Poon Mah: Great. Congrats on the quarter. A lot of ground already covered. So just some follow-up questions, mostly on gross margin. So I believe you said the gross margins in 2022 were 57% and then the guide for ’23 is about around that range. Just trying to reconcile that because given you’re going to be launching kind of 11 kits. The 9600, I believe, has a better gross margin profile. Just trying to understand the gross margin guide for 2023. Is that just being conservative on your part?
Todd Nelson: Well, I think part of it is just related to the timing of the ramp-up for the internal oligo production, which will predominantly have — it’s linear. But I think from a production perspective, let’s say it’s linear with respect to getting the systems up and going but nonlinear with respect to capacity and uptime and things like that, so more of an emphasis on gross margin accretion later in the year from the oligo in-sourcing initiatives. And then I think on the mix, we said like mid- to high 50s. And I think that is generally good place for us to be right now. I wouldn’t say it’s necessarily inconsistent. We’re ramping up the sale of the 9600. And yes, that has a higher price point. We need to see how the mix between the 9600 and the 3250 works out.
Our anticipation is that because it has higher margins, any contribution from that will be accretive to where we’re at. And then on the kits, 11 kits throughout the year. But again, from a cadence perspective, a lot of them will be in the second half. Now that is all good stuff and headed in the right direction from a margin perspective. That’s also offset slightly at the same time by a very rapidly growing gene synthesis business from our de novo kits, which has generally a lower gross margin. So as the company works to operationalize these systems for our own internal oligo production to accrete to gross margin, launches new kits throughout the course of the year. We’re also — we need to recognize that we’ve got a very rapidly growing business.
It’s growing in excess of 60%, which has a typically lower gross margin for gene fragments and gene synthesis products.
Poon Mah: Okay. That’s helpful. And then on the cadence of these 11 kits, yes, you said it’s going to be mostly second half, but getting within in the second half, should we be thinking it going to be weighted more to Q4 or…
Todd Nelson: I’ll hand it over to Eric. I think the peanut butter is pretty well spread between the year. I get the sense there’s a lot going on in the second and third quarters, but I’ll hand it over to Eric.
Eric Esser: Yes, that’s right. Of the 11, let’s see, we have a couple that are launching in Q1, the majority launch in late Q2 and Q3. And then one of those kits, the last one launches together with the DBC in Q4.
Operator: And thank you. And I’m showing no further questions. This concludes today’s conference call. Thank you for participating. You may now disconnect.
Todd Nelson: Thank you, everyone.
