Financial Data and Key Metrics Changes - Orders increased nearly 40%, building on a strong 16% growth from the previous year [5][21] - Revenue grew by 6%, with adjusted EBIT margins expanding by 190 basis points to 12.4% [5][20] - Adjusted EPS rose nearly 40%, exceeding guidance [5][21] - Record backlog increased by 20% to $18 billion, indicating strong demand visibility [20][24] Business Line Data and Key Metrics Changes - Organic revenue growth was led by service, which grew 9% year-over-year [23] - In the Americas, sales were up 6% organically, with solid double-digit growth in service [23] - EMEA grew 4%, driven by high single-digit growth in service [23] - APAC delivered 8% growth, led by strong system performance and steady demand in service [23] Market Data and Key Metrics Changes - The Americas segment saw a 56% growth, primarily from large-scale data center projects [21] - EMEA experienced an 8% growth, with balanced high single-digit growth in both service and system [21] - APAC orders increased by 10%, driven by double-digit growth in systems and high single-digit growth in service [21] Company Strategy and Development Direction - The company is focusing on energy efficiency and decarbonization, particularly in data centers and advanced manufacturing [7][11] - A proprietary business system is being deployed to enhance operational efficiency and align goals across the organization [6][13] - The strategy emphasizes innovation in technology and service-based solutions to meet customer needs [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and raised full-year guidance due to positive momentum [5][26] - The operating environment remains challenging, but the company is well-positioned to deliver on its commitments [20][25] - Management highlighted the importance of operational discipline and the ability to respond to customer needs quickly [74][107] Other Important Information - The company is investing in R&D to support future growth while maintaining cost control [92][93] - There is a focus on improving gross margins and reducing SG&A costs through operational efficiencies [89][90] Q&A Session Summary Question: Order strength and duration - Management confirmed record orders and highlighted strong demand not only from data centers but also from life sciences [28][30] Question: Backlog and organic growth - Management indicated that while backlog is strong, not all orders are shippable within the next nine months, affecting organic growth projections [32][33] Question: Market evolution and order growth - Management noted broad-based growth across different applications in the data center market and emphasized the importance of thermal management for life sciences [36][38] Question: North America margin trends - Management acknowledged a slight headwind in North America margins but expressed confidence in future improvements [50][51] Question: Data center lead times - Management reported good progress on lead times and emphasized the importance of reliable delivery for competitive advantage [72][74] Question: BMS growth and opportunities - Management characterized BMS growth as solid and highlighted the alignment with mission-critical solutions [78] Question: New product development and market readiness - Management discussed ongoing collaboration with customers to innovate and prepare for future market needs [81][82] Question: Portfolio review and strategic moves - Management confirmed ongoing strategic review of the portfolio to enhance shareholder value [85][87]

Financial Data and Key Metrics Changes - Organic revenue grew by 6% year over year, with adjusted EBITDA margin expanding by 400 basis points [6][28] - Total revenue for the second quarter was $143 million, reflecting a 5% year over year increase on a reported basis and 6% on an organic basis [28][30] - Non-GAAP EPS for the quarter was $0.05, with adjusted EBITDA margin at 10% [29][30] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $80 million, up 8% year over year, driven by strong performance in consumables and instruments [31] - Multiomics revenue was $64 million, with a growth of 2% on a reported basis and 3% on an organic basis, primarily driven by next-generation sequencing [32][33] Market Data and Key Metrics Changes - North America showed softness in demand, particularly in Sanger sequencing, which declined by 18% year over year [34] - China demonstrated strength with a 5% organic revenue growth, despite geopolitical tensions [33][71] Company Strategy and Development Direction - The company is focused on operational excellence and reducing complexity through the Azenta Business System [12][13] - Plans for tuck-in acquisitions are being evaluated to accelerate revenue growth and margin expansion [11][88] - The company aims to maintain a high bar for capital deployment, including potential stock buybacks if valuation disconnects persist [12][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment, including NIH funding cuts and tariffs, but expressed confidence in countermeasures to mitigate impacts [10][38] - The company remains committed to its full-year guidance of organic revenue growth between 3% and 5% and adjusted EBITDA margin expansion of 300 basis points [7][38] Other Important Information - The sale process for B Medical Systems is ongoing, with an announcement expected in the second half of fiscal year 2025 [7][25] - The company ended the quarter with $540 million in cash and no debt outstanding [29][37] Q&A Session Summary Question: Guidance and Growth Cadence - Management held guidance steady, expecting the second half of the year to align with prior years despite macro uncertainties [42][44] Question: NIH Funding Headwind - The 1% headwind from NIH funding has been countermeasured, with proactive steps taken to mitigate risks [53][56] Question: Free Cash Flow and Margins - Free cash flow performance is expected to be sustainable, with a target of $100 million for the full year [60][62] Question: Sales Force Structure - The sales force structure is being aligned regionally, with investments in headcount to drive performance [68][69] Question: Gene Synthesis Trends - There has been a pause in large programs from pharma partners, but early signs of recovery are noted [81][82] Question: Capital Deployment Preferences - The company is open to various capital deployment strategies, including M&A and buybacks, depending on market conditions [88][90]