BURLINGTON, Mass., May 8, 2024
/PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported
financial results for the second quarter ended March 31, 2024.
|
|
|
Quarter
Ended
|
|
Dollars in millions, except per share
data
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
Change
|
|
|
2024
|
|
2023
|
|
2023
|
|
Prior
Qtr
|
|
Prior
Yr.
|
|
Revenue from Continuing
Operations
|
|
$
|
159
|
|
$
|
154
|
|
$
|
148
|
|
3
|
%
|
|
7
|
%
|
|
Organic
growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
%
|
|
Sample Management
Solutions
|
|
$
|
74
|
|
$
|
79
|
|
$
|
71
|
|
(6)
|
%
|
|
4
|
%
|
|
Multiomics
|
|
$
|
62
|
|
$
|
63
|
|
$
|
62
|
|
(1)
|
%
|
|
(0)
|
%
|
|
B Medical
Systems
|
|
$
|
23
|
|
$
|
13
|
|
$
|
15
|
|
81
|
%
|
|
51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS Continuing
Operations
|
|
$
|
(2.47)
|
|
$
|
(0.28)
|
|
$
|
(0.03)
|
|
nm
|
|
|
nm
|
|
|
Diluted EPS
Total
|
|
$
|
(2.47)
|
|
$
|
(0.28)
|
|
$
|
(0.07)
|
|
nm
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted EPS
Continuing Operations
|
|
$
|
0.05
|
|
$
|
0.02
|
|
$
|
(0.06)
|
|
102
|
%
|
|
184
|
%
|
|
Adjusted EBITDA -
Continuing Operations
|
|
$
|
9
|
|
$
|
5
|
|
$
|
(2)
|
|
107
|
%
|
|
493
|
%
|
|
Adjusted EBITDA
Margin - Continuing Operations
|
|
|
5.9 %
|
|
|
3.0 %
|
|
|
(1.6) %
|
|
|
|
|
|
|
|
Management Comments
"We saw continued momentum
in the second quarter with strong organic revenue growth, and
improved profitability as a result of our ongoing cost reduction
and transformation initiatives," stated Steve Schwartz, President and CEO. "This marks
our fourth consecutive quarter of positive free cash flow. And as
noted during our Investor Day in March, we are confident in our
position and the market opportunity which we are uniquely
positioned to capture."
Second Quarter Fiscal 2024 Results
- Revenue was $159 million, up 7%
year over year. Organic revenue, which excludes the impacts from
foreign exchange, was also up 7% year over year, with a nominal
benefit from foreign exchange tailwinds. The year-over-year revenue
increase was attributable to higher B Medical Systems ("B Medical")
and Sample Management Solutions revenues. The combined Sample
Management Solutions and Multiomics business segments grew 2% on an
organic basis. The Consumables and Instruments ("C&I") product
line remained a headwind to growth in the second quarter, largely
attributable to instruments softness. Excluding the C&I product
line, organic revenue grew 9% year-over-year.
- Sample Management Solutions revenue was $74 million, up 4% year over year.
- Organic revenue grew 3%, mainly driven by continued strength in
large-automated Store Systems and Sample Repository Solutions,
partially offset by a year-over-year revenue decline in the C&I
product line. Excluding the C&I product line, the segment grew
8% on an organic basis.
- Multiomics revenue was $62
million, flat year over year.
- Organic revenue grew 1% year over year, primarily driven by
growth in Gene Synthesis services, partially offset by a
year-over-year decline in Sanger sequencing revenue.
- B Medical Systems revenue was $23
million, up 51% year over year.
- Organic revenue grew 49% year over year. The
better-than-expected revenue in the quarter was mainly due to the
materialization of additional cold chain solution orders received
during the period.
Summary of GAAP Earnings Results
- Operating loss was $147 million.
Operating margin was (92.3%), compared to (8.7%) in the second
quarter fiscal year 2023.
- Gross margin was 39.8%, an improvement of 400 basis points year
over year, mainly driven by higher revenue.
- Operating expenses were $210
million, up 218% year over year, and included a $111.3 million non-cash goodwill impairment
charge related to the B Medical segment and a $4.7 million non-cash intangible asset impairment
charge related to the discontinuation of the sample sourcing
product offering (a product line within the Sample Management
Solutions segment), as well as costs for restructuring and
transformation. The year-over-year increase was driven by the
goodwill and intangible asset impairments, transformation costs,
and higher restructuring costs, partially offset by a prior year
one-time non-cash benefit of $17
million related to the reversal of the fair value of B
Medical contingent consideration.
- Other income included $9.6
million of net interest income versus $10.4 million in the prior year period.
- Diluted EPS from continuing operations was ($2.47) compared to ($0.03) in the second quarter of fiscal year
2023.
Summary of Non-GAAP Earnings Results
- Operating loss was $6 million.
Operating margin was (3.6%), an improvement of 530 basis points
year over year.
- Gross margin was 44.3%, an improvement of 310 basis points year
over year, mainly driven by higher revenue and operating
efficiency.
- Operating expense in the quarter was $76
million, up 3% year over year, primarily driven by the
year-over-year increase in stock-based compensation and higher
commissions expense in B Medical which offset the benefit from cost
reduction actions.
- Adjusted EBITDA was $9 million,
and Adjusted EBITDA margin was 5.9%, an improvement of 750 basis
points year over year.
- Diluted EPS was $0.05, compared
to ($0.06) one year ago.
Cash and Liquidity as of March 31,
2024
- The Company ended the quarter with a total balance of cash,
cash equivalents, restricted cash and marketable securities of
$975 million.
- Operating cash flow was $8
million in the quarter. Capital expenditures were
$7 million, and free cash flow (cash
flow from operations less capital expenditures) was $2 million.
Share Repurchase Program Update
- In the second quarter, the Company repurchased 1.2 million
shares for $73.9 million under a
10b5-1 trading program.
- As of March 31, 2024, the Company
repurchased 20.9 million shares of common stock for $1.025 billion under the 2022 Repurchase
Authorization. In fiscal year 2024, the Company intends to complete
the full capacity of the $1.5 billion
share repurchase authorization announced in November 2022.
Guidance for Continuing Operations for Full Year Fiscal
2024
- The Company is lowering revenue guidance for fiscal year 2024
while raising earnings guidance:
- Total revenue is now expected to be in the range of
$659 to $671
million due to the timing of B Medical revenue.
- Total organic revenue in the range of down 1% to up 1% relative
to fiscal year 2023.
- Adjusted EBITDA margin expansion is expected to be
approximately 300 basis points.
- Non-GAAP diluted earnings per share is expected to be in the
range of $0.27 to $0.37.
Conference Call and Webcast
Azenta management will
webcast its second quarter fiscal 2024 earnings conference call
today at 4:30 p.m. Eastern Time.
During the call, Company management will respond to questions
concerning, but not limited to, the Company's financial
performance, business conditions and industry outlook. Management's
responses could contain information that has not been previously
disclosed.
The call will be broadcast live over the Internet and, together
with presentation materials referenced on the call, will be hosted
at the Investor Relations section of Azenta's website at
https://investors.azenta.com/events and will be archived online on
this website for convenient on-demand replay. In addition,
Participants may access the call using the following. online
registration link. Registrants will receive confirmation
containing dial in details and a unique conference call code for
entry.
Regulation G – Use of Non-GAAP financial Measures
The
Company supplements its GAAP financial measures with certain
non-GAAP financial measures to provide investors a perspective on
the results of business operations, which the Company believes is
comparable to the similar analyses provided by its peers. These
measures are not presented in accordance with, nor are they a
substitute for, U.S. generally accepted accounting principles, or
GAAP. These measures should always be considered in conjunction
with appropriate GAAP measures. A reconciliation of non-GAAP
measures to the most nearly comparable GAAP measures is included at
the end of this release following the consolidated balance sheets,
statements of operations and statements of cash flows. Certain
amounts in the tables that supplement the consolidated financial
statements may not sum due to rounding. All percentages are
calculated using unrounded amounts.
"Safe Harbor Statement" under Section 21E of the Securities
Exchange Act of 1934
Some statements in this release are
forward-looking statements made under Section 21E of the Securities
Exchange Act of 1934. These statements are neither promises nor
guarantees but involve risks and uncertainties, both known and
unknown, that could cause Azenta's financial and business results
to differ materially from our expectations. They are based on the
facts known to management at the time they are made.
Forward-looking statements include but are not limited to
statements about our revenue and earnings expectations, our ability
to realize margin improvement from cost reductions, and our ability
to deliver financial success in the future and otherwise related to
future operating or financial performance and opportunities.
Factors that could cause results to differ from our expectations
include the following: our ability to reduce costs
effectively; the volatility of the life sciences markets the
Company serves; our possible inability to meet demand for our
products due to difficulties in obtaining components and materials
from our suppliers in required quantities and of required quality;
the inability of customers to make payments to us when due; price
competition; disputes concerning intellectual property;
uncertainties in global political and economic conditions; our
ability to successfully invest the cash proceeds from the sale of
our Semiconductor Automation business; and other factors and other
risks, including those that we have described in our filings with
the Securities and Exchange Commission, including but not limited
to our Annual Report on Form 10-K, Current Reports on Form 8-K and
our Quarterly Reports on Form 10-Q. As a result, we can provide no
assurance that our future results will not be materially different
from those projected. Azenta expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statement to reflect any change in our expectations or any
change in events, conditions, or circumstances on which any such
statement is based. Azenta undertakes no obligation to update the
information contained in this press release.
About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA)
is a leading provider of life sciences solutions worldwide,
enabling impactful breakthroughs and therapies to market faster.
Azenta provides a full suite of reliable cold-chain sample
management solutions and multiomics services across areas such as
drug development, clinical research and advanced cell therapies for
the industry's top pharmaceutical, biotech, academic and healthcare
institutions globally. Our global team delivers and supports these
products and services through our industry-leading brands,
including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro,
Barkey, and B Medical Systems.
Azenta is headquartered in Burlington,
Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit
www.azenta.com.
AZENTA INVESTOR CONTACTS:
Yvonne Perron
Vice President, Financial Planning & Analysis and Investor
Relations
ir@azenta.com
Sherry Dinsmore
sherry.dinsmore@azenta.com
|
AZENTA, INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(unaudited)
(In thousands, except
per share data)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
59,017
|
|
$
|
51,917
|
|
$
|
112,410
|
|
$
|
137,715
|
|
Services
|
|
|
100,117
|
|
|
96,484
|
|
|
201,041
|
|
|
189,052
|
|
Total
revenue
|
|
|
159,134
|
|
|
148,401
|
|
|
313,451
|
|
|
326,767
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
41,658
|
|
|
40,009
|
|
|
78,496
|
|
|
94,108
|
|
Services
|
|
|
54,091
|
|
|
55,156
|
|
|
110,058
|
|
|
105,558
|
|
Total cost of
revenue
|
|
|
95,749
|
|
|
95,165
|
|
|
188,554
|
|
|
199,666
|
|
Gross profit
|
|
|
63,385
|
|
|
53,236
|
|
|
124,897
|
|
|
127,101
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
8,707
|
|
|
8,520
|
|
|
17,200
|
|
|
16,056
|
|
Selling, general and
administrative
|
|
|
78,314
|
|
|
73,339
|
|
|
156,890
|
|
|
165,891
|
|
Impairment of goodwill
and intangible assets
|
|
|
115,975
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
Contingent
consideration - fair value adjustments
|
|
|
—
|
|
|
(17,145)
|
|
|
—
|
|
|
(17,145)
|
|
Restructuring
charges
|
|
|
7,344
|
|
|
1,499
|
|
|
8,464
|
|
|
2,961
|
|
Total operating
expenses
|
|
|
210,340
|
|
|
66,213
|
|
|
298,529
|
|
|
167,763
|
|
Operating
loss
|
|
|
(146,955)
|
|
|
(12,977)
|
|
|
(173,632)
|
|
|
(40,662)
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
|
9,565
|
|
|
10,394
|
|
|
19,646
|
|
|
21,059
|
|
Other income (expense),
net
|
|
|
250
|
|
|
(2,668)
|
|
|
932
|
|
|
(1,523)
|
|
Loss before income
taxes
|
|
|
(137,140)
|
|
|
(5,251)
|
|
|
(153,054)
|
|
|
(21,126)
|
|
Income tax
benefit
|
|
|
(260)
|
|
|
(3,260)
|
|
|
(450)
|
|
|
(7,900)
|
|
Income (loss) from
continuing operations
|
|
|
(136,880)
|
|
|
(1,991)
|
|
|
(152,604)
|
|
|
(13,226)
|
|
Loss from discontinued
operations, net of tax
|
|
|
—
|
|
|
(2,936)
|
|
|
—
|
|
|
(2,936)
|
|
Net loss
|
|
$
|
(136,880)
|
|
$
|
(4,927)
|
|
$
|
(152,604)
|
|
$
|
(16,162)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
(2.47)
|
|
$
|
(0.03)
|
|
$
|
(2.72)
|
|
$
|
(0.19)
|
|
Loss from discontinued
operations, net of tax
|
|
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.04)
|
|
Basic net loss per
share
|
|
$
|
(2.47)
|
|
$
|
(0.07)
|
|
$
|
(2.72)
|
|
$
|
(0.23)
|
|
Diluted net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
(2.47)
|
|
$
|
(0.03)
|
|
$
|
(2.72)
|
|
$
|
(0.19)
|
|
Loss from discontinued
operations, net of tax
|
|
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.04)
|
|
Diluted net loss per
share
|
|
$
|
(2.47)
|
|
$
|
(0.07)
|
|
$
|
(2.72)
|
|
$
|
(0.23)
|
|
Weighted average shares
used in computing net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
55,440
|
|
|
69,111
|
|
|
56,078
|
|
|
70,858
|
|
Diluted
|
|
|
55,440
|
|
|
69,111
|
|
|
56,078
|
|
|
70,858
|
|
AZENTA, INC.
CONSOLIDATED BALANCE
SHEETS
(unaudited)
(In thousands, except
share and per share data)
|
|
|
|
March 31,
|
|
September 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
353,491
|
|
$
|
678,910
|
|
Short-term
marketable securities
|
|
|
468,220
|
|
|
338,873
|
|
Accounts
receivable, net of allowance for expected credit losses ($6,844
and
$8,057,
respectively)
|
|
|
154,668
|
|
|
156,535
|
|
Inventories
|
|
|
122,351
|
|
|
128,198
|
|
Derivative
asset
|
|
|
350
|
|
|
13,036
|
|
Short-term
restricted cash
|
|
|
3,089
|
|
|
4,650
|
|
Prepaid expenses
and other current assets
|
|
|
87,897
|
|
|
98,754
|
|
Total current
assets
|
|
|
1,190,066
|
|
|
1,418,956
|
|
Property, plant and
equipment, net
|
|
|
200,905
|
|
|
205,744
|
|
Long-term marketable
securities
|
|
|
143,018
|
|
|
111,338
|
|
Long-term deferred tax
assets
|
|
|
925
|
|
|
571
|
|
Operating lease
right-of-use assets
|
|
|
69,662
|
|
|
66,580
|
|
Goodwill
|
|
|
681,140
|
|
|
784,339
|
|
Intangible assets,
net
|
|
|
267,626
|
|
|
294,301
|
|
Other assets
|
|
|
10,155
|
|
|
3,891
|
|
Total
assets
|
|
$
|
2,563,497
|
|
$
|
2,885,720
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
37,319
|
|
$
|
35,796
|
|
Deferred
revenue
|
|
|
38,323
|
|
|
34,614
|
|
Accrued warranty
and retrofit costs
|
|
|
9,745
|
|
|
10,223
|
|
Accrued
compensation and benefits
|
|
|
27,985
|
|
|
33,911
|
|
Accrued customer
deposits
|
|
|
21,772
|
|
|
17,707
|
|
Accrued income
taxes payable
|
|
|
10,706
|
|
|
7,378
|
|
Short-term
operating lease liability
|
|
|
10,802
|
|
|
9,499
|
|
Accrued expenses
and other current liabilities
|
|
|
46,347
|
|
|
61,800
|
|
Total current
liabilities
|
|
|
202,999
|
|
|
210,928
|
|
Long-term tax
reserves
|
|
|
377
|
|
|
380
|
|
Long-term deferred tax
liabilities
|
|
|
62,267
|
|
|
67,301
|
|
Long-term operating
lease liabilities
|
|
|
63,374
|
|
|
60,436
|
|
Other long-term
liabilities
|
|
|
11,609
|
|
|
12,175
|
|
Total
liabilities
|
|
|
340,626
|
|
|
351,220
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value - 1,000,000 shares authorized, no shares issued
or
outstanding
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par
value - 125,000,000 shares authorized, 68,464,925
shares issued and
54,614,041 shares outstanding at March 31, 2024,
71,294,247
shares issued and
57,832,378 shares outstanding at September 30, 2023
|
|
|
681
|
|
|
713
|
|
Additional paid-in
capital
|
|
|
999,333
|
|
|
1,156,160
|
|
Accumulated other
comprehensive loss
|
|
|
(41,728)
|
|
|
(62,426)
|
|
Treasury stock, at cost
- 13,850,884 shares at March 31, 2024 and 13,461,869
shares at September 30, 2023
|
|
|
(223,820)
|
|
|
(200,956)
|
|
Retained
earnings
|
|
|
1,488,405
|
|
|
1,641,009
|
|
Total stockholders'
equity
|
|
|
2,222,871
|
|
|
2,534,500
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,563,497
|
|
$
|
2,885,720
|
|
AZENTA, INC.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(152,604)
|
|
$
|
(16,162)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
44,214
|
|
|
42,140
|
|
Impairment of
goodwill and intangible assets
|
|
|
115,975
|
|
|
—
|
|
Non-cash
write-offs of assets
|
|
|
6,966
|
|
|
—
|
|
Stock-based
compensation
|
|
|
8,804
|
|
|
6,096
|
|
Contingent
consideration adjustment
|
|
|
—
|
|
|
(17,145)
|
|
Amortization and
accretion on marketable securities
|
|
|
(2,084)
|
|
|
(5,284)
|
|
Deferred income
taxes
|
|
|
(9,456)
|
|
|
(20,843)
|
|
Purchase
accounting impact on inventory
|
|
|
—
|
|
|
5,781
|
|
Loss on
disposals of property, plant and equipment
|
|
|
260
|
|
|
31
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
2,922
|
|
|
23,925
|
|
Inventories
|
|
|
7,975
|
|
|
(11,504)
|
|
Accounts
payable
|
|
|
936
|
|
|
(5,677)
|
|
Deferred
revenue
|
|
|
3,379
|
|
|
3,625
|
|
Accrued warranty and
retrofit costs
|
|
|
(714)
|
|
|
622
|
|
Accrued compensation
and tax withholdings
|
|
|
(6,153)
|
|
|
(21,797)
|
|
Accrued restructuring
costs
|
|
|
1,454
|
|
|
820
|
|
Other assets and
liabilities
|
|
|
12,913
|
|
|
(23,798)
|
|
Net cash provided by
(used in) operating activities
|
|
|
34,787
|
|
|
(39,170)
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(18,746)
|
|
|
(21,705)
|
|
Purchases of marketable
securities
|
|
|
(345,447)
|
|
|
(233,584)
|
|
Sales and maturities of
marketable securities
|
|
|
190,504
|
|
|
728,171
|
|
Net investment hedge
settlement
|
|
|
1,476
|
|
|
29,313
|
|
Acquisitions, net of
cash acquired
|
|
|
—
|
|
|
(387,665)
|
|
Net cash provided by
(used in) investing activities
|
|
|
(172,213)
|
|
|
114,530
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Payments of finance
leases
|
|
|
(386)
|
|
|
(230)
|
|
Withholding tax
payments on net share settlements on equity awards
|
|
|
—
|
|
|
(4,906)
|
|
Share
repurchases
|
|
|
(186,834)
|
|
|
(500,000)
|
|
Net cash used in
financing activities
|
|
|
(187,220)
|
|
|
(505,136)
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
|
|
4,721
|
|
|
60,355
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(319,925)
|
|
|
(369,421)
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
684,045
|
|
|
1,041,296
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
|
364,120
|
|
$
|
671,875
|
|
Supplemental
disclosures:
|
|
|
|
|
|
|
|
Cash paid for income
taxes, net
|
|
|
5,008
|
|
|
35,286
|
|
Reconciliation of cash,
cash equivalents and restricted cash to the condensed consolidated
balance sheets
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
Cash and cash
equivalents of continuing operations
|
|
$
|
353,491
|
|
$
|
678,910
|
|
Short-term restricted
cash
|
|
|
3,089
|
|
|
4,650
|
|
Long-term restricted
cash included in other assets
|
|
|
7,540
|
|
|
485
|
|
Total cash, cash
equivalents and restricted cash shown in the condensed consolidated
statements of cash flows
|
|
$
|
364,120
|
|
$
|
684,045
|
Notes on Non-GAAP Financial Measures
Non-GAAP
financial measures are used in addition to and in conjunction with
results presented in accordance with GAAP and should not be relied
upon to the exclusion of GAAP financial measures. Management
adjusts the GAAP results for the impact of amortization of
intangible assets, restructuring charges, purchase price accounting
adjustments and charges related to M&A, non-recurring costs
related to the Company's business transformation initiatives and
share repurchases to provide investors better perspective on the
results of operations which the Company believes is more comparable
to the similar analysis provided by its peers. Management also
excludes special charges and gains, such as impairment losses,
gains and losses from the sale of assets, certain tax benefits and
charges, as well as other gains and charges that are not
representative of the normal operations of the business. Management
strongly encourages investors to review our financial statements
and publicly filed reports in their entirety and not rely on any
single measure.
|
|
Quarter Ended
|
|
|
March 31, 2024
|
|
December 31, 2023
|
|
March 31, 2023
|
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
|
Amounts in
thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
|
$
|
|
share
|
|
Net income (loss) from
continuing operations
|
|
$
|
(136,880)
|
|
$
|
(2.47)
|
|
$
|
(15,724)
|
|
$
|
(0.28)
|
|
$
|
(1,991)
|
|
$
|
(0.03)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
6,373
|
|
|
0.11
|
|
|
5,627
|
|
|
0.10
|
|
|
4,901
|
|
|
0.07
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
|
0.04
|
|
Amortization of other
intangible assets
|
|
|
6,654
|
|
|
0.12
|
|
|
6,862
|
|
|
0.12
|
|
|
7,509
|
|
|
0.11
|
|
Transformation costs
(1)
|
|
|
4,446
|
|
|
0.08
|
|
|
41
|
|
|
0.00
|
|
|
10
|
|
|
0.00
|
|
Restructuring and
restructuring related charges
|
|
|
7,344
|
|
|
0.13
|
|
|
1,120
|
|
|
0.02
|
|
|
1,499
|
|
|
0.02
|
|
Impairment of goodwill
and intangible assets
|
|
|
115,975
|
|
|
2.09
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Contingent
consideration - fair value adjustments
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
|
(0.25)
|
|
Merger and acquisition
costs and costs related to share repurchase
(2)
|
|
|
426
|
|
|
0.01
|
|
|
4,321
|
|
|
0.08
|
|
|
19
|
|
|
0.00
|
|
Tax adjustments
(3)
|
|
|
1,659
|
|
|
0.03
|
|
|
1,858
|
|
|
0.03
|
|
|
56
|
|
|
0.00
|
|
Tax effect of
adjustments
|
|
|
(3,200)
|
|
|
(0.06)
|
|
|
(2,688)
|
|
|
(0.05)
|
|
|
(1,934)
|
|
|
(0.03)
|
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
2,797
|
|
$
|
0.05
|
|
$
|
1,417
|
|
$
|
0.02
|
|
$
|
(4,164)
|
|
$
|
(0.06)
|
|
Stock
based compensation, pre-tax
|
|
|
5,602
|
|
|
0.10
|
|
|
3,202
|
|
|
0.06
|
|
|
3,991
|
|
|
0.06
|
|
Tax
rate
|
|
|
15
|
%
|
|
—
|
|
|
12
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
Stock-based
compensation, net of tax
|
|
|
4,762
|
|
|
0.09
|
|
|
2,818
|
|
|
0.05
|
|
|
3,392
|
|
|
0.05
|
|
Non-GAAP adjusted net income excluding stock-based
compensation - continuing operations
|
|
$
|
7,559
|
|
$
|
0.14
|
|
$
|
4,235
|
|
$
|
0.07
|
|
$
|
(772)
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
55,440
|
|
|
—
|
|
|
56,709
|
|
|
—
|
|
|
69,111
|
|
|
Six Months
Ended
|
|
|
|
March 31, 2024
|
|
March 31, 2023
|
|
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
|
|
Amounts in
thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
|
|
Net loss from
continuing operations
|
|
$
|
(152,604)
|
|
$
|
(2.72)
|
|
$
|
(13,226)
|
|
$
|
(0.19)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
12,000
|
|
|
0.21
|
|
|
9,070
|
|
|
0.13
|
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
—
|
|
|
5,781
|
|
|
0.08
|
|
|
Amortization of other
intangible assets
|
|
|
13,516
|
|
|
0.24
|
|
|
14,882
|
|
|
0.21
|
|
|
Transformation
costs(1)
|
|
|
4,487
|
|
|
0.08
|
|
|
(55)
|
|
|
(0.00)
|
|
|
Restructuring and
restructuring related charges
|
|
|
8,464
|
|
|
0.15
|
|
|
2,961
|
|
|
0.04
|
|
|
Impairment of goodwill
and intangible assets
|
|
|
115,975
|
|
|
2.07
|
|
|
—
|
|
|
—
|
|
|
Contingent
consideration - fair value adjustments
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
|
(0.24)
|
|
|
Merger and acquisition
costs and costs related to share repurchase
(2)
|
|
|
4,747
|
|
|
0.08
|
|
|
11,857
|
|
|
0.17
|
|
|
Indemnification asset
release
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
|
(0.00)
|
|
|
Tax adjustments
(3)
|
|
|
3,517
|
|
|
0.06
|
|
|
(1,380)
|
|
|
(0.02)
|
|
|
Tax effect of
adjustments
|
|
|
(5,888)
|
|
|
(0.10)
|
|
|
(7,934)
|
|
|
(0.11)
|
|
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
4,214
|
|
$
|
0.08
|
|
$
|
4,790
|
|
$
|
0.07
|
|
|
Stock-based
compensation, pre-tax
|
|
|
8,804
|
|
|
0.16
|
|
|
6,217
|
|
|
0.09
|
|
|
Tax
rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
|
Stock-based
compensation, net of tax
|
|
|
7,483
|
|
$
|
0.13
|
|
|
5,284
|
|
|
0.07
|
|
|
Non-GAAP
adjusted net income excluding stock-based compensation
- continuing
operations
|
|
$
|
11,697
|
|
$
|
0.21
|
|
$
|
10,074
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
56,078
|
|
|
—
|
|
|
70,858
|
|
|
|
|
(1)
|
Transformation costs
represent non-recurring expenses for strategic projects with
anticipated long-term benefits to the Company focused on cost
reduction and productivity improvement that do not meet the
definition of restructuring charges. These costs are directed at
simplifying, standardizing, streamlining, and optimizing the
Company's operations, processes and systems to permanently alter
the Company's operations for the long term. For a project to be
considered transformational, successful completion of the project
must be expected to bring long-term material benefits to the
organization and involve significant changes to process and/or
underlying technology. Transformation costs in the period result
from actions taken as part of the Company's 2024 transformation
plan, and primarily relate to one time asset write downs associated
with changes in technology, one time inventory write downs relating
to restructuring actions taken in the period, and third-party
consulting costs associated with process & systems
re-design.
|
|
(2)
|
Includes expenses
related to governance-related matters.
|
|
(3)
|
Tax adjustments during
all periods include adjustments to tax benefits related to stock
compensation. These adjustments are recognized in the period of
vesting for US GAAP but included in the annual effective tax rate
for Non-GAAP reporting. Tax adjustments for the six months ended
March 31, 2024, exclude the impact of recording valuation allowance
adjustments against U.S. deferred taxes in the amount of $0.7M. Tax
adjustments for the quarter ended December 31, 2022, included a
$1.3M increase to expense related to the exclusion of
a benefit from an incentive tax rate change in
China.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months
Ended
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Dollars in thousands
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP net income
(loss)
|
|
$
|
(136,880)
|
|
$
|
(15,724)
|
|
$
|
(4,927)
|
|
$
|
(152,604)
|
|
$
|
(16,162)
|
|
Less: Income (loss)
from discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(2,936)
|
|
|
—
|
|
|
(2,936)
|
|
GAAP net income (loss)
from continuing operations
|
|
|
(136,880)
|
|
|
(15,724)
|
|
|
(1,991)
|
|
|
(152,604)
|
|
|
(13,226)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Interest income,
net
|
|
|
(9,565)
|
|
|
(10,081)
|
|
|
(10,394)
|
|
|
(19,646)
|
|
|
(21,059)
|
|
Add / Less: Income tax
(benefit) expense
|
|
|
(260)
|
|
|
(190)
|
|
|
(3,260)
|
|
|
(450)
|
|
|
(7,900)
|
|
Add:
Depreciation
|
|
|
9,321
|
|
|
9,377
|
|
|
9,549
|
|
|
18,698
|
|
|
18,189
|
|
Add: Amortization of
completed technology
|
|
|
6,373
|
|
|
5,627
|
|
|
4,901
|
|
|
12,000
|
|
|
9,070
|
|
Add: Amortization of
other intangible assets
|
|
|
6,654
|
|
|
6,862
|
|
|
7,509
|
|
|
13,516
|
|
|
14,882
|
|
Earnings before
interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
(124,357)
|
|
$
|
(4,129)
|
|
$
|
6,315
|
|
$
|
(128,486)
|
|
$
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months
Ended
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Dollars in thousands
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
Earnings before
interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
(124,357)
|
|
$
|
(4,129)
|
|
$
|
6,315
|
|
$
|
(128,486)
|
|
$
|
(44)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-based
compensation
|
|
|
5,602
|
|
|
3,202
|
|
|
3,991
|
|
|
8,804
|
|
|
6,217
|
|
Add: Purchase
accounting impact on inventory
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
|
—
|
|
|
5,781
|
|
Add: Restructuring and
restructuring related charges
|
|
|
7,344
|
|
|
1,120
|
|
|
1,499
|
|
|
8,464
|
|
|
2,960
|
|
Add: Merger and
acquisition costs and costs related to share
repurchase(1)
|
|
|
426
|
|
|
4,321
|
|
|
19
|
|
|
4,747
|
|
|
11,857
|
|
Add: Impairment of
goodwill and intangible assets
|
|
|
115,975
|
|
|
—
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
Less: Contingent
consideration - fair value adjustments
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
|
—
|
|
|
(17,145)
|
|
Less: Transformation
costs(2)
|
|
|
4,446
|
|
|
41
|
|
|
10
|
|
|
4,487
|
|
|
(55)
|
|
Less: Indemnification
asset release
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
9,436
|
|
$
|
4,555
|
|
$
|
(2,400)
|
|
$
|
13,991
|
|
$
|
9,552
|
|
|
|
(1)
|
Includes expenses
related to governance-related matters.
|
|
(2)
|
Transformation costs
represent non-recurring expenses for strategic projects with
anticipated long-term benefits to the Company focused on cost
reduction and productivity improvement that do not meet the
definition of restructuring charges. These costs are directed at
simplifying, standardizing, streamlining, and optimizing the
Company's operations, processes and systems to permanently alter
the Company's operations for the long term. For a project to be
considered transformational, successful completion of the project
must be expected to bring long-term material benefits to the
organization and involve significant changes to process and/or
underlying technology. Transformation costs in the period result
from actions taken as part of the Company's 2024 transformation
plan, and primarily relate to one time asset write downs associated
with changes in technology, one time inventory write downs relating
to restructuring actions taken in the period, and third-party
consulting costs associated with process & systems
re-design.
|
|
|
|
|
Quarter Ended
|
|
|
Dollars in
thousands
|
|
March 31, 2024
|
|
|
December 31, 2023
|
|
|
March 31, 2023
|
|
|
GAAP gross
profit
|
|
$
|
63,385
|
|
39.8
|
%
|
|
$
|
61,512
|
|
39.9
|
%
|
|
$
|
53,236
|
|
35.9
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
6,373
|
|
4.0
|
|
|
|
5,627
|
|
3.6
|
|
|
|
4,901
|
|
3.3
|
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
2,912
|
|
2.0
|
|
|
Transformation
costs(1)
|
|
|
710
|
|
0.4
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
70,468
|
|
44.3
|
%
|
|
$
|
67,139
|
|
43.5
|
%
|
|
$
|
61,049
|
|
41.1
|
%
|
|
|
Six Months
Ended
|
|
|
Dollars in
thousands
|
|
March 31, 2024
|
|
|
March 31, 2023
|
|
|
GAAP gross
profit
|
|
$
|
124,897
|
|
39.8
|
%
|
|
$
|
127,101
|
|
38.9
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
12,000
|
|
3.8
|
|
|
|
9,070
|
|
2.8
|
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
—
|
|
|
|
5,781
|
|
1.8
|
|
|
Transformation
costs(1)
|
|
|
710
|
|
0.2
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
137,607
|
|
43.9
|
%
|
|
$
|
141,951
|
|
43.4
|
%
|
|
|
|
(1)
|
Transformation costs
represent non-recurring expenses for strategic projects with
anticipated long-term benefits to the Company focused on cost
reduction and productivity improvement that do not meet the
definition of restructuring charges. These costs are directed at
simplifying, standardizing, streamlining, and optimizing the
Company's operations, processes and systems to permanently alter
the Company's operations for the long term. For a project to be
considered transformational, successful completion of the project
must be expected to bring long-term material benefits to the
organization and involve significant changes to process and/or
underlying technology. Transformation costs in the period result
from actions taken as part of the Company's 2024 transformation
plan, and primarily relate to one time asset write downs associated
with changes in technology, one time inventory write downs relating
to restructuring actions taken in the period, and third-party
consulting costs associated with process & systems
re-design.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management
Solutions
|
|
Multiomics
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
GAAP gross
profit
|
|
$
|
32,943
|
|
44.4
|
%
|
|
$
|
33,272
|
|
42.1
|
%
|
|
$
|
27,544
|
|
38.8
|
%
|
|
$
|
27,721
|
|
44.6
|
%
|
|
$
|
28,471
|
|
45.4
|
%
|
|
$
|
27,003
|
|
43.4
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,027
|
|
1.4
|
|
|
|
816
|
|
1.0
|
|
|
|
933
|
|
1.3
|
|
|
|
1,040
|
|
1.7
|
|
|
|
1,039
|
|
1.7
|
|
|
|
1,226
|
|
2.0
|
|
|
Transformation
costs(1)
|
|
|
359
|
|
0.5
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
34,329
|
|
46.3
|
%
|
|
$
|
34,088
|
|
43.1
|
%
|
|
$
|
28,477
|
|
40.1
|
%
|
|
$
|
28,761
|
|
46.2
|
%
|
|
$
|
29,510
|
|
47.1
|
%
|
|
$
|
28,229
|
|
45.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B Medical
Systems
|
|
Segment
Total
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
Dollars in
thousands
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2024
|
|
2023
|
|
2023
|
|
GAAP gross
profit
|
|
$
|
2,721
|
|
11.9
|
%
|
|
$
|
(231)
|
|
(1.8)
|
%
|
|
$
|
(1,311)
|
|
(8.7)
|
%
|
|
$
|
63,385
|
|
39.8
|
%
|
|
$
|
61,512
|
|
39.9
|
%
|
|
$
|
53,236
|
|
35.9
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
4,306
|
|
18.9
|
|
|
|
3,772
|
|
30.0
|
|
|
|
2,742
|
|
18.1
|
|
|
|
6,373
|
|
4.0
|
|
|
|
5,627
|
|
3.6
|
|
|
|
4,901
|
|
3.3
|
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
2,912
|
|
19.3
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
2,912
|
|
2.0
|
|
|
Transformation
costs(1)
|
|
|
351
|
|
1.5
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
710
|
|
0.4
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
7,378
|
|
32.4
|
%
|
|
$
|
3,541
|
|
28.1
|
%
|
|
$
|
4,343
|
|
28.7
|
%
|
|
$
|
70,468
|
|
44.3
|
%
|
|
$
|
67,139
|
|
43.5
|
%
|
|
$
|
61,049
|
|
41.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management
Solutions
|
|
Multiomics
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Dollars in
thousands
|
|
March 31, 2024
|
|
March 31, 2023
|
|
March 31, 2024
|
|
March 31, 2023
|
|
GAAP gross
profit
|
|
$
|
66,215
|
|
43.2
|
%
|
|
$
|
59,579
|
|
40.7
|
%
|
|
$
|
56,192
|
|
45.0
|
%
|
|
$
|
54,719
|
|
44.4
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,843
|
|
1.2
|
|
|
|
1,362
|
|
0.9
|
|
|
|
2,079
|
|
1.7
|
|
|
|
2,441
|
|
2.0
|
|
|
Transformation
costs(1)
|
|
|
359
|
|
0.2
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
68,417
|
|
44.7
|
%
|
|
$
|
60,942
|
|
41.6
|
%
|
|
$
|
58,271
|
|
46.6
|
%
|
|
$
|
57,160
|
|
46.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B Medical
Systems
|
|
Segment
Total
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Dollars in
thousands
|
|
March 31, 2024
|
|
March 31, 2023
|
|
March 31, 2024
|
|
March 31, 2023
|
|
GAAP gross
profit
|
|
$
|
2,490
|
|
7.0
|
%
|
|
$
|
12,803
|
|
22.5
|
%
|
|
$
|
124,897
|
|
39.8
|
%
|
|
$
|
127,101
|
|
38.9
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
8,078
|
|
22.8
|
|
|
|
5,265
|
|
9.2
|
|
|
|
12,000
|
|
3.8
|
|
|
|
9,070
|
|
2.8
|
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
5,781
|
|
10.2
|
|
|
|
—
|
|
—
|
|
|
|
5,781
|
|
1.8
|
|
|
Transformation
costs(1)
|
|
|
351
|
|
1.0
|
|
|
|
—
|
|
—
|
|
|
|
710
|
|
0.2
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
10,919
|
|
30.9
|
%
|
|
$
|
23,849
|
|
41.9
|
%
|
|
$
|
137,607
|
|
43.9
|
%
|
|
$
|
141,951
|
|
43.4
|
%
|
|
|
|
(1)
|
Transformation costs
represent non-recurring expenses for strategic projects with
anticipated long-term benefits to the Company focused on cost
reduction and productivity improvement that do not meet the
definition of restructuring charges. These costs are directed at
simplifying, standardizing, streamlining, and optimizing the
Company's operations, processes and systems to permanently alter
the Company's operations for the long term. For a project to be
considered transformational, successful completion of the project
must be expected to bring long-term material benefits to the
organization and involve significant changes to process and/or
underlying technology. Transformation costs in the period result
from actions taken as part of the Company's 2024 transformation
plan, and primarily relate to one time asset write downs associated
with changes in technology, one time inventory write downs relating
to restructuring actions taken in the period, and third-party
consulting costs associated with process & systems
re-design.
|
|
|
|
|
Sample Management
Solutions
|
|
Multiomics
|
|
B Medical
Systems
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
Dollars in thousands
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
GAAP operating (loss)
profit
|
|
$
|
(3,005)
|
|
$
|
(1,723)
|
|
$
|
(7,221)
|
|
$
|
(4,006)
|
|
$
|
(4,489)
|
|
$
|
(5,037)
|
|
$
|
(5,810)
|
|
$
|
(8,181)
|
|
$
|
(9,021)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,027
|
|
|
816
|
|
|
933
|
|
|
1,040
|
|
|
1,039
|
|
|
1,226
|
|
|
4,306
|
|
|
3,772
|
|
|
2,742
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
Amortization of other
intangible assets
|
|
|
52
|
|
|
51
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transformation
costs(1)
|
|
|
359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
—
|
|
|
—
|
|
Other
adjustment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted
operating (loss) profit
|
|
$
|
(1,567)
|
|
$
|
(856)
|
|
$
|
(6,076)
|
|
$
|
(2,966)
|
|
$
|
(3,451)
|
|
$
|
(3,810)
|
|
$
|
(1,153)
|
|
$
|
(4,409)
|
|
$
|
(3,367)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments
|
|
Corporate
|
|
Total
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
Dollars in thousands
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
GAAP operating (loss)
profit
|
|
$
|
(12,821)
|
|
$
|
(14,393)
|
|
$
|
(21,279)
|
|
$
|
(134,134)
|
|
$
|
(12,284)
|
|
$
|
8,302
|
|
$
|
(146,955)
|
|
$
|
(26,677)
|
|
$
|
(12,977)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
6,373
|
|
|
5,627
|
|
|
4,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,373
|
|
|
5,627
|
|
|
4,901
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
Amortization of other
intangible assets
|
|
|
52
|
|
|
51
|
|
|
212
|
|
|
6,602
|
|
|
6,811
|
|
|
7,297
|
|
|
6,654
|
|
|
6,862
|
|
|
7,509
|
|
Transformation
costs(1)
|
|
|
710
|
|
|
—
|
|
|
—
|
|
|
3,736
|
|
|
41
|
|
|
10
|
|
|
4,446
|
|
|
41
|
|
|
10
|
|
Restructuring
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,344
|
|
|
1,120
|
|
|
1,499
|
|
|
7,344
|
|
|
1,120
|
|
|
1,499
|
|
Impairment of goodwill
and intangible assets
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
|
—
|
|
Contingent
consideration adjustment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
Merger and acquisition
costs and costs related to share repurchase
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
|
4,321
|
|
|
19
|
|
|
426
|
|
|
4,321
|
|
|
19
|
|
Other
adjustment
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Non-GAAP adjusted
operating (loss) profit
|
|
$
|
(5,686)
|
|
$
|
(8,716)
|
|
$
|
(13,254)
|
|
$
|
(51)
|
|
$
|
9
|
|
$
|
(18)
|
|
$
|
(5,737)
|
|
$
|
(8,707)
|
|
$
|
(13,272)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management
Solutions
|
|
Multiomics
|
|
B Medical
Systems
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Dollars in thousands
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP operating (loss)
profit
|
|
$
|
(4,728)
|
|
$
|
(10,697)
|
|
$
|
(8,495)
|
|
$
|
(9,518)
|
|
$
|
(13,991)
|
|
$
|
(9,475)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,843
|
|
|
1,362
|
|
|
2,079
|
|
|
2,441
|
|
|
8,078
|
|
|
5,265
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,781
|
|
Amortization of other
intangibles
|
|
|
103
|
|
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,365
|
|
Transformation
costs(1)
|
|
|
359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
—
|
|
Other
adjustment
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted
operating (loss) profit
|
|
$
|
(2,423)
|
|
$
|
(9,074)
|
|
$
|
(6,417)
|
|
$
|
(7,075)
|
|
$
|
(5,562)
|
|
$
|
2,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments
|
|
Corporate
|
|
Total
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Dollars in thousands
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP operating (loss)
profit
|
|
$
|
(27,214)
|
|
$
|
(29,690)
|
|
$
|
(146,418)
|
|
$
|
(10,973)
|
|
$
|
(173,632)
|
|
$
|
(40,662)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
12,000
|
|
|
9,070
|
|
|
—
|
|
|
—
|
|
|
12,000
|
|
|
9,070
|
|
Purchase accounting
impact on inventory
|
|
|
—
|
|
|
5,781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,781
|
|
Amortization of other
intangibles
|
|
|
103
|
|
|
1,624
|
|
|
13,413
|
|
|
13,257
|
|
|
13,516
|
|
|
14,882
|
|
Transformation
costs(1)
|
|
|
710
|
|
|
—
|
|
|
3,777
|
|
|
(55)
|
|
|
4,487
|
|
|
(55)
|
|
Restructuring and
restructuring related charges
|
|
|
—
|
|
|
—
|
|
|
8,464
|
|
|
2,960
|
|
|
8,464
|
|
|
2,961
|
|
Impairment of goodwill
and intangible assets
|
|
|
—
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
|
115,975
|
|
|
—
|
|
Contingent
consideration - fair value adjustments
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,145)
|
|
|
—
|
|
|
(17,145)
|
|
Merger and acquisition
costs and costs related to share repurchase
(2)
|
|
|
—
|
|
|
—
|
|
|
4,747
|
|
|
11,857
|
|
|
4,747
|
|
|
11,857
|
|
Other
adjustment
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Non-GAAP adjusted
operating (loss) profit
|
|
$
|
(14,402)
|
|
$
|
(13,213)
|
|
$
|
(42)
|
|
$
|
(99)
|
|
$
|
(14,444)
|
|
$
|
(13,312)
|
|
|
|
(1)
|
Transformation costs
represent non-recurring expenses for strategic projects with
anticipated long-term benefits to the Company focused on cost
reduction and productivity improvement that do not meet the
definition of restructuring charges. These costs are directed at
simplifying, standardizing, streamlining, and optimizing the
Company's operations, processes and systems to permanently alter
the Company's operations for the long term. For a project to be
considered transformational, successful completion of the project
must be expected to bring long-term material benefits to the
organization and involve significant changes to process and/or
underlying technology. Transformation costs in the period result
from actions taken as part of the Company's 2024 transformation
plan, and primarily relate to one time asset write downs associated
with changes in technology, one time inventory write downs relating
to restructuring actions taken in the period, and third-party
consulting costs associated with process & systems
re-design.
|
|
(2)
|
Includes expenses
related to governance-related matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management
Solutions
|
Multiomics
|
|
B Medical
Systems
|
|
Azenta
Total
|
|
|
Quarter
Ended
|
Quarter
Ended
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
Dollars in
millions
|
|
2024
|
|
2023
|
|
Change
|
2024
|
|
2023
|
|
Change
|
|
2024
|
|
2023
|
|
Change
|
|
2024
|
|
2023
|
|
Change
|
|
Revenue
|
|
$
|
74
|
|
$
|
71
|
|
4
|
%
|
$
|
62
|
|
$
|
62
|
|
(0)
|
%
|
|
$
|
23
|
|
$
|
15
|
|
51
|
%
|
|
$
|
159
|
|
$
|
148
|
|
7
|
%
|
|
Acquisitions/divestitures
|
|
|
—
|
|
|
—
|
|
—
|
%
|
|
—
|
|
|
—
|
|
—
|
%
|
|
|
—
|
|
|
—
|
|
—
|
%
|
|
|
—
|
|
|
—
|
|
—
|
%
|
|
Currency exchange
rates
|
|
|
1
|
|
|
—
|
|
(1)
|
%
|
|
(1)
|
|
|
—
|
|
1
|
%
|
|
|
0
|
|
|
—
|
|
(2)
|
%
|
|
|
0
|
|
|
—
|
|
(0)
|
%
|
|
Organic
revenue
|
|
$
|
73
|
|
$
|
71
|
|
3
|
%
|
$
|
63
|
|
$
|
62
|
|
1
|
%
|
|
$
|
23
|
|
$
|
15
|
|
49
|
%
|
|
$
|
159
|
|
$
|
148
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management
Solutions
|
Multiomics
|
|
B Medical
Systems
|
|
Azenta
Total
|
|
|
Six Months
Ended
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
Dollars in
millions
|
|
2024
|
|
2023
|
|
Change
|
2024
|
|
2023
|
|
Change
|
|
2024
|
|
2023
|
|
Change
|
|
2024
|
|
2023
|
|
Change
|
|
Revenue
|
|
$
|
153
|
|
$
|
146
|
|
5
|
%
|
$
|
125
|
|
$
|
123
|
|
1
|
%
|
|
$
|
35
|
|
$
|
57
|
|
(38)
|
%
|
|
$
|
313
|
|
$
|
327
|
|
(4)
|
%
|
|
Acquisitions/divestitures
|
|
|
1
|
|
|
—
|
|
(1)
|
%
|
|
(0)
|
|
|
—
|
|
0
|
%
|
|
|
—
|
|
|
—
|
|
—
|
%
|
|
|
1
|
|
|
—
|
|
(0)
|
%
|
|
Currency exchange
rates
|
|
|
2
|
|
|
—
|
|
(1)
|
%
|
|
—
|
|
|
—
|
|
—
|
%
|
|
|
1
|
|
|
—
|
|
(2)
|
%
|
|
|
2
|
|
|
—
|
|
(1)
|
%
|
|
Organic
revenue
|
|
$
|
150
|
|
$
|
146
|
|
2
|
%
|
$
|
125
|
|
$
|
123
|
|
2
|
%
|
|
$
|
34
|
|
$
|
57
|
|
(39)
|
%
|
|
$
|
310
|
|
$
|
327
|
|
(5)
|
%
|
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multimedia:https://www.prnewswire.com/news-releases/azenta-reports-second-quarter-results-for-fiscal-2024-ended-march-31-2024-302140384.html
SOURCE Azenta