James Green: Yes. I think when I look to kind of the morphology for the year, we expected with the rotation out of the low end products and the fact that we’re able to replace most of that, if not all of it, and then some with the newer products rolling in here in the year, we had — originally I thought that we’d see the first half to be somewhat flattish and then start to really move back toward our nice growth in the second half. But what we’ve seen is some strong growth here up front with the new products. So when I think to the rest of the year, Q2 might be kind of a flattish to Q1 kind of view because, again, we’re still seeing some of this rotation out. But again, we are seeing nice improvement to overtake that and at least mitigate that.
But certainly, in the second half, that’s when we see the underlying growth of the new products really kicking in. So, I don’t know that this is going to be a real typical year as far as Q2, Q4. But certainly, Q4 has been just because of the purchasing cycle, typically is our strongest quarter and it’s likely to be that way again this year, too. So, I think with — as I get to next quarter, I’ll be able to underpin better on the revenue side. But you see, we’ve taken the revenue up from what we had talked about last time, looking at overall about mid-single digits, plus or minus. And again, that being net of about four points headwind. So, we see this as a very strong year and continuing to develop, and you’ve seen what the bottom line looks like now that we have so much of a better of our cost position.
Our overall cost organization has come down dramatically. And again, you measure that in the gross margin, you see that in the EBITDA margins, and we are back on a nice growth path that is underpinned by these new products, too. So the combination of new products and an improved product portfolio and altogether shows this is the platform we were planning to build.
Bruce Jackson: Okay, great. That’s, it for me. Thank you for taking my questions.
James Green: Thank you, Bruce.
Operator: And our next question is from Chris Sakai with Singular Research.
Unidentified Analyst: Hi guys. This is for Chris I was wondering to an extent — yes, I see. I was wondering if you can quantify to an extent you can, the contribution from the increase in price and volume growth versus the new product in terms of the overall growth that you have experienced?
James Green: Yes. In general, I would say that we are seeing both are driving growth for us, expansion of volume on better-priced products on the overall portfolio. We tend not to split out and report on those specifically, but I would expect that we’re — that half or maybe a little better than half will be new products and maybe the other half would be expansion of existing products that includes both volume and price, with the two of them really kicking in nicely. You’ve seen the new products that we’ve introduced, with the new bioproduction product that we introduced at the end of last year. That’s now in our revenue stream this year. That’s expected to grow to annualize somewhere around $1 million a year of consumables alone on that one deal and we’re working on many others.
I talked about the new introduction of the new behavioral — high-capacity behavioral system. The initial order on that at over $800,000, and that will revenue recognize in the year. And as you might expect, with that being picked up by a large CRO, we expect that, that’s going to have a real opportunity to grow with the rest of our CROs and start to move into areas of very large core academic research sites where they’re doing large studies and pharma studies. So, this is a whole new incremental growth area for us. If you think about behavioral systems in the past, you might sell them into academic research, maybe they’re a $10,000 system. Well, now we’re talking hundreds of thousands of dollars and a real need for this kind of a technology, especially when you combine it with what we have for telemetry and that expansion of what’s required for data collection, reduction and regulatory submissions.
So again, we’re really happy to see that a lot of our — a lot of new growth coming with new products, and you know that they’re also designed to really focus on bringing through recurring revenues at the same time in services, but also with our expansion of our current portfolio. So it’s a good position to have both vectors moving in the right direction.
Unidentified Analyst: Great. Talking of new products, looks like in terms of telemetry, you are gaining great traction in Asia and EMEA. But maybe — and I’m maybe interpreting it wrong, maybe the momentum here in Americas probably is not as positive as Asia and EMEA. Is that what’s going on? And if it is, if you can give us more color how — what’s happening in Asia and EMEA might translate into Americas?
James Green: We’re actually seeing, across the board, the telemetry. It’s come back very strong in all three areas. It’s just that Asia has really stepped up. Lot of demand developing in Asia, and we see that as a long-term growth driver. EMEA had been operating pretty poorly for a while in terms of our telemetry products. That was one of our big drop-offs mid last year. That’s come back nicely. So on a relative basis, yes, we — certainly, with Asia growing very fast, EMEA recovering, but don’t discount America. Americas, the US is also growing very nicely, and we see that continuing. So, we don’t really see — it’s just that when all three are performing well, it’s hard to differentiate because when you got one of them that’s really outperforming the rest, it doesn’t — no one gets to hide the fact that all the regions are doing quite well in this space.
