EX-99.1 4 ex_696150.htm EXHIBIT 99.1 ex_696150.htm

Exhibit 99.1

 

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Azenta Reports Fourth Quarter and Full Year Fiscal 2024 Results; Announces the Plan to Sell B Medical Systems and Appoints Lawrence Y. Lin as CFO

 

  FY'24 revenue growth of 4%, reported and organic, in combined Sample Management Solutions and Multiomics
  FY'25 organic revenue growth expected to be 3% to 5% year over year, with Adjusted EBITDA margin expansion of approximately 300 basis points
  Pursuing a sale of B Medical Systems to simplify portfolio and drive revenue growth and profitability
  Announces appointment of Lawrence Y. Lin as Chief Financial Officer; Herman Cueto to remain as advisor to ensure smooth transition

 

BURLINGTON, Mass., November 12, 2024 (PR Newswire) – Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2024.

 

Fiscal Year 2024 Highlights:

 
Q4'24 revenue growth of 6% reported and 5% organic, in combined Sample Management Solutions and Multiomics
 
FY'24 Adjusted EBITDA margin expansion of approximately 300 basis points versus last year
 

 ​

 

Quarter Ended

   

Year Ended

 

Dollars in millions, except per share data

 

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

 

 

2024

   

2023

   

Change

   

2024

   

2023

   

Change

 

Revenue from Continuing Operations

  $ 170     $ 172      

(1)%

    $ 656     $ 665      

(1)%

 

Organic growth

 

   

     

(2)%

   

   

     

(2)%

 

Sample Management Solutions

  $ 85     $ 82      

4%

    $ 319     $ 304      

5%

 

Multiomics

  $ 66     $ 61      

8%

    $ 255     $ 248      

3%

 

B Medical Systems

  $ 19     $ 29      

(35)%

    $ 83     $ 113      

(27)%

 

 

   

   

   

   

   

 

Diluted EPS Continuing Operations

  $ (0.10 )   $ 0.05      

NM

    $ (3.09 )   $ (0.19 )    

NM

 

Diluted EPS Total

  $ (0.10 )   $ 0.06      

NM

    $ (3.09 )   $ (0.22 )    

NM

 

 

   

   

   

   

   

 

Non-GAAP Diluted EPS Continuing Operations

  $ 0.18     $ 0.13      

47%

    $ 0.41     $ 0.31      

32%

 

Adjusted EBITDA Continuing Operations

  $ 17     $ 8      

119%

    $ 49     $ 30      

62%

 

Adjusted EBITDA Margin - Continuing Operations

    10.2 %     4.6 %             7.5 %     4.6 %        

 

Management Comments

“We ended fiscal 2024 strong, delivering core revenue growth in our Sample Management Solutions and Multiomics businesses, and upholding our commitment to meaningfully expand margins,” stated John Marotta, President and CEO. “We are proud of the progress that we made in fiscal 2024, particularly in our Transformation Program Ascend 2026, and intend to carry that momentum forward to drive further performance, as proven by our fiscal 2025 guidance, which anticipates core revenue growth in the range of 3% to 5%, with continued margin expansion and a renewed focus on free cash flow."

 

Mr. Marotta continued, “Azenta offers a unique portfolio of differentiated products and services and occupies a strong position in the marketplace. Our competitively advantaged portfolio of businesses, coupled with the capabilities of the Value Creation Committee, supported by the full Board, will accelerate our goal of delivering profitable growth and long-term shareholder value creation.” 

 

 

Fourth Quarter Fiscal 2024 Results

 

Revenue was $170 million, down 1% year over year. Organic revenue declined 2% year over year, which excludes the impact from foreign exchange of less than 1 percentage point. The year-over-year revenue decline was attributable to lower B Medical Systems (“B Medical”) revenue. The combined Sample Management Solutions and Multiomics business segments grew 5% on an organic basis.

 

Sample Management Solutions revenue was $85 million, up 4% year over year.

  o

Organic revenue was up 3%, mainly driven by continued strength in Sample Repository Services and Core Products, particularly in Cryogenic Stores and Consumables and Instruments. This was partially offset by a year-over-year revenue decline in Stores.

 

Multiomics revenue was $66 million, up 8% year over year.

  o

Organic revenue also grew 8% year over year, primarily driven by growth in Next Generation Sequencing, partially offset by a year-over-year decline in Sanger sequencing revenue.

 

B Medical Systems revenue was $19 million, down 35% year over year.

  o

Organic revenue also declined 35% year over year, mainly due to lower order volume in the quarter compared to the prior year, primarily attributable to timing of orders.  

 

Summary of GAAP Earnings Results

 

Operating loss was $12 million. Operating margin increased 240 basis points year over year.

 

o

Gross margin was 40.8%, up 130 basis points year over year, driven by favorable product mix, operational efficiencies, and cost reduction initiatives, partially offset by increased amortization and transformation costs.

 

o

Operating expenses were $82 million, down 300 basis points year over year, primarily driven by lower selling, general and administrative expenses and lower amortization, partially offset by increased restructuring and transformation costs.

 

Other income included $6 million of net interest income versus $11 million in the prior year period.

 

Diluted EPS from continuing operations was ($0.10) compared to $0.05 one year ago.

 

Summary of Non-GAAP Earnings Results

 

Adjusted operating income was $7 million. Operating margin was 4.1%, an improvement of 460 basis points year over year.

 

o

Adjusted gross margin was 45.0%, up 220 basis points year over year, primarily driven by favorable product mix, operating efficiencies, and cost reduction initiatives.

 

o

Adjusted operating expense in the quarter was $69 million, down 700 basis points year over year, primarily driven by the benefit of cost reduction initiatives and lower commissions on cold chain sales in B Medical. 

 

Adjusted EBITDA was $17 million, and Adjusted EBITDA margin was 10.2 %, up 560 basis points year over year.

 

Non-GAAP Diluted EPS was $0.18, compared to $0.13 one year ago.

 ​

Full Year Fiscal 2024 Results

 

Revenue for fiscal 2024 was $656 million, down 1% year over year. Organic revenue declined 2%, which excludes the impact from foreign exchange of less than 1 percentage point and a nominal contribution from acquisitions. The year-over-year revenue decline was attributable to lower B Medical revenue. The combined Sample Management Solutions and Multiomics business segments grew 4% on an organic basis.

 

Sample Management Solutions revenue was $319 million, up 5 % year over year.

 

o

Organic revenue was up 4%. The year-over-year revenue increase was driven by growth in both, the Sample Repository Services and Core Products businesses.

 

Multiomics revenue was $255 million, up 3% year over year.

  o

Organic revenue also grew 3% year over year, driven by growth in Next Generation Sequencing and Gene Synthesis services, partially offset by a year-over-year decline in Sanger sequencing revenue.

 

B Medical Systems revenue was $83 million, down 27% year over year.

  o

Organic revenue was also down 27% year over year, primarily driven by the timing of cold chain equipment orders.

 

 

2

 

Summary of GAAP Results

 

Operating loss was $201 million. Operating margin decreased 19.6% year over year.

 

o

Gross margin was 40.1%, up 60 basis points year over year, primarily driven by favorable product mix, operating efficiencies and cost reduction initiatives, as well as purchase accounting impacts on inventory in the prior year which did not reoccur, partially offset by increased amortization and transformation costs.

 

o

Operating expense was $464 million, up 38% year over year due to a $116 million non-cash impairment of goodwill and intangible assets, increased transformation and restructuring charges, and a benefit of $18.5 million of fair value contingent consideration adjustments related to B Medical recognized in the prior fiscal year that did not reoccur; these increases were partially offset by lower M&A costs and the benefit of our cost reduction initiatives.

 

Other income included $33 million of net interest income versus $44 million in the prior year period.

 

Diluted EPS from continuing operations was ($3.09) compared to ($0.19) in fiscal 2023

 ​

Summary of Non-GAAP Results

 

Adjusted operating loss was $3 million and operating margin was (0.4%), an improvement of 190 basis points year over year.

 

o

Adjusted gross margin was 44.5%, up 70 basis points year over year, primarily driven by favorable product mix, operating efficiencies and cost reduction initiatives, partially offset by margin pressure from lower revenue in the B Medical segment.

 

o

Adjusted operating expense was $295 million, down 400 basis points year over year, primarily driven by the benefit of cost reduction initiatives and lower commissions on cold chain sales in B Medical.

 

Adjusted EBITDA was $49 million, and Adjusted EBITDA margin was 7.5%, an improvement of about 300 basis points year over year.

 

Non-GAAP Diluted EPS for fiscal 2024 was $0.41, compared to $0.31 in fiscal 2023.

 ​

Cash and Liquidity as of September 30, 2024

 

The Company ended fiscal year 2024 with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $522 million.

 

Capital expenditures were $13 million in the quarter and $38 million for the full year.

 ​

Share Repurchase Program Update

 

In the fourth quarter, the Company repurchased approximately 4.9 million shares for approximately $249 million under a 10b5-1 trading program.

 

The Company completed the repurchases of its common stock under the 2022 Repurchase Authorization in September 2024. As of September 30, 2024, we have repurchased and retired 30.0 million shares of common stock for the full $1.5 billion approved.

 

Review of Statements of Cash Flows

As part of the year end closing process, the Company is currently reviewing the classification of amounts, primarily between the line items “effects of exchange rate changes on cash and cash equivalents” and “cash provided by operating activities in the Company’s consolidated statements of cash flows that could potentially impact those line items in our previously issued statements of cash flows for fiscal year ended September 30, 2023 and fiscal 2024 quarterly periods. As a result, the Company has not included statements of cash flows in this release. The Company’s consolidated balance sheets and statements of operations are not impacted by any reclassification of these cash flow items for any period.  The Company expects to reflect any changes to the previously issued statements of cash flows in its Annual Report of Form 10-K for the fiscal year ended September 30, 2024.

 

 

Guidance for Continuing Operations for Full Year Fiscal 2025 Excluding B Medical Systems 

 

Total organic revenue is expected to grow in the range of 3% to 5% relative to fiscal 2024.

 

Adjusted EBITDA margin expansion is expected to be approximately 300 basis points relative to fiscal 2024.

 

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, and other gains and charges that are not representative of the normal operations of the business.

 

Pursuing Sale of B Medical Systems Segment

Azenta has announced it is pursuing a sale of its B Medical Systems segment, a manufacturer and global distributor of medical refrigeration devices based in Luxembourg. This action will simplify Azenta’s portfolio and allow management to focus on driving revenue growth and profitability in its core businesses. The decision follows work by the Board of Directors to evaluate strategic, operational and financial opportunities to maximize value.

 

Azenta does not intend to comment further on the process unless and until the Company has determined a specific course of action or otherwise determined that further disclosure is appropriate or required by law.

 

Names Lawrence Lin Chief Financial Officer

The Company has also named Lawrence Y. Lin as Chief Financial Officer, succeeding Herman Cueto, effective after the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 is filed with the Securities and Exchange Commission. Mr. Cueto will remain as an advisor for a period of time to help facilitate a seamless transition.

 

Mr. Lin joins Azenta from GeoStabilization International LLC (“GSI”), a privately held industrial company, and brings over twenty years of finance experience, including previously holding senior finance roles at PHC Holdings and Danaher. 

 

Mr. Marotta commented, “We’re excited to have Lawrence join the Azenta team. Lawrence is an accomplished finance executive with a proven track record and a skillset that aligns perfectly with Azenta’s needs for its next phase of transformation.” 

 

Mr. Marotta continued, “We will benefit from the many significant contributions Herman made during his time at Azenta, including notably, the development of Ascend 2026, which is already driving considerable margin expansion. He played a key role in laying a terrific foundation on which to build. We wish him the best going forward.” 

 

Before joining GSI, Mr. Lin was Senior Vice President of Finance Operations at PHC Holdings Corporation (TSE: 6523), a leading diversified diagnostic, life sciences and medical device company based in Japan. Prior roles include Vice President of Finance for North America (CFO) and Global Functions at LivaNova (NYSE: LIVN), a global medical technology company, and Vice President of Finance Operations at KaVo Kerr, previously part of Danaher (NYSE: DHR), which was spun off as an independent public company named Envista (NYSE: NVST) in 2019. Mr. Lin holds a bachelor’s degree in finance from California State University, Fullerton.

 

Conference Call and Webcast

Azenta management will webcast its fourth quarter and full year fiscal 2024 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

 

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay. 

 ​

3

Regulation G Use of Non-GAAP financial Measures

The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

 ​

“Safe Harbor Statement under Section 21E of the Securities Exchange Act of 1934

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta’s financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about our revenue and earnings expectations, the potential impact of the review of our statements of cash flows on our previously issued statements of cash flows for the fiscal year ended September 30, 2023 and fiscal 2024 quarterly periods, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.

 

About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey and B Medical Systems.

 

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe and Asia. For more information, please visit www.azenta.com.

 

AZENTA INVESTOR CONTACTS:

 

Yvonne Perron

Vice President, Financial Planning & Analysis and Investor Relations

ir@azenta.com

 

Sherry Dinsmore

sherry.dinsmore@azenta.com

 ​

4

 

AZENTA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

(In thousands, except per share data)

 

 

Three Months Ended

   

Year Ended

 

 

September 30,

   

September 30,

 

 

2024

   

2023

   

2024

   

2023

 

Revenue

 

   

   

   

 

Products

  $ 62,234     $ 72,180     $ 243,407     $ 277,191  

Services

    107,828       100,177       412,916       387,881  

Total revenue

    170,062       172,357       656,323       665,072  

Cost of revenue

 

   

   

   

 

Products

    44,043       49,235       170,094       186,090  

Services

    56,606       55,088       222,862       215,842  

Total cost of revenue

    100,649       104,323       392,956       401,932  

Gross profit

    69,413       68,034       263,367       263,140  

Operating expenses

 

   

   

   

 

Research and development

    8,412       8,932       33,525       33,956  

Selling, general and administrative

    72,014       74,926       302,737       316,282  

Impairment of goodwill and intangible assets

                115,975        

Contingent consideration - fair value adjustments

                      (18,549 )

Restructuring charges

    1,279       804       11,808       4,577  

Total operating expenses

    81,705       84,662       464,045       336,266  

Operating loss

    (12,292 )     (16,628 )     (200,678 )     (73,126 )

Other income (expense)

 

   

   

   

 

Interest income

    5,527       11,329       33,177       43,735  

Other, net

    (472 )     (338 )     178       (1,042 )

Loss before income taxes

    (7,237 )     (5,637 )     (167,323 )     (30,433 )

Income tax (benefit) expense

    (2,253 )     (8,443 )     (3,153 )     (17,550 )

Income (loss) from continuing operations

    (4,984 )     2,806       (164,170 )     (12,883 )

Income (loss) from discontinued operations, net of tax

          569             (1,374 )

Net income (loss)

  $ (4,984 )   $ 3,375     $ (164,170 )   $ (14,257 )

Basic net income (loss) per share:

 

   

   

   

 

Income (loss) from continuing operations

  $ (0.10 )   $ 0.05     $ (3.09 )   $ (0.19 )

Income (loss) from discontinued operations, net of tax

          0.01             (0.02 )

Net income (loss) per share

  $ (0.10 )   $ 0.06     $ (3.09 )   $ (0.22 )

Diluted net income (loss) per share:

 

   

                 

Income (loss) from continuing operations

  $ (0.10 )   $ 0.05     $ (3.09 )   $ (0.19 )

Income (loss) from discontinued operations, net of tax

          0.01             (0.02 )

Diluted net income (loss) per share

  $ (0.10 )   $ 0.06     $ (3.09 )   $ (0.22 )

Weighted average shares used in computing net income (loss) per share:

 

   

                 

Basic

    48,079       59,603       53,175       66,253  

Diluted

    48,079       59,692       53,175       66,253  

 

5

 

AZENTA, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

 ​

   

September 30,

   

September 30,

 
   

2024

   

2023

 
                 

Assets

               

Current assets

               

Cash and cash equivalents

  $ 310,929     $ 678,910  

Short-term marketable securities

    151,162       338,873  

Accounts receivable, net of allowance for expected credit losses ($6,558 and $8,057, respectively)

    172,711       156,535  

Inventories

    115,256       128,198  

Derivative asset

          13,036  

Short-term restricted cash

    2,069       4,650  

Prepaid expenses and other current assets

    80,680       98,754  

Total current assets

    832,807       1,418,956  

Property, plant and equipment, net

    202,654       205,744  

Long-term marketable securities

    49,454       111,338  

Long-term deferred tax assets

    837       571  

Operating lease right-of-use assets

    63,992       66,580  

Goodwill

    691,409       784,339  

Intangible assets, net

    248,030       294,301  

Other assets

    10,858       3,891  

Total assets

  $ 2,100,041     $ 2,885,720  

Liabilities and stockholders' equity

               

Current liabilities

               

Accounts payable

  $ 44,433     $ 35,796  

Deferred revenue

    31,978       34,614  

Accrued warranty and retrofit costs

    10,129       10,223  

Accrued compensation and benefits

    30,713       33,911  

Accrued customer deposits

    22,324       17,707  

Accrued VAT payable

    106       20,595  

Accrued income taxes payable

    13,278       7,378  

Accrued expenses and other current liabilities

    51,878       50,704  

Total current liabilities

    204,839       210,928  

Long-term tax reserves

    398       380  

Long-term deferred tax liabilities

    54,177       67,301  

Long-term operating lease liabilities

    58,792       60,436  

Other long-term liabilities

    12,868       12,175  

Total liabilities

    331,074       351,220  
                 

Stockholders' equity

               

Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding

           

Common stock, $0.01 par value - 125,000,000 shares authorized, 59,031,953 shares issued and 45,570,084 shares outstanding at September 30, 2024, 71,294,247 shares issued and 57,832,378 shares outstanding at September 30, 2023

    590       713  

Additional paid-in capital

    505,958       1,156,160  

Accumulated other comprehensive loss

    (13,464 )     (62,426 )

Treasury stock, at cost - 13,461,869 shares at September 30, 2024 and September 30, 2023

    (200,956 )     (200,956 )

Retained earnings

    1,476,839       1,641,009  

Total stockholders' equity

    1,768,967       2,534,500  

Total liabilities and stockholders' equity

  $ 2,100,041     $ 2,885,720  

 

6

 

Notes on Non-GAAP Financial Measures

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company’s business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

 ​

 

Quarter Ended

 

 

September 30, 2024

   

June 30, 2024

   

September 30, 2023

 

 

   

per diluted

   

   

per diluted

   

   

per diluted

 

Dollars in thousands, except per share data

 

$

   

share

   

$

   

share

   

$

   

share

 

Net income (loss) from continuing operations

  $ (4,984 )   $ (0.10 )   $ (6,582 )   $ (0.12 )   $ 2,806     $ 0.05  

Adjustments:

 

   

   

   

   

   

 

Amortization of completed technology

    6,454       0.13       6,316       0.12       4,769       0.08  

Purchase accounting impact on inventory

                            927       0.02  

Amortization of intangible assets other than completed technology

    6,364       0.13       6,621       0.13       7,481       0.13  

Rebranding and transformation costs(1)

    5,114       0.11       4,255       0.08       (15 )      

Restructuring charges

    1,279       0.03       2,064       0.04       804       0.01  

Merger and acquisition costs and costs related to share repurchase(2)

    52             74             1,767       0.03  

Tax adjustments(3)

    (561 )     (0.01 )     (9 )           (6,691 )     (0.11 )

Tax effect of adjustments

    (4,870 )     (0.10 )     (4,000 )     (0.09 )     (4,379 )     (0.07 )

Non-GAAP adjusted net income from continuing operations

  $ 8,848     $ 0.18     $ 8,739     $ 0.16     $ 7,469     $ 0.13  

Stock-based compensation, pre-tax

    1,845       0.04       3,818       0.07       (715 )     (0.01 )

Tax rate

    14 %           15 %           15 %      

Stock-based compensation, net of tax

    1,587       0.03       3,245       0.07       (608 )     (0.01 )

Non-GAAP adjusted net income excluding stock-based compensation - continuing operations

  $ 10,435     $ 0.22     $ 11,984     $ 0.23     $ 6,861     $ 0.11  

 

   

   

   

   

   

 

Shares used in computing non-GAAP diluted net income per share

            48,079               52,963               59,692  

 

7

 

 

Year Ended

 

 

September 30, 2024

   

September 30, 2023

 

 

   

per diluted

   

   

per diluted

 

Dollars in thousands, except per share data

 

$

   

share

   

$

   

share

 

Net loss from continuing operations

  $ (164,170 )   $ (3.09 )   $ (12,883 )   $ (0.19 )

Adjustments:

 

   

   

   

 

Amortization of completed technology

    24,770       0.47       18,494       0.28  

Purchase accounting impact on inventory

                9,664       0.15  

Amortization of intangible assets other than completed technology

    26,500       0.50       29,884       0.45  

Rebranding and transformation costs(1)

    13,856       0.26       (49 )      

Restructuring charges

    11,808       0.22       4,577       0.07  

Impairment of goodwill and intangible assets

    115,975       2.18              

Contingent consideration - fair value adjustments

                (18,549 )     (0.28 )

Merger and acquisition costs and costs related to share repurchase(2)

    4,874       0.09       13,842       0.21  

Indemnification asset release

                (19 )      

Tax adjustments(3)

    2,945       0.06       (8,102 )     (0.12 )

Tax effect of adjustments

    (14,758 )     (0.28 )     (16,260 )     (0.25 )

Other special charges

    4                    

Non-GAAP adjusted net income from continuing operations

  $ 21,804     $ 0.41     $ 20,599     $ 0.31  

Stock-based compensation, pre-tax

    14,467       0.27       9,497       0.14  

Tax rate

    14 %           15 %      

Stock-based compensation, net of tax

    12,442       0.23       8,072       0.12  

Non-GAAP adjusted net income excluding stock-based compensation - continuing operations

  $ 34,246     $ 0.64     $ 28,671     $ 0.43  

 

   

   

   

 

Shares used in computing non-GAAP diluted net income per share

          53,175             66,253  

 

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 cost reduction plan, and primarily relate to one time asset write-downs associated with changes in technology, one time inventory write-downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2)

Includes expenses related to governance-related matters.

(3)

Tax adjustments during all periods include adjustments to tax benefits related to stock-based compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the twelve months ended September 30, 2023 also include a $1.4M increase in expense related to the exclusion of a benefit from an incentive tax rate change in China, and the exclusion of a one-time GAAP tax benefit related to the outside basis difference of a foreign subsidiary of $6.1 million. 

 

 

Quarter Ended

   

Year Ended

 

 

September 30,

   

June 30,

   

September 30,

   

September 30,

   

September 30,

 

Dollars in thousands

 

2024

   

2024

   

2023

   

2024

   

2023

 

GAAP net income (loss)

  $ (4,984 )   $ (6,582 )   $ 3,375     $ (164,170 )   $ (14,257 )

Less: Income (loss) from discontinued operations

                569             (1,374 )

GAAP net income (loss) from continuing operations

    (4,984 )     (6,582 )     2,806       (164,170 )     (12,883 )

Adjustments:

 

   

   

   

   

 

Less: Interest income, net

    (5,527 )     (8,004 )     (11,329 )     (33,177 )     (43,735 )

Add / Less: Income tax benefit

    (2,253 )     (450 )     (8,443 )     (3,153 )     (17,550 )

Add: Depreciation

    9,055       9,749       9,891       37,500       37,206  

Add: Amortization of completed technology

    6,454       6,316       4,769       24,770       18,494  

Add: Amortization of intangible assets other than completed technology

    6,364       6,621       7,481       26,500       29,884  

Earnings before interest, taxes, depreciation and amortization - Continuing operations

  $ 9,109     $ 7,650     $ 5,175     $ (111,730 )   $ 11,416  

 

8

 

 

Quarter Ended

   

Year Ended

 

 

September 30,

   

June 30,

   

September 30,

   

September 30,

   

September 30,

 

Dollars in thousands

 

2024

   

2024

   

2023

   

2024

   

2023

 

Earnings before interest, taxes, depreciation and amortization - Continuing operations

  $ 9,109     $ 7,650     $ 5,175     $ (111,730 )   $ 11,416  

Adjustments:

 

   

   

   

   

 

Add: Stock-based compensation

    1,845       3,818       (715 )     14,467       9,497  

Add: Purchase accounting impact on inventory

                927             9,664  

Add: Restructuring charges

    1,279       2,064       804       11,808       4,577  

Add: Impairment of goodwill and intangible assets

                      115,975        

Add: Merger and acquisition costs and costs related to share repurchase(2)

    52       74       1,767       4,874       13,842  

Less: Contingent consideration - fair value adjustments

                            (18,549 )

Less: Rebranding and transformation costs(1)

    5,114       4,255       (15 )     13,856       (49 )

Less: Indemnification asset release

                            (19 )

Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations

  $ 17,399     $ 17,861     $ 7,943     $ 49,250     $ 30,379  

 

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 cost reduction plan, and primarily relate to one time asset write-downs associated with changes in technology, one time inventory write-downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.
(2) Includes expenses related to governance-related matters.

 

 

Quarter Ended

 

Dollars in thousands

 

September 30, 2024

   

June 30, 2024

   

September 30, 2023

 

GAAP gross profit

  $ 69,413       40.8 %   $ 69,056       40.0 %   $ 68,034       39.5 %

Adjustments:

 

   

               

   

 

Amortization of completed technology

    6,454       3.8 %     6,316       3.7 %     4,769       2.8 %

Purchase accounting impact on inventory

                            927       0.5 %

Rebranding and transformation costs(1)

    588       0.3 %     2,656       1.5 %            

Non-GAAP adjusted gross profit

  $ 76,455       45.0 %   $ 78,028       45.2 %   $ 73,730       42.8 %

 

 

Year Ended

 

Dollars in thousands

 

September 30, 2024

   

September 30, 2023

 

GAAP gross profit

  $ 263,367       40.1 %   $ 263,140       39.6 %

Adjustments:

       

         

 

Amortization of completed technology

    24,770       3.8 %     18,494       2.8 %

Purchase accounting impact on inventory

                9,664       1.4 %

Rebranding and transformation costs(1)

    3,953       0.6 %            

Non-GAAP adjusted gross profit

  $ 292,090       44.5 %   $ 291,298       43.8 %

 ​

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 cost reduction plan, and primarily relate to one time asset write-downs associated with changes in technology, one time inventory write-downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

 

9

 

 

Sample Management Solutions

   

Multiomics

 

 

Quarter Ended

   

Quarter Ended

 

 

September 30,

   

June 30,

   

September 30,

   

September 30,

   

June 30,

   

September 30,

 

Dollars in thousands

 

2024

   

2024

   

2023

   

2024

   

2024

   

2023

 

GAAP gross profit

  $ 39,541       46.6 %   $ 36,279       45.0 %   $ 38,296       46.8 %   $ 30,043       45.5 %   $ 29,199       45.9 %   $ 26,808       43.9 %

Adjustments:

 

   

                   

   

   

   

                   

   

 

Amortization of completed technology

    1,056       1.2 %     1,010       1.3 %     867       1.1 %     1,040       1.6 %     1,038       1.6 %     1,211       2.0 %

Transformation costs(1)

    145       0.2 %     (127 )     (0.2 )%                                                

Non-GAAP adjusted gross profit

  $ 40,742       48.0 %   $ 37,162       46.1 %   $ 39,163       47.9 %   $ 31,083       47.1 %   $ 30,237       47.5 %   $ 28,019       45.8 %
                                                                                                 
   

B Medical Systems

   

Total Segments

 
   

Quarter Ended

   

Quarter Ended

 
   

September 30,

   

June 30,

   

September 30,

   

September 30,

   

June 30,

   

September 30,

 

Dollars in thousands

 

2024

   

2024

   

2023

   

2024

   

2024

   

2023

 

GAAP gross profit

  $ (173 )     (0.9 )%   $ 3,578       12.5 %   $ 2,930       10.0 %   $ 69,413       40.8 %   $ 69,056       40.0 %   $ 68,034       39.5 %

Adjustments:

 

   

                   

   

   

           

           

         

Amortization of completed technology

    4,358       22.7 %     4,268       15.0 %     2,691       9.1 %     6,454       3.8 %     6,316       3.7 %     4,769       2.8 %

Purchase accounting impact on inventory

                            927       3.1 %                             927       0.5 %

Transformation costs(1)

    442       2.3 %     2,783       9.8 %                 588       0.3 %     2,656       1.5 %            

Non-GAAP adjusted gross profit

  $ 4,627       24.1 %   $ 10,629       37.3 %   $ 6,548       22.3 %   $ 76,455       45.0 %   $ 78,028       45.2 %   $ 73,730       42.8 %

 

 

Sample Management Solutions

   

Multiomics

 

 

Year Ended

   

Year Ended

 

Dollars in thousands

 

September 30, 2024

   

September 30, 2023

   

September 30, 2024

   

September 30, 2023

 

GAAP gross profit

  $ 142,035       44.6 %   $ 132,806       43.7 %   $ 115,434       45.3 %   $ 109,820       44.2 %

Adjustments:

 

   

   

   

   

   

   

   

 

Amortization of completed technology

    3,909       1.2 %     2,973       1.0 %     4,157       1.6 %     4,874       2.0 %

Transformation costs(1)

    377       0.1 %                                    

Non-GAAP adjusted gross profit

  $ 146,321       45.9 %   $ 135,779       44.7 %   $ 119,591       47.0 %   $ 114,694       46.2 %
                                                                 
                                                                 
   

B Medical Systems

   

Total Segments

 
   

Year Ended

   

Year Ended

 

Dollars in thousands

 

September 30, 2024

   

September 30, 2023

   

September 30, 2024

   

September 30, 2023

 

GAAP gross profit

  $ 5,895       7.1 %   $ 20,514       18.1 %   $ 263,367       40.1 %   $ 263,140       39.6 %

Adjustments:

 

   

   

   

                            $  

Amortization of completed technology

    16,704       20.1 %     10,647       9.4 %     24,770       3.8 %     18,494       2.8 %

Purchase accounting impact on inventory

                9,664       8.5 %                 9,664       1.4 %

Transformation costs(1)

    3,576       4.3 %                 3,953       0.6 %            

Other adjustment

                (1 )                              

Non-GAAP adjusted gross profit

  $ 26,175       31.5 %   $ 40,824       36.1 %   $ 292,090       44.5 %   $ 291,298       43.8 %

 

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 cost reduction plan, and primarily relate to one time asset write-downs associated with changes in technology, one time inventory write-downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

 

10

 

 

Sample Management Solutions

   

Multiomics

   

B Medical Systems

 

 

Quarter Ended

   

Quarter Ended

   

Quarter Ended

 

 

September 30,

   

June 30,

   

September 30,

   

September 30,

   

June 30,

   

September 30,

   

September 30,

   

June 30,

   

September 30,

 

Dollars in thousands

 

2024

   

2024

   

2023

   

2024

   

2024

   

2023

   

2024

   

2024

   

2023

 

GAAP operating income (loss)

  $ 8,641     $ 2,469     $ 4,992     $ (1,888 )   $ (1,768 )   $ (4,502 )   $ (6,815 )   $ (5,142 )   $ (7,153 )

Adjustments:

 

           

      .               .       .               .  

Amortization of completed technology

    1,056       1,010       867       1,040       1,038       1,211       4,358       4,268       2,691  

Purchase accounting impact on inventory

                                                    927  

Amortization of intangible assets other than completed technology

          51       51                                      

Transformation costs(1)

    163       (127 )                             442       2,783        

Other adjustment

          1                                     (1 )     (1 )

Non-GAAP adjusted operating income (loss)

  $ 9,860     $ 3,404     $ 5,910     $ (848 )   $ (730 )   $ (3,291 )   $ (2,015 )   $ 1,908     $ (3,536 )

 

 

Total Segments

 

Corporate

 

Total

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

June 30,

 

September 30,

Dollars in thousands

 

2024

 

2024

 

2023

 

2024

 

2024

 

2023

 

2024

 

2024

 

2023

GAAP operating income (loss)

 

$ (62)

 

$ (4,441)

 

$ (6,663)

 

$ (12,230)

 

$ (10,313)

 

$ (9,965)

 

$ (12,292)

 

$ (14,754)

 

$ (16,628)

Adjustments:

 

 

 

 

 

 

 

 

 

Amortization of completed technology

 

6,454

 

6,316

 

4,769

 

 

 

 

6,454

 

6,316

 

4,769

Purchase accounting impact on inventory

 

 

 

927

 

 

 

 

 

 

927

Amortization of intangible assets other than completed technology

 

 

51

 

51

 

6,364

 

6,570

 

7,430

 

6,364

 

6,621

 

7,481

Rebranding and transformation costs(1)

 

605

 

2,656

 

 

4,509

 

1,599

 

(15)

 

5,114

 

4,255

 

(15)

Restructuring charges

 

 

 

 

1,279

 

2,064

 

804

 

1,279

 

2,064

 

804

Contingent consideration - fair value adjustments

 

 

 

 

 

 

 

 

 

Merger and acquisition costs and costs related to share repurchase(2)

 

 

 

 

52

 

74

 

1,767

 

52

 

74

 

1,767

Other adjustment

 

 

 

(1)

 

2

 

(1)

 

 

2

 

(1)

 

(1)

Non-GAAP adjusted operating income (loss)

 

$ 6,997

 

$ 4,582

 

$ (917)

 

$ (24)

 

$ (7)

 

$ 21

 

$ 6,973

 

$ 4,575

 

$ (896)

 

 

Sample Management Solutions

 

Multiomics

 

B Medical Systems

 

Year Ended

 

Year Ended

 

Year Ended

   

September 30,

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

September 30,

Dollars in thousands   2024   2023   2024   2023   2024   2023

GAAP operating income (loss)

 

$ 6,383

 

$ (5,633)

 

$ (12,152)

 

$ (18,652)

 

$ (25,949)

 

$ (20,757)

Adjustments:

 

 

 

 

 

 

Amortization of completed technology

 

3,909

 

2,973

 

4,157

 

4,874

 

16,704

 

10,647

Purchase accounting impact on inventory

 

 

 

 

 

 

9,664

Amortization of intangible assets other than completed technology

 

154

 

311

 

 

 

 

1,366

Transformation costs(1)

 

395

 

 

 

 

3,576

 

Other adjustments

 

 

 

 

(1)

 

 

(1)

Non-GAAP adjusted operating income (loss)

 

$ 10,841

 

$ (2,349)

 

$ (7,995)

 

$ (13,779)

 

$ (5,669)

 

$ 919

 

11

 

 

Total Segments

   

Corporate

   

Total

 

 

Year Ended

   

Year Ended

   

Year Ended

 
   

September 30,

   

September 30,

   

September 30,

   

September 30,

   

September 30,

   

September 30,

 

Dollars in thousands

  2024     2023     2024     2023     2024     2023  

GAAP operating loss

  $ (31,718 )   $ (45,042 )   $ (168,960 )   $ (28,084 )   $ (200,678 )   $ (73,126 )

Adjustments:

 

   

   

   

             

Amortization of completed technology

    24,770       18,494                   24,770       18,494  

Purchase accounting impact on inventory

          9,664                         9,664  

Amortization of intangible assets other than completed technology

    154       1,677       26,346       28,207       26,500       29,884  

Rebranding and transformation costs(1)

    3,971             9,885       (49 )     13,856       (49 )

Restructuring charges

                11,808       4,577       11,808       4,577  

Impairment of goodwill and intangible assets

                    115,975             115,975        

Contingent consideration - fair value adjustments

                      (18,549 )           (18,549 )

Merger and acquisition costs and costs related to share repurchase(2)

                4,874       13,842       4,874       13,842  

Other adjustments

          (2 )           1             (1 )

Non-GAAP adjusted operating loss

  $ (2,823 )   $ (15,209 )   $ (72 )   $ (55 )   $ (2,895 )   $ (15,264 )

 

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 cost reduction plan, and primarily relate to one time asset write-downs associated with changes in technology, one time inventory write-downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2)

Includes expenses related to governance-related matters.

 

   

Sample Management Solutions

   

Multiomics

   

B Medical Systems

   

Azenta Total

 
   

Quarter Ended

   

Quarter Ended

   

Quarter Ended

   

Quarter Ended

 

 

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

 

Dollars in millions

 

2024

   

2023

   

Change

   

2024

   

2023

   

Change

   

2024

   

2023

   

Change

   

2024

   

2023

   

Change

 

Revenue

  $ 85     $ 82       4 %   $ 66     $ 61       8 %   $ 19     $ 29       (35 )%   $ 170     $ 172       (1 )%

Acquisitions/divestitures

                0 %                 0 %                 0 %                 0 %

Currency exchange rates

    0             (0 )%     0             (0 )%     0             (1 )%     1             (0 )%

Organic revenue

  $ 85     $ 82       3 %   $ 66     $ 61       8 %   $ 19     $ 29       (35 )%   $ 169     $ 172       (2 )%

 ​​

 

Sample Management Solutions

   

Multiomics

   

B Medical Systems

   

Azenta Total

 

 

Year Ended

   

Year Ended

   

Year Ended

   

Year Ended

 

 

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

   

September 30,

   

September 30,

   

 

Dollars in millions

 

2024

   

2023

   

Change

   

2024

   

2023

   

Change

   

2024

   

2023

   

Change

   

2024

   

2023

   

Change

 

Revenue

  $ 319     $ 304       5 %   $ 255     $ 248       3 %   $ 83     $ 113       (27 )%   $ 656     $ 665       (1 )%

Acquisitions/divestitures

    1             (0 )%                 0 %                 0 %     1             (0 )%

Currency exchange rates

    1             (0 )%     (1 )           0 %     1             (1 )%     1             (0 )%

Organic revenue

  $ 316     $ 304       4 %   $ 255     $ 248       3 %   $ 82     $ 113       (27 )%   $ 654     $ 665       (2 )%

 

12