So that gives me the right confidence around how I see this year panning out. It is also true that it does take about six months or so for any one of our brand new people to come up on the learning curve and to hit their stride. So that is why we expect the second half to be stronger than the first half, but I have a lot of confidence with the leadership was put in place, both at the national level, at the regional level, the quality of the individuals we hired and what I’m seeing in terms of the quality, the breadth and the depth of the pipeline that is progressing here as the weeks go on and I’m going to let Brett comment on the OpEx.
Brett Hale: Hi Larry! This is Brett. So in regards to the guidance we’re giving, we gave guidance regarding the cash burn, which will have $40 million to $45 million. We’re going to be managing to our cash burn. Obviously there’s some elements of variable spending depending on the range of revenue. But you are correct, the OpEx is going to step down significantly from our Q3 2022 basis into 2023, and that’s a direct reduction from the reorganization that we’ve done as well as our prioritized spending.
Larry Biegelsen : Just lately €“ go ahead, I’m sorry.
Maria Sainz: No go €“ I was going to just comment that, that prioritized spending is an important commentary, because I believe we have been able to reduce spending without compromising the must-have spending. So the critical projects around innovation, the critical projects like the Action PMR clinical evaluation and the customer facing and quota bearing headcount that are really critical to feed those three pillars that I feel strongly are the right balance of priorities for our business this year.
Larry Biegelsen : And Brett, any color €“ I know you’re not giving placement guidance. Any color on device versus service split in that $10 million to $14 million?
Brett Hale: We’re not providing specific guidance, but there is obviously components of our revenue that split between the device and servers portion. We do have different ASPs for different geographies, so we’re not breaking that out into detail at this point in time.
Larry Biegelsen : Alright, thanks for taking the questions. I’ll let others jump in.
Maria Sainz: Thank you.
Operator: Thank you. One moment, please. Our next question comes from the line of Kevin Joaquin of Evercore ISI. Your line is opens.
Kevin Joaquin: Hi! This is Kevin on for Vijay. Just first on, you know gross margin guidance for the year, and just generally your long term target for gross margin improvement. Can you provide more colors there? How much of this improvement will be driven by the cost savings initiatives versus increase in ASP?
Maria Sainz: I think I’m going to let Brett take that.
Brett Hale: Yes, so there are €“ as reflected in our earnings call, we are going to see a gradual increase in pricing throughout 2023. So we are going to get a lift in benefit from the pricing benefit that we’re seeing. Cost is obviously a laser focused for the organization, including the manufacturing cost of our product. I would say the third piece that’s going to be a variable is just the increase in volumes over time. Obviously, we get efficiency as we scale the business. So those are the three levers, but we don’t have an exact breakdown of the contribution of that, but those are the three things that will lead to the 40% gross margin guidance, and then as we continue to grow the business thereafter.
Kevin Joaquin: Got it. And on your cash flow for the year, are the savings primarily on the R&D front or SG&A?
