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]