Business Strategy - Azenta, Inc. is pursuing the sale of its B Medical Systems segment to simplify its portfolio and focus on core businesses, aiming to drive revenue growth and profitability[2] - The company aims to enhance shareholder value through strategic evaluations and operational improvements[2] Financial Performance - Total revenue for the twelve months ended September 30, 2023, was $551,950,000, with product revenue at $176,100,000 and service revenue at $375,850,000[9] - Revenue from continuing operations for the twelve months ended September 30, 2023, was $551,950,000[16] - The company reported a net loss of $164,170,000 for the twelve months ended September 30, 2024, which includes a loss from discontinued operations of $140,531,000[9] - GAAP net loss from continuing operations for the twelve months ended September 30, 2023, was $(7,660,000)[14] - The company reported a GAAP net loss of $(164,170,000) for the twelve months ended September 30, 2024[14] Adjusted Financial Metrics - Adjusted operating income from continuing operations was $4,181,000 for the twelve months ended September 30, 2024, after accounting for various adjustments[12] - Adjusted EBITDA for the twelve months ended September 30, 2023, was $22,235,000, with an adjusted EBITDA margin of 4%[16] - Adjusted EBITDA for the six months ended June 30, 2024, was $29,155,000, with an adjusted EBITDA margin of 10%[16] - The company’s adjusted earnings before interest, taxes, depreciation, and amortization for the twelve months ended September 30, 2024, was $46,889,000[16] Losses and Charges - Operating loss from continuing operations for the twelve months ended September 30, 2024, was $50,561,000[12] - The company has incurred restructuring charges of $6,766,000 for the twelve months ended September 30, 2024[12] - Restructuring charges amounted to $4,577,000 for the twelve months ended September 30, 2023[14] - The company incurred stock-based compensation expenses of $8,830,000 for the twelve months ended September 30, 2023[14] - The company reported a loss from discontinued operations of $(6,596,000) for the three months ended September 30, 2023[14] Assets and Cash Flow - Total current assets amount to $832,807,000, with cash and cash equivalents at $280,030,000 and accounts receivable at $156,273,000 as of September 30, 2024[7] - Cash and cash equivalents decreased from $280,030,000 to $151,162,000 in short-term marketable securities as of September 30, 2024[7] - Interest income, net for the twelve months ended September 30, 2023, was $(43,541,000)[14] Discontinued Operations - As of November 12, 2024, the B Medical Systems segment qualifies as a discontinued operation under U.S. GAAP[3]

Core Insights - Azenta, Inc. reported financial results for the first quarter ended December 31, 2024, showing a revenue increase of 4% year-over-year to $148 million, driven by growth in Sample Management Solutions and Multiomics services [1][7][33] - The company experienced an operating loss of $11 million, with a diluted EPS from continuing operations of ($0.21), compared to ($0.13) in the same quarter last year [7][24] - Management expressed confidence in the company's market positioning and ongoing transformation initiatives, highlighting strong free cash flow and positive demand trends [3][14] Financial Performance - Revenue from continuing operations was $148 million, up 4% year-over-year, with organic growth also at 4% [7][33] - Sample Management Solutions revenue was $81 million, a 3% increase year-over-year, while Multiomics revenue reached $66 million, up 6% year-over-year [7][33] - Adjusted EBITDA for continuing operations was $13 million, with an adjusted EBITDA margin of 9.0%, reflecting a 400 basis point improvement year-over-year [14][7] Earnings Summary - Total diluted EPS was ($0.29), slightly down from ($0.28) a year ago, with a non-GAAP diluted EPS of $0.08, unchanged from the previous year [7][14][24] - Operating expenses increased by 3% year-over-year to $80 million, primarily due to higher selling, general, and administrative expenses [7][14] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $530 million, including $27 million from discontinued operations [14][19] Guidance and Outlook - Azenta reiterated its revenue guidance for fiscal year 2025, expecting total organic revenue growth in the range of 3% to 5% relative to fiscal 2024 [14][19] - The company anticipates an adjusted EBITDA margin expansion of approximately 300 basis points compared to fiscal 2024 [14][19]

Core Insights - Azenta, Inc. has elected Dipal Doshi, CEO of Entrada Therapeutics, to its Board of Directors during the Annual Meeting of Stockholders [1] - Mr. Doshi is recognized for his significant experience in the biotechnology and pharmaceutical industries, making him a valuable addition to the Board [2] - Mr. Doshi expressed enthusiasm about joining Azenta, highlighting the company's strong market leadership and commitment to growth and innovation [3] Company Overview - Azenta, Inc. is a leading provider of life sciences solutions, facilitating faster market access for breakthroughs and therapies [5] - The company offers a comprehensive suite of cold-chain sample management solutions and multiomics services, catering to drug development, clinical research, and advanced cell therapies [5] - Azenta operates globally with a presence in North America, Europe, and Asia, and is headquartered in Burlington, MA [6] Leadership Background - Dipal Doshi has extensive experience in the biotechnology and pharmaceutical sectors, having held critical roles in business development, corporate strategy, and finance [3] - Prior to his role at Entrada Therapeutics, Mr. Doshi served as Chief Business Officer at Amicus Therapeutics and has experience in investment banking with Merrill Lynch [4] - He holds an MBA from The Wharton School and a BA from Rutgers University, and is involved with other organizations in the life sciences sector [4]

Company Overview - Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions globally, facilitating faster market access for impactful breakthroughs and therapies [3] - The company offers a comprehensive range of reliable cold-chain sample management solutions and multiomics services, focusing on drug development, clinical research, and advanced cell therapies [3] - Azenta operates under several industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey [3] Financial Announcement - Azenta will announce its fiscal first quarter 2025 earnings on February 5, 2025, before the market opens, covering the period that ended on December 31, 2024 [1] - A conference call and live webcast to discuss the financial results will take place on the same day at 8:30 a.m. Eastern Time, accessible via the Azenta website [2] - A replay of the conference call will be available starting at 8:30 a.m. ET on February 6, 2025 [2] Operational Footprint - Azenta is headquartered in Burlington, MA, with operational presence in North America, Europe, and Asia [4]

Core Insights - Azenta, Inc. has been selected as the technology provider by UK Biocentre to expand large-scale sample storage for significant international sample collections [1] - The new BioArc Ultra system will enhance UK Biocentre's capacity to store biological samples, increasing from over 35 million to an additional 16 million samples [2] - The BioArc Ultra features a high-density, fully automated -80°C storage system with a picking capability of up to 9 million picks per year [2] Company Overview - Azenta, Inc. is a leading provider of life sciences solutions, offering cold-chain sample management and multiomics services to pharmaceutical, biotech, academic, and healthcare institutions globally [6] - The company operates under various brands, including GENEWIZ, FluidX, and others, and is headquartered in Burlington, MA, with operations in North America, Europe, and Asia [7] Industry Context - UK Biocentre specializes in managing and processing biological samples, supporting large-scale biomedical research and clinical studies [8] - The BioArc Ultra system aligns with UK Biocentre's mission to reduce environmental impact while enhancing sample storage innovation [5] - The system contributes to sustainability goals through an eco-friendly refrigeration system with zero Ozone Depletion Potential and zero Global Warming Potential [3]

Company Overview - Azenta (AZTA) shares increased by 7.2% to $49.65 in the last trading session, with a notable trading volume, contributing to a total gain of 13.2% over the past four weeks [1][2] - The company will join the S&P SmallCap 600, replacing Envestnet Inc. effective November 25, which has driven investor optimism [2] Financial Performance - Azenta reported a significant earnings surprise of 63.64% for the fourth quarter of fiscal 2024 [2] - The upcoming quarterly earnings are expected to be $0.05 per share, reflecting a year-over-year increase of 150%, while revenues are projected at $146.24 million, a decrease of 5.2% from the previous year [3] Market Sentiment - The consensus EPS estimate for Azenta has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Azenta currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [4] Industry Comparison - Azenta is part of the Zacks Medical Info Systems industry, where another company, Inspire Medical Systems (INSP), has a Zacks Rank of 1 (Strong Buy) and reported a 2% decrease in its last trading session [4][5] - Inspire's consensus EPS estimate has increased by 0.5% over the past month, indicating a year-over-year change of 46.9% [5]

Financial Performance - Total revenue for the year ended September 30, 2024, was $656.3 million, a decrease of 1.1% from $665.1 million in 2023[317]. - Product revenue decreased to $243.4 million in 2024 from $277.2 million in 2023, representing a decline of 12.2%[317]. - Service revenue increased to $412.9 million in 2024, up 6.4% from $387.9 million in 2023[317]. - Gross profit for 2024 was $263.4 million, slightly up from $263.1 million in 2023[317]. - Operating loss for the year was $200.7 million, compared to a loss of $73.1 million in 2023[317]. - Net loss for the year was $164.2 million, compared to a loss of $14.3 million in 2023[317]. - Total current assets decreased to $832.8 million in 2024 from $1.4 billion in 2023, a decline of 41.2%[316]. - Total assets decreased to $2.1 billion in 2024 from $2.9 billion in 2023, a decline of 27.2%[316]. - Total liabilities decreased to $331.1 million in 2024 from $351.2 million in 2023, a decrease of 5.7%[316]. - Total stockholders' equity decreased to $1.8 billion in 2024 from $2.5 billion in 2023, a decline of 30.2%[316]. - Net loss for the year 2024 was $(164,170) million, compared to a net loss of $(14,257) million for the same period in 2023[321]. Cash Flow and Investments - Cash provided by operating activities increased to $50,289 million from $7,158 million year-over-year[321]. - Total cash, cash equivalents, and restricted cash at the end of the period was $320,990 million, down from $684,045 million at the end of the previous year[321]. - The company had no outstanding debt on its balance sheet as of September 30, 2024[286]. - The company sold its semiconductor automation business for $2.9 billion in cash on February 1, 2022, which is reflected as discontinued operations in the financial statements[194]. - The company recorded a net increase to goodwill of $9.2 million due to various adjustments during the twelve months ended September 30, 2023[424]. - The company had sales and maturities of marketable securities of $0.7 billion and $1.1 billion for fiscal years 2024 and 2023, respectively[433]. - As of September 30, 2024, the fair value of marketable securities was $200.62 million, with gross unrealized losses of $387,000[434]. Foreign Currency and Risk Management - Sales in currencies other than the U.S. dollar accounted for 26% of total sales in fiscal year 2024, up from 24% in 2023[287]. - The company incurred foreign currency losses of $3.2 million in fiscal year 2024, compared to $4.2 million in 2023[288]. - The company plans to continue utilizing forward contracts to mitigate currency exposure risks[288]. - The Company reported net foreign currency transaction and remeasurement losses of $3.2 million, $4.2 million, and $1.7 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively[342]. Goodwill and Intangible Assets - The company's consolidated goodwill balance was $691.4 million as of September 30, 2024, with a significant impairment identified in the B Medical Systems reporting unit[303]. - A non-cash impairment charge of $111.3 million was recorded for goodwill within the B Medical Systems reporting unit for fiscal year 2024[428]. - The Company performs goodwill impairment tests annually or more frequently if impairment indicators are present, with significant judgment required[376]. - The total purchase price for B Medical was allocated at $432.16 million, with goodwill accounting for $228.24 million[424]. - Amortization expense for intangible assets was $51.3 million for the fiscal year ended September 30, 2024, up from $48.4 million in 2023[460]. Shareholder Equity and Stock Transactions - The company repurchased and retired a total of 30.0 million shares of common stock for $1.5 billion under the 2022 Repurchase Authorization as of September 30, 2024[474]. - The number of common stock shares outstanding decreased from 88,482,125 as of September 30, 2022, to 71,294,247 as of September 30, 2023[325]. - The company accrued $6.5 million for excise tax related to share repurchases settled in fiscal year 2024, impacting stockholders' equity[476]. Research and Development - Research and development costs consist primarily of personnel expenses related to the development of new products and enhancements to existing products[397]. Restructuring and Operational Efficiency - The company launched a restructuring plan in the second quarter of fiscal year 2024, with a focus on improving profitability and efficiency, expecting completion by the end of fiscal year 2026[463]. - Total restructuring expenses for the fiscal year ended September 30, 2024, included $5.3 million related to the B Medical Systems segment and $3.2 million for the Sample Management Solutions segment[464]. - Total restructuring charges for fiscal year 2024 amounted to $11,808,000, a significant increase from $4,577,000 in 2023[466]. Accounting and Compliance - The Company does not expect the adoption of recent accounting standards to have a material impact on its consolidated financial statements[406][409]. - The Company evaluates uncertain tax positions quarterly, which may result in adjustments to tax benefits or expenses[404].

Core Insights - Azenta, Inc. will participate in the Stephens Annual Investment Conference on November 20, 2024, with a presentation scheduled for 1:00 pm CT [1] - The company is a leading provider of life sciences solutions, focusing on accelerating breakthroughs and therapies to market [1] - Azenta offers a comprehensive range of cold-chain sample management solutions and multiomics services for drug development, clinical research, and advanced cell therapies [1] Company Overview - Azenta, Inc. is headquartered in Burlington, Massachusetts, and operates in North America, Europe, and Asia [2] - The company serves top pharmaceutical, biotech, academic, and healthcare institutions globally [1] - Azenta's product and service offerings are delivered through industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey, and B Medical Systems [1]

Financial Data and Key Metrics Changes - For fiscal year 2024, the company reported revenue of $656 million, down 2% year-over-year on an organic basis, while adjusted EBITDA margin improved by approximately 300 basis points [15][48][53] - Fourth quarter revenue was $170 million, down 1% year-over-year on a reported basis and down 2% on an organic basis, with non-GAAP gross margin at 45%, up 220 basis points year-over-year [51][54] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue for the fourth quarter was $85 million, up 4% year-over-year reported and up 3% organic, with notable growth in Cryogenic Stores (67% growth) and Consumables & Instruments (14% growth) [55][56] - Multiomics revenue reached $66 million in the fourth quarter, representing 8% growth on both a reported and organic basis, driven by a 25% increase in Next Generation Sequencing [57][58] Market Data and Key Metrics Changes - The Multiomics business in China delivered organic revenue growth of 6%, outperforming a challenging market [59] - B Medical revenue was $19 million in the fourth quarter, down 35% year-over-year, reflecting a decline in orders [60] Company Strategy and Development Direction - The company announced the decision to sell B Medical to refocus on core businesses with high growth potential and margin expansion opportunities [17][46] - Key areas of focus for 2025 include portfolio optimization, operational excellence, and value-enhancing capital allocation, with a commitment to simplifying operations and aligning incentives with performance metrics [25][30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term sustainable value, citing positive indicators and a backlog secured to date [37][38] - The guidance for 2025 is for organic revenue growth in the range of 3% to 5%, with expectations for Multiomics to grow low-single-digits and SMS to grow mid-single-digits [65][66] Other Important Information - The company completed a $1.5 billion share repurchase program, buying back approximately 30 million shares over the last two years [54] - The company ended the quarter with $522 million in cash and no outstanding debt, indicating a strong balance sheet [61] Q&A Session Summary Question: Guidance on fiscal '26 targets and growth assumptions - Management indicated that the guidance of 3% to 5% organic growth assumes the current market environment and reflects a prudent approach given uncertainties [70][71] Question: Dynamics behind EBITDA margin guidance - The guidance for fiscal '25 implies a stable EBITDA margin, with expectations for continued margin expansion driven by operational improvements [72][73] Question: Performance of Next Generation Sequencing (NGS) and Gene Synthesis - NGS grew 25% year-over-year, with management optimistic about continued strong performance, while Gene Synthesis saw low-single-digit growth in the quarter [76][77] Question: Impact of China tariffs and growth in China - China experienced 10% growth in the fourth quarter and 12% for the full year, with management not expecting significant tariff impacts based on current operations [78][79] Question: Outlook for the freezer market - Management expressed confidence in the freezer business, highlighting strong backlog visibility and competitive advantages in automation [85][86] Question: Pricing dynamics in the guidance for 2025 - Management acknowledged potential pricing headwinds in NGS but noted recent price stabilization as a positive indicator [97][98] Question: Timeline for the B Medical transaction - The company anticipates closing the B Medical transaction within the first half of the year [100]

Company Performance - Azenta reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.13 per share a year ago, representing an earnings surprise of 63.64% [1] - Brooks, part of the Zacks Medical Info Systems industry, posted revenues of $170.06 million for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.26%, and down from $172.36 million year-over-year [2] - Brooks has surpassed consensus EPS estimates four times over the last four quarters [2] Stock Performance - Brooks shares have declined approximately 29.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current Zacks Rank for Brooks is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for Brooks is $0.09 on revenues of $173.56 million for the upcoming quarter, and $0.42 on revenues of $703.29 million for the current fiscal year [7] - The trend for earnings estimate revisions for Brooks is currently unfavorable, which may impact future stock performance [6] Industry Context - The Medical Info Systems industry is ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]