Financial Performance - Net sales for Q2 2022 were $691.1 million, a decrease of 3.5% from $715.9 million in Q2 2021, with COVID-related sales dropping from $69.0 million to $33.2 million[128]. - Net sales for the first half of 2022 were $1.39 billion, down 3.6% from $1.44 billion in the first half of 2021, with COVID-related sales decreasing from $163.0 million to $78.5 million[145]. - Life Science segment sales for Q2 2022 were $322.4 million, a decrease of 3.5% year-over-year, while Clinical Diagnostics segment sales were $367.8 million, a decrease of 3.3%[129][130]. - Life Science segment sales for the first half of 2022 were $669.5 million, a decrease of 4.4% year-over-year, while currency neutral sales decreased by 1.1%[146]. - Clinical Diagnostics segment sales for the first half of 2022 were $719.5 million, a decrease of 2.6% year-over-year, but a currency neutral sales increase of 0.9% was noted[147]. Expenses - Selling, general and administrative expenses decreased to $208.7 million, or 30.2% of sales, compared to $213.4 million, or 29.8% of sales, in Q2 2021[132]. - Selling, general and administrative expenses (SG&A) decreased to $406.3 million, representing 29.2% of sales, down from $439.3 million or 30.4% of sales in the prior year[148]. - Research and development expenses increased to $67.0 million, or 9.7% of sales, in Q2 2022, up from $63.4 million, or 8.9% of sales, in Q2 2021[133]. - Research and development (R&D) expenses decreased to $129.6 million, or 9.3% of sales, compared to $137.3 million, or 9.5% of sales, in the first half of 2021[149]. Profitability - Consolidated gross margins improved to 57.3% in Q2 2022 from 56.1% in Q2 2021, driven by a strong US dollar and favorable product mix[131]. - Consolidated gross margins improved to 57.5% in the first half of 2022 from 55.6% in the same period of 2021, driven by a 4.1 percentage point increase in Clinical Diagnostics segment gross margins[147]. Cash Flow - Net cash provided by operations was $96.5 million, a decrease from $268.2 million in the first half of 2021, attributed to lower cash received from customers[159]. - Net cash used in investing activities surged to $1,053.4 million in the first half of 2022 from $148.6 million in the same period of 2021, mainly due to purchases of marketable securities[160]. - Net cash provided by financing activities was $1,069.0 million, a significant increase from cash used for financing activities of $44.5 million in the first half of 2021, driven by the issuance of Senior Notes[161]. Interest Expense - Interest expense rose significantly to $10.7 million in Q2 2022 from $0.4 million in Q2 2021, primarily due to the issuance of $1.2 billion Senior Notes[135]. - Interest expense increased significantly to $14.8 million in the first half of 2022 from $0.8 million in the same period of 2021, primarily due to the sale of $1.2 billion Senior Notes[151]. Taxation - The effective income tax rate was 23.2% for the first half of 2022, slightly up from 22.9% in the same period of 2021, influenced by geographical mix of earnings[155]. Supply Chain - The company expects backorders to continue through the remainder of 2022 due to supply chain constraints and delays in component supply[122]. Geographic Distribution - Approximately 41% of year-to-date 2022 consolidated net sales were derived from the United States, with 59% from international locations, primarily Europe[119]. Cash Position - As of June 30, 2022, the company had $1.97 billion in cash, cash equivalents, and short-term investments, with approximately 12% held in foreign subsidiaries[157].
Bio-Rad(BIO_B) - 2022 Q2 - Quarterly Report