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Automotive Revs Up M&A
Jim Suva – Citigroup: Congratulations there to you and your team at Amphenol for just absolutely great results, especially considering the macro environment. Adam and Diana, can you talk a little bit about on the M&A side, it looks like your last year acquisitions have been focused on the automotive industry which traditionally has not been as big of a focus for the Company, and I think right now my math is correct, it’s around 11% at Amphenol. The outlook for this, do you see this growing to be a more material part of Amphenol going forward, and could it eventually be a quarter of the Company or something like that? Then in the same vein of Amphenol and automotive, one has to be conscious of many of the other automotive connector and supplier companies don’t generate the profitability that Amphenol does, yet, you continue to post industry high profitability. Can you help us understand, if the profitability of automotive below your sector average at your company average and why would you be outreaching all those other ones competitors?
A Closer Look: Amphenol Earnings Cheat Sheet>>
R. Adam Norwitt – President and CEO: Jim, that is a lot of questions in one and I will see if I can remember them well. I think your question started off to say, you know we have made some automotive acquisitions yes it’s true, we have made several – obviously the acquisition of Nelson-Dunn was very different. That was in the industrial oil and gas market, but we’re very pleased with the acquisitions that we’ve made. And if we go back and look at the evolution of our automotive business, it has been always our strategy and it is today to participate in those areas of the automotive market where we can create the value with our customers thereby allowed us to realize the returns that we expect for Amphenol. That strategy has not changed by one iota through these acquisitions. What has changed though in that time period, is there has been a real revolution of electronics in the car driving new applications, new functionalities whereby the Amphenol technology offering allows us to create value for those customer and thereby to realize the return that we expect. The returns in our automotive business, we don’t talk about what they are by each market, but certainly, they are very strong and we are very proud of those returns. If we look in a car today, a car in my mind has essentially become a host for new electronic features, and whatever those features maybe whether that’s onboard electronics in the cockpit, whether that is new engine control, whether that is new transmission controls, whether that is hybrid electronics drives that go into cars, what is common with all these new applications that we’re participating in, and what is common with the acquisitions that we have made to that end is that these are new functionalities where the Interconnect Products have a more challenging technology to them, and thereby there is more value to be created with the customers. So, this is a very consistent strategy. I think we have made kind of a change in terms of having those more acquisitions, but that is really going along with the fact that we have seen the real explosion of new electronic opportunities in the car, and we have made also great gains organically in that market at the same time. So, I think this is not a change Jim, we’re very excited about it. Could it be 25% of the Company, I think you said, and look we’re very proud of diversification of Amphenol. We don’t have any market today that represents 25% of our sales, and I think we look to continue to be a very diverse company. Could automotive be slightly more than it is today or slightly less, absolutely. We don’t set a sort of a goal for that, but what it will be is it will always be focused on those products where we can create value and thereby can realize the returns that we want.
Sherri Scribner – Deutsche Bank: I just wanted to dig into your guidance a little bit. At the midpoint, you guided revenue up about 2.7% and then we look at the segment commentary I think from what I was writing down, it looks like you’re only expecting the mobile devices segment and the broadband segments to be up with everything else moderating I think with what you use, I just want to make sure I understand that. And also in terms of the auto segment, you commented that would be stable but I would expect that to be up with the acquisitions, so maybe some detail on the segment guidance as we move into September?
Diana G. Reardon – EVP and CFO: Sure. I think you’re referring specifically to the guidance for Q3, is that correct?
Sherri Scribner – Deutsche Bank: Yes, I am. Yes.
Diana G. Reardon – EVP and CFO: Okay. And I think the market growth that you described is pretty much right on from a sequential perspective when we look at the growth as Adam said and the comments that he made, we do expect to see a significant increase in mobile device sales based on the expectation for our participation in a broad range of new programs that we expect to ramp up. We expect for I’d say about half of the markets that tend to have a seasonally softer quarter in the summer, the defense markets, (indiscernible), industrial, auto, we expect these to be slightly down sequentially and others to be slightly down to flat. From an automotive perspective, we also have the phenomenon in the quarter as I think you know relative to exchange and specifically to the impact of the euro and so that is a negative from a sequential perspective. That’s more pronounced actually in the automotive market and essentially offsets the positive impact of the small acquisition that we made. So that’s why automotive without the negative impact from the euro would, to your point, with the acquisition be up sequentially. Does that help?
Sherri Scribner – Deutsche Bank: No, that does. Thank you, Diana, that is helpful. And then if I could just ask about telecom, you guys are doing very well in the telecom segment, and I think most of the commentary we’ve heard from other companies and some of the equipment makers is that telecom segment continues to be very weak. So I just wanted to understand why you guys are doing so much better than the market in that segment?
R. Adam Norwitt – President and CEO: That’s a very good question, appreciate it. Look, we call telecom, we call it IT Datacom. I think that’s the market that you’re referring to and I think our company is doing extremely well in that segment. We grew 12% year-over-year, 13% sequentially, and I don’t think you would see that performance from any of the kind of (ON) customers in that market. Why is that? It’s very clear for us. It’s coming because of new programs with new technologies. We are participating on a very, very broad basis, really across the board with high speed technologies as these systems have to perform at higher and higher speeds to satisfy the demand for things like video on the Internet that’s hogging so much bandwidth in the core systems as well as at the enterprise level. In addition, power has become just a tremendous driver for us, whereby we are creating new power solutions that go on to this IT Datacom equipment to allow them to have a more efficient power consumption, which is the real sort of – the flip side of the data revolution is they’re using a lot of power, and so to the extent that you can create an interconnect solution that enables customers to equip their equipment with a less power-hungry system, that allows you to create value for the customers, it allows you to take broader positions on the new platform, and it allows us in the end to outperform the market. I think we feel very good about our overall performance. We have a very, very broad position in IT Datacom and (we are present) essentially with all customers in that market to some degree or another. So it is really not that we’re leveraged on just one customer or one program, but rather that we are gaining share with new technology solutions on a very, very broad basis in that market.
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