Azenta Reports Second Quarter Results for Fiscal 2024, Ended March 31, 2024
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Quarter Ended |
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Dollars in millions, except per share data |
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|
|
|
|
|
|
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) |
% |
|
|
$ |
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
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 higherB 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
- 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 inNovember 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 .
- Total revenue is now expected to be in the range of
Conference Call and Webcast
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
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,
"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
About Azenta Life Sciences
AZENTA INVESTOR CONTACTS:
Vice President, Financial Planning & Analysis and Investor Relations
ir@azenta.com
sherry.dinsmore@azenta.com
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) |
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|
|
Three Months Ended |
|
Six Months Ended |
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|
|
|
|
|
||||||||
|
|
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 |
CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data) |
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|
||||||
|
|
|
|
|
||
|
|
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 ( $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 |
|
|
|
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, outstanding |
|
|
— |
|
|
— |
Common stock,
shares issued and 54,614,041 shares outstanding at
shares issued and 57,832,378 shares outstanding at |
|
|
681 |
|
|
713 |
Additional paid-in capital |
|
|
999,333 |
|
|
1,156,160 |
Accumulated other comprehensive loss |
|
|
(41,728) |
|
|
(62,426) |
|
|
|
(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 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) |
||||||
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
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||||||||||||
|
|
|
|
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 |
|
||||||||||
|
|
|
|
|
|
||||||||
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
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 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
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 |
|
|
|
|
|
|
|
|
|
|||||||||
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 |
|
|
|
|
|
|
||||||
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 |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Total |
||||||||||||||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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 |
|
|
|
|
|
|
|
|
||||||||||||||||
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Total |
||||||||||||||||||||
|
|
Six Months Ended |
|
Six Months Ended |
||||||||||||||||||||
Dollars in thousands |
|
|
|
|
|
|
|
|
||||||||||||||||
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 |
|
|
|||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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 |
|
|
||||||||||||
|
|
Six Months Ended |
|
Six Months Ended |
|
Six Months Ended |
||||||||||||
Dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
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 |
|
|
|
Azenta Total |
||||||||||||||||||||||||||||
|
|
Quarter Ended |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
Sample Management Solutions |
Multiomics |
|
|
|
Azenta Total |
||||||||||||||||||||||||||||
|
|
Six Months Ended |
Six Months Ended |
|
Six Months Ended |
|
Six Months Ended |
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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) |
% |
View original content to download multimedia:https://www.prnewswire.com/news-releases/azenta-reports-second-quarter-results-for-fiscal-2024-ended-march-31-2024-302140384.html
SOURCE