Operator: Your next question comes from a line Ruben Roy from Stifel.
Ruben Roy: Oleg, I just had a couple of quick questions, really follow-ups. I think you talked about a little bit of this in answers to the prior questions, but just in terms of service provider. It sounded to me like you’re saying that you are having conversations, right? So last quarter, I think, you’ve talked about not seeing any de-commits. I would imagine that that’s still the case. But also — and some of the service providers still figuring out their budgets for this year. Is that giving you a little bit of, I wouldn’t call it hope, but sort of visibility I guess into thinking that you can still turn out to what should be sort of a normal seasonal year, meaning June up and then September a little bit down like usual. Is that driving that or any other detail in those conversations?
Oleg Khaykin: So I think this year, I mean, I don’t want to jump too far ahead. But actually September may actually be stronger this year than normal because the cable is maybe happening in September as it gets pushed, right? But generally, I’d say what we see from service providers, there’s a very healthy insurance business, things go bad and just replacements and things like that. What generally drives like another, like I’d say 20% more, which makes a big difference, is whenever they’re doing build outs or upgrades to their networks. And right now what I don’t see — I mean, at least this time in terms of the insurance business, it’s like orders coming in and they get released and there’s no problem. So the ongoing business is going pretty well.
People maintaining their network, they’re just keeping things running. What I’m not seeing yet is people doing big step functions and expanding capacity or upgrading the network or extending the network. Some of these projects are a little bit more — I mean, we know they are being planned, I know there’s plans for that. I just don’t know when they’re going to decide to pull the ripcord and launch it. And I just — kind of looking at the general environment in the telecom sector, I think, they prefer — if every quarter they don’t do it, they just bank more cash and retire more debt. So I think if I were kind of just looking at from competitive approach as cable guys start upgrading their networks, I think some of the service providers will see need to get back to extending their networks.
So I think I just don’t — I don’t want to be a killjoy, but I just don’t see cash burning hole in service provider’s pocket that they need to go and start digging and laying new fiber or aggressively starting deployment. The area where we do see fairly good momentum, but it’s on a much smaller, like an order of magnitude, smaller scale, are these tier two, tier three primarily private equity funded fiber operators who are laying fiber in anticipation of data centers coming to the area or service providers extending 5G networks to the area or they finally needing a fiber to extend their network into some of these rural communities. So that is one piece that is ongoing. But it’s an order of magnitude smaller amount of volume than somebody like AT&T, Verizon or British Telecom or Deutche Telecom would spend on an annualized basis.
Ruben Roy: And then just a quick follow up for Ilan. I might have missed this on the balance sheet discussion. Are you where you need to be then on leveraging and do you expect to come back into the markets to repurchase in the near term? I might have missed that.
Ilan Daskal: So probably for the next quarter or two, we’ll be focused more obviously on the retiring of the convert. And you know it continues — the overall, continues to be part of our capital allocation model, right? I mean, we are not deviating from the overall strategy. But probably on the buyback for the next one to two quarters we’ll be more muted about it.
Oleg Khaykin: Just decided to bank some cash, so we can retire the whole convert. In the way it’s a synthetic share buyback, because you are avoiding a dilution down the road.
Operator: There are no further questions at this time. I will now turn the call back over to Ilan Daskal for some final closing remarks.
Ilan Daskal: Great. Thank you. Operator. Please concludes our earnings call for today. And thank you everyone, for joining today’s call.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
