Azenta(US:AZTA)2025-02-10 22:19Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $147.5 million, a 4% increase from $141.7 million in the same period of 2023[142] - Gross profit for the same period was $68.7 million, resulting in a gross margin of 47%, up from 44% year-over-year[143] - The Multiomics segment revenue increased by 5.7% to $66.3 million, driven by growth in Next Generation Sequencing and Gene Synthesis services[150] - The Sample Management Solutions segment revenue rose by 2.8% to $81.2 million, supported by growth in Sample Repository Services and Core Products[149] - Total revenue for the company increased to $147.5 million in Q4 2024, up from $141.7 million in Q4 2023, reflecting a growth of 4.9%[157] - Adjusted gross profit for the company was $70.2 million in Q4 2024, compared to $63.6 million in Q4 2023, reflecting an increase driven by operational efficiencies[158] Operating Performance - Operating loss for the three months ended December 31, 2024, was $11.4 million, an improvement from a loss of $16.2 million in the same period of 2023[142] - Loss from continuing operations was $9.4 million for the three months ended December 31, 2024, compared to a loss of $7.2 million in the prior year[143] - Sample Management Solutions segment reported operating income of $1.6 million for Q4 2024, compared to an operating loss of $1.5 million in Q4 2023, with an operating margin increase of 380 basis points to 1.9%[155] - Multiomics segment operating loss improved to $3.4 million in Q4 2024 from a loss of $4.3 million in Q4 2023, with an operating margin increase of 175 basis points to (5.1)%[156] - Adjusted operating income for Sample Management Solutions was $2.3 million in Q4 2024, compared to an adjusted operating loss of $0.6 million in Q4 2023, with an adjusted operating margin of 2.9%[155] - The Multiomics segment's adjusted operating loss was $2.5 million in Q4 2024, an improvement from an adjusted operating loss of $3.3 million in Q4 2023, with an adjusted operating margin of (3.8)%[156] Expenses and Costs - Research and development expenses decreased to $6.4 million from $7.3 million year-over-year[142] - Total operating expenses increased to $80.0 million from $78.0 million, primarily due to higher selling, general, and administrative expenses[142] - Selling, general and administrative expenses rose to $73.2 million in Q4 2024, an increase of $3.3 million compared to $69.9 million in Q4 2023, primarily due to higher stock-based compensation[161] - Gross margin for Sample Management Solutions improved to 46.9% in Q4 2024, an increase of 482 basis points from 42.1% in Q4 2023[158] - Restructuring charges decreased to $0.4 million in Q4 2024, down from $0.8 million in Q4 2023, due to reduced activity in cost-saving initiatives[162] Cash Flow and Financial Position - Cash and cash equivalents, restricted cash, and marketable securities totaled $503.4 million as of December 31, 2024, with stockholders' equity at $1.7 billion[169] - Net cash provided by operating activities was $30.6 million for the three months ended December 31, 2024, significantly up from $13.8 million in 2023, aided by increased revenue and a tax refund[171] - The company had no outstanding debt as of December 31, 2024[172] - Non-cancellable commitments amounted to $50.1 million as of December 31, 2024, including $36.0 million for inventory purchases[173] International Revenue and Currency Impact - Revenue generated outside the United States was $54.0 million, accounting for 37% of total revenue, compared to $51.6 million or 36% in the prior year[152] - Sales in currencies other than the U.S. dollar represented approximately 37% of total sales for the three months ended December 31, 2024, compared to 27% in 2023[176] Other Income and Taxation - Interest income decreased to $4.3 million for the three months ended December 31, 2024, down from $10.0 million for the same period in 2023, due to reduced investments in marketable securities[163] - Other income increased to $1.2 million for the three months ended December 31, 2024, compared to $0.5 million for the same period in 2023, primarily from foreign exchange gains[164] - Income tax expense was $3.6 million for the three months ended December 31, 2024, up from $1.4 million in the same period in 2023, driven by profits in foreign jurisdictions[165][166] Discontinued Operations - Revenue from discontinued operations was $17.6 million for the three months ended December 31, 2024, compared to $12.6 million in 2023, with a loss of $3.9 million in 2024 versus $8.5 million in 2023[167] Strategic Initiatives - The company is pursuing a sale of its B Medical Systems business to focus on core segments and drive revenue growth[136] Interest Rate Sensitivity - A hypothetical 100 basis point change in interest rates would result in a $1.3 million change in interest income for the three months ended December 31, 2024[175]