“We're partnering closely with our key suppliers, leveraging our volume purchasing and extended supply commitments as we address the supply challenges and cost impacts which we expect will continue into the second half of fiscal 2022.”

In context

“, and public sector was up 10%. As you can see, it was broad strength across the business. From a non-GAAP perspective, total gross margins came in at 64.5%, down 130 basis points year-over-year. Product gross margin was 63.8%, down 150 basis points. And service gross margin was 66.5%, down 60 basis points. The decrease in product gross margin was primarily driven by higher costs from freight, expedite, and increased component costs related to the supply constraints. Pricing impact was relatively moderate and consistent with prior quarters, partially offset by positive product mix. We continue to manage through the supply constraints seen industry-wide by us and our peers due to component shortages, which have resulted in extended lead times and higher costs for many of these components. We're partnering closely with our key suppliers, leveraging our volume purchasing and extended supply commitments as we address the supply challenges and cost impacts which we expect will continue into the second half of fiscal 2022. Our supply chain team continues to perform well at this very complex situation. We believe we're taking the right strategic actions with our suppliers and contract manufacturers to ensure we meet customer demand despite the potential risks associated with increasing our inventory and purchase commitments. When we look at the impact of acquisitions on our Q1 results, there was an approximate 250 basis point positive impact on revenue and no material impact on our non-GAAP EPS, which is in line with our expectations. Operating cash flow for the quarter was $3.4 billion, down 16% year-over-year, driven by higher supplier-related payments and timing of other payments and collections. We ended Q1 with total cash, cash equivalents, and investments of $23.3 billion, down approximately $1.2 bill”