Question-and-Answer Session
Operator
(Operator instructions) And your first question comes from the line of Ross Muken with Deutsche Bank. You may proceed.
Ross Muken – Deutsche Bank
Good afternoon, gentlemen.
Jay Flatley
Hi, Ross.
Christian Henry
Hi, Ross.
Ross Muken – Deutsche Bank
Jay, I want to talk first about, sort of the sequential ramp of revenues as they are, sort of expected, it seems now as if there is a bit of stimulus assumed in the fourth quarter given the delta and the acceleration quarter-over-quarter versus 3Q, so can you kind of go through, I know you pointed to the areas and so the code activities, so the level of confidence you have in sort of that uptick, you know is it going to be a function of just the general markets accelerating or are there certain pockets, or orders, or certain grants that hit then that give you a high degree of confidence, just try to walk us through the methodology of how you, sort of, solved that initial ramp, but I realized the timing aspect is a challenging one.
Jay Flatley
Yes, it is. We are hopeful to begin to see some stimulus orders in Q3. We are not sure what that magnitude might look like, and so we have taken a cautious approach to our guidance and given a wide range. As I mentioned on the call earlier in the month, you know one particular dilemma is that the government fiscal year ends on September 30 and our quarter ends on September 27.
And there is a very significant push from the NIH and from the Federal Government to get stimulus money into the system before the end of the government fiscal year, which is September 30 date. So, the degree of our impact in Q3 will depend very significantly on the exact timing of how that money gets allocated and when the orders actually start appearing.
If they begin to appear in August and September, we will have some material revenue from those. If it all happens in the last week of September, we would very likely have little to no impact from that revenue. We are very optimistic that we will begin to see stimulus impact in Q4.
And so you will see, you know if you looked at our annual guidance and our Q3 guidance that we do have some stimulus impact built into the fourth quarter guidance that we are highly confident of and these are orders that are in our pipeline, where we're getting feedback from researchers that they are being awarded high scores, they were starting to hear of some of the research groups that are getting scores back on their grants. And so that is a very positive trend and one that we are very confident in for the fourth quarter.
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