AZTA - Earnings call 1 2024

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Operator

Greetings, and welcome to the Azenta Q1 2024 Financial Results. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, February 7, 2024. I will now turn the conference over to Sara Silverman, Head of Investor Relations.

Sara Silverman

Thank you, operator, and good afternoon to everyone on the line today. We would like to welcome you to our earnings conference call for the first quarter of fiscal year 2024.

course a of during in press today the XXXX. issued number Act our be and website statements at earnings the of today. I the Investor meaning of used Private quarter supplementary that located market the the is investor.azenta.com first release remarks we that Litigation after was close of call, prepared Relations PowerPoint like Our slides to will addition available to forward-looking the the everyone will the Securities remind would during of be making within on that There are such many results cause factors identified statements. differ forward-looking may to other from in those or events financial actual section and our annual I with aforementioned on our release our including the earnings Harbor our the on presentation SEC, Form harbor on would quarterly the XX-Q. titled our on various reports slide refer Form PowerPoint you filings website of and XX-K Statement, to reports Safe the safe We occur presented should make today. We to no obligation non-GAAP results data a to statements are in with and number with differ financial may GAAP. addition the that or conjunction in presented refer used of accordance statements forward-looking financial future which from measures, in to update these events The measures, believe GAAP of they We of the provide GAAP business. with measures even performance, Azenta additional but considered of viewing an an our complete way non-GAAP the provide aspects when and and of understanding operations financial reconciliation more results GAAP measures themselves. Non-GAAP relied be to of should not measures exclusion upon the the

Cueto. our On Officer, and Chief Chief Executive the and Officer, President Herman Schwartz; is our call me Steve Financial today with

provide financial more quarter. Steve our XXXX. on for results Then fiscal detailed remarks look We will Herman of highlights from our open the the and year outlook into with first a will call

Steve With We will CEO, at turn over the prepared questions call your end I to remarks. the our then Schwartz. like the would that, to of take

Stephen Schwartz

well our XXXX summary on current and environment. I'll Good on outlook our including updates focus us. as remarks as QX afternoon, thank everyone, year, of my for on the of results, our you a full initiatives view some joining for market key

by performance begin we results for year. me on of had delivered quarter terms and pleased our QX Let with initiatives intended progress that for everything in the key as saying the we we're

have the we earnings call. at We our announced momentum supports that guidance November

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persist the more industry an to and for generated tailwinds million critical We Our sample a trend of We from company ability all discovery come. above to and ultimately world-class world more And by customers' revenue interrogate to rate capabilities. We've sample headed management automated unlocking further market sustained for to with source, industry. that benefit this data to capabilities. years $XXX serve this our see capabilities matching Multi-Omics this needs providing manage and samples by that's in paramount is growth long-term advancing sample unique store and outsource we that workflows a measure measurement. towards built set is and year can

Asia and translates and is but that we're uniquely which still a valuable on still by research now highlights do. great by tremendous all this Africa, opportunity. We're organic market-leading delivered mean us, of time we you strong strong discovery. discovery owned work the that business, of timing the will another sample QX, which this, which growth frame. year-over-year, and for much expected diversify are our headwind enrich us. positioned a and in which in By measured from South pipeline, X% by but to to revenue Medical our post-COVID a the to the positions, Biosamples we be has you to when of this orders rarest the that X% and underrepresented genomic In market due us, in the decline up to XX% segment, of we exclude today potential the reality, million, some capabilities sourced allow make when the faced quarter. factor, identified will most we've company serving also to exclude samples America, from B dramatically a samples by $XXX to core the the of utilize deliver chance There's some QX consented I'll most and to need us us to addition, In up population, add which bring done as and had managed an Instruments lighter Consumables turn notable into

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stores system Not in our complex care customers and quarters, regardless utilizes management opportunity. Automation reduction This outsourcing we best-in-class during the trend also large offers these Repository that us research up more be that efforts. precious hold our will automated grew Large and in Stores opportunities. management a the two September grew agreement management BioArc™ level X% C&I Sample our across in XX refrigerants. new the workflow provide to natural will sheer projects revenue Automated discovery and Inside laboratory for efficiency the continues well services multimillion in over collection of large as this continuing to footprint Biorepository collections. We're the than was their on the members recent Sample growth provide of samples existing year-over-year carbon Solutions makes provide ozone-depleting unparalleled distributed expected week, precious automated the customers, Boston. basis for Management designed fuel quarter. our customers organization of Specifically, launched which the perfectly rather new this, positioned systems This our Screening transfer SMS XXXX to SMS is featured This collection anticipation has sample Automated but of operations. In an to the multiyear management our be to that our disease-specific and breakthrough we at next our Conference than a is density. collected Solutions features sample currently innovative and the pattern it's will related towards XX organic collection for only repository air sample that business. provide management. closed on-site of X%, we in up fueled for To quarter, future sites. the off-site of choice X% Sample well Storage year-over-year, this more large, this as trends toward sample centralized we as and ideal Solutions, of The System, solution storage years. the and consortium another as excluding to we business transformative system the to highlighted dollar, of will and largest up of volumes saw project consolidated strategy. commitment collection was number customer's services potential rapidly sustainability Society an with performance Large supporting Laboratory business grow Repository to the the start Ultra, million key sample an management storage year-over-year the healthy services into and collaborative. to add of one, our XX% sample Furthering to this a Similar eco-friendly of the cooling This as drivers: research the even with for the are International their two, samples sample samples, that Ultra X by and

Finally, sequential row. the for growth quarter in Consumables second that encouraged a showed also and Instruments we're

result Our increased inquiries see that's cost with of continue once it improvement This that with performance. a yet year-over-year. In again Multi-Omics through to of also showing a partners improvement and quarter noteworthy as life ability quantum for challenging channel signs end-user Life delivered growth a to market market being highlights next-generation X%. demand in we're is very is pleased The business. organic disrupted our revenue Services, by Science particularly in another navigate Sequencing record our

not a benefit initiatives, to falling discovery, the volume We Sequencing costs to the more demand is global good just lab rapidly. of health Services. for lower significant of elasticity driver this for driving aware, see offer Sequencing demand everyone As cost allow as also prices, of us sequencing is Necessarily, our lower is for the and is all but and efficiency.

is of balance while cost gross and profitability, to right stable. for this believe it dialing manage increase we're continues margin in about volume, we As our revenue as we just now

approximately funding XX% business growing helping but So to several it up and of expected spring was believe our in steady strong a lab funding and academic constraints. already In as broad-based. key is although the represents a general, muted. markets gain end we perspective, modestly, opening late in pharma was remain regional up growth, Europe U.K. Oxford modest traction new in strongly, X% remained From continues increase is The accounts. outperformance face NGS us to biotech

North team another digits, business growth single declining China the delivered in soft, Although teens. in American of low low strong our yet Multi-Omics quarter the remains our

market. China the delivered strong, while competitors down timing of primarily lower revenue outpace is and in some revenue, they team headwinds XX% year-over-year million macroeconomic they as that and exist Medical Our in overcome of level B to the there, of that of expected. The incredibly orders. continue $XX due is regulatory to

our orders We and our Medical XXXX. year, have update mid-single-digit from on more project this moment but product pleased for today, contains central no much fact We're our expected business millions on cold do but for an with on an number have as a samples we of the Democratic Congo last results, expectations of keep exciting $XX a blood We'll opportunity this QX Health. by to the maintain our this on recognize we opportunity in of to play crucial DRC. of to of Republic of that role initiatives chain Sample-based we the more Minister revenue the it steady remains to QX support for collection call. the ship in opportunity high of we for fiscal announced business this continue B ] whole As growth. have priorities even for source and growth updated health give full of develops. To take this But hand vaccine want in earnings we as [ from year with to the the million that activities that are you the I summarize

across coupled positions geographies only market markets to momentum. add customer applications Our and above our improving with will

A Our with health of we on coordinating look focused these features Investor a well pleasure it's to you to turn forward to on long-term support month. We series our more leading us well at these keenly from disciplined my in market industry our Herman. improvements in as investments structural as our we depth description next Ultracold the for chance management, and of in with plan March of important what confidence position, initiatives Day XX. engage B transformative focused our areas storage we're plus the as solutions. Herman outlook energy-efficient which amount as of sample fulsome profitability be enthusiastic benefit deliver of Sciences cost with to key a in to better much our need these including that in very sustained Yet a and tremendous now aligns presentation lead Azenta also plans from will initiatives, our is energy growth new through our huge Life prospects gives the the And this as over from focus in team. role enhancing Medical, to call

Herman Cueto

Azenta at that have days busy planned I continue XXX and supplement with of with by fulfilling. I slide our visited the to see and meet lies impressed the many employees more to opportunity I have website. several first back My Steve. both key on opportunity I sites be today, my you, been have visits deck to over months. had coming the Thank available refer the what To ahead. and our remarks

highlights. some for X Slide to Turning

$XXX was revenue million, XX% quarter an on basis. organic down XX% First year-over-year down and

drove As decline. expected, the lower B medical QX revenue the

business the organically. X% Medical, grew B Excluding

or to in past, remained the discussed As and a the quarter headwind Consumables year-over-year in a the C&I, on we Instruments basis. have business, growth

as was fiscal sequential EPS improvement B have we delivered did 'XX. what EBITDA organic another see you as growth X% If in with as we exclude of consistent and above-market growth believe Medical, we is well adjusted C&I move X% non-GAAP year X%. in rate In QX, we This that from QX of year-over-year through QX. now the to QX delivered cycled compares. and We tough $X.XX C&I, we

million management. for commercial, ended securities. track capital as cash on Our cash and quarter and equivalents $X.X strong reduction the third to well row plans. We working cost positive quarter we in very initiatives cash, position the to a was $XX focus to a continue with operational marketable in billion relative continue our flow of in Free

the in shares In the addition of to our of repurchase through operational capital we Azenta's stock. million positive million X.X QX, shareholders to $XXX performance returned of

We roughly share have of the repurchases. of now $X.X billion completed billion $X planned

of We on initiatives. disciplined continue this to $XXX from have be extremely will investment, million for hand roughly cash value-creating still used after even balance to long-term a we perspective. be sheet and well And positioned

Now results non-GAAP anticipated, to down at X XXX down Slide coming deeper margin take as our points. gross year-over-year, let's to XX.X%, basis was $XXX the was a revenue quarter. Total turn at look in million, in

gross operating negative flat. down margin was Medical, XXX margin B roughly Excluding was points Non-GAAP year-over-year. basis X.X%,

XXX points saw from share again, X%, margin was dynamics. Adjusted driven basis This was in leverage the fiscal of Excluding operating year-over-year, earnings of in the EBITDA was quarter. impact strong by expense basis and B Medical, the $X.XX combination XXX the Medical expand down offset by cost actions partially reduction B Again, better we management implemented the non-GAAP per margin points. XXXX.

I will is to structure. I Before quarter remind first segment in details, the QX the get want reporting that into segment everyone new be we the

X week have should results, Management X-K years SMS. Total with historical let's an Slide of With for reported X%. revenue last seen a of format. quarterly review for X excluding a million at Repository segment was was basis, that, the for the SMS which C&I, organic starting up segment year-over-year posted quarter, or information segment in Sample Solutions, You by which SMS X%. was X% Solutions, our $XX up to on provides Sample growth new led was SMS, If organic in X%. look growth growth the turn we

Steve were in SMS Automated As such XX continued of basis investments absorbing New up and Solutions margin mentioned, growth. points the Repository XX.X% to Repository. was in gross million Sample first $X momentum Boston strategic year-over-year contributed Large and Stores the the key year-over-year, the impact revenue. quarter approximately as contributors was Ziath

China up organic first of next $XX was led X%, of Multi-Omics Sanger. Of note, gross segment. decline in and a modest Turning business basis delivered with gene quarter Multi-Omics double-digit quarter The our year-over-year. to revenue synthesis, growth the down points increase the in year-over-year. delivered by was of in organic Multi-Omics million strong XX quarter, X% XX.X%, growth next-gen The Multi-Omics XX%. for an sequencing another in growth margin business the revenue in

lower reported XX.X% organic revenue of the in due XX% year, sales quarter, driven chain Medical cold has cost segment. to fairly down and material Gross million mix. finally, than last has orders. advances, margin. a with the And was of increased lower timing stable level roughly Revenue and As allowed the with primarily of volume B down primarily savings in on the a $XX us labor sequencing margin to come was gross productivity was technological of maintain vaccine The by conjunction direct basis.

to sheet. turn the Slide balance review let's for X a of Next,

mentioned As $X.X and securities. cash, earlier, the cash debt in ended with no outstanding. had quarter I equivalents billion we marketable We

flow improvement the the by primarily that strong quarter, prepayments. Multi-Omics this elevated million, due accounts quarter in flow an customer slide. in total, the to see you the quarters, $XX cash $XX to in improvements Capital During driven working operations slightly equipment. to in next on were free the inventory, million, translated versus recent capital primarily cash flow $XX Cash and from for In brought operating quarter could receivable was investments million. expenditures

on X. Slide to Turning guidance

$X.XX press we in guide of we to fiscal initiated a on $X.XX November, XXXX. basis that in which to margin you maintaining full adjusted call calls non-GAAP for fiscal As QX our year our saw for of XXX X% are organic EPS year and release, previous in approximately XXXX our points of growth range expansion X%, EBITDA

expect the Medical we accelerate XX%. in to Multi-Omics terms digits are In high quarterly basis, and to Sample to expected In Management this digits. to to point growth Solutions combined to B color the of expected a key deck and guidance, for Page the at and is single QX, mid-single quarter, on revenue of refer X please grow considerations. mid- slide grow

We 'XX. better expect of fiscal forward roughly will in approaches better and and slightly March will a QX our margin basis. to year slightly year fiscal goals. gross longer-term to and mid-XXs adjusted this discuss 'XX. In pleased year on EBITDA fiscal strategy, XX QX revenue of expected SG&A scheduled margin for of with and an digits to where percentage we revenue be fiscal 'XX. to R&D consistent deliver be look business closing, Analyst our non-GAAP as QX a our vision performance that be QX EPS financial year, are approaching with mid-single percentage flat we expense we is than Overall, the the QX expect than 'XX to year Day

will I call questions. delivering and sciences to turn purpose, This on for breakthroughs now operator faster. our and life remarks, enabling our the We customers to committed over prepared serving are concludes our the

Operator

Saxon comes of the line from David Needham. Instructions] [Operator question with your And first

David Saxon

on start I wanted I to Medical. B guess

to is the strongest looks quarter $X quarter. the December drove obviously, revenue. supposed be million, like quarter half mean, I of the million the second $X But in it only So

deal, But we anything Or about seasonality or cycle. cadence regarding anything longer second being selling half? resulting a that realized guide. a requiring the the deals kind in the of in should revenue just dynamic just that sound deals in it us that's about there the is quarter then think of doesn't there's sense give is like holding of all? the you back not the how can the And at So changing fiscal pipeline in DRC

Herman Cueto

to predict David, of it's it's bringing talked Herman, trying that on Medical, pipeline, the robust how is to call is is one unknowns timing of are have very everybody things these business, back What say that that with but commentary fourth we of B the to the the about you? we hard I some I the timing start guess do. of would of very I the conversion a here. quarter a pipeline pipeline would

environment. In bit funding backdrop of little just a maybe There's there a terms happened yet. hasn't funding on baseline of that just the [indiscernible] of out

So and it's in of that, orders up, the frees that terms will that, flow. funding it's start seasonality just not things to when like

we about of good just to As feel it where pipeline be The the have the comes with gives when in We is. pipeline year I have full the said, in. timing We pipeline. robust a confidence guide. comfortable us

Stephen Schwartz

Steve. And David, Yes. this is

in we is are about being how But a from funding to the get as are place. are vehicles lot contract, confident emergency we're ongoing contributed. going There's On on, to mentioned, multiparty DRC in. and you comes make this tell chain can timing working active But the sure are the discussions what get there discussions we're And the get the the we distribution the is of segments what to urgency let of the vehicles vaccine products also there that on. discussed. how and cold DRC, standpoint contract the really -- about

So hand. know when we've we'll got let in it you

been I is call. think we've of imagine, do that's can at as time guiding the you we what way the here hold the

forward. of assure all parties here properly, you we I going is by sure sure go Just that the there's to that, on but a as make gets to activity lot expectation set to sure can make make but accelerated

David Saxon

ask That's And just on you're Great. helpful. and wanted my then there. follow-up, seeing as to D&I recovery the Okay. I

I think from being of you U.S. of a out the had Europe called as recovery kind ahead perspective.

So Europe remarks, tougher mix recovers big lapping the called I you then that your was color U.S.? that of it behind geographic the a And C&I as think, on out of kind or could was fully of the comps be? Steve, C&I you tailwind prepared maybe Herman. any How in

So should we a grower year-on-year going being forward? think C&I about

Herman Cueto

very Yes, talked similar fourth David, it's we call. about to on Herman. The commentary quarter around the is what C&I

So levels. when that we inventory the pre-pandemic to seem talk at does the now are it distributors team, U.S.

we're through selling sold the it's into whatever to the So market. being distributors, end

a we commentary a bit. So it's They very call. talked feel we sequential is did little and QX. of out see half that we get still we situation were in growth of it's The to on the the the very about again, QX that similar lagging confident second as We into expect about, to Europe, similar. when behind be this same. But year. from QX

was that X%. about So

we row. in have a So quarters X

it QX, we're QX X%. was to now X% seeing an additional growth. from And So

at So, we we've don't expect think point time, second as in into to do it. And get and year, later the the headwind. it we be through a in we quarter cycled this

area, of a of in growth but in not we said we we're ton past, out this the believe counting we're As compares. do the on tough

Operator

line Your the from Stephens. next Jacob with of comes question Johnson

Jacob Johnson

start I Medical. on about guess, on B to your want contract. Herman. follow I I comments Steve, up too just DRC will the

mentioned along guess confident vehicle same from this? difficult. been procurement more of seasonality this kind Or the year has want can kind obviously, contract, just timing hit the versus sure, you any guess, you're just full think an about when than is annual the And do it think I be of a then said this could is know vs the risk there business. from make year, it XQ XQ,XQ? expected. lines, early guide I You is be one, and to a to of but business be on then and I would in any too we business? talk about lumpy this This I I stable bit that... basis, or predictable know different have just, XXXX. But more year-to-year? you a is risk I'm Or I can to lumpy kind it's there a I curious

Stephen Schwartz

Yes.

Jacob, So This backwards. them let answer is me Steve.

annual On think the so So question. for not I thanks basis, an lumpy. it's

we If months, not at for gets if always the run XX you trailing do, it's look but linear smoothed and business sure, we the it's, lumpiness out.

We expected on seen X points will, the if our from the based December would quarter largest was in this then that one. diligence, we December to and be it data came you And quarter we've that not, forecast. but

On to just, a be a bullish for continue just about to the going they're these to that distributed. how It's led. things where pent-up of many vaccines DRC, we we need go. units demand be getting matter There's

So to can tell we're the, don't DRC. that they'll we you but that know year. resolved that it's, everything of exactly, -- that We sure timing the part start they there's a to the be get gets begin of going this lot product ship can so into I will confident making to energy

Operator

from question next Andrew the line your of And Raymond James. comes Cooper with

Andrew Cooper

something with Medical. than start I'll B other

So we're the maybe not time growing of pointed space. the from when Multi-Omics, in a you out, that's just think others in at I necessarily some hearing first what

what's allowing you of whether bit a little when a maybe taking maybe share? any landscape? competitive are change to little bit you think grow about struggling some set are? the help us more? working sort different something others the you just others that's than with of for So Are sense in customer Just Are

Stephen Schwartz

more as work contracts it, the the of we, capable the funding of sure, because sure, the off larger tell Biotech funding of customers business. have others. the we contract that from we're gone doing for or grown I or taken out reduced We as indeed, for at in down When thanks. can't lot us we lot But customers attributed companies America, look it's Andrew, because we a we've has you either North more a to we business. that for size giving Yes, But have been of are has have, I that for can tell get customers. share you that

we're gone So of I the And has has And up larger number appreciably. grown. some the elasticity revenue attribute do reactions of without question, business. from customers more NGS, getting the on we do the

issues bit So One, I things. little that both Sanger side, say in last has the on without those us I business example, attribute here caused to softer it a question, will North America for the this the shrunk reasons. there, Plasma and customer contact some But to sales sustain begin us larger NGS some close with Sequencing I business little quarter. just of the to what's into aggressive of bit customers Two transfer allowed the here. we EZ a to contracts continue think are larger business. and

Herman Cueto

the Yes, add, funding funding a still the little was bit in just steady perspective, you're funding macro pressure. Andrew, from and think terms seeing of going I a of academics. in to where you pharma we're I biotech environment, It's when get seeing into

continue in little with rate markets, we will interest When that funding along scouting do the So we'll environment come maybe we watch understand better, some of a that. to that the just our gets it.

Andrew Cooper

things maybe you lot that still that there, then best mentioned help some as segment. pressures. but like can maintain it the just Great. That's helpful. margins And I of pricing a margins mean, sounds you you certainly the on in

So the a like? where different of thoughts looks we kind just think term, maybe ongoing guide into pace at pace? And Or what's terms baked would continued out? that you your maybe can a love do what at pressure is it on settle Just in this pricing? of longer

Herman Cueto

Herman, Yes. Andrew. It's

now now was more in right before had line pricing lot but sequencing dynamic interesting in have it's because revenue past. on the pressure it the the pricing than ever a you more have what affordable because an volume is with business, Multi-Omics than So the now you you is you've much have

of top that couple you look So on going margins, you have And dynamic going when on, at a things have line. you the on.

of you your on first, a leverage fixed overhead. ton have So

So that top then is material of And technology also savings. drives have on the direct and there you because the efficiency. cost that, labor efficiency

for there. cared think seeing we gross was kind going of be margin. When it, in to nice pricing, stable a we you're we guide about So knew it the

be So it's as guide. dynamic of to think the contemplated cycles going it's in market we the all But technology. sort the a through

half see We year. to the will back into settle we the start of get down it when

Andrew Cooper

Okay. Great. And then maybe in. if I one can just last sneak one

the might C&I. particular, seasonal called to you improvements aligned point where the know that, the both than calendar to, some what it of out quarter other XQ the I in give been sequentially? some into for, but and plus on Any X% comfort whether typical And there this do a past last can step you we're anything see of is those not up is we of more that here, worst simply Just "hey, sense you often with sequential that quarter, have or then changes? that you it's anecdotal

Stephen Schwartz

mean, and I talk Azenta I'll of step an about from Yes. view. point it maybe back

and look you'll dynamics business about, QX, just that year we and you it's book you you talked and overall. QX the full guide math, you exclude balanced and at If of that guide the you a business the is have have Azenta it's Medical have what B for see, the the very end

half, growth if in very half look the you to second the in of very at half from versus look it's half, the you rates second balanced. If the revenue balanced. the first at first the the revenue And mix of mix it's

SMS in I unpack business, wouldn't half. you So being cyclical. dynamics Azenta and nice overly a half Multi-Omics I look And C&I, -- across business first overall, balance you really business as a it's at think the second see the also that you similar the and when have Andrew,

Operator

question of next the Your with KeyBanc. from Paul Knight comes line

Paul Knight

I just redo strategy. Where are you with model? your to your, you the transition distribution had Yes. know on that sales

[indiscernible] need to where half So are you you done you where -- be?

Stephen Schwartz

We're thanks. Paul, aligned.

we because the And organization. segments, this sales in growing complete. In the is organization aligned got fact that X But it's there execute. we've believe have making as environment getting practice dedicated we've sales a traction each and it that be. sales is again is So the of we now we just been the in sure should

and the And Multi-Omics fill. scientists how traction. that to can in we we're different who has continues selling openings channel still to through rotating to channel, large, channel is but is by good be we like and But scientists have already as we're starting in see distributors distribution that some So to why organization -- place, built aligned. exercise keeping business the that's and also completely really you We are we'll build. seeing, up, imagine

Paul Knight

logistics And on bit us I you you had, last could you [indiscernible]? China? re-did there then know update year. Capacity and a expansion little

Stephen Schwartz

bet. You

to And a bit. little China so talk me let

we the So double-digit we China Most the Services quarter. days mentioned is in that we growth again third of in China for business were these related. do consecutive

synthesis again. in Multi-Omics we So it's quarter this XX% grew for the business. And

in strong back can months seen busy incredibly really recovery we've good you, and in is inside in team position we I we're ago and China in to like had growth really XX good we outside growth. issues are customers the So China, the synthesis, the serving a us, behind feel tell of both China.

the on the strong market, capable, in all believe the after we from full rest just attributed going customer local team so is what's China of going they've a speed is ahead and fully their So base. aggressively different to exhibited characteristics growth

Paul Knight

reason journey what buy then Medical? mean, B Where thought the Medical. The you areas size to real on maybe was was with of a other liked to you into it into medical kind vaccine. that I B are the move box And to in in and lot move B like things I technology Service. lastly,

Stephen Schwartz

XXX talked is to EUR what million exactly XX how do opportunity focused agreement whole it's B chain. on blood use DRC million now those That's is Toyota, about. Medical, we're contract the DRC, recovery. EUR exciting to probably related the Paul, the But most Azenta, the vaccine about all the portion for us. cold the Yes. We of

transformative side cold over, Ministry revenue priority chain a medical samples tremendous retrieval live where the those and it are done retrieval And right is exactly the program X are that enthusiastic before in a sample, top really a whole Health. retrieving through the sample year discussions and we B to DRC on the per we is are. DRC. samples now outbound are for do what the how the that blood to year side. specifically articulate to in this why get for we We to is medical product-based million that's what from vaccine plans the on on going inbound. And whole vaccine because the sample with of on value that boxes can using that's that's of active units And add So channel B Azenta about we're Services standpoint the terms hope numbers for

Operator

Your ISI. next question with comes from the line Evercore of Vijay Kumar

Vijay Kumar

don't few guidance. on Few questions a maybe Just you mind. if

number, revenue like Second if could mid-single that an clarify? you that organic total quarter Or growth? high singles. is to Is

Stephen Schwartz

to organic be going an That's number.

Vijay Kumar

numbers, Or what back to assuming from I as those and and half? recognition? teens, half the the Management step-up implied high the in half, revenue from Sample assuming? coming Is Multi-Omics step B all you are in based And back DRC Fantastic. you up they just are think on that Medical contract back

Herman Cueto

it's Herman. Vijay, So

actuals of the you, now is the is mix you they're so color see rates, balanced. look you minute, the the [ ], full revenue half. between around when growth the second the first look can you'll a a very at business QX And and for the again, do and So you it's at the and half book B the when Medical at you you math, very have x you QX very, guide have if look on end. balanced What year XX-XX and

B piece and So becomes half that hockey conversion. is very second pipeline SMS a big It's about stick. when all the between look at don't first step-ups. The half, you and in and have you Multi-Omics back large the the half, Medical not

very been X the talking have last pipeline. that the robust thing timing a quarters. for We about of we've converts The it when is

Stephen Schwartz

this is Steve. So Vijay,

on like on The business sight, the looks and Multi-Omics really hit comfortable line side. that it what to side I exactly. visibility you it's have we defined think SMS We about the progress, good the of feel the good Herman to there. Medical weighted modest second and a feel the that. home good business bringing B second good we half. first the we in had of uptick about a the half, heavily It's on the opportunity And from lot half

Vijay Kumar

NGS Understood. NGS transition singes? price market see just like modest here's like growth. how out? down, this And can because business then playing high making get do you Is that Like of one back the on coming

Stephen Schwartz

it. But we Vijay, but Seq X coming. We the but up number we're again, more reactions points, data populate few Pluses for the number of considerably, we see, was large So to need a the starting a with we does economics. was knew and change what this we ran prepared Nova it of now

comfortable still reagent the that the we value for So for what for costs help customers. bring nature the consultative that do capital the employed. we of get But we through we're we've to paid pass the

And is it. going we're why doing we're margin the while of stay front It's, so to that's revenue. we can significantly. We're work to in up growing of sustain amount the work

other that So But X from now X I'm each up. X this we're playing quarter is but now, this through putting we're now, ask volume quarters of transition to coming. now, a quarters new think out. we sustain question keep that's guessing make we will right just that lot able tools, we're just are, right margin that now, keeping we'll how and to sure brand and

Vijay Kumar

cash on is $XX The impressive. repurchase? sustainable? Understood. because income balance annualizing for And then And I in performance to Herman are one's lower of QX think the share here maybe that you. just Is pretty free my million? XQ that interest flow last for assumption cash it's

Herman Cueto

Yes.

first interest the one the maybe So income. on

timing, cash good then see do bit the calling in. we're just, cash lot it's We're timing second the And around of And that doing a where is coming and that we're a feel management, cash lot free of quarter, we it's discipline out. capital. flow interest of uptick the spend we flow, work little in operationally, So more of income about around working yes, holding. again, in a

go, is math the your So right, number X don't I want XX XX. is where to but times could speculate on

it So ends we'll where up. see yes,

Operator

And the from comes your question B. line with of Yuan Zhi next Riley.

Yuan Zhi

are Are best space? from the Genomics And in clinical to [indiscernible] bankruptcy. understand any read-through trying news [indiscernible] from impact to firm? we of is the clients this recent customers your and First, application the there

Stephen Schwartz

not isn't yet. to Yuan, got I other Yes, immediate, we, backup so and mean we capabilities we've this customers. provide

or think we we're, repercussions we aware think of. no there's people we guided that So aren't haven't

Yuan Zhi

business project therapy million some for And announced the maybe Another projects Maryland this, therapy $XXX some it and it's comment of for question here? you AstraZeneca, Genomics. sales is in is parts like Stores, the maybe Azenta Large Can Sample if business, for the win here to different manufacturing. as cell impact Management what you can

Stephen Schwartz

involved. you opportunity Yes, can Yuan, we're this comment there's to not for something an imagine specifically it's we're anywhere able on But customer. like that a

we've can't AstraZeneca been but, be So with specific, for many we years. many, partners

Operator

Thank presenters the turn are you I'll call much. your further There remarks. to closing no back questions. for very

Stephen Schwartz

the of We everybody, Thank the to around with at the Thank big a Day joining world. much. forward on everyone. the thank you and you the Analyst look associates for X,XXX-plus to you Okay. XXth you, call Thanks, Azenta March. today, speaking very

Operator

the conclude for your very today. much you conference call participation. does That We thank for

You may disconnect. now

Azenta (AZTA) 7 Feb 242024 Q1 Earnings call transcript