Azenta(US:AZTA)2023-11-20 16:00Revenue and Growth - Revenue for the fiscal year ended September 30, 2023, was $665.1 million, a 20% increase compared to $555.5 million in 2022, primarily driven by a 53% growth in the Life Sciences Products segment due to acquisitions [162]. - Total revenue for the fiscal year ended September 30, 2023, was $665.1 million, a 19.7% increase from $555.5 million in 2022 [192]. - Life Sciences Products segment revenue increased by 53% year-over-year to $305.2 million, primarily due to acquisitions, while excluding acquisitions, there was a 9% decline in revenue [194]. - Life Sciences Services segment revenue grew by 1% year-over-year to $359.9 million, driven by growth in the SRS business, offset by a decline in Genomics Services [195]. - Revenue related to COVID-19 for the fiscal year 2023 was approximately $7.7 million, down from $22 million in 2022, reflecting decreased demand for COVID-19 related products [195]. - Revenue generated outside the United States was $310.0 million, representing 47% of total revenue for fiscal year 2023, up from 36% in 2022 [196]. - The company anticipates continued revenue growth from both internally developed products and potential future acquisitions [195]. Profitability and Loss - Gross profit for fiscal year 2023 was $263.1 million, resulting in a gross margin of 39.6%, down from 46.0% in the prior year, attributed to higher costs from the acquisition of B Medical [164]. - Operating loss for fiscal year 2023 was $73.1 million, compared to a loss of $24.7 million in 2022, driven by reduced gross margin and increased operating expenses [164]. - The company reported a loss from continuing operations of $12.9 million for fiscal year 2023, compared to a loss of $11.3 million in 2022 [164]. - Operating loss for Life Sciences Products segment was $30.3 million in fiscal year 2023, compared to an operating income of $11.0 million in the prior fiscal year, indicating a significant decline [200]. - Operating loss for Life Sciences Services segment was $14.7 million in fiscal year 2023, compared to an operating income of $10.8 million in the previous year, reflecting a significant downturn [202]. - The net loss from discontinued operations for fiscal year 2023 was $1.4 million, compared to a net income of $2.1 billion in fiscal year 2022 [218]. - The company reported a basic net loss per share of $(0.22) for the year ended September 30, 2023, compared to earnings per share of $28.48 in 2022 [266]. - Net income for the year 2023 was a loss of $14,257 thousand, compared to a net income of $2,132,859 thousand in September 2022 [272]. Expenses - Selling, general and administrative expenses rose by $64.8 million in fiscal year 2023, largely due to the acquisitions of B Medical and Barkey [164]. - Research and development expenses increased by $6.4 million, while selling, general, and administrative expenses rose by $64.8 million, largely due to the addition of B Medical [199]. - Research and development expenses increased to $33,956,000 in 2023 from $27,542,000 in 2022, highlighting a focus on innovation [266]. - The company recorded an adjustment to the fair value of contingent consideration related to B Medical amounting to $18.5 million, which partially offset increased expenses [199]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were $678.9 million, with total cash, cash equivalents, and marketable securities amounting to $1.134 billion [223]. - Net cash provided by operating activities was $17.5 million for fiscal year 2023, a significant improvement from a net cash outflow of $466.0 million in fiscal year 2022 [225]. - Cash provided by investing activities was $431.4 million in fiscal year 2023, primarily from $1.1 billion in sales and maturities of marketable securities [229]. - Cash outflows for financing activities totaled $844.1 million in fiscal year 2023, mainly due to share repurchase authorization [231]. - As of September 30, 2023, the company had no outstanding debt on its balance sheet [233]. - The company has not paid any dividends since the sale of the semiconductor automation business on February 1, 2022, and had previously paid a quarterly dividend of $0.10 per share totaling $7.5 million in December 2021 [234]. - The Board of Directors approved a new share repurchase authorization of up to $1.5 billion, with $662.0 million remaining available for additional repurchases as of September 30, 2023 [235]. - In the fiscal year ending September 30, 2023, the company repurchased 17.5 million shares of common stock for $838.5 million [235]. Assets and Investments - Total current assets decreased to $1,418,956,000 from $2,459,346,000 year-over-year, indicating a reduction in liquidity [263]. - Total stockholders' equity decreased to $2,534,500,000 from $3,363,386,000, reflecting the impact of the net loss on shareholder value [264]. - As of September 30, 2023, total stockholders' equity was $2,534.5 million, a decrease from $3,363.4 million in the previous year [275]. - The company had non-cancelable commitments of $73.5 million as of September 30, 2023, including $51.3 million for inventory and $22.2 million for IT-related commitments [237]. - The company’s retained earnings as of September 30, 2023, were $1,641.0 million, reflecting a decrease from the previous year [275]. Acquisitions and Business Changes - The company completed the acquisition of B Medical Systems on October 3, 2022, enhancing its cold-chain capabilities for temperature-sensitive samples [157]. - The acquisition of B Medical Systems S.á r.l. was completed for a purchase price of $432.2 million, with $100.6 million of completed technology recorded as an intangible asset [256]. - The company changed its name from "Brooks Automation, Inc." to "Azenta, Inc." following the sale of its semiconductor automation business for $2.9 billion on February 1, 2022 [160]. Market and Customer Insights - The Company's ten largest customers accounted for approximately 30% of consolidated revenue for the fiscal year ended September 30, 2023 [296]. - One customer from the Life Science Products segment accounted for more than 10% of consolidated revenue in fiscal year 2023, shipping to end users in approximately 50 countries [296]. - The Company regularly monitors creditworthiness and believes it has adequately provided for potential credit losses [296]. Financial Reporting and Accounting - The company records income taxes using the asset and liability method, recognizing deferred tax assets and liabilities for future tax differences [343]. - Basic income or loss per share is determined by dividing net income by the weighted average common shares outstanding during the period [346]. - The company adopted ASU 2022-06, extending relief related to reference rate reform through December 31, 2024, with no significant accounting impact on consolidated financial statements [347].