James Thorburn: Yes. So I touched on it a little bit with the question. I mean that our bookings in the first quarter, our orders for the first quarter were approximately $65 million. You saw the pickup in terms of NGS. So NGS is driving the overall growth in the second half. If you look at NGS first half, it’s about $50 million in terms of revenue. So the growth in the second half has a say, roughly $120 million is $70 million. So what’s driving that. You can see there that the orders in Q1 for NGS were in excess of $30 million. We see — continue to see the SynBio where you see a sequential pickup in SynBio, what’s driving that number of customers continue to deliver from a performance point of view. The team in San Francisco has done a fantastic job in terms of aggressively reducing turnaround time, and that’s been well received in the market, so it’s the execution.
In terms of your question around gross margin improvement in the second half, that’s about growing the top line, leveraging our fixed costs, we do bring the Factory of the Future costs online less this quarter as the facility is now commercially operational. It is exciting that we actually shipped our first product, and the focus is execution. It’s going after the makers market, $1.4 billion opportunity. And the pipeline for NGS continues to scale the number of wins and as this continues to scale. So it’s more of execution obviously some new products impacting us as well, has continued to gain share in a growing market.
Operator: Our next question comes from Puneet Souda with SVB Securities.
Puneet Souda: Emily and Jim. So just following up on the NGS side, obviously, book-to-bill, higher. But could you elaborate is this more on the pickup — in the second half pickup on the NGS is more, are you all driven or more of the liquid biopsy customer demand, sort of just elaborate a bit on that. And then how much of that is volume versus pricing? I mean you’re expecting a meaningful pickup here in both growth and as well as, obviously, gross margins, too. So just trying to understand how much of that is pricing and volume in the context of NGS. And given the sort of the fixed cost that you have now and the 30% gross margin that you have for the next quarter?
James Thorburn: I can start, Emily. So let me just address the 30% gross margin this quarter, Puneet, so appreciate the question. That’s primarily driven by the fixed costs coming online in the Factory of the Future. I mean, we’re scaling the Factory of the Future this quarter. So — so we’ll give an update in terms of the volumes and in terms of products being through the Factory of the Future in the next earnings call. But we’re commercially bringing time fixed cost combined, so we’re got under recovery. And that then the consequence of that is our gross margin dips to 30%. And then as we scale the volume in the second Q3, Q4, we’ll see our gross margins improve. In terms of NGS, I mean, we’ve been working at this for a number of years.
We’ve been providing metrics in terms of the larger NGS customers that we continue to service. We define the larger NGS customers as those customers that are — provide revenue in excess of $250,000 a year. That’s continued to scale. We’re now tracking approximately 264 of them. And that scale from less than 100, 18 months ago, and we continue to run in terms of assets. And as we continue to win in terms of assets, we see that impact in terms of bookings, placing orders, we continue to gain share, and that’s what’s picking up. We see the pickup in the second half of this year. So we’re well positioned for a strong second half in NGS. And as NGS picks up, revenue picks up and gross margins improve.
