Udit Batra: Yes. In terms of end markets €“ Rachel, this Udit, in terms of end markets, in terms of what we see as visibility, there is no signal that the fundamental demand for our products in China is slowing down. There is no sub signal. So, we feel very good about China and it’s a good place to start at the beginning of the year to assume a high single-digit-ish growth. And as I mentioned, if the recovery is faster, of course, you expect faster growth.
Operator: The next question is coming from Josh Waldman, Cleveland Research. Your line is open.
Josh Waldman: Hi guys, thanks for taking my question. Udit, I appreciate you were reviewing your Ph.D. thesis before the call, really covering all your bases. Just two questions for you, I think, Udit. Wondered if you could give us an update on where you think Waters is in the LC replacement opportunity? Maybe comment on what portion of the LC sold in 2022 were in the Acuity or Arc platform versus legacy alliance? And what you think that could look like in 2023? Just I guess curious your thoughts on like if we do see a slowing in the LC replacement cycle, kind of broadly, do you think Waters’ push to rotate customers into the platforms could elongate that refresh?
Udit Batra: Yes. So Josh, thank you for your comment. Look, on the LC replacement cycle, and I guess, overall, the instrument replacement cycle, we’ve been pretty clear, we’re almost one-third of the way through in 2022 when we started about two years, two-ish years ago. So, there’s a pretty significant runway. Now, it’s €“ these things don’t go in a smooth, smooth way, right? So, they go in €“ given that these are large orders, they go in a lumpy cycle, be it LC, be it mass spec, be it Acuity, be it Arc. So, I think that’s the first comment on what you should expect in terms of smoothness of the growth. Second, in terms of what has accelerated the growth and how the replacement cycle has happened? Undoubtedly, the introduction of Arc HPLC has given the customers a more of an to replace the old alliance instruments.
And that has helped us quite a bit. Some of them have also replaced it with the Acuity line, which is more the UPLC space. But like-for-like, there are equal number of customers who’ve gone from Alliance to Alliance, customers have gone from Alliance to Arc, and then fewer have gone from Alliance to Acuity. Acuity, I’ll remind you, is a UPLC platform, whereas Arc HPLC was specifically designed for high volume small molecule applications in QA/QC, and it’s a direct, sort of replacement for Alliance. So, I hope that gives you a bit more color. But I think the right assumption would be Alliance to Arc HPLC and Alliance to Alliance. And then Acuity, small minority of applications.
Operator: The next question is coming from Jack Meehan of Nephron Research. Your line is open.
Jack Meehan: Good morning. Congrats on the Wyatt deal, had just a question on that, which is, could you tell us what is their mix today of instruments versus recurring? Do you think there’s any opportunity to shift that over time? And then just one clarification, $70 million of revenue synergies, is that included in the low to mid-teens growth you talked about? Or is that being additive or…
Amol Chaubal: Yes. So, let me quickly cover the second one. The load double-digit growth that we’re talking about, that’s the stand-alone business, the 70 million synergies that we are talking about are sort of incremental to that. And on the first question, there’s roughly about 75% of the revenue is instruments, roughly a quarter today is what we traditionally call recurring revenue. But as you know with Waters, we think instruments are also recurring. And again, there is a great opportunity on that, not just on the light scattering platform, but also the HPLC and the SEC columns that go with it.
