So, if we can combine it and it becomes a part of the story, along with software, along with components, then I think it makes — it’s perfectly fine, makes sense, in and of itself, no, it doesn’t justify the margin pressure and we would look — in the meantime, we would look to continue to capture the opportunity and do you think that there is tremendous upside opportunity associated with modules, in some cases when you’re engaging with utility companies, they’ll want an LPWA solution or they might gravitate towards private network like LoRa solution. So having the opportunity to do both is an advantage as well as long as you build together a bit more of a broader product offering or solution and story. So, hopefully, that gives you a little bit of a color without specifically nailing everything down after five months.
Rick Schafer: No, I appreciate that. There’s a lot of color, Paul, and actually a great segue to my next question, which is more, if you wouldn’t mind maybe give a little bit more on the order trend side, sort of order velocity, however you want to describe it. And I’m curious, it sounded like that business was starting to pick up. I believe it’s — last call, I think you talked about it being stable sort of around $100 million or so a year. I’m curious if that’s still kind of where you see that business for the foreseeable and if you could talk at all about sort of your strategy, if you feel comfortable table about the strategy to grow that business, maybe and sense of revenue funnel, if you’re sharing those kind of metrics. Thanks.
Paul Pickle: So you’re talking about LoRa in particular.
Rick Schafer: That was a LoRa specific question. Yeah.
Paul Pickle: Yeah. So I kind of build LoRa is about $100 million business. So thank you for that. Yeah. So I do think, as we kind of look, there is a significant opportunity for components or semiconductor content in IoT and it becomes, because of the diversity of use cases, it really becomes a multi-pronged strategy. You do have to have a software component, this is where we do have a rather mature cloud platform, we do have a rather mature, let’s call it, gateway software team as well. And so as we kind of look at that, there’s an overall theme that I do think that there is an opportunity for us to capture. But we need to — we need to adapt this tenet of making private network deployment a lot easier. If we look at the connected in node, connected gateway, numbers those increased sequentially this past quarter, it further shows that there is a rather large opportunity and continued wave, even through a downturn, we’re still seeing numbers from an end market standpoint that continue to migrate up where people are wanting an alternative of connectivity for, let’s say, low bandwidth, low power devices.
And so, that is still an opportunity that we believe in. However, I believe, I’ve said this before that we need to fill out the technology portfolio. Part of the reorganization that we’re going through is to kind of group R&D competencies for us to take advantage of that and so we’re in the middle of formulating that strategy in order to capture that vision of what we see making private network deployment very easy and part of that story is certainly LoRa along with a few other components in the technology portfolio. We’re formulating that today and we’ll be working on that over the next couple of quarters reorganizing around it, and then at the appropriate time we’ll be laying it out so that we can kind of talk about what that market opportunity looks like exactly why we have a right to win that market opportunity and what that timeline looks like.
In terms of overall opportunity, I know that it’s been said that it’s roughly we had a $1.1 billion pipeline in the past. Rather than qualifying that number, I’d say roughly, today we’re around $400 million on that LoRa-based pipeline and we continue to work it, we continue to see the opportunity and use cases. We need to look for use cases that have a lot of commonality in solution — product solution and then we need to start to work on delivering a standard solution to that end market, rather than just simply a component.
Rick Schafer: Thanks a lot for all the color Paul. Good luck.
Operator: And the next question comes from the line of Tristan Gerra with Robert W Baird. Please proceed with your question.
Tristan Gerra: Hi. Good afternoon. Just as a follow-up to your commentary on Sierra Wireless, just looking at where we could see the revenue run rate before any type of synergies, including with LoRa, it looks like your quarterly run rate right now is probably a little bit below what it was two years ago before the big ramp up of last year. So, and you’ve talked about the October quarter being presumably a trough. So is a $100 million a quarter kind of a good base from which we should be basing assumptions before you — you build any cross-selling opportunities? And then if you could elaborate a little bit on the share shift within the different businesses for Sierra Wireless? Thank you.
Paul Pickle: Yes. I will comment on the share shift. I don’t think we’ve noted any share loss or share shift, if anything, we would expect to gain some share in modules especially. If we look at routers, that’s pretty steady. The one piece, if you want to call Sierra Wireless, a $400 million business, I said on the last earnings call I believe after it recovered, I would put it right around $460 million. I still think that’s probably a good number although in the short term, I think your number is probably a little bit better, but — so, let’s take the $400 million, basically $100 million of it is going to be pretty steady, very predictable connectivity business, it’s recurring great visibility. We’re growing it, it’s not going to be a barn burner in terms of growth rate, but it’s just going to be steady pickup, good gross margin, and contribution.
