Navann Ty: Helpful. Thank you.
Operator: We’ll take our next question from Mike Matson with Needham & Company. Please go ahead.
Michael Matson: Yeah, thanks. So I want to ask one about the breast business, specifically the gantries. I guess, during — when you had all the kind of supply chain issues, you talked about the orders were coming in and remaining strong. And so, and I know you’ve got a backlog now, but I guess what I’m wondering is, what is the ordering looking like? Because we have seen some kind of mixed signals out there about capital spending at the hospital level.
Stephen MacMillan: Yeah, we continue to feel good about it. You know, having been in this chair in a different company in the 2008, 2009 downturn. I’m always particularly attuned to trying to pay attention to concerns about capital freezes or capital tightening. I think we just feel great about where we are both in terms of the products we’ve already got the orders in, as well as continuing to get new orders. So we’re booking candidly out beyond the current year at this stage, and just a lot of excitement still in our breast health business. I think what’s hard for people to grasp is how much we’ve dramatically expanded our installed base to where we’re so strong in the US and so many people just still coming to us. So really feeling very good about it.
Michael Matson: Okay, got it. And then just on the international business, I mean, it’s good to see that the growth is being so strong there. You sound pretty optimistic about the outlook. But, you know, I was wondering if you could maybe just talk about what’s really driving the growth there. Is it expanding into new countries? Is it getting new products approved in your existing markets? Is it gaining share in existing markets? Is it maybe all of the above?
Stephen MacMillan: Yeah, I’m glad you asked it. I think the magic for us is it is all of the above. It’s this incredible diverse growth that in very simple terms, if we actually do look almost country by country and franchise by franchise, and we were just with literally that the sales leaders of each country for each franchise in Dubai a couple of weeks ago. So I’m coming fresh off looking at all the plans. If I look at the UK, we have growth plans for diagnostics, not just diagnostics, but psychology as well as molecular in the UK. We’ve got plans for the breast health business and we have plans for surgical. And it is, it’s bringing — in the case of surgical, it’s bringing those products into these markets. It’s getting the reimbursement.
And it’s just been a lot of nothing sexy and no one big driver, which I actually think creates the excitement. And even as places like China have gotten a lot wonkier for most companies because we’re small there, we’re not counting on that for our growth. We’re getting it everywhere else. But it’s not sexy, But it’s incredibly effective that it’s literally every — almost every franchise in every geography. And these hundreds of thousands here and there, as you keep adding them up, they become millions and millions and then tens of millions all through it. And I think it’s creating this inexorable growth as we’re bringing on new customers in each franchise. Thank you, Mike.
Operator: We’ll take our next question from Andrew Brackmann with William Blair. Please go ahead.
Andrew Brackmann: Hi, guys. Good afternoon. Thanks for taking the questions and certainly sending condolences to Karleen here. I’ll just stick to one on the innovation engine here. You guys have obviously done well sort of advancing the platforms through R&D and new launches, but how should we be thinking about major upgrades within the core franchises here over the next couple of years. Anything to call out there? So we’d be expecting, I guess, more singles and doubles moving forward. Thanks.
Stephen MacMillan: Sure, Andrew. I think we never want to over-hype anything, but we’ve got some neat things coming both, particularly organically in the breast health business, you know, diagnostics obviously, BV/CVs off to a tremendous start and, we’re excited by that organic thing. And then working it out, but probably more in the continued singles doubles category that, hopefully over time, those singles and doubles turn into triples. I think if you look at Acessa and Boulder, they’re growing very nicely, they’re still very small. And so over time, I think the magic from where we sit today is we can see those franchises growing at above our company rate for the next five plus years at least. And I think that’s the magic of what we have going here. So again, no one kind of back to Mike’s question a little bit, no one product driving the growth, it’s systematically coming across the product lines. And I think it creates a lot more durability.
Andrew Brackmann: Okay. Thanks, guys.
Stephen MacMillan: Thanks, Andrew.
Ryan Simon: We have time for one more question.
Operator: And we will take our final question from Andrew Cooper with Raymond James. Please go ahead.
Andrew Cooper: Hey, thanks guys for squeezing me in. A lot’s already been asked. So maybe just one, you mentioned booking out already into next year on the gantry business. Just what is the typical kind of visibility you have at this point looking into the year relative to maybe where you sit now with this big backlog? In other words, how much bigger is that backlog than it typically would be?
Stephen MacMillan: Yeah, it’s clearly peaked. I think we’ve peaked up here in the last year, and now we will start to bleed that down. But we typically have reasonable visibility. By the way, it doesn’t mean that an order can’t be placed now, that we wouldn’t ship sometime in the next quarter or so. It all depends on how they’re scheduled and everything else. But I think we feel really good about where we sit.
Operator: That concludes today’s question and answer session. And this now concludes the Hologic fourth quarter fiscal 2023 earnings conference call. Have a good evening.
