Ladies and gentlemen, thank you for standing by. And welcome to the Jabil First Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you. I would now like to turn the call over to Ms. Beth Walters, Senior Vice President of Communication and Investor Relations. Please go ahead.

Thank you. Welcome to our first quarter of 2013 earnings call. Joining me today are President and CEO, Timothy Main; Chief Operating Officer, Mark Mondello; and Chief Financial Officer, Forbes Alexander. This call is being recorded and will be posted for audio playback on the Jabil website, jabil.com, in the Investor section. Our first quarter press release and corresponding webcast with slides are also available on the website. In these slides, you will find the financial information that we cover during this conference call. We ask that you follow our presentation with the slides on the website and beginning with slide two, our forward-looking statements. During this conference call, we will be making forward-looking statements including those regarding anticipated outlook for our business, our currently expected second quarter of fiscal 2013 net revenue and earnings results, our long-term outlook for our company, and improvements in our operational efficiencies and financial performance. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. An extensive list of these risks and uncertainties are identified in our annual report on Form 10-K for the fiscal year ended August 31, 2012, on subsequent reports on Form 10-Q and Form 8-K, and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Today’s call will begin with our first fiscal quarter results, highlights and comments from Forbes Alexander, as well as guidance for our second fiscal quarter of 2013. Tim Main will follow with macro environment and Jabil specific comments about our performance. We will then open up the call to questions from call attendees. I will now turn the call over to Forbes.

Thank you, Beth. Hello, everyone. I ask you to please refer to slide three. Net revenue for the first quarter was $4.6 billion, an increase of 7.2% on a year-over-year basis. GAAP operating income was $170.3 million or 3.7% of revenue, which compares to $170.8 million GAAP operating income on revenues of $4.3 billion or 3.9% for the same period in the prior year. Diluted earnings per share were $0.51. Core operating income excluding amortization of intangibles, stock-based compensation decreased 1% to $192.5 million, represents 4.2% of revenue. This compares to $194.6 million or 4.5% for the same period in the prior year. Core diluted earnings per share was $0.61. If you now please turn to slide four, we’ll discuss our segments. In the first quarter, our Diversified Manufacturing Services segment grew 20% on a year-over-year basis, driven by continued strength in Specialized Services, while offset by weakness in Instrumentation, Clean Tech products related to the smart grid rollout encompassing meter -- meters, solar and wind related products. Revenue for the segment was approximately $2.2 billion, representing 47% total company revenue. Core operating income expanded in the quarter to 5.8% of revenue. Enterprise & Infrastructure segment increased 17% on a year-over-year basis. As we’d expect revenue was approximately $1.4 billion, representing 30% total company revenue in the first quarter. Core operating income for the segment is consistent with the previous quarter at 2.4% of revenue. The High Velocity segment decreased to 20% on a year-over-year basis, driven primarily by declines in handset volumes. Revenue was $1 billion, representing approximately 23% of total company revenue. Revenue performed better than our guidance as we saw strength in the quarter in handset volumes, offset by weakness in printing and set-top box revenues. As a result, core operating income for the segment was 3.2%…

Thank you, Forbes. This was an interesting quarter. The primary takeaway for me is the robust revenue growth, which I think is remarkable in the current environment. I would also highlight growth in Diversified Manufacturing Services which rose to 47% on our overall business. On each of these dimensions, the quarter was record setting for the company. Growth in Enterprise & Infrastructure was a bit better than planned. This was welcomed in an otherwise lackluster-demand environment. Year-over-year, margins were up 40 basis points. We’d like to see more progress but we believe we’re on path to be within our targeted range by year end. We are making investments in complex order fulfillment capabilities diluting near-term progress. The new leadership of this business area is taking a page from the High Velocity playbook, focusing on customer service and remanufacturing principles to improve results further. In the High Velocity sector, business conditions weakened a bit. A notable exception of this being mobility products which enjoyed a stronger than expected quarter. For the sector overall, we are pleased with the results and prospects for the year. Our DMS sector is now pacing in excess of $8 billion per year. We’ve enjoyed multiple years of strong growth and now have significant scale to build upon. Quarter-on-quarter margins improved 50 basis points and are within our targeted long-term range. Additional growth and improvements in our Healthcare & Instrumentation and our Industrial & Clean Tech businesses, which serve to drive margins higher in the range. Specialized services and in particular, our Materials Technology Group continued to leverage growth through remarkable levels. Specialized Service is now 31% of our overall business, representing unique value stream for Jabil. AMS is investing in expanding capabilities to advance logistics and IT intensive services in emerging markets, while also expanding to…

Operator, we’re ready to take questions from our call attendees.

Certainly. Your first question comes from the line of Amit Daryanani with RBC Capital Markets.

Afternoon, guys. Couple of questions, two questions for me, I guess. One, just from the third quarter -- you guys were talking about the DMS segment being down 8%, 9% sequentially. We certainly get a sense, do you think that’s going to be uniform across the three sub-sectors or do you think Health & Industrial segments may start to hit a bottom from a revenue basis or do you think they’re going to get a bit more softer in the Specialized Services -- if you just maybe comment on that, it will be helpful?

I think within the Specialized Services area, there is certainly a lot of smartphone content, mobility content which does have a seasonal element. I think we should see the Healthcare & Instrumentation and the Industrial & Clean Tech stabilize in Q2, Q3 and then start to grow again as we get to the second half of the year. There is primarily a seasonal pattern on it.]

Perfect. And then if you maybe just touch on the inventory numbers, I think it was up about 9% sequentially in November. If could you just talk about drove that, is that for some ramps that you were building up of the third quarter. And if you talk of maybe how much of that was finished good versus raw material, it will be helpful?

Hi, Amit. I’m Forbes. In terms of our overall spread of inventory, the finished goods is pretty consistent for the problems we see that I believe that’s we’re in about 13% to 14% of the inventory level. That’s been pretty consistent now for the last two or three years, so nothing extraordinary there. Finished goods did rise, I think, on average like $30 million to $40 million. But the overall growth in inventory is no pre-positioning of inventory for this upcoming quarter. You know there is still lot of mobility products to be built and shipped in the early part of this quarter that the sell through into carriers and such like. So that’s the main reason and then, we should see that start to normalize in our second fiscal quarter.

Your next question comes from the line of Craig Hettenbach with Goldman Sachs.

Yeah. Thank you. Tim, can you provide an update on that AMS business in terms of pipeline today and then just also the potential M&A environment and how you’re looking at that business going forward?

The business is growing at about 9%, 10% year-over-year. So the pipeline of opportunity is good there. They’ve extended their business into some very advance logistics and forward logistics capabilities, taking on new business areas and places like the African continent and other areas that are very challenging, very IT intensive and are really stretching their capabilities. We think long-term they will pay -- those efforts will pay really extraordinary dividends. We’re active as always and looking for acquisitions and other opportunities to build capabilities there. But right now their plate is very full with the customers and pipeline of opportunities that they have on an organic basis.

Your next question comes from the line of Brian Alexander with Raymond James.

Hi. Thanks. Good evening guys. So looks like you’re guiding revenue down about 5% sequentially, EPS down about 12%, if I use the midpoint of the guidance. So, could you just talk about the operating margin decline that you’re looking for in the February quarter, 20 basis points or so? How much of that is being driven by the mix shift away from DMS and how much would you attribute to margin declines within some of your segments? And if you can maybe just give us some directional color on margins by segment, that would be helpful? Thanks.

It’s pretty tough to isolate how much of it is just deleveraging on the revenue being down and how much of it is associated by segment because it’s kind of tough to pick apart. It’s really very consistent, if you look back over our history. It’s actually a very low level of seasonality in terms of being 5% down. The last three, four years have been low single to 5% kind of seasonality. It’s a lot less than it’s historically been and the level of income that’s coming out of the model for Q2 is very consistent with deleveraging probably a little bit less than what we’ve seen historically. Historically, we see something on the order of $0.15 to $0.20 on the $1 and in this case, it’s less than that. So, I don’t think it should be surprising from a deleveraging standpoint. Directionally, in terms of margins for the business, I said in the last conference call and I just reiterate that here a little bit. We see that Enterprise & Infrastructure and the High Velocity margins, coalescing in the 3% range notwithstanding the fact that they have different long-term targets at least to the next three to five quarters. I think we’d expect the average of the two to be in the 3% range, maybe a little bit better as we exit that period, but kind of an average at 3%. And I think that in terms of Diversified Manufacturing Services, if you looked forward a few quarters, we should be able to average 6% or a little bit better. So, that would model to something in the mid four’s for the company overall, which we think is a reasonable way to look at it beyond Q2, so looking at Q3, Q4 and maybe Q1 of 2014.

Okay. Just a quick follow-up, Tim, on the -- I didn’t hear you allude to the EPS growth for fiscal ‘13. I think last quarter we talked about 5% to 10% growth. So I don’t know if that’s still something that you’re expecting or if that’s off the table. I think you need to generate about 55% of the year in the second half. So just thought I would check on that? Thanks.

Yeah. I don’t think -- we’re not pulling away from the 5% to 10%, although I’d say based on the fact that the first half of the year is about what we thought it’d be that we probably trend more towards the low-end of that 5% to 10% range.

Got it. Okay. Thanks a lot.

Okay.

Your next question comes from the line of Amitabh Passi with UBS.

Hi. Thank you. Just a couple of questions. Forbes, maybe just an appreciation of why the turnaround or improvement in E&I margins appears to be taking longer. Revenues seem to be holding up relatively well. So I was hoping you could maybe just touch on that? And then for High Velocity, as we move into the February quarter, one of your mobile customers will be ramping. Should we expect operating margin to stay above the 3% range or do you think we could probably see the operating margins in the high two’s?

This is Mark. In regards to the…

Hey, Mark.

How are you doing? In regards to the E&I margins, I actually think we’re on track. We put the team in place from High Velocity and exploiting some of our High Velocity capabilities. So we are in the process of consolidating resources, managing cost containment, driving lowest landed cost solutions, optimizing working capital and improving operational efficiencies. At the same time, taking great care of the customers and providing good customer service. As we had talked about recently on the road, we feel optimistic about getting to the 3% with little wind at our back as far as revenue recovery to the extent we get some type of macro economic recovery that will help that much more.

And then just on the HVS margins as we look at the February quarter?

Yeah. Directionally, as we look into the February quarter, we’ve experienced some weakness in printing and set-top box as we’ve gone through the first quarter. And there seem some similar patterns as we move into Q2 with some seasonal adjustments there, some strength in handset, can’t discuss particular customers plans there, but obviously, we have a customer within High Velocity that clearly looking to launch product sometime during our second fiscal quarter. We’ll see how that plays out. But we have seen some drift down in the margin just as handset content increases within relative scale in our High Velocity. So, depending where those volumes go, so I would say to be consistent to maybe down a little bit, depending on the levels of handset volumes we see sell-through in Q2.

Okay. Thank you.

Your next question comes from the line of Matt Sheerin with Stifel Nicolaus.

Yeah. Thanks. First just quick question on your customer exposure, could you tell us, what if any 10% customers were in the quarter and what that top 10 customers represent as a percentage of sales?

Yeah. We have one 10% customer and that’s in the Diversified Manufacturing Services area in the quarter.

Could you be specific about that number, is it more than 15%?

No. Just we had one 10% customer.

Okay.

And our top 10 customers are pretty consistent actually around about 61%.

Okay. And then on the E&I segment where you continue to see some good growth there relative to the end markets obviously being weak, how much of that is on the new program ramps versus what you are seeing from your customers in terms of end demand? And if you could be specific about the new program ramps or pipeline within that business breaking down into the various segments of that industry?

Yeah. I would just answer that, in general terms, I think that most of what we are seeing on E&I in the early half of fiscal year ‘13 and carrying to the back half of the year wins that we realized mid to end of fiscal year ‘12, the market conditions have been quite tough in that entire sector. The one good thing is we continue to serve some of the best brands whether it would be in storage, networking or telecom. What we are seeing is if there is any uptick the carriers and entities are starting to spend some level of CapEx for network and infrastructure expansion especially around the 4G and the LTE area. But as far as specific program wins or we’d not rather keep it at a general level.

Okay. And just a quick follow up on that, Mark, relative to the pricing environment, we obviously saw the Juniper and Plexus news talk from other EMS guys about a little bit more pricing pressure, obviously a tough market to begin with, are you starting to see some more pricing pressure on these new deals?

I wouldn’t characterize it is as new pricing pressure. We’ve been in that market long time and we are always under pretty intense pricing pressure. So as I alluded to you earlier, we’ve got I think 10 minutes prepared statement called it our High Velocity playbook. What he is alluding to you there is we are taking some of our consumer type High Velocity capabilities again around cost containment and optimizing working capital, and consolidating resources et cetera, et cetera to be hear that, we can not only offer competitive pricing but get reasonable returns and get us to the 3% margin range by the end of the year.

Okay. Great. Thanks.

Your next question comes from the line of Steven Fox with Cross Research.

Thanks. Good afternoon. Two questions, first of all just in terms of new programs. Just sound clear, it doesn’t sound like you were talking about any other new program wins in the last couple months helping this year’s revenue. Have you seen any -- is there anything in highlight in terms of momentum since the last quarter? And then specifically with that could you talk a little bit about your ability to maybe Diversified and Specialized Services away from just one largest customers, you had any success there? And then I have a follow up.

Which segment -- in the first part of your question which segment are you referring too?

Just in general terms -- just any kind of new program commentary just going forward beyond what we’ve already talked about?

Yeah. Little too diverse and dispersed really categorize any major new programs that we’ve won. Some of the areas of our business were actually precluded from talking about new wins. But we feel good about it being growth here. I think, most people would be looking for a topline growth this year. We are off to a really fabulous start. So, in terms of FY ‘13 over FY ‘12 should be a good year. Mark eluded to an Enterprise & Infrastructure at least wins that we are secured in FY ‘12 contributing FY ‘13 revenue. So and Specialized Services, we do have an aftermarket services business there that’s growing, that’s a component of Specialized Services. Our MTG group does have a high level of concentration. Although, we do business with virtually every major mobility company in the world today, so that revenue is little bit more diverse than what maybe people think. It’s expanding into areas -- other areas of consumer electronics, optics and healthcare, which we hope to accelerate in the near future. We, again, within customers it’s always the objective of the company to diversify within each major customer. So, there is a quite a bit of program and product diversity within our MTG group. I think tend -- people tend to think about that is very one-dimensional in terms of product and we participate in a broad range of products over 25, 30 different programs and literally 100’s of different part number. So that stream of value is quite a bit more diverse in terms of product categories and what folks have typically associated with it, so.

Yeah. I appreciate that. That’s very helpful. And then just a quick follow up. Just to be clear, you guys have had some Jabil’s specific issues that have affected the margins over the few quarters. But if I understood the commentary correctly, there is some investments going on in E&I. But generally speaking as we look at the margins for rest of the year we’re basically looking at margins being driven by revenues, quarter-to-quarter changes in revenues or are there other things we should factor in?

Well, for Q2, I think you just have to take it for what it is, its revenue deleveraging and we are still looking at, growth here for Jabil, so that would imply that the second half of the year will be very good from a revenue and margin standpoint at least that’s the way we see it today. And I think we would see some, particularly if we get some tailwind in the Healthcare & Instrumentation, Industrial & Clean Tech areas that stabilize and start to improve a little bit, that the DMS margins might start with the 6 in the second half of the year and between the E&I and High Velocity segments, if we average 3 that would apply operating margins for the company overall in the mid 4’s. By the end of the year based on growth rates, we should see Diversified Manufacturing Services become 50% of our business.

Great. Thank you very much.

Okay.

Your next question comes from the line of Wamsi Mohan with Bank of America.

Yeah. Thank you. Your DMS segment margins improved nicely relative to last quarter. Tim, can you give us some sense of what percent of capacity has been ramped up so far or maybe which inning you are in with the ramps in Specialized Services such that is it like realistic to think that exiting next quarter, the drag from the ongoing ramps will be entirely behind you?

We are in a kind of a continuous state of capacity expansion. Forbes mentioned CapEx trending towards the high end of the $500 million range, which means it will be adding capacity throughout the year. So we are at very high levels of utilization. We will be building additional capacity, not all of which is in Specialized Services but fundamentally the vast majority of it into Diversified Manufacturing Services. So in terms of the drag I think a lot of the interruptions that we highlighted in our Q4 call started to -- started to decline over the course of Q1 and we feel much better about the position in that we are today. I think margins would have been better in DMS, if we had not seen, a fairly significant decline in Clean Tech & Instrumentation business, which is very understandable given the dynamics and particularly when you start thinking about renewable energy and spark demetering, which tend to be government subsidy related. So I think that stabilizes and we start to improve margins in the Healthcare & Industrial areas, but the overall DMS margin picture can improve.

Thanks Tim. And just a follow up, I mean, you mentioned, I think, in your answer to the last question that you could get to 6% DMS margins in the back half? But could you get there even if your levels of revenue at in sort of the Healthcare & Instrumentation and Industrial & Clean Tech you may have levels where they are today? Thanks.

I think that’s possible, I mean, we’ll have to see how things go. We have growth in Healthcare & Industrial, actually it isolate the Healthcare only business, it’s actually very stable and we’re positioned for some growth. And the same is true of the Industrial business. If we isolate Clean Tech from the Industrial area, the Industrial business has been very stable and poised for growth for the balance of the year. So we just kind of need the Instrumentation & Clean Tech areas to be stable. They don’t need to grow. They just need to stop eroding to the extent that they did in the last quarter and then we’ll see the Industrial & Healthcare business grow, and that will be accretive to the overall business.

Okay. Thanks a lot.

Okay.

Your next question comes from the line of Shawn Harrison with Longbow Research.

Hi. Two questions, just a follow up on the capacity, maybe another way to think about it is, how much square footage have you been adding for DMS. I guess over the past 12 months, at the end of this CapEx cycle how much will square footage increase? And then the second question is with the buyback complete, very good prices, are you looking at doing another buyback here during the remainder of the year?

I’m not sure how many square feet we’ve added. It’s enough to accommodate $500 million worth of stuff. I’m not being obtuse on purpose, I really, I just don’t know off hand and I’m not sure that’s a metric that will be valuable in anyway. But we are adding a lot of space. Forbes, you want to address that?

Yeah. We said -- as you say, we’ve completed the stock repurchase. Certainly, at this juncture, no major plans to increase that or look for additional repurchase authorization. We are well-positioned in terms of our cash generation this year. So expect about a $1 billion of cash flow. As we said earlier, we now expect our CapEx to be at the $500 million level. But we want to continue to manage the balance sheet conservatively as we move forward here and make sure we do have liquidity available to continue to invest where we feel it’s appropriate in that, enhancing our capabilities, the acquisition or continued on this, really good organic growth path we’re on.

I guess with the $500 million, does that give you breathing room in terms of utilization within DMS or are you still going to be with kind of running up against it?

No. I think that will, once we deploy, I mean, that would certainly give us, some breathing room, obviously we’re laying down additional square footage, we talked a couple of quarters to go about expansion in Chengdu with up to 2 million square feet. We don’t at this juncture plan on building the full 2 million, but certainly we’d expect perhaps half of that as we exit end of ‘15, excuse me, ‘13. We’ll see how that plays. But there will be some capacity and we’ll review that as we move through the fiscal year as to demand patterns we’re seeing there.

Okay. Thanks so much.

Your next question comes from the line of Jim Suva with Citi.

Thank you. Happy holidays, and congratulation to you and your team at Jabil. When we look at your guidance and well, I’m talking February quarter year-over-year, I was looking at year-over-year kind of remove seasonality. Can you help us understand why EPS is not growing but sales is growing and DMS is a much bigger part of your company? Is it still the yield issues within DMS and if so, when you talk about 5% to 10% EPS growth this year, if my math was correct that would be materially second half ramp, is that correct? And how should we think about how you can get from not year-over-year EPS growth right now, but yet such a big increase in the second half of the year? Then my follow up question which is probably for Forbes, you used the cash, stock buyback you finished it, you did quite a bit looking to hit CapEx up a little bit? But is your plan use for cash number centered around M&A, engineering talent, CapEx, dividend, help us better understand your viewpoint for cash, because you’re looking to be in a quite healthy situation? Thank you. And again happy holidays and congratulations.

Thanks Jim. Yeah. I think, year-over-year when we look at the DMS margins, they are down about 90 basis points that’s, we are not pleased with that, we’d like to see that be in a higher registered in the 6% range for sure at least. A lot of that is investments in AMS and the aforementioned headwinds that we are seeing in the Clean Tech & Instrumentation area, our Specialized Services area is actually doing relatively well year-over-year. So, and again, I think, we’ll see marginal improvement in that area in the second half of the year. So, and I think, we’re really pleased with the 50 basis point improvement in that area quarter-on-quarter. Our targeted range is 5.5% to 7% and we’re at 5.8% and a little bit better improvement and we’ll see 6% again.

In terms of the cash flow, Jim, I think you hit the nail in the head there, we’re in a really strong position from a cash flow generation perspective and as I said to previous comments, our main focus with our cash generation is to ensure liquidity to focus on what has been some -- in this macro economic backdrop impressive growth organically. And also from an engineering talent perspective, from an acquisition perspective should we see we need to further expand our capabilities or enhance the revenue stream. So that’s our key focus. We are committed to our dividend as it is today and we will see how the balance of the year goes in terms of our cash generation. But we feel really good about the position we are in.

Your next question comes from the line of Sean Hannan with Needham & Company.

Yeah. Thank you. Good evening.

Hi.

Quick question around, there have been a number of comments out there about reduced orders at your biggest customer and really based on bottlenecks within the supply chain. I haven’t really heard that addressed or referenced too much during the call and I wanted to see if we could get a perspective around that?

There is no way that we could talk about supply chain bottlenecks or anything to do with any individual customer’s business.

Okay. Well looks like we’ll moves to the second question. All right. So when you think about your new business, is there a way Tim or Mark, if you could provide an overview of how you are looking at the ramps on the horizon this year. Perhaps where you feel a little bit more confident in realizing the intended scale and timing of programs maybe you have rolled up at a segment level versus where there may be modifications on the state of the macro environment? Are there some areas being affected a little bit more so than others? Thanks.

I think in terms of weakness for the last couple of quarters, and I think in terms of the present tense, any business area that relies on business spending, capital spending and government spending has been really weak and really over the last four, five months of the year, we can even further. So, I think in terms of business confidence, we need to see that turnaround a little bit so that, those capital spending areas can improve. Now, that said, we feel like we have line of sight to adequate Enterprise & Infrastructure growth for the year even in the poor spending environment. So we actually feel good about that. In the High Velocity area, there has been some weakness as Forbes outlined in set-top boxes and printers. There is really not much to make us believe that there will be any type of robust recovery in those business areas anytime soon. Our mobility business on the other hand is -- looks like that could trend upwards over the course of the year. So, I guess, we’re cautiously optimistic about that element. In Diversified Manufacturing Services, as I said the Industrial and the Healthcare areas are relatively stable, and we do have a pipeline of opportunity that could supply -- not spectacularly growth, but growth. And if we see the Clean Tech & Instrumentation level out improve a little bit that would really contribute to a better margin picture in the DMS area. In Aftermarket Services, they are in the midst of ramping some very large, very complex customers. If those customers are successfully ramped over the course of the next quarter or two, I think that can contribute to much better earnings and margin performance in the second half of the year. And then in the Materials Technology Group, we think that will be another good year of growth.

Thanks very much.

Okay.

Your next question comes from the line of Sherri Scribner with Deutsche Bank.

Hi. Thanks. I just wanted to dig a little bit into the DMS segment, the guidance was for up 7% year-over-year. And I think your long-term guidance is for 15%. I think that suggest you’re going to need to see some improvement in the back half. Just trying to understand what the puts and takes are in that 7% being below your expectations and should we assume you’ll see some improvement in the back half in that segment?

Yeah. I’d say that you’re applying a long-term target to a single quarter and a seasonally down quarter at that. It was up 20% in the first quarter. So I think when we look back at this time next year, we’ll easily see a 15% growth rate for the year, so not filled with much concern there. This is with the growth in Specialized Services in that business, Sherri, that’s going to be a little bit more seasonal than maybe it has been historically, if that part of the business increases as a percentage of the total DMS area. So still feel very good about the 15% year-over-year growth.

Okay. Great. And then just a technical question for Forbes, I think the share count guidance for the second quarter was flat q-over-q, but you guys did a lot of buybacks in the first quarter. Was that first quarter buyback weighted to the beginning of the quarter or should we expect share count to be maybe even a little bit lower than the 208? Thanks.

Yeah. It was predominately weighted to early on in the quarter, Sherri. We do have the issuance of some equity, typical period of equity issuance late in October of each year. So we will have the full effect of that issuance offsetting some of that buyback in the second fiscal quarter.

Great. Thank you.

Welcome.

Operator…

We have reached our allotted time for questions. I would now like to turn the conference back over to the presenters for any closing remarks.

Okay. Great. Thank you very much everyone for your participation on the call today. We will be available through the balance of the week for any follow-up questions you might have on the quarter. And I might just also note that Tim Main will be our guest on Mad Money tomorrow afternoon somewhere around 5 o’clock. Thank you very much.

Thank you for participating in today’s conference. You may now disconnect.