Azenta(AZTA)2023-02-10 21:02Financial Data and Key Metrics Changes - Q1 revenue was 0.12, flat year-over-year, while GAAP EPS reported a loss of 90 million, with organic growth of 15% year-over-year, driven by a 23% increase in automated systems [22][23] - Services segment generated 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 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]