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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Azenta Inc | NASDAQ:AZTA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.44 | -0.86% | 50.51 | 49.65 | 65.00 | 51.48 | 50.015 | 51.09 | 635,080 | 01:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
|
| |||
(State or Other Jurisdiction |
| (Commission File |
| (IRS Employer |
(Address of principal executive offices and Zip Code)
(
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 8, 2024, Azenta, Inc. (“Azenta” or the “Company”) announced via press release its financial results for the fiscal quarter ended March 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1.
Limitation on Incorporation by Reference. The information in Item 2.02 and Exhibit 99.1 to this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in this Current Report and the press release attached as an exhibit hereto, this Current Report and the press release contain forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release attached as Exhibit 99.1 hereto regarding these forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
EXHIBIT |
| DESCRIPTION |
99.1 | ||
104 | Cover Page Interactive Data File (embedded within the iXBRL (Inline eXtensible Business Reporting Language) document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AZENTA, INC. | |
/s/ Jason W. Joseph | |
Date: May 8, 2024 | Jason W. Joseph |
Senior Vice President, General Counsel and Secretary |
Exhibit 99.1
Azenta Reports Second Quarter Results for Fiscal 2024, Ended March 31, 2024
BURLINGTON, Mass., May 8, 2024 (PR Newswire) – Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the second quarter ended March 31, 2024.
| | Quarter Ended | |||||||||||||
Dollars in millions, except per share data | | March 31, | | December 31, | | March 31, | | Change | |||||||
| | 2024 | | 2023 | | 2023 | | Prior Qtr | | Prior Yr. | |||||
Revenue from Continuing Operations |
| $ | 159 | | $ | 154 |
| $ | 148 | | 3 | % | | 7 | % |
Organic growth | | | | | | | | | | | | | | 7 | % |
Sample Management Solutions | | $ | 74 | | $ | 79 | | $ | 71 | | (6) | % | | 4 | % |
Multiomics | | $ | 62 | | $ | 63 | | $ | 62 | | (1) | % | | (0) | % |
B Medical Systems | | $ | 23 | | $ | 13 | | $ | 15 | | 81 | % | | 51 | % |
| | | | | | | | | | | | | | | |
Diluted EPS Continuing Operations | | $ | (2.47) | | $ | (0.28) | | $ | (0.03) | | nm | | | nm | |
Diluted EPS Total | | $ | (2.47) | | $ | (0.28) | | $ | (0.07) | | nm | | | nm | |
| | | | | | | | | | | | | | | |
Non-GAAP Diluted EPS Continuing Operations | | $ | 0.05 | | $ | 0.02 | | $ | (0.06) | | 102 | % | | 184 | % |
Adjusted EBITDA - Continuing Operations | | $ | 9 | | $ | 5 | | $ | (2) | | 107 | % | | 493 | % |
Adjusted EBITDA Margin - Continuing Operations | | | 5.9% | | | 3.0% | | | (1.6)% | | | | | | |
Management Comments
“We saw continued momentum in the second quarter with strong organic revenue growth, and improved profitability as a result of our ongoing cost reduction and transformation initiatives,” stated Steve Schwartz, President and CEO. “This marks our fourth consecutive quarter of positive free cash flow. And as noted during our Investor Day in March, we are confident in our position and the market opportunity which we are uniquely positioned to capture.”
Second Quarter Fiscal 2024 Results
● | Sample Management Solutions revenue was $74 million, up 4% year over year. |
● | Multiomics revenue was $62 million, flat year over year. |
● | B Medical Systems revenue was $23 million, up 51% year over year. |
Summary of GAAP Earnings Results
● | Operating loss was $147 million. Operating margin was (92.3%), compared to (8.7%) in the second quarter fiscal year 2023. |
o | Operating expenses were $210 million, up 218% year over year, and included a $111.3 million non-cash goodwill impairment charge related to the B Medical segment and a $4.7 million non-cash intangible asset impairment charge related to the discontinuation of the sample sourcing product offering (a product line within the Sample Management Solutions segment), as well as costs for restructuring and transformation. The year-over-year increase was driven by the goodwill and intangible asset impairments, transformation costs, and higher restructuring costs, partially offset by a prior year one-time non-cash benefit of $17 million related to the reversal of the fair value of B Medical contingent consideration. |
● | Other income included $9.6 million of net interest income versus $10.4 million in the prior year period. |
● | Diluted EPS from continuing operations was ($2.47) compared to ($0.03) in the second quarter of fiscal year 2023. |
Summary of Non-GAAP Earnings Results
● | Operating loss was $6 million. Operating margin was (3.6%), an improvement of 530 basis points year over year. |
o | Gross margin was 44.3%, an improvement of 310 basis points year over year, mainly driven by higher revenue and operating efficiency. |
o | Operating expense in the quarter was $76 million, up 3% year over year, primarily driven by the year-over-year increase in stock-based compensation and higher commissions expense in B Medical which offset the benefit from cost reduction actions. |
o | Adjusted EBITDA was $9 million, and Adjusted EBITDA margin was 5.9%, an improvement of 750 basis points year over year. |
● | Diluted EPS was $0.05, compared to ($0.06) one year ago. |
Cash and Liquidity as of March 31, 2024
2
● | The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $975 million. |
● | Operating cash flow was $8 million in the quarter. Capital expenditures were $7 million, and free cash flow (cash flow from operations less capital expenditures) was $2 million. |
Share Repurchase Program Update
● | In the second quarter, the Company repurchased 1.2 million shares for $73.9 million under a 10b5-1 trading program. |
● | As of March 31, 2024, the Company repurchased 20.9 million shares of common stock for $1.025 billion under the 2022 Repurchase Authorization. In fiscal year 2024, the Company intends to complete the full capacity of the $1.5 billion share repurchase authorization announced in November 2022. |
Guidance for Continuing Operations for Full Year Fiscal 2024
● | The Company is lowering revenue guidance for fiscal year 2024 while raising earnings guidance: |
o | Total revenue is now expected to be in the range of $659 to $671 million due to the timing of B Medical revenue. |
o | Total organic revenue in the range of down 1% to up 1% relative to fiscal year 2023. |
o | Adjusted EBITDA margin expansion is expected to be approximately 300 basis points. |
o | Non-GAAP diluted earnings per share is expected to be in the range of $0.27 to $0.37. |
Conference Call and Webcast
Azenta management will webcast its second quarter fiscal 2024 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay. In addition, Participants may access the call using the following. online registration link. Registrants will receive confirmation containing dial in details and a unique conference call code for entry.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a perspective on the results of business operations, which the Company believes is comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows. Certain amounts in the
3
tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.
“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta’s financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; our ability to successfully invest the cash proceeds from the sale of our Semiconductor Automation business; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.
About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey, and B Medical Systems.
Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com.
AZENTA INVESTOR CONTACTS:
Yvonne Perron
Vice President, Financial Planning & Analysis and Investor Relations
ir@azenta.com
4
Sherry Dinsmore
sherry.dinsmore@azenta.com
5
AZENTA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
| | Three Months Ended | | Six Months Ended | ||||||||
| | March 31, | | March 31, | ||||||||
| | 2024 | | 2023 | | 2024 | | 2023 | ||||
Revenue | | | | | | | | | | | | |
Products | | $ | 59,017 |
| $ | 51,917 | | $ | 112,410 |
| $ | 137,715 |
Services | |
| 100,117 | |
| 96,484 | |
| 201,041 | |
| 189,052 |
Total revenue | |
| 159,134 | |
| 148,401 | |
| 313,451 | |
| 326,767 |
Cost of revenue | | | | | | | | | | | | |
Products | |
| 41,658 | |
| 40,009 | |
| 78,496 | |
| 94,108 |
Services | |
| 54,091 | |
| 55,156 | |
| 110,058 | |
| 105,558 |
Total cost of revenue | |
| 95,749 | |
| 95,165 | |
| 188,554 | |
| 199,666 |
Gross profit | |
| 63,385 | |
| 53,236 | |
| 124,897 | |
| 127,101 |
Operating expenses | | | | | | | | | | | | |
Research and development | |
| 8,707 | |
| 8,520 | |
| 17,200 | |
| 16,056 |
Selling, general and administrative | | | 78,314 | | | 73,339 | | | 156,890 | | | 165,891 |
Impairment of goodwill and intangible assets | | | 115,975 | | | — | | | 115,975 | | | — |
Contingent consideration - fair value adjustments | |
| — | |
| (17,145) | |
| — | |
| (17,145) |
Restructuring charges | |
| 7,344 | |
| 1,499 | |
| 8,464 | |
| 2,961 |
Total operating expenses | |
| 210,340 | |
| 66,213 | |
| 298,529 | |
| 167,763 |
Operating loss | |
| (146,955) | |
| (12,977) | |
| (173,632) | |
| (40,662) |
Other income | |
| | |
| | |
| | |
| |
Interest income, net | |
| 9,565 | |
| 10,394 | |
| 19,646 | |
| 21,059 |
Other income (expense), net | |
| 250 | |
| (2,668) | |
| 932 | |
| (1,523) |
Loss before income taxes | |
| (137,140) | |
| (5,251) | |
| (153,054) | |
| (21,126) |
Income tax benefit | | | (260) | |
| (3,260) | |
| (450) | |
| (7,900) |
Income (loss) from continuing operations | | | (136,880) | | | (1,991) | | | (152,604) | | | (13,226) |
Loss from discontinued operations, net of tax | | | — | | | (2,936) | | | — | | | (2,936) |
Net loss | | $ | (136,880) | | $ | (4,927) | | $ | (152,604) | | $ | (16,162) |
| | | | | | | | | | | | |
Basic net loss per share: | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | (2.47) | | $ | (0.03) | | $ | (2.72) | | $ | (0.19) |
Loss from discontinued operations, net of tax | | | — | | | (0.04) | | | — | | | (0.04) |
Basic net loss per share | | $ | (2.47) | | $ | (0.07) | | $ | (2.72) | | $ | (0.23) |
Diluted net loss per share: | | | | | | | | | | | | |
Income (loss) from continuing operations | | $ | (2.47) | | $ | (0.03) | | $ | (2.72) | | $ | (0.19) |
Loss from discontinued operations, net of tax | | | — | | | (0.04) | | | — | | | (0.04) |
Diluted net loss per share | | $ | (2.47) | | $ | (0.07) | | $ | (2.72) | | $ | (0.23) |
Weighted average shares used in computing net loss per share: | |
| | |
| | |
| | |
| |
Basic | |
| 55,440 | |
| 69,111 | |
| 56,078 | |
| 70,858 |
Diluted | | | 55,440 | | | 69,111 | | | 56,078 | | | 70,858 |
6
AZENTA, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
| | March 31, | | September 30, | ||
| | 2024 | | 2023 | ||
| | | | | | |
Assets | | | | | | |
Current assets | | | | | | |
Cash and cash equivalents | | $ | 353,491 |
| $ | 678,910 |
Short-term marketable securities | |
| 468,220 | |
| 338,873 |
Accounts receivable, net of allowance for expected credit losses ($6,844 and $8,057, respectively) | |
| 154,668 | |
| 156,535 |
Inventories | |
| 122,351 | |
| 128,198 |
Derivative asset | | | 350 | |
| 13,036 |
Short-term restricted cash | |
| 3,089 | |
| 4,650 |
Prepaid expenses and other current assets | | | 87,897 | | | 98,754 |
Total current assets | |
| 1,190,066 | | | 1,418,956 |
Property, plant and equipment, net | |
| 200,905 | | | 205,744 |
Long-term marketable securities | |
| 143,018 | | | 111,338 |
Long-term deferred tax assets | |
| 925 | | | 571 |
Operating lease right-of-use assets | |
| 69,662 | | | 66,580 |
Goodwill | |
| 681,140 | | | 784,339 |
Intangible assets, net | |
| 267,626 | | | 294,301 |
Other assets | |
| 10,155 | | | 3,891 |
Total assets | | $ | 2,563,497 | | $ | 2,885,720 |
Liabilities and stockholders' equity | | | | | | |
Current liabilities | | | | | | |
Accounts payable | | $ | 37,319 | | $ | 35,796 |
Deferred revenue | | | 38,323 | | | 34,614 |
Accrued warranty and retrofit costs | | | 9,745 | | | 10,223 |
Accrued compensation and benefits | |
| 27,985 | | | 33,911 |
Accrued customer deposits | | | 21,772 | | | 17,707 |
Accrued income taxes payable | |
| 10,706 | | | 7,378 |
Short-term operating lease liability | |
| 10,802 | | | 9,499 |
Accrued expenses and other current liabilities | | | 46,347 | | | 61,800 |
Total current liabilities | |
| 202,999 | | | 210,928 |
Long-term tax reserves | | | 377 | | | 380 |
Long-term deferred tax liabilities | |
| 62,267 | | | 67,301 |
Long-term operating lease liabilities | |
| 63,374 | | | 60,436 |
Other long-term liabilities | | | 11,609 | | | 12,175 |
Total liabilities | | | 340,626 | | | 351,220 |
Stockholders' equity | | |
| | | |
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding | | | — | | | — |
Common stock, $0.01 par value - 125,000,000 shares authorized, 68,464,925 shares issued and 54,614,041 shares outstanding at March 31, 2024, 71,294,247 shares issued and 57,832,378 shares outstanding at September 30, 2023 | |
| 681 | | | 713 |
Additional paid-in capital | |
| 999,333 | | | 1,156,160 |
Accumulated other comprehensive loss | |
| (41,728) | | | (62,426) |
Treasury stock, at cost - 13,850,884 shares at March 31, 2024 and 13,461,869 shares at September 30, 2023 | |
| (223,820) | | | (200,956) |
Retained earnings | |
| 1,488,405 | | | 1,641,009 |
Total stockholders' equity | | | 2,222,871 | | | 2,534,500 |
Total liabilities and stockholders' equity | | $ | 2,563,497 | | $ | 2,885,720 |
| | | | | | |
7
AZENTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
| | Six Months Ended March 31, | ||||
| | 2024 | | 2023 | ||
Cash flows from operating activities | | | | | | |
Net loss | | $ | (152,604) |
| $ | (16,162) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |
| | |
| |
Depreciation and amortization | | | 44,214 | | | 42,140 |
Impairment of goodwill and intangible assets | | | 115,975 | | | — |
Non-cash write-offs of assets | | | 6,966 | | | — |
Stock-based compensation | |
| 8,804 | |
| 6,096 |
Contingent consideration adjustment | |
| — | |
| (17,145) |
Amortization and accretion on marketable securities | |
| (2,084) | |
| (5,284) |
Deferred income taxes | |
| (9,456) | |
| (20,843) |
Purchase accounting impact on inventory | |
| — | |
| 5,781 |
Loss on disposals of property, plant and equipment | |
| 260 | |
| 31 |
Changes in operating assets and liabilities: | |
| | |
| |
Accounts receivable | |
| 2,922 | |
| 23,925 |
Inventories | |
| 7,975 | |
| (11,504) |
Accounts payable | |
| 936 | |
| (5,677) |
Deferred revenue | |
| 3,379 | |
| 3,625 |
Accrued warranty and retrofit costs | |
| (714) | |
| 622 |
Accrued compensation and tax withholdings | |
| (6,153) | |
| (21,797) |
Accrued restructuring costs | |
| 1,454 | |
| 820 |
Other assets and liabilities | | | 12,913 | | | (23,798) |
Net cash provided by (used in) operating activities | |
| 34,787 | |
| (39,170) |
Cash flows from investing activities | | |
| | |
|
Purchases of property, plant and equipment | |
| (18,746) | |
| (21,705) |
Purchases of marketable securities | |
| (345,447) | |
| (233,584) |
Sales and maturities of marketable securities | | | 190,504 | | | 728,171 |
Net investment hedge settlement | | | 1,476 | | | 29,313 |
Acquisitions, net of cash acquired | |
| — | |
| (387,665) |
Net cash provided by (used in) investing activities | |
| (172,213) | |
| 114,530 |
Cash flows from financing activities | |
|
| |
|
|
Payments of finance leases | | | (386) | | | (230) |
Withholding tax payments on net share settlements on equity awards | | | — | | | (4,906) |
Share repurchases | | | (186,834) | | | (500,000) |
Net cash used in financing activities | |
| (187,220) | |
| (505,136) |
Effects of exchange rate changes on cash and cash equivalents | |
| 4,721 | |
| 60,355 |
Net decrease in cash, cash equivalents and restricted cash | |
| (319,925) | |
| (369,421) |
Cash, cash equivalents and restricted cash, beginning of period | |
| 684,045 | |
| 1,041,296 |
Cash, cash equivalents and restricted cash, end of period | | $ | 364,120 | | $ | 671,875 |
Supplemental disclosures: | |
| | |
| |
Cash paid for income taxes, net | |
| 5,008 | |
| 35,286 |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | | | | | | |
| | | March 31, | | | September 30, |
| | | 2024 | | | 2023 |
Cash and cash equivalents of continuing operations | | $ | 353,491 | | $ | 678,910 |
Short-term restricted cash | | | 3,089 | | | 4,650 |
Long-term restricted cash included in other assets | | | 7,540 | | | 485 |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | | $ | 364,120 | | $ | 684,045 |
8
Notes on Non-GAAP Financial Measures
Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company’s business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.
| | Quarter Ended | ||||||||||||||||
| | March 31, 2024 | | December 31, 2023 | | March 31, 2023 | ||||||||||||
| | | | per diluted | | | | per diluted | | | | per diluted | ||||||
Amounts in thousands, except per share data | | $ | | share | | $ | | share | | $ | | share | ||||||
Net income (loss) from continuing operations |
| $ | (136,880) |
| $ | (2.47) |
| $ | (15,724) |
| $ | (0.28) |
| $ | (1,991) |
| $ | (0.03) |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | | | 6,373 | | | 0.11 | | | 5,627 | | | 0.10 | | | 4,901 | | | 0.07 |
Purchase accounting impact on inventory | |
| — | |
| — | |
| — | |
| — | |
| 2,912 | |
| 0.04 |
Amortization of other intangible assets | |
| 6,654 | |
| 0.12 | |
| 6,862 | |
| 0.12 | |
| 7,509 | |
| 0.11 |
Transformation costs (1) | | | 4,446 | | | 0.08 | | | 41 | | | 0.00 | | | 10 | | | 0.00 |
Restructuring and restructuring related charges | |
| 7,344 | |
| 0.13 | |
| 1,120 | |
| 0.02 | |
| 1,499 | |
| 0.02 |
Impairment of goodwill and intangible assets | | | 115,975 | | | 2.09 | | | — | | | — | | | — | | | — |
Contingent consideration - fair value adjustments | | | — | | | — | | | — | | | — | | | (17,145) | | | (0.25) |
Merger and acquisition costs and costs related to share repurchase (2) | |
| 426 | |
| 0.01 | |
| 4,321 | |
| 0.08 | |
| 19 | |
| 0.00 |
Tax adjustments (3) | | | 1,659 | | | 0.03 | | | 1,858 | | | 0.03 | | | 56 | | | 0.00 |
Tax effect of adjustments | | | (3,200) | |
| (0.06) | |
| (2,688) | |
| (0.05) | | | (1,934) | | | (0.03) |
Non-GAAP adjusted net income from continuing operations | | $ | 2,797 | | $ | 0.05 | | $ | 1,417 | | $ | 0.02 | | $ | (4,164) | | $ | (0.06) |
Stock based compensation, pre-tax | |
| 5,602 | |
| 0.10 | |
| 3,202 | |
| 0.06 | |
| 3,991 | |
| 0.06 |
Tax rate | |
| 15 | % |
| — | |
| 12 | % |
| — | |
| 15 | % |
| — |
Stock-based compensation, net of tax | |
| 4,762 | |
| 0.09 | |
| 2,818 | |
| 0.05 | |
| 3,392 | |
| 0.05 |
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations | | $ | 7,559 | | $ | 0.14 | | $ | 4,235 | | $ | 0.07 | | $ | (772) | | $ | (0.01) |
| | | | | | | | | | | | | | | | | | |
Shares used in computing non-GAAP diluted net income per share | |
| — | |
| 55,440 | |
| — | |
| 56,709 | |
| — | |
| 69,111 |
9
| | Six Months Ended |
| ||||||||||
| | March 31, 2024 | | March 31, 2023 |
| ||||||||
| | | | per diluted | | | | per diluted | | ||||
Amounts in thousands, except per share data | | $ | | share | | $ | | share |
| ||||
Net loss from continuing operations |
| $ | (152,604) |
| $ | (2.72) |
| $ | (13,226) |
| $ | (0.19) | |
Adjustments: | | | | | | | | | | | | | |
Amortization of completed technology | | | 12,000 | | | 0.21 | | | 9,070 | | | 0.13 | |
Purchase accounting impact on inventory | |
| — | |
| — | |
| 5,781 | | | 0.08 | |
Amortization of other intangible assets | |
| 13,516 | |
| 0.24 | |
| 14,882 | | | 0.21 | |
Transformation costs(1) | | | 4,487 | | | 0.08 | | | (55) | | | (0.00) | |
Restructuring and restructuring related charges | |
| 8,464 | | | 0.15 | | | 2,961 | | | 0.04 | |
Impairment of goodwill and intangible assets | |
| 115,975 | | | 2.07 | | | — | | | — | |
Contingent consideration - fair value adjustments | | | — | | | — | | | (17,145) | | | (0.24) | |
Merger and acquisition costs and costs related to share repurchase (2) | |
| 4,747 | |
| 0.08 | |
| 11,857 | | | 0.17 | |
Indemnification asset release | | | — | | | — | | | (19) | | | (0.00) | |
Tax adjustments (3) | | | 3,517 | | | 0.06 | | | (1,380) | | | (0.02) | |
Tax effect of adjustments | | | (5,888) | | | (0.10) | | | (7,934) | | | (0.11) | |
Non-GAAP adjusted net income from continuing operations | | $ | 4,214 | | $ | 0.08 | | $ | 4,790 | | $ | 0.07 | |
Stock-based compensation, pre-tax | |
| 8,804 | |
| 0.16 | |
| 6,217 | | | 0.09 | |
Tax rate | |
| 15 | % |
| — | |
| 15 | % | | — | |
Stock-based compensation, net of tax | |
| 7,483 | | $ | 0.13 | |
| 5,284 | | | 0.07 | |
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations | | $ | 11,697 | | $ | 0.21 | | $ | 10,074 | | $ | 0.14 | |
| | | | | | | | | | | | | |
Shares used in computing non-GAAP diluted net income per share | |
| — | |
| 56,078 | |
| — | | | 70,858 | |
(1) | Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan, and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process & systems re-design. |
(2) | Includes expenses related to governance-related matters. |
| | Quarter Ended | | Six Months Ended | |||||||||||
| | March 31, | | December 31, | | March 31, | | March 31, | | March 31, | |||||
Dollars in thousands | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | |||||
GAAP net income (loss) | | $ | (136,880) |
| $ | (15,724) |
| $ | (4,927) |
| $ | (152,604) |
| $ | (16,162) |
Less: Income (loss) from discontinued operations | | | — | | | — | | | (2,936) | | | — | | | (2,936) |
GAAP net income (loss) from continuing operations | | | (136,880) | | | (15,724) | | | (1,991) | | | (152,604) | | | (13,226) |
Adjustments: | | | | | | | | | | | | | | | |
Less: Interest income, net | |
| (9,565) | |
| (10,081) | |
| (10,394) | |
| (19,646) | |
| (21,059) |
Add / Less: Income tax (benefit) expense | |
| (260) | |
| (190) | |
| (3,260) | |
| (450) | |
| (7,900) |
Add: Depreciation | |
| 9,321 | |
| 9,377 | |
| 9,549 | |
| 18,698 | |
| 18,189 |
Add: Amortization of completed technology | |
| 6,373 | |
| 5,627 | |
| 4,901 | |
| 12,000 | |
| 9,070 |
Add: Amortization of other intangible assets | |
| 6,654 | |
| 6,862 | |
| 7,509 | |
| 13,516 | |
| 14,882 |
Earnings before interest, taxes, depreciation and amortization - Continuing operations | | $ | (124,357) | | $ | (4,129) | | $ | 6,315 | | $ | (128,486) | | $ | (44) |
10
| | Quarter Ended | | Six Months Ended | |||||||||||
| | March 31, | | December 31, | | March 31, | | March 31, | | March 31, | |||||
Dollars in thousands | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | |||||
Earnings before interest, taxes, depreciation and amortization - Continuing operations | | $ | (124,357) |
| $ | (4,129) |
| $ | 6,315 |
| $ | (128,486) |
| $ | (44) |
Adjustments: | | | | | | | | | | | | | | | |
Add: Stock-based compensation | |
| 5,602 | |
| 3,202 | |
| 3,991 | |
| 8,804 | |
| 6,217 |
Add: Purchase accounting impact on inventory | |
| — | |
| — | |
| 2,912 | |
| — | |
| 5,781 |
Add: Restructuring and restructuring related charges | |
| 7,344 | |
| 1,120 | |
| 1,499 | |
| 8,464 | |
| 2,960 |
Add: Merger and acquisition costs and costs related to share repurchase(1) | |
| 426 | |
| 4,321 | |
| 19 | |
| 4,747 | |
| 11,857 |
Add: Impairment of goodwill and intangible assets | | | 115,975 | | | — | | | — | | | 115,975 | | | — |
Less: Contingent consideration - fair value adjustments | | | — | | | — | | | (17,145) | | | — | | | (17,145) |
Less: Transformation costs(2) | | | 4,446 | | | 41 | | | 10 | | | 4,487 | | | (55) |
Less: Indemnification asset release | | | — | | | — | | | — | | | — | | | (19) |
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations | | $ | 9,436 | | $ | 4,555 | | $ | (2,400) | | $ | 13,991 | | $ | 9,552 |
(1) | Includes expenses related to governance-related matters. |
(2) | Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan, and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process & systems re-design. |
| | Quarter Ended | | |||||||||||||||
Dollars in thousands | | March 31, 2024 | | | December 31, 2023 | | | March 31, 2023 | | |||||||||
GAAP gross profit |
| $ | 63,385 |
| 39.8 | % |
| $ | 61,512 |
| 39.9 | % |
| $ | 53,236 |
| 35.9 | % |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 6,373 |
| 4.0 | | |
| 5,627 |
| 3.6 | | |
| 4,901 |
| 3.3 | |
Purchase accounting impact on inventory | |
| — |
| — | | |
| — |
| — | | |
| 2,912 |
| 2.0 | |
Transformation costs(1) | | | 710 | | 0.4 | | | | — | | — | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 70,468 |
| 44.3 | % | | $ | 67,139 |
| 43.5 | % | | $ | 61,049 |
| 41.1 | % |
| | | | | | | | | | | | | | | | | | |
| | Six Months Ended | | |||||||||
Dollars in thousands | | March 31, 2024 | | | March 31, 2023 | | ||||||
GAAP gross profit |
| $ | 124,897 |
| 39.8 | % |
| $ | 127,101 |
| 38.9 | % |
Adjustments: | | | | | | | | | | | | |
Amortization of completed technology | | | 12,000 |
| 3.8 | | |
| 9,070 |
| 2.8 | |
Purchase accounting impact on inventory | | | — |
| — | | |
| 5,781 |
| 1.8 | |
Transformation costs(1) | | | 710 | | 0.2 | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 137,607 |
| 43.9 | % | | $ | 141,951 |
| 43.4 | % |
(1) | Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan, and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process & systems re-design. |
11
| | Sample Management Solutions |
| Multiomics | ||||||||||||||||||||||||||||||||
| | Quarter Ended |
| Quarter Ended | ||||||||||||||||||||||||||||||||
| | March 31, | | | December 31, | | | March 31, | | | March 31, | | | December 31, | | | March 31, | | ||||||||||||||||||
Dollars in thousands | | 2024 | |
| 2023 | |
| 2023 | |
| 2024 | |
| 2023 | |
| 2023 | | ||||||||||||||||||
GAAP gross profit | | $ | 32,943 |
| 44.4 | % | | $ | 33,272 |
| 42.1 | % | | $ | 27,544 |
| 38.8 | % | | $ | 27,721 | | 44.6 | % | | $ | 28,471 | | 45.4 | % | | $ | 27,003 |
| 43.4 | % |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 1,027 | | 1.4 | | |
| 816 | | 1.0 | | |
| 933 | | 1.3 | | |
| 1,040 | | 1.7 | | |
| 1,039 | | 1.7 | | |
| 1,226 | | 2.0 | |
Transformation costs(1) | | | 359 | | 0.5 | | | | — | | — | | | | — | | — | | | | — | | — | | | | — | | — | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 34,329 | | 46.3 | % | | $ | 34,088 | | 43.1 | % | | $ | 28,477 | | 40.1 | % | | $ | 28,761 | | 46.2 | % | | $ | 29,510 | | 47.1 | % | | $ | 28,229 | | 45.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | B Medical Systems | | Segment Total | ||||||||||||||||||||||||||||||||
| | Quarter Ended | | Quarter Ended | ||||||||||||||||||||||||||||||||
| | March 31, | | | December 31, | | | March 31, | | | March 31, | | December 31, | | March 31, | |||||||||||||||||||||
Dollars in thousands | | 2024 | |
| 2023 | |
| 2023 | | | 2024 | | 2023 | | 2023 | |||||||||||||||||||||
GAAP gross profit | | $ | 2,721 |
| 11.9 | % | | $ | (231) |
| (1.8) | % | | $ | (1,311) |
| (8.7) | % | | $ | 63,385 | | 39.8 | % | | $ | 61,512 | | 39.9 | % | | $ | 53,236 | | 35.9 | % |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 4,306 | | 18.9 | | |
| 3,772 | | 30.0 | | |
| 2,742 | | 18.1 | | |
| 6,373 | | 4.0 | | |
| 5,627 | | 3.6 | | |
| 4,901 | | 3.3 | |
Purchase accounting impact on inventory | |
| — | | — | | |
| — | | — | | |
| 2,912 | | 19.3 | | |
| — | | — | | |
| — | | — | | |
| 2,912 | | 2.0 | |
Transformation costs(1) | | | 351 | | 1.5 | | | | — | | — | | | | — | | — | | | | 710 | | 0.4 | | | | — | | — | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 7,378 | | 32.4 | % | | $ | 3,541 | | 28.1 | % | | $ | 4,343 | | 28.7 | % | | $ | 70,468 | | 44.3 | % | | $ | 67,139 | | 43.5 | % | | $ | 61,049 | | 41.1 | % |
| | Sample Management Solutions | | Multiomics | ||||||||||||||||||||
| | Six Months Ended | | Six Months Ended | ||||||||||||||||||||
Dollars in thousands | | March 31, 2024 | | March 31, 2023 | | March 31, 2024 | | March 31, 2023 | ||||||||||||||||
GAAP gross profit | | $ | 66,215 |
| 43.2 | % | | $ | 59,579 |
| 40.7 | % | | $ | 56,192 |
| 45.0 | % | | $ | 54,719 |
| 44.4 | % |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 1,843 | | 1.2 | | |
| 1,362 | | 0.9 | | |
| 2,079 | | 1.7 | | |
| 2,441 | | 2.0 | |
Transformation costs(1) | | | 359 | | 0.2 | | | | — | | — | | | | — | | — | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 68,417 | | 44.7 | % | | $ | 60,942 | | 41.6 | % | | $ | 58,271 | | 46.6 | % | | $ | 57,160 | | 46.3 | % |
| | B Medical Systems | | Segment Total | ||||||||||||||||||||
| | Six Months Ended | | Six Months Ended | ||||||||||||||||||||
Dollars in thousands | | March 31, 2024 | | March 31, 2023 | | March 31, 2024 | | March 31, 2023 | ||||||||||||||||
GAAP gross profit | | $ | 2,490 |
| 7.0 | % | | $ | 12,803 |
| 22.5 | % | | $ | 124,897 |
| 39.8 | % | | $ | 127,101 |
| 38.9 | % |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 8,078 | | 22.8 | | |
| 5,265 | | 9.2 | | |
| 12,000 | | 3.8 | | |
| 9,070 | | 2.8 | |
Purchase accounting impact on inventory and contracts acquired | |
| — | | — | | |
| 5,781 | | 10.2 | | |
| — | | — | | |
| 5,781 | | 1.8 | |
Transformation costs(1) | | | 351 | | 1.0 | | | | — | | — | | | | 710 | | 0.2 | | | | — | | — | |
Non-GAAP adjusted gross profit | | $ | 10,919 | | 30.9 | % | | $ | 23,849 | | 41.9 | % | | $ | 137,607 | | 43.9 | % | | $ | 141,951 | | 43.4 | % |
(1) | Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan, and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process & systems re-design. |
12
| | Sample Management Solutions | | Multiomics | | B Medical Systems | |||||||||||||||||||||
| | Quarter Ended | | Quarter Ended | | Quarter Ended | |||||||||||||||||||||
| | March 31, | | December 31, | | March 31, | | March 31, |
| December 31, | | March 31, | | March 31, |
| December 31, | | March 31, | |||||||||
Dollars in thousands | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | | 2023 | |||||||||
GAAP operating (loss) profit |
| $ | (3,005) |
| $ | (1,723) |
| $ | (7,221) | | $ | (4,006) |
| $ | (4,489) |
| $ | (5,037) | | $ | (5,810) |
| $ | (8,181) |
| $ | (9,021) |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 1,027 | |
| 816 | |
| 933 | |
| 1,040 | |
| 1,039 | |
| 1,226 | |
| 4,306 | |
| 3,772 | |
| 2,742 |
Purchase accounting impact on inventory | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 2,912 |
Amortization of other intangible assets | | | 52 | | | 51 | | | 212 | | | — | | | — | | | — | | | — | | | — | | | — |
Transformation costs(1) | | | 359 | | | — | | | — | | | — | | | — | | | — | | | 351 | | | — | | | — |
Other adjustment | | | — | | | — | | | — | | | — | | | (1) | | | — | | | — | | | — | | | — |
Non-GAAP adjusted operating (loss) profit | | $ | (1,567) | | $ | (856) | | $ | (6,076) | | $ | (2,966) | | $ | (3,451) | | $ | (3,810) | | $ | (1,153) | | $ | (4,409) | | $ | (3,367) |
| | Total Segments | | Corporate | | Total | |||||||||||||||||||||
| | Quarter Ended | | Quarter Ended | | Quarter Ended | |||||||||||||||||||||
| | March 31, | | December 31, | | March 31, | | March 31, | | December 31, | | March 31, | | March 31, | | December 31, | | March 31, | |||||||||
Dollars in thousands | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | | 2023 | | 2024 | | 2023 | | 2023 | |||||||||
GAAP operating (loss) profit |
| $ | (12,821) |
| $ | (14,393) |
| $ | (21,279) |
| $ | (134,134) |
| $ | (12,284) |
| $ | 8,302 |
| $ | (146,955) |
| $ | (26,677) |
| $ | (12,977) |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | | | 6,373 | | | 5,627 | | | 4,901 | | | — | | | — | | | — | | | 6,373 | | | 5,627 | | | 4,901 |
Purchase accounting impact on inventory | | | — | | | — | | | 2,912 | | | — | | | — | | | — | | | — | | | — | | | 2,912 |
Amortization of other intangible assets | | | 52 | | | 51 | | | 212 | | | 6,602 | | | 6,811 | | | 7,297 | | | 6,654 | | | 6,862 | | | 7,509 |
Transformation costs(1) | | | 710 | | | — | | | — | | | 3,736 | | | 41 | | | 10 | | | 4,446 | | | 41 | | | 10 |
Restructuring charges | | | — | | | — | | | — | | | 7,344 | | | 1,120 | | | 1,499 | | | 7,344 | | | 1,120 | | | 1,499 |
Impairment of goodwill and intangible assets | | | — | | | — | | | — | | | 115,975 | | | — | | | — | | | 115,975 | | | — | | | — |
Contingent consideration adjustment | | | — | | | — | | | — | | | — | | | — | | | (17,145) | | | — | | | — | | | (17,145) |
Merger and acquisition costs and costs related to share repurchase (2) | | | — | | | — | | | — | | | 426 | | | 4,321 | | | 19 | | | 426 | | | 4,321 | | | 19 |
Other adjustment | | | — | | | (1) | | | — | | | — | | | — | | | — | | | — | | | (1) | | | — |
Non-GAAP adjusted operating (loss) profit | | $ | (5,686) | | $ | (8,716) | | $ | (13,254) | | $ | (51) | | $ | 9 | | $ | (18) | | $ | (5,737) | | $ | (8,707) | | $ | (13,272) |
| | Sample Management Solutions | | Multiomics | | B Medical Systems | ||||||||||||
| | Six Months Ended | | Six Months Ended | | Six Months Ended | ||||||||||||
Dollars in thousands | | March 31, |
| March 31, |
| March 31, |
| March 31, | | March 31, |
| March 31, | ||||||
| | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 | ||||||
GAAP operating (loss) profit | | $ | (4,728) | | $ | (10,697) | | $ | (8,495) | | $ | (9,518) | | $ | (13,991) | | $ | (9,475) |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | |
| 1,843 | |
| 1,362 | |
| 2,079 | |
| 2,441 | |
| 8,078 | |
| 5,265 |
Purchase accounting impact on inventory | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 5,781 |
Amortization of other intangibles | | | 103 | | | 260 | | | — | | | — | | | — | | | 1,365 |
Transformation costs(1) | | | 359 | | | — | | | — | | | — | | | 351 | | | — |
Other adjustment | | | — | | | — | | | (1) | | | — | | | — | | | — |
Non-GAAP adjusted operating (loss) profit | | $ | (2,423) | | $ | (9,074) | | $ | (6,417) | | $ | (7,075) | | $ | (5,562) | | $ | 2,936 |
13
| | Total Segments | | Corporate | | Total | ||||||||||||
| | Six Months Ended | | Six Months Ended | | Six Months Ended | ||||||||||||
Dollars in thousands | | March 31, |
| March 31, |
| March 31, |
| March 31, |
| March 31, |
| March 31, | ||||||
| | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 | ||||||
GAAP operating (loss) profit | | $ | (27,214) | | $ | (29,690) | | $ | (146,418) | | $ | (10,973) | | $ | (173,632) | | $ | (40,662) |
Adjustments: | | | | | | | | | | | | | | | | | | |
Amortization of completed technology | | | 12,000 | | | 9,070 | | | — | | | — | | | 12,000 | | | 9,070 |
Purchase accounting impact on inventory | | | — | | | 5,781 | | | — | | | — | | | — | | | 5,781 |
Amortization of other intangibles | | | 103 | | | 1,624 | | | 13,413 | | | 13,257 | | | 13,516 | | | 14,882 |
Transformation costs(1) | | | 710 | | | — | | | 3,777 | | | (55) | | | 4,487 | | | (55) |
Restructuring and restructuring related charges | | | — | | | — | | | 8,464 | | | 2,960 | | | 8,464 | | | 2,961 |
Impairment of goodwill and intangible assets | | | — | | | — | | | 115,975 | | | — | | | 115,975 | | | — |
Contingent consideration - fair value adjustments | | | — | | | — | | | — | | | (17,145) | | | — | | | (17,145) |
Merger and acquisition costs and costs related to share repurchase (2) | | | — | | | — | | | 4,747 | | | 11,857 | | | 4,747 | | | 11,857 |
Other adjustment | | | (1) | | | — | | | — | | | — | | | (1) | | | — |
Non-GAAP adjusted operating (loss) profit | | $ | (14,402) | | $ | (13,213) | | $ | (42) | | $ | (99) | | $ | (14,444) | | $ | (13,312) |
(1) | Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan, and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process & systems re-design. |
(2) | Includes expenses related to governance-related matters. |
| | Sample Management Solutions | Multiomics | | B Medical Systems | | Azenta Total | ||||||||||||||||||||||||||||
| | Quarter Ended | Quarter Ended | | Quarter Ended | | Quarter Ended | ||||||||||||||||||||||||||||
| | March 31, | | March 31, | | | | March 31, | | March 31, | | | | | March 31, | | March 31, | | | | | March 31, | | March 31, | | | | ||||||||
Dollars in millions | | 2024 | | 2023 | | Change | 2024 | | 2023 | | Change |
| 2024 | | 2023 | | Change |
| 2024 | | 2023 | | Change | ||||||||||||
Revenue | | $ | 74 | | $ | 71 | | 4 | % | $ | 62 | | $ | 62 | | (0) | % | | $ | 23 | | $ | 15 | | 51 | % | | $ | 159 | | $ | 148 | | 7 | % |
Acquisitions/divestitures | |
| — | |
| — | | — | % |
| — | |
| — | | — | % | |
| — | |
| — | | — | % | |
| — | |
| — | | — | % |
Currency exchange rates | |
| 1 | |
| — | | (1) | % |
| (1) | |
| — | | 1 | % | |
| 0 | |
| — | | (2) | % | |
| 0 | |
| — | | (0) | % |
Organic revenue | | $ | 73 | | $ | 71 | | 3 | % | $ | 63 | | $ | 62 | | 1 | % | | $ | 23 | | $ | 15 | | 49 | % | | $ | 159 | | $ | 148 | | 7 | % |
| | Sample Management Solutions | Multiomics | | B Medical Systems | | Azenta Total | ||||||||||||||||||||||||||||
| | Six Months Ended | Six Months Ended | | Six Months Ended | | Six Months Ended | ||||||||||||||||||||||||||||
| | March 31, | | March 31, | | | | March 31, | | March 31, | | | | | March 31, | | March 31, | | | | | March 31, | | March 31, | | | | ||||||||
Dollars in millions | | 2024 | | 2023 | | Change | 2024 | | 2023 | | Change |
| 2024 | | 2023 | | Change |
| 2024 | | 2023 | | Change | ||||||||||||
Revenue | | $ | 153 | | $ | 146 | | 5 | % | $ | 125 | | $ | 123 | | 1 | % | | $ | 35 | | $ | 57 | | (38) | % | | $ | 313 | | $ | 327 | | (4) | % |
Acquisitions/divestitures | |
| 1 | |
| — | | (1) | % |
| (0) | |
| — | | 0 | % | |
| — | |
| — | | — | % | |
| 1 | |
| — | | (0) | % |
Currency exchange rates | |
| 2 | |
| — | | (1) | % |
| — | |
| — | | — | % | |
| 1 | |
| — | | (2) | % | |
| 2 | |
| — | | (1) | % |
Organic revenue | | $ | 150 | | $ | 146 | | 2 | % | $ | 125 | | $ | 123 | | 2 | % | | $ | 34 | | $ | 57 | | (39) | % | | $ | 310 | | $ | 327 | | (5) | % |
14
Document and Entity Information |
May 08, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 08, 2024 |
Entity Registrant Name | Azenta, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 0-25434 |
Entity Tax Identification Number | 04-3040660 |
Entity Address, Address Line One | 200 Summit Drive |
Entity Address, City or Town | Burlington |
Entity Address State Or Province | MA |
Entity Address, Postal Zip Code | 01803 |
City Area Code | 978 |
Local Phone Number | 262-2400 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | AZTA |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000933974 |
Amendment Flag | false |
1 Year Azenta Chart |
1 Month Azenta Chart |
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