Mark Sawicki: Yes, I got it now. Yes. So biologistics revenue was softer than anticipated because we saw those 42 trial terminations, and many of those were established programs with active volume that was ongoing. Those were replaced by 42 new starts. But those 42 new starts take time to ramp. And so just because we onboard them in the quarter, usually it’s one to two quarters later before we start seeing a contribution as it relates to financial contribution. So we’ll see progressive improvement on that as those new programs come online.
Yuan Zhi: Got it. And then on MVE, it seems that it’s dropping from the last quarter. And I am just curious, was it because canceling of order or was it because the customers are just not there yet?
Jerrell Shelton: It was demand softness, continued demand softness. And again, mostly out of China, it was not cancellations of orders.
Yuan Zhi: Got it. And one last one from us for the goals to reduce some capital costs or reducing some cost in second half, I am curious, will that impact the revenue part? Because if you are cutting workforce – in sales – sales, it could have a certain degree of impact. Thank you.
Jerrell Shelton: No, if you look at the actions that we’re looking at related to, as I mentioned, some of the CapEx that we’re moving out, these are not initiatives that will have an impact on our near-term revenue. They’re not the high priority initiatives that we’re working on. And same with some of the headcount review. This is not something that we expect to have any impact on our revenue as well as on our client relationships. Again, this is seen more as reviewing the organization, taking a closer look, especially after the number of acquisitions that we’ve completed and then kind of refining and the organizational structure.
Yuan Zhi: Got it. Thanks for the actual helpful color.
Jerrell Shelton: Thank you.
Robert Stefanovich: Thank you.
Operator: Your next question comes from David Saxon from Needham. Your line is now open.
David Saxon: I appreciate it. Thanks and good afternoon. I’ve been in between calls, so I apologize – I apologize if I am repeating any questions, but Jerry, maybe I’ll start with you. So on the fourth quarter earnings call back in mid-March, you did seem to confirm expectations for sequential growth from the fourth quarter into the first quarter. So, over the two weeks before quarter end, were there any orders that got pushed out into the second quarter or what were the factors that drove the shortfall of sequential growth.
Jerrell Shelton : We did speak with confidence in the fourth quarter. We didn’t know exactly how the first quarter was going to turn out. But what – we didn’t say we were having a strong first quarter. What we did say as we gave revenue guidance and we said we would progressively improve throughout the quarters. And then the guidance came out higher than we expected it to come out, but it did come out that way. And we did have a – we recognized the weakness in the marketplace at that time and that’s why we said that we would have – we would see a progressive improvement over the year. And I did confirm our guidance today. So, that’s what happened. There was nothing specifically that I can say other than the market was slow, and we knew it was slow at the time and it was a little bit slower than we anticipated. So we were disappointed in the first quarter. But Mark may have something to add to that as well.
Mark Sawicki: Yes. Obviously, we don’t give guidance, right, on a quarterly basis. We’re really looking at the entirety of the year itself. And across the board, between ourselves and other players in the space, we do strongly anticipate a continuous progression the second half of the year. So you look at uptick in consumables for the life sciences, that’s a very strong indicator as it relates to pickup. And that was picked up in Q1, which does indicate development of therapies that we’ll need biologistics and BioStorage through the rest of the year. Sequencing itself is sometimes difficult to ascertain because you can’t have rollover from one quarter to the next. And the question is things that come in towards the end of the quarter, even if they have a PO or something else that slips that you don’t anticipate, it can have a fairly significant impact on that end of quarter revenue.
So we did see some POs and things like that slip out of the first quarter into the second quarter.
David Saxon: Okay, maybe, Mark, I will follow-up with some of the comments you just made. And I appreciate the cadence might be kind of difficult to predict, but I thought you said you expect continuous improvement in the second half. So, should we think about the second quarter being kind of flattish sequentially? And then we see some sequential growth in the second half to get to the guidance range. And then I’ll just ask my second question here. This might be for both Jerry and Robert, on Bluebird Express. I’d love to hear how that integration is going. And then by my estimate, at least, revenue contribution was around $3 million. Is that in the right ballpark? And is that a good base that we can see growth off of? Thank you.
Jerrell Shelton: I’ll let Robert talk.
Robert Stefanovich: Yes, maybe you talk about your first question yet. Just if you look at what we experienced in Q3, Q4 of last year, we saw actually a slight improvement in Q4. Hence our outlook was the way we described it at year end. With that drop off, as Tom mentioned, particularly in Asia-Pac in Q1, some of that was certainly unexpected. But what we did talk about is to see a progressive improvement throughout the year, and that progressive improvement really weighted towards the second half of the year. I can’t give you specifics related to Q2, but I can give you those two data points as they’re progressively improving and then weighted towards the second half of the year.
David Saxon: Okay. Yes, that’s super helpful. And then just on Bluebird Express, if you could.
Robert Stefanovich: Yes, Bluebird Express is integrating very well with CRYOPDP. It’s a small acquisition, but we have done business with Bluebird Express for a number of years at Cryoport Systems, and it’s a known quantity as having a very positive impact. It knows the U.S. market and it’s having an impact on the development of CRYOPDP. We’re opening three new logistics centers in the U.S. to build out that network, and I think we’ll have a good year at CRYOPDP.
