Jeff Johnson: That’s helpful. Thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from Kevin Caliendo with UBS. Please proceed.
Kevin Caliendo: Thanks. Thanks for taking my question. You talked earlier about winning some new accounts in Implants. I know you had made some investments in Implant sales force. Can you maybe talk a little bit about what kind of clients you’re winning on the Implant side and the Implant dynamics that you’re seeing in the U.S., in Europe and in China, the differences between the markets right now?
Glenn Coleman: Yes, so let me start with the shining light Kevin, which is China. We had a tremendous quarter in China on implants. We now strongly believe that we will offset the price degradation with volume as we head into the back part of the year. Clearly we’re winning in MIS there in the mix. The mix is also favorable for us in China, so all very positive in China. I would say in the U.S. we’ve made those investments as we went into the early part of this year in the sales team and now in Q2 not only have we got the e sales team together for training, we also invested in that 400 person session in Greece and other sessions like it. We have we had stepped away, the company had stepped away from investments in the Implants business and clinical education in particular over the past number of years and I think as I shared on the last call the Implantologists view themselves as a family and we had moved away from that family, but we’re now reengaging.
And it’s, sentiment is positive from these customers as a result of this. I would say with the type of customers that we are winning, it’s — I would say, it’s too early to get any trends from that. Obviously, we monitor this on a religious basis each and every month. And I mentioned in the prepared remarks that there are green shoots in terms of the engagement of our reps, the number of customer visits they are making, some of the positivity from customers and also from their referral dentists because that’s part of the challenge that we have here. It’s not just calling on the implantologist. We also need to get to their referring dentists as well, which is the heavy climb that we have faced. But as Glenn said in his remarks, we do expect progress in Q3 and Q4 and expect to see growth for the year in implants.
So, we’re heading in the right direction we feel, but it’s — we’re a long way from thinking we have the job done.
Kevin Caliendo: If I can ask you a quick follow-up. DS World is coming up, we’re all anxious to see your — you guys running your first DS world and I know that when you took over, you were — you looked at some of the R&D projects that were in the pipeline and I think maybe got rid of some of them or changed up sort of the R&D model. How much of this DS World would you say is stuff that you’re — that you put in place and how do you think, from an R&D perspective, where does investment need to come going forward? Like where would you want to be focused going forward?
Simon Campion: So I would say, a year into our tenure here. You don’t make changes in terms of products sitting in the street within a year. The life cycle is longer than that, but what we have done is install the processes around R&D, so that we can accurately assess the potential return on it and accurately assess the timing of commercial launches. And so, they are the processes that we have built around and we have consolidated our R&D efforts around fewer programs that we focus on ROI. We have a robust process now for valuation and we will be, as I mentioned in an early response, we will be launching new products over the next number of months. You’ll get sight on some of them at DS World and then further into Q4 and Q1. So, it’s very much a work in progress on the R&D side and it’s, I would say, no projects that we have kicked off will have — will see the light of day here for the next several months, but the process is more robust.
Kevin Caliendo: Thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from Jonathan Block with Stifel. Please proceed.
Jonathan Block: Thanks guys. Good morning. The outperformance for the first half of 2023 and Glenn, I think as you mentioned, you’re obviously taking up the implied 2H as well by really a decent clip. But Glenn, what are the areas of the overall business that deviated the most to the upside, call it, versus your expectations when you guided whatever that was six, seven months ago? I’m guessing Aligners might be one of them, but maybe you can elaborate and give a little bit more detail and then I’ll pause and ask my follow-up.
Glenn Coleman: Yes. I would say, regionally, it’s been in the U.S. and Asia Pacific. So, in the U.S., consumables have done better than our initial expectations. I think the retail demand has also been stronger for certain CAD/CAM equipment, which we haven’t yet seen in our numbers, so that’s encouraging as well. In Asia Pacific, obviously, we mentioned China. China has now been outperforming even some pretty robust expectations for the back half of the year. So I think China will continue to do well and actually outperform our initial budget, if you will. We’re seeing better recovery in imaging and treatment centers as well and a lot of that is improvements in the supply chain. We’ve significantly reduced lead times and so really good work by our global ops team on doing that, and that’s helping us to overperform there.
