Patrick Donnelly: Hey guys. Good morning. Thanks for taking the questions. Jim, maybe kind of a follow-up on one of the earlier questions in terms of headcount. As you guys kind of see the growth slowing for a little bit, obviously talked about 3Q being in this area as well. How are you thinking about managing expenses? How are you thinking about the margin cadence? How nimble can you guys be in terms of protecting the bottom line. I guess the margin has held up pretty well this quarter relative to the topline. So, just curious how you’re thinking about that piece and if you’re changing any growth investments or any way you’re thinking about the P&L?
Jim Hippel: Yes, I mean as we’ve talked about the last couple of quarters. We were behind in our investment — investments and hiring for the most of fiscal year 2022 and even really fiscal year 2021. And we made great progress in catching up in those investments and catching up on that head count in Q4 in particular. And that’s been a reason for our margin drag. One of the reasons for our margin drag in the first half of the year. And I think we’ve also been fairly public about this in the past where — not just us, but everyone was dealing with retention issues for the last year and a half. And when you took about 3,000 employees that we ended the year at a relatively still at today, roughly a 1,000 of those employees have been hired in the last year because of both new hires but also replacements of loss folks.
So, that’s a huge, huge influx of new people in the organization that need to get up to speed and frankly, get productive. And so we’re really focusing on getting the productivity of those folks we hired last year. And so that’s really the focus of this year, which is why there’s not a lot of new hiring happening nor needed. That being said, there are strategic investments we’re making, particularly around our Molecular Diagnostics division to support the amazing growth we’re seeing in our prostate test there. And there’s a few other R&D programs that were slowing down just a bit, just to catch up from all the hiring we did last year, but nothing that’s going to have any issue with our long-term growth plans.
Chuck Kummeth: Well, let me interject here. Remember, one of our reasons for being successful over the last 10 years, I think, is our prioritization process. We’ve talked about it a lot. A lot of you have had the short course meeting with us offline. And it allows us to change priorities and change mix of people and programs very quickly. We do a zero-based every year. And we’re already in the middle of that in making those changes. So we’ve doubled the size of our Namocell team since we hired them. We are adding people, we’re up 50% in headcount in our exosome teams in the last years because we’re waiting for trigger points to happen. They happen. We told you we’d start investing when we saw that. The reconsiderations went through.
Urologists are seeing patients again, and we’re lighting it up. So we’re adding a lot of people there, but we’re changing the mix and some other things. We’re holding off and some things that are just prudent to do right now until we see a reason to change. Remember all — myself and all of our leaders all come from working in large companies, all run billion-dollar-plus P&Ls, every one of them. They know how to operate.
