So we know that people are still going to the dentist and that traffic should buoy the investment decisions of some of the practices out there.
Kevin Caliendo: And just a quick follow-up to that is, are you seeing different behaviors from DSOs versus sort of individual practices, are DSOs being more conservative in any way, shape or form?
Kevin Barry: I think it’s fair to say we’ve seen some of the expansion activity on the DSO side slow down compared to before. But I think the same dynamics play out. It really kind of depends practice by practice what their traffic is, what the kind of state of their equipment is and what opportunities they see to invest in their practice to drive better ROI, which is what our sales team is really good at working through with our customers. So I’d say there are probably a fewer de novos than prior years, but similar dynamics within the core practices.
Kevin Caliendo: And if I can ask a follow-up to Jeff’s question. Do you think that there is any permanent share changing that has happened due to what happened with your competitors and their cyber attack? Meaning like is there — has there been any — what you think is permanent market share gains for you because of what happened to them?
Don Zurbay: I think it’s too early to tell on that. We had — part of our strategic view on this was, as you can imagine, we would like to be looking at and working with potential customers that could be long term. So that’s our focus but it remains to be seen.
Operator: Our next question comes from the line of Elizabeth Anderson with Evercore ISI.
Sameer Patel: This is Sameer Patel on for Elizabeth Anderson. I just wanted to talk a little bit more about OpEx. You kind of mentioned that this is a bit elevated related to SAP integration as well as that facility expansion. What are some of the levers you can pull to moderate those costs? And also, what sort of step down should we kind of expect in the next quarter related to the completion of those two projects?
Kevin Barry: I’ll start, and Don can add any color he has. In terms of the step down, I think as we go through the rest of the year, the timing of those investments we’ve been talking about are a bit offset. We’ll see a wind down a bit in the expenses related to the SAP implementation and the Canada and NVS warehouse expansions, those have kind of gone live here right now. So we’ll see some of that in Q3 but kind of moderating into Q4. But I think that’s going to be a bit offset as our software investments were sort of built to accelerate more as we go through the rest of the year. And as Don has been saying, we’re still very committed to that part of our business, and we see the real long term potential there. So we’re going to work to protect those investments as we go through the year.
And offsetting that in terms of the cost actions that Don mentioned, it’s the things that really are kind of under our discretionary spend. We’re going to be looking more closely at discretionary travel and professional fees and things like that, that is — when you’re having a year like this, you tighten your belt on. And we’ll be doing those sort of activities here as we go through the year to make sure that we can deliver on our commitments and also make space for the investments for the long term of the business.
Operator: Our next question comes from the line of Allen Lutz with Bank of America.
Allen Lutz: One for Kevin. You said that equipment was weak over the past two weeks in the quarter. Can you talk about the consumables trend that you saw over the quarter? Was October any different than September, is there anything to call out there? And then any insight into what you’re seeing early in November?
Kevin Barry: I wouldn’t call out any big trend shifts we saw month to month within the quarter. And I think Don kind of walked through the impact you saw very late in the quarter. But honestly, if you kind of step back a bit and look at our — kind of how we’ve performed this whole fiscal year going back to May for us, we continue to see really strong performance by our team on the consumables line. We’ve had this PPE headwind that we’ve been working through. And when you strip that out, we think our team is performing and executing really well with our customers. We think we were on a trend to get some share even before the end of the quarter here. So I wouldn’t call any big trend shifts within the quarter. I think our teams are executing really well and it’s showing up in that consumables performance.
Don Zurbay: And maybe just one point of clarification. I think on the weakness we saw in the equipment sales were really more — I would characterize it more as really for the month of October not really just the last two weeks.
Operator: Our final question comes from the line of John Stansel with JPMorgan.
John Stansel: Just one on production. Can you give us a bit of a sense of how that should fit within cattle, pork, dairy? Sounds like — I know pork was stronger last quarter. Kind of what was driving that acceleration in growth, it sounds like? And then any way to think about that from — I know you’ve done a fair number of acquisitions in the production space. Would that mid single digit growth translate to more of an internal number? And then, I guess, final part of it. Just anything to call out on the seasonal timing shift that you mentioned as we think about the back half?
