There will be a catch-up in the next couple of months. We went into the period with a pretty decent backlog of equipment, partially driven by the very successful [Indiscernible]. So not all of that has been shipped as fast as we would have wanted to, not because we don’t have the ability to install new equipment but simply because it’s just a bit more inefficient given the fact that certain of our equipment systems were not running and we’re relying on a lot of manual systems.
Jason Bednar : That’s really helpful. Thanks for that color. And then as you think about — I think a lot of you trying to tease out the exit rate renewal what things look like in 2024. Out of that 10% to 15% where you’re still operating the low pre-cyberattack levels, any sense of like of that 10% to 15%, how many of those customers are under contract like large accounts within dental or medical or have your practice management software in the elements that would make it more sticky and really, I think, exemplify how value industry reattain a lot of the business that you expect you will. Thank you.
Ron South : Yeah, Jason, I think that we do have — our larger customers have really stuck with us through this, which we’re very appreciative of that. And so we don’t expect any significant attrition there. The 85% to 90% on the ordering, like I said before and as Stanley added, these are — a lot of these are customers who are — don’t rely on FSCs, don’t rely on our sales reps on the dental side. And so I think that’s really the run rate that we’ll be looking to improve as we go into ’24, and we’ll be able to reflect whatever our assumption there is in our ’24 guidance when we provide that.
Operator: And our next question comes from the line of Nathan Rich with Goldman Sachs. Please proceed with your question.
Nathan Rich : Great. Thanks very much for the questions. I just wanted to follow up there on the cybersecurity incident. Have you had any issues with getting supplier product? I recall you mentioned something in the prepared remarks about some supplier accounts. Just wondering if that’s had any impact on inventory. And from a balance sheet perspective, would you expect any impact on inventory levels in the near term or capital deployment in the near term just as you work through these issues?
Stanley Bergman : Yes, I think this is a good question, Nathan. We did not have E3 operating for — I can’t remember when it was, the first week. So we were buying based on historical data of about a month or so old. That system came up pretty quickly. There was some challenges in the receiving department because we didn’t have the full software stored on the receiving side. But I would say other than maybe one or two actually suppliers that had concerns about corrupting their systems, we’re back electronically ordering, even those of, I think, one that I was involved with quickly removed any concern they had. And we’ve been buying product in an orderly way. I would say that on some manufacturers, we went into the quarter with very good inventory for multiple reasons.
But essentially, our suppliers have been very helpful. We’ve gotten the product we need. We may have slightly increased inventories in certain areas. But Ron can address the balance sheet, per se. But essentially, I have to say the support we’ve gotten from our manufacturers has been truly remarkable. Some that helped us with drop shipments maybe in the first week or two. We felt we wanted to lighten up our load in our warehouses, but it wasn’t needed. We just took that as a precaution.
Ron South : Yeah. Nathan, just to add to Stanley’s remarks, I don’t expect this to have a significant impact on our inventory levels. The one area we could see a little bit of impact, and we’ve baked some assumptions into our Q4 guidance on this, is the — it could reduce our rebates a little bit because our rebates are largely — are primarily now, especially in North America, our sellout rebates as opposed to purchasing rebates. So to the extent that we do not recover some of the sales in the fourth quarter could impact our rebates in the fourth quarter. In terms of capital deployment, I don’t really see any change. The balance sheet is strong, remains strong going into this incident and strong coming out of the incident. I don’t see any significant changes in how we’re deploying capital as a result of this.
Nathan Rich : Great. And if I could just follow up quickly, I think it was Jeff’s question earlier, just on the outlook for the dental business. I think the revised revenue range didn’t really incorporate a significant impact from the macro environment. And I guess I’m just wondering if we should interpret this as the variability that you saw, whether it was patient traffic or equipment sales in certain international markets just hasn’t been significant enough to kind of change your view of the overall trajectory of the end market at this point.
Ron South : Yeah. Nathan, I think if you think back to our Investor Day last February, for example, our dental assumption then was, say, in the 2% to 4% range in terms of long-term growth. I think it’s probably fair to say we’re trending closer to the lower end of that range. And I think that in terms of dental specialties which is included within our dental merchandise numbers that we provide, as we mentioned in the prepared remarks, there have been some — there is some softness in the end markets on implants that I think is probably pushing some of that dental specialty growth that we would like to get more towards the lower end of that range as well. So I would suspect as we get — as we sit down and try to finalize our 2024 numbers, while we still feel good in the long term about those growth trends, we could see ’24 trading to something that would be more towards the lower end of that range.
Operator: We have time for one last question coming from the line of Kevin Caliendo with UBS. Please proceed with your question.
Kevin Caliendo : Thanks for taking my question. And I appreciate it. How much — prior to the cyberattack, how much of your revenues typically went through the e-commerce platform, just broadly speaking? I’m guessing it was more than 10% to 15%, right?
Stanley Bergman : Yeah, much more.
Ron South : Absolutely. Absolutely, Kevin. So if you take EDI plus the web combined, so essentially electronics type of ordering, it’s in the 70% to 75% range. Well, I think the 85% to 90% on the orders we’re talking about, kind of that missing 10% to 15%, we think, is largely attributable to customers who exclusively ordered electronically and did not have a rep. They didn’t want a rep. They perhaps use multiple distributors. And so because they didn’t have a rep who could assure that they were getting the product that they wanted, they simply ordered from someone else. So I think that’s the question, is how much of that business can we get back. That’s what we’re working to get back.
