BURLINGTON, Mass., Feb. 5, 2025
/PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported
financial results for the first quarter ended December 31, 2024.
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The results of B
Medical Systems are treated as discontinued operations and
reflected in total diluted EPS, following the Company's
announcement in the fourth fiscal quarter of 2024 of its
intention to pursue a sale.
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Quarter
Ended
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Dollars in millions,
except per share data
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December
31,
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September
30,
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December
31,
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Change
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2024
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2024
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2023
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Prior
Qtr
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Prior
Yr.
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Revenue from Continuing
Operations
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$
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148
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$
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151
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$
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142
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(2)
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%
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4
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%
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Organic
growth
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4
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%
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Sample Management
Solutions
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$
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81
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$
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85
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$
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79
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(4)
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%
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3
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%
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Multiomics
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$
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66
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$
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66
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$
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63
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0
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%
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6
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%
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Diluted EPS Continuing
Operations
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$
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(0.21)
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$
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(0.00)
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$
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(0.13)
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NM
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(63)
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%
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Diluted EPS
Total
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$
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(0.29)
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$
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(0.10)
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$
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(0.28)
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NM
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(5)
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%
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Non-GAAP Diluted EPS
Continuing Operations
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$
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0.08
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$
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0.22
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$
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0.08
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(64)
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%
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(1)
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%
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Adjusted EBITDA -
Continuing Operations
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$
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13
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$
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18
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$
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7
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(25)
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%
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89
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%
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Adjusted EBITDA
Margin - Continuing Operations
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9.0
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%
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11.8
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%
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5.0
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%
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Management Comments
"Our first quarter results
represent a strong start to fiscal 2025 as we see positive momentum
in the demand for our unique offering of Sample Management
Solutions and Multiomics services," stated John Marotta,
President and CEO. "Starting the year like this gives us confidence
in the strength of our unique market positioning, value proposition
and ability to continue evolving to our customers' needs while
delivering profitable growth. We continue to see the benefit
of our transformation initiatives and our free cash flow was
strong. We are encouraged by the progress we are making."
First Quarter Fiscal 2025 Results - Continuing
Operations
- Revenue was $148 million, up 4%
year over year. Organic revenue, which excludes a nominal impact
from foreign exchange, was also up 4% year over year. The
year-over-year revenue increase was attributable to
higher Multiomics and Sample Management Solutions
revenues.
- Sample Management Solutions revenue was $81 million, up 3% year over year.
- Organic revenue grew 2%, mainly driven by higher revenues in
Sample Repository Solutions and Core Products, particularly in
Consumables and Instruments and Clinical and Cryogenic Stores
Systems.
- Multiomics revenue was $66
million, up 6% year over year.
- Organic revenue also grew 6% year over year, primarily driven
by growth in Next Generation Sequencing and Gene Synthesis,
partially offset by a year-over-year decline in Sanger
Sequencing.
Summary of GAAP Earnings Results - Continuing
Operations
- Operating loss was $11 million.
Operating margin was (7.7%), up 380 basis points year over year.
- Gross margin was 46.6%, up 300 basis points year over year,
driven by higher revenue, favorable sales mix, operational
efficiencies, lower amortization costs, and certain non-recurring
items recorded in the same period last year.
- Operating expenses were $80
million, up 3% year over year, driven by higher selling,
general and administrative expenses, partially offset by lower
research and development costs, as well as lower restructuring
charges.
- Other income included $4 million
of net interest income versus $10
million in the prior year period.
- Diluted EPS from continuing operations was ($0.21) compared to ($0.13) in the first quarter of fiscal year
2024. Diluted EPS from discontinued operations was ($0.09). Total diluted EPS was ($0.29), compared to ($0.28) a year ago.
Summary of Non-GAAP Earnings Results - Continuing
Operations
- Adjusted operating loss was $0.2
million. Adjusted operating margin was (0.2%), an
improvement of 260 basis points year over year.
- Adjusted gross margin was 47.6%, up 270 basis points compared
to the first quarter of fiscal 2024, primarily driven by higher
revenue, favorable sales mix, operating efficiencies and certain
non-recurring items recorded in the same period last year.
- Adjusted operating expense in the quarter was $70 million, up 4% year over year, primarily
driven by higher selling, general and administrative expenses,
partially offset by lower research and development costs.
- Adjusted EBITDA was $13 million,
and Adjusted EBITDA margin was 9.0%, an improvement of 400 basis
points year over year.
- Non-GAAP Diluted EPS was $0.08,
compared to $0.08 one year ago.
Cash and Liquidity as of December 31,
2024
- The Company ended the quarter with a total balance of cash,
cash equivalents, restricted cash and marketable securities of
$530 million, which includes
$27 million of cash held in
discontinued operations.
- Operating cash flow was $30
million in the quarter. Capital expenditures were
$8 million, and free cash flow (cash
flow from operations less capital expenditures) was $22 million.
Guidance for Continuing Operations for Full Year Fiscal
2025
- The Company is reiterating its revenue guidance for fiscal year
2025:
- Total organic revenue is expected to grow in the range of 3% to
5% relative to fiscal 2024.
- Adjusted EBITDA margin expansion is expected to be
approximately 300 basis points relative to fiscal 2024.
Azenta does not provide forward-looking guidance on a GAAP basis
for the measures on which it provides forward-looking non-GAAP
guidance as the Company is unable to provide a quantitative
reconciliation of forward-looking non-GAAP measures to the most
directly comparable forward-looking GAAP measure,
without unreasonable effort, because of the inherent
difficulty in accurately forecasting the occurrence and financial
impact of the various adjusting items necessary for such
reconciliations that have not yet occurred, are dependent on
various factors, are out of the company's control, or cannot be
reasonably predicted. Such adjustments include, but are not
limited to, transformation costs, restructuring charges, costs
related to acquisitions and divestitures costs, governance-related
matters, goodwill and intangible impairments, and other gains and
charges that are not representative of the normal operations of the
business.
Conference Call and Webcast
Azenta management will
webcast its first quarter fiscal 2025 earnings conference
call today at 8:30 a.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
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 and statements of operations.
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 circumstance 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,
and Barkey.
Azenta is headquartered in Burlington,
Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit
www.azenta.com.
AZENTA INVESTOR CONTACTS:
Yvonne Perron
Vice President, Financial Planning & Analysis and Investor
Relations
ir@azenta.com
Sherry Dinsmore
sherry.dinsmore@azenta.com
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AZENTA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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(In thousands, except
per share data)
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Three Months
Ended
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December
31,
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2024
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2023
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Revenue
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Products
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$
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43,827
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|
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$
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43,707
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Services
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103,683
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|
|
|
98,018
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Total
revenue
|
|
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147,510
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|
|
|
141,725
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|
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Cost of
revenue
|
|
|
|
|
|
|
|
Products
|
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25,334
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|
|
|
26,783
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|
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Services
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53,505
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|
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|
53,199
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Total cost of
revenue
|
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78,839
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|
|
|
79,982
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Gross profit
|
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68,671
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|
61,743
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Operating
expenses
|
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Research and
development
|
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|
6,380
|
|
|
|
7,313
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Selling, general and
administrative
|
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73,213
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|
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|
69,889
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Restructuring
charges
|
|
|
431
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|
|
|
786
|
|
|
Total operating
expenses
|
|
|
80,024
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|
|
|
77,988
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|
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Operating
loss
|
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|
(11,353)
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|
|
|
(16,245)
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|
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Other income
|
|
|
|
|
|
|
|
Interest income,
net
|
|
|
4,298
|
|
|
|
9,955
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|
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Other income,
net
|
|
|
1,203
|
|
|
|
518
|
|
|
Loss before income
taxes
|
|
|
(5,852)
|
|
|
|
(5,772)
|
|
|
Income tax
expense
|
|
|
3,569
|
|
|
|
1,420
|
|
|
Loss from continuing
operations
|
|
|
(9,421)
|
|
|
|
(7,192)
|
|
|
Loss from discontinued
operations, net of tax
|
|
|
(3,919)
|
|
|
|
(8,532)
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|
|
Net loss
|
|
$
|
(13,340)
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|
|
$
|
(15,724)
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|
|
Basic net loss per
share:
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|
|
|
|
|
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Loss from continuing
operations
|
|
$
|
(0.21)
|
|
|
$
|
(0.13)
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|
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Loss from discontinued
operations, net of tax
|
|
|
(0.09)
|
|
|
|
(0.15)
|
|
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Basic net loss per
share
|
|
$
|
(0.29)
|
|
|
$
|
(0.28)
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|
Diluted net loss per
share:
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.21)
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|
|
$
|
(0.13)
|
|
|
Loss from discontinued
operations, net of tax
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|
|
(0.09)
|
|
|
|
(0.15)
|
|
|
Diluted net loss per
share
|
|
$
|
(0.29)
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|
|
$
|
(0.28)
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|
|
Weighted average shares
used in computing net loss per share:
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|
|
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Basic
|
|
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45,626
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56,709
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Diluted
|
|
|
45,626
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|
|
|
56,709
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AZENTA, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
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December
31,
|
|
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September
30,
|
|
|
|
2024
|
|
|
2024
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
377,494
|
|
|
$
|
280,030
|
|
|
Short-term marketable
securities
|
|
|
85,951
|
|
|
|
151,162
|
|
|
Accounts receivable,
net of allowance for expected credit losses ($5,182 and $5,349,
respectively)
|
|
|
155,038
|
|
|
|
156,273
|
|
|
Inventories
|
|
|
81,006
|
|
|
|
78,923
|
|
|
Short-term restricted
cash
|
|
|
2,080
|
|
|
|
2,069
|
|
|
Prepaid expenses and
other current assets
|
|
|
72,140
|
|
|
|
75,456
|
|
|
Current assets held
for sale
|
|
|
72,573
|
|
|
|
88,894
|
|
|
Total current
assets
|
|
|
846,282
|
|
|
|
832,807
|
|
|
Property, plant and
equipment, net
|
|
|
149,666
|
|
|
|
155,622
|
|
|
Long-term marketable
securities
|
|
|
29,533
|
|
|
|
49,454
|
|
|
Long-term deferred tax
assets
|
|
|
627
|
|
|
|
837
|
|
|
Operating lease
right-of-use assets
|
|
|
60,460
|
|
|
|
60,406
|
|
|
Goodwill
|
|
|
672,906
|
|
|
|
691,409
|
|
|
Intangible assets,
net
|
|
|
115,822
|
|
|
|
125,042
|
|
|
Other
assets
|
|
|
7,310
|
|
|
|
10,670
|
|
|
Noncurrent assets held
for sale
|
|
|
158,604
|
|
|
|
173,794
|
|
|
Total
assets
|
|
$
|
2,041,210
|
|
|
$
|
2,100,041
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
31,740
|
|
|
$
|
33,344
|
|
|
Deferred
revenue
|
|
|
41,018
|
|
|
|
30,493
|
|
|
Accrued warranty and
retrofit costs
|
|
|
4,973
|
|
|
|
5,213
|
|
|
Accrued compensation
and benefits
|
|
|
28,405
|
|
|
|
27,785
|
|
|
Accrued customer
deposits
|
|
|
26,833
|
|
|
|
22,324
|
|
|
Accrued income taxes
payable
|
|
|
6,931
|
|
|
|
9,266
|
|
|
Accrued expenses and
other current liabilities
|
|
|
38,965
|
|
|
|
46,364
|
|
|
Current liabilities
held for sale
|
|
|
23,602
|
|
|
|
30,050
|
|
|
Total current
liabilities
|
|
|
202,467
|
|
|
|
204,839
|
|
|
Long-term tax
reserves
|
|
|
408
|
|
|
|
398
|
|
|
Long-term deferred tax
liabilities
|
|
|
18,668
|
|
|
|
18,084
|
|
|
Long-term operating
lease liabilities
|
|
|
54,341
|
|
|
|
56,683
|
|
|
Other long-term
liabilities
|
|
|
8,229
|
|
|
|
8,874
|
|
|
Noncurrent liabilities
held for sale
|
|
|
38,131
|
|
|
|
42,196
|
|
|
Total
liabilities
|
|
|
322,244
|
|
|
|
331,074
|
|
|
|
|
|
|
|
|
|
|
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, 59,153,757 shares
issued
and 45,691,888 shares outstanding at December 31, 2024; 59,031,953
shares issued and
45,570,084 shares outstanding at September 30, 2024
|
|
|
592
|
|
|
|
590
|
|
|
Additional paid-in
capital
|
|
|
511,068
|
|
|
|
505,958
|
|
|
Accumulated other
comprehensive loss
|
|
|
(55,237)
|
|
|
|
(13,464)
|
|
|
Treasury stock, at
cost - 13,461,869 shares at December 31, 2024 and September 30,
2024
|
|
|
(200,956)
|
|
|
|
(200,956)
|
|
|
Retained
earnings
|
|
|
1,463,499
|
|
|
|
1,476,839
|
|
|
Total stockholders'
equity
|
|
|
1,718,966
|
|
|
|
1,768,967
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,041,210
|
|
|
$
|
2,100,041
|
|
|
AZENTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(13,340)
|
|
|
$
|
(15,724)
|
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,100
|
|
|
|
21,866
|
|
|
Provision for bad
debts and inventory reserve
|
|
|
1,470
|
|
|
|
(121)
|
|
|
Stock-based
compensation
|
|
|
5,112
|
|
|
|
3,202
|
|
|
Amortization and
accretion on marketable securities
|
|
|
(541)
|
|
|
|
(704)
|
|
|
Deferred income
taxes
|
|
|
457
|
|
|
|
(7,317)
|
|
|
Loss on disposals of
property, plant and equipment
|
|
|
(8)
|
|
|
|
266
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
4,850
|
|
|
|
2,830
|
|
|
Inventories
|
|
|
(4,646)
|
|
|
|
4,929
|
|
|
Accounts
payable
|
|
|
(2,602)
|
|
|
|
2,442
|
|
|
Deferred
revenue
|
|
|
10,462
|
|
|
|
(321)
|
|
|
Accrued warranty and
retrofit costs
|
|
|
174
|
|
|
|
(554)
|
|
|
Accrued compensation
and tax withholdings
|
|
|
650
|
|
|
|
(979)
|
|
|
Accrued restructuring
costs
|
|
|
(566)
|
|
|
|
(90)
|
|
|
Other assets and
liabilities
|
|
|
11,056
|
|
|
|
4,031
|
|
|
Net cash provided by
operating activities
|
|
|
30,628
|
|
|
|
13,756
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(8,580)
|
|
|
|
(11,291)
|
|
|
Purchases of
marketable securities
|
|
|
(40,754)
|
|
|
|
—
|
|
|
Sales and maturities
of marketable securities
|
|
|
125,590
|
|
|
|
110,316
|
|
|
Net cash provided by
investing activities
|
|
|
76,256
|
|
|
|
99,025
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Payments of finance
leases
|
|
|
(215)
|
|
|
|
(198)
|
|
|
Withholding tax
payments on net share settlements on equity awards
|
|
|
—
|
|
|
|
(2)
|
|
|
Share
repurchases
|
|
|
—
|
|
|
|
(112,953)
|
|
|
Excise tax payment for
settled share repurchases
|
|
|
(4,911)
|
|
|
|
—
|
|
|
Net cash used in
financing activities
|
|
|
(5,126)
|
|
|
|
(113,153)
|
|
|
Effects of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
(8,311)
|
|
|
|
24,548
|
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
|
93,447
|
|
|
|
24,176
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
320,990
|
|
|
|
684,045
|
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
|
414,437
|
|
|
$
|
708,221
|
|
|
Supplemental
disclosures:
|
|
|
|
|
|
|
|
Cash (refund) paid for
income taxes, net
|
|
|
(6,148)
|
|
|
|
2,599
|
|
|
Purchases of property,
plant and equipment included in accounts payable and accrued
expenses
|
|
|
3,249
|
|
|
|
2,164
|
|
|
Reconciliation of cash,
cash equivalents and restricted cash to the condensed consolidated
balance sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
2024
|
|
|
2024
|
|
|
Cash and cash
equivalents of continuing operations
|
|
$
|
377,494
|
|
|
$
|
280,030
|
|
|
Cash included in
current assets held for sale
|
|
|
26,544
|
|
|
|
30,899
|
|
|
Short-term restricted
cash
|
|
|
2,080
|
|
|
|
2,069
|
|
|
Long-term restricted
cash included in other assets
|
|
|
8,319
|
|
|
|
7,992
|
|
|
Total cash, cash
equivalents and restricted cash shown in the condensed consolidated
statements of cash flows
|
|
$
|
414,437
|
|
|
$
|
320,990
|
|
Notes on Non-GAAP Financial Measures - Continuing
Operations
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
|
|
|
December 31,
2024
|
|
|
September 30,
2024
|
|
|
December 31,
2023
|
|
|
|
|
|
|
|
per
diluted
|
|
|
|
|
|
|
per
diluted
|
|
|
|
|
|
|
per
diluted
|
|
|
Amounts in
thousands, except per share data
|
|
$
|
|
|
share
|
|
|
$
|
|
|
share
|
|
|
$
|
|
|
share
|
|
|
Net loss from
continuing operations
|
|
$
|
(9,421)
|
|
|
$
|
(0.21)
|
|
|
$
|
(88)
|
|
|
$
|
(0.00)
|
|
|
$
|
(7,192)
|
|
|
$
|
(0.13)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,500
|
|
|
|
0.03
|
|
|
|
2,096
|
|
|
|
0.04
|
|
|
|
1,856
|
|
|
|
0.03
|
|
|
Amortization of other
intangible assets
|
|
|
4,573
|
|
|
|
0.10
|
|
|
|
4,841
|
|
|
|
0.09
|
|
|
|
5,371
|
|
|
|
0.09
|
|
|
Transformation
costs(1)
|
|
|
3,046
|
|
|
|
0.07
|
|
|
|
4,572
|
|
|
|
0.09
|
|
|
|
41
|
|
|
|
0.00
|
|
|
Restructuring and
restructuring related charges
|
|
|
431
|
|
|
|
0.01
|
|
|
|
851
|
|
|
|
0.02
|
|
|
|
786
|
|
|
|
0.01
|
|
|
Merger and acquisition
costs and costs related to share
repurchase(2)
|
|
|
1,570
|
|
|
|
0.03
|
|
|
|
53
|
|
|
|
0.00
|
|
|
|
4,321
|
|
|
|
0.08
|
|
|
Tax
adjustments(3)
|
|
|
408
|
|
|
|
0.01
|
|
|
|
259
|
|
|
|
0.00
|
|
|
|
1,693
|
|
|
|
0.03
|
|
|
Tax effect of
adjustments
|
|
|
1,530
|
|
|
|
0.03
|
|
|
|
(2,036)
|
|
|
|
(0.04)
|
|
|
|
(2,326)
|
|
|
|
(0.04)
|
|
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
3,637
|
|
|
$
|
0.08
|
|
|
$
|
10,548
|
|
|
$
|
0.20
|
|
|
$
|
4,550
|
|
|
$
|
0.08
|
|
|
Stock based
compensation, pre-tax
|
|
|
4,872
|
|
|
|
0.11
|
|
|
|
1,649
|
|
|
|
0.03
|
|
|
|
3,001
|
|
|
|
0.05
|
|
|
Tax
rate
|
|
|
15
|
%
|
|
|
—
|
|
|
|
14
|
%
|
|
|
—
|
|
|
|
12
|
%
|
|
|
—
|
|
|
Stock-based
compensation, net of tax
|
|
|
4,141
|
|
|
|
0.09
|
|
|
|
1,418
|
|
|
|
0.03
|
|
|
|
2,641
|
|
|
|
0.06
|
|
|
Non-GAAP adjusted net
income excluding stock-based compensation - continuing
operations
|
|
$
|
7,778
|
|
|
$
|
0.17
|
|
|
$
|
11,966
|
|
|
$
|
0.23
|
|
|
$
|
7,191
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
|
45,626
|
|
|
|
—
|
|
|
|
53,175
|
|
|
|
—
|
|
|
|
56,709
|
|
|
|
|
(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 and 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.
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
GAAP net
loss
|
|
$
|
(13,340)
|
|
|
$
|
(4,985)
|
|
|
$
|
(15,724)
|
|
|
Less: Loss from
discontinued operations
|
|
|
(3,919)
|
|
|
|
(4,897)
|
|
|
|
(8,532)
|
|
|
GAAP net loss from
continuing operations
|
|
|
(9,421)
|
|
|
|
(88)
|
|
|
|
(7,192)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
|
(4,298)
|
|
|
|
(5,532)
|
|
|
|
(9,955)
|
|
|
Income tax
expense
|
|
|
3,569
|
|
|
|
2,017
|
|
|
|
1,420
|
|
|
Depreciation
|
|
|
7,474
|
|
|
|
7,275
|
|
|
|
7,420
|
|
|
Amortization of
completed technology
|
|
|
1,500
|
|
|
|
2,096
|
|
|
|
1,856
|
|
|
Amortization of other
intangible assets
|
|
|
4,573
|
|
|
|
4,841
|
|
|
|
5,371
|
|
|
Earnings before
interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
3,397
|
|
|
$
|
10,609
|
|
|
$
|
(1,080)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
Earnings before
interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
3,397
|
|
|
$
|
10,609
|
|
|
$
|
(1,080)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
4,872
|
|
|
|
1,649
|
|
|
|
3,001
|
|
|
Restructuring
charges
|
|
|
431
|
|
|
|
851
|
|
|
|
786
|
|
|
Merger and acquisition
costs and costs related to share
repurchase(1)
|
|
|
1,570
|
|
|
|
53
|
|
|
|
4,321
|
|
|
Transformation
costs(2)
|
|
|
3,046
|
|
|
|
4,572
|
|
|
|
41
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization - Continuing
operations
|
|
$
|
13,316
|
|
|
$
|
17,734
|
|
|
$
|
7,069
|
|
|
|
|
(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 and systems
re-design.
|
|
|
Quarter
Ended
|
|
|
Dollars in
thousands
|
|
December 31,
2024
|
|
|
September 30,
2024
|
|
|
December 31,
2023
|
|
|
GAAP gross
profit
|
|
$
|
68,671
|
|
|
|
46.6
|
%
|
|
$
|
69,587
|
|
|
|
46.1
|
%
|
|
$
|
61,743
|
|
|
|
43.6
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,500
|
|
|
|
1.0
|
%
|
|
|
2,096
|
|
|
|
1.4
|
%
|
|
|
1,856
|
|
|
|
1.3
|
%
|
|
Transformation
costs(1)
|
|
|
52
|
|
|
|
0.0
|
%
|
|
|
145
|
|
|
|
0.1
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other
adjustment
|
|
|
6
|
|
|
|
0.0
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
70,229
|
|
|
|
47.6
|
%
|
|
$
|
71,828
|
|
|
|
47.6
|
%
|
|
$
|
63,599
|
|
|
|
44.9
|
%
|
|
|
|
(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 and systems
re-design.
|
|
|
Sample Management
Solutions
|
|
|
Multiomics
|
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
GAAP gross
profit
|
|
$
|
38,114
|
|
|
|
46.9
|
%
|
|
$
|
39,543
|
|
|
|
46.6
|
%
|
|
$
|
33,272
|
|
|
|
42.1
|
%
|
|
$
|
30,557
|
|
|
|
46.1
|
%
|
|
$
|
30,044
|
|
|
|
45.5
|
%
|
|
$
|
28,471
|
|
|
|
45.4
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
639
|
|
|
|
0.8
|
%
|
|
|
1,056
|
|
|
|
1.2
|
%
|
|
|
816
|
|
|
|
1.0
|
%
|
|
|
861
|
|
|
|
1.3
|
%
|
|
|
1,040
|
|
|
|
1.6
|
%
|
|
|
1,039
|
|
|
|
1.7
|
%
|
|
Transformation
costs(1)
|
|
|
52
|
|
|
|
0.1
|
%
|
|
|
145
|
|
|
|
0.2
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other
adjustment
|
|
|
5
|
|
|
|
0.0
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
1
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
38,810
|
|
|
|
47.8
|
%
|
|
$
|
40,744
|
|
|
|
48.0
|
%
|
|
$
|
34,088
|
|
|
|
43.1
|
%
|
|
$
|
31,419
|
|
|
|
47.4
|
%
|
|
$
|
31,084
|
|
|
|
47.1
|
%
|
|
$
|
29,510
|
|
|
|
47.1
|
%
|
|
|
Segment
Total
|
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
GAAP gross
profit
|
|
$
|
68,671
|
|
|
|
46.6
|
%
|
|
$
|
69,587
|
|
|
|
46.1
|
%
|
|
$
|
61,743
|
|
|
|
43.6
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,500
|
|
|
|
1.0
|
%
|
|
|
2,096
|
|
|
|
1.4
|
%
|
|
|
1,855
|
|
|
|
1.3
|
%
|
|
Transformation
costs(1)
|
|
|
52
|
|
|
|
0.0
|
%
|
|
|
145
|
|
|
|
0.1
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other
adjustment
|
|
|
6
|
|
|
|
0.0
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Non-GAAP adjusted gross
profit
|
|
$
|
70,229
|
|
|
|
47.6
|
%
|
|
$
|
71,828
|
|
|
|
47.6
|
%
|
|
$
|
63,598
|
|
|
|
44.9
|
%
|
|
|
|
(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 and systems
re-design.
|
|
|
Sample Management
Solutions
|
|
|
Multiomics
|
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
GAAP operating income
(loss)
|
|
$
|
1,562
|
|
|
$
|
8,865
|
|
|
$
|
(1,483)
|
|
|
$
|
(3,387)
|
|
|
$
|
(1,714)
|
|
|
$
|
(4,302)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
639
|
|
|
|
1,056
|
|
|
|
816
|
|
|
|
861
|
|
|
|
1,040
|
|
|
|
1,039
|
|
|
Amortization of other
intangible assets
|
|
|
13
|
|
|
|
18
|
|
|
|
51
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Transformation
costs(1)
|
|
|
103
|
|
|
|
145
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23
|
|
|
|
—
|
|
|
|
—
|
|
|
Rounding
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
Non-GAAP adjusted
operating income (loss)
|
|
$
|
2,317
|
|
|
$
|
10,084
|
|
|
$
|
(616)
|
|
|
$
|
(2,503)
|
|
|
$
|
(673)
|
|
|
$
|
(3,263)
|
|
|
|
Total
Segments
|
|
|
Corporate
|
|
|
Total
|
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
Dollars in
thousands
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2024
|
|
|
2023
|
|
|
GAAP operating income
(loss)
|
|
$
|
(1,825)
|
|
|
$
|
7,151
|
|
|
$
|
(5,785)
|
|
|
$
|
(9,528)
|
|
|
$
|
(10,148)
|
|
|
$
|
(10,460)
|
|
|
$
|
(11,353)
|
|
|
$
|
(2,997)
|
|
|
$
|
(16,245)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
1,500
|
|
|
|
2,096
|
|
|
|
1,855
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1,500
|
|
|
|
2,096
|
|
|
|
1,856
|
|
|
Amortization of other
intangible assets
|
|
|
13
|
|
|
|
18
|
|
|
|
51
|
|
|
|
4,560
|
|
|
|
4,823
|
|
|
|
5,320
|
|
|
|
4,573
|
|
|
|
4,841
|
|
|
|
5,371
|
|
|
Transformation
costs(1)
|
|
|
103
|
|
|
|
145
|
|
|
|
—
|
|
|
|
2,943
|
|
|
|
4,427
|
|
|
|
41
|
|
|
|
3,046
|
|
|
|
4,572
|
|
|
|
41
|
|
|
Restructuring
charges
|
|
|
23
|
|
|
|
—
|
|
|
|
—
|
|
|
|
408
|
|
|
|
851
|
|
|
|
786
|
|
|
|
431
|
|
|
|
851
|
|
|
|
786
|
|
|
Merger and acquisition
costs and costs related to share
repurchase(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,570
|
|
|
|
53
|
|
|
|
4,321
|
|
|
|
1,570
|
|
|
|
53
|
|
|
|
4,321
|
|
|
Other
adjustment
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
9
|
|
|
|
1
|
|
|
|
(1)
|
|
|
|
9
|
|
|
|
2
|
|
|
|
(1)
|
|
|
Non-GAAP adjusted
operating income (loss)
|
|
$
|
(186)
|
|
|
$
|
9,411
|
|
|
$
|
(3,879)
|
|
|
$
|
(38)
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
(224)
|
|
|
$
|
9,418
|
|
|
$
|
(3,871)
|
|
|
|
|
(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 and systems
re-design.
|
|
|
|
(2)
|
Includes expenses
related to governance-related matters.
|
|
|
Sample Management
Solutions
|
|
|
Multiomics
|
|
|
Azenta
Total
|
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
Dollars in
millions
|
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
Revenue
|
|
$
|
81
|
|
|
$
|
79
|
|
|
|
3
|
%
|
|
$
|
66
|
|
|
$
|
63
|
|
|
|
6
|
%
|
|
$
|
148
|
|
|
$
|
142
|
|
|
|
4
|
%
|
|
Currency exchange
rates
|
|
|
0
|
|
|
|
—
|
|
|
|
(1)
|
%
|
|
|
0
|
|
|
|
—
|
|
|
|
(0)
|
%
|
|
|
0
|
|
|
|
—
|
|
|
|
(0)
|
%
|
|
Organic
revenue
|
|
$
|
81
|
|
|
$
|
79
|
|
|
|
2
|
%
|
|
$
|
66
|
|
|
$
|
63
|
|
|
|
6
|
%
|
|
$
|
147
|
|
|
$
|
142
|
|
|
|
4
|
%
|
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SOURCE Azenta
