Azenta(US:AZTA)2024-08-06 20:16Revenue Performance - Revenue for Q3 FY2024 was $173 million, a 4% increase year-over-year, with organic revenue growth of 5%[4] - Sample Management Solutions revenue reached $81 million, up 7% year-over-year, driven by higher revenues in Sample Repository Solutions and Core Products[4] - B Medical Systems revenue was $29 million, reflecting a 7% year-over-year increase, with organic revenue growth of 8% attributed to additional cold chain solutions orders[4] - Total revenue for June 30, 2024, was $172,809 million, a 4.3% increase from $165,948 million in the same period of 2023[18] - Revenue for the quarter ended June 30, 2024, was $81 million, a 7% increase from $75 million in the same quarter of 2023[41] - Organic revenue for the nine months ended June 30, 2024, was $231 million, reflecting a 4% increase from $222 million in the same period of 2023[42] Profitability Metrics - Adjusted EBITDA for continuing operations was $18 million, with an adjusted EBITDA margin of 10.3%, an improvement of 260 basis points year-over-year[7] - Non-GAAP diluted EPS was $0.16, compared to $0.13 in the same quarter last year[7] - Operating loss was $15 million, with an operating margin of (8.5%), an improvement of 100 basis points year-over-year[5] - Gross profit for the quarter was $69,056 million, compared to $68,005 million in the previous year, reflecting a slight increase[18] - Non-GAAP adjusted net income from continuing operations was $8,739,000, or $0.16 per diluted share, compared to $2,797,000, or $0.05 per diluted share, in the prior quarter[26] - Non-GAAP adjusted net income from continuing operations was $12,951,000 for the nine months ended June 30, 2024, slightly down from $13,130,000 in the prior year[27] Cash and Assets - The company ended the quarter with cash, cash equivalents, restricted cash, and marketable securities totaling $754 million[8] - Cash and cash equivalents decreased to $336,543 million from $678,910 million year-over-year[20] - Total assets decreased to $2,323,295 million from $2,885,720 million year-over-year[20] - Total cash, cash equivalents, and restricted cash decreased to $346,863,000 as of June 30, 2024, down from $684,045,000 at the end of the previous period[24] Expenses and Losses - Operating expenses were $84 million, flat year-over-year, driven by lower research and development and selling, general and administrative expenses[5] - Net loss for the quarter was $(6,582) million, compared to $(1,470) million in the same period last year[18] - Basic net loss per share was $(0.12) for the quarter, compared to $(0.04) in the same quarter of 2023[18] - The company reported a net loss of $159,186,000 for the nine months ended June 30, 2024, compared to a net loss of $17,632,000 for the same period in 2023[23] - The company incurred $115,975,000 in impairment of goodwill and intangible assets during the nine months ended June 30, 2024, with no such charges in the previous year[23] Shareholder Actions - The company repurchased 4.2 million shares for $225.9 million in Q3, with a total of 25.1 million shares repurchased for $1.25 billion under the 2022 Repurchase Authorization[9] Guidance and Future Outlook - For FY2024, total revenue guidance is lowered to $652 to $658 million, while non-GAAP diluted EPS guidance is raised to a range of $0.30 to $0.36[10] - The company anticipates long-term benefits from transformation costs aimed at cost reduction and productivity improvement, which do not meet the definition of restructuring charges[34] - The company anticipates long-term benefits from its transformation plan, which includes significant changes to processes and technology[40] Transformation and Costs - Transformation costs for the nine months ended June 30, 2024, amounted to $8,742,000, reflecting strategic projects aimed at long-term benefits[27] - Transformation costs for B Medical Systems amounted to $2,783 thousand, representing 9.8% of revenue for the quarter ended June 30, 2024[32] - Transformation costs for the nine months ended June 30, 2024, amounted to $3,365 thousand, compared to no such costs in the same period of 2023[40] Impairment and Restructuring - The company reported a restructuring charge of $10,528 thousand for the nine months ended June 30, 2024, compared to $3,773 thousand in the same period of 2023[40] - Impairment of goodwill and intangible assets for the nine months ended June 30, 2024, was $115,975 thousand, indicating significant asset write-downs[40]