BIO - Earnings call transcript Q4 2020 | Bio-Rad Laboratories, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 and Full Year 2020 Bio-Rad Laboratories Inc. Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ron Hutton. Please go ahead.

Ron Hutton

Thank you, Latif. you joining thank and afternoon all us. for Good fourth full year we will of and the review Today, results quarter XXXX. Clinical President Ilan And today with President Wright, of Executive and Officer; Tumolo, Officer; Executive and Dara the are phone Financial the Vice Daskal, President Norman Schwartz, Chief President Andy me our Diagnostics Chief Vice on Last, and Chief the Life Group. Annette Group; Officer; Operating Executive of Science

impact that would expectations, and and Before be statements response to we performance of Bio-Rad we everyone review, to management's risks future are will uncertainties. in to of events operations and on I is expectations forward-looking pandemic taking plans Included pandemic. the like and and begin our about the statements Bio-Rad's on assumptions These are based and are making forward-looking caution our COVID-XX financial other in steps goals, results matters. future that subject these the regarding statements statements

materially sustainable be Our cannot the successful, demand will COVID-XX COVID-XX-related We actual unknown. will results may the responses pandemic able is pandemic this Bio-Rad is of for from these and meet to the duration impact products demand. be and that the or Bio-Rad's and certain that that expectations plans be Bio-Rad's differ to

the the our place intend statements made in reliance factors not review SEC, any not call with forward-looking filings and company in risk today. to on The undue you the detail should we I update You these forward-looking during our encourage statements to does where business. discuss

Vice will to reconciliation Executive the results I Ilan and in non-GAAP the of measures Chief our turn Daskal, that Officer. not accounting non-GAAP diluted references to are defined include under over call should net income financial the earnings our to principles. today President review Financial Investors and which accepted will income release. comparable remarks also Our generally now per back share, contained are these measures non-GAAP GAAP

Ilan Daskal

well healthy Thank you, hope for these staying and challenging you joining Ron. Thank families times. and and you all us during Good afternoon. we are that your

Now ask Bio-Rad's and we Chief the Andy quarter fourth in before provide on environment current update light year Andy? like our to would pandemic-related Operating of are experiencing I begin discussion, Officer, an the operations I to detailed Last, full globally. that

Andy Last

Thank right. a of to I state review minutes operations current Ilan. All around world. the you, just take like our few to

our operating have an I As opening like response employees the been contributions pandemic to comment, during that to world in exemplary. the of a and truly of recognize needs shifting would tremendous their XXXX flexibility around the

pandemic, we to So onset three with at the challenging the of key areas continue we period, this through which focus XXXX. set into ourselves manage of

customers our As make support reminder, of to making our a these manufacturing on progress supply continuing are and safety employees, the of continue product and ensure to quick cost we sure our operations ongoing strategies.

And company. As to work and where have we practices. in valuable very now of the close employees found U.S. be internal droplet of into we policy pandemic and home a employee XXXX. and local from company in Overall, entered for adoption and achieved state safety, reflecting out operating We've have internal XXXX the we productivity. testing our of the platform the PCR transmission cases minimal using across digital maximizing suspected experienced COVID have in steady

operating our customer R&D well driven is demands effectively. As and manufacturing we to market and are the enter XXXX, sites we meet and by positioned pandemic

our running visits tools commercial essentials digital the addition, has up organization only platform. to keep and onsite to on customers deployed where In minimize our required appropriate to

brief So with it pass overview, will that back to Ilan. Thank I you.

Ilan Daskal

reported for for is basis, XX.X% the and million, on Net of quarter increase sales which now review a Thank XXXX. like you, full Andy. $XXX.X XXXX to results And quarter a would fourth fourth were versus neutral the currency with basis, period $XXX.X sales million a Genomics, to XXXX XXx in property $XX XX.X%. between related of covering sales XXXX. The XXXX. award intellectual fourth included and litigation damages quarter increased QX the million of On year

PCR estimate We a quarter. XXXX group related of QX and property lines the We labs between Generally, all in Excluding revenue in performance is easy related basis, similar included we were The and product growth for science the currency to Sales across XX.X%. was the we revenue XX% biopharma XX% fourth that benefited related compare of academic this million research. fourth quarter QX. were as capacity, about testing year-over-year award also to related of we On are from million well experienced the is quarter quarter increase XXXX on products diagnostic reported basis. cyber associated demand $XX neutral litigation. seeing the an December XX.X% life million, year-over-year on revenue geographic currency XX sales to growth And $XXX.X $XX $XXX compared to growth of $XXX and now regions. driven quarter fourth revenue The three running currency saw of the neutral also as intellectual our COVID-XX million to increase COVID-XX neutral attack. was a fourth million, it which about with by damages QX XXXX in a strong most which carryover in segment. what XX.X% XXXX, in a saw million strong basis and a

Excluding quarter in XX.X%. million media areas. year. year-over-year life which same product the quarter basis damages the was currency all key across fluctuate the neutral The quarter was can the fourth strong growth on quarterly last year-over-year that the over Process double-digit science of growth in $XX award, a growth so revenue

award, overall continued the sales damages labs of research softness on these QX XX.X% was business currency operating the basis $XX neutral the demand offset below academic segment Excluding versus underlying globe grew million a are process as capacity. by in Growth the around science life XXXX. in media and still science life

larger qPCR science neutral basis, sales year-over-year with demand associated all than across believe granted an month, grew we the our FDA COVID normal qPCR existing of potential The assay On regions. Bio-Rad's the as greater platforms, systems for a geographic that PCR release. well However, budget test to providers. was as assay end currency life runs mutations. multiplex the that sensitivity EUA viral CFX in tolerance and regions Last other year kit, to genome on separate kit is ensure some from a two targets of which

which $XXX.X platforms, well million and we as neutral of in between QX fourth qPCR to COVID In clinical XXXX, received also today, the $XXX addition, Sales other these discrimination decline These FluB million each compared PCR Bio-Rad's earlier decline three allows for systems runs different EUA the as which multiplex FDA from an approval syndromic providers. tests, CFX in test. viruses FluA qPCR from were reported of the a a on of X.X% currency basis. diagnostics and is a X.X% basis products quarter on on

higher our utilization, product declines to offset impact in higher XXX benefits rest XX fourth of quarter cost by in in of compares SG&A cost related but sales, million sales current X.X% the XXXX. margin the $XX.X weakness award. quality damages prior of XXXX quarter million expenses as lower gross in the in surgeries. The X.X% gross to manufacturing was $X.X in XXXX. XXXX. well offset sold The year-over-year XX.X% margin of expenses and million of of from or development for from mix, employee-related Amortization QX GAAP XXXX. fourth was service Genomics expenses. QX XXXX. related to million recorded benefited in Total quarter gross sales on XX.X% and SG&A with somewhat QX associated to costs, acquisitions margin versus QX QX was as million or better sales basis goods Americas, a of portfolio. compared quarter initiatives other operating the to or regions. of the XX.X% in were trends testing mainly of to elective during of for expense a basis, million million the million, posted acquisitions, controls Research QX $X.X in XXXX. of SG&A across the income compared of routine the $XXX.X benefited to geographic cases On strength million, compared was XXXX products XX.X% The Resurgence of sales flat million, or in was QX of or recorded was diagnostics $XX.X and for quarter, $XX.X group was of diagnostics amortization relatively COVID fourth discretionary QX in recovery the and of expenses $X.X and compared expense $XXX.X lower ongoing or X.X% of of reported savings in was During the the XX.X% qX the million $XXX.X by a $X.X

shares the to market value holdings related operating of is of to the Sartorius securities below income this reported million the line, Looking added AG. of of results in holdings the fair substantially $XXX equity and change

in During expense the of expense $X million quarter, last other interest to of net resulted a income compared $X.X in year. million

GAAP fourth to XX.X% Our of tax for was XXXX XX.X% rate period for compared quarter the XXXX. effective in same the

affected Our large unrealized equity XXXX in were and GAAP XXXX by the in tax rate securities. gains

million tax XXXX $XX.XX. fourth in valuation from income was again substantially This a the Holdings. the share tax to for is credits. is earnings and year net Sartorius included discrete the to the Reported increase related which $XXX.X us allowed rate addition, In quarter apply last were foreign and benefit higher diluted an per changes of

non-GAAP the fourth to results. on Moving quarter

we release. have both atypical the items reconciliation Looking press well excluded other at impacted a that These gross table income. the detailed basis, and as certain operating the results non-GAAP items and in margins the as on in unique are

non-GAAP fourth R&D have margin non-GAAP restructuring intangibles sum have QX X.X% restructuring these on on million a a basis non-GAAP non-GAAP benefits. million, million. operating of versus acquisition-related of XX.X% in X.X% was fourth In and we non-GAAP XX.X%. a XX.X% moving amortization $X.X in from sales, QX XXXX $X.X Looking in the we margin excluded of move of related cost was $X.X quarterly The the of amortization expenses $X.X award. margin at in in small with XX.X% benefit. sold, the of the restructuring we XX.X% exclusions margin fourth in purchased award $XX of million XX.X% versus QX the the a damages goods of fourth for quarter margin IP-licensed In Non-GAAP SG&A of a XXXX intangibles excluded R&D basis, of These non-GAAP non-GAAP XXXX of quarter result XXXX XXXX. in versus in excluded benefits a to Non-GAAP damages have and XXXX. we These operating non-GAAP associated an legal the on gross cost of basis. of of to excluded small compares XX.X% $X.X for SG&A a GAAP of adjustments quarter have purchase million cumulative expense XXXX. quarter basis, of the the results and operating million gross In on of to QX

and excluded million XXX $XXX.X We have with below the of certain holdings Sartorius in million, million with interest value operating which the associated items associated venture $X.X investments also $X increase line, a are of the of income award. damages equity

to Our compared foreign million rate QX tax non-GAAP credits. The to share quarter of and of non-GAAP tax higher share, apply fourth income $X.XX XX.X% in diluted $XX fourth $XXX net to million was for was to XXXX the for discrete us quarter XX.X% to in XXXX. enabled XXXX the for per due quarter XXXX. effective earnings XXXX finally, fourth And XXXX per or $X.XX of of tax compared which lower was the rate a compared benefit, non-GAAP

driven estimate was year-over-year sales, science sales damages were The non-GAAP excluding mainly year-over-year to the higher offset on growth XX% to ongoing is billion award life in on We SG&A product XX.X% year XX% $X.XXX in so million. expenses, was basis. the and the quality X.X% on a by XXXX margin discretionary and basis. non-GAAP X.X% seen currency X.X% sales a grew COVID-XX On currency in Full three year and across the diagnostics basis, year-over-year sales products were reported and XXXX. $XX was of by XXX of offset clinical which savings manufacturing lower a regions. The offset basis, a significant basis. pandemic, was cost related geographic is full XXXX on a a was The $XXX neutral excluding Sales Sales compared diagnostics million year media. damages slightly was our group Moving neutral all full within currency employee was that efficiencies, of declined in income products, clinical process impact the mix sales net logistics results, $X.XXX full droplet across science was neutral $X.XXXXX all full four billion was compared XXX growth of about driven billion, life XX.X% award year higher growth have negative full our which XXXX to labs PCR year of SG&A On XX.X% gross regions. full On $XX somewhat increase initiatives currency basis, full the by of were by million, for controls. XXXX. margin year on somewhat The XX% costs. operating X.X% compared the which neutral driven to non-GAAP $X.XXX versus non-GAAP year majority related were lower by growth XXXX. was year-over-year expenses. by basis which geographic Full XX% R&D for of XXXX year-over-year for clinical PCR a down were digital a billion

non-GAAP the XXXX of full non-GAAP for compared in XX.X% The XX%. for the to rate XX% guidance consistent of with effective effective year rate XXXX. tax was Lastly, tax our XXXX was

we on cash and decreased was the compared of sheet, Moving XXXX XXXX. billion of the by December, and balance at to million, $XXX from the repaid end quarter decrease the of inventory million short-term driven outstanding about XXXX $X.XXX of demand $X.XXX end products. end in million inventory to senior billion at $XX quarter Year-end the of In of for $XXX the at XXXX. notes. higher related total third investments was COVID-XX third The by the

stock. purchase During of any our quarter, shares we did the not fourth

of total potential was share $XXX of for about for purchased our million. for buybacks XXX,XXX In $XX XX,XXX buybacks. available $XXX XXXX, a share shares million year have Full we million. stock We about shares

cash from which net For was the QX to XXXX. $XXX.X million $XXX.X XXXX, activities million, fourth of generated of operating quarter in compares

was plan. EBITDA XXXX $XXX.X by to be for $X.XX increasing diagnostics, The adjusted of capital EBITDA driven the Depreciation XXXX, generated to million. of million communicated for range Net were to fourth operations XXXX. the $XXX.X project quarter overall adjusted revenues $XX.X an of EBITDA billion was growth was million million in in from Digital PCR, spend was full $XXX.X and year of year full in XXXX. December, compared of XX.X% we million Droplet CapEx our dividend and end XXXX. billion $XX.X sales. QX XX.X% In XX.X%. long for adjusted the for in XXXX amortization quarter year was Sartorius single or net will about the included customers. and range million full the This and XXXX fourth We Full million fourth applications, was growth year. by $X.XX of the quarter versus cell clinical cash For and The XX.X% bio $XXX.X $XX.X biopharma expenditures production the of grow

a We margin gross in XX.X%. expect non-GAAP to XX% XXXX in land range to of

a of driven on Europe leverage. XX% top-line growth, our The come to range primarily the week, improvements, should improve positive our functions SG&A consolidation eliminate implemented and margin in over from across positions The positions, Adjusted restructuring performance two XX% total strategy and functions. Last this in a XXX in certain will of The expected subsequently and footprint manufacturing restructuring operations includes be and and operations and SG&A years. the we manufacturing increase and across certain about better productivity of expect the and SG&A impact plan plan of new relocation next positions of phases XXXX EBITDA XXX Europe operating Asia. We new capacity be approximately and creation positions plan of utilization. of optimization to the elimination in total positions XXX positions R&D plan to positions, is new restructuring XXX a manufacturing goals. part in initiated R&D approximately functions XXX certain approximately our as based from restructuring to and the of XXX

with $XXX approximately million Approximately plan We $XXX $XX expenditures million employees. As this anticipate of $XX approximately the the restructuring this will incur of associated and to million benefits will between in million end million in termination of costs, XXXX of million a form consist one-time the of total to to the we $XX transaction expect which million restructuring in XXXX. with affected a be million plan in in we balance and first one-time to $XX $XX about restructuring expenses $XX cash restructuring to charges cost. about recorded result quarter recorded the by capital related anticipate plan, of

the Moving guidance on non-GAAP for XXXX. to

although be pandemic we While XXXX, business mix. gradual and pre-pandemic the we normalized assume duration levels pleased impact about activity a to performance the overall are COVID-XX and return we with the to in continue of uncertain

are a sales We group, estimate flat XX% in to X.X% the neutral growth to XXXX. revenue We life growth science guiding versus XXXX and COVID-related revenue diagnostics as the group in expected XXXX revenue X%. about for be XX% year-over-year between to half about currency projected we to be about is be

margin non-GAAP year between continue projected be $XXX assume margin fluctuations an million to and year the $XXX CapEx million And call XX.X%. We year year full XX.X% full between now, rate non-GAAP to for comments. I'll will Norman experience Full although XX% and XX%. growth revenue year. we non-GAAP operating a few projected overall We be the and and of media tax the is process full and we is that quarterly turn estimate to for XX.X% between margin about between gross XX% adjusted to EBITDA for XX%. estimate double-digit and full

Norman Schwartz

books. to don't Ilan. that Thanks, great. the one add. have a companies I think would is that XXXX say do history really lot I for Okay, certainly

of in to of where sight I this effort was myriad lose and we're and year not last certainly to it an challenges think in manage as the term. the on alluded back headed out beginning, the longer year think to I all a As Andy

expected that a as is I question think well, the feel will revenues still moderate I XXXX. pointed Ilan, as there pandemic COVID-related the big when out, But to are under do control. come in of

allow we'll our over So the Bio-Rad. interest in we to work next in continued your few on core to initiatives make to and the progress meantime, certainly continue years us appreciate

you. thank So

Ilan Daskal

Thank to now questions. the take open we your you, line Operator, Norman. will

Operator

[Operator from Wells Leonard line comes the of Instructions] question Fargo. Our of Dan first

Dan Leonard

you settles? the question, the part first you announcement? to bang frame my the it path how or journey lifts ongoing coming restructuring the And What's would an target margin this with So is you the dust big efforts, of achieve the savings can costs is hope XXXX leverage? of on help when annual to characterize the fixed balance from the

Ilan Daskal

thanks have will Dan, question. in and communicated of Dan, end This we start Andy probably go December. through will chime our speaking, the Generally trajectory part years of restructuring in, that for I next will the three it's year. back

baked of it's not a complete It's I Andy, is it. our And are all the the everything So mean, to phases order years next initiative this throughout kind big different in there know, years. projections necessarily again, years three in, that provided goals. you we XXXX plan. don't I two two kind would basically, take of achieve in it have… And, a to bang. one if to

Andy Last

other I don't course, things to material but I is to anything working material have well, mean, as restructuring. that. it and continually, of major add a on we're

Dan Leonard

the of a that seems standpoint seem your further mix discordant weakening quarter-on-quarter, you any of it standpoint with the on customers would helpful? growth performance a you course, what improve you then, so what some are rate, product or of bit color what of were would in Okay. does And that? saying, segment, from on elaborate market your follow-up, either like some clinical think the could could be then, regional saying, in and just my the drivers elaborate that it are And organic

Ilan Daskal

Sure. Dara, one? do you want to take that

Dara Wright

Sure.

a is story it and region. product really, mix So, of

big performance. XX% restrictions in a at in a impact to we we're related So surgeries. real is saw elective the pretty material on macro pre-COVID XX% in dynamic to very QX North we're And up The pre-COVID that level, step to had about and Europe. And America, close lockdowns levels.

bit program real well, shift diabetes saw a of to So I then kind would little program getting in as Europe of China as bit routine area an still in of that say we story from the a a business. blood disease there typing, to COVID-related, is that typical kind wellness levels. is moderated infectious pre-COVID back And a

kind takes takes with within So puts it spot things of bright in lines. the being different direction certainly regionally, there. continue But, puts the right kind of and to product and move North America

Operator

question comes the of Our Brandon of next Couillard line Jefferies. from

Brandon Couillard

top-line we as that year? understand back phasing the organic lapping far of anticipate moving roll-off One, of in with to and given you're color pretty And comps of some can come variables some upside COVID as terms in encouraging, that through outlook year? us mostly you're kind you terms the half the these help downside thinking the you the in recovery of should 'XX the growth Any in of of diagnostics, tailwinds. of and of Do the help us the the about? that sort of overall

Norman Schwartz

I'll around Brandon, color bit and put try more Yes, that. a

obviously, on get as after back our talked about normal trend yes, step clinical anticipated a not indicated. So sales to in Core the continuing consumption we back Dara half but until COVID full we diagnostics, view. second that the recovery big

core got effects, life that franchises research first COVID COVID last of some and progresses. in guided research, have the in expect that the as we year first year recovery science clinical a majority of of still recovery good we're half and The for in products sales the diagnostics to roughly the year. be half to Below half the

Brandon Couillard

talk you your your base? installed PCR In global basis if new a to your monthly big all, approximately us capacity how COVID in about extent any what and remind you on at those tests? have tests, contribution of baked incremental from PCR manufacturing terms Can is

Norman Schwartz

on Annette, comment then So, might I'm to I like would add to ask she going and that.

Annette Tumolo

in think demand meet consumables. We products. in manufactured place customer a pretty demand now our PCR Sure. right a meet of spent our scaling I across lot and we're both all platforms years to to And other good for regions of the

us news good that's So our customers. for and

decade. are XXXXs We XXXXs have qPCR lot of and this well Brandon. a there certainly and awful there been sold we year, products for out over selling XXXXs products And an and

So, to those you scale a we're have need with we sure might approach second new imagine, they as test certainly, need reliable for sources. or customers options, be going making as to may our

Norman Schwartz

Thanks to that. we're And within about in numbers, say, I'd the thinking contribution COVID-related modest our since know Brandon a baked late. sales, we we've

strategy to install is source Our generally base. the second

modest And contribution we year. look at as so, it's our a

Brandon Couillard

that hard any help are into Got you. one Maybe a follow up specifically? for the test sense And up you've other approved or that you, you Annette, a diagnostics overall enough development mean, on maybe platform us setting? or the business take is that DD PCR of growing in pushing business, can including, accelerate you give fast I kits how ex-COVID? in got on FDA just could

Annette Tumolo

That's a question. great

in that markets So strongly. at to our you talked release still research we The market anticipate are production growing that, from strongly. continue double-digit investing future. strong are about that significantly, probably the is into imagine know biopharma, The product we we diagnostics discovery And area. think every certainly, I growth, in we that can And platforms. pretty much growing earnings with partitioning quite moving and you

So I for stay there. what's come tuned think, to

Brandon Couillard

your still stake? that's the of opposed Board to Board monetize an spin? low. as pretty sense call now XX quarter as considering to or on And alternatives Is there the being for valuation give any If stake Norman. as that? not? urgency to Is more potentially of you. you is in take, any at on The one terms far level implied Maybe update investment about free XX% million out not, why strategic what in value, address your any and to equity Okay. share as strategies third the Thank deemed the your of such worth stock tax entity stripping about planning that Sartorius refer

Norman Schwartz

about level, tax certainly free we at haven't So the a talked spin. Board

seven years As past, to we've very on go investment to see we trust. continued Obviously, to do eight think or continue said, and got a well. the the in that they I we long-term as

are kind And so that's we where of today.

always to As something a position. considered along, to comes you strategic is there liquidate we've strategic But, that if more possibility investment. obviously, know, the be

Ilan Daskal

the And question investment. Brandon, regarding about the

We probably few work resolve as we continue quarters it. item. will more us the in take to a resolve this mentioned it to quarter, last to And for

Operator

Thank you.

Our comes Patrick next Citi. Donnelly of question of line from the

Patrick Donnelly

there. bit topic your past on wanting some How guys and got if with happy the past opportunities you, can the larger. I'm wrong, just I deals you sounds and about on there correct we've it hear just been maybe capital deployment like quarters had softening a perspective the meetings guess that on kind now Sartorius, are do out little It where of side? and Norman, kind to with the me And Sartorius landscape. willingness in talk is, maybe that felt you kind we feeling there's like M&A you we'll of yes, to curious of be on something to with to maybe larger stay address were

Norman Schwartz

Yes.

add products for like to So to continue those of peers, I think do and look to many we our our technologies portfolio.

as of interested transformational. recently, the something of But and even you idea and as know opportunities especially between. larger doing more course, opportunities far maybe our larger and we've But, we continue these that way. few to are come think said I in pursue we're transformational the

Patrick Donnelly

of unfortunately. going the to it's then, anywhere, end was out. for At prepared the Norman on remarks maybe Certainly there, COVID it, appreciate of 'XX. the time, the expectations be call The this uncertain for how touched you half thing on And play okay. at kind very what same will of the whole Understood, 'XX. in doesn't just seem Ilan, it pandemic

you in just you COVID. obviously, talk XQ I here, guess, came layered in can about So on conservatism were above guys expecting the well what

the of big subsides talk So guess pacing as throughout to there? a then, projecting And understanding guys hopefully just tail that full back maybe you the half in I pandemic, out year, the kind off want planned you number. the to how just get

Ilan Daskal

half of we right. the we Patrick. start into Thank improvement and the will kind you, Generally And what believe second year we from, tailwind COVID project account diagnostics or gradual of I sales the took mean, see the normalize. tail-off. will we in speaking, and will the Sure. to related what you're that

shape way So, think the from kind to But half half we calendarizing, vaccines about way we cetera, about et to will how everything half of it. we'll And you first if see the way the the that's the second that hopefully, the would second think more have the will our benefit COVID-related in projection, up. normalize.

Patrick Donnelly

market opportunity, is it one like Annette, momentum And sense wastewater Do guys term? you picking uptake and certainly just near then, better of the be saw feels And kind any could on sure. this more maybe about for in how getting in near of you XQ have up the attention, term? you just little then talk the Yes, there. in here is expectations big the a for then

Annette Tumolo

obviously, brand emerging. and new Sure. is This market, developing kind and of rapidly

and that several the American best right five are think most demand but our application try certainly working variants probably -- next North We're four now, kind over of it to surveillance. launch that we up to years get somewhere we U.S. to we'll an are support to that and the attention will as that is of at estimates closely million, the outside to I the $XXX kit U.S.-based, surveillance the We're utility can. to looking about add years. of

market that at with we're a So, help. can making sure good run products supply will we that taking the

Patrick Donnelly

appreciate housekeeping, just is one you the saying benefit. then, And for PCR Andy, great. Okay, a you, a test modest quick

the $XX a what means? questions terms in about think million dollar would help in terms of we modest or Should investor couple ballpark Just really just any $XX million, amount? of got

Andy Last

Yes.

should in be you think roughly that range. I

our placements. As predominantly by upside instrument I the driven said, was

into we diagnostics molecular aspiration recognized, those we've coming segment, products. be would late this on and we went so, got is well-reasoned And

Operator

from Meehan Instructions] line the comes [Operator question Nephron next Our Research. Jack of of

Jack Meehan

hoping of could on bit COVID in a commentary, anything call was could bioprocessing you I a maybe demand that? you you little Was give help vaccines terms strong [indiscernible] more to like from business the sound there on ended color note. out the contribute pretty and

Ilan Daskal

you want that take one? Annette, to

Annette Tumolo

some markets are it's that is and overall And developers business products, of certainly, the Sure. the now, and development the because quarter-over-quarter are been primarily, there with in We fluctuations biologic all delivering development this we production. our this Well, that customers address of growth. double-digit vaccine area. these strong a has vaccine drug already whilst

in vaccine So, from of can't business was say is because strong that although I result we're The those and growing. primarily all uptake that there accounts. manufacturers, the

Jack Meehan

litigation And on basis? then, XXXX the the on period forward going recognized kind for award in this to What that you about And through XXXX through are you that XXXX? how of a XXXX? covered quarter account go the

Annette Tumolo

don't we how still treat I say, advance, going that perhaps to something has was really add really, and litigation going open about just it. to but discuss we Ilan we're in we have to

Ilan Daskal

Yes, you're absolutely right.

on. So anything the we still anticipate to additional, litigation is book so long don't

Jack Meehan

in from know, when terms maybe can on talked you've any new cell. Celsee wondering just single you Got Annette, the work updates drivers laid you of of the And doing if is out about and an it. one Andy update expect there. products or year? growth we I this targets, some give the of was you're us I

Annette Tumolo

Sure. to had It's year was startup. acquire acquisition. haven't a we certainly, unusual an still time early, it yet even a And post

analysis investing, of going those I think, really single out start our goal significantly that of insights. put And acquisition. year, seeing biological products, roll door. the compelling we part cell in Celsee We area provide to for that think best-in-class our are some towards this in the tools latter is to you're And

Jack Meehan

booking in lifetime terms be cleanup. that be are entirely Great. one And science maybe the you just on to testing just you test XXXX? or of Can diagnostics COVID the the only in reported tailwinds kits in confirm side going

Andy Last

predominantly there's get any test very, antigen but science on We've based very side small. become the some If diagnostic on, serology got sales, life the up material based. got we've mean, contributors. they'll reported if is pick still clinical I it's in they

Operator

question Jefferies. Couillard of Next up Brandon a is follow from

Brandon Couillard

up In tick? terms terms part fourth the Ilan was quarter was big benefit in of sequential Annette, PCR instrumentation a the of or COVID all PCR of of the maybe in and that DD

Annette Tumolo

were the we our up was some growth out with our manufacturing Droplet for wastewater platforms, by scale organic of fourth the mostly lot. getting a that business. most And Certainly, of of in kind the qPCR had all Digital of quarter, completed it associated QX, really products. from there helps of so but upside PCR was we Brandon

Brandon Couillard

have rates FX favorably Ilan moved then, And obviously recently. Okay. more

'XX, have maybe what to of You the then, top-line sense a the accretive year-over-year should and be expansion? to add general a currency in how that sense of, margin might

Ilan Daskal

probably a dollar great the It continue Yes, Brandon. the was question, it's I to XXXX, you will projection when with weaken. think about X% so for about mean, that XXXX,

is on out. contribute as some, don't have top mean to still the through net-net, manufacturing. obviously line. it for fall I negative here the expenses, there to So of specific but, call contributor. impact top-line, I is on There obviously, the the well sure, as a operating does number kind on some is, But it

Brandon Couillard

of me, host in half the for year? you Analyst to event of are one Day type planning first the some Last still

Ilan Daskal

hopefully, to vaccines great this plan the right do sometime normalize, to will be of Yes, We host we would I again, kind opportunity. timing. a it have year. later with everything find mean, so that and

Operator

Thank Daskal over Ilan Sir? you. remarks. call for turn At this time, I'd closing back the to like to

Ilan Daskal

you. Thank

Okay.

So the Bio-Rad we appreciate in look you, and today you everyone. to we forward soon. Thank joining your interest connecting call and

Operator

this conference Ladies Thank participating. today's and gentlemen, concludes you call. for

may now disconnect. You

Bio-Rad Laboratories (BIO) 12 Feb 212020 Q4 Earnings call transcript