Azenta Reports First Quarter Results for Fiscal 2025, Ended December 31, 2024

PR Newswire

BURLINGTON, Mass., Feb. 5, 2025

BURLINGTON, Mass., Feb. 5, 2025 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the first quarter ended December 31, 2024.

 
 
 
The results of B Medical Systems are treated as discontinued operations and 
reflected in total diluted EPS, following the Company's announcement in the fourth 
fiscal quarter of 2024 of its intention to pursue a sale. 
 
                                        Quarter Ended 
               ---------------------------------------------------------------- 
Dollars in 
millions, 
except per     December       September       December 
share data        31,            30,             31,               Change 
                                                             Prior       Prior 
                 2024            2024           2023          Qtr         Yr. 
               ---------      ----------      ---------      -----      ------- 
Revenue from 
 Continuing 
 Operations    $     148      $      151      $     142        (2)%           4% 
Organic 
 growth                                                                       4% 
 Sample 
  Management 
  Solutions    $      81      $       85      $      79        (4)%           3% 
 Multiomics    $      66      $       66      $      63          0%           6% 
 
Diluted EPS 
 Continuing 
 Operations    $  (0.21)      $   (0.00)      $  (0.13)         NM         (63)% 
Diluted EPS 
 Total         $  (0.29)      $   (0.10)      $  (0.28)         NM          (5)% 
 
Non-GAAP 
 Diluted EPS 
 Continuing 
 Operations    $    0.08      $     0.22      $    0.08       (64)%         (1)% 
Adjusted 
 EBITDA - 
 Continuing 
 Operations    $      13      $       18      $       7       (25)%          89% 
Adjusted 
 EBITDA 
 Margin - 
 Continuing 
 Operations          9.0%           11.8%           5.0% 
 
 

Management Comments

"Our first quarter results represent a strong start to fiscal 2025 as we see positive momentum in the demand for our unique offering of Sample Management Solutions and Multiomics services," stated John Marotta, President and CEO. "Starting the year like this gives us confidence in the strength of our unique market positioning, value proposition and ability to continue evolving to our customers' needs while delivering profitable growth. We continue to see the benefit of our transformation initiatives and our free cash flow was strong. We are encouraged by the progress we are making."

First Quarter Fiscal 2025 Results - Continuing Operations

   -- Revenue was $148 million, up 4% year over year. Organic revenue, which 
      excludes a nominal impact from foreign exchange, was also up 4% year over 
      year. The year-over-year revenue increase was attributable to 
      higher Multiomics and Sample Management Solutions revenues. 
 
   -- Sample Management Solutions revenue was $81 million, up 3% year over 
      year. 
 
          -- Organic revenue grew 2%, mainly driven by higher revenues in 
             Sample Repository Solutions and Core Products, particularly in 
             Consumables and Instruments and Clinical and Cryogenic Stores 
             Systems. 
 
   -- Multiomics revenue was $66 million, up 6% year over year. 
 
          -- Organic revenue also grew 6% year over year, primarily driven by 
             growth in Next Generation Sequencing and Gene Synthesis, partially 
             offset by a year-over-year decline in Sanger Sequencing. 

Summary of GAAP Earnings Results - Continuing Operations

   -- Operating loss was $11 million. Operating margin was (7.7%), up 380 basis 
      points year over year. 
 
          -- Gross margin was 46.6%, up 300 basis points year over year, driven 
             by higher revenue, favorable sales mix, operational efficiencies, 
             lower amortization costs, and certain non-recurring items recorded 
             in the same period last year. 
 
          -- Operating expenses were $80 million, up 3% year over year, driven 
             by higher selling, general and administrative expenses, partially 
             offset by lower research and development costs, as well as lower 
             restructuring charges. 
 
   -- Other income included $4 million of net interest income versus $10 
      million in the prior year period. 
 
   -- Diluted EPS from continuing operations was ($0.21) compared to ($0.13) in 
      the first quarter of fiscal year 2024. Diluted EPS from discontinued 
      operations was ($0.09). Total diluted EPS was ($0.29), compared to 
      ($0.28) a year ago. 

Summary of Non-GAAP Earnings Results - Continuing Operations

   -- Adjusted operating loss was $0.2 million. Adjusted operating margin was 
      (0.2%), an improvement of 260 basis points year over year. 
 
          -- Adjusted gross margin was 47.6%, up 270 basis points compared to 
             the first quarter of fiscal 2024, primarily driven by higher 
             revenue, favorable sales mix, operating efficiencies and certain 
             non-recurring items recorded in the same period last year. 
 
          -- Adjusted operating expense in the quarter was $70 million, up 4% 
             year over year, primarily driven by higher selling, general and 
             administrative expenses, partially offset by lower research and 
             development costs. 
 
   -- Adjusted EBITDA was $13 million, and Adjusted EBITDA margin was 9.0%, an 
      improvement of 400 basis points year over year. 
 
   -- Non-GAAP Diluted EPS was $0.08, compared to $0.08 one year ago. 

Cash and Liquidity as of December 31, 2024

   -- The Company ended the quarter with a total balance of cash, cash 
      equivalents, restricted cash and marketable securities of $530 million, 
      which includes $27 million of cash held in discontinued operations. 
 
   -- Operating cash flow was $30 million in the quarter. Capital expenditures 
      were $8 million, and free cash flow (cash flow from operations less 
      capital expenditures) was $22 million. 

Guidance for Continuing Operations for Full Year Fiscal 2025

   -- The Company is reiterating its revenue guidance for fiscal year 2025: 
 
          -- Total organic revenue is expected to grow in the range of 3% to 5% 
             relative to fiscal 2024. 
 
          -- Adjusted EBITDA margin expansion is expected to be approximately 
             300 basis points relative to fiscal 2024. 

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, and other gains and charges that are not representative of the normal operations of the business.

Conference Call and Webcast

Azenta management will webcast its first quarter fiscal 2025 earnings conference call today at 8:30 a.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.

Regulation G -- Use of Non-GAAP financial Measures

The 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 and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934

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