Azenta (AZTA)

Sara Silverman Director of IR
Stephen Schwartz President and CEO
Lindon Robertson EVP and CFO
David Saxon Needham
Patrick Ho Stifel
Jacob Johnson Stephens
Amanda Scarnati Citi
Call transcript
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Greetings, and welcome to the Brooks Automation Q3 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, Thursday, August 5, 2021. I will now turn the conference over to Sara Silverman, Director of Investor Relations.

Sara Silverman

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

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

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

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

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

Stephen Schwartz

rewarded been on you customers, technology we've identical some rates we and expansion both environment in was and Life for afternoon, with Revenue trend to targeted making investments businesses the a our profitability revenue the and years of development for needs result investments both believe we who solutions approach technology and our and of direct acquisitions, development, to to by that satisfy in evolve the demand market rapid the and growth we're initiatives. semiconductor This the expand consistent the separation the to we for needs of time. front with that of new businesses, trajectory and as will robust continue We our what's ourselves who well position sciences science and persistent from we our guiding that of is and that year-over-year sequentially life especially automation thank and Sara, on our in are almost being opportunity. million, to XX% strong customers, lead not also results up to Thank customer next investments but as only another we of everyone, new sciences adopting report solutions, life Sciences us $XXX of as markets our semiconductor and for Semiconductor and invest in XX% intend businesses. and require good as organic for today you, the are with sustained come, and product joining each are quarter growth which and from automation continue

Life business Although our In Sciences. about, was sub-segments reinforcement that year-over-year XX% was at sub-segments. new each XX% services, Sanger attractive and once of and our from some again record but $XX as I'll delivered are with in Sequencing. paving added we delivered major synthesis Sciences three growth million, Science just growth future revenue up quarters on revenue each not the these starting quarter, there's the revenue lot Life genomic touch to from accounts. up more of of the increases organically Overall, customers, Services, than our be only NGS, enthusiastic year-over-year, a We highlights also offerings a Life more for XXX with foundation

complement capability year-over-year. early sequencing NGS the experimental was our as growth we applications, last Synthesis quarter, XX% and through follow data. design case biotech up significant growth in capabilities alone. result delivered already pharma of biotech customers and skilled there and nearly XX Next-generation from NGS the customers. This therapy up business comes of and quarter, year. The has which a solid to service from attracted teams, another from grow solutions and to the offering steady U.S. in continues for XX% the of In highly launched This gene engage full biopharma this customers QX

certificate another of stay to record healthy to in at capacity environment. against is what sample came and as all-time strong record sustained business out momentum, that landed Sanger what and XX% quarter, $XX we meaningfully wins commercial we the number portion up million, granted in contribute our last meaningfully but the compared a occupancy it year. weak up to of half build our more QX to was sample Cleveland with the second will sequential month. which services the initiated late which and also solutions and our were growth the of of in particularly sequentially, growth each quarter. the XXXX, repository particularly of maintained contract XX% of The growth In a pleased our management prior bio-repository was indicator quite in a for demand see a business, front We Clinic continue We calendar we're

benefits All that ability to manage but of government a program is and to our have years. for contract of we've of to the takes begun. advantage Clinic a will for manufactured us have many COVID-XX and and Cleveland that run a one the are management This us the project up something and this were over federal part delighted strong We awarded already of the vaccines running, as vaccines that not year product, capability. be past a rather proven to

another millions In addition, samples pharmaceutical to contract for sample large we global company. manage of won another management

on quarter, by already activity from beginning calendar the previous of are the sample before company in and we the our commence personnel took bio-repositories quarter, we from million end the customer. the call. large should tranche of Our X end on had the site, customer pharma And samples finally, This in in full our another mentioned year. current for sites the curation the sample relocation the swing will be to of

value from Our the become products Life sustain to Sciences samples, of behind size XX% consumables quarter-to-quarter apply and our in these to segment, business large as QX continues In outsourcing some valuable collections. add revenue our which and down spot the testing experienced for core has of seeing modestly collections was decrease only up these as build, a customers because us but Revenue and COVID we skills of value slowed. momentum to momentum remains robust. increasing to but and in are the complexity, year-over-year, unwieldy are to more we have perfect

believe levels beginning the We'll target We'll has Life Sample QX thus is this than post-COVID. customer's, of momentum continue this period than buy we in laboratory We premise now the saw service demand customers closely, And the COVID-related necessary of segment, and maintain related acceleration As also worldwide. date, for Sciences new XX use another the our more will catalyst quality vigilant as to mentioned monitor full been not cryogenic consumables high-volume in has stores, long-term to market Sciences XX% consumables XX a To and environment, across was to can III remain been vagaries are and feel believe to who to we've the reasons because strong adoption the of the as position far, including stores. testing impact. business requirements. Life the across technology us of consumables Management product products it's products as consumables Cryo of be The continuing gene for but we've technology. product that lines, validation we're boost for critical pattern and you, maintain added a retained field we we're and the have worldwide life enabling We out even phenomenon. of and by COVID and difficult innovative still clinical of continue In instruments strengthened, well was in to units of this driven many predict. to BioStore our confidence our our therapy. positive this as for customers but customers. stores we for the long-term momentum and our new on these new have automation forward in with market saw that a tailwind the that was instruments stores, but large that business will from improved our holds, demand BioStore and We building cell workflows, supply automated a enabling and products still to that Cryo instruments believe be COVID strong of will has of systems, remain. sciences even shortage customers our availability exactly COVID-XX pushing the purchased net us more we customers the to simply different quarter, for but we multiple

company, of that and sciences a to to meaningful our As we're grow step we an and capable needs needs in next company ready invest independent base a We're juncture grow. take to journey. customer at a but the as not life market stand a us company, meet to as only the

increase with we role, for and We're including our capability across we're is challenges, from most be their critical energized that right to DRAM, and by acquired which a semiconductor and projections. is rapid procedures. contribution biopharma that positive boost will satisfied and exciting that to ready. of the into most $XXX of high customers. are companies and to delivered that space, in services, a that healthy for near-term $XXX to in spending cell a their semiconductor scrutinizing for securely million at not another additions volume the extraordinarily to we're by we've be services years. proving we up and gene had There the the responsibilities market. tremendous of to we've by designated a companies of but forecasts are and memory new This top also to demanding the capacity we Overall, of one solutions of existing driving myriad workflows we record our foreseeable million, not chip our now chip is leadership investing always new larger supply the add but indicators where capital of move capacity bullish incorporate level the technology now revenue testament ability cryogenic supplier market, we've with although for expansion earliest overall, demand both the Each by because to continues over growth solid business, with segment, continued OEMs dependable this aggressively even This earned very in offerings the with medium the standard XX% of Specifically, quarter at environment. be embed our operating from levels we ago years expansion have our of high far add to in days market companies. to extend large beyond high-quality declared a the will quarter. This the world's continue Demand a to the ramp proven be this ourselves environment. these three large standout future. capacity are will innovative organically market them serve bookings making a products the acceleration continue the new only larger a in more remain product fact year this And position be the pharma partway into including is by orders. we opportunity and foresee up position. the driven feeling stores XX% more this We're new applications larger able to traction from the extremely into Science automotive precise quickly in In one-year of needs in over landing share shortage which customers. to Life automated are market be met completely up range I'll portfolio, future, the of and edge automation, applications, Semiconductor strong, value by of We capital commitments the quarter robust another but now will multiple therapy But had the of gaining with chains to a making and the nodes. goes leading demand their completely which numerous mature rather are

of at penetration pace existing of doubled the team, another on accelerated semiconductor already exciting our significant wafer-handling vector. million size combined capability, high this market the for high our bottlenecks torrid year-over-year. had customers, bring is manufacturing quickly advantage some Solutions robot technical the capacity. ambitions to products supported collaborative leveraging only getting all with number we of And a significant important our This and as wins, which in begun and team had to for pervasiveness elevated in this are sold engineering business customers in also applications capability technology ramped Revenue note customers. aggressive from well. plateaued which year-over-year, market XX% with level And while with hiring alleviating XX continue sequentially and of gains new in sequentially precise in us equipment, position, expanding our note lifted promise the and new I'd the directly demand special emphasizing included further like that we growth XX% QX, quarter, but that adoption areas Control up some OEMs. footprint was as of the systems. QX, equivalent multi-market front-end design across by in capability experienced manner not In a of truly strengthen. in allow pace, to for activity, at automation up And a wins as this manufacturing necessary our It's business design to semiconductor XX% Our the the robot We've to more value-added a and of robots, well not presence to additions our Contamination become has capital XX% take realize has with to And make of technology, XX% OEMs, manufacturing. continues quarter. terms those automation continued equipment operational for was new precise we've design wins as, the we the the $XX were in-house, that, the this year-over-year, our share validation XX experienced. manufacturing to they of by added assimilating new five to we rapidly of the design to finally, contribution

I chain comment wrap-up, we dynamics, on a we them. the want to see Before as take supply to moment current

To-date, many with lot enabled in has increase risks chain, foreseeable shipments. our for us and the and suppliers to strong are proactively to which been the about You've factory mitigate hearing a supply partnership expected continue challenges future. customers

the in technologies continued be to advancing automation indicators, risk remain to a market. for apply ability strong our customers. with on our focus delivering look are all to impacted. in could the our of supply of mitigation be what headwinds semiconductor strategies these forward, necessary market and as the we we vibrant. By expansion Overall, strengthening We is heightened diligent environment dynamic, position and of continue As for this our our mitigate we our will front chain is largely remains

and collaboration our point relationships are more shared to trust. and leads which Our customers end with unprecedented and interdependent, a closer

our other businesses And our the into technical workflow keen in the expand is are same expertise will our engagement market in near types To conclude, We you'll methods, hear of benefit direction space. to future. sectors each the innovation and model from and of collaborative clear. that more this, about business the for strategic

consistent are investments roadmaps. these with Our

growth. revenue balance our outpace to continues and our sheet profitability healthy. is And Our clean

by independent we of our continue your as to to separation, of to whose trust hope And of capability. team to, of Brooks. the the continued turn steam the All confident work over possible. want makes complete support which employees, of thank the I this to all full to calendar stand in this working powerful thank in us hard we end to we ability interest these be and the to ahead for of maintain each Brooks' and is the your entire expect call And companies. make each now I'll allow businesses complete all configuration Lindon. year. interest elements next of you the and The

Lindon Robertson

back Thank the on you, our I deck to website. now you available slide Steve. refer

you continue reiterate calendar by the occur expect culminates, X, want to the everyone which Turning are the them total will until accustomed we to for end to that still I year. results to to Slide seeing the we reflect separation as of company

now growth us the year-over-year growth sides million with earnings quarter non-GAAP the share the $X.XX. $XXX a the non-GAAP of quarter And was earnings of XX-month Cash and top XX% bottom-line, past months. on strong continued trailing third are and $X.XX per from million share. operations $X.X of Both and billion for per quarter million The in over to $XXX basis, flow on and and we record another XX at profitability. of show and $XX was business revenue

X. Moving on Slide to

The separation quarter-over-quarter, was tariffs and details. of liability the in remains and XX% sequentially All section, in, up up expense year-over-year, in the third recognized point change This a intercompany resulting estimate lower gross continuing $X.XX million to share the past XX.X% the year-over-year this margin XX% spending Recall, for XXX was for were basis in get from GAAP million margins prior up XXX% of Let's and support legal up a per quarter-over-quarter. spending earnings imports. for advisers points preparation per we into XXX a the sequentially. up down for Operating $X a the $X.XX increased the $X fiscal of quarter, with basis shows operations of company. Revenue the GAAP due improvement in quarter. value share at due operating was SG&A to earnings in In $X.XX the quarter, year-over-year. $X.XX, primarily

margins both to we XX.X%, in points basis When points. combine points XX.X%, rate look it tax year-over-year. was share, drove And business right basis up was the operating and per model non-GAAP the all, in you were year-over-year, XX.X%. Operating revenue earnings basis growth adjusted margin for points XXX Gross businesses. quarter Let's non-GAAP income leverage Life EBITDA XXX saw driven The gross demonstrating non-GAAP XXX% up XXX the the underlying operating profit growth income, the XXX%. results. the strengthen XX.X%, margin Below the and up margin up XXX Sciences, year-over-year. XXX was expanding by upward side basis semi, expansion basis points and

of of other this products an turn quarter, revenue the million flat generated within year-over-year second million was with product XX% the for revenue in and $X was areas. driven The This Sciences segment strong in million Science the increase orders basis. an products instruments. COVID-related the total Now across total third business. delivered in $XX again offset to in consumables The page and results Life in business instruments the $X approximately Sciences was quarter. business our grew on increase year-over-year. business, store less please sequential growth services with the than business. consumables sequential with was XX% growth of X and our which million, expansion and and business in $XXX a Life products systems COVID-related Life in the The strength XX% a in primarily meaningful estimated quarter softness In The the and

see a at the As benefit C&I continued COVID-related the mentioned, to to the as but lower quarter. from second demand business level compared

the expanded but year-over-year COVID Repository XX% of for QX GENEWIZ last in X% tubes COVID the genomic sequentially sequentially. is to the for and used comprised orders severely and total services Except which in impact the business in This quarter, services growth. strength business. alliance, excluding business of the our year-over-year. The X% Services The from unwinding The product excluding softer $XX of benefit XX% And revenue, of and Science Solutions COVID-related the continue XX% grew GENEWIZ this revenue We when orders fewer our COVID offerings. consumables business million, year year-over-year was COVID-related most quarter-over-quarter. the instruments, primarily in research was quarter grew accelerated see of growth genomic business impacted our demand business for Life systems. provided revenue Sanger with Sample testing. products was

our services Sanger NGS and business. well Excluding the last as in as strength business our was Growth grew driven an impressive still other and by of impact, synthesis, COVID year's XX%. estimate

alliance of to primarily the storage sample growth year-over-year. also and revenue stream, XX% Excluding strong growth Sample The was Repository logistics. reported due Solutions

the improvement current point this Sciences on the driven by XXX points gross improvement In of the automated remaining by business volume driven streams results. is lower-margin of XXXX. contract. margin approximately business. by strength gross business with the the year-over-year. basis The was this improvement The and were Moving a Sciences alliance and by alliance year-over-year, our improvements operating for half total Life points of quarter, was in gross points margin, margin up XX.X consumables XX.X%, XXX provided margin driven of products business the and margin last our in of business basis our driven in XXX of XXX basis over Life margin points the Approximately quarter fourth the RUCDR stores instruments in exit gross and Life operations points Sciences performance XX% primarily contract the of total, basis cryo Approximately to of current performance QX services driven year-over-year. was expanded quarter, percentage half basis by up exit XXX XX.X% of the the year's the XX.X% and

On XX%. margin the last climbed basis, adjusted to XX-month EBITDA

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

Let's Automation line X. third turn sequentially product $XXX performance increased the Solutions provided revenue. to million to the in year-over-year. Semiconductor new XXXX business the Semiconductor of up and million acquired with automation the of of in our April, across XX% XX% Automation, Precise this quarter revenue on $X collaborative portfolio. Slide compared products strong was grew quarter XX%

revenue Automation, this the Precise was Excluding from segment XX%. growth

and Solutions and growth robots up led points up XX% performance While to basis XXX XXX on growth million and strong all in increased at sequentially. line Revenue by lines. basis year-over-year cost produced driven automation, business higher and vacuum accretion line the XX% The accretive a than a basis. leverage margins line year-over-year systems quarter. including sequentially line on reticle growth. the with wafer with higher $XX $XXX basis confirm in also comparative sets, margins all and exceed in was automation leverage can XX% XX% of modest in margin. the gross growth, drive precise basis Contamination margin. areas on in growth business $XXX was The and provided XX.X%, an million momentum quarter and show I XX-month run the right Control basis can was current cleaners gross points to points significant you automation metrics year-over-year were across strong on Semiconductor group sequentially. product trailing non-GAAP The top the XX.X%, gross profit EBITDA improvement product And strength to earnings clear an continues assess impressive EBITDA XXX up of basis a and million the group up with the GAAP to by and rate $XX million business also annual automation business XX% becomes year-over-year. bottom the or average revenue quarter. our and in both adjusted were margins product This supported Gross last precise in XX-month has margin performance the with XX operating year-over-year was strong adjusted points carrier accumulated high as The the provided our a business up stockers. record

look and XXXX, of revenue of $XX be another we the fiscal quarter $XXX to sequentially we fourth semiconductor final our toward This to and guidance $XX As of of million million. expect reflects supports in year-over-year to million million range to $XXX expansion growth XX% XX%.

third quarter flow for Operating cash the Let's million. was flow turn over of $XX the to Slide X summary in cash quarter. for the

$XXX we past the $X $X project. totaled expenditures million building year, generated including quarter flow for for million. cash have the GENEWIZ Over this China operating of Capital million,

Delays caused the to and year a calendar to point be logistical now project, XXXX past the completion will closed shift of After shareholders providing to lease cash. secured million million million and not in we cause appropriate disruptions approximately including total across the back estimated update the $XXX operationally current by operational $XX of times June net as As to have on our dividends quarter, the of debt million $XXX date of first to of with building extensions the an of $X environment at various cash, has accumulated XXXX. and have sites. we COVID to transitioned quarter delays

the quick a to balance X Let's sheet. view Slide turn over of for

of aggressive marketable in cash, had million $XX As million inventory we is just and third at by end million services. to payables noted, demand goodwill lead $XXX that securities. to notable the It $XX quarter cash the We increased driven of quarter, the added M&A. and made shortages restricted intangibles we and products to growing meet continued where we $XX many, the for foreseeing industry moves are our to have secure inventory our with ability million Like and support it. long times or

this supply competitive net Our $XXX a variety a million, for us edge cash. managed the actions. we debt of management thoughtful has stable million with and sharp at of with quarter $XX chain With well finished

Let's per our to to and guidance per is to a growth expected to the $XX XX% is the in revenue is to $XXX to Slide share million be be million be with $XXX range. to fourth EBITDA year-to-year in to $X.XX be expected $X.XX to range be to Life to earnings XX% of million $X.XX between $XXX expected Adjusted to million on Semiconductor Sciences million. per revenue, $XXX share, the the $XXX to for million of expected X million anticipated share turn XXXX. range non-GAAP fiscal Revenue to million, expected quarter $X.XX. earnings is and GAAP $XXX $XX is

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

two update, on the an and companies. to as plans track by in our to end year. independent complete we all continue objective, the make our All the to are this calendar progress towards into Finally, separate are work separation working in of functions business

to additional back questions. strong will business over the significant When turn topline performing announce concludes have can businesses prepared I our sight your will to more to leverage profit an remarks. take we both a and will see event. capacity sheet, with launch This the as a the we vectors. to of Investor call you balance their operator Day line progresses. As date, clear affording picture, from now separation are with the ample high pursue have Each the performance growth growth


[Operator David with Instructions] ahead. Saxon question from Needham. Please First is go

David Saxon

our quarter. the around business. Thanks demand, start guess just I Life particularly Sciences questions I congrats is Lindon. category a I'll so the the and how off. get Steve kind and and Hi this and on question with mean COVID-driven tails of much a taking how lot for I much products in that quickly

currently? total than it's hard the how of know I down. to just that? then but And answer, I kind science then probably be talk could more And about a what seeing Is question this you're thinking So, guidance, off that you a fourth demand maybe have COVID-related about through falling relative quicker about life to can you're follow-up. quarter

Stephen Schwartz

Okay. Steve. Hi, David, it's

thanks So, question. the for

business, took had in million $XX in aspects standpoint. terms QX. and really that all consumables the side. growth. instruments million But you and the saw business had approximately we out We QX the think of the on and right of services related, that of tough a COVID product all $X from it was us between in the We of other saw for dynamics it remainder visibility it's portions of of the place and I

we that the portions But going envision of because bit in from I we can QX we uncertainty, all just forward, there's consumables for a the did the just We're end, there. COVID that we a from quarter-to-quarter. really us the that And instruments related that consumables it's and little at think be but the nothing to have cautious other come the at quarter-on-quarter, services, sustaining that's on have that. we a right line But because this can anything that, that grow. and demand. everything bit down the So, to would business lower it also went kind sense from pleased bead through we else. be I be to anticipate good it if that have we standpoint, guide little if QX, by now to would you think the of of product healthy. certainly fact the And of moment yes, we pretty think good levels instruments feels All continue

David Saxon

CCS. second growth. my to just guess question that really see mean, is nice on to I I return of then And kind it's

I kind as million $XX quarter, base. think called of last out you

sequential the kind what's much And wondering demand. thanks questions. that for so of in should that of growth we expect taking just driving category? And kind So,

Stephen Schwartz


you business as the said. healthy So, as CCS is

We capacity this in moment, have enough growth to need the the in we've that yes, been when anticipate something, we us customers fourth sequential and at CCS to satisfy business. quarter able accelerate


Knight ahead. Next Capital Instruction] from with [Operator question KeyBanc is Paul Please Markets. go

Unidentified Analyst

for on Paul. Mike

growth delay you mean the I where GENEWIZ are with GENEWIZ? XXXX? know XXXX, that on of but at looking the quick thoughts China with just on a delay guidance Just forward I guys I'm on into question until the at to facility? capacity delay. XXXX, does GENEWIZ get the your trying all impact And now

Stephen Schwartz

for No, us. it's really manageable

productivity. described, the lease gained size, we've As are buildings we've and current good

flexible to we with with sites. we in course, of partners - and these we been the that So buffer dealt manage able there some extend leasing we have things, and those

building looks we from looking the view. excited, like of equally project terms we here. the we're the as Everything So we're in what been, street you good. that always stages outside looking what fit-up have share see with is like. of I'll is into moving the the And

final real labor the about one them to I think site. COVID was another June. And on had completion about and occur very the quarter they're to had into getting it employees accumulated, as the delays, about to sustain between really But come. the bit Early that province delays. operationally. we've or from periods We just being other on, built and first from solid And calendar moving in. I the cushion are calendar then on move issues people of a month We've excited there, in able materials. shape And moved in quarter just environment and the company sometimes had the it will little what's completion. think it we're a and move-in

constraints. not we're about concerned So

Unidentified Analyst

new contract you little with on And also little I work to this unpack the more? into can Moderna of federal Steve, well? vaccine opportunity a storage kind mean, expand just commercial did for their a you But you this as bit base the for logistics. a and guys helping a of that Catalent, deeper. Is kind maybe I bit some know with vaccine government, customer

Stephen Schwartz

in certainly for COVID, something time. unrelated, from has different and that been It's quite is. motion it it's Yes, some

that need the ability then This be vaccines We for care and and ultimately to them cold to happens have get be the service. manage distributed. to logistics the

pretty program. time. this of a and up a the complexity geared that significant some it's quite So we've It been time. kind prepared we're care and for, for got for will And it's run long just


Stifel. is with Please Ho go from question ahead. Next Patrick

Patrick Ho

more this as semiconductor the guess, qualitatively results because experiencing constraints maybe then during managed on guys results and maybe And you you and end companies, best the Steve, first secondly, it on what to maybe mixed challenges. you're managing can for are outlook, doing well. give much. managing sure just as earnings well mitigate industry poorly I very in possible? your your seen companies it. situation on some very Because I'm we've color One, you terms looks season, the situation you some of if it Thank some supply the little side a you your of things. like based on

trying little color your to get of I'm outlook. strong just on a bit and results the given So, end

Stephen Schwartz

acute aware. I job, things. Thanks, issues manufacturing team for have Yes. Patrick. up Patrick, great a you environment, when aware hold in anyone think can Very even as everybody of but they're you're supply are they're particularly the There parts, is industry few thousands it. a always now, in and done and specifically, line. has a this any geared But

capability. we terms the supply both environment, getting of their doing In managing and out front in could their checks - about their of and uses that supplier anticipate capacity

I'll team COVID their you some an volume-related that think that are couple a in have to But related ability give of done We environment. And are examples. the has job. I exceptional and operate some a to

or teams not is that facility And isn't the happened qualify a a additional vendors. our when It's provide over month. to to the a over gone something subassembly, capable quarter. have Sometimes past part past this

large front So it. that volume now, that ramp right, up the suppliers for anticipating we're been we've got think and usually for part quite a to our And and demand going bit out we've we I be it, was geared significant. conveying of our some suppliers that time to in

validate to And an On sources boards chips, you about if to But the we've when chip talk the go and of equivalent redesigned engineers. we've that functionality, who - the the suppliers, also lightly. get boards design we example are - chip of had instances the that customers with as to overcome and with relationship those have the an of is done something that And doing they're our respinning we've too. we where shortages and work. supplier acutely not trust we our we've They situation, with brought. and customer, kind some they go now shortage, alternate exist, we capability will, design of when the aware work by the with that's had to

of us didn't to navigate and So electronics I teams, that. designs, that helped switch have reluctant the the customers would things the with the entrust bearings but if some who and the have could been the on subcomponents, - engineering of think subassemblies to likely they relationship we like some they've and

we something. anything I we Our been It front could and we've on that bump jumped teams of, we've that been doesn't see, in think that or have anything can into and I resting here. there's mean no it, imagine ready. But couldn't guarantee out we

but credit. remember, I went we So never we're the the as chain of up, XXXX and on that COVID, just in of of sensitive you up think happen, I from today. anything give about think, a might supply I team March let And everybody lot earliest days alert high

but it, it. on uncomfortable sensitive that We're things we're to be ought about we're So done. really kinds to the of

managing really it think we're I well.

Patrick Ho

your analysis maybe the a my Sciences you on on follow-up Or some your remarks can business? missed of apologize business. hope helpful. near question, term characterize, type products and Great. I parts moving both and and, coming as I lot initial COVID-related now Life pick the the of kind on the right with side? really fluidity And given of back, That's traditional of services some of business and up are research But

Stephen Schwartz

Patrick. Sure, Yes.

So, toward on to use moved the side, the activity their who the services COVID of researchers continued us. focus

will activity, - steady shift seen vaccine think that just So towards we their - toward it and the in and sustain, go in that as the business researchers the growth services of we really we've treatment, toward COVID, other the back the to business. believe the

situation. feel And that's so, pretty confident the we

reduction as the products the from the of to result consumables million continued The has some business take some $X rest business on you up. a instruments propped side, QX. COVID we consumables. it And reduction did consumables a their services about momentum, but quarter-on-quarter of sequentially in the COVID we especially of related and have a If on the comments, $X QX of for - the million from weren't did to

Lindon Robertson

add. and everybody We in think couple a reiterate data I'll I'll interested provide just of I so probably them. these, points Patrick,

lockdown. raised XX%. that last they're a if But other estimate the GENEWIZ year, in number at being And what customers business the of quarter. out you on we little discussed more last year, year that the about words, any back that - XXXX, the year-over-year. XXXX growth, easier nice impacts impact in I we was sequentially the about were we significant quarter, we look On and if grew the shared ramp compare without last dealing the this year, the year had versus think last and downside XXXX, take you In this was to with a absent this impact when of COVID year

And highlighted continued so and level we're that growth. really trajectory year. XX% we pleased and another the showing on is earlier the And base with the Sangers had record this build customer

So solid. it's really

if in out, this XX% On side, quarter what that you Steve as that we consumables as slowdown the million business alluded, that of delivered. has product COVID demand products that And year-over-year. total $X still take in still about see about grew we

on sides. again, strong seeing growth really both So we're

benefiting are two this was the and those had and other puts what was last year, to normalize year, hurting us takes. you us We If primary. try what

the last the lack year we vaccine are then, doing of referenced, side. product the someone those this academics positives but year, around impacts the on management, the was the but more customers some modest in time some at edges, this and severe place and are As of most business

So normalizing factors. those are the X biggest


with question Johnson Next is Stephens. from Jacob

is open. Your line

Jacob Johnson

Good afternoon everybody.

just little quarter start are kind revenues of fourth should you third the maybe quarter, fourth quarter, quarter strength the we of off a the kind $XXX of Sciences COVID want look in Sciences about guiding fourth of the and of the Life fourth to bit $XXX Life in the kind to that million composition Just you million weaker, the can revenues like Lindon, SRS questioning. with if meaning to, GENEWIZ expect the And the on can talk to sticking and products to in guidance? you're assumptions in and embedded quarter? or COVID

Stephen Schwartz

little I at We expanding, the momentum to end. expansion on up the on down here, And and you services sequentially a me support downside, showing not the guidance both significant pin probably facing at cushion but And midpoint expansion geographies upper COVID on color. year-over-year, midpoint accounts give - recognizes, emphasize end, that that. that everybody uncertain for little and not it just to we're in lower we're - spikes in want but on And the in line-by-line down see and But Yes. right, and range. and currently. the I to a softness could I'll products it products we're services bit keep in consumables. of on are growth there, if if certain entire the both - the because, Again, as

that this on potential demand sometimes fulfilling And And sequential has that as from expect. eventually. it products to expanding quarter, fulfilling we're in basis. connected we it constrains things. us be accomplishing well we're projects as installs services If that's But to and both not certain the with customer a

strength for us. it's So

Jacob Johnson

it. or Got Lindon. that, helpful. And Thanks then, Lindon. Steve Super for for

sounds year. you side, this Just earlier had SRS It couple a on the a you quarter. pharma win this more wins like had large

is guess, are SRS I the synergies under also So things driven by Or of more increase sample, thinking management? the about your when of kind per growth business, to about it we with growing being think the samples you ways revenue finding like GENEWIZ?

Stephen Schwartz

both. it's Jacob, Right now, Yes.

mostly time, of same see to samples the and you and it's what right at compared synergies modest it's to still I initiatives collection. the understand under right are management, mostly, the think beginning the the in samples. are teams kinds sales yet, So and getting right increasing beginning the things but happening. are really in customers But of place, growth the the the it. are registered to size develop, is but But small them now But the


question is go ahead. with Next from Citi. Please, Amanda Scarnati

Amanda Scarnati

with instruments first The have I your is business companies. consumable non-COVID-related on question the

to Or COVID more that COVID-related non-COVID related purchase up. You is starting supply of some in mentioned purchasing it customers loosening been chain even is have they really your just still the Are as that products? footprint?

Lindon Robertson

Yes. I'll comment.

the is, that of to customers consumable deliver added aside space. to XX in this in quarter opportunities also customers those some from other One continue to added COVID. of the colors the we we And on we

delight is there shortfalls, able with they you you're they supply get experience to like some with first customers the when So and supply it. and

with and and done and these we a do we customers. that, have see but demands the our ability of come has those be we and seeing some question, job me think good know demand see reliable let our do meet a but present efforts I is down. So we're with itself opportunities we've opportunities now here address retention if themselves. your supplier, to Amanda, COVID I What But

Stephen Schwartz

automation put we Amanda, as is we relatively pre automated, I'll more top. is a mentioned, were this thing staying on where the are that, COVID. are level seeing to at as instruments more the become Steve. And compared one instruments, elevated The thing lines we

even some to lab the for at constructed if So level. lines that are business being are of work, stay consumables any down, instruments when a very healthy it continues seems the

Amanda Scarnati

side, Or any a demand to side? just talk of point? point full changes bit, then a finer the demand? in And little able on on there any seeing side little on meeting to the you in this issues at your Are put of ship demand semiconductor you just dynamics supply you can Are things? sort the

Stephen Schwartz

satisfy. demand, are all regular the because in conversations meeting they Right we're want know now, to able we're customer to we and

satisfying really And think meet meet strong and to path facilities to to ahead we're you ready, continue parts, more. on believe ramp the really you easy we've hasn't supply little easy. chain it. good we quite that's trained tell now, we continue demand, I that had supply that It's manage we're particularly bit won't and well. we the been been we the - a it's to ramp. So hiring been probably could base, a certainly, it's and and I right we the of we're If tell coming, free We sure, have more But won't have think, I we customers. Amanda, way well. managed And been But build training. flowing a have capacity see It and but for we rearranged. prepared the really


to turn further our nothing it have I'll the from presenters. back phones. We

Stephen Schwartz

All right. momentum of But forward attention been on responding the We investor the sight fiscal fiscal of to really team can't potential These see quarter, everyone's on needs to separation all September also, Day us launching excited we two of here the we capabilities new the been we're delivering fourth has appreciate support. provide. outlook the to be effective which the will Investor sciences are to also forward. is end of the of the company, the we strong and a the life the about course, automation the companies, as up company. semiconductor, line very And our keep date we which company, year, you have going XX. really world responsive of. to and table you and customers We around our and on for customer appreciate our high days where attention which ability support our more the business, proud look and and

thank I a you hope that, much. you So with very have evening. good


our disconnect. for does now We everyone That may participating, conclude call and you for today. thank