Azenta(AZTA)2024-11-27 00:20Financial 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].