Operator: Our next question comes from the line of Stephanie Davis from SVB Securities. Please proceed.
Stephanie Davis: Hey, guys. Thank you for taking my questions, and Peter, I am sorry to see I am walking into the party, because you are leaving the party. It’s like must be going to something much core than I am. Some of — I was a bit surprised by the quarter and the outlook, reflecting better than expected product revenues, while service revenues is a little bit light. Was that more a function of this arm is modeling after last quarter’s cuts or is there anything to call out there in some of the shifting demand changes versus what you were seeing last rent?
Peter Kuipers: Yeah. So particularly for the fourth quarter with a solid execution by the teams, if you will. Service came in a little bit light, but overall, executed well plus the cost management came in well also for the year.
Stephanie Davis: And the guidance is just kind of the same sort of thing?
Peter Kuipers: Well, for the guide for the first quarter, right, so revenue is expected to be lower quarter-over-quarter to sequentially, so that’s the largest impact, if you will. And then, of course, the cost actions will start kicking in more in the second quarter. But those are the dynamics which you model out the year quarter-by-quarter I think that’s right.
Stephanie Davis: Understood. And then, Randy, are you still seeing predominantly or within CapEx budgets really contained to the larger health systems, like, you mentioned last quarter or how have we seen an extension of this a little bit downstream to like a broader set of customer base? I know as were you also mentioned that these budget changes going to be more U-shaped, is that kind of recovery are playing out so far?
Randall Lipps: Well, I think, as Scott said, that I think, particularly the Q3 — during Q3 a lot of these big health systems have realized that the cost dynamics without the CARES Act money that they had to stop their capital spend. And so I think they have now seen that adjustment in May each quarter as we move forward. They are making adjustments on lower and improve the margins. In fact, I think, last month over the last wave comp and reported some improvement in the margin.
Peter Kuipers: Yeah.
Randall Lipps: So my guess is that will continue to happen as we move forward. But it’s going to take — these are slow-moving tankers, it takes them a little bit of a while, but I — it feels like once we hit some big macroeconomic another event that they are starting to slowly move forward and create more margin and put more investment into the institutions, which they need, which they know they need to make, particularly in pharmacy.
Stephanie Davis: Got it. Helpful. Thanks.
Operator: Our final question comes from the line of Allen Lutz from Bank of America. Please proceed.
Allen Lutz: Thanks for taking the questions. I guess one for Peter and Scott. So if we just look quarter-over-quarter, both revenue segments are down sequentially. But I guess how should we think about the trough quarter, is 1Q, is it reasonable to think that 1Q is the trough quarter in terms of revenue for both of these segments or is it something that’s going to be more of a hockey stick ramp over the course of the year? Just trying to understand line of sight into the guide and what you are seeing to give you confidence in the inflection over the course of the year? Thanks.
