for the market to grow at that rate, particularly when you look at the verticals we are in. So, we think it’s the alignment with the right verticals. Like I said, they may not all be growing at double-digit rates, but they are healthy and they are more resistant to the general pressures, these general economic pressures. Number two is that we are sitting there, we are providing and filling orders, and we are €“ I talk about it often, our say/do ratio that we have a high say/do ratio, right.
We sit in front of our customers, make a commitment and then work exceedingly hard to make sure we deliver to that commitment. And that’s garnering us a lot of favor, which is turning out to be us taking market share from our competitors. So, that’s what I think is happening. We are taking market share and that’s accounting for a lot of our above-market growth, but it’s also underpinned by the fact that we are just in generally healthy markets for the most part.
Amit Dayal: Thank you, Jim. That’s all I have.
Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to management for any closing comments.
Jim Clark: Well, I just want to say thank you again for everybody that’s dialed in, called in and follows us and listens. I think that we have a great story in front of us here. As we underlined here through the Q&A today, we believe we still have a lot of opportunity in front of us, and we believe we can continue to grow like this. It is an extraordinary effort by a team of folks here. So, I just want to underline and say thank you to the whole team and to our partners, agents and customers. We will continue to deliver. We will continue to look for those growth opportunities. And I look forward to our next call. Take care.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
