Sean McGowan: Okay. I want to ask one other question before handing it off and that is just to kind of clarify this sort of non-guidance guidance on the EBITDA. You’re at 6 to 8 for the full year, when you say run rate that’s not meant to be interpreted as an estimate for 2024, right? That’s just the kind of rate at which you would end the year and if you continue to make improvements and see growth, 2024 would be higher than that, right?
Cris Keirn: Correct. It’s not our guidance for 2024. What we’re saying is on this year’s guidance of 265 to 270 for net revenue we expect to be exiting the year at a run rate of $25 million to $30 million in EBITDA. So obviously we have a lot of year left, we’re — over 60% of the year is left in the back half here. So very important Q4, we obviously would need to see how that turns out before we would want to guide revenue for next year but we’re cautiously optimistic on how that’s going to be turning out, but and we’ll be guiding, in our normal time frame next year once we have that visibility.
Sean McGowan: Okay. All right, thank you very much.
Cris Keirn: Thanks, Sean.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Drew Crum from Stifel.
Drew Crum: Okay, thanks. Hi guys, good afternoon. I just wanted to ask about the adjusted gross margin in the quarter. It appeared to slip sequentially, I know you called out some headwinds, but to those intensify in 2Q and how should we anticipate those trending in the back half of the year? And then I have a follow up.
Cris Keirn: Yes, sequentially they, did climb slightly and that was really due to — it’s timing driven and we do expect margins to continue to improve in Q3 and Q4 as per our prior guidance.
Drew Crum: Okay, okay. And then your console headsets I think are typically on a two to three year cycle. Given the influx of new gamers during the pandemic, are you starting to see these consumers come back to your product?
Cris Keirn: Yes, that’s a great question and we keep a really close eye on that replenishment cycle. Historically it’s been about that two year mark and I believe some of the lists you’re starting to see in the console gaming headset area is folks starting to replenish based off of those pandemic purchases. As you know, the Pandemic purchases are quite high and so we think that that’s a potential tailwind for us as we go into the back half of the year here and get into 2024.
Drew Crum: Okay. Cris, maybe I can just slip one more in here. I think previously the market forecasts was to be flattish up slightly, just given some of your commentary to date, I know that you mentioned the PC accessory segment was a little bit softer, but have you changed that outlook, are you still forecasting flattish ups slightly or is that improved based on performance to date? Thanks.
Cris Keirn: Yes, I think we’re still holding that that view as from overall, right? What we’re seeing is that the mix of that is moving around a little bit, which is fine that’s something that that’s happens all the time between the categories. But we think that PC has a good chance of recovering here in the back half. If you look at some of the upcoming game releases, I know Baldur’s Gate 3 just released last weekend, sounds like that game is going very well. We got a few others coming up, Call of Duty just officially got announced today, along with Counter Strike Two coming up. So there’s a lot of good PC releases in the hopper that we think are going to help that category as well as you know console headsets being tracking pretty much where we had expected it to run.
