Conference Call Third Quarter Fiscal 2023 Financial Results ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $166 million, representing a 25% increase year-over-year and a 2% increase on an organic basis [22][24] - Non-GAAP earnings per share was $0.13, with adjusted EBITDA margin at 7.8% [23][26] - Operating expenses increased by $20 million year-over-year, primarily due to acquisitions and investments in sales and R&D [25][26] Business Line Data and Key Metrics Changes - Services segment revenue was $91 million, up 7% year-over-year, with organic growth of 8% [28] - Genomics business grew by 8% year-over-year, driven by strong performance in next-generation sequencing and gene synthesis [11][29] - Product segment revenue was $75 million, up 57% year-over-year, but organic growth declined by 9% due to softness in consumables [27] Market Data and Key Metrics Changes - The company reported strong growth in China, with Q3 growth close to 20% [42][67] - The sample repository solutions business grew 6% year-over-year, led by double-digit growth in storage [13][28] - The C&I business experienced a decline of 24% year-over-year, impacting overall performance [50] Company Strategy and Development Direction - The company is focused on aligning sales with customer decision-makers and enhancing operational efficiency through a new reporting structure [9][10] - A significant share repurchase program is underway, with over $672 million spent year-to-date [30][20] - The company is evaluating potential acquisition targets as part of its growth strategy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth patterns, particularly in the synthesis business [12][21] - The company anticipates a revenue growth range of 17% to 20% for the full fiscal year [34] - Management noted ongoing softness in the C&I business but remains optimistic about the overall portfolio's performance [45][50] Other Important Information - The company launched several new multi-omics services, enhancing its offerings in the genomics space [12][14] - A new bio repository location is set to open in Greater Boston, expanding the company's sample storage capacity [13] - The company reported positive free cash flow for the first time as a standalone life sciences company [10] Q&A Session Summary Question: Synergies between combined segments and cross-selling opportunities - Management highlighted the natural alignment of sample management and automated stores, enhancing customer asset management capabilities [38][39] Question: Trends in China - Management reported strong growth in China, with Q3 growth around 20% and continued momentum into Q4 [42][67] Question: C&I portfolio recovery and destocking impacts - Management indicated ongoing destocking but noted a healthy C&I business, with expectations for recovery in the future [45][46] Question: Genomics business performance and market share - Management confirmed strong growth in genomics, with NGS up 13% and gene synthesis up 9%, while Sanger remained flat [56][57] Question: Impact of recent events in China on operations - Management stated that recent floods in China have not impacted operations or demand, maintaining a positive outlook [67] Question: Base business outlook for Q4 - Management expects the base business to be up about $1 million quarter-to-quarter, with specific guidance on B Medical orders [62][64]

Revenue Performance - Revenue for the three months ended June 30, 2023, increased by 25% to $165.9 million compared to $132.7 million for the same period in 2022, driven by a 57% increase in the Life Sciences Products segment[205]. - Revenue for the nine months ended June 30, 2023, increased by 18% to $492.7 million compared to $417.9 million for the same period in 2022, primarily driven by a 48% increase in the Life Sciences Products segment[206]. - Revenue generated outside the United States for the three months ended June 30, 2023, was $76.1 million, representing 46% of total revenue, up from $44.8 million or 34% in the prior year[214]. - Life Sciences Products segment revenue for the nine months ended June 30, 2023, increased by 48% to $223.1 million, while Life Sciences Services segment revenue increased by only 1% to $269.6 million[215][219]. - COVID-19 related revenue for the nine months ended June 30, 2023, was $6.0 million, a significant decrease from $21.0 million in the same period of 2022[218]. - Life Sciences Products revenue for the three months ended June 30, 2023, was $26,524 thousand, a 68.6% increase from $15,746 thousand in the same period of 2022[243]. - Life Sciences Services revenue for the three months ended June 30, 2023, was $41,204 thousand, up 18.4% from $34,677 thousand in the same period of 2022[243]. Gross Margin and Operating Income - Gross margin for the three months ended June 30, 2023, was 41.0%, down from 44.9% in the same period of the prior year, primarily due to higher costs and amortization related to the acquisition of B Medical[205]. - Gross margin for the nine months ended June 30, 2023, was 39.6%, down from 47.2% in the same period of the prior year, primarily due to higher costs and an unfavorable mix in the Life Sciences Products segment[206]. - Total adjusted operating income for the nine months ended June 30, 2023, was a loss of $14.4 million, compared to an adjusted operating income of $26.9 million in the prior year[222]. - Adjusted operating margin for Life Sciences Products decreased by 2.8 percentage points for the three months ended June 30, 2023, compared to the prior year[225]. - Life Sciences Products segment adjusted operating income decreased by $17.0 million, with an adjusted operating margin decline of 10.2 percentage points for the nine months ended June 30, 2023, compared to the prior fiscal year[228]. - Life Sciences Services segment adjusted operating income decreased by $24.2 million, with an adjusted operating margin decline of 9.0 percentage points for the nine months ended June 30, 2023, compared to the prior fiscal year[229]. Operating Expenses and Losses - Operating loss for the three months ended June 30, 2023, was $15.8 million, compared to a loss of $5.1 million for the same period in 2022, mainly due to reduced gross margin and increased operating expenses[205]. - Operating expenses for the nine months ended June 30, 2023, increased by $44.0 million compared to the same period in 2022, with selling, general, and administrative expenses accounting for a significant portion of this increase[206]. - The company recorded a net loss of $1.9 million from discontinued operations for the nine months ended June 30, 2023, compared to a net income of $2.2 billion for the same period in 2022[206]. - Operating loss for the three months ended June 30, 2023, was $15.8 million, compared to an operating loss of $5.1 million in the prior year, attributed to higher operating expenses of $19.2 million[224]. Acquisitions and Investments - The company acquired B Medical Systems and Ziath Ltd. to enhance its product offerings and cold chain capabilities, supporting its growth strategy in the life sciences sector[198]. - Selling, general, and administrative expenses increased by $54.6 million for the nine months ended June 30, 2023, largely due to the acquisitions of B Medical and Barkey[227]. - B Medical was acquired in October 2022, representing 2% of total assets and 17% of total revenues for the nine months ended June 30, 2023[274]. Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended June 30, 2023, was $22.4 million, a significant decrease from $475.7 million in the same period of 2022[262]. - Cash and cash equivalents as of June 30, 2023, totaled $733.4 million, an increase from $658.3 million as of September 30, 2022[261]. - Net cash provided by investing activities for the nine months ended June 30, 2023, was $328.9 million, compared to $1,840.1 million in the same period of 2022[262]. - The company has authorized a new share repurchase program of up to $1.5 billion, replacing the previous $50 million program[263]. - As of June 30, 2023, the company repurchased 4.0 million shares for $172.1 million under the new arrangements, with $828.0 million remaining available for additional repurchases[263][264]. - An additional 2.0 million shares were repurchased for $91.6 million subsequent to June 30, 2023[264]. Tax and Legal Matters - The effective tax benefit for the nine months ended June 30, 2023, was $9.1 million, primarily driven by pre-tax losses and a deferred tax benefit from a tax incentive in China[252]. - The company is subject to various legal proceedings but believes none will have a material adverse effect on its consolidated financial condition or results of operations[277]. Foreign Currency and Commitments - Approximately 24% of total sales during the nine months ended June 30, 2023, were in currencies other than the U.S. dollar, primarily from foreign subsidiaries[271]. - The company incurred foreign currency gains (losses) of $(0.1 million) during the nine months ended June 30, 2023, compared to $1.9 million in the same period of 2022[272]. - The company had non-cancellable commitments of $70.8 million as of June 30, 2023, primarily for inventory and IT-related commitments[267].

Azenta, Inc. (NASDAQ:AZTA) Q2 2023 Earnings Conference Call May 9, 2023 4:30 PM ET Company Participants Sara Silverman - Head, IR & Corporate Communications Stephen Schwartz - CEO, President & Director Lindon Robertson - EVP & CFO Conference Call Participants Paul Knight - KeyBanc Capital Markets Vijay Kumar - Evercore ISI David Saxon - Needham & Company Jacob Johnson - Stephens Inc. Yuan Zhi - B. Riley Securities Operator Greetings, and welcome to the Azenta Q2 2023 Financial Results. [Operator Instruction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to _________ Commission File Number 000-25434 AZENTA, INC. (Exact name of registrant as specified in its charter) Delaware 04-30 ...

Azenta Life Sciences Barclays Global Healthcare Conference March 15, 2023 Safe Harbor Statement "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Further discussions of risk factors are avail ...

Financial Data and Key Metrics Changes - Q1 revenue was $178 million, representing a 28% year-over-year increase and a 30% sequential increase. Organic growth, excluding COVID impacts, was 7% year-over-year [16][19][20] - Non-GAAP EPS was $0.12, flat year-over-year, while GAAP EPS reported a loss of $0.15 [17][20] - Adjusted EBITDA margin was approximately 7% [17][21] Business Line Data and Key Metrics Changes - Products segment revenue totaled $90 million, with organic growth of 15% year-over-year, driven by a 23% increase in automated systems [22][23] - Services segment generated $89 million in revenue, with organic growth of 4%, led by a 10% increase in Sample Repository Solutions [24][26] - Cell and gene therapy sales grew nearly 60% year-over-year, contributing approximately 10% to total revenue [9][50] Market Data and Key Metrics Changes - The U.S. market remains a steady grower, Europe is making progress, and China showed double-digit growth in genomics despite COVID challenges [9][10] - B Medical achieved a record revenue of $42 million, although it fell short of initial expectations [10][19] Company Strategy and Development Direction - The company is focusing on accelerating investments in sales talent and innovative product development to drive growth [12][15] - A tuck-in acquisition of Ziath was completed to enhance the portfolio of high-throughput offerings [14] - The company aims to achieve low double-digit growth objectives in the second half of the fiscal year [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and growth potential despite macroeconomic challenges [11][15] - The company anticipates that cost reduction measures will contribute to margin expansion in the second half of fiscal 2023 [18][30] Other Important Information - The company plans to return approximately $1 billion to shareholders within the calendar year, including a $500 million accelerated share repurchase program [18][27] - The balance sheet remains strong with over $1 billion in cash available for strategic investments [19][27] Q&A Session Summary Question: Guidance on revenue growth and margin expectations - Management reiterated the target of 30% revenue growth for the year but acknowledged margin pressures in the first half, expecting to achieve 10% or better EBITDA margins by Q4 [33][34] Question: Acceleration in cell and gene therapy growth - Management noted a surprising increase in growth attributed to new offerings and strong customer engagement, with a significant portion of growth coming from the genomics business [35][36] Question: Visibility in the storage part of the Sample Repository Solutions business - Management confirmed strong visibility in storage revenue growth, indicating a solid recurring revenue base as samples are stored [39][40] Question: Focus of future M&A activities - Management indicated that while recent M&A has focused on products, there is an active pipeline for genomics-related acquisitions as well [46][47] Question: Revenue contribution from cell and gene therapy - Management confirmed that cell and gene therapy now accounts for approximately 10% of total revenue, excluding B Medical [49][50] Question: Trends in genomic services customer behavior - Management observed no significant differences in spending behavior across customer segments, although academic institutions may show slightly slower spending [69][70]

Conference Call First Quarter Fiscal 2023 Financial Results February 8, 2023 1 Azenta Life Sciences | Proprietary and confidential. Safe Harbor Statement "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from thos ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: December 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to _________ Commission File Number 000-25434 AZENTA, INC. (Exact name of registrant as specified in its charter) Delaware 04 ...