“And then you -- what you're probably missing is the net of other income and expense and interest expense that's going to be unfavorable, about $20 million as we have lower cash levels, interest is lower while debt interest expense has continued to increase.”

In context

“n: You have a follow-up, Stacy? Stacy Aaron Rasgon: I do. Maybe just a follow-up. Actually, I think I want to ask you about gross margins. We'll go there. If I just back into the guidance for next quarter, it seems like you're guiding gross margins probably down sequentially implicitly on revenue growth. I guess is that the case. And like what is that. Is that just depreciation, I know depreciation went up in the quarter. Is it just depreciation going up further? Or is something else going on in the gross margin line or what? Rafael R. Lizardi: Yes, Stacy, I'll take that. So to help you and everyone with their models, where you should be landing, given our guidance is GPM percent above flat despite the higher depreciation that we're going to have going into third quarter. OpEx above flat. And then you -- what you're probably missing is the net of other income and expense and interest expense that's going to be unfavorable, about $20 million as we have lower cash levels, interest is lower while debt interest expense has continued to increase. So that's the part that's probably missing to round out your model. Operator: Our next question comes from the line of Harlan Sur with JPMorgan. Harlan L. Sur: One of the signs of cyclical recovery is improvement in your terms business. Did the team see terms business grow sequentially in Q2, both in dollars and percent of revenues? And was it broad-based across both your industrial and auto businesses? Haviv Ilan: Yes. Let me start, and maybe, Mike, you can comment right after. So I think, yes, from a terms perspective, we see a continuation of that dynamic. We saw again, acceleration in the second quarter. Our -- we continue to invest in inventory. Our lead times are at the lowest level, customer inventories are very low. So we've seen that continuing. And Mike, maybe you want to provid”