Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Ross Mukin at Deutsche Bank. Go ahead.
Ross Mukin – Deutsche Bank Securities
On the consumable pull through for the Bead stations can you talk about obviously now the HD product is coming to market, what does that do on sort of an annual basis in terms of consumable throughput per instrument. Should we see that likely trend up? Stay constant? Trend down? What’s sort of the trajectory there at that piece of the business?
Jay T. Flatley
Well, the consumables per Bead station Ross as you know, has been running sort of in the range of $600,000 per year per installed unit and we have continued to sort of run in that range. Probably what you’ll see with the new chips is somewhat of an uptick in that number over the next few quarters and then sort of consistent with our previous discussion it will probably drift down after that as we continue to install Bead stations more broadly in the market and the average utilization rate across the entire installed base goes down some. The second consideration is also the fact that we are running right now at 100% capacity in the production of BeadChips. So, we could probably ship more BeadChips from a demand perspective than we currently have on the supply side although we’re working really hard to make sure that we’re trying to keep up with the market and getting better at that over the next couple of quarters.
Ross Mukin – Deutsche Bank Securities
And on the sequencing of the business could you talk a bit about sort of customer adoption and ordering habits based on sort of the different groupings whether its genome centers, core labs, the ag bio guys, any pharma biotech, sort of what you’ve seen in terms of the initial rounds? Have we seen customers come back and do multiple orders? Just sort of set the landscape for how it’s sort of developing in the different customer groups.
Jay T. Flatley
Let me start that off and Christian may have something to add to it. I would say overall that the customers that have had these units in their lab now for more than a quarter are beginning to put them into true production environments and we’re beginning to see some of the genome center customers take these from sort of the situation where they’re exploring range of application and different technologies and different parameters with the system and pushing them into true production environments. So, we’ve begun to see very strong repeat orders from these customers, on the consumables side. It’s a little early to know exactly where the consumable per system is going to shake out but we continue to feel good about our estimates that it’s sort of in the $150 to $200,000 ranges as we begin to be able to measure that more consistently.
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