BURLINGTON, Mass., Feb. 7, 2024
/PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported
financial results for the first quarter ended December 31, 2023.
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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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2023
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2023
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2022
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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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154
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$
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172
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$
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178
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(10)
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%
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(13)
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%
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Organic growth
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(15)
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%
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Sample Management
Solutions
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$
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79
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$
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82
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$
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75
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(3)
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%
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5
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%
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Multiomics
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$
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63
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$
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61
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$
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61
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3
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%
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3
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%
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B Medical
Systems
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$
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13
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$
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29
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$
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42
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(57)
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%
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(70)
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%
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Diluted EPS Continuing
Operations
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$
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(0.28)
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$
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0.05
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$
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(0.15)
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(690)
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%
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(79)
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%
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Diluted EPS
Total
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$
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(0.28)
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$
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0.06
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$
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(0.15)
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(591)
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%
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(79)
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%
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Non-GAAP Diluted EPS
Continuing Operations
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$
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0.02
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$
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0.13
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$
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0.12
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(80)
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%
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(80)
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%
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Adjusted EBITDA -
Continuing Operations
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$
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5
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$
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8
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$
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12
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(43)
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%
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(62)
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%
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Adjusted EBITDA Margin - Continuing
Operations
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3.0 %
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4.6 %
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6.7 %
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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.
- 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.
- Organic revenue grew 2% year over year, primarily driven by
growth in Gene Synthesis and Next-generation sequencing services,
partially offset by a year-over-year decline in Sanger
sequencing revenue.
- B Medical Systems revenue was $13
million, down 70% year over year.
- Organic revenue declined 71% due to lower order volume in the
quarter compared to the prior year, primarily attributable to
timing of orders.
Summary of GAAP Earnings Results
- Operating loss was $27 million.
Operating margin was (17.3%), down 180 basis points year over year.
- Gross margin was 39.9%, down 160 basis points year over year
primarily due to product mix in B Medical, as well as increased
amortization costs.
- Operating expenses were $88
million, down 13% year over year, driven by the impact of
cost reduction actions implemented in fiscal year 2023, lower bad
debt expense, decreased corporate expenses related to the
accelerated share repurchase and governance-related costs, and
lower commissions expense in B Medical.
- 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.
- Gross margin was 43.5%, down 190 basis points year over year,
primarily due to product mix in B Medical.
- 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.
- 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.
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:
- 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.
- Adjusted EBITDA margin expansion is expected to be
approximately 300 basis points.
- 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.
"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
ir@azenta.com
Sherry Dinsmore
sherry.dinsmore@azenta.com
AZENTA, INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(unaudited)
(In thousands, except
per share data)
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Three Months Ended
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December 31,
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2023
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2022
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Revenue
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Products
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$
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53,393
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$
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85,798
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Services
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100,924
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|
|
92,568
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Total
revenue
|
|
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154,317
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|
|
178,366
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Cost of
revenue
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|
|
|
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Products
|
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36,838
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|
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54,099
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Services
|
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55,967
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|
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50,402
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Total cost of
revenue
|
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92,805
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|
104,501
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Gross profit
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61,512
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73,865
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Operating
expenses
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|
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|
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Research and
development
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|
8,493
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|
|
7,536
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Selling, general and
administrative
|
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|
78,576
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|
92,552
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Restructuring
charges
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|
1,120
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|
|
1,462
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Total operating
expenses
|
|
|
88,189
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|
|
101,549
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Operating
loss
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(26,677)
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|
|
(27,685)
|
Other income
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|
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|
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Interest income,
net
|
|
|
10,081
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|
|
10,665
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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)
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Diluted net loss per
share
|
|
$
|
(0.28)
|
|
$
|
(0.15)
|
Weighted average shares
used in computing net loss per share:
|
|
|
|
|
|
|
Basic
|
|
|
56,709
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|
|
72,543
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Diluted
|
|
|
56,709
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|
|
72,543
|
AZENTA, INC.
CONSOLIDATED BALANCE
SHEETS
(unaudited)
(In thousands, except
share and per share data)
|
|
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|
|
|
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|
|
|
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
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|
|
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
|
|
|
|
|
|
|
|
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
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Management Solutions
|
Multiomics
|
|
B Medical Systems
|
|
Azenta Total
|
|
|
Quarter Ended
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
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)
|
%
|
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multimedia:https://www.prnewswire.com/news-releases/azenta-reports-first-quarter-results-for-fiscal-2024-ended-december-31-2023-302056530.html
SOURCE Azenta