# Synthetic Earnings Transcript Excerpt

Operator: Welcome to the Q1 call for Northlake Components.

CFO: Revenue grew 8% year over year, but gross margin declined 240 basis points. The largest driver was expedited freight cost in two product lines after supplier delays.

CEO: Enterprise customers renewed at expected rates. New bookings were softer in March, especially in mid-market accounts.

Analyst: Should we think of the freight cost as temporary?

CFO: We expect some normalization, but we have not yet seen April spot rates return to last year's level.