Azenta Reports Fourth Quarter and Full Year Fiscal 2023 Results, Ended September 30, 2023

Q4’23 reported revenue growth of 25% year over year and 2% on an organic basis
FY’23 reported revenue growth of 20% and down 1% on an organic basis
Q4’23 generated positive free cash flow for the second consecutive quarter
Fiscal 2024 organic revenue growth expected to be 5-8%
Committing to an additional $500 million in share repurchases in Fiscal 2024

BURLINGTON, Mass., Nov. 13, 2023 /PRNewswire/ — Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2023.

Quarter Ended

Year Ended

Dollars in millions, except per share data

September 30, 

September 30, 

September 30, 

September 30, 

2023

2022

Change

2023

2022

Change

Revenue from Continuing Operations

$

172

$

138

25

%

$

665

$

555

20

%

   Organic growth

2

%

(1)

%

Life Sciences Products

$

82

$

48

70

%

$

305

$

199

53

%

Life Sciences Services

$

90

$

89

1

%

$

360

$

356

1

%

Diluted EPS Continuing Operations

$

0.05

$

(0.07)

166

%

$

(0.19)

$

(0.15)

(29)

%

Diluted EPS Total

$

0.06

$

(0.28)

120

%

$

(0.22)

$

28.48

(101)

%

Non-GAAP Diluted EPS Continuing Operations

$

0.13

$

0.16

(19)

%

$

0.31

$

0.51

(39)

%

Adjusted EBITDA Continuing Operations

$

8

$

9

(16)

%

$

30

$

62

(51)

%

Management Comments “We ended fiscal 2023 strong, delivering an impressive fourth quarter result amidst a still-challenging macroeconomic backdrop,” stated Steve Schwartz, President and CEO. “We are proud of the progress that we have made in the second half of fiscal 2023 and intend to carry those initiatives into the next fiscal year. Our cost reduction programs are on track and our strategic investments in the sales force are showing early benefits. The momentum we’re seeing across the business gives us confidence in our outlook for fiscal 2024, where we expect to achieve organic revenue growth of 5 to 8% coupled with continued margin expansion and positive free cash flow.”

“Today we are also pleased to announce plans to repurchase an additional $500 million in fiscal 2024 under our existing share repurchase program. This initiative underscores our focus on driving long-term value for shareholders through disciplined capital deployment. We have a strong balance sheet position, and, even after this additional repurchase of shares, we will have ample liquidity, including roughly $500 million of cash available to be prudently allocated to enhance shareholder value, including continued strategic investment in our unique end-to-end sample management portfolio.”

Fourth Quarter Fiscal 2023 Results

Revenue was $172 million, up 25% year over year and 4% sequentially. Organic revenue increased 2% year over year, which excludes the impacts from foreign exchange tailwinds of about 1 percentage point and 22 percentage points contribution from acquisitions. Excluding the Consumables and Instruments (“C&I”) business, which declined 18% year over year and remains soft reflecting continued oversupply in the consumables market, organic revenue increased 6% year over year.
Life Sciences Products revenue was $82 million, up 70% year over year.

Revenue from businesses acquired during the past year was $30 million in the quarter, including $29 million from B Medical.
Organic revenue, which excludes the revenue from acquired businesses and impacts from foreign exchange, grew 3% mainly driven by strong growth in large-automated store systems, partially offset by continued softness in C&I. Excluding the C&I business, the products segment grew 21% year over year on an organic basis.

Life Sciences Services revenue was $90 million, up 1% year over year.

Organic revenue, which excludes foreign exchange impacts, grew 1% year over year.
Sample Repository Solutions grew 9% year over year on an organic basis. Genomics services organic revenue declined 2% year over year.

Summary of GAAP Earnings Results

Operating loss was $17 million. Operating margin increased 100 basis points year over year.

Gross margin was 39.5%, down 280 basis points year over year, driven by increased amortization and purchase accounting adjustments related to acquisitions.
Operating expenses were $85 million, up $12 million year over year primarily driven by the acquisition of B Medical.

Other income included $11 million of net interest income versus $10 million in the prior year period.
Diluted EPS from continuing operations was $0.05 compared to ($0.07) in the fourth quarter of fiscal 2022. Diluted EPS from discontinued operations was $0.01 compared to ($0.21) in the prior year. Total diluted EPS was $0.06, compared to ($0.28) one year ago.

Summary of Non-GAAP Earnings Results

Operating loss was $0.9 million. Operating margin decreased 200 basis points year over year.

Gross margin was 42.8%, down 110 basis points year over year. A lower B Medical margin was partially offset by cost reduction initiatives within operations and favorable product mix, namely in large-automated stores.
Operating expense in the quarter was $75 million, up $16 million year over year, primarily driven by the additional operating structure of businesses acquired during the past year, as well as investment in sales and research and development, net of cost reduction actions.

Adjusted EBITDA was $8 million, and Adjusted EBITDA margin was 4.6%, down 230 basis points year over year.
Diluted EPS was $0.13, compared to $0.16 one year ago.

Full Year Fiscal 2023 Results

Revenue for fiscal 2023 was $665 million, up 20% year over year. Organic revenue declined 1%, which excludes the impacts from foreign exchange headwinds of 2 percentage points and a 23-percentage point contribution from acquisitions. Excluding the C&I business, which declined 26% year over year and remains soft reflecting continued oversupply in the consumables market, the total business grew 5% year over year on an organic basis.
Life Sciences Products revenue was $305 million, up 53% year over year.

Revenue from businesses acquired during the past year was $127 million, including $113 million from B Medical.
Organic revenue declined 9% year over year, primarily driven by softness in the C&I business.

Life Sciences Services revenue was $360 million, up 1% year over year.

Organic revenue, which excludes foreign exchange headwinds, grew 3% year over year.
Sample Repository Solutions grew 6% year over year on an organic basis. Genomics services grew 1% year over year on an organic basis.

Summary of GAAP Results

Operating loss was $73 million. Operating margin decreased 650 basis points year over year.

Gross margin was 39.6%, down 640 basis points year over year, primarily due to increased costs in both segments, unfavorable mix in the Life Science Products segment, and the increased amortization and purchase accounting adjustments related to acquisitions.
Operating expense was $336 million, up $56 million year over year primarily driven by additional operating structure of businesses acquired during the past year, higher labor costs, and continued investment in the business, partially offset by an adjustment to the fair value of the contingent consideration related to B Medical and savings from cost reduction initiatives.

Other income included $44 million of net interest income versus $16 million in the prior year period.
Diluted EPS from continuing operations was ($0.19) compared to ($0.15) in fiscal 2022. Diluted EPS from discontinued operations was ($0.02) compared to $28.63 in fiscal 2022. Total diluted EPS was ($0.22), compared to $28.48 in fiscal 2022.

Summary of Non-GAAP Results

Operating loss was $15 million and operating margin was (2.3%), down 740 basis points year over year.

Gross margin was 43.8%, down 350 basis points year over year.

Operating expense was $307 million, up $72 million year over year, driven by the added structure of acquired businesses, increased labor costs, and strategic investments in the business, net of savings from cost reduction initiatives.
Diluted EPS for fiscal 2023 was $0.31, compared to $0.51 in fiscal 2022.
Adjusted EBITDA was $30 million and Adjusted EBITDA margin was 4.6%, down 670 basis points year over year.

Cash and Liquidity as of September 30, 2023

The Company ended fiscal year 2023 with a total balance of cash, cash equivalents, restricted cash and marketable securities of $1.1 billion.
Operating cash flow was $40 million in the quarter and $17 million for the full year. After adjusting for items related to the Semiconductor Automation business, sold in February 2022, adjusted operating cash flow was $54 million for fiscal 2023.
Capital expenditures were $10 million in the quarter and $39 million for the full year.
Free cash flow was $30M in the quarter and ($22) million for the full year. After adjusting for items related to the Semiconductor Automation business, adjusted free cash flow was $14 million for fiscal 2023.

Share Repurchase Program Update

In the fourth quarter, the Company repurchased 3.4 million shares for $166 million under a 10b5-1 trading program.
In fiscal 2023, the Company repurchased 17.5 million shares for $839 million through the combination of an accelerated share repurchase program and a 10b5-1 program.
As of November 10, 2023, the Company has repurchased a total of 19.4 million shares for $934 million under its existing $1.5 billion share repurchase authorization.
In fiscal 2024, the Company intends to repurchase an additional $500 million in shares utilizing the full capacity of the $1.5 billion share repurchase authorization.

Guidance for Continuing Operations for Full Year Fiscal 2024

The Company announced guidance for Fiscal 2024.

Total revenue is expected to be in the range of $696 to $718 million, reflecting total organic revenue growth in the range of 5% to 8% relative to Fiscal 2023.
Adjusted EBITDA margin expansion is expected to be approximately 300 basis points.
Non-GAAP diluted earnings per share is expected to be in the range of $0.19 to $0.29.

Conference Call and WebcastAzenta management will webcast its fourth quarter and full year fiscal 2023 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company’s financial performance, business conditions and industry outlook. Management’s responses could contain information that has not been previously disclosed. 

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta’s website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay. In addition, you may call 800- 757-9216 (US & Canada only) or +1-212-231-2939 for international callers to listen to the live webcast.

Regulation G – Use of Non-GAAP financial MeasuresThe Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.

“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta’s financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following:  our ability to reduce costs effectively, the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; our ability to successfully invest the cash proceeds from the sale of our Semiconductor Automation business; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.

About Azenta Life SciencesAzenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry’s top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey and B Medical Systems.

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe and Asia. For more information, please visit www.azenta.com.

AZENTA INVESTOR CONTACTS: 

Sara Silverman
Head of Investor Relations & Corporate Communications
[email protected]

Sherry Dinsmore
[email protected]

AZENTA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

Three Months Ended

Year Ended

September 30, 

September 30,

2023

2022

2023

2022

Revenue

Products

$

72,180

$

42,944

$

277,191

$

180,950

Services

100,177

94,624

387,881

374,548

Total revenue

172,357

137,568

665,072

555,498

Cost of revenue

Products

49,235

26,478

186,090

100,044

Services

55,088

52,973

215,842

199,870

Total cost of revenue

104,323

79,451

401,932

299,914

Gross profit

68,034

58,117

263,140

255,584

Operating expenses

Research and development

8,932

7,647

33,956

27,542

Selling, general and administrative

74,926

64,704

316,282

251,465

Contingent consideration – fair value adjustments

(18,549)

600

Restructuring charges

804

393

4,577

712

Total operating expenses

84,662

72,744

336,266

280,319

Operating loss

(16,628)

(14,627)

(73,126)

(24,735)

Other income (expense)

Interest income

11,329

10,353

43,735

20,286

Interest expense

(478)

(4,589)

Loss on extinguishment of debt

(632)

Other, net

(338)

1,352

(1,042)

(266)

Loss before income taxes

(5,637)

(3,400)

(30,433)

(9,936)

Income tax (benefit) expense

(8,443)

1,910

(17,550)

1,350

Income (loss) from continuing operations

2,806

(5,310)

(12,883)

(11,286)

Income (loss) from discontinued operations, net of tax

569

(15,454)

(1,374)

2,144,145

Net income (loss)

$

3,375

$

(20,764)

$

(14,257)

$

2,132,859

Basic net income (loss) per share:

Income (loss) from continuing operations

$

0.05

$

(0.07)

$

(0.19)

$

(0.15)

Income (loss) from discontinued operations, net of tax

0.01

(0.21)

(0.02)

28.63

Net income (loss) per share

$

0.06

$

(0.28)

$

(0.22)

$

28.48

Diluted net income (loss) per share:

Income (loss) from continuing operations

$

0.05

$

(0.07)

$

(0.19)

$

(0.15)

Income (loss) from discontinued operations, net of tax

0.01

(0.21)

(0.02)

28.63

Diluted net income (loss) per share

$

0.06

$

(0.28)

$

(0.22)

$

28.48

Weighted average shares used in computing net income
(loss) per share:

Basic

59,603

75,010

66,253

74,897

Diluted

59,692

75,010

66,253

74,897

AZENTA, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

September 30, 

September 30,

2023

2022

Assets

Current assets

Cash and cash equivalents

$

678,910

$

658,274

Short-term marketable securities

338,873

911,764

Accounts receivable, net of allowance for expected credit losses ($8,057 and
$5,162, respectively)

156,535

163,758

Inventories

128,198

85,544

Derivative asset

13,036

124,789

Short-term restricted cash

4,650

382,596

Prepaid expenses and other current assets

98,754

132,621

Total current assets

1,418,956

2,459,346

Property, plant and equipment, net

205,744

154,470

Long-term marketable securities

111,338

352,020

Long-term deferred tax assets

571

1,169

Goodwill

784,339

513,623

Intangible assets, net

294,301

178,401

Other assets

70,471

57,093

Total assets

$

2,885,720

$

3,716,122

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

$

35,796

$

38,654

Deferred revenue

34,614

39,748

Accrued warranty and retrofit costs

10,223

2,890

Accrued compensation and benefits

33,911

41,898

Accrued income taxes payable

7,378

28,419

Accrued expenses and other current liabilities

89,006

78,937

Total current liabilities

210,928

230,546

Long-term tax reserves

380

1,684

Long-term deferred tax liabilities

67,301

64,555

Long-term operating lease liabilities

60,436

49,227

Other long-term liabilities

12,175

6,724

Total liabilities

351,220

352,736

Stockholders’ equity

Preferred stock, $0.01 par value – 1,000,000 shares authorized, no shares issued or
outstanding

Common stock, $0.01 par value – 125,000,000 shares authorized, 71,294,247
shares issued and 57,832,378 shares outstanding at September 30, 2023,
88,482,125 shares issued and 75,020,256 shares outstanding at
September 30, 2022

713

885

Additional paid-in capital

1,156,160

1,992,017

Accumulated other comprehensive income (loss)

(62,426)

(83,916)

Treasury stock, at cost – 13,461,869 shares at September 30, 2023 and September
30, 2022

(200,956)

(200,956)

Retained earnings

1,641,009

1,655,356

Total stockholders’ equity

2,534,500

3,363,386

Total liabilities and stockholders’ equity

$

2,885,720

$

3,716,122

AZENTA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

Year Ended

September 30, 

2023

2022

Cash flows from operating activities

Net income (loss)

$

(14,257)

$

2,132,859

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

85,584

53,702

Stock-based compensation

9,376

10,666

Contingent consideration adjustment

(18,549)

600

Amortization and accretion on marketable securities

(7,870)

(1,894)

Deferred income taxes

(28,236)

24,469

Loss on extinguishment of debt

632

Purchase accounting impact on inventory

9,664

(Gain) loss on disposals of property, plant and equipment

43

(21)

(Gain) loss on divestiture, net of tax

(2,130,265)

Fees paid stemming from divestiture

(52,461)

Taxes paid stemming from divestiture

(431,600)

Changes in operating assets and liabilities:

Accounts receivable

33,992

(31,397)

Inventories

5,771

(66,629)

Accounts payable

(14,710)

(3,926)

Deferred revenue

(7,564)

16,599

Accrued warranty and retrofit costs

5,604

303

Accrued compensation and tax withholdings

(15,434)

11,404

Other current assets and liabilities

(25,924)

1,513

Net cash provided by (used in) operating activities

17,490

(466,046)

Cash flows from investing activities

Purchases of property, plant and equipment

(39,436)

(73,435)

Purchases of technology intangibles

(4,000)

Purchases of marketable securities

(236,194)

(1,975,599)

Sales and maturities of marketable securities

1,064,209

705,384

Proceeds from divestiture, net of cash transferred

2,939,116

Net Investment hedge settlement

29,313

Acquisitions, net of cash acquired

(386,508)

(125,876)

Net cash provided by (used in) investing activities

431,384

1,465,590

Cash flows from financing activities

Proceeds from issuance of common stock

5,245

Principal payments on debt

(49,725)

Payments of finance leases

(578)

(388)

Payment for contingent consideration related to acquisition

(10,400)

Withholding tax payments on net share settlements on equity awards

(4,988)

Stock repurchase

(838,514)

Common stock dividends

(7,494)

Net cash used in financing activities

(844,080)

(62,762)

Effects of exchange rate changes on cash and cash equivalents

37,955

(180,819)

Net (decrease) increase in cash, cash equivalents and restricted cash

(357,251)

755,963

Cash, cash equivalents and restricted cash, beginning of period

1,041,296

285,333

Cash, cash equivalents and restricted cash, end of period

$

684,045

$

1,041,296

Supplemental disclosures:

Cash paid for interest

469

Cash paid for income taxes, net

43,073

452,461

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

Cash and cash equivalents of continuing operations

$

678,910

$

658,274

Short-term restricted cash

4,650

382,596

Long-term restricted cash included in other assets

485

426

Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows

$

684,045

$

1,041,296

Notes on Non-GAAP Financial MeasuresNon-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers.  Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

Quarter Ended

September 30, 2023

June 30, 2023

September 30, 2022

per diluted

per diluted

per diluted

Amounts in thousands, except per share data    

$

share

$

share

$

share

Net income (loss) from continuing operations

$

2,806

$

0.05

$

(2,463)

$

(0.04)

$

(5,310)

$

(0.07)

Adjustments:

Amortization of completed technology

4,769

0.08

4,656

0.07

1,901

0.03

Purchase accounting impact on inventory

927

0.02

2,956

0.05

Amortization of other intangible assets

7,481

0.13

7,522

0.12

6,900

0.09

Rebranding and transformation costs

(15)

21

536

0.01

Restructuring and restructuring related
charges

804

0.01

812

0.01

393

0.01

Contingent consideration – fair value
adjustments

(1,404)

(0.02)

Merger and acquisition costs and costs
related to share repurchase (1)

1,767

0.03

219

6,959

0.09

Tax adjustments (2)

(6,691)

(0.11)

(31)

2,510

0.03

Tax effect of adjustments 

(4,379)

(0.07)

(3,947)

(0.06)

(2,130)

(0.03)

Non-GAAP adjusted net income from
continuing operations

$

7,469

$

0.13

$

8,341

$

0.13

$

11,759

$

0.16

   Stock based compensation, pre-tax

(715)

(0.01)

3,995

0.06

(49)

   Tax rate

15

%

15

%

15

%

Stock-based compensation, net of tax

(608)

(0.01)

3,396

0.05

(42)

Non-GAAP adjusted net income excluding
stock-based compensation – continuing
operations

$

6,861

$

0.11

$

11,737

$

0.18

$

11,717

$

0.16

Shares used in computing non-GAAP
diluted net income per share

59,692

63,432

75,010

Year Ended

September 30, 2023

September 30, 2022

per diluted

per diluted

Amounts in thousands, except per share data    

$

share

$

share

Net loss from continuing operations

$

(12,883)

$

(0.19)

$

(11,286)

$

(0.15)

Adjustments:

Amortization of completed technology

18,494

0.28

7,325

0.10

Purchase accounting impact on inventory

9,664

0.15

Amortization of other intangible assets

29,884

0.45

24,964

0.33

Rebranding and transformation costs

(49)

(0.00)

2,741

0.04

Restructuring and restructuring related charges

4,577

0.07

712

0.01

Contingent consideration – fair value adjustments

(18,549)

(0.28)

Tariff adjustment

(484)

(0.01)

Merger and acquisition costs and costs related to share
repurchase (1)

13,842

0.21

17,929

0.24

Indemnification asset release

(19)

(0.00)

Loss on extinguishment of debt

632

0.01

Tax adjustments (2)

(8,102)

(0.12)

5,744

0.08

Tax effect of adjustments

(16,260)

(0.25)

(10,078)

(0.13)

Non-GAAP adjusted net income from continuing
operations

$

20,599

$

0.31

$

38,199

$

0.51

Stock-based compensation, pre-tax

9,497

0.14

12,443

0.17

Tax rate

15

%

15

%

Stock-based compensation, net of tax

8,072

0.12

10,577

0.14

Non-GAAP adjusted net income excluding stock-based
compensation – continuing operations

$

28,671

$

0.43

$

48,776

$

0.65

Shares used in computing non-GAAP diluted net income per share

66,253

74,897

(1)       

Includes expenses related to governance-related matters.

(2)       

Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the twelve months ended September 30, 2023, included a $1.4M increase to expense related to the exclusion of a benefit from an incentive tax rate change in China. The fourth quarter 2023 tax adjustment includes the exclusion of a one-time GAAP tax benefit related to the outside basis difference of a foreign subsidiary of $6.1 million. Tax adjustments for the quarter ended September 30, 2022, include a $4.1M increase to expense related to the exclusion of allocations between continuing operations and discontinued operations.

Quarter Ended

Year Ended

September 30, 

June 30, 

September 30, 

September 30, 

September 30, 

Dollars in thousands

2023

2023

2022

2023

2022

GAAP net income (loss)

$

3,375

$

(1,470)

$

(20,764)

$

(14,257)

$

2,132,859

Less: Income (loss) from discontinued operations

569

993

(15,454)

(1,374)

2,144,145

GAAP net income (loss) from continuing operations

2,806

(2,463)

(5,309)

(12,883)

(11,286)

Adjustments:

Less: Interest income

(11,329)

(11,347)

(10,353)

(43,735)

(20,286)

Add: Interest expense

478

4,589

Add / Less: Income tax (benefit) expense

(8,443)

(1,207)

1,910

(17,550)

1,350

Add: Depreciation

9,891

9,126

6,087

37,206

21,864

Add: Amortization of completed technology

4,769

4,656

1,901

18,494

7,325

Add: Amortization of other intangible assets

7,481

7,522

6,900

29,884

24,956

Add: Loss on extinguishment of debt

632

Earnings before interest, taxes, depreciation and
amortization – Continuing operations

$

5,175

$

6,287

$

1,614

$

11,416

$

29,144

Quarter Ended

Year Ended

September 30, 

June 30, 

September 30, 

September 30, 

September 30, 

Dollars in thousands

2023

2023

2022

2023

2022

Earnings before interest, taxes, depreciation and
amortization – Continuing operations

$

5,175

$

6,287

$

1,613

$

11,416

$

29,144

Adjustments:

Add: Stock-based compensation

(715)

3,995

(49)

9,497

12,443

Add: Purchase accounting impact on inventory

927

2,956

9,664

Add: Restructuring and restructuring related charges

804

812

393

4,577

712

Add: Merger and acquisition costs and costs related
to share repurchase(1)

1,767

219

6,959

13,842

17,929

Less: Contingent consideration – fair value adjustments

(1,404)

(18,549)

Less: Tariff adjustment

(484)

Less: Rebranding and transformation costs

(15)

21

536

(49)

2,741

Less: Indemnification asset release

(19)

Adjusted earnings before interest, taxes, depreciation
and amortization – Continuing operations

$

7,943

$

12,886

$

9,452

$

30,379

$

62,485

(1)       

Includes expenses related to governance-related matters.

Quarter Ended

Dollars in thousands

September 30, 2023

June 30, 2023

September 30, 2022

GAAP gross profit

$

68,034

39.5

%

$

68,005

41.0

%

$

58,117

42.2

%

Adjustments:

Amortization of completed technology

4,769

2.8

4,656

2.8

1,901

1.4

Purchase accounting impact on inventory

927

0.5

2,956

1.8

Other adjustment

289

0.2

Non-GAAP adjusted gross profit

$

73,730

42.8

%

$

75,617

45.6

%

$

60,307

43.8

%

Year Ended

Dollars in thousands

September 30, 2023

September 30, 2022

GAAP gross profit

$

263,140

39.6

%

$

255,584

46.0

%

Adjustments:

Amortization of completed technology

18,494

2.8

7,325

1.3

Purchase accounting impact on inventory

9,664

1.4

Tariff adjustment

(484)

(0.1)

Other adjustment

289

0.1

Non-GAAP adjusted gross profit

$

291,298

43.8

%

$

262,714

47.3

%

 Life Sciences Products

Life Sciences Services

Quarter Ended

Quarter Ended

September 30, 

June 30, 

September 30, 

September 30, 

June 30, 

September 30, 

Dollars in thousands

2023

2023

2022

2023

2023

2022

GAAP gross profit

$

26,716

32.5

%

$

27,213

36.5

%

$

19,068

39.4

%

$

41,318

45.8

%

$

40,792

44.6

%

$

39,057

43.8

%

Adjustments:

Amortization of completed technology

3,451

4.2

3,329

4.4

401

0.8

1,318

1.5

1,327

1.5

1,500

1.7

Purchase accounting impact on inventory

927

1.2

2,956

4.0

Other adjustment

(1)

289

0.3

Non-GAAP adjusted gross profit

$

31,093

37.9

%

$

33,498

44.9

%

$

19,469

40.3

%

$

42,636

47.2

%

$

42,119

46.1

%

$

40,846

45.8

%

Life Sciences Products

Life Sciences Services

Year Ended

Year Ended

Dollars in thousands

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

GAAP gross profit

$

101,192

33.2

%

$

89,074

44.7

%

$

161,948

45.0

%

$

166,523

46.7

%

Adjustments:

Amortization of completed technology

13,194

4.3

1,122

0.6

5,300

1.5

6,202

1.7

Purchase accounting impact on inventory

9,664

3.2

Tariff adjustment

(484)

(0.1)

Other adjustment

(1)

(0.0)

289

0.1

Non-GAAP adjusted gross profit

$

124,050

40.6

%

$

90,196

45.2

%

$

167,247

46.5

%

$

172,530

48.4

%

 Life Sciences Products

Life Sciences Services

Quarter Ended

Quarter Ended

September 30, 

June 30, 

September 30, 

September 30, 

June 30, 

September 30, 

Dollars in thousands

2023

2023

2022

2023

2023

2022

GAAP operating (loss) profit

$

(5,244)

$

(4,878)

$

(141)

$

(1,420)

$

(3,813)

$

12

Adjustments:

.

Amortization of completed technology

3,451

3,329

401

1,318

1,327

1,500

Purchase accounting impact on inventory

927

2,956

Other adjustment

51

(1)

339

Non-GAAP adjusted operating (loss) profit

$

(815)

$

1,407

$

260

$

(103)

$

(2,486)

$

1,851

Total Segments

Corporate

Total

Quarter Ended

Quarter Ended

Quarter Ended

September 30, 

June 30, 

September 30, 

September 30, 

June 30, 

September 30, 

September 30, 

June 30, 

September 30, 

Dollars in thousands

2023

2023

2022

2023

2023

2022

2023

2023

2022

GAAP operating (loss) profit

$

(6,664)

$

(8,691)

$

(129)

$

(9,964)

$

(7,145)

$

(14,490)

$

(16,628)

$

(15,836)

$

(14,619)

Adjustments:

Amortization of completed technology

4,769

4,656

1,901

4,769

4,656

1,901

Purchase accounting impact on inventory

927

2,956

927

2,956

Amortization of other intangible assets

7,481

7,522

6,900

7,481

7,522

6,900

Rebranding and transformation costs

(15)

21

536

(15)

21

536

Restructuring charges

804

812

393

804

812

393

Contingent consideration adjustment

(1,404)

(1,404)

Merger and acquisition costs and costs
related to share repurchase (1)

1,767

219

6,959

1,767

219

6,959

Other adjustment

50

339

(51)

(2)

(339)

(1)

(2)

Non-GAAP adjusted operating (loss) profit

$

(918)

$

(1,079)

$

2,111

$

22

$

23

$

(41)

$

(896)

$

(1,056)

$

2,070

(1)       

Includes expenses related to governance-related matters.

Life Sciences Products

Life Sciences Services

Year Ended

Year Ended

Dollars in thousands

September 30, 

September 30, 

September 30, 

September 30, 

2023

2022

2023

2022

GAAP operating (loss) profit

$

(30,321)

$

11,033

$

(14,722)

$

10,784

Adjustments:

Amortization of completed technology

13,194

1,122

5,300

6,202

Purchase accounting impact on inventory

9,664

Tariff adjustment

(484)

Other adjustment

1,566

110

345

Non-GAAP adjusted operating (loss) profit

$

(5,897)

$

12,155

$

(9,312)

$

16,847

Total Segments

Corporate

Total

Year Ended

Year Ended

Year Ended

Dollars in thousands

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

2023

2022

2023

2022

2023

2022

GAAP operating (loss) profit

$

(45,043)

$

21,817

$

(28,083)

$

(46,552)

$

(73,126)

$

(24,735)

Adjustments:

Amortization of completed technology

18,494

7,324

18,494

7,324

Purchase accounting impact on inventory

9,664

9,664

Amortization of other intangibles

29,884

24,965

29,884

24,965

Rebranding and transformation costs

(49)

2,741

(49)

2,741

Restructuring and restructuring related charges

4,577

712

4,577

712

Contingent consideration – fair value adjustments

(18,549)

(18,549)

Tariff adjustment

(484)

(484)

Merger and acquisition costs and costs related to
share repurchase (1)

13,842

17,929

13,842

17,929

Other adjustment

1,676

345

(1,677)

(345)

(1)

Non-GAAP adjusted operating (loss) profit

$

(15,209)

$

29,002

$

(55)

$

(550)

$

(15,264)

$

28,452

(1)       

Includes expenses related to governance-related matters.

Life Sciences Products

Life Sciences Services

Azenta Total

Quarter Ended

Quarter Ended

Quarter Ended

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

Dollars in millions

2023

2022

Change

2023

2022

Change

2023

2022

Change

 Revenue

$

82

$

48

70

%

$

90

$

89

1

%

$

172

$

138

25

%

Acquisitions/divestitures

30

(63)

%

%

30

(22)

%

Currency exchange rates

2

(4)

%

0

(0)

%

2

(1)

%

Organic revenue

$

50

$

48

3

%

$

90

$

89

1

%

$

140

$

138

2

%

Life Sciences Products

Life Sciences Services

Azenta Total

Year Ended

Year Ended

Year Ended

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

September 30, 

Dollars in millions

2023

2022

Change

2023

2022

Change

2023

2022

Change

 Revenue

$

305

$

199

53

%

$

360

$

356

1

%

$

665

$

555

20

%

Acquisitions/divestitures

127

(64)

%

%

127

(23)

%

Currency exchange rates

(4)

2

%

(6)

2

%

(9)

2

%

Organic revenue

$

182

$

199

(9)

%

$

366

$

356

3

%

$

547

$

555

(1)

%

SOURCE Azenta

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