BURLINGTON, Mass., Aug. 6, 2024 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the third quarter ended June 30, 2024.
Quarter Ended | ||||||||||||||||||||
Dollars in millions, except per share data | June 30, | March 31, | June 30, | Change | ||||||||||||||||
2024 | 2024 | 2023 | Prior Qtr | Prior Yr. | ||||||||||||||||
Revenue from Continuing Operations | $ | 173 | $ | 159 | $ | 166 | 9 | % | 4 | % | ||||||||||
Organic growth | 5 | % | ||||||||||||||||||
Sample Management Solutions | $ | 81 | $ | 74 | $ | 75 | 9 | % | 7 | % | ||||||||||
Multiomics | $ | 64 | $ | 62 | $ | 64 | 2 | % | (0) | % | ||||||||||
B Medical Systems | $ | 29 | $ | 23 | $ | 27 | 25 | % | 7 | % | ||||||||||
Diluted EPS Continuing Operations | $ | (0.12) | $ | (2.47) | $ | (0.04) | 95 | % | nm | |||||||||||
Diluted EPS Total | $ | (0.12) | $ | (2.47) | $ | (0.02) | 95 | % | nm | |||||||||||
Non-GAAP Diluted EPS Continuing Operations | $ | 0.16 | $ | 0.05 | $ | 0.13 | nm | 25 | % | |||||||||||
Adjusted EBITDA - Continuing Operations | $ | 18 | $ | 9 | $ | 13 | 89 | % | 39 | % | ||||||||||
Adjusted EBITDA Margin - Continuing Operations | 10.3 | % | 5.9 | % | 7.8 | % | ||||||||||||||
Management Comments
"We delivered another solid quarter with above market growth, that together with the disciplined execution of our transformation initiatives, contributed to meaningful margin expansion and increased profitability," said Steve Schwartz, President and CEO. "We are delivering not only to outsized growth, but also the operational transformation that will enable long-term scale, efficiency, and profitability for Azenta."
Third Quarter Fiscal 2024 Results
Summary of GAAP Earnings Results
Summary of Non-GAAP Earnings Results
Cash and Liquidity as of June 30, 2024
Share Repurchase Program Update
Guidance for Continuing Operations for Full Year Fiscal 2024
Conference Call and Webcast
Azenta management will webcast its third 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.
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; 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
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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, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | ||||||||||||||||
Products | $ | 68,763 | $ | 67,296 | $ | 181,173 | $ | 205,011 | ||||||||
Services | 104,046 | 98,652 | 305,087 | 287,704 | ||||||||||||
Total revenue | 172,809 | 165,948 | 486,260 | 492,715 | ||||||||||||
Cost of revenue | ||||||||||||||||
Products | 47,555 | 42,747 | 126,051 | 136,855 | ||||||||||||
Services | 56,198 | 55,196 | 166,256 | 160,754 | ||||||||||||
Total cost of revenue | 103,753 | 97,943 | 292,307 | 297,609 | ||||||||||||
Gross profit | 69,056 | 68,005 | 193,953 | 195,106 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 7,913 | 8,968 | 25,113 | 25,024 | ||||||||||||
Selling, general and administrative | 73,833 | 75,465 | 230,723 | 241,356 | ||||||||||||
Impairment of goodwill and intangible assets | — | — | 115,975 | — | ||||||||||||
Contingent consideration - fair value adjustments | — | (1,404) | — | (18,549) | ||||||||||||
Restructuring charges | 2,064 | 812 | 10,528 | 3,773 | ||||||||||||
Total operating expenses | 83,810 | 83,841 | 382,339 | 251,604 | ||||||||||||
Operating loss | (14,754) | (15,836) | (188,386) | (56,498) | ||||||||||||
Other income | ||||||||||||||||
Interest income, net | 8,004 | 11,347 | 27,650 | 32,406 | ||||||||||||
Other income (expense), net | (282) | 819 | 650 | (704) | ||||||||||||
Loss before income taxes | (7,032) | (3,670) | (160,086) | (24,796) | ||||||||||||
Income tax benefit | (450) | (1,207) | (900) | (9,107) | ||||||||||||
Loss from continuing operations | (6,582) | (2,463) | (159,186) | (15,689) | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | 993 | — | (1,943) | ||||||||||||
Net loss | $ | (6,582) | $ | (1,470) | $ | (159,186) | $ | (17,632) | ||||||||
Basic net loss per share: | ||||||||||||||||
Loss from continuing operations | $ | (0.12) | $ | (0.04) | $ | (2.90) | $ | (0.23) | ||||||||
Income (loss) from discontinued operations, net of tax | — | 0.02 | — | (0.03) | ||||||||||||
Basic net loss per share | $ | (0.12) | $ | (0.02) | $ | (2.90) | $ | (0.26) | ||||||||
Diluted net loss per share: | ||||||||||||||||
Loss from continuing operations | $ | (0.12) | $ | (0.04) | $ | (2.90) | $ | (0.23) | ||||||||
Income (loss) from discontinued operations, net of tax | — | 0.02 | — | (0.03) | ||||||||||||
Diluted net loss per share | $ | (0.12) | $ | (0.02) | $ | (2.90) | $ | (0.26) | ||||||||
Weighted average shares used in computing net loss per share: | ||||||||||||||||
Basic | 52,963 | 63,432 | 54,914 | 68,494 | ||||||||||||
Diluted | 52,963 | 63,432 | 54,914 | 68,494 | ||||||||||||
AZENTA, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data) | ||||||||
June 30, | September 30, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 336,543 | $ | 678,910 | ||||
Short-term marketable securities | 259,296 | 338,873 | ||||||
Accounts receivable, net of allowance for expected credit losses ($6,507 and $8,057, respectively) | 167,613 | 156,535 | ||||||
Inventories | 115,270 | 128,198 | ||||||
Derivative asset | 834 | 13,036 | ||||||
Prepaid expenses and other current assets | 88,102 | 103,404 | ||||||
Total current assets | 967,658 | 1,418,956 | ||||||
Property, plant and equipment, net | 196,124 | 205,744 | ||||||
Long-term marketable securities | 148,086 | 111,338 | ||||||
Long-term deferred tax assets | 1,231 | 571 | ||||||
Goodwill | 679,691 | 784,339 | ||||||
Intangible assets, net | 253,475 | 294,301 | ||||||
Other assets | 77,030 | 70,471 | ||||||
Total assets | $ | 2,323,295 | $ | 2,885,720 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 39,115 | $ | 35,796 | ||||
Deferred revenue | 33,268 | 34,614 | ||||||
Accrued warranty and retrofit costs | 9,351 | 10,223 | ||||||
Accrued compensation and benefits | 31,229 | 33,911 | ||||||
Accrued customer deposits | 20,954 | 17,707 | ||||||
Accrued income taxes payable | 11,705 | 7,378 | ||||||
Short-term operating lease liability | 10,739 | 9,499 | ||||||
Accrued expenses and other current liabilities | 46,213 | 61,800 | ||||||
Total current liabilities | 202,574 | 210,928 | ||||||
Long-term deferred tax liabilities | 58,080 | 67,301 | ||||||
Long-term operating lease liabilities | 60,654 | 60,436 | ||||||
Other long-term liabilities | 11,589 | 12,555 | ||||||
Total liabilities | 332,897 | 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, 63,941,421 shares issued and | 639 | 713 | ||||||
Additional paid-in capital | 758,269 | 1,156,160 | ||||||
Accumulated other comprehensive loss | (44,895) | (62,426) | ||||||
Treasury stock, at cost - 13,546,350 shares at June 30, 2024 and 13,461,869 shares at | (205,438) | (200,956) | ||||||
Retained earnings | 1,481,823 | 1,641,009 | ||||||
Total stockholders' equity | 1,990,398 | 2,534,500 | ||||||
Total liabilities and stockholders' equity | $ | 2,323,295 | $ | 2,885,720 | ||||
AZENTA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) | ||||||||
Nine Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (159,186) | $ | (17,632) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 66,899 | 63,443 | ||||||
Impairment of goodwill and intangible assets | 115,975 | — | ||||||
Non-cash write-offs of assets | 10,745 | — | ||||||
Stock-based compensation | 12,622 | 10,091 | ||||||
Contingent consideration adjustment | — | (18,549) | ||||||
Amortization and accretion on marketable securities | (4,706) | (6,942) | ||||||
Deferred income taxes | (12,478) | (25,149) | ||||||
Purchase accounting impact on inventory | — | 8,737 | ||||||
Loss on disposals of property, plant and equipment | 297 | 37 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (10,923) | 29,028 | ||||||
Inventories | 11,433 | (4,104) | ||||||
Accounts payable | 2,831 | (13,193) | ||||||
Deferred revenue | (1,635) | 2,496 | ||||||
Accrued warranty and retrofit costs | (1,080) | 1,412 | ||||||
Accrued compensation and tax withholdings | (2,825) | (15,830) | ||||||
Accrued restructuring costs | 1,125 | 311 | ||||||
Other assets and liabilities | 7,484 | (36,578) | ||||||
Net cash provided by (used in) operating activities | 36,578 | (22,422) | ||||||
Cash flows from investing activities | ||||||||
Purchases of property, plant and equipment | (25,339) | (29,218) | ||||||
Purchases of marketable securities | (378,275) | (236,194) | ||||||
Sales and maturities of marketable securities | 431,544 | 951,504 | ||||||
Net investment hedge settlement | 1,476 | 29,313 | ||||||
Acquisitions, net of cash acquired | — | (386,508) | ||||||
Net cash provided by investing activities | 29,406 | 328,897 | ||||||
Cash flows from financing activities | ||||||||
Payments of finance leases | (584) | (181) | ||||||
Withholding tax payments on net share settlements on equity awards | — | (4,924) | ||||||
Proceeds from Employee Stock Purchase Plan | 1,678 | — | ||||||
Share repurchases | (412,755) | (672,116) | ||||||
Net cash used in financing activities | (411,661) | (677,221) | ||||||
Effects of exchange rate changes on cash and cash equivalents | 8,495 | 65,610 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (337,182) | (305,136) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 684,045 | 1,041,296 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 346,863 | $ | 736,160 | ||||
Supplemental disclosures: | ||||||||
Cash paid for income taxes, net | 6,710 | 41,064 | ||||||
Purchases of property, plant and equipment included in accounts payable and accrued expenses | 2,203 | 2,437 | ||||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | ||||||||
June 30, | September 30, | |||||||
2024 | 2023 | |||||||
Cash and cash equivalents of continuing operations | $ | 336,543 | $ | 678,910 | ||||
Short-term restricted cash included in prepaid expenses and other current assets | 2,771 | 4,650 | ||||||
Long-term restricted cash included in other assets | 7,549 | 485 | ||||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidatedstatementsof cash flows | $ | 346,863 | $ | 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 | ||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||
per diluted | per diluted | per diluted | ||||||||||||||||||||||
Amounts in thousands, except per share data | $ | share | $ | share | $ | share | ||||||||||||||||||
Net loss from continuing operations | $ | (6,582) | $ | (0.12) | $ | (136,880) | $ | (2.47) | $ | (2,463) | $ | (0.04) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed technology | 6,316 | 0.12 | 6,373 | 0.11 | 4,656 | 0.07 | ||||||||||||||||||
Purchase accounting impact on inventory | — | — | — | — | 2,956 | 0.05 | ||||||||||||||||||
Amortization of other intangible assets | 6,621 | 0.13 | 6,654 | 0.12 | 7,522 | 0.12 | ||||||||||||||||||
Transformation costs (1) | 4,255 | 0.08 | 4,446 | 0.08 | 21 | 0.00 | ||||||||||||||||||
Restructuring and restructuring related charges | 2,064 | 0.04 | 7,344 | 0.13 | 812 | 0.01 | ||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | 115,975 | 2.09 | — | — | ||||||||||||||||||
Contingent consideration - fair value adjustments | — | — | — | — | (1,404) | (0.02) | ||||||||||||||||||
Merger and acquisition costs and costs related to share repurchase (2) | 74 | 0.00 | 426 | 0.01 | 219 | 0.00 | ||||||||||||||||||
Tax adjustments (3) | (9) | (0.00) | 1,659 | 0.03 | (31) | (0.00) | ||||||||||||||||||
Tax effect of adjustments | (4,000) | (0.09) | (3,200) | (0.06) | (3,947) | (0.06) | ||||||||||||||||||
Non-GAAP adjusted net income from continuing operations | $ | 8,739 | $ | 0.16 | $ | 2,797 | $ | 0.05 | $ | 8,341 | $ | 0.13 | ||||||||||||
Stock based compensation, pre-tax | 3,818 | 0.07 | 5,602 | 0.10 | 3,995 | 0.06 | ||||||||||||||||||
Tax rate | 15 | % | — | 15 | % | — | 15 | % | — | |||||||||||||||
Stock-based compensation, net of tax | 3,245 | 0.07 | 4,762 | 0.09 | 3,396 | 0.05 | ||||||||||||||||||
Non-GAAP adjusted net income excluding stock-based | $ | 11,984 | $ | 0.23 | $ | 7,559 | $ | 0.14 | $ | 11,737 | $ | 0.18 | ||||||||||||
Shares used in computing non-GAAP diluted net income per share | — | 52,963 | — | 55,440 | — | 63,432 | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||||
per diluted | per diluted | |||||||||||||||
Amounts in thousands, except per share data | $ | share | $ | share | ||||||||||||
Net loss from continuing operations | $ | (159,186) | $ | (2.90) | $ | (15,689) | $ | (0.23) | ||||||||
Adjustments: | ||||||||||||||||
Amortization of completed technology | 18,315 | 0.33 | 13,725 | 0.20 | ||||||||||||
Purchase accounting impact on inventory | — | — | 8,737 | 0.13 | ||||||||||||
Amortization of other intangible assets | 20,136 | 0.37 | 22,403 | 0.33 | ||||||||||||
Transformation costs(1) | 8,742 | 0.16 | (34) | (0.00) | ||||||||||||
Restructuring and restructuring related charges | 10,528 | 0.19 | 3,773 | 0.06 | ||||||||||||
Impairment of goodwill and intangible assets | 115,975 | 2.11 | — | — | ||||||||||||
Contingent consideration - fair value adjustments | — | — | (18,549) | (0.27) | ||||||||||||
Merger and acquisition costs and costs related to share repurchase (2) | 4,821 | 0.09 | 12,075 | 0.18 | ||||||||||||
Indemnification asset release | — | — | (19) | (0.00) | ||||||||||||
Tax adjustments (3) | 3,508 | 0.06 | (1,411) | (0.02) | ||||||||||||
Tax effect of adjustments | (9,888) | (0.18) | (11,881) | (0.17) | ||||||||||||
Non-GAAP adjusted net income from continuing operations | $ | 12,951 | $ | 0.24 | $ | 13,130 | $ | 0.19 | ||||||||
Stock-based compensation, pre-tax | 12,622 | 0.23 | 10,091 | 0.15 | ||||||||||||
Tax rate | 15 | % | — | 15 | % | — | ||||||||||
Stock-based compensation, net of tax | 10,729 | $ | 0.20 | 8,577 | $ | 0.13 | ||||||||||
Non-GAAP adjusted net income excluding stock-based | $ | 23,680 | $ | 0.43 | $ | 21,707 | $ | 0.32 | ||||||||
Shares used in computing non-GAAP diluted net income per share | — | 54,914 | — | 68,494 | ||||||||||||
(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 nine months ended June 30, 2024 exclude the impact of recording valuation allowance adjustments against U.S. and foreign deferred tax assets in the amount of $2.4M and tax adjustments for the nine months ended June 30, 2023 exclude a $1.3M US GAAP tax benefit related to an incentive tax rate change in China. |
Quarter Ended | Nine Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
Dollars in thousands | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
GAAP net loss | $ | (6,582) | $ | (136,880) | $ | (1,470) | $ | (159,186) | $ | (17,632) | ||||||||||
Less: Income (loss) from discontinued operations | — | — | 993 | — | (1,943) | |||||||||||||||
GAAP net loss from continuing operations | (6,582) | (136,880) | (2,463) | (159,186) | (15,689) | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Less: Interest income, net | (8,004) | (9,565) | (11,347) | (27,650) | (32,406) | |||||||||||||||
Add / Less: Income tax (benefit) expense | (450) | (260) | (1,207) | (900) | (9,107) | |||||||||||||||
Add: Depreciation | 9,749 | 9,321 | 9,126 | 28,446 | 27,315 | |||||||||||||||
Add: Amortization of completed technology | 6,316 | 6,373 | 4,656 | 18,315 | 13,725 | |||||||||||||||
Add: Amortization of other intangible assets | 6,621 | 6,654 | 7,522 | 20,136 | 22,403 | |||||||||||||||
Earnings before interest, taxes, depreciation and | $ | 7,650 | $ | (124,357) | $ | 6,287 | $ | (120,839) | $ | 6,241 | ||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
Dollars in thousands | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Earnings before interest, taxes, depreciation and | $ | 7,650 | $ | (124,357) | $ | 6,287 | $ | (120,839) | $ | 6,241 | ||||||||||
Adjustments: | ||||||||||||||||||||
Add: Stock-based compensation | 3,818 | 5,602 | 3,995 | 12,622 | 10,091 | |||||||||||||||
Add: Purchase accounting impact on inventory | — | — | 2,956 | — | 8,737 | |||||||||||||||
Add: Restructuring and restructuring related charges | 2,064 | 7,344 | 812 | 10,528 | 3,773 | |||||||||||||||
Add: Merger and acquisition costs and costs related to | 74 | 426 | 219 | 4,821 | 12,075 | |||||||||||||||
Add: Impairment of goodwill and intangible assets | — | 115,975 | — | 115,975 | — | |||||||||||||||
Less: Contingent consideration - fair value adjustments | — | — | (1,404) | — | (18,549) | |||||||||||||||
Less: Transformation costs(2) | 4,255 | 4,446 | 21 | 8,742 | (34) | |||||||||||||||
Less: Indemnification asset release | — | — | — | — | (19) | |||||||||||||||
Adjusted earnings before interest, taxes, depreciation and | $ | 17,861 | $ | 9,436 | $ | 12,886 | $ | 31,849 | $ | 22,315 | ||||||||||
(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 | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||
GAAP gross profit | $ | 69,056 | 40.0 | % | $ | 63,385 | 39.8 | % | $ | 68,005 | 41.0 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed technology | 6,316 | 3.7 | % | 6,373 | 4.0 | % | 4,656 | 2.8 | % | |||||||||||||||
Purchase accounting impact on inventory | — | — | — | — | 2,956 | 1.8 | % | |||||||||||||||||
Transformation costs(1) | 2,656 | 1.5 | % | 710 | 0.4 | % | — | — | ||||||||||||||||
Non-GAAP adjusted gross profit | $ | 78,028 | 45.2 | % | $ | 70,468 | 44.3 | % | $ | 75,617 | 45.6 | % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Dollars in thousands | June 30, 2024 | June 30, 2023 | ||||||||||||||
GAAP gross profit | $ | 193,953 | 39.9 | % | $ | 195,106 | 39.6 | % | ||||||||
Adjustments: | ||||||||||||||||
Amortization of completed technology | 18,315 | 3.8 | % | 13,725 | 2.8 | % | ||||||||||
Purchase accounting impact on inventory | — | — | 8,737 | 1.8 | % | |||||||||||
Transformation costs(1) | 3,365 | 0.7 | % | — | — | |||||||||||
Non-GAAP adjusted gross profit | $ | 215,633 | 44.3 | % | $ | 217,568 | 44.2 | % | ||||||||
(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 | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | |||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
GAAP gross profit | $ | 36,279 | 45.0 | % | $ | 32,943 | 44.4 | % | $ | 34,930 | 46.4 | % | $ | 29,199 | 45.9 | % | $ | 27,721 | 44.6 | % | $ | 28,294 | 44.3 | % | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of completed technology | 1,010 | 1.3 | % | 1,027 | 1.4 | % | 744 | 1.0 | % | 1,038 | 1.6 | % | 1,040 | 1.7 | % | 1,220 | 1.9 | % | ||||||||||||||||||||||||||||||
Transformation costs(1) | (127) | (0.2) | % | 359 | 0.5 | % | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 37,162 | 46.1 | % | $ | 34,329 | 46.3 | % | $ | 35,674 | 47.4 | % | $ | 30,237 | 47.5 | % | $ | 28,761 | 46.2 | % | $ | 29,514 | 46.2 | % | ||||||||||||||||||||||||
B Medical Systems | Segment Total | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | |||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
GAAP gross profit | $ | 3,578 | 12.5 | % | $ | 2,721 | 11.9 | % | $ | 4,781 | 17.9 | % | $ | 69,056 | 40.0 | % | $ | 63,385 | 39.8 | % | $ | 68,005 | 41.0 | % | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of completed technology | 4,268 | 15.0 | % | 4,306 | 18.9 | % | 2,692 | 10.1 | % | 6,316 | 3.7 | % | 6,373 | 4.0 | % | 4,656 | 2.8 | % | ||||||||||||||||||||||||||||||
Purchase accounting impact on inventory | — | — | — | — | 2,956 | 11.0 | % | — | — | — | — | 2,956 | 1.8 | % | ||||||||||||||||||||||||||||||||||
Transformation costs(1) | 2,783 | 9.8 | % | 351 | 1.5 | % | — | — | 2,656 | 1.5 | % | 710 | 0.4 | % | — | — | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 10,629 | 37.3 | % | $ | 7,378 | 32.4 | % | $ | 10,429 | 39.0 | % | $ | 78,028 | 45.2 | % | $ | 70,468 | 44.3 | % | $ | 75,617 | 45.6 | % | ||||||||||||||||||||||||
Sample Management Solutions | Multiomics | |||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Dollars in thousands | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||
GAAP gross profit | $ | 102,494 | 43.8 | % | $ | 94,509 | 42.6 | % | $ | 85,391 | 45.3 | % | $ | 83,013 | 44.4 | % | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Amortization of completed technology | 2,853 | 1.2 | % | 2,106 | 0.9 | % | 3,117 | 1.7 | % | 3,661 | 2.0 | % | ||||||||||||||||||||
Transformation costs(1) | 231 | 0.1 | % | — | — | — | — | — | — | |||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 105,578 | 45.2 | % | $ | 96,615 | 43.6 | % | $ | 88,508 | 46.9 | % | $ | 86,674 | 46.3 | % | ||||||||||||||||
B Medical Systems | Segment Total | |||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Dollars in thousands | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||
GAAP gross profit | $ | 6,068 | 9.5 | % | $ | 17,584 | 21.0 | % | $ | 193,953 | 39.9 | % | $ | 195,106 | 39.6 | % | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Amortization of completed technology | 12,345 | 19.3 | % | 7,957 | 9.5 | % | 18,315 | 3.8 | % | 13,724 | 2.8 | % | ||||||||||||||||||||
Purchase accounting impact on inventory and contracts acquired | — | — | 8,737 | 10.4 | % | — | — | 8,737 | 1.8 | % | ||||||||||||||||||||||
Transformation costs(1) | 3,134 | 4.9 | % | — | — | 3,365 | 0.7 | % | — | — | ||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 21,547 | 33.7 | % | $ | 34,278 | 41.0 | % | $ | 215,633 | 44.3 | % | $ | 217,567 | 44.2 | % | ||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | June 30, | March 31, | June 30, | ||||||||||||||||||||||||||||
Dollars in thousands | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
GAAP operating (loss) profit | $ | 2,469 | $ | (3,005) | $ | 70 | $ | (1,768) | $ | (4,006) | $ | (4,632) | $ | (5,142) | $ | (5,810) | $ | (4,129) | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Amortization of completed technology | 1,010 | 1,027 | 744 | 1,038 | 1,040 | 1,220 | 4,268 | 4,306 | 2,692 | |||||||||||||||||||||||||||
Purchase accounting impact on inventory | — | — | — | — | — | — | — | — | 2,956 | |||||||||||||||||||||||||||
Amortization of other intangible assets | 51 | 52 | (1) | — | — | — | — | — | 1 | |||||||||||||||||||||||||||
Transformation costs(1) | (127) | 359 | — | — | — | — | 2,783 | 351 | — | |||||||||||||||||||||||||||
Other adjustment | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | 3,404 | $ | (1,567) | $ | 813 | $ | (730) | $ | (2,966) | $ | (3,412) | $ | 1,908 | $ | (1,153) | $ | 1,520 | ||||||||||||||||||
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 | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
GAAP operating loss | $ | (4,441) | $ | (12,821) | $ | (8,691) | $ | (10,313) | $ | (134,134) | $ | (7,145) | $ | (14,754) | $ | (146,955) | $ | (15,836) | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Amortization of completed technology | 6,316 | 6,373 | 4,656 | — | — | — | 6,316 | 6,373 | 4,656 | |||||||||||||||||||||||||||
Purchase accounting impact on inventory | — | — | 2,956 | — | — | — | — | — | 2,956 | |||||||||||||||||||||||||||
Amortization of other intangible assets | 51 | 52 | — | 6,570 | 6,602 | 7,522 | 6,621 | 6,654 | 7,522 | |||||||||||||||||||||||||||
Transformation costs(1) | 2,656 | 710 | — | 1,599 | 3,736 | 21 | 4,255 | 4,446 | 21 | |||||||||||||||||||||||||||
Restructuring charges | — | — | — | 2,064 | 7,344 | 812 | 2,064 | 7,344 | 812 | |||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | — | — | 115,975 | — | — | 115,975 | — | |||||||||||||||||||||||||||
Contingent consideration adjustment | — | — | — | — | — | (1,404) | — | — | (1,404) | |||||||||||||||||||||||||||
Merger and acquisition costs and costs related to share repurchase (2) | — | — | — | 74 | 426 | 219 | 74 | 426 | 219 | |||||||||||||||||||||||||||
Other adjustment | — | — | — | (1) | — | (2) | (1) | — | (2) | |||||||||||||||||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | 4,582 | $ | (5,686) | $ | (1,079) | $ | (7) | $ | (51) | $ | 23 | $ | 4,575 | $ | (5,737) | $ | (1,056) | ||||||||||||||||||
Sample Management | Multiomics | B Medical Systems | ||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Dollars in thousands | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
GAAP operating loss | $ | (2,259) | $ | (10,627) | $ | (10,264) | $ | (14,150) | $ | (19,133) | $ | (13,604) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed technology | 2,853 | 2,106 | 3,117 | 3,661 | 12,345 | 7,957 | ||||||||||||||||||
Purchase accounting impact on inventory | — | — | — | — | — | 8,737 | ||||||||||||||||||
Amortization of other intangibles | 154 | 259 | — | — | — | 1,366 | ||||||||||||||||||
Transformation costs(1) | 231 | — | — | — | 3,134 | — | ||||||||||||||||||
Other adjustment | 2 | 1 | — | 2 | — | — | ||||||||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | 981 | $ | (8,261) | $ | (7,147) | $ | (10,487) | $ | (3,654) | $ | 4,456 | ||||||||||||
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, | ||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
GAAP operating loss | $ | (31,656) | $ | (38,381) | $ | (156,730) | $ | (18,117) | $ | (188,386) | $ | (56,498) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed technology | 18,315 | 13,724 | — | 1 | 18,315 | 13,725 | ||||||||||||||||||
Purchase accounting impact on inventory | — | 8,737 | — | — | — | 8,737 | ||||||||||||||||||
Amortization of other intangibles | 154 | 1,625 | 19,982 | 20,778 | 20,136 | 22,403 | ||||||||||||||||||
Transformation costs(1) | 3,365 | — | 5,377 | (34) | 8,742 | (34) | ||||||||||||||||||
Restructuring and restructuring related charges | — | — | 10,528 | 3,773 | 10,528 | 3,773 | ||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | 115,975 | — | 115,975 | — | ||||||||||||||||||
Contingent consideration - fair value adjustments | — | — | — | (18,549) | — | (18,549) | ||||||||||||||||||
Merger and acquisition costs and costs related to share repurchase (2) | — | — | 4,821 | 12,075 | 4,821 | 12,075 | ||||||||||||||||||
Other adjustment | 2 | 3 | (1) | (3) | 1 | — | ||||||||||||||||||
Non-GAAP adjusted operating loss | $ | (9,820) | $ | (14,292) | $ | (48) | $ | (76) | $ | (9,868) | $ | (14,368) | ||||||||||||
(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 | Multiomics | B Medical | Azenta Total | |||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||
Dollars in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||||||
Revenue | $ | 81 | $ | 75 | 7 | % | $ | 64 | $ | 64 | (0) | % | $ | 29 | $ | 27 | 7 | % | $ | 173 | $ | 166 | 4 | % | ||||||||||||||||||||||||
Acquisitions/ | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Currency exchange | (0) | — | 0 | % | (1) | — | 1 | % | (0) | — | 1 | % | (1) | — | 1 | % | ||||||||||||||||||||||||||||||||
Organic revenue | $ | 81 | $ | 75 | 7 | % | $ | 64 | $ | 64 | 1 | % | $ | 29 | $ | 27 | 8 | % | $ | 174 | $ | 166 | 5 | % | ||||||||||||||||||||||||
Sample | Multiomics | B Medical | Azenta Total | |||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||
Dollars in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||||||
Revenue | $ | 234 | $ | 222 | 5 | % | $ | 189 | $ | 187 | 1 | % | $ | 64 | $ | 84 | (24) | % | $ | 486 | $ | 493 | (1) | % | ||||||||||||||||||||||||
Acquisitions/ | 1 | — | (1) | % | — | — | — | — | — | — | 1 | — | (0) | % | ||||||||||||||||||||||||||||||||||
Currency exchange | 2 | — | (1) | % | (1) | — | 1 | % | 1 | — | (1) | % | 1 | — | (0) | % | ||||||||||||||||||||||||||||||||
Organic revenue | $ | 231 | $ | 222 | 4 | % | $ | 190 | $ | 187 | 1 | % | $ | 63 | $ | 84 | (24) | % | $ | 484 | $ | 493 | (2) | % | ||||||||||||||||||||||||
| Last Trade: | US$48.16 |
| Daily Change: | -0.36 -0.74 |
| Daily Volume: | 715,803 |
| Market Cap: | US$2.360B |
September 04, 2024 August 12, 2024 | |
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