“Our expectation is still by the end of the year to get to breakeven free cash flow. There’s no reason why we shouldn’t achieve that.”

In context

“the working capital front. I think previously, you said your expectation is that free cash flow would turn positive sometime in second half. Just curious if that’s still the expectation. And also, on the gross margin front, is there any, I guess, PRQ charges that we should be aware of as we go into fourth quarter? David Zinsner: Okay. So, let me just take a moment just to give the team credit on the second quarter in terms of working capital because we brought inventory down by $1 billion. Our days sales outstanding on the AR front is down to 24 days, which is exceptional. So, a lot of what you saw in terms of the improving free cash flow from Q1 to Q2 was working capital. So, I think the team has done an outstanding job just really focusing on all the elements that drive free cash flow. Our expectation is still by the end of the year to get to breakeven free cash flow. There’s no reason why we shouldn’t achieve that. Obviously, the net CapEx might be a little different this year than we thought coming into the year. But as we talked about, there’s just a focus on free cash flow, the improved outlook in terms of the business. We think we can get to breakeven by the end of the year. As it relates to pre-PRQ reserves in the fourth quarter, we’re likely to have some, but it should be a pretty good quarter-over-quarter improvement from the third quarter, which was obviously a good quarter-over-quarter improvement from the second quarter. John Pitzer: Srini, thanks for the questions. Jonathan, I think we have time for one last caller, please. Operator: Certainly. And our final question for today then comes from the line of Aaron Rakers from Wells Fargo. Aaron Rakers: And I do have a quick follow-up as well.”