BIO - Earnings call transcript Q2 2024 | Bio-Rad Laboratories, Inc.

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Operator

Good day, everyone, and welcome to today's Bio-Rad Second Quarter 2024 Earnings Results Conference Call and Webcast. [Operator Instructions]. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]. Please note this call is being recorded. Instructions]. [Operator my Relations, the Edward now Head over to Investor of Chung. pleasure is conference turn to It

Yong Chung

President Thanks, Lakkaraju, operator. XXXX Executive Andy Good trends are joining Operating provide us. Today, Norman afternoon, Chief update Vice for everyone, Executive and will an Officer. and and Chief the Officer; the President thank Bio-Rad. With review Schwartz, me Chief and second call key our Financial Last, quarter on financial Vice on and we results Roop business you today for Officer; Executive

we our uncertainties. events that are statements and and forward-looking are that management's Before begin to performance review, remind risks future These plans we statements based subject I'd to everyone on goals, expectations, like financial matters. making our assumptions future will and and be other of about expectations

actual differ may goals from plans, these results Our and expectations. materially

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

I'll results share, our in are are review will remarks Norman Schwartz. to per references financials, the financial contained release. net of these over principles. turn reconciliation that, Finally, the call the income generally earnings GAAP diluted our measures to include including that accepted under comparable not and should to defined non-GAAP our accounting today which Investors With measures CEO, non-GAAP earnings

Norman Schwartz

and with ahead challenging cost with line mix, we productivity have joining the improved despite I us margins overall signs biotech would have say positive call environment, that on seen of product today. say Ed. did a guess Thanks, the by would quarter with we revenue expectations, appreciate driven actually I overall, a we while good solid in funding. your and Again, some management. I market expectations gains

biopharma constraints We spending in these globally. biotech, are continuing

to market pace we predicted. prudent will updated outlook what XXXX than our XXXX guidance. do revise modest financial our reflect full think as think to cover greater As of it's originally better recovery detail review more such, we I a in year this financial Roop was

leadership progress During the establishing new we to continue make the team. quarter,

new closely I You've met of key gotten also he would priorities align on have have our up ground Roop, our heads science of with CFO, to a Last, Andy say, and and already running as to CEO, sense speed, diagnostics. clinical life hit are comes new working and the initiatives. his

on finalist Chief progress search have on Operating do Lastly, with in identified you weeks. front new share hope an and here, good have for a update we this Officer coming our several made candidates. the We to

recently are contribute really which more our expansion. continuing to our in process efforts margin We starting path, with core are corporate improvements, and chain supply transformation to

build on when see expect business we and here. quarters, We this progress anticipate we'll our further to license future rebounds in benefit

And Board make having opportunistic and front, capital the us just On $XX during additional million week, July. to month the forward. an continued $XXX repurchases the deployment authorized during with additional positions stock on be Bio-Rad further successful this back share bought $XXX with an million, QX. repurchases of continue that, which to to the going million we've

PCR their clinical to biopharma, be products our area growth future but market enhance for also globally leading intact. for building like all, we to and cell strategy in growth really important to especially supporting digital products diagnostics In all in for a the molecular positions us. continue biology, position a very focus and I segments. And in in we A to continue chromatography PCR and much Life the process in our academic around platforms, diagnostics, continue in So for other market. both the maintain we I'd to very have of new invest on while a we in and guess reiterate new Science, that development to invest our view core digital company positions leadership focus

are biopharma positioned we such, this both in dynamic we long-term to life drive through believe in as academic the markets period. move growth well As we science and

turn So maybe Andy? now provide over an to I'll global the to call on operations. Andy update

Andrew Last

you Good Thank you, us. Norman. thank joining afternoon, and all for

the market of year in alongside biopharma segments macroeconomic same we continuation several improved and Second quarters diagnostic a our the experienced environment market trends generally of China, platforms. the a in quarter biotech with have for clinical reflected and

in the quarter, when portfolio in business sequentially prior compared gains business was chain supply steady all in year-over-year. we to the diagnostics show the continued both regions Growth delivering our immunohematology in and experienced year. against solid clinical constraints with performance growth across Our broad-based solid

look our growth within toward diagnostics this we of half a second normalized As clinical are we anticipating continuation the year, of business.

year-over-year, While in demand reflecting ongoing in it low declined digit with and Science biopharma and in our was sales line biotech double China. group expectations, Life

grew across markets. Similar for second sequentially, revenue year, process chromatography our year-over-year core and digits mid-single prior chromatography decline, to However, when ongoing the the life Science Group mid-single sales, the in Life the sequentially a science process biopharma both improved excluding industry. digits, quarter residence destocking reflecting and trend posted academic

a customers, to looking return and ordering to return for starting products to for of confident up to years of due is outlook very More heavily XXXX see the customers a key are in importance we a product these the pattern specific importantly therapeutics. Outside several stopped long-term large We now critical remain growth. this during the for our of for are the normalized to area. this key us, prior who result

to in chromatography, spending, Excluding The reagent year prior largely expectations. flat, and compared Life sequentially in whereas year-over-year. with declining line concentrated biopharma continued sales reflecting and our sales both our low to and stabilize, were were consumable Science business double declines again core primarily process constrained digit instrument

our [ cell sample Imaging ChemiDoc System, ] of new X [indiscernible] and During platforms, ] that we launched is interest the strong single the solution getting phase early second quarter, important which cost-effective science life in introduction. prep the is to customers product new [

the reagents year-over-year in [ the tough year However, of excluding technology year, the a supply compare QX to due in onetime revenue grew orders prior constrained that prior Digital challenge and positive PCR consumables for franchise modest a ] despite back created reduction against digits. On funding payment impacts more PCR Droplet mid-single XXX. QX, for from Our included receipt license single change PCR mainly a prior was low of a note, onetime periods DD DD declined the environment. digits and soft

gene and recently platform win-loss kits to assay strong markets. seeing current our DD targeted cell PCR we continue strong therapy for And our our in interest and launched digital are in ratios maintain We segments. the at oncology market PCR

introduction focused. QX of us [ continue to continued been to will to low-end the have allow we fourth which target ] Importantly, others quarter primarily segment end the a where

trend we cutting-edge complements and purchase cell segment a and library. This technology X development, the novel for macroeconomic a in were of continuing to on our we the into phage next high market markets biopharma is the of to utilizing enables novel and we that for years. Reflecting the addition, completion biotech entered X into a pleased for quarter. anticipate conditions, the positive core this see current receptors introducing antibodies agreement platform our In assuming raises and platform second capital successful high-growth, droplet market and display T recently throughput discovery high-value

see market yet Life earlier, into appear although we the translate towards in As long remain period conservative improvement academic softening segment, customers the outlook deployment. Likewise, some XXXX. of business, of hopeful we soft into on end slight we support. Norman the orders have to the alluded year of funding research funding the in after seeing China as to global are to a Science remain and this remain improved In capital strong conditions for environment the of a

bag European addition the a in for countries. In the EU by with and the U.K., remain outlooks key offset improvements year, Germany, NIH lower more lower-than-anticipated in France modest budget to markets in other funding funding mixed slightly

research Korean part research constrained, a in challenging as life remains in the China Japan spending economy, funding on science funding the and environment of reduction. Asia, while soft government continues, remains deficit reflecting shrinking For

With to now recovery markets of half remain factors in back the we timing magnitude science the and respect improvements life year. and the mind, measured these the cautious in more of with on in

recovery and clinical I market for initiatives that productivity to expansion. remains pass continue growth Life in business eventual softer steady you now to toward as have the focus to and expect that normalized to our will look results. XXXX. Operationally, we top review for poised you, believe Roop business, diagnostics further we provided for the Bio-Rad And we We financial cost offsets continue Thank on our our margin Science line.

Roop Lakkaraju

X.X% were sales QX basis with start the currency and in represents X.X%. approximately results. headwind I'd on of of million good the Net a decline included $XXX $XXX XXXX afternoon, to Thank basis, second a you, decline million, reportable Andy, and a year-over-year 'XX. On a revenue was X% quarter currency-neutral review which like versus

on of this Science approximately result Life science basis. The decline areas. to $XXX basis million a and which of geographic As million offset of Group Andy was a $XXX currency-neutral mentioned, is group. Sales markets, continued of most decrease reported of year-over-year growth ongoing Clinical impacted with a and weakness the 'XX, life compared a XX.X% by end in in XX.X% the somewhat the key QX Diagnostics were on and decline

a quarter-to-quarter, increase primarily across core currency-neutral increased revenue On Group in is revenue regions. of Life of demand basis, on currency-neutral basis. the currency-neutral Group growth sales, was controls basis $XXX geographic on which Clinical the 'XX, all XX.X% group Diagnostics chromatography for fluctuate Excluding of QX were typing Diagnostics and a basis. Sales blood to reported of by process the year-over-year for X.X% million a driven X decreased on which Diagnostics a posted group Science $XXX Clinical X.X% million compared can quality Growth products. and an

driven development partially logistics sales GAAP as driven gross materials. Note in the and company, product was prices The improvement for XX.X% product Expenses or of $XXX logistics. that QX constrained second of primarily control was the in the gross R&D or due $XX is costs. QX SG&A XX.X% million margin The in margin compared to in by proactive X.X% The million, million decrease of $XX offset was compared primarily income sales in lower 'XX. X.X% QX of QX decrease by material of $XXX dollars restructuring of to initiatives spending. Research costs or strategic reported 'XX. operating partially restructuring of controls, driven increase the was or by the for quarter dollars lower of and million volume primarily primarily expense, For XX.X% discretionary product mix was initiatives, 'XX. million expense control of were cost our $XX to lower QX due quarter in in XX.X% in expense to mix, or mix lower million approximately was cost sales by compared to sales by of costs, to 'XX continued and $XXX management XX.X% employee-related XX.X% and 'XX. QX cost compared Higher higher expense lower and offset sales expense XX% sales and of income second was and or or operating sales.

share $X consistent quarter, resulted other ago about market income resulted of the in billion shares, with other interest in was in [ in per period. The security or QX change rate $XX.XX loss The reported in of and XX.X% 'XX $X.X to a million year compared substantially net billion net million of Sartorius the to $X.X the of second in of value equity a ] or $X XX.X%, and billion $X.X holdings, of During which quarter rate largely for ownership diluted about loss share fair AG prior are year. effective per loss diluted the compared loss tax the net the $XX.XX to loss income 'XX. the of of drove related

results. Non-GAAP operating our income and items exclude financial impact are reconciliation atypical in release. both certain non-GAAP which press and that the margins and detailed gross measures, to the other table Moving unique in

lower SG&A as dollar of XX.X% primarily lower but various was a management QX XX.X% was in initiatives of slightly a we've 'XX. Second percentage quarter was year-over-year basis, QX revenue on spend higher compared margin implemented. Non-GAAP expense 'XX, gross sales, non-GAAP due to to reflecting

second flat a as of in versus of XXXX. SG&A of up in in was XX.X% the percentage R&D quarter a sales was is as QX which QX X.X%, Specifically the XX% of XX.X% second to quarter 'XX, 'XX. Non-GAAP percent

Second was quarter margin non-GAAP operating XX.X%.

for XX.X% second points gross quarter basis gross rate operating non-GAAP reported margin compared 'XX management by same The the higher non-GAAP was XX.X%, XX.X% initiatives. The earnings. of driven margin was a Our in has XXX for mix of by of of as expanded proactive driven the tax XXXX margin geographical rate the the period operating from by improvement effective QX and to cost expense 'XX. in non-GAAP 'XX in

income net or million per $X.XX to was diluted share million compared the second QX of non-GAAP XXXX Finally, $XX $XX quarter earnings earnings of in for 'XX. or per diluted share

to I'm sorry, $XXX end are $XXX cash our raw to Total at strategic XXXX. The QX on of to QX that end end $X.XX the to the sheet. source first increase $X.XX and of million of critical as short-term due to chain. purchases to billion, at balance at quarter. materials compared million QX Moving the of at is end the the was XXXX of investments billion compared -- difficult was the the supply Inventory

'XX. was million, quarter expenditures of Net $XX amortization approximately For XXXX of million. the quarter approximately same depreciation second $XX the of QX and million cash were and was second capital activities net from for operating as the $XX XXXX, generated

Second million, $XXX approximately was $XXX quarter flow EBITDA QX XXXX. or approximately quarter compares and or of XXXX. XX.X% in to for million sales of million cash which of the XXXX million second of quarter of free in Adjusted $XX XXXX XX.X% the was sales was of second $XX

our quarter, million of stock average repurchased the about per During an of second share. we about price shares XXX,XXX purchase for $XXX at $XXX

repurchased average we July an per at million During an $XXX of XXXX, about purchase $XX additional price share.

share we as that today we buybacks. our our have million existing repurchase $XXX million to repurchases authorized announced with program. in increase And available also approximately for be in Board total, We continue opportunistic share to $XXX a approach the now

to on the non-GAAP guidance. Moving

customer As referenced yet seen improved is commentary, for orders. funding in have Andy's biotech into market fully end we that the translate to

of our bioprocessing, recovery, and pace the of more expectations of for year. have destock in group back biopharma Life the much outlook tempered we Science the customer the half Given moderated the of a pace

normalized We to continue healthy expect XXXX. the Clinical Diagnostics for growth group in

X.X% change clinical offset in now XXXX levels and demand X.X% revenue to higher to revenue The year-over-year chromatography currency-neutral sales. of slower-than-expected the decline versus is diagnostic of recovery to of process we Taken by guidance. point estimate because lower biopharma prior X% our together, growth basis X% for in our XXX outlook

growth we represents For the half. XXXX. year-over-year second in expect in second about X% a versus half year, revenue XXXX about over the year-over-year X% X.X% of first the half decline This currency-neutral of the growth first half revenue of the

For to currency-neutral Science process revenue of we growth year-over-year year for revenue first expect over low group, XX% is chromatography XXXX. related expect the The Sciences double-digit about year business for and the between group, second Life full the decline XX% the expected X%. In Group Life be half. half this excluding sales decline, we sales,

half XX% of and are mix previously, group, versus reflecting implemented. a XXXX. improvements now second year XX.X% for be guiding and currency-neutral of the to growth the for product projected between revenue are of represents This X.X% and For we and first half. Full revenue XX% cost X% Diagnostics better between growth the now over group combination non-GAAP the to X% the margins Diagnostics for gross be year XX.X% about

guidance. updated our higher Our gross is than outlook margin prior

expenses. now However, expect of of between XX% XX% below XX.X% guidance. cost in to in manage adjusted under non-GAAP and EBITDA versus second between XX% of absorption full in Full reflecting XX% margin year to XX.X% previously half XX% in to which carefully guidance, versus first level the and our is the XX.X% continue level of higher the expected to to operating while lower a achieved our be than XXXX half and revenue prior fixed lower will margin the half, we in year forecasted. We we a XX% drive the prior leverage be the of expected costs second year because operating

latest at mentioned to acquisition the R&D quarter of and of XXXX. questions. above. onetime expect Andy your to in-process technology take We'll close That likely or are we prepared will third year the in margin operating profile $XX call anticipating we've line in full the certain laid Finally, to that be Operator? end assets This charge by the a the open approximately the incremental now out concludes earlier million our the of remarks.

Operator

from Citi. we with And take will Donnelly question Instructions]. Patrick [Operator our first

Patrick Donnelly

Maybe bit pieces of then the through you side. strength the nice for we talk And a start the that year. the performance here. down there. margin XQ, just Maybe a the in on, expectation just to year on half margin and cut XQ? then, out moving obviously, our talk what as in work pretty but Obviously, touched you way just XQ through guess, just again, second obviously, roof, I Can drove the about,

Roop Lakkaraju

certainly, Yes, to talk you. Patrick, to good

all, remember, so second were margin gross the overall based is margin we gross very on to stronger the sustained start, on of So part we the just cost where based managing. guide from initiatives on that half the strength really even performance we mix. associated efficiency originally from and guided. QX gross is are the than other we've up margin, things costs the proactively a kind logistics to specifically of maybe with -- like expect the our it in year, just and is we I first perspective had what But think been and guide improvements in of improvements taking of

through more factories. anticipate at factories, said, second we and expect beyond. our the helped do So under absorption the that bit to we timing what and we QX. And look flow at of expect in saw revenue can second sustain the that We and these those we the are to and half as so the into year the flow through really a things be we that With variable, quarter. as in of initiatives, magnitude looked kind it the

is for what outlook a the margin range giving kind bit the second in half. margin year. of been up taking so the And the overall that while still in conservative of we've

Patrick Donnelly

just margins talk maybe Just the Yes. And through well? those as -- with then and op SG&A line? the

Roop Lakkaraju

Yes, when the hold and I course. management just at we're op of margins, cost that that's driving efficiencies, throughout well. on we've the different proactive taken of look as OpEx, taking a actions productivity areas

As we yet margin cost as the sales which leverage the strong the that is the structure gross though therefore, improving. from the affects the we've just cost OpEx, down on And margins op where -- part headwind are then originally leverage even expected. coming fact isn't of got

simply very year. terms we've through that of management that's been proactive head flow and So count in through, the

I operating in in an cost is very think one little looked we thing at keep from that to of the bit been in to year mind prudent it we half. things a We'll execution management. standpoint, second expense of uptick drive we've of management just of and in head second count how projects some the on other the see half and the because want

Patrick Donnelly

just different little maybe there back bit a just out I then just lingering just talk what [ year. But year. this you're the to decline And it card of recovery of any stocking seems on some on the it just geographies? seeing Life there? a that in and about concentrated process you're is for like -- recovery piece. few again, pull but and to kind what need ] see you it's the a of and like, to Can customers, helpful. Science Okay. believe that's It part big obviously, like know That's of the guys for maybe here chrome. seems it like, seems obviously, seems a visibility taking sort It you

Andrew Last

the actually of here improving number are I bag. I'll We're first low in and that one. Patrick, take mixed a engaged story positives. Andy. we're Yes, projects a There Yes, improvement. is some in double-digit it's the half look, think, that seeing

early of to of the a line. But in acute been their is positive a small a that full phase contributors getting the in manufacturing facilities much multiple destocking that revenue just are overall of magnitude got pullback guidance QX. those understanding not It's on it's kind customers all go first of very that's year. our the chromatography of So story same projects trend material have line process as sources on of of very sight to struggle And small more handful inventory. they've and through. large The

in recovery we're the for and so view just process see we chrome to our of in 'XX. on being prudent And year, this expect very rest

Roop Lakkaraju

piece. spoke Patrick, build is this to the it's one that Maybe just based in Andy And is on various on Roop. GEO customers of, part geos. the

concentrated one not it's in So geo. any

Patrick Donnelly

Okay. And then quick one. maybe just last one

investors. market, side, on digital It that helpful. side? anything Just seeing just the demand on obviously, for would different PCR Are be competitively focus always a and both in the you

Andrew Last

any been already we're shift real that think don't competitively we've seeing. I seeing not

we the were saw digital PCR Within mix factor actually life the sequentially, major quarter-to-quarter, of Consumables up pretty science well. And again. was we overall, held and improvement. instrumentation --

broadly. the It's of year, of overcome In in script supply really of the the digital chain fact, in of we some the QX of a challenges to saw quarter-to-quarter and the in onetime managed QX it's tough PCR, call-out prior -- the improvement last compare year. of fee that pretty we actually case kind in licensing

as and situation, focused feel win the the maintaining the look, with digital for in rates PCR And we're very for about still. our outlook in. long-term competitive positive segments we So

Roop Lakkaraju

we half. in DD to this Yes. second the first And strength half I over the I would think see add, PCR Roop. is are -- going just

So as pleased coming think when we it's kind about of that, back. with we're

Operator

next Dan Leonard will take question we with UBS. our from And

Daniel Leonard

trying At you've there be areas you're operating yet have on? a improvement think do you're on don't the areas the further conservative with high you or guidance, to framed any current are where Or you earning level, speculating that appropriately? visibility where environment

Roop Lakkaraju

start. Dan, Maybe Roop. I'll is this

life we're headwind, position that in really -- a therapeutics. framed the as In terms therapeutics end that, chrome think group, with spectrum, is you very the these I area strong Andy of we that is across if our spoke the support. Those market-leading seeing areas. terms and up, seeing of the Obviously, well And they customers greatest are different will. it process in the science what of terms from we're

a be that that's very destocking that feel of we It's just good so occurring can't there. about displaced. matter ed And

some margin seeing signals As about DD and to continue. talked has year, growth The we're have PCR, as Diagnostics been just expect one the is predict that that so to grow. Clinical positivity which a normalized mix throughout of we area a maybe but being bit It's it more rate far. exactly. is expect we part contributor to is mix and the positive hard our conservative, little framed, positive we this I to

mindful and that, we're as haven't mentioned, I stimulus an that. And so maybe think variable that's China beyond the will touched been questions. And of then impact. interesting, The one not in that's on much I new under-absorption, an we the and sure But introduced. question. China but It's is have the of I'm open that it

again mindful we're of So that.

very that's think maybe and the variable that in I one trying the to well. expect what is recognizing of out to especially in a the we're of as second view in others for the And for just couple are not markets in. most half, be folks So we're playing lay probably China dynamic prudent us still our but to areas

Daniel Leonard

Thank for elaborating you Understood. on those assumptions. all

visibility years a Just effort Bio-Rad I single high follow-up. a know R&D very cell at the been a has for product now. couple quick of

or it launched to go-to-market you give on You we could should Hopeful about think uptake? framing how your June. -- in color any that think strategy that

Andrew Last

for the consistent growth think a look, solution, market-leading the product long-term a think the which in market. the Dan, workflow. question. value Yes. I we're where And opportunity for the value performance single and is cell for better Thanks proposition think it's to we offering sizable better equal is It's solid. we And Andy. set,

continue We it grow. to expect to

by put I We And think think on that's for acquisition end that. well-positioned we've very the believe the to of kind of [ with best kind value market. workflow product is Illumina more going platforms. I the ] the of to Fluent all obvious a a of just probably testament got emphasis

got and specialist early terms In in out credibility to introduction performance establish of labs kind and months key a sensors. focus with core there our product of we've go-to-market, of

value that of do revenue second about year. our would as and thinking platform about the So material we're that's anticipate kind for the it's year. it this approaching we'll change year. our We the building work we're don't half next But outlook way contribution in this

Operator

next will question take Peterson Jefferies. our Tycho And from we with

Tycho Peterson

Maybe the in bit of at Sciences case? out chrome, be you peers and just the your about flat. down still year. Life Most you maybe you're why X% Can of that little kind look talk backing are might a

Andrew Last

Yes.

playing And think the since COVID element with others mix [ little massive beneficiary we've disadvantage that's got ] with Tycho, our recovery the I was of and still and our here, [ Maybe in PCR a bit QPCR on into uplift of business an also ] in the biopharma seeing relative digital it we're amongst a QPCR component. period. some softness instrumentation.

this QX mix say bit to got call was which really out, I piece -- the So we holding a little supply should we're We relative the doing recovery that I'd And reagent compare year the I And better think license bit QX. that other reagents were are us we've would that's year, actually instrumentation against pretty -- we up others. fee. where overall. mix the not other starting forget depending on market is last a onetime folks last the -- of fair a of actually back end for to tough pull by us. We by during QX the had chain despite on

So focus bit a as to other well. elevated pass I'll compare was

Tycho Peterson

why not buyback a question, billion buying at here? deployment $X got Capital do peers bigger XXx earnings. Okay. You've

just Xx you the do added million You Why don't more [indiscernible]? $XXX to the something than guys are meaningful [indiscernible].

Roop Lakkaraju

just authorization, that that's sheets. guess, mean, -- I sheets those balance balance we're large I the that's you and just Well, incremental are mindful. referenced, Tycho,

which through that did keep and we through said, to to So the the QX mind. With period $XXX that's close hadn't in one we thing done. blackout million period,

our consider where us. incremental it's and a our our Board strong to think is, cash. speak million balance The in And $XXX we're the reasonable authorization, you think I actions that's that I undervalued. when perspective our sheet from message a So of very percentage

Tycho Peterson

of And are you M&A? other the over prioritizing side kind that that's I it. to mean of committing

saying too multiples Your peers still high. are are

Roop Lakkaraju

to intrinsic are, technical of like add. it Prioritization, that's where part more Yes. repurchase technical of I'll if listen, start and I maybe share the the and and you'd of answer. values Norman, aspect is think, a

same say they And the mentioned, wouldn't our road at product so the as and have technologies necessarily strategy. have and map we're be and the M&A appropriate to I valuations time, to mindful prioritizing, you have we're to contribute for right to but come. right And deals

is part timing of that. so And an important

at as to long-term we shareholder So value drive look both opportunities creation.

Tycho Peterson

last one on maybe PCR. then digital And

times. the market? ahead with risks Just coming, It's the any of launch, freezing the been couple launch a of continuum delayed

Andrew Last

that normal Yes, go entry point, in next don't you the for all those risks We're think. through. year, to nothing it's introduction initial with and still I Nothing an add this QX. Really, new at of then outside staging steps Tycho. go about targeting final product more

Operator

[Operator question We from Research. take our Nephron Jack with Instructions] Meehan will next

Jack Meehan

sounds there's there. Norman, the in mix the It I you about to COO wanted folks a ask search. like still few

I have As at how succession group, the still you about guess, of CEO you is high do look some And a planning? criteria? potential candidates internal terms relative to might think in you that

Norman Schwartz

Yes.

a has still critical the part part before, said still -- we this of mix. succession, candidates evaluating part part been a of CEO of as think the I the -- that's of that's and

Jack Meehan

that of the to strategic on M&A monetizing wanted on if [ itself? kind thoughts stake buyback your state. Okay. potentially of what's presented role And then that ] also ask Just just I fund the near-term around and thinking thoughts latest something latest Sartorius your to or

Norman Schwartz

still we -- see it's monetizable It's asset. mean do I a it. Yes.

guess candidly, impact good think, end given I our contract the with us. more doesn't monetize kind [indiscernible] future tenure has really I views. think for down the is But he's extending investment good of at his And certainly, not overall And And has well. the it's question for company. what's been its it's the I that been really stepping really asset. of us our much day, valuable a done really the

Jack Meehan

Got it.

And did have then Okay. cash flow I question, one Roop.

sales, of inventory just as a the On back inventory benchmarking. if look some do relative before is levels, metric It one pandemic, I Like I at XX%. in kind was bit bloated. the of today XXXX basic a XX%. annualized around look does And at kind it maybe of very over percentage

to Are to doing hear to drawing great to some there any like that? your be would it just maybe start thoughts this So down hurdles cash? generate ability

Roop Lakkaraju

point Great Yes. that. on

Bloated. on. spot You're

haven't We I your word, you guess said, it's think [indiscernible]. that used all we've but necessarily got With do we pick that word. But inventory.

because growth, we may unacceptable, expect on say the cash obviously, improving Part that inventory we right? strategic revenue we've and inventory of been separate and inventory with is and how over and down. turns additional it you that, some to we're to continuity that inventory improvements from I'll It's alignment which that more come has needed got then free the where honestly, there. are perspective, will reduction. turn of initiatives turns inventory And there's in is we ensure of will of stronger improve, -- of see operations manage our are we sales flow. procure focused balance focused being And I sheet. But obviously will supply. With operationally it on today an quite overall of that turns, time an operating the from out, drive standpoint, market, And made materials that kind purposeful terms just if it, said,

Operator

closing have further additional program our it turn that we questions for no to at this the will remarks. And presenters time. any appears or now I back

Norman Schwartz

joining call. for you Thank today's

in We up we soon. to appreciate some And Healthcare your will person. Conference we Wells always, to and as care. and the be you Fargo in September early forward Take in at Boston connecting with interest, catch look hope of

Operator

does participation. This for Thank conclude presentation. Thank you. your you today's

disconnect You may at time. any

Bio-Rad Laboratories (BIO) 1 Aug 242024 Q2 Earnings call transcript