Matthew McGrew: Yeah, Mike. So for Q2, I think that’s definitely right. You talked about approximately 26% adjusted operating margins. That is a sequential decline versus Q1 that was about 30%, and that is all due to lower respiratory volumes at Cepheid. It’s — the Q2 respiratory revenue was — or sorry, Q1 was $675 million. We’re thinking more like $200 million for Q2. So a pretty big drop off. And given the margin profile of that business and the operating leverage we get, it’s pretty meaningful when that declined. So I would say the 2Q decline is all related to respiratory volume at Cepheid and maybe some FX as well. But you bring up a good point as we sort of think about the way that you’re likely to see sort of maybe different seasonality out of our margin progression than you have in the past, given that we’re sort of in an endemic state now versus where we were in COVID and it really does come back to that respiratory season.
So if you think about the respiratory season, which is both Q1 and Q4, those are the highest volume quarters at Cepheid by a lot, right? Q1 and Q4 are going to be quarters that we anticipate being north of $500 million each. You saw that we did $675 million in Q1. In Q2 and Q3, as we sort of guided to, we’re talking about revenue of only a couple of hundred million dollars. So the margin profile, operating leverage, I think you’re going to see Q4 and Q1 be Danaher’s higher volume and margin quarters going forward. And that’s a little different than maybe what we saw in the past pre-pandemic, and that’s largely because respiratory was a much smaller business. Only $250 million pre-pandemic 2019 and now it’s $1.6 billion. So hopefully, it gives a little bit of color and help people modeling as we go forward because I do think we have a little bit of a different dynamic that probably is just showing itself a little bit now here as we get through some of this stuff.
Michael Ryskin: Great. Thanks a lot. Very helpful.
Operator: Thank you. Our next question comes from Scott Davis with Melius Research. Please go ahead.
Scott Davis: Hey, good morning, Rainer and Matt and John.
Rainer Blair: Hi, Scott.
Matthew McGrew: Good morning, Scott.
Scott Davis: Guys, I’m looking at the Life Sciences margins, and I see the breakdown of why they’re down. They seemed down a little bit more than I would have thought on a minus 3% core. Can you give us a little bit more detail on perhaps some of the ebb and flow there and mix issue?
Matthew McGrew: Yeah. Scott, I thought the margins in Q2 actually came in probably a little bit above where we thought at 23%. I mean I think if you look at kind of the volume there being down, and also, you’ve got Abcam that has come in here, and we’ve got some transition costs related to Abcam that are either in that number as well. And so operating leverage with core growth down low-single digits and as expected, kind of had some of the dilutive impact of Abcam is probably the big thing here in the quarter, but I still think it came in around where we thought.
Scott Davis: Okay. Fair enough. So guys, just going back to Abcam, I mean, you didn’t talk about it in your prepared remarks, but you’ve had a little bit of time with the business now. Can you talk us through perhaps some of the early reads of positives and negatives?
Rainer Blair: Sure. Scott, as you know, we closed in December on the business and now have the first full quarter behind us. And we put a new Danaher President and CFO in place, and they’re really focused on the transition into Danaher and implementing the Danaher Business System. So we’re going to continue to work through it, and we’re going to need a little time to get after some of the growth and cost opportunities we spoke about. And long term, of course, we continue to believe this is a great high-single digit grower (ph) in a fantastic market.
Matthew McGrew: Yeah. And Scott, we’ve seen this before. I mean, you’ve followed us long enough that sometimes these as you put in a new team, you’ve got a business that had some challenges on the cost side. As we introduce DBS, we’ve sort of seen maybe slow starts before like this. And as we get going, IDT was very, very similar. So it’s sort of — it’s not really surprising, but I do like Rainer said, I like where we’re at in the long term. And I think we are going to get after some of the costs here pretty quickly as well. So I think it will cost some money to do that. But we’re getting after it, and I think you should expect us to do that here for the balance of the year as well.
Scott Davis: Okay. Sounds good. Best of luck, guys. Appreciate it.
Rainer Blair: Thanks, Scott.
Matthew McGrew: Thanks, Scott.
Operator: Thank you. Our next question comes from Vijay Kumar with Evercore ISI. Please go ahead.
Vijay Kumar: Hi, Rainer. Good morning, and thanks for taking my question.
Rainer Blair: Hi, Vijay.
Vijay Kumar: For my first one, on bioprocessing, those comments were helpful. With the 0.95x and the order trends, could you perhaps talk about the progression in the quarter? I know the guide didn’t change but given the 0.95x in customer activity levels, should the exit rates for fiscal ’24 change? I think the prior was exiting maybe 1x or north of 1x. And I’m wondering if those assumptions have changed?
