Core Viewpoint - BIO-key International, Inc. reported a sequential revenue increase of approximately 10% in Q1'25, but a year-over-year revenue decline of 25% due to a significant contract from a financial services customer in Q1'24 that did not recur at the same level in Q1'25 [2][9] Financial Performance - Total revenues decreased to $1,607,159 in Q1'25 from $2,181,203 in Q1'24, primarily due to the impact of a $1.2 million contract in Q1'24 [9] - License fee revenue fell to $1,098,758 in Q1'25 from $1,950,434 in Q1'24, reflecting the variance from the long-term financial services customer and the transition from third-party products to BIO-key products in EMEA [9] - Service revenues increased to $272,598 in Q1'25 from $213,122 in Q1'24, with a 37% increase in recurring maintenance and support revenue [10] - Hardware sales surged to $235,803 in Q1'25 from $17,647 in Q1'24, driven by increased purchases of fingerprint biometric scanners [11] - Gross profit decreased to $1,327,661 in Q1'25 from $1,881,560 in Q1'24, with gross margins of 82.6% compared to 86.3% in the previous year [11] Cost Management - Operating expenses were reduced by $422,195 to $1,968,299 in Q1'25 from $2,390,494 in Q1'24, with SG&A expenses decreasing by 23% [12] - The company achieved a cash position of $3.1 million as of March 31, 2025, reflecting proceeds from warrant exercises [3][14] Market Position and Strategy - The company is experiencing growing traction for its identity-bound biometric solutions in defense/security and financial services, emphasizing the need for high-security authentication [3][4] - BIO-key has established a solid presence in the state, local, and educational (SLED) markets, serving over 100 institutions with over 4 million end users [5] - A strategic partnership with California's Education Technology Joint Powers Authority was executed, making PortalGuard an approved solution for 195 K-12 schools, which will comply with California's Phone-Free Schools Act [6] Future Outlook - The company is optimistic about growth in EMEA markets, expecting to return to growth and enhanced margins over the remainder of 2025 [7][8] - There is an increasing interest in passwordless, phoneless, and tokenless IAM solutions, positioning the company well for improved financial performance in 2025 [8]

Core Insights - Bio-Techne Corporation reported strong financial results for the third quarter ending March 31, 2025, with a net sales increase of 4% to $316.2 million and organic revenue growth of 6% compared to the prior year [6][8][23] - The company achieved an adjusted operating margin of 34.9%, up 190 basis points from the previous year, driven by profitability initiatives and volume leverage [4][9][30] - GAAP earnings per share (EPS) decreased to $0.14 from $0.31 in the same quarter last year, while adjusted EPS increased to $0.56 from $0.48 [7][9][28] Financial Performance - Net sales for the third quarter were $316.2 million, a 4% increase year-over-year, with organic revenue growth of 6% [6][8] - GAAP operating income decreased by 42% to $38.7 million, resulting in a GAAP operating margin of 12.2%, down from 22.1% in the prior year [7][30] - Adjusted operating income rose 11% to $110.3 million, with an adjusted operating margin of 34.9% compared to 33.0% in the prior year [9][30] Segment Performance - The Protein Sciences segment reported net sales of $227.7 million, a 6% increase from $214.6 million in the same quarter last year, with an organic revenue growth of 7% [11][30] - The Diagnostics and Spatial Biology segment achieved net sales of $89.2 million, a 2% increase from $87.5 million, with organic revenue growth of 2% [12][30] Non-GAAP Financial Measures - Adjusted EPS for the third quarter was $0.56, an increase from $0.48 in the same quarter last year [9][28] - Adjusted EBITDA for the quarter was $122.2 million, compared to $109.3 million in the prior year [31] - The non-GAAP adjusted tax rate was reported at 21.5%, consistent with the previous year [28][29]

Core Points - Bio-Techne Corporation announced a quarterly dividend of $0.08 per share for the quarter ended March 31, 2025, payable on May 30, 2025, to shareholders of record on May 19, 2025 [1] - The company has approved a new share repurchase program authorizing the repurchase of up to $500 million of common stock, starting May 8, 2025, replacing the previous program [2] - Bio-Techne generated approximately $1.2 billion in net sales in fiscal 2024 and employs around 3,100 people globally [3] Dividend Information - The quarterly dividend is set at $0.08 per share for the quarter ended March 31, 2025 [1] - The dividend payment date is May 30, 2025, with a record date of May 19, 2025 [1] Share Repurchase Program - The new share repurchase program allows for the repurchase of up to $500 million of common stock [2] - The program's execution will depend on share price, economic conditions, and regulatory requirements [2] - The company retains the right to suspend, amend, or discontinue the program at any time [2] Company Overview - Bio-Techne is a global life sciences company providing tools and bioactive reagents for research and clinical diagnostics [3] - The company's products support scientific investigations into biological processes and disease progression, aiding drug discovery and clinical testing [3] - Bio-Techne has a diverse portfolio with thousands of products [3]

Core Insights - Bio-Rad Laboratories, Inc. reported first-quarter 2025 adjusted EPS of $2.54, exceeding the Zacks Consensus Estimate of $1.73 by 46.8% and reflecting a 10.9% increase year-over-year [1][2] - The company experienced a revenue decline of 4.2% year-over-year, with Q1 revenues of $585.4 million missing the Zacks Consensus Estimate by 0.05% [3][10] - Bio-Rad lowered its financial guidance for full-year 2025, now expecting non-GAAP currency-neutral revenues to range from a 1.0% decline to 1.5% growth [7][9] Financial Performance - The GAAP EPS was reported at $2.29, a significant decrease from $13.45 a year ago [2] - Gross profit declined by 6.1% to $306 million, with gross margin contracting by 108 basis points to 52.3% [5] - Operating profit fell 46.9% to $23.7 million, with operating margin contracting by 325 basis points to 4% [5][11] Segment Analysis - Life Science segment sales totaled $228.6 million, down 5.4% year-over-year, primarily due to challenges in the academic research market [3][11] - Clinical Diagnostics segment net sales were $356.8 million, down 3.2% year-over-year, attributed to reduced reimbursements for diabetes testing in China [4][11] Cash Flow and Debt - Bio-Rad ended Q1 2025 with cash and cash equivalents of $1.66 billion, remaining flat sequentially [6] - Total debt at the end of 2024 was $1.20 billion, also flat on a sequential basis [6] - Net cash flow from operating activities increased to $129.9 million compared to $69.8 million a year ago [6] Market Reaction - Following the earnings announcement, Bio-Rad's stock rose by 0.2% in after-market trading [2]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were approximately $585 million, representing a 4.2% decline compared to $611 million in Q1 2024. On a currency neutral basis, this reflects a 1.5% year-over-year decrease, primarily driven by lower sales in the Life Science Group [11][12] - GAAP gross margin for Q1 2025 was 52.3%, down from 53.4% in Q1 2024, attributed to increased restructuring costs [13] - Non-GAAP gross margin for Q1 2025 was 53.8%, lower than 54.2% in Q1 2024, while non-GAAP operating margin improved to 10.8% from 9.7% year-over-year [15][16] - GAAP net income for Q1 2025 was $71 million, or $2.54 diluted earnings per share [17] Business Line Data and Key Metrics Changes - Life Science Group sales in Q1 2025 were $229 million, down 5.4% on a reported basis and 3.5% on a currency neutral basis, reflecting ongoing softness in the biotech and academic research market [12] - Clinical Diagnostics Group sales were approximately $357 million, a decrease of 3.2% on a reported basis, but effectively flat on a currency neutral basis [13] - Process Chromatography business experienced mid-teens growth year-over-year, with expectations of high single-digit growth for 2025 [12][19] Market Data and Key Metrics Changes - In the Americas and Asia Pacific, currency neutral sales decreased, partially offset by increased sales in EMEA [12] - Demand for consumables remained strong, while instrument sales faced challenges, particularly in the academic and biotech sectors [41][71] Company Strategy and Development Direction - The company is focused on driving consistent top-line growth and operational efficiency to achieve substantial margin expansion over the coming years [27] - The acquisition of Stila Technology is on track for closing by the end of Q3 2025, which will enhance the company's digital PCR offerings [8][10] - The company is implementing mitigation strategies for tariff impacts, including surcharges and regionalizing supply chains [7][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment with academic market headwinds due to government funding and global trade disruptions [5] - The company expects total currency neutral revenue to decline by approximately 1% to 1.5% for 2025, reflecting softer academic research funding and reduced demand from biotech customers [20][21] - Management remains optimistic about the long-term growth potential in life sciences and diagnostics despite current challenges [28][29] Other Important Information - The company generated $130 million in net cash from operating activities in Q1 2025, compared to $70 million in Q1 2024 [18] - Free cash flow for Q1 2025 was $96 million, significantly higher than $30 million in Q1 2024, with a full-year target of approximately $310 million to $330 million for 2025 [18][19] Q&A Session Summary Question: Impact of tariffs on guidance - Management discussed the gross impact of tariffs and mitigation efforts, including potential surcharges and pre-positioning inventory [33][36] Question: Academic funding expectations - Management noted a 28% reduction in overall funding and challenges in instrument sales, while consumables remained strong [39][40] Question: Growth gap between consumables and equipment - Instrument sales saw a sequential decline of about 10%, while consumables held up well [46] Question: Tariff exposure specifics - Management clarified that the majority of revenue in China comes from U.S. products, with ongoing evaluations of tariff impacts [47][49] Question: Free cash flow maintenance despite lower operating margin - Management emphasized focus on working capital management and inventory control to sustain free cash flow [96]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were approximately $585 million, representing a 4.2% decline from $611 million in Q1 2024. On a currency neutral basis, this reflects a 1.5% year-over-year decrease, primarily driven by lower sales in the Life Science Group [12][13] - Q1 reported GAAP gross margin was 52.3%, down from 53.4% in Q1 2024, mainly due to increased SG&A expenses [14] - Q1 operating income was approximately $24 million, or 4% of sales, compared to $45 million, or 7.3% of sales in Q1 2024, driven by higher restructuring costs [15] - GAAP net income for Q1 2025 was $71 million, or $2.54 diluted earnings per share [18] Business Line Data and Key Metrics Changes - Life Science Group sales in Q1 2025 were $229 million, down 5.4% on a reported basis and 3.5% on a currency neutral basis, reflecting ongoing softness in the biotech and academic research market [13] - Clinical Diagnostics Group sales were approximately $357 million, a decrease of 3.2% on a reported basis, with increased demand for quality control products offset by lower diabetes testing revenue [14] Market Data and Key Metrics Changes - In Diagnostics, solid demand was shown, offsetting reimbursement reductions in China with nearly 3% growth in the rest of the world [9] - Currency neutral sales decreased in Asia Pacific, partially offset by increased sales in EMEA and The Americas [14] Company Strategy and Development Direction - The company continues to prioritize bringing innovative products to customers, with several key menu expansions launched in Q1 [6][7] - The acquisition of Stila Technology is on track for closing by the end of Q3 2025, expanding offerings in the digital PCR segment [10] - The company is focused on mitigating tariff impacts through surcharges, pre-positioning inventory, and regionalizing supply chains [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment with academic market headwinds due to government funding and global trade disruptions [6] - The company expects total currency neutral revenue to decline by approximately 1% to 1.5% for 2025, reflecting softer academic research funding and reduced demand from biotech customers [21][22] - Management remains optimistic about long-term growth opportunities in life science and diagnostics despite current challenges [28][29] Other Important Information - The company generated $130 million in net cash from operating activities in Q1 2025, compared to $70 million in Q1 2024 [19] - Free cash flow for Q1 2025 was $96 million, up from $30 million in Q1 2024, with a full-year target of approximately $310 million to $330 million for 2025 [19][20] Q&A Session Summary Question: Can you discuss the impact of tariffs and mitigation efforts? - Management acknowledged the significant impact of tariffs on U.S. products shipped to China and Europe, and discussed actions such as surcharges and pre-positioning inventory to mitigate these effects [33][35][36] Question: What is the current state of academic funding? - Management noted a 28% reduction in overall funding and indicated that while consumables remained strong, instrument sales experienced softness [38][41] Question: How does the growth gap between consumables and equipment look? - Management indicated a deterioration in instrument sales, down about 10% sequentially, while consumables held up well [46][70] Question: What is the company's capital allocation strategy? - Management expressed interest in pursuing larger inorganic opportunities while continuing stock buybacks, indicating a strong balance sheet [64][65] Question: Can you provide an update on the Stila acquisition? - Management reported positive feedback from teams regarding the Stila platform and noted excitement about its potential applications [76][77]

Financial Performance - Net sales for Q1 2025 were $585.4 million, a decrease of 4.2% from $610.8 million in Q1 2024[117] - Life Science segment sales decreased by 5.4% to $228.6 million in Q1 2025, with a currency neutral decrease of 3.5%[118] - Clinical Diagnostics segment sales decreased by 3.2% to $356.8 million in Q1 2025, with a currency neutral decrease of 0.1%[119] - Consolidated gross margin for Q1 2025 was 52.3%, down from 53.4% in Q1 2024[120] Expenses - SG&A expenses for Q1 2025 were $208.8 million, or 35.7% of sales, compared to $214.9 million, or 35.2% of sales in Q1 2024[121] - R&D expenses for Q1 2025 were $73.5 million, or 12.6% of sales, up from $66.4 million, or 10.9% of sales in Q1 2024[122] Cash Flow and Investments - Net cash provided by operations increased to $129.9 million in Q1 2025 from $69.8 million in Q1 2024[131] - The company had $1.66 billion in cash, cash equivalents, and short-term investments as of March 31, 2025[129] Tax and Shareholder Returns - The effective income tax rate was 23.3% for Q1 2025, compared to 21.8% for Q1 2024[127] - The company repurchased 399,295 shares of Class A common stock for $100.9 million under the 2023 Share Repurchase Program[135]

[First-Quarter 2025 Financial Results](index=1&type=section&id=First-Quarter%202025%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) The company navigated a challenging first quarter, achieving solid margins through disciplined expense management and moderating its full-year outlook - CEO Norman Schwartz highlighted a challenging Q1, but noted **solid margins** were delivered via focused execution and expense management[3](index=3&type=chunk) - The company is moderating its **full-year 2025 outlook** due to current market uncertainties and the evolving macro environment[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Q1 2025 saw a 4.2% revenue decline to $585.4 million, with a significant drop in GAAP net income but a rise in non-GAAP net income Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Revenue (millions) | $585.4 | $610.8 | -4.2% | | Gross Margin | 52.3% | 53.4% | -1.1 p.p. | | Net Income (millions) | $64.0 | $383.9 | -83.3% | | Diluted EPS | $2.29 | $13.45 | -83.0% | | **Non-GAAP Results** | | | | | Revenue (millions) | $585.4 | $610.8 | -4.2% | | Gross Margin | 53.8% | 54.2% | -0.4 p.p. | | Net Income (millions) | $71.0 | $65.3 | +8.7% | | Diluted EPS | $2.54 | $2.30 | +10.4% | - Total net sales decreased by **4.2%** as reported and **1.5%** on a currency-neutral basis compared to Q1 2024, primarily due to lower sales in the Life Science segment[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The Life Science segment's sales declined due to research market challenges, while Clinical Diagnostics saw a smaller decrease impacted by China's reimbursement policies Q1 2025 Net Sales by Segment (in millions) | Segment | Q1 2025 Sales | YoY Change (Reported) | YoY Change (Currency-Neutral) | | :--- | :--- | :--- | :--- | | Life Science | $228.6 | -5.4% | -3.5% | | Clinical Diagnostics | $356.8 | -3.2% | -0.1% | - The Life Science sales decline was driven by ongoing challenges in the **academic research market**, particularly in the Americas[6](index=6&type=chunk) - The Clinical Diagnostics sales decrease was mainly due to **lowered reimbursements for diabetes testing in China**, partly offset by increased demand for quality control products[7](index=7&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) GAAP gross margin and operating income declined, with a significant drop in GAAP net income driven by changes in the fair value of equity investments - The substantial decrease in GAAP net income (**$64.0M** in Q1 2025 vs **$383.9M** in Q1 2024) was largely due to a smaller gain from the change in fair market value of its investment in Sartorius AG compared to the prior year[9](index=9&type=chunk) Q1 2025 Operational Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Gross Margin | 52.3% | 53.4% | | GAAP Income from Operations | $23.7M | $44.6M | | Non-GAAP Gross Margin | 53.8% | 54.2% | | Non-GAAP Income from Operations | $63.0M | $59.0M | - The non-GAAP effective tax rate for Q1 2025 was **20.6%**, a decrease from 22.4% in Q1 2024, driven by the geographical mix of earnings[11](index=11&type=chunk) [Updated Full-Year 2025 Financial Outlook](index=2&type=section&id=Updated%20Full-Year%202025%20Financial%20Outlook) The company lowered its full-year 2025 outlook, reducing expectations for both non-GAAP currency-neutral revenue growth and non-GAAP operating margin Full-Year 2025 Outlook Revision | Metric | Updated 2025 Outlook | Prior 2025 Outlook | | :--- | :--- | :--- | | Non-GAAP, Currency-Neutral Revenue Growth | -1.0% to +1.5% | +1.5% to +3.5% | | Non-GAAP Operating Margin | 10.0% to 12.0% | 13.0% to 13.5% | [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Q1 2025 income statement shows net sales of $585.4 million, resulting in a net income of $64.0 million, or $2.29 per diluted share Q1 2025 Income Statement Highlights (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $585.4 | $610.8 | | Gross profit | $306.0 | $325.9 | | Income from operations | $23.7 | $44.6 | | Net income | $64.0 | $383.9 | | Diluted EPS | $2.29 | $13.45 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $9.53 billion as of March 31, 2025, with cash and cash equivalents at $521.4 million and total equity at $6.68 billion Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $9,526.9 | $9,364.1 | | Cash and cash equivalents | $521.4 | $488.1 | | Total Liabilities | $2,847.5 | $2,794.8 | | Total Stockholders' Equity | $6,679.4 | $6,569.3 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased significantly to $129.9 million in Q1 2025, contributing to a higher quarter-end cash balance Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $129.9 | $69.8 | | Net cash provided by (used in) investing activities | $2.9 | $(43.1) | | Net cash used in financing activities | $(97.7) | $— | | Net increase in cash | $33.3 | $29.4 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Use of Non-GAAP and Currency-Neutral Reporting](index=2&type=section&id=Use%20of%20Non-GAAP%20and%20Currency-Neutral%20Reporting) The company utilizes non-GAAP measures, excluding certain items, to provide a clearer view of ongoing operational performance and facilitate comparisons - The company uses **non-GAAP measures** to analyze business performance, make operating decisions, and forecast for future periods[16](index=16&type=chunk) - Excluded items from non-GAAP calculations include amortization of acquisition-related intangibles, restructuring charges, gains/losses from equity securities, and significant legal costs, as they are considered **outside of normal operations**[15](index=15&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q1 2025 non-GAAP net income was reconciled to $71.0 million from a GAAP net income of $64.0 million, with Adjusted EBITDA rising to $113.7 million Q1 2025 GAAP to Non-GAAP Reconciliation Highlights (in millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $306.0 | $9.0 | $315.0 | | Income from Operations | $23.7 | $39.3 | $63.0 | | Net Income | $64.0 | $7.0 | $71.0 | Q1 2025 Adjusted EBITDA (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | $113.7 | $108.4 | | Adjusted EBITDA Margin | 19.4% | 17.7% | [Other Information](index=2&type=section&id=Other%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call and webcast are scheduled for May 1, 2025, to discuss the first-quarter financial results with management - A conference call to discuss Q1 2025 results is scheduled for **May 1, 2025**, at 2:30 PM Pacific Time[13](index=13&type=chunk) - A live webcast and replay will be accessible in the **'Investor Relations'** section of the company's website[14](index=14&type=chunk) [About Bio-Rad](index=4&type=section&id=About%20Bio-Rad) Bio-Rad is a global leader in life science research and clinical diagnostics, serving a diverse customer base with over 7,500 employees worldwide - Bio-Rad develops, manufactures, and markets products for **life science research and clinical diagnostics**[25](index=25&type=chunk) - The company's customers include **universities, research institutions, hospitals, and biopharmaceutical companies**[25](index=25&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements, including the 2025 financial outlook, which are subject to significant risks and uncertainties - The release includes forward-looking statements regarding future financial performance, including the **updated 2025 revenue and operating margin outlook**[26](index=26&type=chunk) - Key risks include international operations, global economic conditions, the pace of **biopharma sector recovery**, and supply chain issues[26](index=26&type=chunk)

Core Points - BIO-key International, Inc. received a notification from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to the late filing of its Annual Report on Form 10-K for the year ended December 31, 2024 [1] - The company filed its Form 10-K on April 23, 2025, and subsequently regained compliance with Nasdaq rules on April 24, 2025 [2] - BIO-key specializes in biometric-centric identity and access management solutions, securing access for over 40 million users with options for passwordless, phoneless, and tokenless authentication [3] Company Overview - BIO-key provides innovative IAM solutions that are cost-effective, easy to deploy, and secure, catering to diverse use cases [3] - The company's PortalGuard IAM solution can be hosted in the cloud or on-premise, facilitating secure access to computers, information, applications, and high-value transactions [3]

Core Insights - The ctMoniTR Project has shown a strong association between changes in circulating tumor DNA (ctDNA) levels and treatment outcomes, indicating potential integration of ctDNA analysis in therapeutic development and clinical cancer care [1][2] - Biodesix and Bio-Rad Laboratories collaborated on this project, utilizing Bio-Rad's Droplet Digital™ PCR technology to detect ctDNA from patient samples [3][4] - Biodesix is actively involved in ctDNA testing and is exploring its combination with proteomics for detecting molecular residual disease (MRD), with advancements to be presented at the upcoming AACR Annual Meeting [4] Company Overview - Biodesix, Inc. is a leading diagnostics solutions company focused on improving clinical care and outcomes for patients, offering diagnostic tests that support personalized care [7] - Bio-Rad Laboratories, Inc. is a leader in life science research and clinical diagnostics, with approximately 7,700 employees and $2.7 billion in revenues in 2023, serving a wide range of customers including universities and biopharmaceutical companies [8]