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Azenta (AZTA)

Participants
Sara Silverman Director of Investor Relations
Stephen Schwartz President and Chief Executive Officer
Lindon Robertson Executive Vice President and Chief Financial Officer
David Saxon Needham & Company
Patrick Ho Stifel Nicolaus
Jacob Johnson Stephens Inc.
Craig Ellis B. Riley & Co. LLC
Paul Knight KeyBanc Capital Markets
John Pitzer Credit Suisse
Call transcript
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Operator

Greetings and welcome to the Brooks Automation Q2 2021 Financial Results.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions].

As a reminder, this conference is being recorded, Monday, May 10, 2021. the to turn of Silverman, now Relations. Investor would conference Sara over Director I ahead. go Please

Sara Silverman

conference operator. afternoon, Sciences and traded for one companies our you, line to our this we for press quarter would the business. afternoon XXXX. one year into today. like company our the plans Earlier earnings issued of to fiscal you Thank welcome good We describing a And business to for second for – Life call everyone our two also semiconductor release separating independent on publicly

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

today with Financial President Executive Lindon is On Chief me Schwartz, Chief Robertson. Officer, and our Executive Steve Vice and President the call and Officer,

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

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

Stephen Schwartz

the to publicly growth into even flourish pursue life two to is shareholders. And declaring We Life independent presentation Brooks our sciences and decade market action the the traded Sciences businesses the move independently Thank our begin announced since materials to most of profitability. decision as intention ago Sarah. separate each slide to into for strategic that you, X we remarks. my afternoon, step for of a our ask will please to and more meaningful everyone. companies, I refer good Semiconductor This I big a you just believe a perhaps and and by allow almost day our businesses

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As you've this in innovating tremendous years, investing over us to front and heard from of we're remain opportunity. the

in secular substantial And growth to development leadership markets. were that's Sciences simultaneously positions in developing organic strategic we one-of-a-kind Over established our we through investments the recrafted we period a automation business, franchise product create and semiconductor and portfolio same our when targeted technology Life acquisitions divestitures.

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management importantly, position us at view around to across including market extends a us sample capabilities opportunity establishing sample we as often years cases, give only for that Most that of preview based X, of over sample on entrusted of we germinate growth which time. next aim we a growth different In molecular future. for Life what Moving or high possess. these management foreseeable solutions. decades gene offering fundamental and of cell that many genomics genomics samples. billion therapy, fueling demonstrate we offer and biology needs a X, to our skills and and is sourcing a through a based in vector modalities is the analysis, the rapidly core and novel to mRNA handling enhancement and our give source long-term of opportunities $XX We're positioned we path geographies, date, to from genomic the as the current that capture, the of us as complete our capabilities strong the point, a to single give growth slide foundation to organic our our we're that from slide on Sciences, portfolio at vectors and the starting hold storage From more customers can confidence viral

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which the slide similar is a have We opportunity segmented nine. business, Semiconductor in on

into first class multiple way more number XX across manner than in semiconductor all market of manufacturing. years. served a have applications We've for lineup semiconductor that equipment of process the positions one invested invented have and We our products

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believe in both that have their these year. value deep of but expect we're markets. are $XX we Lindon was of million, the Life $XXX about each on rate Finally, remarks, and futures. performance primarily enhanced businesses. focus. we quarter. take synthesis. capture These advantage Semiconductor another was deliver which give the is and say almost we slide Sciences believe $XXX forward uniquely by to unencumbered, part story. two up for to move strong to new time advantage on our the a strong QX I say recap XX contributions businesses. revenue deliver their Services will companies with driven from where unleash but to next products. XX%. separation each beginning million, strong each was business, a complete Revenue which second year-over-year which by made we performance robust the ready both in two and businesses and every up was further are independent position, to was meaningfully it to both his some that exceptional the market in We and consider results is are why potential. the sequencing is $XXX delivered energized the And I'll year-over-year, We're independent structures they are consistently XX% by respective remarkable in suited the generation bright of services our a highlights, limitless growth and markets, to forward to up now that standing end now for the this eclipsing up XX% when planning looking of run strong up up annual we and now by with two of I'll to more the suffice separation one-time way, XX% our look than potential with that some any some million quarter supports, break highlights more our business measure, our to Life phenomenal in revenue was of down million, ramp, take Sciences calendar reflective

of prior million, $XX increase the of was growth revenue an XX% the sequencing sustain and throughout gen solidly remainder Next to is over year positioned year.

contract several its continued new revenue related XX% up gene new have Synthesis outstanding as last We launch growth $XX of in quarter, the solutions AAV including for to over touched million opportunities capabilities, we the year. therapy.

slowdown revenue anticipate we services the particularly were last that, growth we year, you that I increase but The March This have last million. to of existing the in also the we not turned our up solutions. solidly QX as represents that Sanger a in including customers, team out from when levels, when solutions quarter on strong path. Germany, of in in vaccine a growth We steady especially sample significant Alliance. year-over-year samples our our back revenue manufactured expanded repositories, for dollar and those excluding up discontinued and footprint results it's new to weeks we gene from we've during remind But meaningful we $XX our business strong services demonstrated we to quarter, of was had Indianapolis Rounding comparison. too, the the significant business, well, perform so Sanger the antibody continued in pre-COVID number product exceeded XX% growth quarter, prior from X% levels Sanger over a from rollout. a and Here revenue XX% million and But of continued and back compare for December sequencing as management $XX repository you RUCDR part reported launched we with September since COVID sample year. our to

consumables of outsourcing the types because level activity sample manage well able of products of indicating an are indication but $XX sites we're significant over record in instruments, the strong again $XX complex for steady from million to the years and a once allowed the mostly to inflow what the services demonstrated investments will And the stores, the samples early of coming made that to and after tranche customer last or of growth a We're ex-COVID. up of automated and underway. in at disparate the by C&I XX% we've as welcome access year. million, ultimately strong registered is In with Sciences that continued their million growth, year-over-year behalf so. led of pharmaceutical being be over to very we COVID million, line, limited more are most part and encouraged we samples. for Life more presence customers, growth collections of physical instruments hopeful Consumables be a very past both by very particularly months doubled several We business We majority past samples us XX% to many at estimate our quarter XX by from was encouraged QX onsite delivered We the coming biological of contribution large a another a than that $XX tailwind, approximately store increase SRS. year. still from positioned customer contract first on of

previous on calls, revenue the won pandemic business encouraged are extraordinary Sciences the new the All continues to by in, maintaining and growth. customers mentioned Life to we've our date. As that we're progress during on we've focused deliver

Our unique of the and assets manage of portfolio positioned customers' of which millions to are interrogate among capabilities tens samples, most in is portfolios. our precious

management of quality deliver desired the Our integrated rapidly is a solution ability sample services and to to proving form capability. high products be highly in an

team I'll profile the rate, an organic and inorganic our spectrum. many to results a set business. Semiconductor life on relevance own. its the investments sciences enhance further now targeting million to out are customers enviable feels $XXX Sciences the and pipeline, We strong opportunity ready value With across and from to discuss growth run Life

beginning of only not semiconductors, to secure but sustained to of months, past by no computing, too from million, are strategic drivers coming capital the largest though record growth applications $XXX several more, long are sector, of all investment availability tremendous growth, the in market. revenue be will And capacity the and and up which devices packaged that technology already because strong about start gearing resurgence foundry of critical in uncertainty. of driving least world's that we're more support automotive, a semiconductor the in witness acceleration expenditure more are sectors plans in in myriad from IoT another commitments Over we're strong XX% chip is across makers. sustained extremely machine are been is What's all unprecedented The this silicon we up memory the part high robust mobile-ready governments Investment of investments or configurations the logic compound even geopolitical believe we we've was of will AI, believe level year-over-year. at expectations. long-term chip and for QX driving years. spending. XX% XG, what peak QX from hearing investment a way Semiconductor companies, and a performance are at fueling learning to both small

Our bullishness several indicators. comes from

the world's dramatically from First, are forecast largest for periods. expand continue chip any above makers to capital new investment which prior levels, to

indicators, Second, a XX and environment in current and even impressive see we and XX for were segments new again a our from win year. Semiconductor delivered automation sustained QX, most bookings our manufacturing. robots is from gives new design from coming our in market in about from customers, our Each once XX% breaking increase a very especially in record these future an $XXX robots success, systems up CCS. on plans. $XXX XX% end front products XX in work much X designs, equipment our not we automation the year-over-year. remote growth We The record XX where will vacuum customers' pace a this revenue million, position and again, our what semiconductor us expansion design of QX products million. from the with up solid process system was our equipment in semiconductor with confidence physically of record combination quarter we're in role key of QX were the And play and wins, and for in up technical

come anticipate XX% business. way in advanced year. XX% existing CCS were and sequentially the designs driver our a technologies processes. anticipate XX% of the And Much another of our to of the we $XX this exceed revenue. taking up time with in both customers play ago. We've CCS yet of threshold a expect an QX, starting to Most market indicated customers of we XX% become out. second are year, breath we new the device again, at revenue of million, we reported from a broaden revenue continues QX who revenue growth revenue won the now CCS fiscal from below we're we delivered a from long foundry space. XXXX, entering in manufacturers as are that we we was the control when some of CCS types comes continue half adding to record of we applications sustained the are from who in as As million outlook earnings another the delivered that advanced mark. that drive for Most QX, up these approximately period last nine fall of In into than we days $XX tier our to are momentum importantly, pervasive. still in and increase products QX to QX, QX million, continued the quarter And customers quarter our manufacturing $XX the contamination more for June packaging the when new their more in And added strong solutions the ramping number new We call, of primary the another one healthy record seeing shipments automated continuing of adopting packaging solid XXXX.

overall contamination deposition processes capital is because such as vacuum increasing, investment fabrication wafer growth. new of the for control environment regions than demand in, the the manufacturing market continued growing to new etch, and equipment are opportunity providing for of semiconductor All growing, once and more with process demand directly be base customers, technologies. Semiconductor our And faster business systems to capacity ramping these We equipment. portion again of is is production to able and the levels manage across an is

well thereby sustained gain innovation Carlisle this that acquisition make of Our be and Dr. automation highly collaborative next growth designs To even a for toward examined us other lab to factor robots. suited. applications most comments are to implementations, suited who in applications space, solid most have Brooks, to generation in well the weighted of with share, been allowing in automation Automations in compact the technologies brings form but like continue Precise of where point, to the about capabilities. investments rate work Automation, our and date, recent I'd are technology drive product introductory our market driving to semiconductor Precise some At Precise the addition and higher. side-by-side human for factor portfolio capable for Bruce a of the inventor strong sells and and innovative Brian form a have more robots two decades will Founded by been Automation build and to Shimano, that base be particularly X,XXX easy-to-initiate beginning automation beneficial collaborative is company their that's most technology an a XXXX the particularly robots motor products. than they the capable of entrepreneurs capability precise

and is Our robust well semiconductor positioned. automation business

did the use our allow to now next grow way markets, the much In addition we exciting other to our capitalizing we're in we when opportunity of even for us on that strong control embarking same into vector position, in we mass will on Life we expertise to into semiconductor robotic the in when penetrate business. out contamination to that the exist again the business acquired and DMS then the growing solutions. envision business Sciences This opportunities Semiconductor collaborative broader market rapidly launched time,

further supported of their them, to and the to this will great capability remarks urgent telling tested new I semiconductor my fund Brooks management conclude independent and with fully stories today I growth tried you next new exciting need, of allow began and accelerate the customer automation vector. enthusiastic Our businesses. by support Automation business of teams, two colliding both performance outstanding structure two as eager

capital for and to after creation the remain our together, good journey plan built we call as we thank support record deployment to enthusiastic ahead. of we disciplined I'll on turn we now company, focused and level about you of our While separate, this over by build We a the of investment, Lindon. exciting challenge. innovation, value and we're your

Lindon Robertson

Thank you, Steve.

continue through slide slide the XX. I that the to seeing deck, of the now which we until to results separation for the In announcement, to the reflect end second continue the everyone quarter the culminates, you will company we will calendar charts transitioning will as the clarify We light total starting of on fiscal just by for year. results them occur to accustomed financial are expect

earnings generation. As we details, and million non-GAAP business, share go trailing the When record strong XX% of of business our our expansion margin cash $XXX record at in per revenue a as quarter that as from of XX-month you through our and the strength are level you impressive. see quite on underscoring results look growth models $X.XX both sides business, good will two year-over-year well the with of the snapshot came

operating would to XXX drove charts, XX prior also expansion, $X basis Steve's As we the add time over billion I same over we million gross of points $XXX you margin cash may have the generated expansion, and compared the period, period, noticed in over in months. margin we mark past operating for flow. that, XXX revenue crossed points XX-month of basis the

slide on XX. Moving to

but $X.XX $X.XX, sequentially was With go year-over-year, per the up share Let's earnings quarter. from into continuing XX% the $X.XX and down the up year from revenue prior GAAP XX% operations year, to details.

we increase call this, per out as left. sequentially. to drivers differences shows here explaining attention earnings GAAP I'll the primary draw the the Before XX% share I'll non-GAAP your through on side same the the of line which under side, the step

on fiscal and quarter's which that prior All for of XX% and related the The XX quarter, results values for was gross the and appropriately charge, year-over-year, per recorded excluded XX the believe was the of cost jurisdictions approximately result, fiscal first the total see shown clear Again, earnings still advisors, a of gross This in left basis basis declared right, leverage carve section, this result, the reviewed fiscal Life the beginning to to with to line related from to for more liabilities we we in results. tariff we With $X portion a quarter. impact this growth basis financial in were the million shipments four-and-a-half to we business. the business. results. associated forward. Within to a activity absorbed business a for excluded the the import GAAP to was of our quarter, is impact $X.XX from a shipments this the you above quarter. also margins for the those larger $X XX% mind, profit prior the include companies this this tariff reflect a Sciences of we this in book periods basis, On estimated XX And profit activities straight million that In of which to and and to primarily Because indication XXX% half. quarter. later quarter. Science and and an to you GENEWIZ In non-GAAP line, years significant again costs. preparing made the it and the and that here charge are share performance the margins the time that ongoing points such of reflection company On quarter see non-GAAP made results, down the out million impact did year. going will liability is this quarter-to-quarter. such operating business. points prior is this year profit current GAAP have support to certain year separation business better the relates purposes, We expense were modest uncertain GAAP third as $XXX,XXX non-GAAP Life up our in this related years a Brooks significance of again, since non-GAAP SG&A the to These on $XX in, showing expect increased the audit generated from non-GAAP what and the legal current of additional side contains financial for the statements, costs points activities

results. the basis by revenue XX.X%. growth the Operating non-GAAP adjusted share. non-GAAP margin margin was all, to Life operating margin reporting we income, combine right EBITDA basis the each year-over-year. quarter points XX.X%, saw Sciences basis Semi, was Gross Let's per upward Below up drove and points points side growth XX.X% XXX just it operating When margins and XX.X%, gross the XXX you improvement the driven XXX in expanding XXX% XXX%. in tax XXX under up were expansion year-over-year, income year-over-year, rate points. for The look non-GAAP and earnings basis was

by Life Now supply driven benefited portion estimate XX the a from XX% business business please million, constrained a sequentially. and of XX% million Sciences consumables turn to approximately revenue page the business. that to is We for meeting Life in our research in generated of products our related is of increase our and by instruments second year-over-year related portion A in and $XX Science COVID COVID demands this specific quarter, industry. business. primarily demand, In results an our $XXX

business of customer total The how significant COVID expect determining keep many relationships will these the going forward just was and have in We XX% million grew $XX research and continue. to products year-over-year. a difficulty still long

store service business the sample next of Life The The repository when the comprised business quarter-over-quarter, services supported our grew In business of growth generation year-over-year with the product XX% excluding by unwinding sequencing. synthesis addition expansion of And alliance This continued grew growth primarily and and accelerated offerings. GENEWIZ to year-over-year. systems is GENEWIZ X% our Sciences and driven $XX offerings. of million. XX% was and C&I was services the strength, impact double-digit

lines. stream strength business and across business services all saw services reported repository The storage sample growth by of revenue Alliance year-over-year. excluding the also led The informatics. we growth was So, strong XX%

gross Now the XXX At basis points are XX.X% quarter, by for year-over-year. we margin. for higher

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on the in EBITDA can business continued to to the Sciences adjusted us in you Life model see, segment-based As brought quarter. second margin has results, leverage and the XX% a climb the

approximately of into As be in Life to Sciences growth third of range revenue look This million $XXX the year-over-year. quarter the $XXX to million. expect range we supports to XX% XX% XXXX, we

of second of Let's the turn quarter slide XX% Semiconductor business up XX% the and was compared it on to on sequentially. now increased over to the million $XXX Solutions Semiconductor XX. quarter revenue XXXX,

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operating year-over-year. margins year, year-over-year up compared XXX Our last points at Semiconductor margins XXX services Gross was basis strong were were basis points XX.X%, XXX revenue points sequentially. up XX% basis and up XX.X%, up with improved Again, business. metrics and have by provided favorable your assessments of higher helped additional with margin the adjusted you we the for EBITDA LTM our absorption mix also automation. vacuum of cost and by driven

On a adjusted XX% the XX segment-based the last reporting, the Semiconductor months. for business shows EBITDA also

including our revenue acquisition, and $XX to look Automation. of of expect we of toward XXXX, guidance recent approximately third million reflects growth $X XX% the range XX%. we revenue million of This million, year-over-year million Precise to in our from XXX sequentially, a Semiconductor $XXX expansion quarter to supports $XX As to of million be fiscal

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million. Precise $XX we we net a sheet. cash first Let's balance turn balance. of of million securities, to and With slide had million Automation debt quarter-end, $XX cash. of cash, restricted the approximately view quick with the XX cash an of At $XXX finished acquired and stable the for of the quarter, at million marketable this $XX used we end to of $XXX quarter the million, Subsequent increase

earnings third expected to Revenue Life $XXX revenue to $X.XX be Let's million fiscal $XXX turn of our to to per to for to the be per $XXX $X.XX is in to the be is $X.XX. GAAP Semiconductor on guidance quarter be million XXXX. between earnings slide range be share share $XXX Sciences to $XXX the expected in share million $XXX to XX expected Non-GAAP per range is million million, the with expected to is and $X.XX revenue expected and million. to

the we rate range and capital tax to of to XX% now XX%. $XX of year, expenditures whole the the $XX non-GAAP expect to For million million be in

XX-month of billion the ahead business anticipated of already XXXX and midpoint the QX the expected us per is on $X.XX our well target top which previously If at you on of year have objective, three math, generated revenue our guidance, trailing share, do of earnings non-GAAP to model. puts results, $X.X the of provided

our Before to slide separation on to remarks, XX. subject of the the businesses like we I'd two of return conclude prepared

on businesses questions. the value to I multitude two may of anticipated indeed have sides this opportunities enough to both The think significant significant is address the drive some as separation growth expected become are dedicated We efficient company a separation that structure the shareholders to in the manner each team business well a and will management plan preparations execute really underway. and for well. tax serve

balance We capacity the the affording Steve In creating corporate launch business outlined. the end vectors SG&A ample two companies, growth complete the traded basis the anticipate the G&A million separation sheet, pursue year. to an their there to of each publicly standalone will by up calendar total $XX of expect Each to separately. strong We a two will with businesses. the to stand G&A impact ongoing for be approximately to annual companies adding structure cost of additional

important to proportion carried is it cost G&A Brooks to the past, in allocated Semiconductor in revenue, a meant proportional that, historically of has costs to corporate segment. we Additionally, G&A highlight have each greater was which the segment

first structures the and structure support anticipate the separation, the will varied and additional that Science We its more the we approximately the Life pull of million Semiconductor apart structure. on will as unique a Following basis less annual Sciences and unique each, G&A compared million its Semiconductor When $XX customer approximately business, own structure total assume business offerings, extra much G&A in a larger which a Life P&L, have to P&L have more $XX margins the results. addresses than in business set costs G&A again its amount will nearly revenue, this the margins its the lifted pressure profit the to the points to to business charging reported separated. current see the These estimates separation. Life business having you profit lighter Sciences to X little new and tie of automation segment its Semiconductor include for we G&A when X points being by due added

each pass of update business with complete Day will we provide to We the adjusted trailing business. picture months more hold each EBITDA expect an through with and the fall, Sciences the XX separation the the clarity We Life a margins we'll projected XXXX. latest as Investor end plan effective the date, growth, by the we approach to for business in on saw

long-term new for a each see model business. to expect can You

That stop like the it is excellent seems to For point now, on. objectives we exceeding XXXX finish current about those as this objectives we're in will year. clear, talking an

questions. so, the to And over the to your take call I turn back will operator

Operator

Instructions]. [Operator

from Needham. David Saxon is with question First

David Saxon

if you more little of you augment if talk you think what a margins points just follow And And growth slides. But be bit just business? plan have about as I up. you you – Sciences revenue the kept the if have split, they one First, how could been in a to of following on would kind specifically the to can you specific company. split, and above out combined kind Life then lay strategy can some the the

Lindon Robertson

this quarter. We picking coverage up appreciate you

better gee, sacrificed Let chime. it's past comment recent One, or look years, to two first business. and as we And I say, then businesses, say Steve year and have – Semiconductor – I'll an where could the it your in in business we vectors trade-offs we we grew strategy could think that think in hadn't in we me words, exercise. over augmentation the investments strategy fair words, and we in date the wouldn't Life to a growth years with have maintained now to both make point the yet. didn't because the has have of our has done or either additional we've in certainly, we dealt the unconstrained two as Sciences at to We're between past

of the base. that we value say, point advances service to us and, data, viral of outlined the lot offerings of so, service a And certainly vectors, And space, in Sciences the perhaps realm. focus those including to science Life expansion customers to et to in the certainly, and on can base take customer Steve in helping provide sample sample area, I'll acceleration cetera, that the aggregating service that

whether organic that. or doesn't inorganic, space, slow that in and separation forward it provides be So, on all. capability focused us management to anything, down and in If focus have that it at itself purely the we'll team concentrated move

things now, So, to we years, in were in trying we separation right timing. But this coming think move of two start because timeframe seeing think forward, start And just opportunity. fact, is this is say timed in we let's other more terms good juncture compete and each we the don't may we attention think affects right if focus. that to with

Stephen Schwartz

that David, confident one growing with satisfy. a good we can two this Steve. businesses, roadmap cash generating strategic We're is and that rapidly is capability,

own the go enthusiastic standpoint organic what We pipeline, we really from enthusiastic the will and are at a And of that we're in to about the So, like. say, we future allows separation that even innovation have looks our the companies future. inorganic faster in the pace terms think about I have both really growth. just of investments, two the groups

David Saxon

very out lap My some congrats second back like some growth But how NGS news. seeing plays synthesis, Sanger question of margins. demand are synthesis that, and half? easier just How the is so on strong is just the noted, And And we think much. on starting gross you given GENEWIZ. demand. quarter to NGS It as and carry in the kind about and sounds just comps. margin. the that the should favorable these And Thanks in then, given in

Stephen Schwartz

fast a path, growth we have the business. On pretty turn

more is, So, this customers. actually we again satisfy we the the we more find are. business a lot visibility in We But we high beyond repeats fashion. customers win, don't where we did that And that what add we have of those from of timely get quarter. a quality, hundreds

to the capability. the amount satisfy hiring employees a the continue current we've the about to And help lab some skilled past capacity in confident We've over years, investment you'll us really couple demand. and significant we're really see capability. of that, So made position and been

growth feel keep the we And about Sanger, more are the in in that anticipate rates continued and and the NGS, in front we coming opportunities far. will as but as NGS that of synthesis actually, significant. seen good synthesis really we've So, it, the staying we're long at so exist business

Lindon Robertson

I going seeing so quarter. services into margin comment whole really interestingly, were on where going won't you opportunity up the the QX. good it's much, the to But the year some pick things margins, me wouldn't I'll gross but for to significantly. on we're interject change And I'll guidance expect I start a third good – the business here David, stability thoughts question. into services the with the on

be other overall. guidance to could could products stability side. approximately our go QX projection. equation. the gross And I from when inherent be it description underscoring as up, the In it's business, on stability and so, in margin in business added well, And as And flat, we we we're is that's as all the seeing Semi fact, bit in see do our what's in QX structure actually the little a think we positive,

Operator

Instructions]. [Operator

question next Stifel. Patrick is Ho with from Our

Patrick Ho

sounds to on really all the exciting a Congratulations way shareholders. this And announcement. for extract Brooks like value

maybe congrats I'll contamination I have terms So with of a that. start Steve, talked you in the few about more for in business. only semiconductor opportunities. that And off the control this on you since side on the business and on of growth things, quarters new also

You've levels of processes new given to talked manufacturing control? DRAM of the going that about memory are coming in that contamination Would it on the past. higher require more fair emerging some challenges the be the in from characterize opportunities and DRAM

Stephen Schwartz

Patrick, indeed.

current probably sure, quarter and memory you application. the think the in for patterns, the quarter meaningful will, it's I first slug, order if the last

see to that. starting are we So,

of Some for referenced design for and the memory we wins are DRAM application.

the a see foundry, still growth fab had that It of be it. meaningfully. we it tier we're begin one more And but So, indeed, we But would goes. where don't has density know DRAM starting begun. in tools to anticipated the won't like

Patrick Ho

and near which going question from more customers of it services the business. Life balanced past the sides "is As new about was that Would your on forward? so least follow-up from it the customers on as say that GENEWIZ strength new growth fair existing existing the or and at more to the Sciences, includes quarter coming well strong you this is both customer attraction as my still be talked forthcoming," term end,

Stephen Schwartz

toehold We the business Patrick, a comes the builds the of get and time. always majority usually customers from with we and over customers. existing start business

us, about become meaningful. So, those after quarter, quarter those wins, to are but more when we customer really new talk important

important. equally as them treat we So,

customers, the turn been they're quarters. we be majority so is has really eight customers significant or really fact has the the services in of the SRS and far. And existing business of we meaningful customers, the that to thousands the together bring. out balance the started number can GENEWIZ team that it's six and to under because of precious win when But generate they're touch points ones us Putting So, from the great together and with new some customers the to GENEWIZ the who synergies. offerings brought expanded Amy business

the so, And the some customer we're and full offerings across SRS share space. to taking GENEWIZ advantage of of the capture

Operator

is Jacob Stephens. Johnson Our next question from with

Jacob Johnson

or this I'll over and And in are types you're the not shifted any synthesis? NGS demand academic? seeing much maybe How about couple versus driving the biopharma years? is comments my how on last of different has has about GENEWIZ. another GENEWIZ asking And growth. Maybe add congrats end as really markets ask strong customer talk Obviously, can a you question I'll what posted way, this well. or just

Stephen Schwartz

to one we of do tough because a have it's Jacob, answer thousands customers.

So it And synthesis as we testing, isn't of these to significant then, research have more their shifted on development. appreciably. move the But I and tell continue into toward customers we and saw the the days saw their vaccine virus. activity. pretty shift work customers But is, on moving work – are you the the existing we because in earliest mix COVID, on the what will from research a

remains And So, haven't any we changes the same strong And the customers, we're customer particularly research space. there. different space activities. the really and seen strong. Again, academic capture in

standpoint, terms a in the of done research. So, the customer from we've work shift have the of mix, of with in kinds the it's shifted not necessity different appreciably that but

Jacob Johnson

your in the trends that question, around also business? us just freezer touch remind product longer-term companies we Can going demand gene competitive near-term the think cell some freezers just seeing freezers, any other biologics? largely advantage is my And therapy the are maybe talk for impact seen yet? maybe then you guess maybe on get I we've Have automation? for on given business. into broader and of you about and And seen the what's reopen I onsite demand as then, other second, which

Stephen Schwartz

installed thaw, removed, cold. a lot freezer You're the of exactly the tremendous the more impossible of of to A the to provenance samples it's right. important. A the are sample, with that value. a And of in We many how is hundreds freezers And times of thousands terms really freezer history of believe of what base the fidelity lot automation to history the I essential the in critical finding records of are sample the been proving it ways sample are of We companies. lot adds we and be longer do get people the just of think a it's there The lot that There capacity. held, ever did are think it, the are out that are think to those critical. is that is of capability sample. the value samples.

part we I demand. to believe continue freezer lot helping there's too. a critical So, And customers of drive to what's believe and that's us business. continue a think the is to indeed, that the And automation that our

part samples automation from the a location, essential a automation again, is C. all we value know, entire but So, through have standpoint the XXX cryogenic down the at sample. of that's and simple in range just the actually an particularly for And handling And important an capability, it's temperature from you temperatures to room non-trivial degrees us. way minus automated as

Operator

question is Our with from next Riley. Ellis Craig B.

Craig Ellis

the it'll of the and term offense Dave Semi can and spin congratulations, around, no guys, Dave hear but you're Sciences love long And great the juncture be as you and start, to echo To evolution now we guys, out. the Life you business to where from quarterly at to having I'll well.

little question point bookings bit strong. detail then more very very design wins about into just to bookings at robust the wanted you you activity? first win ask, million? Semi's design is, So, $XXX the on And go very, So, and Steve, made a I can

just business are starting pipelining? half be are half to powerful at On rise And exceptionally contributing that's coming bookings? the is more on we here? is you the point order to a see inflection the Semi to Or just side, the in that where going into

Stephen Schwartz

haven't know a an really world. strong logic adding well, environment. any we to the of have Craig, to industry a kinds bookings it us, seeing And much that pickup, requests as that customers robust. were we're But to our to tough the coming here. memory supply We're are But quarters. capability up and just persist have base It's powerful keep even to which here. going here They continues, call. growth in. then ultimately, the capacity without strong. subsided and OEMs it's again, a little creak about all to like now wave really on as not over we've The coming into ride quarter foundry our of adequate just feels base. already of being a broad the North the put customers. is around so we really is really able sure The the been the generally We're But roll Craig, you American do continue of if making issues. have though seller from it'll We of bit capability requests demand about the for concerns

We of makers Asian and have to a share in gaining continues who our lot Asia, equipment it are drive business.

So, and we reported to US might be some sustain the footprint have the traded presence by above global continues us publicly what companies.

Craig Ellis

of think coming inside announced would there we ahead [indiscernible] certainly advanced we a memory we've increased within of too? starting you on CCS, projects look some the for Just memory see CCS and as as are to DRAM node seen prepared we've look some made activity bookings in I CCS, that activity, inflection that and expected those and on in the remarks points one you be

Stephen Schwartz

to lot another just have. the fast to to of expansion – And the that the also I high that growth starting our up breadth memory the pretty making in CCS. business fueled a foundry, we the adequate because capacity remarks, the capacity see factory new by working mentioned fall add but ramp we memory And prepared a level. now. We're to get a we're of of on we this XXXX, of beyond in see watermark is we're And have into for that again, coming at sure that in

Craig Ellis

makes Stability you. gross for the just sense. Helpful color characterization. margin Lindon, on

in up volume Although, businesses argue I that would might both be that could suggest maybe sequentially. something

can is you view case. be maybe So, that the Sciences. But would the touch real the why question intermediate on term on for Life

just think XX% put I of gross better we up quarter or our third consecutive margin.

really number now level So, XX% where that or at think sustainable business? a a to you where time are a is we – for

Lindon Robertson

the In with on gross First, sequential, you're a ramp, see the do we generally right. margin revenue line momentum here. in

the we're – manufacture but on in guide it's away partner. an sequential we difference. slipping not this upside of outsourced a that more Here's our the product the of more upside and In product, guidance, and CCS is in our our with the quarter manufactured help coming of

the so, will of And doesn't but be two structure, ramp. last certainly the we've quarters further margins nice seen of incremental it benefit the at revenue that the contribute that of absorption gross the to

stability a we on our contemplates now internally. positioned growth could in guidance more our product that more point So, our manufactured manufacturing stable our ramp right but more, do We're we're product. good and outsourced on at

in partner. that much the wouldn't as highlight to resource can the will sure quite that's I focused make forward. manufacturing later quarters. I ensuring very might see in-house, question because ramp why semi wise as to doesn't or expand. towards that capacity next on in that into wise would space well and in the for the going not our kind That in of we're end your there convey the you're the both in business year we as And into you forward. going year it expect robustness But So, we space to certainly, house, of as brand mean is this the think seeing continue

we it centered and – it Life the and to don't be expect done to XX% XX% XX%. XX%, it's On Sciences We question, that saying, XX% going in range. that probably wouldn't latitude term, We that be think the the been intermediate – could I've to is something keep want say forward. that I this going XX.X%

probably fair range. that think to it's in XX% it's to XX%, I think

to means capacity. the Capacity space. on invest Life side the in Here's continue point. Sciences We'll

you bring know, the year. online we'll later building in As China

During that have the we're space We'll in leased using own space. time, we'll have building. a transition space where a in

the cost a of So, take see And ahead bit. drop sometimes we'll ahead during we at a utilization of as our you of And probably invest then, to capacity, expand we demand. that just start resources to space, little a stay certainly, little more pace timeframe. costs on

want XX-and-plus could don't percent in is nudge a favorable see direction, I guess a we think XX% fair So, in anybody I I'm but three softness to latitude one consumables fair XX%, go to I your there's could confused. – we quarters margin. calling to a after for instruments for in is too. more attribute not it calling well. be that one I'm either margin in as our COVID sustain. demand of mix to row and think The But

applications, any portion industry, of picking But of softness, think say of was So, just in the downward. constraints we mix to to C&I capacity the be the if then a in demand modest see we it we to COVID customers. in we'll highlighted a many what There's portion would satisfy related and demands but were those that million in additional $XX would Certainly about research quarter. up. keep that that to also maintain we're

may why see below reason another this So, dip you XX%.

Operator

KeyBanc. is Next with question Paul from Knight

Paul Knight

Life what markets – to Can financial you performance said happened did in it's talk to Science, improved besides time do you what spin? the or the the see that

Stephen Schwartz

capture of cash the of couple And make everything able that we been size to – need cycle there short the us a that and Sciences. pretty One, team to they're investments years. really two And to generating position capacity as pretty in that almost are we think, the for of those while capability. and decisions. it to about the we things. demonstrated expanding aggressive in. The remember, of is to better has amount part we've a in you we had get We're significant Life a stay invest front took Paul, opportunity,

have significant to looked compete didn't own we balanced both really accelerate its sharing independent successful. a We opportunity same by here So, we to balance And looked own if and balance it, actually, patterns. companies stand when the at and make At two their not growth has anything, sheet. own both we each on it'll that's sure been capital. business sheet at up time, having that trajectory Semi And them keep a by they think for its pretty paths. allow them the investment

a running this business rate, So, and million a capability size, of Life stand time to up. that's right scale now run businesses $XXX that us a overall we at made Sciences think, really for

Paul Knight

doing clearly life view? is M&A industry you the that science. more hold like Do in look does It

Stephen Schwartz

is the a are lot from so. think but certainly pipeline a opportunities organic M&A There The so. that for and good growth potential, I We of good. we're believe investment of an lot good making, both standpoint.

Paul Knight

you add this You management? new the understand a you've major sample customer. in Lilly call an had of the terms mentioned customer biopharma done incremental that one in I past. Is in that

Stephen Schwartz

we samples the a win about We quarter now. had a talked is. It come to started in ago,

So, really new brand customer a And this significant one. is a us. it's for

we store of samples us and and would looking to more magnitude for right about pretty more that give this customer down significant us. business doubling customers, out I well. years halfway manage couple the wins more samples large project chemical that of think compound automated XXXX, as manage, was September us that's we're their significant. now. collections And a given also Day talked trust only we And And to you'll we had remember of large of turns it to had in who through win even about considerably the their Analyst not at has

around. win was research it automated their store heading So, are the and into one pharmaceutical Biological way and large to central this major – all Indianapolis to for of samples large, Griesheim company a their sites.

Paul Knight

the does facility When GENEWIZ online? China come

Lindon Robertson

buildings end next the calendar timely a with be should other of It the year to have overlap And transition. beginning the of into ensure by we the year. online calendar

Operator

from is question with Pitzer Suisse. Next John Credit

John Pitzer

Life couple on I'll on add the a Science. got congratulations. Steve, questions a the couple Semi and business of then my I've

think an give clearly, your on billion brick business, level? your desire on help into Semi what sort semi not equates to? that of Just installation? the builds I of business sort of to as this it versus Is and government when some sense think, are especially Semi WFE early? understand fiscal tied Is And certainly there the the what year, a about for of should benefit about you involvement you that? mortar equipment to Because, level? that you're kind WFE you viewing little products, us sort but billion bit mix? $XX of that versus How I giving, guidance is of and the How $XX a can you regionalize you as level the can a do you capacity, within to better think look third is portion automation me and new fab quarter

Stephen Schwartz

John, a lot of questions there.

to hard you the we've patterns for will WFE past. for us a feels first like but OEMs. is one, consistent a best it simply So, the pick $XX compared with it's full count, sure And how be billion-ish if to some order to number, it'd for us level it that metric in the seen the be imagine that – will,

precision to consistent. that's But we'd consistent too run with say $XX And we rate next, that. the much put it's But we'd couldn't year around so, run the pretty compare when one spend. billion with I say

no brick relates – counts, it. mortar ship, the and and everything But fabs are brick mortar that and capacity. populated the most of tool terms There's the to it is the we in fabs In the generally phases. you about then up as question and are know, put

control go a tools the contamination right, build in contamination in a does that little with little isn't filled out. factory. so, go but bit steady go some control, entire of fab we similar And you're tools But earlier. But a the to earlier. Probably the metrology it bit into see

in, provide and more. be go a when for in but capabilities that a quarter, as Often, a they go And as we'll systems later. probably not automation OEM say, control So, ship a recognize a to the fab a phases, revenue, if populated vacuum those direct there's it thing. large we there's a steadily, will see robot go. of built John, tools contamination and might maybe the quarter same it for we to for And, fab then, difference, that the OEMs, gets but lag in all recognize process or system revenue, that

in probably always is our shipping little large bit OEM a you'd just product indeed, revenue fabs. same what to from a see advance So, of those

John Pitzer

OpEx that does, business? the gets Lindon, And as on add a there, then, of to up that about or or follow-up a midpoint the that headwind And of Sciences you not Sciences, business? plan is the side, of reflection between Is some But On the before a includes linear it of Life you of in Is COVID sequentially. down. it now a split? when Life added the range whether not the seasonality tailwind guidance the if to is think was a the your want it caution add reflection year-end? is and a the sort knowing a

Lindon Robertson

I'll try here. to both take questions

Life if that spikes, particular terms does aren't on both again, because territories the you that not, Also, there's as COVID in those does affect in much softness COVID either. things when or around of how potential, said, unheard and us? of down close drop see revenues range we First, Sciences options – we

we do around this. So, a put range

at there's a everything good range striking But history around pretty have of a here. We the midpoint.

said we additional structure both add portion $XX There's would OpEx, become until the companies. separated. this effective about a we of million of doesn't it's On that to

me highlight. Let

governance. some adding be will We

that part. financial pull fees, of would a September I not to start ahead assumption carve-outs, board, June But might includes that But start you've there start less of parts company, get stand things quarter. we with some building. your aspects hiring into going already two But that will we've worked good be cetera. be we in seen, audit to some companies. wouldn't the the certainly, I the And we'll nature resources as are up start exactly of time. the of et call that – We're say it So, would more on the the linear. – as but on quarter, probably

Operator

question is Riley. Ellis from a And follow-up last with our Craig B.

Craig Ellis

a comment, Just on that last clarification quick Lindon.

$XX heard the model $XX John's corporate then there's response I or million companies? Or Sciences added? either that $XX it really companies? in would add $XX in for $XX million. Semi thought is both for you So, in that you question, is and to And that say $XX I would said there's it add stays million currently with million to that's and both expenses added is expense of the remarks, thought million total. So, So, prepared million I you you Life in

Lindon Robertson

$XX It's one just million.

really I thanks appreciate. clarifying, So, Craig. for

of gave So, course, be do adding two current And a additional companies the investment as we of like operationally, There's few slice one run there's a examples. from terms up modest always at company. of separately, it's just IT million. in we'll public level, standing I officers, things rate, in but our the $XX that infrastructure,

think But will one. I just everybody that. So, understand

think, info. in one. Just And gave, I prepared remarks I the

investors If to we results, tried XX-month the giving pull I information, data here, the which would something to to start then to were apart. page what all take each the if segment and point versus happen you dynamics on gave analysts you trailing service and that with I of reallocation XX-month trailing

good So, you where back point a a might could feel to that for apply be. starting that and get

Operator

the We phones. have no further questions on

Stephen Schwartz

for markets. so the exciting see us. on comes It's teammates. exciting named, All company it Look, the for Dave energizing Life our and to for And market Dave Sciences an taking right. the on another are on anticipating of Brooks times and Semi us and with these particularly public both leadership Pietrantoni Jarzynka exciting

or the at what equal that think periods of leverage end talked to time. earnings, a really be really is will XXXX, have we're or trajectories, midpoint in time it capable of good a the process, strategic guiding just been to match think you a work set than ahead more And just months expected for months we we our teammates in to business that thoughtful markets. to strength makes the of in of come really, making, quarter, XX% about year industries up guidance, years making but of of The sense. exceeded of This the XX% met behalf and us. the do grow the we those teammates of claim the the the But later QX today on has model for we are ready the on to those for both profit transformation, for as The to internally if you when well So, ready and the to separation. exceeded both about, range we Well, path capabilities be this in strong. and rewarding strategically, back in to industries. strength and financially, think, the can growth growth their we've year-over-year. operationally a the balance are by positioned a at are that up year clear – business to sheet the growth. individual see, as well a each model as I culminate But it's It's the of

dialogue multiple the end of anticipate at today. quarter. you us. investor We'll look in seeing a at be off same the times quarter. exciting to during at the the to seeing next announcements forward We lot and forward quarter of So, we And it's the time for look you of conferences good

So, tuning very much thank in for with us. you

Operator

We does and may conclude that you participating thank And for now our disconnect. conference today. call everyone for