QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ |
Accelerated filer |
☐ | ||||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
PAGE |
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Item 1. |
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4 |
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5 |
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6 |
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7 |
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Item 2. |
25 |
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Item 3. |
34 |
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Item 4. |
35 |
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Item 1. |
36 |
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Item 1A. |
36 |
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Item 2. |
36 |
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Item 3. |
36 |
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Item 4. |
36 |
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Item 5. |
36 |
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Item 6. |
37 |
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38 |
ITEM 1. |
Financial Statements |
June 30, |
December 31, |
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2021 |
2020 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, net of reserves of $ |
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Inventories, net |
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Prepaid expenses and other current assets |
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Total current assets |
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Noncurrent assets: |
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Property, plant and equipment, net |
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Intangible assets, net |
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Goodwill |
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Deferred tax assets |
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Operating lease right of use assets |
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Other noncurrent assets |
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Total noncurrent assets |
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Total assets |
$ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Operating lease liability |
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Accrued liabilities |
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Convertible Senior Notes, current portion, net |
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Total current liabilities |
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Noncurrent liabilities: |
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Deferred tax liabilities |
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Noncurrent operating lease liability |
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Other noncurrent liabilities |
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Total noncurrent liabilities |
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Total liabilities |
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Commitments and contingencies (Note 9) |
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Stockholders’ equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive (loss) income |
( |
) | ||||||
Retained earnings |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | |
$ | |||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Revenue: |
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Products |
$ | $ | $ | $ | ||||||||||||
Royalty and other revenue |
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Total revenue |
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Costs and operating expenses: |
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Cost of product revenue |
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Research and development |
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Selling, general and administrative |
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Total costs and operating expenses |
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Income from operations |
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Other income (expenses): |
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Investment income |
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Interest expense |
( |
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) | ( |
) | ( |
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Other expenses |
( |
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) | ( |
) | ( |
) | ||||||||
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Other expenses, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Income before income taxes |
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Income tax provision |
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Net income |
$ | $ | $ | $ | ||||||||||||
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Earnings per share: |
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Basic |
$ | $ | $ | $ | ||||||||||||
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Diluted |
$ | $ | $ | $ | ||||||||||||
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Weighted average common shares outstanding: |
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Basic |
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Diluted |
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Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): |
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Foreign currency translation adjustment |
( |
) | ||||||||||||||
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Comprehensive income |
$ | $ | $ | $ | ||||||||||||
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Six Months Ended June 30, 2021 |
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Common Stock |
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Number of Shares |
Par Value |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Total Stockholders’ Equity |
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Balance at December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Issuance of common stock for debt conversion |
— | — | ||||||||||||||||||||||
Exercise of stock options and vesting of stock units |
— | — | ||||||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
True up of costs related to the December 2020 |
— | — | ||||||||||||||||||||||
Translation adjustment |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
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Balance at June 30, 2021 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
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Three Months Ended June 30, 2021 |
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Common Stock |
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Number of Shares |
Par Value |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Total Stockholders’ Equity |
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Balance at March 31, 2021 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Exercise of stock options and vesting of stock units |
— | — | ||||||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
Translation adjustment |
— | — | — | — | ||||||||||||||||||||
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Balance at June 30, 2021 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
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Six Months Ended June 30, 2020 |
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Common Stock |
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Number of Shares |
Par Value |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings/ (Accumulated Deficit) |
Total Stockholders’ Equity |
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Balance at December 31, 2019 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Exercise of stock options and vesting of stock units |
— | — | ||||||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
Translation adjustment |
— | — | — | — | ||||||||||||||||||||
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Balance as of June 30, 2020 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
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Three Months Ended June 30, 2020 |
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Common Stock |
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Number of Shares |
Par Value |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Total Stockholders’ Equity |
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Balance at March 31, 2020 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Exercise of stock options and vesting of stock units |
— | — | ||||||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
Translation adjustment |
— | — | — | — | ||||||||||||||||||||
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Balance as of June 30, 2020 |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||
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Six Months Ended June 30, |
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2021 |
2020 |
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Cash flows from operating activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Inventory step-up charges |
— | |||||||
Depreciation and amortization |
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Amortization of debt discount and issuance costs |
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Stock-based compensation expense |
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Deferred income taxes, net |
( |
) | ||||||
Other |
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Changes in operating assets and liabilities, excluding impact of acquisitions: |
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Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
( |
) | ( |
) | ||||
Prepaid expenses and other assets |
( |
) | ( |
) | ||||
Other assets |
( |
) | ||||||
Accounts payable |
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Accrued expenses |
( |
) | ||||||
Long-term liabilities |
( |
) | ||||||
Total cash provided by operating activities |
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Cash flows from investing activities: |
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Acquisitions, net of cash acquired |
— | |||||||
Additions to capitalized software costs |
( |
) | ( |
) | ||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ||||
Total cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities: |
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Proceeds from exercise of stock options |
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Payment of tax withholding obligation on vesting of restricted stock |
— | ( |
) | |||||
Repayment of Convertible Senior Notes |
( |
) | — | |||||
Total cash provided by financing activities |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
( |
) | ||||||
Net increase in cash, cash equivalents and restricted cash |
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Cash, cash equivalents and restricted cash, beginning of period |
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Cash and cash equivalents, end of period |
$ | $ | ||||||
Supplemental disclosure of non-cash investing and financing activities: |
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Assets acquired under operating leases |
$ | $ | ||||||
1. |
Summary of Significant Accounting Policies |
2. |
Fair Value Measurements |
Level 1 – |
Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | |
Level 2 – |
Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. | |
Level 3 – |
Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
3. |
Acquisitions |
Cash consideration |
$ | |||
Equity consideration |
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Contingent consideration |
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Settlement of preexisting liabilities |
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Fair value of net assets acquired |
$ |
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Cash and cash equivalents |
$ | |||
Accounts receivable |
||||
Inventory |
||||
Prepaid expenses and other current assets |
||||
Property and equipment |
||||
Operating lease right of use asset |
||||
Other noncurrent assets |
||||
Customer relationships |
||||
Developed technology |
||||
Trademark and tradename |
||||
Non-competition agreements |
||||
Goodwill |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
Deferred revenue |
( |
) | ||
Deferred tax liabilities, net |
( |
) | ||
Notes payable |
( |
) | ||
Operating lease liability |
( |
) | ||
Operating lease liability, long-term |
( |
) | ||
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Fair value of net assets acquired |
$ |
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Useful life |
Fair Value |
|||||||
(Amounts in thousands) |
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Customer relationships |
$ | |||||||
Developed technology |
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Trademark and tradename |
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Non-competition agreements |
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$ | ||||||||
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Cash and cash equivalents |
$ | |||
Accounts receivable |
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Inventory |
||||
Prepaid expenses and other current assets |
||||
Property and equipment |
||||
Operating lease right of use asset |
||||
Customer relationships |
||||
Developed technology |
||||
Trademark and tradename |
||||
Non-competition agreements |
||||
Goodwill |
||||
Deferred tax assets |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
Operating lease liability |
( |
) | ||
Operating lease liability, long-term |
( |
) | ||
Fair value of net assets acquired |
$ |
|||
Useful life |
Fair Value |
|||||||
(Amounts in thousands) |
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Customer relationships |
$ | |||||||
Developed technology |
||||||||
Trademark and tradename |
||||||||
Non-competition agreements |
||||||||
$ | ||||||||
Cash and cash equivalents |
$ | |||
Accounts receivable |
||||
Inventory |
||||
Prepaid expenses and other current assets |
||||
Property and equipment |
||||
Operating lease right of use assets |
||||
Customer relationships |
||||
Developed technology |
||||
Trademark and tradename |
||||
Non-compete agreements |
||||
Goodwill |
||||
Deferred tax asset |
||||
Accounts payable |
( |
) | ||
Accrued liabilities |
( |
) | ||
Operating lease liability |
( |
) | ||
Operating lease liability, long-term |
( |
) | ||
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|
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Fair value of net assets acquired |
$ |
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Useful life |
Fair Value |
|||||||
(Amounts in thousands) |
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Customer relationships |
$ | |||||||
Developed technology |
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Trademark and tradename |
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Non-competition agreements |
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$ | ||||||||
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4. |
Revenue Recognition |
Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
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(Amounts in thousands) |
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Product revenue |
$ | $ | $ | $ | ||||||||||||
Royalty and other income |
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Total revenue |
$ | $ | $ | $ | ||||||||||||
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Three Months Ended June 30, 2020 |
Six Months Ended June 30, 2020 |
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(Amounts in thousands) |
||||||||
Cytiva |
$ | $ | ||||||
MilliporeSigma |
$ | $ |
2021 |
||||
Balances from contracts with customers only: |
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Accounts receivable, net of reserves |
$ | |||
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) |
$ | |||
Revenue recognized during the six-month period ended June 30, 2021 relating to: |
||||
The beginning deferred revenue balance |
$ | |||
Changes in pricing related to products or services satisfied in previous periods |
$ |
5. |
Goodwill and Intangible Assets |
Balance at December 31, 2020 |
$ | |||
Measurement period adjustment - NMS |
( |
) | ||
Measurement period adjustments - ARTeSYN |
( |
) | ||
Cumulative translation adjustment |
( |
) | ||
Balance at June 30, 2021 |
$ | |||
June 30, 2021 |
||||||||||||||||
Gross Carrying Value |
Accumulated Amortization |
Net Carrying Value |
Weighted Average Useful Life (in years) |
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(Amounts in thousands) |
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Finite-lived intangible assets: |
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Technology - developed |
$ | $ | ( |
) | $ | |||||||||||
Patents |
( |
) | — | |||||||||||||
Customer relationships |
( |
) | ||||||||||||||
Trademarks |
( |
) | ||||||||||||||
Other intangibles |
( |
) | ||||||||||||||
Total finite-lived intangible assets |
( |
) | ||||||||||||||
Indefinite-lived intangible asset: |
||||||||||||||||
Trademarks |
— | — | ||||||||||||||
Total intangible assets |
$ | $ | ( |
) | $ | |||||||||||
December 31, 2020 |
||||||||||||||||
Gross Carrying Value |
Accumulated Amortization |
Net Carrying Value |
Weighted Average Useful Life (in years) |
|||||||||||||
(Amounts in thousands) |
||||||||||||||||
Finite-lived intangible assets: |
||||||||||||||||
Technology - developed |
$ | $ | ( |
) | $ | |||||||||||
Patents |
( |
) | — | |||||||||||||
Customer relationships |
( |
) | ||||||||||||||
Trademarks |
( |
) | ||||||||||||||
Other intangibles |
( |
) | ||||||||||||||
Total finite-lived intangible assets |
( |
) | ||||||||||||||
Indefinite-lived intangible asset: |
||||||||||||||||
Trademarks |
— | — | ||||||||||||||
Total intangible assets |
$ | $ | ( |
) | $ | |||||||||||
Estimated |
||||
Amortization |
||||
For the Six Months Ended June 30, |
Expense |
|||
2021 (remaining six months) |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 and thereafter |
||||
Total |
$ | |||
6. |
Consolidated Balance Sheet Detail |
June 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
(Amounts in thousands) |
||||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished products |
||||||||
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|
|||||
Total inventories, net |
$ | $ | ||||||
|
|
|
|
June 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
(Amounts in thousands) |
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Land |
$ | $ | ||||||
Buildings |
||||||||
Leasehold improvements |
||||||||
Equipment |
||||||||
Furniture, fixtures and office equipment |
||||||||
Computer hardware and software |
||||||||
Construction in progress |
||||||||
Other |
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|
|||||
Total property, plant and equipment |
||||||||
Less - Accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total property, plant and equipment, net |
$ | $ | ||||||
|
|
|
|
June 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
(Amounts in thousands) |
||||||||
Employee compensation |
$ | $ | ||||||
Income taxes payable |
||||||||
Royalty and license fees |
||||||||
Warranties |
||||||||
Professional fees |
||||||||
Deferred revenue |
||||||||
Other |
||||||||
|
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|
|||||
Total accrued liabilities |
$ | $ | ||||||
|
|
|
|
7. |
Convertible Senior Notes |
June 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
(Amounts in thousands) |
||||||||
0.375% Convertible Senior Notes due 2024: |
||||||||
Principal amount |
$ | $ | ||||||
Unamortized debt discount |
( |
) | ( |
) | ||||
Unamortized debt issuance costs |
( |
) | ( |
) | ||||
|
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|
|||||
Net carrying amount |
$ | $ | ||||||
|
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|
|
8. |
Stockholders’ Equity |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
(Amounts in thousands) |
||||||||||||||||
Cost of product revenue |
$ | $ | $ | $ | ||||||||||||
Research and development |
||||||||||||||||
Selling, general and administrative |
||||||||||||||||
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|||||||||
Total stock-based compensation |
$ | $ | $ | $ | ||||||||||||
|
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Shares |
Weighted average exercise price |
Weighted- Average Remaining Contractual Term (in Years) |
Aggregate Intrinsic Value (in Thousands) |
|||||||||||||
Options outstanding at December 31, 2020 |
$ | $ | ||||||||||||||
Granted |
$ | |||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
Forfeited/expired/cancelled |
( |
) | $ | |||||||||||||
|
|
|||||||||||||||
Options outstanding at June 30, 2021 |
$ | $ | ||||||||||||||
|
|
|||||||||||||||
Options exercisable at June 30, 2021 |
$ | $ | ||||||||||||||
|
|
|||||||||||||||
Vested and expected to vest at June 30, 2021 (1) |
$ | |||||||||||||||
|
|
(1) |
Represents the number of vested options as of June 30, 2021 plus the number of unvested options expected to vest as of June 30, 2021 based on the unvested outstanding options at June 30, 2021 adjusted for estimated forfeiture rates of non-executive level employees and |
Shares |
Weighted- Average Remaining Contractual Term (in Years) |
Aggregate Intrinsic Value (in Thousands) |
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Unvested at December 31, 2020 |
$ | |||||||||||
Awarded |
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Vested |
( |
) | ||||||||||
Forfeited/expired/cancelled |
( |
) | ||||||||||
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Unvested at June 30, 2021 |
$ | |||||||||||
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Unvested and expected to vest at June 30, 2021 (1) |
$ | |||||||||||
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(1) |
Represents the number of vested stock units as of June 30, 2021 plus the number of unvested stock units expected to vest as of June 30, 2021 based on the unvested outstanding stock units at June 30, 2021 adjusted for estimated forfeiture rates of non-executive level employees and |
9. |
Commitments and Contingencies |
10. |
Accumulated Other Comprehensive (Loss) Income |
Foreign |
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Currency |
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Translation |
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Adjustment |
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Balance as of December 31, 2020 |
$ | |||
Other comprehensive loss |
( |
) | ||
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Balance at June 30, 2021 |
$ | ( |
) | |
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11. |
Income Taxes |
12. |
Earnings Per Share |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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(Amounts in thousands, except per share data) |
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Net income |
$ | $ | $ | $ | ||||||||||||
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Weighted average shares used in computing net income per share - basic |
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Effect of dilutive shares: |
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Options and stock units |
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Convertible Senior Notes |
— | |||||||||||||||
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Dilutive potential common shares |
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Weighted average shares used in computing net income per share - diluted |
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Earnings per share: |
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Basic |
$ | $ | $ | $ | ||||||||||||
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Diluted |
$ | $ | $ | $ | ||||||||||||
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13. |
Related Party Transactions |
14. |
Segment Reporting |
Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2021 |
2020 |
2021 |
2020 |
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Revenue by customers’ geographic locations: |
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North America |
% |
% |
% |
% | ||||||||||||
Europe |
% |
% |
% |
% | ||||||||||||
APAC/Other |
% |
% |
% |
% | ||||||||||||
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Total revenue |
% |
% |
% |
% | ||||||||||||
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Three Months Ended June 30, 2020 |
Six Months Ended June 30, 2020 |
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Cytiva |
% | % | ||||||
MilliporeSigma |
% | % |
15. |
Subsequent Event |
Three Months Ended June 30, |
Increase/(Decrease) |
Six Months Ended June 30, |
Increase/(Decrease) |
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2021 |
2020 |
$ Change |
% Change |
2021 |
2020 |
$ Change |
% Change |
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(Amounts in thousands, except for percentage data) |
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Revenue: |
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Products |
$ | 162,920 | $ | 87,432 | $ | 75,488 | 86.3 | % | $ | 305,657 | $ | 163,492 | $ | 142,165 | 87.0 | % | ||||||||||||||||
Royalty and other |
40 | 30 | 10 | 33.3 | % | 140 | 60 | 80 | 133.3 | % | ||||||||||||||||||||||
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Total revenue |
$ | 162,960 | $ | 87,462 | $ | 75,498 | 86.3 | % | $ | 305,797 | $ | 163,552 | $ | 142,245 | 87.0 | % | ||||||||||||||||
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|
|
Three Months Ended June 30, |
Increase/(Decrease) |
Six Months Ended June 30, |
Increase/(Decrease) |
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2021 |
2020 |
$ Change |
% Change |
2021 |
2020 |
$ Change |
% Change |
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(Amounts in thousands, except for percentage data) |
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Cost of product revenue |
$ | 61,990 | $ | 36,863 | $ | 25,127 | 68.2 | % | $ | 121,737 | $ | 68,845 | $ | 52,892 | 76.8 | % | ||||||||||||||||
Research and development |
8,389 | 4,336 | 4,053 | 93.5 | % | 16,001 | 9,038 | 6,963 | 77.0 | % | ||||||||||||||||||||||
Selling, general and administrative |
44,341 | 26,726 | 17,615 | 65.9 | % | 83,436 | 54,226 | 29,210 | 53.9 | % | ||||||||||||||||||||||
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Total costs and operating expenses |
$ | 114,720 | $ | 67,925 | $ | 46,795 | 68.9 | % | $ | 221,174 | $ | 132,109 | $ | 89,065 | 67.4 | % | ||||||||||||||||
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|
Three Months Ended June 30, |
Increase/(Decrease) |
Six Months Ended June 30, |
Increase/(Decrease) |
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2021 |
2020 |
$ Change |
% Change |
2021 |
2020 |
$ Change |
% Change |
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(Amounts in thousands, except for percentage data) |
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Investment income |
$ | 41 | $ | 253 | $ | (212 | ) | (83.8 | %) | $ | 93 | $ | 1,617 | $ | (1,524 | ) | (94.2 | %) | ||||||||||||||
Interest expense |
(3,144 | ) | (3,004 | ) | (140 | ) | 4.7 | % | (6,250 | ) | (5,980 | ) | (270 | ) | 4.5 | % | ||||||||||||||||
Other expenses |
(779 | ) | (766 | ) | (13 | ) | 1.7 | % | (1,003 | ) | (384 | ) | (619 | ) | 161.2 | % | ||||||||||||||||
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Total other expense, net |
$ | (3,882 | ) | $ | (3,517 | ) | $ | (365 | ) | 10.4 | % | $ | (7,160 | ) | $ | (4,747 | ) | $ | (2,413 | ) | 50.8 | % | ||||||||||
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|
Three Months Ended June 30, |
Increase/(Decrease) |
Six Months Ended June 30, |
Increase/(Decrease) |
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2021 |
2020 |
$ Change |
% Change |
2021 |
2020 |
$ Change |
% Change |
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(Amounts in thousands, except for percentage data) |
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Income tax provision |
$ | 8,125 | $ | 159 | $ | 7,966 | 5010.1 | % | $ | 11,780 | $ | 1,020 | $ | 10,760 | 1054.9 | % | ||||||||||||||||
Effective tax rate |
18.3 | % | 1.0 | % | 15.2 | % | 3.8 | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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(Amounts in thousands) |
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GAAP income from operations |
$ | 48,240 | $ | 19,537 | $ | 84,623 | $ | 31,443 | ||||||||
Non-GAAP adjustments to income from operations: |
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Inventory step-up charges |
— | — | 1,598 | — | ||||||||||||
Acquisition and integration costs |
3,218 | 2,134 | 5,769 | 4,687 | ||||||||||||
Intangible amortization |
5,161 | 3,874 | 10,323 | 7,752 | ||||||||||||
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Non-GAAP adjusted income from operations |
$ | 56,619 | $ | 25,545 | $ | 102,313 | $ | 43,882 | ||||||||
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Three Months Ended June 30, |
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2021 |
2020 |
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Fully Diluted |
Fully Diluted |
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Earnings per |
Earnings per |
|||||||||||||||
Amount |
Share |
Amount |
Share |
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(Amounts in thousands, except per share data) |
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GAAP net income |
$ | 36,233 | $ | 0.64 | $ | 15,861 | $ | 0.30 | ||||||||
Non-GAAP adjustments to net income: |
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Acquisition and integration costs |
3,218 | 0.06 | 2,134 | 0.04 | ||||||||||||
Intangible amortization |
5,161 | 0.09 | 3,874 | 0.07 | ||||||||||||
Loss on conversion of debt |
4 | — | — | — | ||||||||||||
Non-cash interest expense |
2,862 | 0.05 | 2,724 | 0.05 | ||||||||||||
Tax effect of non-GAAP charges |
(2,615 | ) | (0.05 | ) | (2,085 | ) | (0.04 | ) | ||||||||
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Non-GAAP adjusted net income |
$ | 44,863 | $ | 0.79 | $ | 22,508 | $ | 0.42 | ||||||||
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Six Months Ended June 30, |
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2021 |
2020 |
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Fully Diluted |
Fully Diluted |
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Earnings per |
Earnings per |
|||||||||||||||
Amount |
Share |
Amount |
Share |
|||||||||||||
(Amounts in thousands, except per share data) |
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GAAP net income |
$ | 65,683 | $ | 1.16 | $ | 25,676 | $ | 0.48 | ||||||||
Non-GAAP adjustments to net income: |
||||||||||||||||
Inventory step-up charges |
1,598 | 0.03 | — | — | ||||||||||||
Acquisition and integration costs |
5,769 | 0.10 | 4,687 | 0.09 | ||||||||||||
Intangible amortization |
10,323 | 0.18 | 7,752 | 0.15 | ||||||||||||
Loss on conversion of debt |
4 | — | — | — | ||||||||||||
Non-cash interest expense |
5,690 | 0.10 | 5,415 | 0.10 | ||||||||||||
Tax effect of non-GAAP charges |
(5,437 | ) | (0.10 | ) | (4,262 | ) | (0.08 | ) | ||||||||
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Non-GAAP adjusted net income |
$ | 83,630 | $ | 1.47 | $ | 39,268 | $ | 0.74 | ||||||||
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|
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|
* | Per share totals may not add due to rounding. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
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(Amounts in thousands) |
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GAAP net income |
$ | 36,233 | $ | 15,861 | $ | 65,683 | $ | 25,676 | ||||||||
Non-GAAP EBITDA adjustments to net income: |
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Investment income |
(41 | ) | (253 | ) | (93 | ) | (1,617 | ) | ||||||||
Interest expense |
3,144 | 3,004 | 6,250 | 5,980 | ||||||||||||
Tax provision |
8,125 | 159 | 11,780 | 1,020 | ||||||||||||
Depreciation |
3,797 | 2,578 | 7,052 | 5,063 | ||||||||||||
Amortization |
5,190 | 3,902 | 10,379 | 7,807 | ||||||||||||
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EBITDA |
56,448 | 25,251 | 101,051 | 43,929 | ||||||||||||
Other non-GAAP adjustments: |
||||||||||||||||
Inventory step-up charges |
— | — | 1,598 | — | ||||||||||||
Acquisition and integration costs |
3,218 | 2,134 | 5,769 | 4,687 | ||||||||||||
Loss on conversion of debt |
4 | — | 4 | — | ||||||||||||
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|
|
|
|
|
|
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Adjusted EBITDA |
$ | 59,670 | $ | 27,385 | $ | 108,422 | $ | 48,616 | ||||||||
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|
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|
|
|
Six Months Ended June 30, |
Increase/ (Decrease) |
|||||||||||
2021 |
2020 |
$ Change |
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(Amounts in thousands) |
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Operating activities |
$ | 46,913 | $ | 26,265 | $ | 20,648 | ||||||
Investing activities |
(26,198 | ) | (9,517 | ) | (16,681 | ) | ||||||
Financing activities |
852 | 5,402 | (4,550 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(4,532 | ) | 807 | (5,339 | ) | |||||||
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|
|
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|
|||||||
Net increase in cash, cash equivalents and restricted cash |
$ | 17,035 | $ | 22,957 | $ | (5,922 | ) | |||||
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• | the expansion of our bioprocessing business; |
• | the ability to sustain sales and profits of our bioprocessing products; |
• | our ability to acquire additional bioprocessing products; |
• | the scope of and progress made in our R&D activities; |
• | the extent of any share repurchase activity; and |
• | the success of any proposed financing efforts. |
(a) |
Exhibits |
# | Management contract or compensatory plan or arrangement. |
+ | Filed herewith. |
* | Furnished herewith. |
REPLIGEN CORPORATION | ||||||
Date: July 27, 2021 | By: | /s/ T ONY J. HUNT | ||||
Tony J. Hunt | ||||||
President and Chief Executive Officer | ||||||
(Principal executive officer) | ||||||
Repligen Corporation | ||||||
Date: July 27, 2021 | By: | /s/ J ON SNODGRES | ||||
Jon Snodgres | ||||||
Chief Financial Officer | ||||||
(Principal financial officer) | ||||||
Repligen Corporation |