Azenta Life Sciences Reports Preliminary Results of Second Quarter of Fiscal 2022, Ended March 31, 2022

Rhea-AI Summary

Azenta, Inc. (Nasdaq: AZTA) reported preliminary Q2 results for the period ended March 31, 2022. Revenue from continuing operations reached $146 million, reflecting a 12% year-over-year increase. Life Sciences Services showed significant growth of 19%, primarily in Sample Repository Solutions and Genomics Services. However, the company posted a diluted EPS from continuing operations of ($0.02), down from $0.04 the previous quarter, and operating losses totaled $5 million. Azenta anticipates Q3 revenue between $140 million to $150 million.

Positive

• Revenue from continuing operations increased by 12% year-over-year.
• Life Sciences Services revenue grew by 19% year-over-year.
• Cash and liquidity improved with a total balance of $3.0 billion post-divestiture.

Negative

• Operating loss of $5 million reported for the quarter.
• Diluted EPS from continuing operations decreased to ($0.02).

Robust customer demand bolstered by operational execution drives strong second quarter results

CHELMSFORD, Mass., May 9, 2022 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported preliminary financial results for the second quarter ended March 31, 2022.

Summary of Preliminary Results

On February 1, 2022, the Company completed the sale of its Semiconductor Automation business.  The related gain on the sale and the results of the Semiconductor Automation business are treated as discontinued operations and reflected in total diluted EPS.  Due to the complexities of the financial carve-out of the business from the Company's financial results, the Company expects it will require additional time to finalize its financial statements and intends to file a Form 12b-25 with the Securities and Exchange Commission in order to extend the due date of its quarterly report on Form 10-Q for the quarter ended March 31, 2022 for five days, as permitted by Rule 12b-25 under the Securities Exchange Act. As a result, the financial results presented herein are preliminary. 

		Quarter Ended
Dollars in millions, except per share data		March 31,			December 31,			March 31,			Change
		2022			2021			2021			Prior Qtr.		Prior Yr.
Revenue from Continuing Operations		$	146		$	140		$	130		4	%	12	%
Life Sciences Products		$	54		$	50		$	52		7	%	2	%
Life Sciences Services		$	92		$	90		$	77		2	%	19	%
Diluted EPS Continuing Operations		$	(0.02)		$	0.04		$	(0.10)		(163)	%	75	%
Diluted EPS Total		$	28.15		$	0.58		$	0.32		NM		NM	%
Non-GAAP Diluted EPS Continuing Operations		$	0.12		$	0.12		$	0.14		(2)	%	(15)	%
Adjusted EBITDA Continuing Operations		$	19		$	20		$	24		(2)	%	(18)	%

Management Comments

"We delivered another strong quarter with healthy demand across the portfolio," stated Steve Schwartz, President and CEO. "Even as we faced COVID headwinds in certain regions, the team did a remarkable job to mitigate the impact to the business. We continued to enhance our commercial positioning as Azenta and see a long runway ahead driven by our unique value proposition in strong and fast-growing end markets."

Summary of Preliminary Q2 GAAP Results

• Revenue from continuing operations for the second quarter was $146 million, up 12% year over year and up 4% sequentially. Year-over-year organic growth was 12%.
• Revenue from Life Sciences Products grew 2% year over year driven by continued strength in automated cryogenic freezers partially offset by lower consumables and instruments revenue, which saw the peak of estimated COVID-related revenue in the second quarter of fiscal year 2021. On a sequential basis, revenue was up 7% driven by growth in automated stores and non-COVID related consumables and instruments revenue.
• Life Sciences Services revenue was up 19% year over year, with 21% growth in Sample Repository Solutions driven by growth in storage and 18% growth in Genomics Services. On a sequential basis, revenue was up 2% with expansion in both businesses.
• Operating loss for the second quarter was $5 million. Gross margin was 48.7% and operating expense of $76 million included approximately $6 million of professional fees in support of M&A initiatives primarily related to the sale.
• Diluted EPS from continuing operations was ($0.02) per share. Total diluted EPS of $28.15 includes $28.18 of diluted EPS from discontinued operations.

Summary of Preliminary Q2 Non-GAAP Earnings for Continuing Operations
The Continuing Operations view shown on a non-GAAP basis provides additional performance information by excluding the impact of M&A costs, amortization, restructuring, purchase price accounting, certain tax impacts, and special charges or gains, such as impairment losses.

• As referenced above, revenue in the second quarter was $146 million, up 12% year over year, with 2% growth in Life Sciences Products and 19% growth in Life Science Services.
• Gross margin of 49.6% was lower by 90 basis points year over year and up 30 basis points sequentially. The gross margin of the Products business was 49.5%, up 310 basis points year over year and up 360 basis points sequentially. The gross margin of the Services business was 49.6%, lower by 360 basis points year over year and down 150 basis points sequentially. Operating income was $10 million and operating margin was 6.7%, down 350 basis points year over year and down 210 basis points sequentially. Operating expense in the quarter was $62 million, up $6 million compared to Q1 2022 and up $10 million year over year. The increases include investments in R&D, sales, and G&A to support growth. Adjusted EBITDA, which excludes stock-based compensation, was $19 million and Adjusted EBITDA margin was 13.3%, down 90 basis points from the first quarter of 2022 and down 500 basis points year over year.
• Diluted EPS for the second quarter was $0.12, flat compared to the first quarter and down $0.02 versus one year ago.

Cash and Liquidity

• The Company completed the sale of its Semiconductor Automation business on February 1, 2022 to Thomas H. Lee Partners for a cash price of $3.0 billion, subject to final working capital and other adjustments. Net cash proceeds from the divestiture are expected to be approximately $2.5 billion excluding estimated taxes payable and other items, such as closing costs. Upon closure of the sale on February 1, 2022, the Company utilized approximately $50 million of proceeds to extinguish all outstanding debt. The Company also terminated its revolving line of credit, which had no borrowings outstanding.
• The Company ended the second fiscal quarter of 2022 with a total balance of cash, cash equivalents, restricted cash and marketable securities of $3.0 billion. The company has pending taxes due of approximately $450 million related to the gain on the sale, the majority of which is expected to be paid in the fiscal third quarter.

Guidance for Continuing Operations for Third Quarter Fiscal 2022

The Company announced revenue and earnings guidance for continuing operations for the third quarter of fiscal 2022. Revenue is expected to be in the range of $140 million to $150 million and non-GAAP diluted earnings per share for the third fiscal quarter is expected to be in the range of $0.09 to $0.17. GAAP diluted earnings per share from continuing operations is expected to be in the range of ($0.03) to $0.05. 

Conference Call and Webcast

Azenta management will webcast its second quarter 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 800-926-6194 (US & Canada only) or +1-212-231-2922 for international callers to listen to the live webcast.

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, statements of operations and statements of cash flows.

 

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

Some 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.  Also, as noted above, the results included in this release are preliminary.  In the course of finalizing its quarterly closing and reporting processes and the completing its financial statements for the quarter ended March 31, 2022, the Company may identify items that would require the Company to make adjustments, some of which could be material, to the preliminary financial results set forth in this release.  Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, our ability to deliver financial success in the future, and our ability to invest the cash proceeds from the sale of our semiconductor automation business. Factors that could cause results to differ from our expectations include the following:  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 industries 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; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions, 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 Sciences
Azenta, 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 genomic 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. As of December 1st, the company changed its name and ticker to Azenta, Inc. (Nasdaq: AZTA) from Brooks Automation, Inc, (Nasdaq: BRKS).

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

AZENTA INVESTOR CONTACTS:

Sara Silverman
Director of Investor Relations
Azenta Life Sciences
978.262.2635
sara.silverman@azenta.com

Sherry Dinsmore
Azenta Life Sciences
978.262.4301
sherry.dinsmore@azenta.com

 

AZENTA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per share data)
	Three Months Ended							Six Months Ended
	March 31,							March 31,
	2022			2021				2022			2021
Revenue
Products	$	49,449		$	46,233			$	95,318		$	87,695
Services		96,095			83,302				189,878			159,982
Total revenue		145,544			129,535				285,196			247,677
Cost of revenue
Products		24,952			22,787				49,475			45,580
Services		49,766			48,848				97,852			86,862
Total cost of revenue		74,719			71,635				147,327			132,442
Gross profit		70,825			57,900				137,869			115,235
Operating expenses
Research and development		6,896			5,236				13,381			10,324
Selling, general and administrative		68,515			61,892				129,226			113,823
Restructuring charges		122			92				296			53
Total operating expenses		75,533			67,220				142,902			124,200
Operating loss		(4,708)			(9,320)				(5,033)			(8,965)
Interest income		3,076			18				3,111			94
Interest expense		(1,555)			(452)				(2,010)			(1,008)
Loss on extinguishment of debt		(632)			—				(632)			—
Other income (expenses), net		(1,170)			108				(2,248)			1,389
Loss before income taxes		(4,989)			(9,646)				(6,812)			(8,490)
Income tax benefit		(3,173)			(2,310)				(7,853)			(3,860)
(Loss) income from continuing operations		(1,816)			(7,336)				1,041			(4,630)
Income from discontinued operations, net of tax		2,117,685			31,084				2,158,147			54,406
Net income	$	2,115,869		$	23,748			$	2,159,188		$	49,776
Basic net income per share:
(Loss) income from continuing operations	$	(0.02)		$	(0.10)			$	0.01		$	(0.06)
Income from discontinued operations, net of tax		28.25			0.42				28.84			0.73
Basic net income per share	$	28.23		$	0.32			$	28.86		$	0.67
Diluted net income per share:
(Loss) income from continuing operations	$	(0.02)		$	(0.10)			$	0.01		$	(0.06)
Income from discontinued operations, net of tax		28.18			0.42				28.72			0.73
Diluted net income per share	$	28.15		$	0.32			$	28.73		$	0.67
Weighted average shares outstanding used in computing net income per share:
Basic		74,958			74,265				74,823			74,142
Diluted		75,157			74,414				75,145			74,367

 

AZENTA, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)
	March 31,			September 30,
	2022			2021
Assets
Current assets
Cash and cash equivalents	$	1,936,291		$	227,427
Marketable securities		816,512			81
Accounts receivable, net		137,578			119,877
Inventories		77,752			60,398
Prepaid expenses and other current assets		74,961			58,198
Current assets held for sale		—			311,385
Total current assets		3,043,094			777,366
Property, plant and equipment, net		150,426			130,719
Long-term marketable securities		260,219			3,598
Long-term deferred tax assets		2,278			10,043
Goodwill		467,746			469,356
Intangible assets, net		170,507			186,534
Other assets		65,239			58,068
Non-current assets held for sale		—			183,828
Total assets	$	4,159,509		$	1,819,512
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	35,868		$	42,360
Deferred revenue		30,701			25,724
Accrued warranty and retrofit costs		2,492			2,330
Accrued compensation and benefits		41,707			33,183
Accrued restructuring costs		183			304
Accrued income taxes payable		430,650			8,711
Deferred tax liabilities		2,676			—
Accrued expenses and other current liabilities		71,691			103,537
Current liabilities held for sale		—			128,939
Total current liabilities		615,968			345,088
Long-term debt		—			49,677
Long-term tax reserves		2,023			1,973
Long-term deferred tax liabilities		18,429			13,030
Long-term pension liabilities		720			705
Long-term operating lease liabilities		48,698			45,088
Other long-term liabilities		4,790			6,173
Non-current liabilities held for sale		—			32,444
Total liabilities		690,628			494,178
Commitments and contingencies
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, 88,445,490 shares issued and 74,983,621 shares outstanding at March 31, 2022, 87,808,922 shares issued and 74,347,053 shares outstanding at September 30, 2021		885			878
Additional paid-in capital		1,970,128			1,976,112
Accumulated other comprehensive income		17,645			19,351
Treasury stock at cost - 13,461,869 shares		(200,956)			(200,956)
Accumulated earnings (deficit)		1,681,179			(470,051)
Total stockholders' equity		3,468,881			1,325,334
Total liabilities and stockholders' equity	$	4,159,509		$	1,819,512

Notes on Non-GAAP Financial Measures
Non-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
		March 31, 2022						December 31, 2021						March 31, 2021
					per diluted						per diluted						per diluted
Dollars in thousands, except per share data		$			share			$			share			$			share
Net (loss) income from continuing operations		$	(1,816)		$	(0.02)		$	2,858		$	0.04		$	(7,336)		$	(0.10)
Adjustments:
Amortization of intangible assets			7,887			0.10			8,046			0.11			9,377			0.13
Restructuring charges			122			0.00			173			0.00			92			0.00
Tariff adjustment			(486)			—						—			5,497			0.07
Merger and acquisition costs			5,589			0.07			3,719			0.05			7,517			0.10
Rebranding and transformation costs			1,297			0.02			619			0.01			—			—
Loss on extinguishment of debt			632			0.01			—			—			—			—
Tax adjustments (1)			(900)			(0.01)			(4,240)			(0.06)			(2,264)			(0.03)
Tax effect of adjustments			(3,580)			(0.05)			(2,265)			(0.03)			(2,672)			(0.04)
Non-GAAP adjusted net income from continuing operations		$	8,745		$	0.12		$	8,910		$	0.12		$	10,211		$	0.14
Stock based compensation, pre-tax			5,549			0.07			3,458			0.05			5,734			0.08
Tax rate			15	%		—			15	%		—			15	%		—
Stock-based compensation, net of tax			4,717			0.06			2,939			0.04			4,874			0.07
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations		$	13,461		$	0.18		$	11,850		$	0.16		$	15,085		$	0.20
Shares used in computing non-GAAP diluted net income per share			—			75,157			—			74,866			—			74,367

 

			Six Months Ended
			March 31, 2022						March 31, 2021
						per diluted						per diluted
Dollars in thousands, except per share data			$			share			$			share
Net income (loss) from continuing operations			$	1,041		$	0.01		$	(4,630)		$	(0.06)
Adjustments:
Amortization of intangible assets				15,933			0.21			18,287			0.25
Tariff adjustment				(486)			(0.01)			5,497			0.07
Merger and acquisition costs				9,308			0.12			9,708			0.13
Restructuring related charges				296			0.00			53			0.00
Rebranding and transformation costs				1,916			0.03			—			—
Loss on extinguishment of debt				632			0.01			—			—
Tax adjustments (1)				(4,760)			(0.06)			(863)			(0.01)
Tax effect of adjustments				(6,225)			(0.08)			(8,548)			(0.11)
Non-GAAP adjusted net income from continuing operations			$	17,655		$	0.23		$	19,504		$	0.26
Stock-based compensation, pre-tax				9,007			0.12			10,569			0.14
Tax rate				15	%		—			15	%		—
Stock-based compensation, net of tax				7,656		$	0.10			8,984			0.12
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations			$	25,311		$	0.34		$	28,488		$	0.38
Shares used in computing non-GAAP diluted net income per share				—			75,145			—			74,367

⁽¹⁾ Tax adjustments during all periods include adjustments to tax benefits related to stock compensation windfalls. These benefits 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 quarter and six months ended March 31, 2022, include a $2.5M increase to expense related to the exclusion of allocations between continuing operations and discontinued operations.  This amount is partially offset by the windfall adjustment and the exclusion of a $0.6M charge for the impact of a state tax rate change related to the separation.

		Quarter Ended									Six Months Ended
		March 31,			December 31,			March 31,			March 31,			March 31,
Dollars in thousands		2022			2021			2021			2022			2021
GAAP net income		$	2,115,869		$	43,320		$	23,748		$	2,159,188		$	49,776
Adjustments:
Less: Income from discontinued operations			(2,117,685)			(40,462)			(31,084)			(2,158,147)			(54,406)
Less: Interest income			(3,076)			(35)			(18)			(3,111)			(94)
Add: Interest expense			1,555			455			452			2,010			1,008
Add: Income tax benefit			(3,173)			(4,680)			(2,310)			(7,853)			(3,860)
Add: Depreciation			5,316			5,208			4,743			10,524			9,560
Add: Amortization of completed technology			1,840			1,773			2,021			3,613			4,026
Add: Amortization of customer relationships and acquired intangible assets			6,047			6,272			7,356			12,319			14,261
Loss on extinguishment of debt			632									632
Earnings before interest, taxes, depreciation and amortization		$	7,325		$	11,851		$	4,908		$	19,175		$	20,271

 

		Quarter Ended									Six Months Ended
		March 31,			December 31,			March 31,			March 31,			March 31,
Dollars in thousands		2022			2021			2021			2022			2021
Earnings before interest, taxes, depreciation and amortization		$	7,325		$	11,851		$	4,908		$	19,175		$	20,271
Adjustments:
Add: Stock-based compensation			5,549			3,458			5,734			9,007			10,569
Add: Restructuring charges			122			173			92			296			53
Add: Merger and acquisition costs			5,589			3,719			7,517			9,308			9,708
Add: Tariff adjustment			(486)			—			5,497			(486)			5,497
Rebranding and transformation costs			1,297			619			—			1,916			—
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations		$	19,396		$	19,820		$	23,748		$	39,216		$	46,098

 

		Quarter Ended
Dollars in thousands		March 31, 2022						December 31, 2021						March 31, 2021
GAAP gross profit		$	70,825		48.7	%		$	67,044		48.0	%		$	57,900		44.7	%
Adjustments:
Amortization of completed technology			1,840		1.3				1,773		1.3				2,021		1.6
Tariff adjustment			(486)		(0.3)				—		—				5,497		4.2
Non-GAAP adjusted gross profit		$	72,179		49.6	%		$	68,817		49.3	%		$	65,418		50.5	%

 

		Life Sciences Products																		Life Sciences Services
		Quarter Ended																		Quarter Ended
Dollars in thousands		March 31, 2022						December 31, 2021						March 31, 2021						March 31, 2022						December 31, 2021						March 31, 2021
GAAP gross profit		$	26,290		49.0	%		$	22,690		45.5	%		$	24,051		45.9	%		$	44,535		48.4	%		$	44,354		49.4	%		$	33,849		43.9	%
Adjustments:
Amortization of completed technology			267		0.5				203		0.4				280		0.5				1,572		1.7				1,570		1.7				1,741		2.3
Tariff adjustment			—		—				—		—				—		—				(486)		(0.5)				—		—				5,497		7.1
Non-GAAP adjusted gross profit		$	26,557		49.5	%		$	22,894		45.9	%		$	24,331		46.5	%		$	45,621		49.6	%		$	45,924		51.2	%		$	41,087		53.2	%

 

		Six Months Ended
Dollars in thousands		March 31, 2022						March 31, 2021
GAAP gross profit		$	137,869		48.3	%		$	115,235		46.5	%
Adjustments:
Amortization of completed technology			3,613		1.3				4,026		1.6
Tariff adjustment			(486)		(0.2)				5,497		2.2
Non-GAAP adjusted gross profit		$	140,996		49.4	%		$	124,758		50.4	%

 

		Life Sciences Products											Life Sciences Services
		Six Months Ended											Six Months Ended
Dollars in thousands		March 31, 2022						March 31, 2021					March 31, 2022						March 31, 2021
GAAP gross profit		$	48,980		47.3	%		$	44,576		45.5	%	$	88,902		48.9	%		$	70,659		47.2	%
Adjustments:
Amortization of completed technology			471		0.5				553		0.6			3,142		1.7				3,473		2.3
Tariff adjustment			—		—				—		—			(486)		(0.3)				5,497		3.7
Non-GAAP adjusted gross profit		$	49,451		47.8	%		$	45,129		46.1	%	$	91,558		50.4	%		$	79,629		53.2	%

 

		Life Sciences Products									Life Sciences Services
		Quarter Ended									Quarter Ended
		March 31,			December 31,			March 31,			March 31,			December 31,			March 31,
Dollars in thousands		2022			2021			2021			2022			2021			2021
GAAP operating profit (loss)		$	5,021		$	4,187		$	6,968		$	3,770		$	6,314		$	(1,624)
Adjustments:
Amortization of completed technology			267			203			280			1,572			1,570			1,741
Tariff adjustment			—			—			—			(486)			—			5,497
Non-GAAP adjusted operating profit		$	5,288		$	4,390		$	7,248		$	4,856		$	7,884		$	5,614

 

		Total Segments									Corporate									Total
		Quarter Ended									Quarter Ended									Quarter Ended
		March 31,			December 31,			March 31,			March 31,			December 31,			March 31,			March 31,			December 31,			March 31,
Dollars in thousands		2022			2021			2021			2022			2021			2021			2022			2021			2021
GAAP operating profit (loss)		$	8,791		$	10,501		$	5,344		$	(13,499)		$	(10,826)		$	(14,664)		$	(4,708)		$	(325)		$	(9,320)
Adjustments:
Amortization of completed technology			1,840			1,773			2,021			—			—			—			1,840			1,773			2,021
Amortization of customer relationships and acquired intangible assets			—			—			—			6,047			6,272			7,356			6,047			6,272			7,356
Restructuring charges			—			—			—			122			173			92			122			173			92
Tariff adjustment			(486)			—			5,497			—			—			—			(486)			—			5,497
Rebranding and transformation costs			—			—			—			1,297			619			—			1,297			619			—
Merger and acquisition costs			—			—			—			5,589			3,719			7,517			5,589			3,719			7,517
Non-GAAP adjusted operating profit (loss)		$	10,145		$	12,274		$	12,862		$	(444)		$	(43)		$	301		$	9,701		$	12,231		$	13,162

 

		Life Sciences Products						Life Sciences Services
		Six Months Ended						Six Months Ended
Dollars in thousands		March 31,			March 31,			March 31,			March 31,
		2022			2021			2022			2021
GAAP operating profit		$	9,208		$	10,878		$	10,084		$	3,572
Adjustments:
Amortization of completed technology			471			553			3,142			3,473
Tariff adjustment			—			—			(486)			5,497
Non-GAAP adjusted operating profit		$	9,679		$	11,431		$	12,740		$	12,542

 

		Total Segments						Corporate						Total
		Six Months Ended						Six Months Ended						Six Months Ended
Dollars in thousands		March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
		2022			2021			2022			2021			2022			2021
GAAP operating profit (loss)		$	19,292		$	14,450		$	(24,325)		$	(23,415)		$	(5,033)		$	(8,965)
Adjustments:
Amortization of completed technology			3,613			4,026			—			—			3,613			4,026
Amortization of customer relationships and acquired intangible assets			—			—			12,319			14,261			12,319			14,261
Restructuring charges			—			—			296			53			296			53
Tariff adjustment			(486)			5,497			—			—			(486)			5,497
Rebranding and transformation costs			—						1,916						1,916			—
Merger and acquisition costs			—			—			9,308			9,708			9,308			9,708
Non-GAAP adjusted operating profit (loss)		$	22,419		$	23,973		$	(486)		$	607		$	21,933		$	24,580

 

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SOURCE Azenta, Inc.

FAQ

What were Azenta's preliminary Q2 2022 revenue figures?

Azenta reported preliminary revenue from continuing operations of $146 million for Q2 2022.

How much did Azenta's Life Sciences Services revenue increase in Q2 2022?

Life Sciences Services revenue increased by 19% year-over-year in Q2 2022.

What is Azenta's EPS for continuing operations in Q2 2022?

The diluted EPS from continuing operations for Azenta in Q2 2022 was ($0.02).

What guidance did Azenta provide for Q3 2022?

Azenta expects Q3 2022 revenue to be in the range of $140 million to $150 million.

What impact did the sale of the Semiconductor Automation business have on Azenta's finances?

The sale resulted in improved liquidity, with a total cash balance of $3.0 billion, but Azenta faces approximately $450 million in pending taxes.