Earnings call transcript Q2 2023

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Second Quarter 2023 Shareholders and Analyst Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]

I will now turn the call over to Troy Wichterman, Chief Financial Officer of BioLife Solutions.

Troy Wichterman

Savi. you, Thank and everyone, for us. joining Good thank afternoon, you is Chairman and With me Executive Rice, call today’s on Chief Mike Officer.

of for Earlier release today, second highlights announcing press is quarter the our financial at we results and issued biolifesolutions.com. XXXX, which a available operational

reminder, in we will no during as These speak our statements SEC statements. make that uncertainties of call, them. risks update given, to only undertake to filings. obligation subject and this and the can a forward-looking These As are be we date found statements

this we results. included issued non-GAAP financial During call, non-GAAP we will or are Reconciliations or speak adjusted metrics in to release afternoon. to the press of GAAP this adjusted

call to turn I’d Chairman to Now, Mike over like and the Rice, BioLife. CEO of

Mike Rice

for our joining everyone, call. Troy. Thanks, Thanks,

discuss end to the and business and growth have our when to our updates intact, rates and remain term in markets. We fundamentals confident several near mid- we remain long-term in report

portfolio and includes inputs consumables relationships and solutions very cell enduring with we can for customers high-margin create sticky shareholder to have these Our whom value. therapy bioproduction critical gene sold

Cell to just Troy and equipment economic experienced and the also but uncertainty to purchases, noticeable the slowdown in led being a but have high level, on speak destocking funding consumables. temporary the the macro now let I’ll demand across industry our world, bioprocessing global constrained Processing a our biotech headwinds not and numbers, freezers for capital more recently in

comments Our several largest distributor also peers. in with slower reported by consistent growth of our China, the

line new bio-processing of To this we customer in period and reducing view adjusting environment clear, and with lumpiness, but temporary in are demand near-term and inventory don’t as our forecast destocking this of a guidance others be for for a the that disruption. of result normal bio-production broad a As space. XXXX we

of therapies. commercial count and of To remind majority delivering required CGT stage players the and these and core solutions, we are a customers. gene our critical products supplier components is vast as BioLife our cell consumable to you, clinical leading

the Before discussing to this our alternatives QX I’ll year, results Systems our for with Custom for update regarding our and and begin updated businesses. freezer announcement cryogenic strategic QX rest of outlook Sterling ULT Biogenic an an

strategic our Board have right June divesting customers freezer higher and margin assets and XX, to product alternatives, portfolio shareholders. the decision Sterling of optimize It management our and our company on Directors all for and focus concluded our profitability our the consumable considering after will is that the allow growth and you, business, the Post exclusively of CBS streams. the recurring

and XXXX related this based end, so the the value fully the IP provide access these and margins, appreciate working have commit to we on products revenue now new without to expect We interest To be teams to far, our lumpiness. capital and the lines products. of and starting innovative the impact product feedback and are and had able on a to freezer global these we’ve to and received able owner requirements better

excluding results, we our we issued our keenly strongly XXXX onetime are completion focused This managing and release and charges. provided today, commitment clearly illustration a our forma first freezer on divest the earnings process of our goals. pro half to and assets, to businesses meet the these In other reinforces year-end

continues. systems, CRM, team we put best grateful the at members I’m and leadership updates acknowledge externally efforts and financial have and We’ll team, these We lead to in assets best quality, and the accounting, of proactively shape and proud middle and perspectives our of sales for chain, recognize workers sustained dedication marketing. HR that who CBS can and their and and communicate through operations, process of improvement supply operating from as the to ever uncertainty Sterling, and a support. appreciate like internally divestiture I’d for process management customers the can our as line

to QX to portion of our performance. penetrate specifics, come unique from on customers and distribution services large solutions our their our pitch take services existing three A total discussing increased QX, customer in move we provider integrated I’ll manufacturing, XXX To and sites Now, storage products share and shipped of we revenue some products deeper across continues as to to and new for our products platforms. an services. sold spend and and

last growth. six future that strong of used been customer application, customer $X remain annual BioLife in be clinical or new the we planned and clinical customer In support estimate XXX each our to confident nurture range over early-stage and and applications, have sites pipeline have in if gained will We products that carefully quarters, are now a XXX of Cell and generate of users drive each we we revenue but to that approved million. used to the Processing $XXX,XXX in Sexton over

continue awareness able be from as reducing role to companies. homebrew in with critical to play cocktails preservation grows formulations the engineered for CGT media our take share expect to risk We

service now using sites, new sites Biostorage evo now Freezer customers users, New using Chain new Sterling customers and new users, end Freezer Cold products. product media, and and XX XX six XX new by and Processing line accessory XX new XX accessory Cell QX XXX ULT included sites, ThawSTAR biopreservation Sexton customer customer customer Cryogenic new

clinical in used QX, Cell new cell therapies, be platform gene at Sexton for we and XX biopreservation additional BioLife XX our or in received For for confirmation tools. that our trials will Cell for Processing media least Processing solutions

we our SciSafe XX approved reliance continue and Cold services and sites partners. to biological shipments incumbent customers in onboarded competitor. Chain on clear storage and In late-stage QX, courier and Storage includes XX evo their end long-term customer will our more grow as for evo. Storage Storage for are which Services by new the platform, continue companies Services, and gained XX evo to derisk It’s that CGT rentals

platform two starting significantly anticipate size in continues increase our for Their conveyed to evo, if with XXXX. therapies of platform. and approved pharma total to the and work company the now evaluation their ramp half a global fleet of the fully would revenue Specific to for realized, through that, last and demand evo validation

SciSafe side contract in to and pipeline platform, customers have we long-term year existing very the penetrate of and high-value, of also expect strong another further On we a opportunities, SciSafe. the continue for banner

to of increase potential expansion We a capacity continue biostorage evaluate global list locations footprint. our to

within bio Center Of co-locate potential Excellence. Manufacturing course, repository to Media we look GMP planned new synergies for of a our

Cell specialize On potential and to derisk Processing disruptions to locations Indy leading validate this to progress sufficient potential facility. a our initiative made commercial build demand but also this The assessment media that sciences anticipated of meet production for life and growth, media capacity proprietary mid long-term firms our point, additional novo facilities, initial to build and de objective of our products. we two high-margin support estate advisory anticipated is revenue to Bothell to that expansions, recurring in environmental with real on

While the this likely come time end of the yet line facility toward it’s new XXXX. not locked, online is will

buys, my sourced comments with this. consumables We critical from onetime to wrap that are tools need are I’ll sell not be replenished. sole These production rather CGT BioLife. but buyer that

strong a track competitive and record We brand substitutes. limited have with

their becoming in naturally in participate the less now right ecosystem customers real, participants are programs. Our to reduce reality demand we and therapeutic the to for just and now, expect that want tighter that cash emerging The holding class modalities economy are they and products burn previously. increase CGT our than is of is inventory this progress as all

leaner, of weather help moment planned the business in Growing demand make we and complex less we’ll significantly with now, starting the to to must a will become offset more this XXXX. for thoughtful and adjustments this, operations but divestitures, profitable our

QX the of XXXX. the first financials Troy? to over back to Now, I’ll present turn half our call Troy in for

Troy Wichterman

XX% QX XXXX. of increase Revenue Total by XXXX, platform. and our excluding Thank decrease Systems Cell offset driven no a X% was XXXX, Processing in QX COVID-related XXXX of you, quarter a compared our revenue Thaw for Mike. was $XX.X to in revenue representing million, in COVID-related COVID-related growth XX% revenue was X%. by revenue was And second and growth from There XXXX. Freezers the QX X% in QX a decline platform, from

million, quarter the period quarter Thaw was down same for for second XX% revenue Cell $XX.X the over Processing revenue XX% the over XXXX. platform million, Systems $XX.X and platform XXXX. second was Freezers up in in of the XXXX period same

revenue QX decreased was $X.X QX in and XX%. platform revenue XXXX. over XXXX COVID-related in period XXXX, Services from second the revenue Storage the X% same Storage million, Excluding quarter for up

QX increased XXXX Excluding QX XX%. XXXX, COVID-related revenue revenue in from

from to was months XX, COVID-related months X% XX%, in increase Cell the the over revenue period driven ended was revenue COVID-related XX% a representing in which in increase And during excluding growth the was X% compared this six for June Processing million, period, no ended There COVID-related by $XX.X XXXX, XXXX revenue six revenue. XXXX. XXXX. June a Total of same was revenue XX,

Cell Processing in and was platform was XXXX. the period million, $XX.X down six the Thaw in revenue the Freezers Systems months over XXXX. months same XX% $XX.X same million, platform six up revenue ended XX% for ended for the period over

in decreased X% ended the million, Services from six for platform was revenue COVID-related Excluding months revenue $XX.X XXXX. Storage XXXX, the over same in same up period revenue the period XX%. Storage and

increased from period revenue revenue same the COVID-related XXXX, Excluding in XX%.

was the of Adjusted margin six was second XXXX. ended second for XX% quarter XX, for XXXX XX% XXXX. XXXX, margin the with same the XX% compared gross from period with XX% of compared quarter gross the June months for Adjusted in

XXXX. were expenses million versus $XXX.X $XX.X QX QX operating GAAP in for million XXXX

period For versus operating million for six the same XXXX. the $XXX.X were GAAP $XXX.X expenses months ended, million in

million $XX.X operating in increase objectives. million costs million same primarily in by for the $XX.X increased driven compared six $XX.X for headcount operating QX infrastructure $XX.X with for and totaled the Adjusted growth to our QX expenses long-term were ended Adjusted months compared The support XXXX. XXXX. in expenses with period XXXX was million expenses operating

the of million QX million loss Our compared with $XX.X adjusted for operating in XXXX $X.X second XXXX. was quarter

six XXXX quarter million the million positive the XXXX. the was negative adjusted was second loss $XX versus months for second with ended, of $X.X EBITDA quarter same Adjusted million period million of For the $XX.X XXXX. for in operating $X.X for compared

adjusted six the $XX,XXX negative period EBITDA same was million positive the compared months in for $X.X For ended, with XXXX.

like financial and CBS. I to Sterling to profile, XXXX our half forma excluding Next, first would turn pro

to XX% the and XX% XX% for margin of first XXXX have a revenue of Our EBITDA. $XX.X been approximately adjusted half gross million with adjusted would

cash securities in timing to million QX raw related into XXXX. to due Our balance negative consideration marketable million XXXX EBITDA $XX.X at of of media the March million. cash $X.X $X.X million, largely $X.X adjusted working material and unfavorable compared to capital primarily expenditures of of was adjustments June XX, deliveries our capital related XXXX, million at with $XX.X and XX, use Taking was

for revenue the guidance. Turning is to to to decrease million, reflect year $XXX XXXX from to revenue of now Management XX% updating expected for year range full the to Total million year-over-year guidance existing its in X%. is a expectations be $XXX reflecting business.

year-over-year revenue, related X% Revenue XXXX include X%. this a an any to of of COVID-XX-related Excluding increase does represent decrease COVID-XX guidance not would for revenue.

Thaw to the $XX million revenue X% updated to decrease customers’ decrease QX, Total over for Freezers Processing with Cell $XX to in of expectations quarterly forecast, million XX% $XX of estimated decrease Previous XXXX. in and contributions: an be $XX include this of million, to a a following million, our $XX increase compared a was approximately X% a XXXX platform million XXXX. guidance million. Systems platform, Based platform XX% for we by sequential followed to to on sequential improvement $XX XX% XX% expect of QX. platform,

Previous decrease year-over-year to an for Storage $XX.X revenue, increase to of platform, of and COVID-XX-related million to $XX this XXXX. platform $XX XX%. was be of over a XX% Services X% million estimated Storage guidance million. X% $XX million, to Excluded decrease to

guidance platform year-over-year million revenue, COVID-XX-related Excluding Previous to XX%. XX% for be to million. to $XX growth estimated was of $XX.X this

peers macroeconomic decrease issues our and XXXX a largest significant The updated in anticipated direct our reflects the customer. sales forecast by from biopreservation media seen

long-term our potential customers updated While in we for BioLife. disappointing, the are the forecast growth and from remain mid- confident

XX% compounded note, our XXXX from would to growth be from media rate. over revenue I annual like a forecast to XXXX biopreservation would anticipated

share issued outstanding XX and count, basis. diluted XX.X today, our shares shares million of had fully million terms as in Finally, we of on and a

I’ll call turn Now, to the Mike.

Mike Rice

and Thanks, today’s takeaways Troy. I’ll from QX summarize two call. key

committed we and investing by First, the to the of CBS Sterling are year. end

year-end and freezers, reinforces to assets, and focused on pro The decision XXXX our divest managing completion forma our financial clearly keenly this these without again, half to strongly we goal. are process meet first

to portfolio with committed value. most of starting comprised We’re streams recurring higher-margin XXXX create a shareholder to rationalized the

inventory modulated to demand the market two, mid strategies. in by management the rest rates, persist QX, for customer is and the in And and we portfolio the long-term and of bioproduction softened CGT production demand throughput expect but our this of growth class-defining their tools services confident We for year. in exciting remain

and services and We are on a running premier this efficiently magnitude CBS. of year, entrenched recovery of maintaining well provider. in key will of to CGT business completing as sub on Sterling we focus for anticipate very And We our XXXX. enabling position divestitures the and intent closer a the our getting tools and customers, continue to rest

I’ll call Now the operator questions. turn to the over your to back take Savi?

Operator

Instructions] Our from first question Jacob [Operator Stephens. with comes Johnson

Jacob Johnson

Hey, afternoon Troy. good Mike and

Troy Wichterman

Jacob. Hi,

Jacob Johnson

distributors? just Is piece. it exposure industry. the Thank via have of for didn’t there way you just curious I’ll I’m just Why it now? start been you frame in two, on any much have you’re destocking how first to of segment, China some investors the Hey, earlier? Cell China And worried see kind qualitatively So I the guess, there. Processing why to you. seeing kind time about up then on

Mike Rice

I who’s an question, gone relates it through strategy, probably XX and that’s a of kind customers of sort where I’d one Yes. experiencing inventory really customer Great top they’ve it’s say and destocking Jacob. Well, rationalization while management customer, are it’s to ended. guess as this, several

you and even to recently have updates different sort our say, been precision of it’s are communicated weeks. and may undergoing, forecasting. customers us have to for couple what they’re demand blame But relative can not I of of not vastly get as to our a to as as time, But from chaotic dynamic a which uncommon imagine, for level

get So to we’re arms around our doing the we that. can best

as But and flow have most closer the have demand that follow seeing so hopefully consistent what to get have order update to given can they’ll for as their a I we they’re mentioned, projections and we to us. be them recent more then just tighter, will real-time

really It’s customer. there. story one the that’s So

distributor your their direct second to question conveyed their our has there is the but us maybe China Now in its part year-over-year. some large China, to distributors tertiary say I’ll flat and that on there, for through of products secondary that this demand and in

not our they’re year. calendar on Now

pretty largest a things that’s in and at quarters, bit of but little miss significant line looking meaningful. our they customer, terms So so are indirect because a that’s are

As But material. far in quantify that it’s not we’re ready meaningless, it’s right as now. dollars, to not trying those to do

Jacob Johnson

Troy in Cell Okay. the and at just down then looking maybe If there I right, think Fair quarter Processing. a fourth mean, enough. I bit on being revenues mid-single we’re And maybe for guidance next quarter. digits little I the heard XX% then maybe down

similar Or question I could out? Is in a there play that to confident spills destocking, two-quarter XXXX? XXXX? guess the kind I are phenomenon? phenomenon? this of is quarter risk Or one Processing this into on the Cell is And how a any there guess question, how returning in growth long you

Troy Wichterman

like what a was in decline. to and just said Jacob, I’d Yes. reiterate that my sequential script, I

decline handle then to destocking from And XX%. QX the XX% Mike then of QX I’ll QX, to a and QX a let from increase question. So sequential

Mike Rice

Yes.

it talk our got believe relates to visibility worked to magnitude we’re this, sense that the have that So this and getting okay? future through of this right going the that is destocking and to quarters, Jacob, of now, as about swings have swings to is in we’ve better don’t we now, we’re going persistence

Jacob Johnson

operations those think is you business. release mean to treatment. to you I in freezers said this be year? that by XXXX in – Mike, that question, prepared referring businesses and to comments, end just expect enter the freezer your you last just then sold the Or discontinued will And the plan it. Does Got of Okay. the be with the press don’t

Mike Rice

based date – received the we level to the that by and the we the parties, means books pitch both where on can and the interest end complete we year. with that we we of are expect divestitures It would

Jacob Johnson

Got it.

Thanks for questions. taking the Okay.

Mike Rice

You’re welcome.

Operator

comes from next from question Our Cowen. Wiatrowski Chad TD

Chad Wiatrowski

you a could to the freezer Wiatrowski if on it investing you the can comes working rationalizing by new you Chad sort portfolio? down facility, when versus speak how current Hey, in new you’re your the of that and just do to burn capital prioritize Steven [ph], doubling business, Mah facility exiting how reduce for

Mike Rice

we this. But the review as softened away Good like a fundamentals Yes, maybe to what while a Chad. we weren’t business we – quarter not speak, it. for demand is that people And normal, question. take clear Processing not this about to three the that crystal two to of so trough, Cell that’s new

we number their have, number ready, addition of capacity therapies the which in of room all means demand Bothell doses that that the to talking catalysts we driven of looking right by outlooks which Indy current based marquee and of new we to the in quarter, the customers’ have can over for commercial So and list be in customer we’re on increase five that doses for we’ve those increase now facility. time, the we at planning have supporting every been own the have particular as demand about further to start be meet know and

So portfolio provide the capacity biostorage it where of all going this can and about new all the actually rationalization media form impact, SciSafe and about biggest facilities. that’s in production CapEx and is really

Chad Wiatrowski

months? the on the that some And ongoing on to just of an that over the business, negotiations? how has you or give you’ve And of improvements freezer the update able quantify made sort are past Understood. impacted few

Mike Rice

can for interest would we slides that the buyers. you lot You imagine, of asking. a have books, and data bet. pitch to speak thanks Yes, be as In of prospective to

quality state in freezer operation? this what So the is of

what inherit, terms of to the to CBS, give failures And experiences. fewer it? you even negative fewer XX, better. much much are and color line Sterling a reduced XX, are first us quarters do what customer from results some extent you guys, did but failures so And about ago. about metrics and primarily speaking XX-day fix all all going what at in initial lesser I’m on, then a fewer the of those out-of-box drastically They’re obviously, do few

So at sustainable engineering That all those the clearly quality we’ve done our failures, that. being the But And lift goes one. and shape first a not not shout portfolios a – better in was at in root out look in mentioned those light to undertaking. tremendous teams was the the get fixes I mentioned, comments to implement that my those find products here. that I have been never quality dimensions very all earlier, from causes, as

a of supply we going material at work, and ton not looking together putting as was do but line. we’re it that including So people right initiatives, what a the first time that down along things and product production in making are moves are passing chain as really things to doing sure the getting defects

engineering So winner of teams value up that, ends whoever people to and also results there able they’ll our sure amongst be that. exercise going tremendous that Athens, a with was lot in company, and the a clearly, the as are to in processes for And investment themselves. quality these speak the intensive but recognize both I’m and generally emerging

Chad Wiatrowski

thanks and the for color questions. the Appreciate

Mike Rice

welcome. You’re

Operator

Our next question comes from Amanda Young with KeyBanc Capital Markets.

Amanda Young

approval your This us My the able around Paul BLA XXXX. in and shaping cell guys. curious be out? question just how therapy Hi I’m previously, peers to for gene landscape XX on is update KeyBanc. is, from would Amanda first Young of the kind on is have approvals talked landscape Knight you

Mike Rice

to surprise all no give Well, rational it’s is This particularly well-designed Amanda. you some that’s response how earlier-stage powder hear challenging in can is us the on right they very it, data the criteria, CGT have environment if about it’s inclusion just to get for have they’re a the I were meaningful. say so We that think Thanks now. Sure. that for right companies, qualitative dry. get them do clinical But they trials and patients exclusion onus to they keep and – really can question. really

to them a might over. not they have can’t enough just afford They footfall because start powder

planning have generally, just that that. that’s of that watch our there. – certainly just for key while we the engaged having they early-stage companies really a some whether get, And ball our much because can’t not those some have of are bottlenecks they that number an clear So of impacted don’t crystal think, final they it’s related experiencing, other components CDMOs stuff just do about customers with, a the make that complete I or which we old to that impact, on do whether just they’re bottlenecks it’s are means dose. whether there’s can’t them, relying approvals But that they manufacturing directly some so we’re

there’s well. real on of throughput as a that is So That issue. some going manufacturing

However, approved therapies. customer we from the customers all concentration that, the having said who know have

that We clinical like a have get comes that can decent versus a trials things sense production precision, therapy the other validation work, their we the not of but revenue total or to. decent from that, assumption

are And the way. all those metrics going right

solid remain completely that mindset time, first-line for loss, modality and really and populations, become their these patient cell including the name midterm just say not cancers tumors, you in the primary large over So we stroke, disorders, these when over that I and vision it. time, of treatment blood will disease movement big I but states, mean, therapies and gene

this will We now and and the macro is a But it’s early. shelf all are, winners reminding we what the with companies be gene to room be to certainly the they’ve that global we’re and that we smart, that not behind can that have fundamentally, cell therapies who stay because That’s believe all right? again, ourselves science, in these starts the helpful. temperature. we engaged there not will on realized have So and thinking customers very biopharma obviously fits keep still pills keep are are who at and believe

do have very you of doses. and temperature-sensitive whole to best so time can There’s other a sensitive take these care things infrastructure Chain you Cold that and

then which whether patient’s decision response where This potency, not. between or products chance not reimbursement ruin that’s or the them risk best leads the to And is in. don’t mitigation. our the come viable Giving impacts way. cells, you obviously most about can So the to which have be them clearly dose along the

So spot, it early. but a we’re in is good

Amanda Young

And is today? environment perspective of your ton a just follow-up funding one makes from That question. Absolutely. sense. the looking then How as of

Mike Rice

reason Well, without that. I realizing I’ll specific presume asking, you’re try just the to think

If about challenging. need to who companies to funds fund operations, you’re talking raise that’s

a for about talking raise interest funds to the to fit, strategic lot that. that ability of acquisition you’re would a If there’s make

going I’m say funds color more suffice give might folks what But question. something for depends are any the or just where if strategic it certainly reason really to looking comments about not And at we There that it to sense. are around be on not. the makes interested to do

Amanda Young

Absolutely, for guys time and appreciate thanks the questions. your

Mike Rice

You’re welcome Amanda.

Operator

Our Craig-Hallum. Hewitt next from Matt question comes with

Unidentified Analyst

Hi, Matt. this for questions. for Thanks is on our Jack taking

Just in to the delays to been in Have biotech tightening an environment? capital little funding in seeing dig a funding increase the order you bit environment. relation deeper

Mike Rice

Well, statements here, not the global CGT are Those sort that customers because I general have to to of make into the Jack, companies. have be therapies two buckets. careful biopharma and we bifurcate approved those

plant, they’re it can’t to and and paid make make have the of inventory this belt, stuff. they’re if need get obvious, our would or a they while can’t get stuff poor to can’t in their enough because stuff because they they they our need their done dose, of them state not lead which they a stuff if can’t They for management certainly dose our tightening And decisions right? then other

a more to with very those to albeit exception that And and – inventory – management a us, destocking however customer one implementing the of again, maybe bunch communicate who’s of That’s they result the chose them one strategy thing. that dynamic. was with changes are that with of really

else, stage. We’ve everybody lot the phase, of non-approved who still depends trial clinical are are got in a those for Now the that it the size. early companies on

are And keep they’re and to much or they bet to. There reducing it’s reasons so what to access they so you slowing delaying so about do enrollment need going they’re but funds whether not they’re access can enrollment it’s why down. beds, more

revenue week and tell with and of that it telling on for sure. they’re which drastically it bit obviously our or seeing through how ball, is, better don’t get on So we to XX/XX plan be But which as to one concentrated something we we production our try hope inputs to those key inform us a relates of rule, just guidance, going to our different certainly again, really difficult, customer makes as the a our days what have they through curve weeks well. particularly planning internal us what as makes are seen two or based can the to the but focus which navigate try customers not XX understand on we only some later, they’re extent to from later to that challenging

regard. alone not And we’re in that

not We’re blaming our customers.

from trying for just We’re of as to information us. to to way, we’re really we going the close more all sure get be we that them to better can consistent can can we everything make say that a consistent got do we extent to as that’s and they behave in

Unidentified Analyst

I appreciate the helpful. color. That’s Okay.

Mike Rice

You’re welcome Jack.

Operator

comes with Flaten And question our Thomas Street. last Lake from

Thomas Flaten

guys. appreciate the afternoon taking good you I Hey questions.

Mike Rice

Hi, Thomas.

Thomas Flaten

Hey guys.

Or the in pretty impact? understand first third a the I’m sure due I to quarter. sequential That’s destocking blended want just one relative of to misattributing customer. not make revenues. than to more quarter for quarter a million down I’m that Just downtick like the assuming, third significant, I $X macro in because – It’s it’s make kind the to the the sure by of the Cell more is Processing almost

Mike Rice

asking. Yes, customers right, bit I of quite are a appreciate A Thomas. you that. of couple

now. of all forecasting now other customer bucket patterns So right best analysis we and other and macro against on and the it’s based not the from as what right as one, forecast ordering it’s have we’re those just backdrop. That’s

to. what we’re that’s guiding So

are sandbagging certainly are we exuberant. we not nor And overly being

make if the first and we’re just have we updated QX difference That’s us realizes a take use split information best QX. sure half want that not data equally you sequential you against on business. results trying the got specificity want to empirical recovery the QX the say the first QX, combined amongst it, more to around picture. to the guidance call which at clear to ultimately, some that giving the we We’re up right really with way over to right do modest is the guidance now both that results, would and a the than in what to that’s between will everybody get with what – call look not to QX half We’ve

Thomas Flaten

CapEx back feel for few discussion if to this take a how services? increased seeing months a occurred about the are storage to then you And point? board at And constraints, at ago, so, capacity Day demand you do that Analyst the on going given that spending demand

Mike Rice

question, Yes, everybody and intuitive about really that. Thomas. a thanks That’s reminding for

We really robust have a pipeline. opportunity

okay We’re freezers distractions, better the again, much business, less less have to, so a company complex forth. cash puts but a in obviously, a and divesting sort on so from do both of the for we position, now, perspective, and

have fill going entire need they the XXXX be to because look up. we got as want our services to space it and very intentional they’ve giving Gary in We’re to to storage folks who team,

Thomas Flaten

And then if XXXX, Troy, help any I P&L? us for the just of may, middle the one final to in on one. thoughts EBITDA

Troy Wichterman

away margin quarter, dynamics media in with here, and Thomas, this gross at if look just mix from term. that the EBITDA the you our I would short right, say current at time, product Not for the the the shift high that given

number think the throughout EBITDA significantly see gross – not divested. going improve year that the dollar you margin until are and I can is probably to the

Thomas Flaten

Thank taking guys questions. it. Got Appreciate the you. you

Troy Wichterman

Thanks, Thomas.

Operator

turn will is remarks. other over closed. Since Mike no closing I the the Rice call questions, back there to for queue now are

Mike Rice

we providing interest Thanks, setting BioLife. updates Good XXXX. everyone, throughout a on the again, the on for are look certainly progress, to evening. banner in We your our thanks for of year the rest and stage Savi, and intent forward

Operator

meeting. the concludes This

disconnect. now may You

BioLife Solutions (BLFS) 8 Aug 232023 Q2 Earnings call transcript