BURLINGTON, Mass., Aug. 8, 2023 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the third quarter ended June 30, 2023.
Quarter Ended | ||||||||||||||||
Dollars in millions, except per share data | June 30, | March 31, | June 30, | Change | ||||||||||||
2023 | 2023 | 2022 | Prior Qtr | Prior Yr. | ||||||||||||
Revenue from Continuing Operations | $ | 166 | $ | 148 | $ | 133 | 12 | % | 25 | % | ||||||
Organic growth | 2 | % | ||||||||||||||
Life Sciences Products | $ | 75 | $ | 59 | $ | 47 | 27 | % | 57 | % | ||||||
Life Sciences Services | $ | 91 | $ | 90 | $ | 85 | 2 | % | 7 | % | ||||||
Diluted EPS Continuing Operations | $ | (0.04) | $ | (0.03) | $ | (0.09) | (35) | % | 59 | % | ||||||
Diluted EPS Total | $ | (0.02) | $ | (0.07) | $ | (0.13) | 67 | % | 82 | % | ||||||
Non-GAAP Diluted EPS Continuing Operations | $ | 0.13 | $ | (0.06) | $ | 0.12 | nm | 12 | % | |||||||
Adjusted EBITDA Continuing Operations | $ | 13 | $ | (2) | $ | 14 | nm | (7) | % | |||||||
Management Comments
"Our third quarter results reflect positive momentum in both organic revenue growth and profitability. Our go-to-market initiatives continue to gain traction while our cost reduction efforts are providing additional support to the bottom line," stated Steve Schwartz, President and CEO. "Notably, the leverage in the business model is evident again and we generated positive free cash flow in the quarter. We are encouraged by the progress in the business over the past quarter, and while macroeconomic factors remain challenging, we are confident in the unique value we bring to our customer partnerships across pharmaceutical, biotech, and academic institutions."
Third Quarter Fiscal 2023 Results
Summary of GAAP Earnings Results
Summary of Non-GAAP Earnings Results
Cash and Liquidity
Share Repurchase Program Update
Guidance for Fourth Quarter Fiscal 2023
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2023. Total revenue is expected to be in the range of $155 to $173 million. Life Sciences Services revenue is expected to be in the range of $86 to $94 million. Life Sciences Products revenue excluding B Medical is expected to be in the range of $45 to $55 million. B Medical revenue is expected to be approximately $24 million.
Non-GAAP diluted earnings per share is expected to be in the range of ($0.02) to $0.06. GAAP diluted earnings per share from continuing operations is expected to be in the range of ($0.20) to ($0.12).
For the full year, the Company is narrowing its expectation for revenue to be in the range of $648 to $665 million, consistent with growth of approximately 17% to 20% year over year.
Conference Call and Webcast
Azenta management will webcast its third quarter fiscal 2023 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, you may call 800- 954-0585 (US & Canada only) or +1-212-231-2927 for international callers to listen to the live webcast.
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 better perspective on the results of business operations, which the Company believes is more 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.
"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. Other 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 impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally; 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.
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:
Sara Silverman
Head of Investor Relations & Corporate Communications
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Sherry Dinsmore
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AZENTA, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(unaudited) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Revenue | ||||||||||||
Products | $ | 67,296 | $ | 42,688 | $ | 205,011 | $ | 138,006 | ||||
Services | 98,652 | 90,047 | 287,704 | 279,925 | ||||||||
Total revenue | 165,948 | 132,735 | 492,715 | 417,931 | ||||||||
Cost of revenue | ||||||||||||
Products | 42,747 | 24,090 | 136,855 | 73,565 | ||||||||
Services | 55,196 | 49,045 | 160,754 | 146,897 | ||||||||
Total cost of revenue | 97,943 | 73,135 | 297,609 | 220,462 | ||||||||
Gross profit | 68,005 | 59,600 | 195,106 | 197,469 | ||||||||
Operating expenses | ||||||||||||
Research and development | 8,968 | 6,515 | 25,024 | 19,895 | ||||||||
Selling, general and administrative | 75,465 | 58,133 | 241,356 | 186,761 | ||||||||
Contingent consideration - fair value adjustments | (1,404) | — | (18,549) | 600 | ||||||||
Restructuring charges | 812 | 25 | 3,773 | 319 | ||||||||
Total operating expenses | 83,841 | 64,673 | 251,604 | 207,575 | ||||||||
Operating loss | (15,836) | (5,073) | (56,498) | (10,106) | ||||||||
Other income (expense) | ||||||||||||
Interest income | 11,347 | 6,822 | 32,406 | 9,933 | ||||||||
Interest expense | — | (2,101) | — | (4,111) | ||||||||
Loss on extinguishment of debt | — | — | — | (632) | ||||||||
Other, net | 819 | 630 | (704) | (1,617) | ||||||||
(Loss) income before income taxes | (3,670) | 278 | (24,796) | (6,533) | ||||||||
Income tax (benefit) expense | (1,207) | 7,293 | (9,107) | (560) | ||||||||
Loss from continuing operations | (2,463) | (7,015) | (15,689) | (5,973) | ||||||||
Income (loss) from discontinued operations, net of tax | 993 | (2,555) | (1,943) | 2,159,597 | ||||||||
Net (loss) income | $ | (1,470) | $ | (9,570) | $ | (17,632) | $ | 2,153,624 | ||||
Basic and diluted net (loss) income per share: | ||||||||||||
Loss from continuing operations | $ | (0.04) | $ | (0.09) | $ | (0.23) | $ | (0.08) | ||||
Income (loss) from discontinued operations, net of | 0.02 | (0.03) | (0.03) | 28.84 | ||||||||
Net (loss) income per share | $ | (0.02) | $ | (0.13) | $ | (0.26) | $ | 28.76 | ||||
Weighted average shares used in computing net (loss) | ||||||||||||
Basic and diluted | 63,432 | 74,989 | 68,494 | 74,879 | ||||||||
AZENTA, INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(unaudited) | ||||||
(In thousands, except share and per share data) | ||||||
June 30, | September 30, | |||||
2023 | 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 733,369 | $ | 658,274 | ||
Short-term marketable securities | 390,492 | 911,764 | ||||
Accounts receivable, net of allowance for expected credit losses ($8,403 and | 163,019 | 163,758 | ||||
Inventories | 142,102 | 85,544 | ||||
Derivative asset | 984 | 124,789 | ||||
Short-term restricted cash | 2,287 | 382,596 | ||||
Prepaid expenses and other current assets | 78,584 | 132,621 | ||||
Total current assets | 1,510,837 | 2,459,346 | ||||
Property, plant and equipment, net | 210,940 | 154,470 | ||||
Long-term marketable securities | 169,422 | 352,020 | ||||
Long-term deferred tax assets | 599 | 1,169 | ||||
Goodwill | 793,623 | 513,623 | ||||
Intangible assets, net | 312,055 | 178,401 | ||||
Other assets | 71,940 | 57,093 | ||||
Total assets | $ | 3,069,416 | $ | 3,716,122 | ||
Liabilities and stockholders' equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 37,990 | $ | 38,654 | ||
Deferred revenue | 45,207 | 39,748 | ||||
Accrued warranty and retrofit costs | 6,258 | 2,890 | ||||
Accrued compensation and benefits | 33,848 | 41,898 | ||||
Accrued income taxes payable | 2,571 | 28,419 | ||||
Accrued expenses and other current liabilities | 77,753 | 78,937 | ||||
Total current liabilities | 203,627 | 230,546 | ||||
Long-term tax reserves | 1,738 | 1,684 | ||||
Long-term deferred tax liabilities | 65,700 | 64,555 | ||||
Long-term pension liabilities | 288 | 261 | ||||
Long-term operating lease liabilities | 61,799 | 49,227 | ||||
Other long-term liabilities | 12,764 | 6,463 | ||||
Total liabilities | 345,916 | 352,736 | ||||
Stockholders' equity | ||||||
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or | — | — | ||||
Common stock, $0.01 par value - 125,000,000 shares authorized, 74,656,860 | 747 | 885 | ||||
Additional paid-in capital | 1,323,215 | 1,992,017 | ||||
Accumulated other comprehensive loss | (37,145) | (83,916) | ||||
Treasury stock, at cost - 13,461,869 shares at June 30, 2023 and September 30, | (200,956) | (200,956) | ||||
Retained earnings | 1,637,639 | 1,655,356 | ||||
Total stockholders' equity | 2,723,500 | 3,363,386 | ||||
Total liabilities and stockholders' equity | $ | 3,069,416 | $ | 3,716,122 | ||
AZENTA, INC. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(unaudited) | ||||||
(In thousands) | ||||||
Nine Months Ended | ||||||
June 30, | ||||||
2023 | 2022 | |||||
Cash flows from operating activities | ||||||
Net income (loss) | $ | (17,632) | $ | 2,153,624 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 63,443 | 38,813 | ||||
Stock-based compensation | 10,091 | 10,715 | ||||
Contingent consideration adjustment | (18,549) | — | ||||
Amortization and accretion on marketable securities | (6,942) | (7,048) | ||||
Deferred income taxes | (25,149) | 24,207 | ||||
Loss on extinguishment of debt | — | 632 | ||||
Purchase accounting impact on inventory | 8,737 | — | ||||
(Gain) loss on disposals of property, plant and equipment | 37 | (100) | ||||
Gain on divestiture, net of tax | — | (2,128,761) | ||||
Fees paid stemming from divestiture | — | (52,461) | ||||
Taxes paid stemming from divestiture | — | (431,600) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 29,028 | (16,298) | ||||
Inventories | (4,104) | (61,345) | ||||
Accounts payable | (13,193) | (8,320) | ||||
Deferred revenue | 2,496 | 8,580 | ||||
Accrued warranty and retrofit costs | 1,412 | (28) | ||||
Accrued compensation and tax withholdings | (15,830) | 13,835 | ||||
Accrued restructuring costs | 311 | (126) | ||||
Other current assets and liabilities | (36,578) | (19,999) | ||||
Net cash used in operating activities | (22,422) | (475,680) | ||||
Cash flows from investing activities | ||||||
Purchases of property, plant and equipment | (29,218) | (59,730) | ||||
Purchases of technology intangibles | — | (4,000) | ||||
Purchases of marketable securities | (236,194) | (1,525,993) | ||||
Sales and maturities of marketable securities | 951,504 | 503,505 | ||||
Proceeds from divestiture, net of cash transferred | — | 2,926,286 | ||||
Net Investment hedge settlement | 29,313 | — | ||||
Acquisitions, net of cash acquired | (386,508) | — | ||||
Net cash provided by investing activities | 328,897 | 1,840,068 | ||||
Cash flows from financing activities | ||||||
Proceeds from issuance of common stock | — | 3,461 | ||||
Principal payments on debt | — | (49,725) | ||||
Common stock dividends paid | — | (7,494) | ||||
Payment for contingent consideration related to acquisition | — | (10,400) | ||||
Payment of finance leases | (181) | (355) | ||||
Stock repurchase | (672,116) | — | ||||
Withholding tax payments on net share settlements on equity awards | (4,924) | — | ||||
Net cash used in financing activities | (677,221) | (64,513) | ||||
Effects of exchange rate changes on cash and cash equivalents | 65,610 | (98,972) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (305,136) | 1,200,903 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 1,041,296 | 285,333 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 736,160 | $ | 1,486,236 | ||
Supplemental disclosures: | ||||||
Cash paid for income taxes, net | 41,064 | 452,461 | ||||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||||||
June 30, | September 30, | |||||
2023 | 2022 | |||||
Cash and cash equivalents of continuing operations | $ | 733,369 | $ | 658,274 | ||
Short-term restricted cash | 2,287 | 382,596 | ||||
Long-term restricted cash included in other assets | 504 | 426 | ||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of | $ | 736,160 | $ | 1,041,296 | ||
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 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 | ||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | ||||||||||||||||
per diluted | per diluted | per diluted | ||||||||||||||||
Dollars in thousands, except per share | $ | share | $ | share | $ | share | ||||||||||||
Net loss from continuing operations | $ | (2,463) | $ | (0.04) | $ | (1,991) | $ | (0.03) | $ | (7,015) | $ | (0.09) | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 4,656 | 0.07 | 4,901 | 0.07 | 1,810 | 0.02 | ||||||||||||
Purchase accounting impact on | 2,956 | 0.05 | 2,912 | 0.04 | — | — | ||||||||||||
Amortization of intangible assets | 7,522 | 0.12 | 7,509 | 0.11 | 5,747 | 0.08 | ||||||||||||
Rebranding and transformation costs | 21 | — | 10 | 0.00 | 289 | 0.00 | ||||||||||||
Restructuring related charges | 812 | 0.01 | 1,499 | 0.02 | 23 | 0.00 | ||||||||||||
Contingent consideration - fair value | (1,404) | (0.02) | (17,145) | (0.25) | — | — | ||||||||||||
Merger and acquisition costs and costs | 219 | — | 19 | 0.00 | 1,662 | 0.02 | ||||||||||||
Tax adjustments (1) | (31) | — | 56 | 0.00 | 8,417 | 0.11 | ||||||||||||
Tax effect of adjustments | (3,947) | (0.06) | (1,934) | (0.03) | (2,143) | (0.03) | ||||||||||||
Non-GAAP adjusted net income (loss) | $ | 8,341 | $ | 0.13 | $ | (4,164) | $ | (0.06) | $ | 8,790 | $ | 0.12 | ||||||
Stock based compensation, pre-tax | 3,995 | 0.06 | 3,991 | 0.06 | 3,485 | 0.05 | ||||||||||||
Tax rate | 15 | % | — | 15 | % | — | 15 | % | — | |||||||||
Stock-based compensation, net of tax | 3,396 | 0.05 | 3,392 | 0.05 | 2,962 | 0.04 | ||||||||||||
Non-GAAP adjusted net income (loss) | $ | 11,737 | $ | 0.18 | $ | (772) | $ | (0.01) | $ | 11,752 | $ | 0.16 | ||||||
Shares used in computing non-GAAP | — | 63,432 | — | 69,111 | — | 74,989 | ||||||||||||
Nine Months Ended | ||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||
per diluted | per diluted | |||||||||||
Dollars in thousands, except per share data | $ | share | $ | share | ||||||||
Net loss from continuing operations | $ | (15,689) | $ | (0.23) | $ | (5,973) | $ | (0.08) | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 13,725 | 0.20 | 5,424 | 0.07 | ||||||||
Purchase accounting impact on inventory | 8,737 | 0.13 | — | — | ||||||||
Amortization of intangible assets | 22,403 | 0.33 | 18,064 | 0.24 | ||||||||
Rebranding and transformation costs | (34) | (0.00) | 2,205 | 0.03 | ||||||||
Restructuring related charges | 3,773 | 0.06 | 319 | 0.00 | ||||||||
Contingent consideration - fair value adjustments | (18,549) | (0.27) | — | — | ||||||||
Tariff adjustment | — | — | (484) | (0.01) | ||||||||
Merger and acquisition costs and costs related to | 12,075 | 0.18 | 10,970 | 0.15 | ||||||||
Indemnification asset release | (19) | (0.00) | — | — | ||||||||
Loss on extinguishment of debt | — | — | 632 | 0.01 | ||||||||
Tax adjustments (1) | (1,411) | (0.02) | 3,619 | 0.05 | ||||||||
Tax effect of adjustments | (11,881) | (0.17) | (8,329) | (0.11) | ||||||||
Non-GAAP adjusted net income from continuing | $ | 13,130 | $ | 0.19 | $ | 26,447 | $ | 0.35 | ||||
Stock-based compensation, pre-tax | 10,091 | 0.15 | 12,492 | 0.17 | ||||||||
Tax rate | 15 | % | — | 15 | % | — | ||||||
Stock-based compensation, net of tax | 8,577 | $ | 0.13 | 10,618 | 0.14 | |||||||
Non-GAAP adjusted net income excluding stock- | $ | 21,707 | $ | 0.32 | $ | 37,065 | $ | 0.49 | ||||
Shares used in computing non-GAAP diluted net | — | 68,494 | — | 74,879 | ||||||||
(1) | 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 nine months ended June 30, 2023, included a $1.3M increase to expense related to the exclusion of a benefit from an incentive tax rate change in China. Tax adjustments for the quarter ended June 30, 2022, include a $1.9M increase to expense related to the exclusion of allocations between continuing operations and discontinued operations. |
Quarter Ended | Nine Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
GAAP net income (loss) | $ | (1,470) | $ | (4,927) | $ | (9,570) | $ | (17,632) | $ | 2,153,624 | |||||
Less: Income (loss) from discontinued | 993 | (2,936) | (2,555) | (1,943) | 2,159,597 | ||||||||||
GAAP net loss from continuing operations | (2,463) | (1,991) | (7,015) | (15,689) | (5,973) | ||||||||||
Adjustments: | |||||||||||||||
Less: Interest income | (11,347) | (10,394) | (6,822) | (32,406) | (9,933) | ||||||||||
Add: Interest expense | — | — | 2,101 | — | 4,111 | ||||||||||
Add / Less: Income tax provision (benefit) | (1,207) | (3,260) | 7,293 | (9,107) | (560) | ||||||||||
Add: Depreciation | 9,126 | 9,549 | 5,253 | 27,315 | 15,777 | ||||||||||
Add: Amortization of completed technology | 4,656 | 4,901 | 1,810 | 13,725 | 5,424 | ||||||||||
Add: Amortization of intangible assets | 7,522 | 7,509 | 5,745 | 22,403 | 18,064 | ||||||||||
Add: Loss on extinguishment of debt | — | — | — | — | 632 | ||||||||||
Earnings before interest, taxes, depreciation | $ | 6,287 | $ | 6,315 | $ | 8,365 | $ | 6,241 | $ | 27,542 | |||||
Quarter Ended | Nine Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Earnings before interest, taxes, depreciation | $ | 6,287 | $ | 6,315 | $ | 8,365 | $ | 6,241 | $ | 27,542 | |||||
Adjustments: | |||||||||||||||
Add: Stock-based compensation | 3,995 | 3,991 | 3,485 | 10,212 | 12,492 | ||||||||||
Add: Purchase accounting impact on | 2,956 | 2,912 | — | 8,737 | — | ||||||||||
Add: Restructuring related charges | 812 | 1,499 | 23 | 3,773 | 319 | ||||||||||
Add: Merger and acquisition costs and costs | 219 | 19 | 1,664 | 12,075 | 10,970 | ||||||||||
Less: Contingent consideration - fair value | (1,404) | (17,145) | — | (18,549) | — | ||||||||||
Less: Tariff adjustment | — | — | — | — | (484) | ||||||||||
Less: Rebranding and transformation costs | 21 | 10 | 289 | (34) | 2,205 | ||||||||||
Less: Indemnification asset release | — | — | — | (19) | — | ||||||||||
Adjusted earnings before interest, taxes, | $ | 12,886 | $ | (2,400) | $ | 13,826 | $ | 22,436 | $ | 53,044 | |||||
Quarter Ended | ||||||||||||||||||
Dollars in thousands | June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
GAAP gross profit | $ | 68,005 | 41.0 | % | $ | 53,236 | 35.9 | % | $ | 59,600 | 44.9 | % | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 4,656 | 2.8 | 4,901 | 3.3 | 1,812 | 1.4 | ||||||||||||
Purchase accounting impact on inventory | 2,956 | 1.8 | 2,912 | 2.0 | — | — | ||||||||||||
Non-GAAP adjusted gross profit | $ | 75,617 | 45.6 | % | $ | 61,049 | 41.1 | % | $ | 61,412 | 46.3 | % | ||||||
Nine Months Ended | ||||||||||||
Dollars in thousands | June 30, 2023 | June 30, 2022 | ||||||||||
GAAP gross profit | $ | 195,106 | 39.6 | % | $ | 197,469 | 47.2 | % | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 13,725 | 2.8 | 5,424 | 1.3 | ||||||||
Purchase accounting impact on inventory | 8,737 | 1.8 | — | — | ||||||||
Tariff adjustment | — | — | (486) | (0.1) | ||||||||
Non-GAAP adjusted gross profit | $ | 217,568 | 44.2 | % | $ | 202,407 | 48.4 | % | ||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | |||||||||||||||||||||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||||
GAAP gross profit | $ | 27,213 | 36.5 | % | $ | 14,284 | 24.3 | % | $ | 21,026 | 44.4 | % | $ | 40,792 | 44.6 | % | $ | 38,952 | 43.5 | % | $ | 38,564 | 45.2 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Amortization of | 3,329 | 4.4 | 3,569 | 6.1 | 251 | 0.5 | 1,327 | 1.5 | 1,333 | 1.5 | 1,562 | 1.8 | ||||||||||||||||||||||||
Purchase accounting | 2,956 | 4.0 | 2,912 | 4.9 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Non-GAAP adjusted gross | $ | 33,498 | 44.9 | % | $ | 20,765 | 35.3 | % | $ | 21,277 | 44.9 | % | $ | 42,119 | 46.1 | % | $ | 40,285 | 45.0 | % | $ | 40,126 | 47.0 | % | ||||||||||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
Dollars in thousands | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||
GAAP gross profit | $ | 74,477 | 33.4 | % | $ | 70,006 | 46.4 | % | $ | 120,629 | 44.7 | % | $ | 127,466 | 47.7 | % | ||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed | 9,743 | 4.4 | 722 | 0.5 | 3,982 | 1.5 | 4,702 | 1.8 | ||||||||||||||||
Purchase accounting impact on | 8,737 | 3.9 | — | — | — | — | — | — | ||||||||||||||||
Tariff adjustment | — | — | — | — | — | — | (484) | (0.2) | ||||||||||||||||
Other adjustment | — | — | — | — | — | — | — | — | ||||||||||||||||
Non-GAAP adjusted gross profit | $ | 92,957 | 41.7 | % | $ | 70,728 | 46.9 | % | $ | 124,611 | 46.2 | % | $ | 131,684 | 49.3 | % | ||||||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | |||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||
GAAP operating (loss) profit | $ | (4,878) | $ | (16,402) | $ | 1,965 | $ | (3,813) | $ | (4,877) | $ | 688 | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 3,329 | 3,569 | 251 | 1,327 | 1,333 | 1,562 | ||||||||||||
Purchase accounting impact on inventory | 2,956 | 2,912 | — | — | — | — | ||||||||||||
Restructuring related charges | — | — | — | — | 110 | — | ||||||||||||
Other adjustment | — | 102 | — | — | — | — | ||||||||||||
Non-GAAP adjusted operating profit (loss) | $ | 1,407 | $ | (9,819) | $ | 2,216 | $ | (2,486) | $ | (3,434) | $ | 2,250 | ||||||
Total Segments | Corporate | Total | |||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | |||||||||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||
GAAP operating (loss) profit | $ | (8,691) | $ | (21,279) | $ | 2,653 | $ | (7,145) | $ | 8,302 | $ | (7,726) | $ | (15,836) | $ | (12,977) | $ | (5,073) | |||||||||
Adjustments: | |||||||||||||||||||||||||||
Amortization of completed technology | 4,656 | 4,901 | 1,813 | — | — | — | 4,656 | 4,901 | 1,813 | ||||||||||||||||||
Purchase accounting impact on inventory | 2,956 | 2,912 | — | — | — | — | 2,956 | 2,912 | — | ||||||||||||||||||
Amortization of intangible assets | — | 102 | — | 7,522 | 7,407 | 5,745 | 7,522 | 7,509 | 5,745 | ||||||||||||||||||
Rebranding and transformation costs | — | — | — | 21 | 10 | 289 | 21 | 10 | 289 | ||||||||||||||||||
Restructuring related charges | — | 110 | — | 812 | 1,389 | 25 | 812 | 1,499 | 25 | ||||||||||||||||||
Contingent consideration adjustment | — | — | — | (1,404) | (17,145) | — | (1,404) | (17,145) | — | ||||||||||||||||||
Merger and acquisition costs and costs | — | — | — | 219 | (211) | 1,662 | 219 | (211) | 1,662 | ||||||||||||||||||
Other adjustment | — | — | — | (2) | 230 | — | (2) | 230 | — | ||||||||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | (1,079) | $ | (13,254) | $ | 4,466 | $ | 23 | $ | (18) | $ | (5) | $ | (1,056) | $ | (13,272) | $ | 4,461 | |||||||||
Life Sciences Products | Life Sciences Services | |||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||
Dollars in thousands | June 30, | June 30, | June 30, | June 30, | ||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
GAAP operating (loss) profit | $ | (25,077) | $ | 11,173 | $ | (13,302) | $ | 10,772 | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 9,743 | 722 | 3,982 | 4,702 | ||||||||
Purchase accounting impact on inventory | 8,737 | — | — | — | ||||||||
Tariff adjustment | — | — | — | (484) | ||||||||
Other adjustment | 1,515 | — | 110 | |||||||||
Non-GAAP adjusted operating (loss) profit | $ | (5,082) | $ | 11,895 | $ | (9,210) | $ | 14,990 | ||||
Total Segments | Corporate | Total | ||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
Dollars in thousands | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | ||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP operating (loss) profit | $ | (38,379) | $ | 21,945 | $ | (18,119) | $ | (32,052) | $ | (56,498) | $ | (10,107) | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 13,725 | 5,424 | — | — | 13,725 | 5,424 | ||||||||||||
Purchase accounting impact on inventory | 8,737 | — | — | — | 8,737 | — | ||||||||||||
Amortization of other intangibles | — | — | 22,403 | 18,064 | 22,403 | 18,064 | ||||||||||||
Rebranding and transformation costs | — | — | (34) | 2,205 | (34) | 2,205 | ||||||||||||
Restructuring related charges | — | — | 3,773 | 319 | 3,773 | 319 | ||||||||||||
Contingent consideration - fair value adjustments | — | — | (18,549) | — | (18,549) | — | ||||||||||||
Tariff adjustment | — | (484) | — | — | — | (484) | ||||||||||||
Merger and acquisition costs and costs related to | — | — | 12,075 | 10,970 | 12,075 | 10,970 | ||||||||||||
Other adjustment | 1,625 | — | (1,625) | — | — | — | ||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | (14,292) | $ | 26,885 | $ | (76) | $ | (494) | $ | (14,368) | $ | 26,391 | ||||||
Life Sciences Products | Life Sciences Services | Azenta Total | |||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | Change | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
Revenue | $ | 75 | $ | 47 | 57 | % | $ | 91 | $ | 85 | 7 | % | $ | 166 | $ | 133 | 25 | % | |||||||||
Acquisitions/divestitures | 32 | — | (67) | % | — | — | 0 | % | 32 | — | (24) | % | |||||||||||||||
Currency exchange rates | (0) | — | 0 | % | (0) | — | 1 | % | (1) | — | 0 | % | |||||||||||||||
Organic revenue | 43 | 47 | (9) | % | 92 | 85 | 8 | % | 135 | 133 | 2 | % | |||||||||||||||
| Last Trade: | US$51.67 |
| Daily Change: | 0.42 0.82 |
| Daily Volume: | 222,211 |
| Market Cap: | US$2.880B |
February 02, 2024 January 11, 2024 November 13, 2023 | |
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