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

Rhea-AI Summary

Azenta, Inc. (Nasdaq: AZTA) reported Q4'23 revenue growth of 25% year over year and 2% on an organic basis. Fiscal year 2023 revenue grew by 20%, with organic growth down 1%. Positive free cash flow was generated for the second consecutive quarter. Fiscal 2024 expects 5-8% organic revenue growth and an additional $500 million in share repurchases.

Positive

• Strong Q4'23 and FY'23 revenue growth
• Positive free cash flow for two consecutive quarters
• Commitment to additional $500 million in share repurchases in Fiscal 2024

Negative

• None.

• 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 Webcast
Azenta 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 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. 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 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 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
ir@azenta.com

Sherry Dinsmore
sherry.dinsmore@azenta.com

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 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
		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)	%

 

 

 

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SOURCE Azenta

FAQ

What was Azenta, Inc.'s Q4'23 revenue growth?

Azenta, Inc.'s Q4'23 revenue grew by 25% year over year and 2% on an organic basis.

What is the expected organic revenue growth for Fiscal 2024?

Fiscal 2024 expects 5-8% organic revenue growth.

Is Azenta, Inc. committed to any share repurchases in Fiscal 2024?

Yes, Azenta, Inc. is committing to an additional $500 million in share repurchases in Fiscal 2024.