Financial Data and Key Metrics Changes - Net sales for Q1 2025 were approximately $585 million, representing a 4.2% decline compared to $611 million in Q1 2024. On a currency neutral basis, this reflects a 1.5% year-over-year decrease, primarily driven by lower sales in the Life Science Group [11][12] - GAAP gross margin for Q1 2025 was 52.3%, down from 53.4% in Q1 2024, attributed to increased restructuring costs [13] - Non-GAAP gross margin for Q1 2025 was 53.8%, lower than 54.2% in Q1 2024, while non-GAAP operating margin improved to 10.8% from 9.7% year-over-year [15][16] - GAAP net income for Q1 2025 was $71 million, or $2.54 diluted earnings per share [17] Business Line Data and Key Metrics Changes - Life Science Group sales in Q1 2025 were $229 million, down 5.4% on a reported basis and 3.5% on a currency neutral basis, reflecting ongoing softness in the biotech and academic research market [12] - Clinical Diagnostics Group sales were approximately $357 million, a decrease of 3.2% on a reported basis, but effectively flat on a currency neutral basis [13] - Process Chromatography business experienced mid-teens growth year-over-year, with expectations of high single-digit growth for 2025 [12][19] Market Data and Key Metrics Changes - In the Americas and Asia Pacific, currency neutral sales decreased, partially offset by increased sales in EMEA [12] - Demand for consumables remained strong, while instrument sales faced challenges, particularly in the academic and biotech sectors [41][71] Company Strategy and Development Direction - The company is focused on driving consistent top-line growth and operational efficiency to achieve substantial margin expansion over the coming years [27] - The acquisition of Stila Technology is on track for closing by the end of Q3 2025, which will enhance the company's digital PCR offerings [8][10] - The company is implementing mitigation strategies for tariff impacts, including surcharges and regionalizing supply chains [7][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment with academic market headwinds due to government funding and global trade disruptions [5] - The company expects total currency neutral revenue to decline by approximately 1% to 1.5% for 2025, reflecting softer academic research funding and reduced demand from biotech customers [20][21] - Management remains optimistic about the long-term growth potential in life sciences and diagnostics despite current challenges [28][29] Other Important Information - The company generated $130 million in net cash from operating activities in Q1 2025, compared to $70 million in Q1 2024 [18] - Free cash flow for Q1 2025 was $96 million, significantly higher than $30 million in Q1 2024, with a full-year target of approximately $310 million to $330 million for 2025 [18][19] Q&A Session Summary Question: Impact of tariffs on guidance - Management discussed the gross impact of tariffs and mitigation efforts, including potential surcharges and pre-positioning inventory [33][36] Question: Academic funding expectations - Management noted a 28% reduction in overall funding and challenges in instrument sales, while consumables remained strong [39][40] Question: Growth gap between consumables and equipment - Instrument sales saw a sequential decline of about 10%, while consumables held up well [46] Question: Tariff exposure specifics - Management clarified that the majority of revenue in China comes from U.S. products, with ongoing evaluations of tariff impacts [47][49] Question: Free cash flow maintenance despite lower operating margin - Management emphasized focus on working capital management and inventory control to sustain free cash flow [96]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were approximately $585 million, representing a 4.2% decline from $611 million in Q1 2024. On a currency neutral basis, this reflects a 1.5% year-over-year decrease, primarily driven by lower sales in the Life Science Group [12][13] - Q1 reported GAAP gross margin was 52.3%, down from 53.4% in Q1 2024, mainly due to increased SG&A expenses [14] - Q1 operating income was approximately $24 million, or 4% of sales, compared to $45 million, or 7.3% of sales in Q1 2024, driven by higher restructuring costs [15] - GAAP net income for Q1 2025 was $71 million, or $2.54 diluted earnings per share [18] Business Line Data and Key Metrics Changes - Life Science Group sales in Q1 2025 were $229 million, down 5.4% on a reported basis and 3.5% on a currency neutral basis, reflecting ongoing softness in the biotech and academic research market [13] - Clinical Diagnostics Group sales were approximately $357 million, a decrease of 3.2% on a reported basis, with increased demand for quality control products offset by lower diabetes testing revenue [14] Market Data and Key Metrics Changes - In Diagnostics, solid demand was shown, offsetting reimbursement reductions in China with nearly 3% growth in the rest of the world [9] - Currency neutral sales decreased in Asia Pacific, partially offset by increased sales in EMEA and The Americas [14] Company Strategy and Development Direction - The company continues to prioritize bringing innovative products to customers, with several key menu expansions launched in Q1 [6][7] - The acquisition of Stila Technology is on track for closing by the end of Q3 2025, expanding offerings in the digital PCR segment [10] - The company is focused on mitigating tariff impacts through surcharges, pre-positioning inventory, and regionalizing supply chains [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment with academic market headwinds due to government funding and global trade disruptions [6] - The company expects total currency neutral revenue to decline by approximately 1% to 1.5% for 2025, reflecting softer academic research funding and reduced demand from biotech customers [21][22] - Management remains optimistic about long-term growth opportunities in life science and diagnostics despite current challenges [28][29] Other Important Information - The company generated $130 million in net cash from operating activities in Q1 2025, compared to $70 million in Q1 2024 [19] - Free cash flow for Q1 2025 was $96 million, up from $30 million in Q1 2024, with a full-year target of approximately $310 million to $330 million for 2025 [19][20] Q&A Session Summary Question: Can you discuss the impact of tariffs and mitigation efforts? - Management acknowledged the significant impact of tariffs on U.S. products shipped to China and Europe, and discussed actions such as surcharges and pre-positioning inventory to mitigate these effects [33][35][36] Question: What is the current state of academic funding? - Management noted a 28% reduction in overall funding and indicated that while consumables remained strong, instrument sales experienced softness [38][41] Question: How does the growth gap between consumables and equipment look? - Management indicated a deterioration in instrument sales, down about 10% sequentially, while consumables held up well [46][70] Question: What is the company's capital allocation strategy? - Management expressed interest in pursuing larger inorganic opportunities while continuing stock buybacks, indicating a strong balance sheet [64][65] Question: Can you provide an update on the Stila acquisition? - Management reported positive feedback from teams regarding the Stila platform and noted excitement about its potential applications [76][77]