We are confident that as the system becomes more established in the field, there’s more word of mouth, the reputation of the G4’s is in more customer hands. That that will help. And then we also think that, again, getting F3 and Max Reads and people talking about it will help. And then we also think time will help. In a lot of ways, Dan, for a new entrant, w e do have — we’re looking at 13 to 14 quarters of runway. We have multiple products coming out next year that we’re really excited about that will leverage the current install base. So our strategy right now is really build the installed base, continue to fill the funnel, do everything we can to convert through bottom of funnel, and then leverage that growing install base next year with some very exciting kits that will be released in the mid to second half of the year.
Operator: Your next question is coming from Matt Sykes with Goldman Sachs.
Matt Sykes: Maybe following up on one of Dan’s question. Just on the increased shipment perspective that you guys gave. I know that previously you’ve given the context of two to four shipments per month, h ow should we think about that previous guidance in the context of the shift and the go-to-market strategy with increasing reagent rentals driving maybe higher level of shipments over time?
Drew Spaventa: So we’ve got five out in Q3, Matt. We would expect Q4 to be an increase over Q3, although I don’t think we’re at a point where we have enough confidence we can tell you exactly where we’ll land. I think moving into next year, that’s we’re planning to see a more significant jump quarter over quarter. And in terms of being more aggressive, it’s — there’s been situations prior where we’ve made a decision not to go forward with a for various reasons. And I think we’re just starting to widen the aperture in terms of what we consider for a placement and what we advance into that PO and placement. So we do think that we will be able to grow that installed base quite significantly with this change in strategy and the revised product mix and a few other things that are just trending positively internally.
Matt Sykes: Got it. And then your commentary on things dropping out of the — prospects dropping out of the funnel, do you get a sense that the — for the ones that dropped out, are they looking at alternative purchases of computing equipment, o r is it just an overall delay in just the purchase itself and they’re thinking longer about it? Just want to get the context for the competitive environment that you’re sitting in.
Drew Spaventa: I think there’s a few different reasons. First, from the competitive aspect, there is more competition. Alumina is being more aggressive in how they discount and trying to do accretive deals to not lose placements to Singular. In terms of things taking longer, t hat’s been a trend that we’ve seen throughout the year a nd it’s still continuing, where And then just my last question, Dalen, for you. Just on the cost cutting that you did. I know that the R&D dropped year over year as you kind of went commercial on G4. But can you maybe give us some context of those cost cutting that you did, the splits between SG&A and R&D? How it is kind of laid out?
Dalen Meeter: Yeah. Sure, Matt. We — in October, we completed a small reduction in force of about 10% of the workforce. Now, it’s about 30 — approximately 30 people. It really was across the organization, probably more heavily weighted on the R&D side of the house just being tied to different project decisions a nd priorities like Drew had mentioned. Thinking across that holistically is part of our annual strategic planning and operating plan process. What are the highest priority activities and projects that we’re going to focus on? So really, it was spread across the entire organization, a little bit more heavily weighted on R&D side.
Operator: Your next question is coming from John Sourbeer with UBS.
John Sourbeer: Hey, Drew, I think in the prepared remarks you mentioned there was a customer that had gotten up to 175,000 on pull through. Just any additional color there? Are they using both the F3 and Max? Do you think the other customers can get there and just any additional color on where you think pull-through can go from there?
Drew Spaventa: Absolutely. This customer is an acadmic core. They are servicing a number of PIs. They do a whole host of different sequencing, a lot of single cell sequencing. They’ve migrated almost 100% onto the F3 now a nd they will also, I think, has begun ordering Max Read kits, which is just recently available, and they will likely do a lot of Max Read as well. So that’s kind of the nature of that customer. I think there are other customers that are similar. What we have found is a lot of times in these G’s core lab environments, it’s really getting the people doing the work, the customers of the core, so to speak, to elect and decide to put work onto the G4. And sometimes it takes time to have them start to select that machine versus other machines.
