Azenta(AZTA)2023-08-09 01:45Financial Data and Key Metrics Changes - Total revenue for Q3 2023 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 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]