Carrie Eglinton Manner: And the only specific area is using Lean Six Sigma, methodology training people and having rigorous key performance indicators for the accountable execution we talk about both leading and lagging indicators and we have that by function by work stream across the organization really to drive that rigor. So that — those are the types of things that give us confidence on delivering our commitment on breakeven from an operating cash flow on the core by the end of next year. .
Unidentified Analyst : Great. Thanks.
Carrie Eglinton Manner: Thanks, Alexandra.
Operator: One moment for our next question. The next question comes from Andrew Cooper at Raymond James. Your line is now open.
Andrew Cooper: Hi, everybody. Thanks for the question.
Carrie Eglinton Manner: Hi, Andrew.
Andrew Cooper: Maybe first just kind of a longer-term question. If we look back historically, there’s always been a pretty big gap on the gross margin side between the molecular business and the diagnostics business. I guess when we think about bringing everything into –or a lot more into Opus Wave lower growth in molecular than maybe where it was at peak. All these things sort of coming together post COVID has that gap changed I guess in the near term for the core? And then longer term how should we think about the different components of this portfolio from a margin perspective?
Ken McGrath: Yeah. Thank you for the question. Well we’re not guiding longer term on margins for the Q4 what we are looking at is probably kind of a normalizing back down to the mid-40s. But everything you described is the correct thesis. We are trying to leverage our Opus Way facility and drive overall efficiencies. And what we’re trying to do is try and we are driving our diagnostic margins higher. The particular dynamic that was the biggest mix impact in the last year or so was on InteliSwab, which started out lower than our average gross margins, and over the last year has improved significantly to a point where it’s much higher than our overall margins. And that’s a dynamic in the mix that we are benefiting from, but when that starts getting into the endemic phase, what we will look at doing is driving the overall improvement in our gross margins again through the efficiency, the cost operational efficiency items I mentioned before to drive the overall portfolio higher, and then take advantage of the facility, take advantage of automation, take advantage of the leveraging of standardization of our products and our processes.
Andrew Cooper: Okay. That is helpful. Maybe just one on capital deployment as the cash balance to your credit continues to rise here. Just what you’re seeing out there in the environment, how we think about maybe what’s coming across the desk and the discipline you’ve shown. But when you make all the trigger and maybe if there’s any change to what the right assets look like as the environment continues to evolve?
Carrie Eglinton Manner: I’ll start and then I’ll let Ken address capital deployment more specifically. But in the excitement of innovation and investments, I mean that’s where we think about the long-term of this business first and foremost. We put together a transformation plan that started with strengthening the foundation to give us this opportunity to think about investing for the long-term. So that’s exactly what — that’s where we start. Internally, we are taking our time. We’re being incredibly diligent and I’d say based on the market and economic landscape, the strength of our balance sheet is giving us a vantage point to really think about everything externally that’s coming across and investing in our organic capabilities and building on the strong portfolios in both diagnostics and molecular sample management solutions.
So fundamentally what we want to do most is to use this to build long-term value both for shareholders and for our customer base and having a comprehensive portfolio. But we’re being very thoughtful about that because there’s a lot coming across based on just the challenges in the market.
