Ron Menezes: So we did give the OpEx guidance, which is significantly lower than our current year but it’s not that uncommon for us. We were under $80 million in OpEx, non-GAAP OpEx in 2021 while growing 47%. We did a lot of work, as you’re aware, in 2021 in terms of investment moving our distribution center from California to Wisconsin, new ERP system. Our order-to-cash process is much more efficient than it once was. So we have naturally baked in efficiencies that we’re modeling out to show us running at basically $20 million or less quarterly expense. So we demonstrated through 2022 that we kept dropping on our OpEx expense quarter to quarter to quarter. So that’s where we’re basically exiting at a run rate that we expect the guidance to hit.
Operator: The next question will come from Jon Block with Stifel.
Jon Block: Ron, maybe the first one might actually build on that last question, which is it’s an exciting year for you guys. You’ve got momentum in the breast business and you’ve got some new products as well. But then you’re also taking down that OpEx from roughly $92 million, the non-GAAP to roughly $80 million at the midpoint and even below the run rate. So maybe, Ron, if you could talk to your confidence and your ability to do that? And maybe more importantly, doing that while still being able to fully capitalize on these new product launches and gain significant momentum with those new product launches throughout the year? Maybe as a function of that if you can give us a little bit of a better feel for where those cuts are going to fall if they’re going to be more on the G&A side rather than ?
Ron Menezes: Jon, I’ll start and then Andy you do specifics. But we did take a hard look on the last six months of 2022 as a whole organization. And what areas from efficiencies it makes sense to be smarter where we spend the money. We also had to make some tough decisions at the beginning of the year — this year and ensure that we have enough support for the company across our organization. And we have to make some tough decisions from total personnel to ensure we have the pathway to free cash flow at the end of the year. But for our ability to drive the number I just shared, yes, we’re very, very confident. We’re very analytical and systematic and understanding where we have support in commercial, where we have support in sales and where we maybe have areas who could be more efficient in headquarters and in different areas of the company.
So I’m very confident with our current structure. We’re well positioned to support the launch of Viality and also the addition of SimpliDerm. It’s the same customer, they’re promoting right now tissue expanders, the same customer are talking about implants, and Viality it works on both sides, the cosmetic side and the reconstruction side.
Andy Schmidt: So let me just give you a few easy examples. As Ron said, it’s really corporate wide where we’re seeing the cost efficiencies. Sales and marketing, the easiest one to look at is our shipping expense. Now that we have the DC, it has been running fantastic and is very efficient and shipping from the middle of the country. We’ve taken out already $5 million in shipping expense, that hits in the sales and marketing line. Also, again, supply chain is working much better. And so we have now much more competitive shipping rates. So that’s one example that way. In R&D, we put in significant investment this year to get the Viality, our launch kicked off, that’s not a recurring expense. So that gets behind us. G&A likewise.
