Frank Takkinen: Got it. That’s helpful. Thanks for taking the questions and congrats on the quarter.
Bob Leasure: Thank you.
Operator: Thank you. Our next question comes from the line of Matt Hewitt with Craig-Hallum. Please proceed with your question.
Matt Hewitt: Good afternoon. Thank you for taking the questions and I’ll reiterate the congratulations. Obviously, a lot of progress here over the past year. Maybe just to dig a little bit more into that book-to-bill. Was there — it sounds like, you had a good quarter signing new customers and whatnot. But how much of that was just pent-up demand maybe from the summer versus how much of it is, and maybe this carries into this quarter, the fiscal Q2. How much of that is just, I guess, better visibility from your customers on their balance sheets, on the programs that they want to kick start and progress over the course of this year? So is there a way to kind of parse out the difference between the two?
Bob Leasure: All right. I’ll try my best here, Matt. And one, I would say that, we closed a much higher percent of what we quoted in the last quarter than we had been the previous quarters. So I think we’re doing a better job of posing what we are quoting for one. Two, I will say that, the quoting activity versus one of last year was much higher, especially in October, November, December, than it was a year ago. So I think that’s a real positive. And I will also tell you that, what could be driving that? Well, we — at this time last year, we did not have a discovery translational sciences sales team, which we’ve been putting in place over the last three years or four years and some just hired in the last couple — in the last eight weeks.
We did not have a chemical crop business that we were selling to a year ago. We put that in place over the last two months, three months. We did not have a medical device salesperson. We put that in place over the last four months or five months. We had more safety assessment salespeople and we’re starting to do a better job of getting our brand and our brand recognition out there. So I think it’s a culmination of a lot of efforts and then we’re starting to do a better job of cross-selling. So I think we’re in — I say that, and I would say, I still think we’re in the infancy of what we can do, because a lot of those things were put in place over the last four — three months to four months and some of them just over the last two months, and those people take some time to get to know the market, to get to know us, to be trained and come up to speed.
So I don’t know which one of those in particular — it’s really, I think, a combination of all those things and we’re doing a much better job of involving our operations and scientific team in our sale process. And there is — I’m really pleased with the collaboration. It’s something we started nine months to 12 months ago and I’m really pleased with the collaboration. And again, we sell mainly to biotechs and that’s what the biotech market is looking for. So that’s — and that’s how we’re designing our business.
Matt Hewitt: That’s super helpful. Thank you. And then, maybe kind of a tag on to this, where does your current sales and marketing headcount sit today? Where — and I know that you plan to add a few more people, but where do you anticipate that exiting the year?
Bob Leasure: Oh! In terms of number of people, I don’t know, because it’s such a broad team between our sales team, our marketing team, our client services team and the scientist and scientist engagement team. We really are — we sell as an organization. It’s just not a sales team of 10 or 20 people. So it’s pretty deep, and I would say that, we have well over 100 people that are out there. It probably could be over 150 people out there daily that are selling and articulating and working with other scientists. But even our project managers and our pathologists and toxicologists, they’re all involved in the sale, and our leadership team, they’re all involved in the sale process. So I don’t want to say we just have a — it’s just not a sales team. It’s an organization that is designed to sell to the biotech customer.
Matt Hewitt: Understood. And then maybe one last one and I will hop back…
Bob Leasure: … on the DSA side. On the RMS side now, we’re developing relationships with universities, CROs, large pharma and that’s a whole other sales and marketing team.
Matt Hewitt: Got it. Understood. And then maybe last one. Regarding Rockville, obviously, you’re seeing some nice early returns from that expansion. When does that get to profitability? Is that later this year? Do you think it may take a little bit longer? Is there kind of a threshold or a sales amount when it kind of gets to that break-even level? Thank you.
Bob Leasure: Yeah. Well, that’s a great question and for me it’s not going to happen soon enough, because we still are investing in startup costs there and the margins are negative at the moment. I think that we’re currently probably about 25% of our capacity. I think we need to be closer to 40%, 45% of capacity to break even. So, I think, we still have — we still may have a couple quarters to go. If we have a couple quarters like we did last quarter, we’re going to get there very quickly. But even when we ramp it up at that level, we — sometimes I’ll tell you that we’ve even taken on so much work, we have — even though we have the capability, we outsource it just not to be late with customers. We — so we’re trying to — we want to bring it up, but we’d like to bring it up faster, but I still think we’re probably — we’re more than halfway there.
