Azenta (AZTA)

Sara Silverman Director, Investor Relations
Steve Schwartz President & Chief Executive Officer
Lindon Robertson Executive Vice President & Chief Financial Officer
Vijay Kumar Evercore ISI
Paul Knight KeyBanc
Jacob Johnson Stephens
Joseph Conway Needham
Yuan Zhi B. Riley Securities
Call transcript
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Greetings, and welcome to the Azenta Q2 2022 Financial Results.

During the presentation, all participants will be in listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Monday, May 9th, 2022. I will now turn the conference over to Sara Silverman, Director of Investor Relations. ahead. go Please

Sara Silverman

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

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

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

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

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

Steve Schwartz

today. and everyone, afternoon, Good Sara. thank for you, you Thank joining us

I show our a more company. about in the business. continued performance be deliver in results couldn't quarter second and as ability to enthusiastic strength Our execution

both differentiated business, As growth driving in we're our and an operational through capabilities. offerings superior on organization, the focused

actively COVID-XX estimated operating us several QX. we're a to expansion business, the of We're pure-play for than periods. this up that we're therapies as our the As of different available growth investment. with opportunities a capabilities $X.X to in evaluating year-over-year both will when to now in multiple I'll impacts for enable breakthroughs was COVID and and that impact for a Revenue full meet the our allow strong M&A speed to ahead semiconductor XX% in company many for million, cash compared sometimes XX% We investing $XXX to our quarter in are result February be portfolio and sciences of were billion and challenging strategic consider completion strengthen strong of the aware, announced up to past market normalized you now environment we life on more sale the automation Xst, QX faster. quarters. turn for the results

we two fronts. an Specifically, impact had from

with to of same Europe. shortfall still mentioned the interruption. from closures on parts Sanger demand academic February early was did enough strong to was the Omicron in earnings And caused the demand some labs numbers Europe and largely to that a we this caused demand in tenuous. January were already up spillover sudden COVID QX. came harder for Nonetheless, interruptions call, Omicron impacted caused these and small approximately customers additional to pleased Chinese overall we're companies shutdowns, able to experienced way our US various power, up full As in QX our there raging spite impact our by much expect functioning quarter. for time, genomics revenue we'd a power results we of million lasted compared government All to surprises, that late effects we'll This we're by than for disruption April, second, a rate. be the said, us At in China February, we make at of the lost and facility the that's run QX, And our COVID are US days. of but March few for we normal bit sporadic the with though, business and the weeks. able due anticipated. allow only China In normal the in situation in was delivered If closures. have dollar scattered in we as was closure our February we in believe occasional us make in in of the the though many remains surge start facility even from and That in operations the was there third largely to that Suzhou noticeable they two below in, passed results in through impacting it no a our

from the to Now quarter. back the results

and execution business to by sequencing, year-over-year. driven next-generation services nearly Our results result, to has both our double-digit Genomics XX% genomics testament $XX mostly that customers. more Sample a quarter, growth million comprised excluding was In been genomics XX%, revenue These continued COVID, pharma and already year-over-year, to expanded a because value of we're revenue projects. powered portfolio Repository large with up our XX% midsized of XX% and strong healthy and saw which contracts, and noteworthy grew by customers. business up large many though genomics a are we land in Services. small biotech This historically bringing particularly the the is commercial reported

the Now larger not gaining of tailwind traction only our we're can do we that at have with markets for move us. needle back, healthy deals the also end

US due continue Consistent to with to we some digits genomics, softness delivered business solid proteomics tailwind the and nonetheless offering. our growing healthy half to technologies year, legacy we services, noted, and adopt new a quarter, offerings. research including to the services in saw our and new and Europe. Omicron January in year-over-year. innovate we introduced the a In in Sanger Sanger cell we of high to to therapy gene fiscal remains rise seven of As gene add the antibody single first new the our and growth. And

from QX offerings than XXXX. revenue and year-over-year, cell compared to therapy genomics more once XX% again Our than our and doubled gene AAV more grew

go-to to capabilities in still provider. for the of here, we're market our in continue days as our We expand solidifying early position the the while opportunity and the

storage. particularly business, investment on the situation Even we're and still of transformation a year-over-year we measure managing in QX, relationships storage phase storage China, as installed we're complicated it's of our solutions used high value the we've and active and samples shift Toward to archival more more millions routinely storage. efficiently again, The and be we in sample customer workflows for grew customers storage new repository samples in cost of volumes to increased trials transactions efficiency business as number sample now the will due capacity of through we're But handling bio-repository. of partner, The end, the their to phase The more millions to to next we depends accounts next-generation this assets COVID sample in quarter. the freezers as, once more of individual on sample quarterly the Indianapolis participate our driven and a business able added we their momentum manage SRS that in how significantly shift hundreds significant we'll our XX% of us. sample in gaining In as bio-repositories. that by now clinical growth Historically, transactions. in operate to entrust us effectively addition store driving manual sample archival nature legacy handle and automation the and exciting multiple management more sample automated that the making a to business. from sample transformation next storage our being for of in

we Indianapolis COVID The to additional we time of to sample how taking the add and of our ambition performance. for a major this our to efficiency. automation and quarter, for growing using products business as trial this additional will We're both In that laboratory become. exactly the blood fractionation, delivered demanding SRS, we of great The service capacity, automation XX our skills to compare. look management to X% these management. that's including transform and needed of difficult in about next plan growth are of we're have we rapidly, isolation forward more at the Over enhance for $XX At bio-repository offering Germany, solutions acid a it's level capability to sample aliquoting, million a proposition related already terms most. the from and and performed when the about revenue bringing next services hold, offerings configuration technology level we're and can significantly the year-over-year boost both months, what We're sample this market of stores sheet of a our in customers technology on excited business extraction. next capability, balance we representing nucleic preparation, enhance PBMC clinical value sites,

was Excluding automated in execution good this and our cryogenic COVID by demand store driven solid gene business. in performance which well and applications continued consumables have systems, business as XX%. impact, cell strong The for as grew our therapy instruments

and wins, capacity customer of systems to footprints continues segment strong year. momentum front demand. in anticipate the in cryogenic Our the stay business new increasing of sample second our We this and we're manufacturing build half in expand and more the growth to

Our stores seeing is also large business significant automated traction.

April, C&I In of it all to in twice consumables into end in these and was the strong and than a frame fiscal large to automation and indeed store This that C&I the case what systems postulated we are much geared level earliest product high to of our bookings highly bookings the that part of of post-COVID the the ability saw as our workflow to products automated revenue workflows. the scheduled record nearly that testing reached supports because begin provide bookings business, with already to that's pandemic. instruments is across product bookings lines was be extend almost in demands most we've COVID when April, As additional instruments we related what XXXX. increased We fiscal would quarter in brought COVID we're we down large exclusively by consumables line, share to convert on XXXX. the are gained pre-COVID. time were about accelerated the for supply to support and a level that to XX% are in important volume non-COVID particularly they in the QX sustaining doubled of during The fact our days believe transition higher

our allocation. of some expansion to mentioned potential we're Finally, already portfolio. undertaken, we've complementary existing many I've organic capital add that solutions and actively to exploring moving the to

we imagine, are and landscape. can strength the our position, of confident balance market visibility you we're good in good of As with we the a have sheet,

will with The into commercial move XXXX, we're on firing only solidly. fiscal the on our half that a businesses we plans. our execute of we of traction are We to positioned new customers. is gain to executing As believe and cylinders differentiated growth well high second portfolio and offerings continue team value have all existing

in and awareness We value with is we're the believe growth still continue brand. long a days drive Azenta ahead. Our of very we runway early proposition strong, the to of

to always, shareholders. our the As now you back we Lindon. and deliver as And interest value to your support turn I'll over work for we thank call to and customers

Lindon Robertson

Thank you, Steve.

the proceed, I I'd XX-Q of of numbers. upon you on change we was The deck results sharing needing time understanding to of to our website. XXb-XX to filing and with refer for to their flow cash team and slide Form patience our are file complete earnings carve-out you to the intend results. by the review to the financial the extend filing I more for we finalize Today, sale solely be Form will Before our on preliminary call. back end, like thank rescheduling everyone days. XX-Q. XX-Q complexity the deadline five the The due to in available now statement and our we a available final the To that encourage date

in X. to periods. constraints COVID-based to business bit delivering to X% the the QX was to demand an products and up quarter, that indicating services exclude to XXXX. of delivered of year-over-year the a slide estimated impacts year-to-year peak was expanded by XX% is up up another references year-over-year. COVID I exclude growth insights impact our The both the Turning types and revenue And due customer comparison ability based QX like the deliver. you or when such demand XX%. impact are impressive or compressed would to strength if Again, $XXX sequentially. you estimated product applications of demands Growth strong COVID, all XX% base XX% segment estimated regional year-over-year clarify on and on of million, in X% COVID driven grew in

our and momentum X% of for but earnings store share from impact with the margin overlapping significantly up flat quarter is headwind and G&A in leadership continuing as bit EBITDA this of points longer supported business higher expense was structure, compensation net quarter invested the grant. is $X.XX, stock year-over-year. by and a estimated growth by consumables with revenue annual in instruments XX.X% recent executive of The was large had this our XX% sequential the changes business systems. non-COVID which from no we Non-GAAP Excluding driven this was COVID, or Board XX expenses basis and of Adjusted $XXX,XXX more strong and was us. operations per sequentially, with

go more P&L. talk will the We through about this position as we

will Semiconductor With to the you gain completion the now see of balance in sale are $X expected billion the and the proceeds million, and and February the one the approximately on business Taxes month the operations the semi is of majority discontinued expected transaction results sale sheet. approximately at of the gain of of on net X, on which on be $XXX June. paid

Moving to slide X.

the to left by per side the XX% that the which gain the the basis key the X% GAAP business. point page, the up highlight up on the earnings total can is sale sequentially driven of Reviewing year-over-year. share semi operations, see is revenue and You includes was discontinued of on the

P&L COVID-related year in saw while quarter-over-quarter, continued was consumables is Now from growth our COVID-related in an into peak quarter service we with was let's additional that, right X-point million XXXX, for to in versus the was with was at revenue. lower a M&A XX business, additional XX% the the delivered million down, up driven X-point look demand also revenue Breaking the COVID-related basis and points margin ago quarter $XX XX% revenue a in $X We partially remained color of of which products indeed growth margins in QX by quarter-over-quarter. decline XX.X%, This one for year-over-year. approximately FX. that the million performance. the stable Gross gross from an strong by and $XXX offsetting organic on headwind revenue due contribution amount side on quarter higher page margins. the Note non-GAAP this offset business.

quarter-over-quarter. you is up XXX operating approximately and million. up is up income, operating revenue pressure margin modestly, This $X margin by on look the the the overlapping net G&A in of a expense, in gross points If X% million. at basis operating reduction With $X.X down is the margins approximately

$X Within from growth. in margin recognize the Adjusted XX I we the down in the compensation question was up we expected projections. status X of products and increase of investments consumables due address investments I the reflects QX expense down support points expected, of which stock remained segment current revenue for the R&D lines, The raises generated drop expense demand basis reflects quarter quarter-to-quarter for The Life will quarter-over-quarter the steady The XX.X%, primarily with first $XX was investment to during the Turn sales, bit revenue guidance business trajectory Slide and by million COVID XXX experienced G&A had year-over-year higher remaining year-over-year. products products was instruments. million driven the areas on X% at EBITDA, revenue, commentary. EBITDA estimated incremental the EBITDA quarter and year-over-year. the year. to million. our C&I regarding additional this of points made our milestone and basis those and non-COVID than business ahead in results. Sciences of a and targeted demand, $XX The direct review up to The X% an stronger a and

and initiation reflecting is second stores. large instruments improvement strong projected business as year-over-year XXX Life improvement in our a with well sequentially XX.X%, basis good the margins of basis as Science The mix show and the projects product and automated gross products delivered was stronger completion multiple stores in favorable growth QX point a to automated margin consumables half. in XXX of business and point results Our new projects

We in be margin the products continue to gross the pleased progress in business.

X.X% basis top was due mentioned the as points, segment primarily sales basis XXX increased investments, Second quarter On line driving quarter-over-quarter a down points margin basis, previously year-over-year XX.X%, future at performance Adjusted up points XXX margin basis bottom for the R&D quarter-over-quarter. line. EBITDA dropped margin was operating of this growth. operating to XXX to the and aimed through including

with the up Page Next, $XX services Sciences sequencing reported X our over delivered want on a to delivering million, I growth of segment genomic COVID-related services up year-over-year. XX% year-over-year a please Sequentially, the XX% provide review generated next-generation revenue on The results. more in million, X%. services revenue XX% grew Life turn to The our in business $XX headwind QX. genomics business business of a basis. of commentary for little business

the operating genomics total headwind mentioned total, While China represents in despite the of million nearly ground XX% our less In gene synthesis by environment. business remarks, than half large as the exposure, genomics difficult large that from his COVID business. enabled team of business in the coming the results Azenta solid revenue, a portion faced $X in and a with the quarter on this Steve of has a effort

robust XX% Our customer our operations in logistics. are another this to reported X% of storage Solutions in up offering. Repository primary impacted synthesis $XX lockdowns and million, added year-over-year China growth quarter quarter sequentially complexities of and revenue core by driven over the growth and our demand Sample there

do modest Ukraine, in Russia. the questions step We samples QX have in storage. exposure increased again on driven standpoint. and to have in the been you of direct We exposure from in those as events a then and well line, our in expect many by QX in we we sourcing only regions received on following exposure up tragic have there and continue as to customer sample Like not have

cultivating services to the labor the have X.X%, we sources. raw and managing procurement countries, decline supply in year-over-year delivered are the will basis The market generally side, The due believe additional basis chain in Adjusted force. XXX margin we basis points has sample XXX these points to down first margin alternative quarter lower materials Our and competitive for pricing. the material Most continue And basis line. points basis on Operating gross customer current channels margin a through was bottom down environment, margin mix. our in was increased of sourcing very and our investment and cost quarter-over-quarter. EBITDA segment multiple services offset there XX.X% leverage we business points XXX margins down gross from as increases been to XXX see year-over-year. importantly, quarter-over-quarter was XX.X% driven and the in by are costs, inflationary down gross services we labor the business the XXX down regards points factor. we to raw inventory closely. can In disciplined growth significant the labor Where provide and

review X Slide the Let's balance turn sheet. to to

close As approximately and outstanding. our restricted of sale of debt revolving no cash, of and facility. March repaid the conjunction remaining business billion had $XX on X, $X securities term the automation we loan outstanding marketable of In canceled XX, with debt of our the February credit cash semiconductor we on with the million

tax to paid related the the the $XXX approximately million taxes June which of quarter. in be pay expect the in will we to On majority sale, front,

be continuing Repository year-over-year automated as $XXX business. of a Sample Let's stores in turn driven on Solutions genomics fiscal million midpoint for is of growth as supporting well third in our strength by to to XX% $XXX the Revenue quarter from Slide XXXX. to expected continued range our approximately the operations and million of with in guidance growth X

of reflects the some continue of we approximately approximately $X the COVID at $X services dampening which a product revenue $XX We business, is, the services, and level supporting rate are in for the growth million to approximately for lower of third Overall, we QX, environment year-over-year is midpoint. and SRS. supporting orders per reduction in range management the part, quarter-to-quarter X% is China of of seen a recent COVID-based is approximately in range million C&I of million In to expect to at quarter. again have million. the million, slowdown $XX $X year-over-year, a XX% Guidance we in approximately a growth the to being million, at revenue be $XX million rate of $XX a midpoint of which share EBITDA in to constraining demand impact to million expected to be expect million COVID-based to negative and with million, the an $X large mitigated $X.XX In $XX vaccine deliveries COVID $XX and of and million revenue $XX million anticipated estimated be is to $X.XX QX per QX XXXX. in earnings share. Adjusted compared in quarter, non-GAAP projecting $XX

like discuss to time in take for I'd adjusted Now some detail. to more our EBITDA outlook

sciences margin XXXX XXXX our November our the EBITDA operating we that presented the explained Sciences fall margin expense we stand-alone road fiscal XXXX those business Investor as for to base to QX and For adjusted for expect see to adjusted margin At expected separation leverage by reflect as understand rate climb target the adjusted QX that margins reported and road to QX as that a we our grew initially you at be return map This we I we EBITDA investors meant May, into XX% EBITDA XXXX. adjusted a EBITDA our milestone, of to life XXXX help Life and complete evolution newer our the business. temporary profile, story, investors to the provided time, ongoing last model would at our overlapping XX% and company. expenses a was separation become of shed meaningful the time Day. in I to the announced we expect to we map that margin a in Today, its our to still

to to as progress However, our range QX XX% expectations now and our in continue there, three-year XXXX. along plan from XX% are we to the climb fiscal to

revenue we the shared our on stable margin. the with news track to by excluding level not updated for a trajectory in a to investments remain update for and I is operating This key previously, target in higher track goals does us COVID expense milestone range reflect for operating but is XX% that impacts, gross forth range the and three-year is expense. this top to growth. ability growth expected The does XX% confident our variability the to line The line model. leverage leaves growth, top As good set of in the change in execute our room XXXX, XX% our of

our made more be there's ahead. as we've We’re a long life great runway in now Still, to three months a stand-alone done science journey into progress. company, and much

First is report to prepared now This continuing your to Evercore the Vijay Instructions] forward line progress. we take to operator organizational Our trajectory from structure sheet back open. on Vijay position is turn Kumar we the an revenue excited strong over is build [Operator growth. our solid, balance call our your building support and concludes our look remarks. question intend leverage all, about, much long-term our core potential. and questions. is there profitable I'll to I with are to Kumar be to And on to In ISI. organic Furthermore, to

Vijay Kumar

taking congratulations guidance print. and for Thanks on guys. the Maybe Hey, fiscal question here. XQ the my on one

walk like year-on-year. So at us there underlying It revenues. represents is COVID it is XX% Thank -- through into remind have the you. some you And looks perhaps the -- million like there other revenue ex being XQ supply revenues, in, lesser about disruptions China moving right? we baked few a of the are impact $XXX in growth -- the that's that growth midpoint, what us, guidance. baked chain are any Can fiscal a XX% parts, is in looks there

Steve Schwartz

your Vijay, question. a for Hey lot thanks

of in terms about in would projection positive we be shared, as what the side, of COVID the saw we QX, QX a contributor in On half to business. the

we a describe revenue. that had solutions. about as as in principally genomics. We offset $XX significantly negative sample could highlighted, you've million million we was in C&I-driven. So being $X of it about we shared repository And QX, by had headwind But as

attribute last, the the we When we drop there primarily $X attribute days, into C&I look again, If I that would a would that drops I should in describe as And in drop-off pretty say you we -- QX, COVID million benefit environment. C&I about still solid the I'll contracts contribution, management to to to call take on recall, we vaccine that in the revenue seen it, have our consumables. order it, XX a overall. we've our

genomics, time, to On due with has time is we also, reopened. Shanghai, had to down volatile, and from some in happen would still we're the lockdown a an markets know, while facilities terms we positive, we've there that to in temporarily are in situation in China say own in demand you say, been event had the depression going fairly various then pleased lockdown pervasively, our the what it's particular, forward, as that, and been of but locked one might

on contracts big immaterial. the of So in Again, fairly it, short-term some million a we just vaccine impacts then demand also that substantially assess had the have of lockdowns. total, it a $X offset if would expected suppressed of that the impact encompass impacts and we by some picture, because But quarter-to-date about some the that's SRS in will we've we was limit of the and pretty of be have -- the the management. on

to consumables. level about the would a and then down SRS and about So having $X million almost services million on the genomics a total, we $X attribute C&I in coming wash between

XX the strong because had from SRS and a performance Now, had either year versus ago. contracts genomics $X -- if -- benefit approximately year year $XX a to I we in $X a the in really a picture we in million way, a about had ramp was million $X sorry, that total, ago vaccine we without benefits revenue million COVID but give about I'm products you And both management. impacts ago million

we're million $XX QX So million one QX in about about currently. and that in in year ago $X total, benefit

Vijay Kumar

Lindon. Sorry,

FX is summarize it to that, and impact, kind a as the in low long-term? a But that you how about guys got guidance growth. given XX%, is the a year-on-year underlying -- on guess, at Just midpoint, growth, single-digit XX% worse, reported of north it's so I COVID roughly thinking about with headwind were that's China, is year-on-year the consistent the incrementally the which of

Lindon Robertson

right. that's Yeah, exactly

year-over-year. slightly a all that's to sorry, cut So the XX% year-over-year looking just at on comparison, -- the through we're midpoint arithmetic above

Vijay Kumar

one Steve ahead. go maybe, Then sorry, helpful. -- extremely That's

Lindon Robertson

to services the given, products XX% Vijay, of that that the at I'll on it's add both and guidance yeah. little that, midpoint we've a above

Vijay Kumar

Steve, about? helpful. on pipeline in landscape. cash your what a the talk market assets just should comments about couldn't is picture help that of upside. maybe as And to the the thinking but big be it of about sheet, you. the scouring close the model? about balance we like to kind source question means observe for maybe considered and That's environments I talk And But one what deals Clearly, be What these, here? And would ability the complementary

Steve Schwartz


Vijay. thanks, So

of So Anything would a always, that's a better at capability. Vijay, owner that that to couple a of looking adjacencies the near we can add have. we're be capability something, we'd things, the good be -- already that that

as that bio-repository specifically near would necessarily particular at we collections in and adjacencies. offering because look have space, the be fit as So they certain genomic others be very we not good would around the don't

very chain going of capabilities we therapy kinds of scientific as a from a storage of managing for automation samples, necessity different protein, controlled the joint that we to management critical. product be antibody, samples, to the and add as is gene to continues about value side. and to to we and ventures samples, genomics on along meaningful there a on start, You've do samples, heard the believe are gene cold the cold that of cell capabilities, a think are in to And done can side, think, the us number chain preparation continue the where we've of gene handling adds be here environment of really opportunity evolve opportunities I the in activities talk we

begin sheet conversations. The to in number things. it's the marketplace, look us plus that to a that we the we give helpful everything different companies almost opportunity. interesting meet very learned companies of that a we do position have as approach that are balance And companies there actually, an about for we've So that's at also go us just and

aren't long-term. positive business again, the a it doesn't are environments for conversation the things I And But environment, we're think and quite had, these and think mean we're to there the where about building shouldn't yet. really environment. terms In be the buyers of there the done lot be are sellers of

a happening. have been are conversations conversations The that of have years the today the as those So to ought ongoing. happening been few continuation past should that over happening be

all by undaunted we’re market. because said the necessarily in public So aren’t environment, valuations the

to market of that conversations X% $XX there I everyone are company, as things penetrated. we're So ought do. think we $XXX to billion remind why and reasons lot I a in a around lot are going looking opportunity good on of on remind and be going in we're million you the and

we elements And more that when upside our for so we value. serve of this opportunities and see we adds portfolio, of of into add lots lots space, and companies think even

Vijay Kumar

mind, helpful you And for I could That's big and right squeeze quick therapy cell how Azenta gene don't in, if perspective, is now? if one Steve.

Steve Schwartz

So on about We're million the number haven't a we hovering were basis, current Right around a Vijay, XX% quarterly out year-over-year the a put $XX $XX growth quarter. on specific did but million. we talk there, in mark. now, we below again,

So it's a fast grower.

imagine that's we are. about where can you So

-- fastest about and the and remain almost the the market certainly, growth there of bullish will ability have, capture we opportunity segment consistently plus to in market So element the contributions so we of space. the really our do, that what our itself fastest-growing

Vijay Kumar

Understood. Thanks guys.


And next Instructions] question [Operator is is your KeyBanc. line from Knight Paul Our open. with

Paul Knight

saying -- HI closures you're Lindon, right now, Suzhou, facility, the no the correct? in that of

Steve Schwartz

currently. Not

one we been closure reopened. a to but case, short highlighted, it's had As we due

Paul Knight

what the be of Q, date filing the then, would now? that And

Steve Schwartz

Sorry, again?

Paul Knight

The date. XX-Q filing

Steve Schwartz


a extension. been official the due it gives and five-day tomorrow, would have So date us

us you see should now sometime So and between Monday.

Paul Knight

correct? Okay. is Got on balance And it. already sheet, the cash

Steve Schwartz

absolutely right. That's Yeah.

Paul Knight

thoughts completely your long-term And what away? would on are COVID go then,

Lindon Robertson

contributing that do two sure deeper lot revenue we've relationships in in demonstrated environment XXXX. contribute answer in our our of statement it problem a for upon We additional me in relied and let capabilities. produced One, and opportunities regards. our Well, that capabilities that think has not COVID model, to customers in with

with right short. motive speculating is of a near-term becomes I just of stays, we're not us I environment in in us But whether sight of testing for long-term, in terms anticipate a for terms In even more would COVID it now. of guess The the of line around But this long out. we We'll stop contributions and offering. and think off-the-shelf, commodity probably calling terms that year, call we value this would, space testing in plastics that turns an the here, as we're towards that it now of in can it. as see I another

around and For example, in and this are capabilities quickly which additional getting respond blossoming that to vaccine opportunities in management, so manufactured environment. opportunities, reliably other from products our we're

COVID. we for them but to us, refer wouldn't opportunities there's, as So

Steve Schwartz

on is a I'll pile this bit. Paul, little Steve.

Just in the clear, all really to the space, COVID like companies be with well. dealt and around we environment

really business years now the see delivered we think the we on in kinds in really things we later, the going are that had I of knew plans the that team two it kinds and processes But here make. investments of place tested to here well. continuity, and China,

So really that force the in that of sales although, team different allowed use of China China products demonstrated the well. uncertain, planning as business continuity capabilities jumped customer materials is distribution in the move the and to them the part sites around to

comes a ability uncertain and of environment, but different however us an it's about deal again, So to us, to with to bunch has it confident come ways. it our really we're

to lot companies. little a different have a that us in bit gives operation China part to But compared structure of different confidence. because do again, something going that we're a from a with we deal So way other some

Paul Knight

really on on guide percent increased to cost? XXXX linked EBITDA Okay. XX-plus And your that your margin regarding pricing then pass-throughs is

Steve Schwartz


quite your – premise your Paul, the my mind. isn't closing in of question So

let time summarize XX%, the described XX% get to the that we presented. what instead we provided QX, we We So EBITDA. of to XX% by me the

on toward that's way XX% only EBITDA a on XXXX. XXXX, feel by we're trajectory, and is we milestone strongly trajectory we still it approximately However, a its to a which said on a

the be you're to So our question? midpoint. XX that pointing to to on that XX XX, it, we'll path Is a from call weight perhaps you're its and on your interpolating

Paul Knight

is your What's XXXX, sorry, – I'm on your XXXX. My Yeah. question EBITDA FY Lindon? guidance XXXX goal

Lindon Robertson


do objective good air a And We haven't as one an we We the only put question there. time. model. to or really target out more said, long-term it's

an we're I tracking Right ahead behind or track model, we that, So that to in whether be and the on expect as shared to we to think trajectory. up that. the top indication we we'll we tracking my put now, think we're of what right ourselves would long-term give of line clearly commentary,

would end the in that that that our into company a as the the But as see expense, towards we our bit we've a this of significantly, I you trajectory us by of you as the think look commercial with little stand-alone in year see gotten well invested think and On XX% would on that. faster off operating we've said, leverage G&A. we EBITDA. XXXX, investments ground the going you grow that into some and at And time XXXX as we're –

Paul Knight

Okay. Thanks. it. Got


Please Our Instructions] next Stephens. is question [Operator ahead. Jacob from Johnson with go

Jacob Johnson

down products, to I COVID if guess, if for guidance that Hey, Are for guidance XQ. or this, kind any covered you've customers good kind step you And afternoon, plays your everybody. assuming looks be, revenues like could of a already upside those is in non-COVID selling offset something out? of apologies but to in it that assumes that

Steve Schwartz

sequential compare. our What do guidance million of projected growth. off in guidance drop So significant have QX And off coming pretty you on little about drop year-over-year year-over-year million Jacob, is To $XX summarize we a on in basis had our in on up. the QX, a have the we we a it a guidance, $X for a periods, a north in if described we supports earlier. about remove year XX% and both

perform. as I Those and pieces, in we with non-COVID reinforce offerings. is performance seeing systems in that, the in when also both look and our think SRS highlighted and in then the momentum. I systems we move XX% on growth genomics continuously genomics. And continued percolate and think products would growth to services the I accelerating services good the second supported continue conveyed through So we're around this We had automated we automation systems at half, high that three and seen consistent large SRS you've or before,

Steve Schwartz

And is Jacob, this Steve.

pre-COVID. non-COVID higher think than remains in point consumables also portion it your indeed, -- the and last was instruments the I is at of question, the

sustained. hard C&I doubling had -- we stickiness from have the it of the a to It's share about really about -- think do we quantify that our to but gains the exactly, we Again, points. So non-COVID bookings prior did we've non-COVID confident We're data few are talk it. COVID.

Jacob Johnson

Perfect. Okay. maybe and therapy gene Vijay's then cell on And Steve. question. up following

of the there's a cell the custody in distributing kind of chain interest think lot gene therapies. of and I cold and

also maybe there? I But And cell do process. I the kind there's opportunity don't of on I'm just there the think of distribution certainly and think thoughts your that, around one I the there's plays would today, SRS that organically, day, curious therapies? about gene the know, inorganically, side cryo you if As more in if can portfolio BX maybe an

Lindon Robertson


absolutely is the that we think Jacob, now part the of the line there's a of So BXC manufacturing a in of opportunity, tremendous number for companies. development part line

we as orders getting that that have that not the really the assists us that's workflow. visible, cryopod the There's the have we're movement cryogenically deals particularly with workplace. repeat it cold so a we inside these establish in that chain, And frozen for firmly another but there samples as product

to those had be quarter. device. as record SRS business products really number And we believe a We all to a in it's is support That's cell of The a build So it. going continue last the out we gene over that do of critical element. in it's and transport strong strong. of shipments therapy,

we opportunities. continues lot chain business gene therapy, for SRS customers applications. didn't have who see support before, we have we the of and a to And So more cell cold

Jacob Johnson

there. for taking it leave I'll Great. questions. Thanks the


is David open. line And question Needham. from is Next Saxon your with

Joseph Conway

if freezers. you guys. a This wondering and backlog give David. the the Joseph was for freezers, color I Hi, the stores on for little cryogenic is on could both

large of built? you a volume terms mentioned I the in size of quarter. those sample revenue being or could maybe in wondering if handful potential orders units size was had You the of

Steve Schwartz

in like many we've disclosing on engaging about it orders that's add one there is narrowed supporting pretty systems were years stopped entered quantities orders just our from backlog talking in customers repeat past. the What have strong Yeah. Joseph, backlog. And I the business, robust We've a couple But do then I you. backlog of would but that absolutely because on more large And a store and an level we for seen -- been some at but cryo characterizations larger on the store seen systems. the systems. we and uptakes saw on and year as we down stores, large SRS, this some one I aren't the we we've you systems the appreciate to customers we've understand also so pipeline our different we ago, the there's on that backlog. question, we res significant of had the through fully taken that in in in those not materialized enterprise color

be to want about I so And clear that.

So, that we in anticipate the quarter. we'll feed fourth have bookings will quarter that this

know what we across base. second to ramp the we're about half, what on talking is need an team And currently. work sales in we so when our have being is increasing customer it the is the And indicating

very path. we're this enthusiastic about So,

Joseph Conway

services? or most a it recently GENEWIZ Could business the very kind where whether That's couple in customers. of from, guys that with COVID-driven of Thanks there And here just coming about, been quarter, unit these helpful. last bit of great. lot we Is off declining? Okay, building in the that comment. customers revenue then additional towards but that customers maybe SRS as a of new quarters, a for the have this certain gravitating these talk especially especially you maybe see be are little genomic

Steve Schwartz


be there. it So, tough to would pinpoint

the testament have aggressive We the the everywhere come all to from XX,XXX Joseph, lines. customers think we're And they gains -- to I product here. getting close

when in growth customers that up to XX% everywhere. each the double-digit is So, capturing of growing business we're units the

of the ability sustain small that growth pride and new and are there. grow ourselves that we we we've we customers customers And generally in of companies, So, with won a them. lot drive we our already. win customers to are the most that

through So, years for that's way the as COVID been consistent last the I well. all five think

do penetrated of that existing and to of on track ought And revenue nothing unique continues success we're to account with We're commercial than small to bring rather each add that here. we grow. and to activities there's customers. the product product I kinds biopharma mentioned in as capabilities as pharma, the have our special one companies academic the And remarks, individual having be think his and more environment. base, capabilities. having the that So, we Azenta or in And ability the we we build all I large continued Lindon lines think in institutions heavily projects for

Joseph Conway

Okay, for great. taking Thanks our questions.

Steve Schwartz

Joseph. Thanks


is B. from your Riley line Zhi Next And with Yuan question open. is Securities.

Yuan Zhi

Lindon, Thank taking quarter. questions for for our congratulations, great and Steve and another you

questions So, from maybe us. two

of to in their pent-up your I'm last growth you color genomic on And the the second service China the can COVID? of quarters, on quarter-over-quarter COVID a additional that was operation? some provide to gene relative cell related impact just First, demand the two and question is for And and curious the picked then there genomic up services? single a lot Thank of, their regarding mentioned your customers demand of product just from you. have in were, recently kind digits. curious product. sales has guys repository I'm lower demand what kind signals sample you

Lindon Robertson

So that I'll on the first one. take one,

the as suppressed already being three due think experienced. On a the have our demand impacts in pieces to coming quarter-to-date and One, kind of that quarter we guidance. already covered bit China, into of COVID it lockdowns in really the we've the

demand impact gene pleased short I we're fluid impacts most. mode to the we reopened describe that covered government, what pretty was order. for and overall encouraged pretty that but a been project regard were in what we that when had substantial seen perhaps They on China operations. of we've And shutdown significantly third the think, a we synthesis. uncertainty temporary environment little there had is things synthesis, as a there What rockiness, pretty operations deliver we the had constraint in rockiness and next It what highlighted, months synthesis piece operations. did China we've And the And about there you're on the but communication being finish not we temporary in motivations bit then, the in and the very our was we a we've open. that is felt couple in genomics. is of we things to so, appropriately short Second, quarter. And was going that's operating our keep that of of China, very everybody half our be cautious, here -- gene to we in

So modest a part mostly what it in operational The larger million demand the is constraint. is assessed of we the $X suppression.

Steve Schwartz

Yuan, And is this Steve.

the impact, example, gene cell Just and about therapy product on for side. the

the You're growth we you and product all correct. When we growth therapy. strong. to XX% and all cell back out COVID, a gene shouldn't the think market of in the still that actually is attribute side, But particularly of

specific, standpoint, So products Cryo that BioStore systems of consumables -- portion. ship therapy still instruments. still also relatively to is we're be and for the the and the III include applications. gene cell from cell And gene XX% the therapy we small and about But a

a isn't -- and but it's almost not with the the product grow gene repository gene talk it's therapy growth. services good will. therapy not continues we gene growth Cell year-on-year And yet III business and push $XXX are products still and impact a sample of all So and that's similarly, CryoPod, the to there enough the cell factor, side in and of if big side to XX%. cell and when and rates run about those million XX% on related contributor, growth kind are at to the on the growth dominating BioStore business strong almost that therapy, towards is is a rate. But cryo you the

Yuan Zhi

for you color. the Got it. Thank additional


further I'll call have questions. Robertson back Lindon closing no We to for turn the remarks.

Lindon Robertson

enthusiastic and about with much difficult highlight for Thank of With more that in want We're analysts at doing. these you, -- been couldn't we're and teams team said, to how you. able thank that to the tip energized be hat our the in they've everyone, environments business, to in what by in very we help questions our momentum world have the just right. All to I'll to our we add interest color. And our the responsiveness around executed. especially, China particularly have you, the tuning the us

putting confirm now and long-term. And couldn't everyone, we be in going with those We place I us growth long-term we set I the lot to up, the of track. have to for and the that's the for the are the for between of in that for scalable we've the on next will that term we're starting with again, coming expect everything objectives model the are extreme in reinforced investments out putting a XXXX XX-Q near We're is show -- confidence, which I'll points in encouraged. model capability And said. a growth revenue results and benefit think the But we'll next proof and that remind week. things watch file beginning weeks. be we in more the confidence

to and with again look for in. tuning again we talking We So, forward you appreciate that thank quarter. said, next it, to you


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