“I think overall product gross margins will remain stable in that mid-70s range that you've seen historically.”

In context

“Tim Adams (CFO): I think overall product gross margins will remain stable in that mid-70s range that you've seen historically. The managed service does come in at a lower gross margin due to the nature of the business. There's a labor component. We do a lot of work around introducing AI to drive more efficiencies. We talked about the innovation center and the SOC over in India. That also gives us the opportunity to drive some efficiencies. But if you look at overall gross margin from a mix standpoint, the managed service gives you a little bit of a headwind because of the lower gross margin. But we think we have a tailwind based on some of the AI and efficiencies that we can drive over time. But overall, when you look at product gross margin, mid-70s should remain stable.”