Azenta Inc at Jefferies Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : I guess maybe to kick off, Steve, you recently announced the CEO transition plan after 14-years at Azenta, why is now the right time, and maybe just talk a bit about the transition you've overseen, you know, into a pure-play life science tools company today?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : That's helpful. And I guess shifting over to you, Herman as you've said, you've hit the ground running here, since you started last fall, you start you've been a part of a number of initiatives, your history at much larger companies. You were the CFO of the medical business effect in CR Bard without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2024 / 3:00PM, AZTA.OQ - Azenta Inc at Jefferies Healthcare Conference went back and did that I think it was a $20 billion plus deal. Just talking about how some of your past experiences shaping your role here at Azenta and maybe especially on some of the margin initiatives you laid out the Analyst Day, like site rationalization, portfolio optimization, some of those items?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. Maybe shifting gears over to China, your multiomics business, there has continued to impress. I think it was up mid-10s last quarter, a number of quarters of double digit growth here, this as well that the broader tools ecosystem seem pretty challenging backed up in China. I think you've talked about some demand drivers, share gains, new capacity and things like that. How do we think about the durability of that growth in China and maybe just kind of a state of the union of, what is interesting in China these days?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : I guess maybe one more on China you touched on the geopolitical and you were just saying are two topics that come up a lot or the stimulus and then also biosecurity, both fairly dynamic situations. But how do we think about each of those presenter, they're kind of neutral or could they be positives in terms of two items, people are pretty focused on within China these days?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : And on that US capacity I mean is that would be I mean there's some cost, but is that available now to build that capacity right? That's kind of there to that.

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. Maybe shifting gears over to the medical. You've announced kind of a number of different moves that business more recently discontinuing products, things like that, think would be helpful to just kind of level set folks on the revenue -- the go-forward revenue base for that business and how we should think about, the various margin scenarios you've laid out off that go-forward revenue basis?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : That's helpful. Everyone quick one on the 2Q call you called out a few million in SMS was impacted, I guess, delayed a bit by supply chain. I think you talked about hoping to have that resolved late May early June as we sit here in early June. Any kind of update on that did it work itself out?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. And then I guess, Herman, sticking with you, one question I've got a fair bit is just around the implied 4Q ramp and the step-up in the [3Q] for Q2 and I talked about a bit on the call. But if you just remind us of some of the biggest drivers in seasonality, maybe C&I coming back a bit, what are some of the levers to that and then your visibility and confidence into that 4Q ramp year?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : That's helpful. And maybe just quick on the NGS you talked about. I think 2Q is a bit of a mixed bag here of up North America, still the challenge. Obviously, you guys have talked a lot about the pricing side of it. You just maybe give us an update on what you're seeing on the demand side for NGS? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2024 / 3:00PM, AZTA.OQ - Azenta Inc at Jefferies Healthcare Conference

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. And maybe one C&I, obviously been impacted from kind of the destocking and broader, goes dynamics that we've talked about who noted that March consumable bookings were actually really strong. And in the bookings overall in 2Q were I think the best you've seen in a number of quarters, any update on kind of how things that maybe trended here into April and May? And then I guess, can you remind us of the the lead time of that business is pretty short cycle where those good orders to kind of end the quarter show up pretty quickly here in this quarter?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : And maybe just one more. There is kind of taking a step back. You talk about just comfort that the destock is largely behind us and maybe, where your visibility sits today versus even, six or nine months ago. How that's improved, maybe nature of the conversations with customers, kind of what's giving you maybe a bit more confidence that we're returning to a more normalized demand pattern after, a number of quarters of kind of a bullwhip effect here?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. Maybe shifting gears a bit over to cell and gene therapy. It was obviously a really exciting growth area of funding has dried up a bit. It's coming back, year-to-date, maybe some debates around the duration and how that actually starts to be spent. But just remind us, I think historically cell and gene therapy have been kind of a high-single digit mix, is that still the right zip code?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. I want to touch on broader across, I hear a second, but just in terms of sticking with cell and gene therapy, I mean, in terms of your portfolio today where you're seeing the most success and is there room to kind of drive further penetration across your portfolio into some of these kind of key cell and gene therapy accounts that are scaling out maybe moving to the clinic going commercial, how would you describe the portfolio and the penetration today and maybe where there's still some opportunity going forward there?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. And maybe sticking with that cross-selling opportunity. I think you recently noted, I think $40 million of backlog that was tied to cross-selling synergies. I guess maybe first just talk about where you're seeing the most traction and then, looking ahead where there's still might be some opportunity to drive further cross-selling opportunities across the portfolio? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2024 / 3:00PM, AZTA.OQ - Azenta Inc at Jefferies Healthcare Conference

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Okay. And maybe in the last minute, we have here just to hit on capital allocation quick here. So in a very attractive balance sheet position, even after buying back a lot of stock here. Just talk about capital allocation priorities from here and with the CEO transition, should we think of M&A on pause. And you guys have talked more about tuck-in type deals so? Just what you guys are thinking?

Question: Matt Stanton - Jefferies Financial Group Inc. - Analyst : Super well thanks. We're out of time gentleman. Thanks for joining us toady. I appreciate it. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2024 / 3:00PM, AZTA.OQ - Azenta Inc at Jefferies Healthcare Conference