UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 7, 2024
Azenta, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
|
0-25434 |
|
04-3040660 |
(State or Other Jurisdiction |
|
(Commission File |
|
(IRS Employer |
200 Summit Drive, Burlington, MA 01803
(Address of principal executive offices and Zip Code)
(978) 262-2400
(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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $0.01 par value |
|
AZTA |
|
The Nasdaq Stock Market LLC |
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 February 7, 2024, Azenta, Inc. (“Azenta” or the “Company”) announced via press release its financial results for the fiscal quarter ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
Limitation on Incorporation by Reference. The information in this Item 2.02 and in Item 9.01 of this Current Report, including the exhibits attached hereto, 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 the press release attached as an exhibit hereto, the press release contains 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 regarding these forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
EXHIBIT |
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DESCRIPTION |
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99.1 |
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Earnings press release issued on February 7, 2024 by Azenta, Inc. |
|
|
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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: February 7, 2024 |
Jason W. Joseph |
Senior Vice President, General Counsel and Secretary |
Exhibit 99.1
Azenta Reports First Quarter Results for Fiscal 2024, Ended December 31, 2023
BURLINGTON, Mass., February 7, 2024 (PR Newswire) – Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the first quarter ended December 31, 2023.
|
|
Quarter Ended |
|||||||||||||
Dollars in millions, except per share data |
|
December 31, |
|
September 30, |
|
December 31, |
|
Change |
|||||||
|
|
2023 |
|
2023 |
|
2022 |
|
Prior Qtr |
|
Prior Yr. |
|||||
Revenue from Continuing Operations |
|
$ |
154 |
|
$ |
172 |
|
$ |
178 |
|
(10) |
% |
|
(13) |
% |
Organic growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
(15) |
% |
Sample Management Solutions |
|
$ |
79 |
|
$ |
82 |
|
$ |
75 |
|
(3) |
% |
|
5 |
% |
Multiomics |
|
$ |
63 |
|
$ |
61 |
|
$ |
61 |
|
3 |
% |
|
3 |
% |
B Medical Systems |
|
$ |
13 |
|
$ |
29 |
|
$ |
42 |
|
(57) |
% |
|
(70) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS Continuing Operations |
|
$ |
(0.28) |
|
$ |
0.05 |
|
$ |
(0.15) |
|
(690) |
% |
|
(79) |
% |
Diluted EPS Total |
|
$ |
(0.28) |
|
$ |
0.06 |
|
$ |
(0.15) |
|
(591) |
% |
|
(79) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted EPS Continuing Operations |
|
$ |
0.02 |
|
$ |
0.13 |
|
$ |
0.12 |
|
(80) |
% |
|
(80) |
% |
Adjusted EBITDA - Continuing Operations |
|
$ |
5 |
|
$ |
8 |
|
$ |
12 |
|
(43) |
% |
|
(62) |
% |
Adjusted EBITDA Margin - Continuing Operations |
|
|
3.0% |
|
|
4.6% |
|
|
6.7% |
|
|
|
|
|
|
Management Comments
“First quarter results came in ahead of expectations as we continued to deliver against our objectives on the top and bottom line,” stated Steve Schwartz, President and CEO. “We have made good progress on our cost reduction initiatives and are seeing the benefits of these actions. This quarter marked our third consecutive quarter of positive free cash flow. Even in a softer market environment, we remain positive about our position as we move through fiscal 2024, and we believe that the actions we have taken over the past several months will allow us to continue to outgrow the market.”
First Quarter Fiscal 2024 Results
● | Revenue was $154 million, down 13% year over year. Organic revenue declined 15% year over year, which excludes the impacts of foreign exchange tailwinds of 1% and a 1% contribution from acquisitions. The year-over-year revenue decline was mainly attributable to lower B Medical Systems (“B Medical”) revenue. The combined Sample Management Solutions and Multiomics business segments grew 2% on an organic basis. In addition, the Consumables and Instruments (“C&I”) business remained a headwind to growth in the first quarter on a year-over-year basis. Excluding B Medical and C&I, revenue grew 5% on an organic basis. |
● | Sample Management Solutions revenue was $79 million, up 5% year over year. |
o | Organic revenue, which excludes the impacts from foreign exchange and revenue from |
acquisitions, grew 1%, driven by continued strength in large-automated Store Systems and Sample Repository Solutions, partially offset by a year-over-year decline in the C&I business. Excluding the C&I business, the segment grew 9% on an organic basis. |
● | Multiomics revenue was $63 million, up 3% year over year. |
● | B Medical Systems revenue was $13 million, down 70% year over year. |
Summary of GAAP Earnings Results
● | Operating loss was $27 million. Operating margin was (17.3%), down 180 basis points year over year. |
● | Other income included $10 million of net interest income versus $11 million in the prior year period. |
● | Diluted EPS from continuing operations was ($0.28) compared to ($0.15) in the first quarter of fiscal year 2023. |
Summary of Non-GAAP Earnings Results
● | Operating loss was $9 million. Operating margin was (5.6%), down 560 basis points year over year. Excluding B Medical, operating margin was (3.0%), up 160 basis points year over year. |
o | Gross margin was 43.5%, down 190 basis points year over year, primarily due to product mix in B Medical. |
o | Operating expense in the quarter was $76 million, down 6% year over year, primarily driven by the impact of cost reduction actions implemented in fiscal year 2023, lower bad debt expense, and lower commissions expense in B Medical. |
o | Adjusted EBITDA was $5 million, and Adjusted EBITDA margin was 3.0%, down 370 basis points year over year. |
● | Diluted EPS was $0.02, compared to $0.12 one year ago. |
Cash and Liquidity as of December 31, 2023
● | The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $1.1 billion. |
● | Operating cash flow was $26 million in the quarter. Capital expenditures were $12 million, and free cash flow was $15 million. |
2
Share Repurchase Program Update
● | In the first quarter, the Company repurchased 2.3 million shares for $113 million under a 10b5-1 trading program. |
● | In fiscal year 2024, the Company intends to repurchase an additional $500 million in shares, which will 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 reiterating revenue and earnings guidance for fiscal year 2024: |
o | Total revenue is expected to be in the range of $696 to $718 million, reflecting total organic revenue growth in the range of 5% to 8% 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 $0.19 to $0.29. |
2024 Investor Day
● | As previously announced, the Company will host an Investor Day on Thursday, March 14, 2024 in New York City. The event will feature presentations from members of the executive leadership team outlining the Company’s strategy and vision. A live webcast of the event will be available on the Investor Relations section of Azenta's website at https://investors.azenta.com/events beginning at 9:00 AM ET and concluding at approximately 12:00 PM ET. A replay of the audio webcast will be available on the website after the conclusion of the event. |
Conference Call and Webcast
Azenta management will webcast its first 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, you may call 800- 926-5171 (US & Canada only) or +1-212-231-2906 for international callers to listen to the live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.
3
“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta’s financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: our ability to reduce costs effectively; the 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:
Sara Silverman
Head of Investor Relations & Corporate Communications (In thousands, except per share data)
ir@azenta.com
Sherry Dinsmore
sherry.dinsmore@azenta.com
4
AZENTA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
Three Months Ended |
||||
|
|
December 31, |
||||
|
|
2023 |
|
2022 |
||
Revenue |
|
|
|
|
|
|
Products |
|
$ |
53,393 |
|
$ |
85,798 |
Services |
|
|
100,924 |
|
|
92,568 |
Total revenue |
|
|
154,317 |
|
|
178,366 |
Cost of revenue |
|
|
|
|
|
|
Products |
|
|
36,838 |
|
|
54,099 |
Services |
|
|
55,967 |
|
|
50,402 |
Total cost of revenue |
|
|
92,805 |
|
|
104,501 |
Gross profit |
|
|
61,512 |
|
|
73,865 |
Operating expenses |
|
|
|
|
|
|
Research and development |
|
|
8,493 |
|
|
7,536 |
Selling, general and administrative |
|
|
78,576 |
|
|
92,552 |
Restructuring charges |
|
|
1,120 |
|
|
1,462 |
Total operating expenses |
|
|
88,189 |
|
|
101,549 |
Operating loss |
|
|
(26,677) |
|
|
(27,685) |
Other income |
|
|
|
|
|
|
Interest income, net |
|
|
10,081 |
|
|
10,665 |
Other, net |
|
|
682 |
|
|
1,145 |
Loss before income taxes |
|
|
(15,914) |
|
|
(15,875) |
Income tax benefit |
|
|
(190) |
|
|
(4,640) |
Net loss |
|
$ |
(15,724) |
|
$ |
(11,235) |
|
|
|
|
|
|
|
Basic net loss per share |
|
$ |
(0.28) |
|
$ |
(0.15) |
Diluted net loss per share |
|
$ |
(0.28) |
|
$ |
(0.15) |
Weighted average shares used in computing net loss per share: |
|
|
|
|
|
|
Basic |
|
|
56,709 |
|
|
72,543 |
Diluted |
|
|
56,709 |
|
|
72,543 |
5
AZENTA, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
|
|
December 31, |
|
September 30, |
||
|
|
2023 |
|
2023 |
||
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
702,923 |
|
$ |
678,910 |
Short-term marketable securities |
|
|
281,212 |
|
|
338,873 |
Accounts receivable, net of allowance for expected credit losses ($7,465 and $8,057, respectively) |
|
|
155,926 |
|
|
156,535 |
Inventories |
|
|
127,184 |
|
|
128,198 |
Derivative asset |
|
|
— |
|
|
13,036 |
Short-term restricted cash |
|
|
4,792 |
|
|
4,650 |
Prepaid expenses and other current assets |
|
|
110,764 |
|
|
98,754 |
Total current assets |
|
|
1,382,801 |
|
|
1,418,956 |
Property, plant and equipment, net |
|
|
210,628 |
|
|
205,744 |
Long-term marketable securities |
|
|
61,962 |
|
|
111,338 |
Long-term deferred tax assets |
|
|
1,341 |
|
|
571 |
Goodwill |
|
|
800,166 |
|
|
784,339 |
Intangible assets, net |
|
|
290,229 |
|
|
294,301 |
Other assets |
|
|
77,187 |
|
|
70,471 |
Total assets |
|
$ |
2,824,314 |
|
$ |
2,885,720 |
Liabilities and stockholders' equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
40,237 |
|
$ |
35,796 |
Deferred revenue |
|
|
34,813 |
|
|
34,614 |
Accrued warranty and retrofit costs |
|
|
10,047 |
|
|
10,223 |
Accrued compensation and benefits |
|
|
33,368 |
|
|
33,911 |
Accrued customer deposits |
|
|
23,432 |
|
|
17,707 |
Accrued VAT payable |
|
|
24,033 |
|
|
20,595 |
Accrued income taxes payable |
|
|
13,228 |
|
|
7,378 |
Accrued expenses and other current liabilities |
|
|
56,462 |
|
|
50,704 |
Total current liabilities |
|
|
235,620 |
|
|
210,928 |
Long-term tax reserves |
|
|
369 |
|
|
380 |
Long-term deferred tax liabilities |
|
|
65,865 |
|
|
67,301 |
Long-term operating lease liabilities |
|
|
66,479 |
|
|
60,436 |
Other long-term liabilities |
|
|
12,317 |
|
|
12,175 |
Total liabilities |
|
|
380,650 |
|
|
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, 69,180,281 shares issued and 55,718,412 shares outstanding at December 31, 2023, 71,294,247 shares issued and 57,832,378 shares outstanding at September 30, 2023 |
|
|
692 |
|
|
713 |
Additional paid-in capital |
|
|
1,045,427 |
|
|
1,156,160 |
Accumulated other comprehensive loss |
|
|
(26,784) |
|
|
(62,426) |
Treasury stock, at cost - 13,461,869 shares at December 31, 2023 and September 30, 2023 |
|
|
(200,956) |
|
|
(200,956) |
Retained earnings |
|
|
1,625,285 |
|
|
1,641,009 |
Total stockholders' equity |
|
|
2,443,664 |
|
|
2,534,500 |
Total liabilities and stockholders' equity |
|
$ |
2,824,314 |
|
$ |
2,885,720 |
|
|
|
|
|
|
|
6
AZENTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
|
|
Three Months Ended |
||||
|
|
Three Months Ended December 31, |
||||
|
|
2023 |
|
2022 |
||
Cash flows from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(15,724) |
|
$ |
(11,235) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
21,866 |
|
|
20,181 |
Stock-based compensation |
|
|
3,202 |
|
|
2,105 |
Amortization and accretion on marketable securities |
|
|
(704) |
|
|
(3,104) |
Deferred income taxes |
|
|
(7,317) |
|
|
(6,325) |
Purchase accounting impact on inventory |
|
|
— |
|
|
2,869 |
Loss on disposals of property, plant and equipment |
|
|
266 |
|
|
17 |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
2,830 |
|
|
(12,141) |
Inventories |
|
|
4,542 |
|
|
(5,923) |
Accounts payable |
|
|
3,457 |
|
|
4,952 |
Deferred revenue |
|
|
(321) |
|
|
(59) |
Accrued warranty and retrofit costs |
|
|
(554) |
|
|
504 |
Accrued compensation and tax withholdings |
|
|
(979) |
|
|
(14,015) |
Accrued restructuring costs |
|
|
(90) |
|
|
1,139 |
Other assets and liabilities |
|
|
15,957 |
|
|
(5,985) |
Net cash provided by (used in) operating activities |
|
|
26,431 |
|
|
(27,020) |
Cash flows from investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(11,919) |
|
|
(12,842) |
Purchases of marketable securities |
|
|
— |
|
|
(166,374) |
Sales and maturities of marketable securities |
|
|
110,316 |
|
|
607,205 |
Acquisitions, net of cash acquired |
|
|
— |
|
|
(371,633) |
Net cash provided by investing activities |
|
|
98,397 |
|
|
56,356 |
Cash flows from financing activities |
|
|
|
|
|
|
Payments of finance leases |
|
|
(198) |
|
|
(91) |
Withholding tax payments on net share settlements on equity awards |
|
|
(2) |
|
|
(4,629) |
Share repurchases |
|
|
(112,953) |
|
|
(500,000) |
Net cash used in financing activities |
|
|
(113,153) |
|
|
(504,720) |
Effects of exchange rate changes on cash and cash equivalents |
|
|
12,501 |
|
|
49,941 |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
24,176 |
|
|
(425,443) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
684,045 |
|
|
1,041,296 |
Cash, cash equivalents and restricted cash, end of period |
|
$ |
708,221 |
|
$ |
615,854 |
Supplemental disclosures: |
|
|
|
|
|
|
Cash paid for income taxes, net |
|
|
2,599 |
|
|
7,291 |
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
|
|
|
|
|
December 31, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
Cash and cash equivalents of continuing operations |
|
$ |
702,923 |
|
$ |
678,910 |
Short-term restricted cash |
|
|
4,792 |
|
|
4,650 |
Long-term restricted cash included in other assets |
|
|
506 |
|
|
485 |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows |
|
$ |
708,221 |
|
$ |
684,045 |
7
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 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, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
||||||||||||
|
|
|
|
per diluted |
|
|
|
per diluted |
|
|
|
per diluted |
||||||
Amounts in thousands, except per share data |
|
$ |
|
share |
|
$ |
|
share |
|
$ |
|
share |
||||||
Net income (loss) from continuing operations |
|
$ |
(15,724) |
|
$ |
(0.28) |
|
$ |
2,806 |
|
$ |
0.05 |
|
$ |
(11,235) |
|
$ |
(0.15) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
5,627 |
|
|
0.10 |
|
|
4,769 |
|
|
0.08 |
|
|
4,168 |
|
|
0.06 |
Purchase accounting impact on inventory |
|
|
— |
|
|
— |
|
|
927 |
|
|
0.02 |
|
|
2,869 |
|
|
0.04 |
Amortization of other intangible assets |
|
|
6,862 |
|
|
0.12 |
|
|
7,481 |
|
|
0.13 |
|
|
7,372 |
|
|
0.10 |
Rebranding and transformation costs |
|
|
41 |
|
|
0.00 |
|
|
(15) |
|
|
(0.00) |
|
|
(65) |
|
|
(0.00) |
Restructuring and restructuring related charges |
|
|
1,120 |
|
|
0.02 |
|
|
804 |
|
|
0.01 |
|
|
1,462 |
|
|
0.02 |
Merger and acquisition costs and costs related to share repurchase (1) |
|
|
4,321 |
|
|
0.08 |
|
|
1,767 |
|
|
0.03 |
|
|
11,838 |
|
|
0.16 |
Indemnification asset release |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(19) |
|
|
— |
Tax adjustments (2) |
|
|
1,858 |
|
|
0.03 |
|
|
(6,691) |
|
|
(0.11) |
|
|
(1,436) |
|
|
(0.02) |
Tax effect of adjustments |
|
|
(2,688) |
|
|
(0.05) |
|
|
(4,379) |
|
|
(0.07) |
|
|
(6,000) |
|
|
(0.08) |
Non-GAAP adjusted net income from continuing operations |
|
$ |
1,417 |
|
$ |
0.02 |
|
$ |
7,469 |
|
$ |
0.13 |
|
$ |
8,954 |
|
$ |
0.12 |
Stock based compensation, pre-tax |
|
|
3,202 |
|
|
0.06 |
|
|
(715) |
|
|
(0.01) |
|
|
2,226 |
|
|
0.03 |
Tax rate |
|
|
12 |
% |
|
— |
|
|
15 |
% |
|
— |
|
|
15 |
% |
|
— |
Stock-based compensation, net of tax |
|
|
2,818 |
|
|
0.05 |
|
|
(608) |
|
|
(0.01) |
|
|
1,892 |
|
|
0.03 |
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations |
|
$ |
4,235 |
|
$ |
0.07 |
|
$ |
6,861 |
|
$ |
0.11 |
|
$ |
10,846 |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP diluted net income per share |
|
|
— |
|
|
56,709 |
|
|
— |
|
|
59,692 |
|
|
— |
|
|
72,543 |
(1) | Includes expenses related to governance-related matters. |
(2) | Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the quarter ended December 31, 2023, exclude the impact of recording valuation allowance adjustments against U.S. deferred taxes in the amount of $0.7M. Tax adjustments for the quarter ended December 31, 2022, include a $1.4M increase to expense related to the exclusion of allocations between continuing operations and discontinuing operations. |
8
|
|
Quarter Ended |
|
|||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|||
Dollars in thousands |
|
2023 |
|
2023 |
|
2022 |
|
|||
GAAP net income (loss) |
|
$ |
(15,724) |
|
$ |
3,375 |
|
$ |
(11,235) |
|
Less: Income (loss) from discontinued operations |
|
|
— |
|
|
569 |
|
|
— |
|
GAAP net income (loss) from continuing operations |
|
|
(15,724) |
|
|
2,806 |
|
|
(11,235) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Less: Interest income, net |
|
|
(10,081) |
|
|
(11,329) |
|
|
(10,665) |
|
Add / Less: Income tax (benefit) expense |
|
|
(190) |
|
|
(8,443) |
|
|
(4,640) |
|
Add: Depreciation |
|
|
9,377 |
|
|
9,891 |
|
|
8,640 |
|
Add: Amortization of completed technology |
|
|
5,627 |
|
|
4,769 |
|
|
4,168 |
|
Add: Amortization of other intangible assets |
|
|
6,862 |
|
|
7,481 |
|
|
7,372 |
|
Earnings before interest, taxes, depreciation and amortization - Continuing operations |
|
$ |
(4,129) |
|
$ |
5,175 |
|
$ |
(6,360) |
|
|
|
Quarter Ended |
|||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|||
Dollars in thousands |
|
2023 |
|
2023 |
|
2022 |
|||
Earnings before interest, taxes, depreciation and amortization - Continuing operations |
|
$ |
(4,129) |
|
$ |
5,175 |
|
$ |
(6,360) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Add: Stock-based compensation |
|
|
3,202 |
|
|
(715) |
|
|
2,226 |
Add: Purchase accounting impact on inventory |
|
|
— |
|
|
927 |
|
|
2,869 |
Add: Restructuring and restructuring related charges |
|
|
1,120 |
|
|
804 |
|
|
1,462 |
Add: Merger and acquisition costs and costs related to share repurchase(1) |
|
|
4,321 |
|
|
1,767 |
|
|
11,838 |
Less: Rebranding and transformation costs |
|
|
41 |
|
|
(15) |
|
|
(65) |
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations |
|
$ |
4,555 |
|
$ |
7,943 |
|
$ |
11,970 |
(1) | Includes expenses related to governance-related matters. |
|
|
Quarter Ended |
|
|||||||||||||||
Dollars in thousands |
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|||||||||
GAAP gross profit |
|
$ |
61,512 |
|
39.9 |
% |
|
$ |
68,034 |
|
39.5 |
% |
|
$ |
73,865 |
|
41.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
5,627 |
|
3.6 |
|
|
|
4,769 |
|
2.8 |
|
|
|
4,168 |
|
2.3 |
|
Purchase accounting impact on inventory |
|
|
— |
|
— |
|
|
|
927 |
|
0.5 |
|
|
|
2,869 |
|
1.6 |
|
Non-GAAP adjusted gross profit |
|
$ |
67,139 |
|
43.5 |
% |
|
$ |
73,730 |
|
42.8 |
% |
|
$ |
80,902 |
|
45.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
Sample Management Solutions |
|
Multiomics |
||||||||||||||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
||||||||||||||||||
Dollars in thousands |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
||||||||||||||||||
GAAP gross profit |
|
$ |
33,272 |
|
42.1 |
% |
|
$ |
38,296 |
|
46.8 |
% |
|
$ |
32,035 |
|
42.5 |
% |
|
$ |
28,471 |
|
45.4 |
% |
|
$ |
26,808 |
|
43.9 |
% |
|
$ |
27,716 |
|
45.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
816 |
|
1.0 |
|
|
|
867 |
|
1.1 |
|
|
|
429 |
|
0.6 |
|
|
|
1,039 |
|
1.7 |
|
|
|
1,211 |
|
2.0 |
|
|
|
1,215 |
|
2.0 |
|
Non-GAAP adjusted gross profit |
|
$ |
34,088 |
|
43.1 |
% |
|
$ |
39,163 |
|
47.9 |
% |
|
$ |
32,465 |
|
43.0 |
% |
|
$ |
29,510 |
|
47.1 |
% |
|
$ |
28,019 |
|
45.8 |
% |
|
$ |
28,931 |
|
47.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B Medical Systems |
|
Segment Total |
||||||||||||||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
September 30, |
|
December 31, |
|||||||||||||||||||||
Dollars in thousands |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
2023 |
|
2022 |
|||||||||||||||||||||
GAAP gross profit |
|
$ |
(231) |
|
(1.8) |
% |
|
$ |
2,930 |
|
10.0 |
% |
|
$ |
14,114 |
|
33.7 |
% |
|
$ |
61,512 |
|
39.9 |
% |
|
$ |
68,034 |
|
39.5 |
% |
|
$ |
73,865 |
|
41.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
3,772 |
|
30.0 |
|
|
|
2,691 |
|
9.1 |
|
|
|
2,523 |
|
6.0 |
|
|
|
5,627 |
|
3.6 |
|
|
|
4,769 |
|
2.8 |
|
|
|
4,168 |
|
2.3 |
|
Purchase accounting impact on inventory |
|
|
— |
|
— |
|
|
|
927 |
|
3.1 |
|
|
|
2,868 |
|
6.9 |
|
|
|
— |
|
— |
|
|
|
927 |
|
0.5 |
|
|
|
2,869 |
|
1.6 |
|
Non-GAAP adjusted gross profit |
|
$ |
3,541 |
|
28.1 |
% |
|
$ |
6,548 |
|
22.3 |
% |
|
$ |
19,506 |
|
46.6 |
% |
|
$ |
67,139 |
|
43.5 |
% |
|
$ |
73,730 |
|
42.8 |
% |
|
$ |
80,902 |
|
45.4 |
% |
|
|
Sample Management Solutions |
|
Multiomics |
|
B Medical Systems |
|||||||||||||||||||||
|
|
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 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|||||||||
GAAP operating (loss) profit |
|
$ |
(1,723) |
|
$ |
4,992 |
|
$ |
(3,476) |
|
$ |
(4,489) |
|
$ |
(4,502) |
|
$ |
(4,481) |
|
$ |
(8,181) |
|
$ |
(7,153) |
|
$ |
(454) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
816 |
|
|
867 |
|
|
429 |
|
|
1,039 |
|
|
1,211 |
|
|
1,215 |
|
|
3,772 |
|
|
2,691 |
|
|
2,523 |
Purchase accounting impact on inventory |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
927 |
|
|
2,869 |
Amortization of other intangible assets |
|
|
51 |
|
|
51 |
|
|
48 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,365 |
Other adjustment |
|
|
— |
|
|
— |
|
|
— |
|
|
(1) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1) |
|
|
— |
Non-GAAP adjusted operating (loss) profit |
|
$ |
(856) |
|
$ |
5,910 |
|
$ |
(2,998) |
|
$ |
(3,451) |
|
$ |
(3,291) |
|
$ |
(3,265) |
|
$ |
(4,409) |
|
$ |
(3,537) |
|
$ |
6,303 |
|
|
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 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|||||||||
GAAP operating (loss) profit |
|
$ |
(14,393) |
|
$ |
(6,663) |
|
$ |
(8,411) |
|
$ |
(12,284) |
|
$ |
(9,964) |
|
$ |
(19,274) |
|
$ |
(26,677) |
|
$ |
(16,628) |
|
$ |
(27,684) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
|
5,627 |
|
|
4,769 |
|
|
4,167 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,627 |
|
|
4,769 |
|
|
4,168 |
Purchase accounting impact on inventory |
|
|
— |
|
|
927 |
|
|
2,869 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
927 |
|
|
2,869 |
Amortization of other intangible assets |
|
|
51 |
|
|
51 |
|
|
1,413 |
|
|
6,811 |
|
|
7,430 |
|
|
5,959 |
|
|
6,862 |
|
|
7,481 |
|
|
7,372 |
Rebranding and transformation costs |
|
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
|
(15) |
|
|
(65) |
|
|
41 |
|
|
(15) |
|
|
(65) |
Restructuring charges |
|
|
— |
|
|
— |
|
|
— |
|
|
1,120 |
|
|
804 |
|
|
1,462 |
|
|
1,120 |
|
|
804 |
|
|
1,462 |
Merger and acquisition costs and costs related to share repurchase (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
4,321 |
|
|
1,767 |
|
|
11,838 |
|
|
4,321 |
|
|
1,767 |
|
|
11,838 |
Other adjustment |
|
|
(1) |
|
|
(1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1) |
|
|
(1) |
|
|
— |
Non-GAAP adjusted operating (loss) profit |
|
$ |
(8,716) |
|
$ |
(917) |
|
$ |
38 |
|
$ |
9 |
|
$ |
22 |
|
$ |
(80) |
|
$ |
(8,707) |
|
$ |
(896) |
|
$ |
(40) |
(1) | Includes expenses related to governance-related matters. |
10
|
|
Sample Management Solutions |
Multiomics |
|
B Medical Systems |
|
Azenta Total |
||||||||||||||||||||||||||||
|
|
Quarter Ended |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||||||||||
|
|
December 31, |
|
December 31, |
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December 31, |
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December 31, |
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|
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December 31, |
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December 31, |
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December 31, |
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December 31, |
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||||||||
Dollars in millions |
|
2023 |
|
2022 |
|
Change |
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||||
Revenue |
|
$ |
79 |
|
$ |
75 |
|
5 |
% |
$ |
63 |
|
$ |
61 |
|
3 |
% |
|
$ |
13 |
|
$ |
42 |
|
(70) |
% |
|
$ |
154 |
|
$ |
178 |
|
(13) |
% |
Acquisitions/divestitures |
|
|
1 |
|
|
— |
|
(2) |
% |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
1 |
|
|
— |
|
(1) |
% |
Currency exchange rates |
|
|
1 |
|
|
— |
|
(2) |
% |
|
0 |
|
|
— |
|
(0) |
% |
|
|
1 |
|
|
— |
|
(2) |
% |
|
|
2 |
|
|
— |
|
(1) |
% |
Organic revenue |
|
$ |
76 |
|
$ |
75 |
|
1 |
% |
$ |
63 |
|
$ |
61 |
|
2 |
% |
|
$ |
12 |
|
$ |
42 |
|
(71) |
% |
|
$ |
151 |
|
$ |
178 |
|
(15) |
% |
11