Good day, everyone and welcome to Microchip’s Third Quarter Fiscal 2022 Financial Results. As a reminder, today’s call is being recorded. At this time, I’d like to turn the call over to Microchip’s Chief Financial Officer, Mr. Eric Bjornholt. Please go ahead, sir.

Thank you and good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to our press releases of today as well as our recent filings with the SEC that identify important risk factors that may impact Microchip’s business and results of operations. In attendance with me today are Ganesh Moorthy, Microchip’s President and CEO; Steve Sanghi, Microchip’s Executive Chair; and Sajid Daudi, Microchip’s Head of Investor Relations. I will comment on our third quarter fiscal year 2022 financial performance, Ganesh will then provide commentary on our results and discuss the current business environment as well as our guidance, and Steve will provide an update on our cash return strategy. We will then be available to respond to specific investor and analyst questions. We are including information in our press release and this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page for our website at www.microchip.com and included reconciliation information in our press release, which we believe you will find useful when comparing GAAP and non-GAAP results. We have also posted a summary of our outstanding debt and leverage metrics on our website. I will now go through some of the operating results, including net sales, gross margin and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis, which is based on expenses prior to the effects of our acquisition activities, share-based compensation and certain other adjustments as described in our press release. Net sales in the…

Great. Thank you, Eric and good afternoon everyone. Our December quarter results continued the strength of strong growth quarters, with revenue growing 6.5% sequentially to achieve another all-time record at $1.76 billion, breaking through the $7 billion annualized revenue milestone. On a year-over-year basis, our December quarter revenue was up 30%, registering the fifth consecutive quarter of rising year-over-year revenue growth rate. Non-GAAP gross margin was another record at 66.1%, up 80 basis points from 65.3% in the September quarter and above the midpoint of our guidance as we continue to ramp our internal factories and benefit from improved fixed cost absorption as well as product mix changes. Non-GAAP operating margin was also a record at 44.6%, up 210 basis points from 42.5% in the September quarter and well above the high-end of our guidance. The large increase in operating margin percentage was helped by the rapid growth in revenue and the additional time it is taking to hire new employees, thus delaying expected operating expenses. At 21.5% operating expenses, we are 100 basis points below the low end of our long-term model of 22.5% to 23.5% in operating expenses. Our long-term business model will continue to guide our actions to enable the long-term growth and profitability of our business. Our consolidated non-GAAP diluted EPS was a record $1.20 per share at the high end of our guidance and up 49% from the year ago quarter. Adjusted EBITDA at 49.5% of revenue and free cash flow at 43.4% of revenue were both very strong, continuing to demonstrate the robust cash generation capabilities of our business. This in turn enabled us to pay down another $362.7 million in debt. It’s brought down our net debt by $422.1 million, driving our net leverage ratio down to 2.58% in the December quarter. This…

Thank you, Ganesh, and good afternoon, everyone. Today, I would like to reflect on our financial results announced today and provide you further updates on our capital return strategy. Reflecting on our financial results, I continue to be very proud of all employees of Microchip that have delivered another exceptional quarter in making new records in many respects, namely record net sales, record non-GAAP gross margin percentage, record non-GAAP operating margin percentage, record non-GAAP EPS and record cash flow from operations and record adjusted EBITDA. The Board of Directors announced an increase in the dividend of 9.1% from last quarter to $0.253 per share. This is an increase of 29.7% from a year ago quarter. Last quarter, we received an investment-grade rating from both Moody’s and Fitch. After receiving such rating, we initiated our enhanced capital return strategy that we described at our Investor and Analyst Day on November 8, 2021. During the last quarter, we purchased $166 million of our stock in the open market. We also paid out $129 million in dividends. Thus, the total cash return totaled $295 million. This was 50.1% of our free cash flow projection at the start of the quarter of $589 million, consistent with us targeting 50% of free cash flow as a return to our investors. However, our cash collections in the final month of the quarter were exceptional due to a very strong and linear shipping quarter and record non-GAAP gross and operating margins and record adjusted EBITDA being well above our forecast. Our actual free cash flow last quarter was $763 million, which was $174 million higher than our projection. Towards the end of the quarter, the stock buyback window had already closed. So we use the extra free cash flow towards further paying down the debt. This extra…

Thank you. We will take our first question from John Pitzer with Credit Suisse.

Yes. Good afternoon, guys. Thanks for let me ask question. Just relative to the supply issues that you’re seeing in the March quarter, any way to quantify that? And as you think about the balance of the year, do you have enough visibility of backlog and scheduled supply growth to make the argument that you should be able to grow sequentially every quarter in the calendar year ‘22?

So the supply issues in the March quarter are comprehended in our guidance. And so there is nothing more to say other than we are working through it. There are just natural issues that come with COVID and some of the disruptions that happened with it. Our backlog position, as I mentioned, is extremely strong. We have much of 2022 backlog already on the books. And really, it’s bringing supply on that we expect will continue to drive the growth. There is no shortage of demand that we’re working on. And every quarter, we continue to leave more of the backlog that is unsupported has happened five quarters in a row. So if you look at the size of the imbalance, the size of the non-cancelable backlog, the rate at which we’re bringing on new capacity, we expect we’re going to be constrained throughout 2022.

Thank you.

Thank you. We will take our next question from Pradeep Ramani with UBS.

Hi, thanks for taking my question. I just wanted to sort of follow-up on the prior question. In the past, you talked about visibility being solid for four quarters of sequential growth. How do we interpret your comments that you just made in terms of whether you have that visibility now, both in terms of demand and supply?

We have visibility in terms of demand that exceeds four quarters. We have supply coming on every single quarter. We’re trying to guide you a quarter at a time. But at this point, there is no demand signal that has any concern for us. The PSP backlog makes it all non-cancelable. It’s a very high percentage of our backlog. Some of the PSP backlog is going well beyond 12 months at this point in time. So it’s really a supply-driven equation for at least all of 2022 and likely into 2023.

Thank you.

Thank you. We will take our next question from Gary Mobley with Wells Fargo Securities. Gary, we are unable to hear you. Please check your mute function.

Thanks for taking my question, guys. As your unsupported backlog continues to grow each and every quarter, I’m presuming that you’re having to make tough decisions with respect to supporting perhaps or not supporting some lower-margin products in the strategy for maximizing the mix and whatnot. Longer term, does that deferred product shipment going to backlog? Is it temporarily or permanently lost? What sort of – what are the sort of the long-term considerations in terms of mix contribution from the supply constrained environment that we’re in?

Well, a constrained environment clearly gives us an opportunity to richen the mix and use the capacity we have. But you can’t just be short-term oriented in that. You have to look at who the customers are, what markets they are in, what the long-term prospects are that go with them. As demand goes unfulfilled in any quarter, it remains, for the most part, non-cancelable backlog. Anything in 90 days with or without PSP is already non-cancelable. And what we do is we just squeeze out some into the following quarters, some into the quarter after that. Capacity is coming on, and we’re able to respond to some of it with that. And they could be on the fringes, some of the demand that eventually does not materialize. But the vast majority of the backlog stays as non-cancelable backlog but serviced at a later point in time.

And the biggest decision maker now in terms of what we’re shipping is based on the PSP backlog that we’ve had in place and how long it’s been in place.

Yes. I think your question was more like are we not shipping a low-margin backlog, and when we eventually ship is that a negative to gross margin. I think operations don’t know what the gross margin is. They look at units and backlog in dollars and they ship and allocate. So there is a much lower level of emphasis to not ship the low-margin backlog. It’s much more to do with who the customer is, what the market segment is, who the strategic accounts are we’re shipping the PSP backlog and constraining the non-PSP backlog. So I think your concern is really not well placed there.

Alright. Thank you, Steve.

Thank you. We will hear next from Toshiya Hari with Goldman Sachs.

Hi, thank you so much for taking my question. I wanted to get your thoughts on industry supply/demand. Clearly, as of today and as you guys say, for the rest of the year, things most likely stay very tight. At the same time, you’re seeing pretty significant increases in CapEx from most players, including yourselves, your peers with capacity coming online late ‘22 and definitely into ‘23. Is it way too early to be concerned about supply/demand going into ‘23? Or how do you think about that internally? And what would you need to see for you to kind of pump the brakes on CapEx decisions? Thank you.

After five quarters and now into the sixth quarter, there is really no line of sight to having demand/supply coming back into some form of equilibrium. So we continue to – the gap between demand and supply, despite adding supply continues to grow. We know that’s not a permanent factor, but it is at this point in time. Demand continues to be strong. Every customer I speak to, every CEO that expresses their needs continues to see strength in their business. It’s, in fact, many, many of them wanting to go into something more of non-cancelable nature into ‘23, in many cases, into ‘24 as they see their business. So there are many, many factors driving semiconductor growth beyond the short-term supply/demand. There are secular factors that we’ve talked about with the megatrends, with how digitization is taking place. At some point, it will have a supply/demand balance that does occur. We don’t see it in ‘22. We don’t see it in our numbers that we see for ‘23 at this point.

Thank you.

You are welcome.

Thank you. We will take our next question from Vivek Arya with Bank of America Securities.

Thanks for taking my question. So Ganesh, I wanted to ask the supply-demand question in a different way. Can you increase supply every quarter for the next three or four quarters, obviously, barring any macro issues? Because if you can increase supply and demand, it’s not an issue, then growing sales every quarter should be doable, right or what part of that equation, right, am I missing?

We are absolutely increasing capacity every single quarter. You’re not missing any part of that equation.

Got it. So that’s what I wanted to confirm because I thought there was some confusion that – are you still sticking with the potential for improving revenue every quarter, all else being equal?

We’re driving in that direction. We’ve got plenty of demand. The demand side is not the issue, capacity is. We are building capacity that will continue to grow throughout 2022 and into 2023. We’re trying to provide you more general direction of where are we going without trying to make this every quarter what are we trying to do. Clearly, the guidance we’re providing specifically is for this quarter. But the demand-supply equation, driven by the demand we have, the supply we are bringing on, continues to have many quarters of legs.

Got it. Thank you, Ganesh.

Thank you. We will take our next question from Harlan Sur with JPMorgan.

Good afternoon and congratulations on the solid results and execution. Over the past earnings season, all three of the large U.S. based semi equipment suppliers have been coming up a bit short on shipments to their customers because they are being constrained by component availability, logistics and labor issues, and well, and they all expect to slightly under shift their customers’ manufacturing requirements, at least through the first half of this year. So I’m wondering if this is maybe slowing your ability to improve your internal front-end wafer capacity or even capacity plans by your outsourced wafer fab partners maybe just a little bit versus what you expected, maybe 60, 90 days ago?

So it is true that equipment in general, and we’ve been saying this on prior calls as well, lead times have been stretching. Some part of that is just the equipment manufacturers’ imbalance between supply and demand. Some of it is semiconductor shortages that feed into the equipment that is built for semiconductor manufacturers. So yes, our lead times for receiving equipment have continued to stretch.

Thanks, Ganesh.

You are welcome.

Thank you. We will take our next question from Harsh Kumar with Piper Sandler.

Hi, guys. A lot of people have asked about supply. I wanted to ask a question about demand. So this is the fifth or the sixth quarter, Steve and Ganesh, have exceptional demand. I understand at the beginning of the over time frame, there was some particular mismatch. But can you help us understand what is fundamentally going on with the end markets that this demand continues to strengthen? And now you are looking at a year’s worth of – years plus worth of non-cancelable orders, so help us with that, if you don’t mind?

So demand in all geographies, in all end markets, continues to be strong. And I think they are driven by different requirements and at different times, right? If you take automotive, some of it was shortages. And then as they have tried to solve some of the shortages as content and there is a richening mix of the cars that is driving consumption of semiconductors. You take office automation. There was the return to – the work from home at first and now there is some amount of returning to the office and what needs to be done. So segment by segment by segment when you go into that, what we find is that the demand drivers, some of those or the mega trends we have talked about, some of that is still catch-up demand that people are trying to put in place. Demand continues to be extremely strong as reflected in the bookings we see, the backlog we have the period of time over which people are willing to place backlog and the percentage that they are willing to have is non-cancelable.

Appreciate it, guys. Thanks.

Thank you. We will hear next from Tore Svanberg with Stifel.

Yes. Thank you and congratulations on the results. One of your competitors just had a call this morning, and they are talking about some pretty big CapEx numbers, basically regardless of the economic climate. I’m just wondering, philosophically, as you think about your capacity additions over the next few years, it does sound like the plans are a bit more measured. And then also the other CapEx number for fiscal ‘23. Thank you.

So we don’t have a CapEx for fiscal ‘23, if that was your question. We will share some of that when we have a May call itself. CapEx decisions are long-term decisions. They are not driven by just what does the next calendar year look like. It’s decisions about capacity that we want to be able to serve a 5, 10-year window of time as we look at it. And so perhaps, we have been more measured, and we do want to be thoughtful in what capacity and what capital are we bringing online, but we have also been aggressive over the last year. As you have seen in the level of capital expenses that we have put in, in the raising of the CapEx targets that we have had into capacity that we believe is long-term good capacity for Microchip to have both to be able to serve customers, but also to be able to replenish some of the inventory we think we need to as some level of normalization in demand and supply come about.

Thank you.

As Ganesh said, we’re not going to give you a fiscal ‘23 capital plan today. We will put that together as part of our annual operating plan process we go through this quarter. But I think investors should expect that given the environment that we are seeing, our intention to increase the percentage of manufacturing that we do internally, that CapEx will continue to be kind of on the high end of our guidance that we have given on a long-term basis next year, and we will give you a more firm number next quarter.

Okay. Thank you.

Thank you. We will hear next from William Stein with Truist Securities.

Great. Thanks for taking my question. I will add my congratulations to the very strong execution. There is a comment in the press release that I don’t know if you have touched on during this discussion, I don’t quite understand. I certainly understand we are capacity constrained. Microchip is, the whole industry is, demand is very strong. Revenue is going up next quarter. I think the press release noted that inventory days you expect to increase next quarter. Is that for – are you building demand for product that has building inventory for product that has demand in future quarters, that’s just happened to not be required to be delivered during Q1, or is it WIP versus finished goods? Can you help me understand that? Thank you.

Yes. I mean we are ramping our factories. We are seeing input costs increase to the supply chain and all those things are impacting our costs. And we demonstrated in our Analyst and Investor Day that we want to increase the days of inventory in the balance sheet to be able to better support customers. So raw materials, work in process is absolutely going up. Input costs continue to rise. And we are positioning ourselves to be able to continue to grow the business, as Ganesh has described before.

If we can build it, we are shipping it. So, we are not trying to build inventory and hold shipments back. Clearly, there is more WIP, work in progress. There is more materials that we are going to need. We are in a growing environment. So, what we have to have internally is to be able to feed forward-looking demand, not just backward-looking demand.

Right. And also, as I mentioned in kind of my prepared remarks is as gross margin improves, that essentially increases the days of inventory on the balance sheet. It’s just the way the math works there.

Yes. I understand. Great. Thanks guys.

Thank you. We will take our next question from Chris Danely with Citi.

Hi. Thanks guys. So, sequential revenue growth is slowing down a little bit easy that there is some Omicron issues and other hiring issues. Assuming that gets fixed in the March quarter, does that mean that revenue growth should accelerate in the June quarter? And will you be able to start to catch up and maybe try and reduce this unsupported backlog, if that happens?

So Chris, the limitation is not on the demand side. It’s on the supply side. We are working on heck to address the supply constraints. COVID was an extra factor that we had not built into our plans. Obviously, no one knew about it until the December timeframe. We will hopefully clear through some of that going through this quarter. But there are also challenges on. Earlier on, we talked about getting equipment in on time has been a challenge. Hiring people has been a challenge. So, we are running like heck. We expect that the June quarter will have more favorable capabilities barring any unknowns in terms of where we might go.

Okay. Thanks Ganesh.

You’re welcome.

Thank you. We will hear next from Chris Caso with Raymond James.

Yes. Thank you. My question is on pricing. And I know as input costs were rising last year, you were quick to pass along those price increases. I guess well, just three sub questions to that. One, do you believe that the price – the input price increases have – are behind us now, or is there potential for those to go higher as the year goes on? Are those price increases now fully baked into the quarterly results now that you are guiding for the March quarter? And then at what point do we start to kind of anniversary these price increases? And I am guessing you are not going to want to give us the magnitude of how much pricing has gone up. But at kind of what point does is that no longer a factor in year-on-year comps?

So, let me try and parse your three questions and see how best to answer it. So firstly, input prices for us, our costs continue to go up. They are happening from different suppliers at different points in time with different magnitude. So, what you see reflected in our COGS, our days of inventory and all that is in fact, an aggregation of what is taking place every quarter. But our costs are going up and will continue to go up as we go through the year as that our structured cost increases built into 2022. For pricing, we have done them at specific points to try and not have a price increase every time there is a cost increase on us. That will also continue at some – as we collect cost increases that we have incurred and pass them on as price increases to a customer. Our intention is to be able to make sure that we are able to cover the increase that we have taken on. It’s hard to know in the current environment when does adjustment mechanisms that we have stopped. It’s an inflationary environment. We know that our suppliers are facing that inflation. They are passing on that inflation to us. There are large capital costs that they have incurred, the large capital costs we are incurring that are building into the cost structure. The labor costs have gone up quite significantly. The material costs have gone up quite significantly. And that hasn’t stemmed as of yet. And I don’t know if a year from now, we might be in better times from an inflationary standpoint. But as long as that inflation is there and cost increases are passed on to us, we will pass them on as price increases.

Great. That’s all. Thank you.

Alright. Thanks Chris.

We will hear next from Joe Moore with Morgan Stanley.

Great. Thank you. I wonder if you could talk about your customer level of inventory. I know we are dealing with the shortage situations, but it seems like in the past, we get into incomplete kitting where maybe you have inventory of other people’s components waiting for yours. Do you have any sense for that? And are you the bottleneck component in enough of these cases that you feel pretty confident that the inventory is as lean as it looks?

So, we get inventory visibility through our channel, because they report that on a regular basis to us. To our OEM customers, we really don’t get – they don’t report to us. We might be able to look through their balance sheets as they report them and see what happen. But it’s really not specific to us. The intensity of customer escalations has not really backed off. Every single day, I am involved in half a dozen or more personally, which means that the rest of the company has an order or two magnitudes higher than that that are involved. And those are all the places where something that Microchip provides them is holding up that customer’s ability to complete what they are doing. Now we are, of course, aware of this, what has been termed the Golden Screw syndrome, where customers may be building inventory on product, they can get shipments off while they await shipments of the product that they need to complete the bill of materials. It’s reasonable to assume there is some part of that, that would apply to us as well. But given our 90-day non-cancelable terms for standard backlog at a minimum of 12 months of non-cancelable for PSP backlog, we believe there are significant disincentives for our customers to order meaningfully more than what they need.

Great. Thank you very much.

You’re welcome.

Thank you. We will take our next question from Ambrish Srivastava with BMO.

Hi. Thank you. Ganesh, I had a question on OpEx. You mentioned that you are below the long-term target range of 22.5% to 23.5%. Should we expect OpEx then to catch up to the lower end, at least to the lower end of that range as we go through the next few quarters?

It will go slowly. You can see we tapped it up in this quarter. Eric, maybe you want to talk a little bit more about kind of how the rate at which we would do that?

Yes. I think it’s very much dependent on our hiring success, right. I mean we are challenged in getting the labor that we need throughout the company. It’s just the market right now, and we are working hard with our HR teams to make that happen. So, I think it’s going to be a gradual increase, but the way we want you modeling long-term is within our long-term model, which is 22.5% to 23.5%, and we are below that this quarter.

And there is wage inflation as well, which is higher than historical and we expect that will continue for some time.

Thank you.

Thank you. We will hear our next question from Christopher Rolland with SIG.

Hey guys. Thanks for the question. And one for Ganesh or Steve. So, we are coming off of the TI update, and they are going to have somewhere between five to eight 300-millimeter fabs, which is pretty unbelievable. But do you guys were – and they are not the only adding 300-millimeter fabs. So, do you guys worry about a flood of kind of super efficient analog and embedded product hitting the market eventually here, I guess, first of all. And secondly, does this change your thinking about getting your own 300-millimeter fab to compete? Thanks.

If you look over time, I mean capacity has come on at different points in the industry. At this point in time, we are not feeling a particular concern about 12-inch capacity and what it might do to our analog business. We do build some analog products through our foundry partners at our own 12-inch. A 12-inch fab at some point might be in Microchip’s future. It isn’t one that we are looking at today. And we will just have to evaluate where the situation is and what makes sense. But today, we are focused on the technologies that we build in-house, the work that we are doing to ensure that, that trailing-edge technology, which is really a limitation, not just in our growth, but actually part of the industry’s growth. There is not enough investment going in to those product lines that limit large end equipment. And we want to make sure that we have our capacity well lined up to participate in that growth and help our customers as well. Do you want to add anything else Steve?

I would just add that based on what we know, the number of fabs being added by the company that you named, there is going to be a period of substantial underutilization and substantial underperformance and a significant headwind to the gross margin delivered by all that cost that they have to absorb. So, I think you are talking about very low cost capacity. I think I look at it just the opposite. I think there is going to be a significant cost problem for them. And not having all that 12-inch capacity, we are making enormous gross margins. Our operating margins are higher than our long-term target almost already, right?

It’s getting close to it.

Yes, getting close to it. And we continue to make further improvements with bringing test inside. The technology we licensed last quarter, which we will be producing inside. So, we got plenty of buttons on ourselves to push, and I am really not concerned about somebody else’s capacity coming in. I recently learned of a report that there is $150 billion of investment that would be required to bring the trailing edge capacity online for the next 5 years. The capacity is that much short on the trailing edge. Why, because no foundry is putting additional trailing edge capacity. They are only putting leading edge. So trailing, it has to be done by whoever. And given that, there is not $150 billion of capital being put into trailing edge technology in the coming 5 years. So, I think I see this capacity to be short as far as we always can see right now.

Thanks Steve.

Thank you. We will take our next question from Nik Todorov with Longbow Research.

Yes. Thanks for giving the opportunity to ask the question. I have a little bit more philosophical question. How would you characterize the level of trust in the supply chain between suppliers, customers, the channel? Do you think there has been damage sustained? And given all the disruptions and what kind of impact is that potentially having?

Trust is built over many, many years. It isn’t something that you either gain or lose in the course of a short period of time, which is what I would refer to the last 6 months, 12 months as. And trust is a function of communication, managing expectations, treating each other with respect. And all of those are consistent with how we work with our customers and we work with our suppliers and what we do. So no, I don’t think trust has been a thing. I think there is clearly stress points. People are looking to grow more. We are looking to grow more. We want more. Our customers are looking to grow more, they want more. But there is a realistic sense that we are doing the best that we can within the constraints that we have, just as our suppliers are working as best as they can within the constraints that they have. And we both share some responsibility in how we manage the path going forward. But so I don’t see any trust issues on either the customers side or the suppliers side that’s an issue.

Well, it’s also a relative equation. If we were not shipping everything a customer needs, but they were getting all the products from our competitors whenever they are designed with our competitors, then it would be a problem, a bigger problem for us and losing trust because we are letting them down more than anybody else. But that’s not the case. It’s actually just the obvious opposite. Customer-after-customer, we are being told that despite the constraints, we have enabled their success in the last year, 2 years, more than the others have. Our constraints are – there are many competitors who won’t even take an escalation call. They would say, don’t bother us. There is nothing we can do. That’s all we can give you. And at Microchip, we are on numerous calls all day, every day of the week, and taking customers call, explaining them the situation, improving where we can, but giving shoulders – giving a shoulder to cry on for the customers. And that empathy is helpful. So, I think in general, we are building trust relative to our competitors in destroying trust.

Thanks guys.

Thank you. We will take our final question from Harsh Kumar with Piper Sandler.

Yes. Hey guys. A tactical one here. Ganesh, I believe when you gave the commentary you may not have provided any color on how you expect these segments to perform in the March quarter. I was curious if you would take a second to just kind of give us whatever what’s the vision you can and how you expect the microcontroller analog business to perform in March?

So, we don’t break out our product line for each quarter in terms of the guidance. They all work together on it. Right now, all of them are supply limited. All end markets are supply limited. It’s really how effectively we can bring capacity on, fight through some of the COVID issues and all of that. And the demand is there in all product lines, all end markets for what we need to do. And for the – for at least many more quarters, that’s really what determines what the strength is as seen in the product line or in an end market.

I think it’s probably helpful to look at that had a few quarters last calendar year where microcontroller analog outperformed each other. But overall, for the year, Ganesh gave year-over-year numbers. They really performed right in line with each other as the growth.

It’s exactly the same.

Got it. Okay. Fair enough. Thanks guys. I appreciate it. Congrats.

Thank you.

Thank you. And that does conclude today’s question-and-answer session. I would like to turn the conference back over to Mr. Moorthy for any additional or closing remarks.

Well, thank you, everybody, for attending. We do have meetings and conferences and all that coming up in the next several weeks, and we look forward to speaking to you at soon. So, thank you. Good afternoon.

Thank you. And that does conclude today’s conference. We do thank you all for your participation. You may now disconnect.