Brooks Automation Inc at Stephens Investment Conference (Virtual) Transcript

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

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Sure. Thanks for that, Lindon. Maybe starting out with a higher level question. I think something kind of topical given you've been Azenta for day 3 now, I guess. At your Investor Day, your new Chief Commercial Officer outlined some updates to Azenta's go-to-market plans, does include having a more unified approach under a single brand, which I think you mentioned. But can you just talk about some of these changes and maybe how much kind of low-hanging fruit is there to realize synergies across the Life Sciences business as a whole as you move forward as a stand-alone life sciences company?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : That's really good. Maybe kind of following up and thinking about synergies across the segments and maybe some more discrete items. Can you just talk about the synergies between GENEWIZ and SRS since they're under the Life Sciences services business together? And then just would also be curious just to talk about SRS and the freezer business, which used to be kind of together, and I think we think of SRS and GENEWIZ now, but there's still a lot of synergies between selling freezers and selling storage or services.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. On SRS maybe, you've had some notable wins recently and I think for some large pharma companies and I think some pretty chunky wins. As we think about growth in SRS, and I know it's within services, and so maybe you're not going to call it out specifically. But as we think about the growth of that business, should we think about that as largely being driven by increased volumes? And I think we used to talk a lot more maybe about kind of more cross-selling opportunities and more revenue per sample. Is that still -- opportunity still very much in front of you?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Those recent wins you just mentioned, it sounds like those are largely in front of you.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Okay. Yes. Got you. So you have some decent visibility you've got mapped in. Okay. On GENEWIZ, I think there's a lot of questions from investors about outsourcing, sequencing and synthesis, but something you talked about at your Investor Day is some of these novel offerings you have. I think AAV ITR sequencing is one of those things. Hopefully, we don't have to get into what that actually -- the mechanics of that because it's well over my head, but -- and I think you've also mentioned, I think, on your last call, maybe RNA sequencing innovation. So I'm kind of curious, as we think about the GENEWIZ revenue stream, what percentage of those revenues, or how much of that business is from some sort of more proprietary offerings versus maybe more standard offerings? And how important are those differentiated offerings for maybe selling the broader GENEWIZ service to customers?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. So we've been talking about the services business. You said 18% to 22%.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : I think consolidated company, you talked about 16% to 20% organic growth annually over the next 3 years -- or CAGR, I guess, I should say. I think we talked about the growth on the services side, but the 12% to 16% growth in Life Science products, I think that was certainly better than I expected. So can you just talk about what's driving that? And how much of that is related to the cryo freezer business?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Maybe just one kind of here and now question on the Life Science products business. I think your 1Q guidance, at least in our model, seems to apply that like the Life Science products are maybe kind of flat to down sequentially. Can you just walk through the moving pieces here? And then any puts and takes as we think about the balance of the year in that segment?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Okay. Got it. That's helpful. And then we've talked cryo, and you talked about the importance of the B3 for the cell and gene therapy end market. So maybe the bigger picture question on the cell and gene therapy market, just talk about the capabilities you have in your portfolio today to serve. And I think we've touched on some of them, but maybe just to get it all in one place. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2021 / 7:00PM, AZTA.OQ - Brooks Automation Inc at Stephens Investment Conference (Virtual)

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then just, I guess, following up on that, can you just talk about percentage of your revenues today from the cell and gene therapy end market and where that could maybe go the next couple of years organically? And then we'll get to inorganic at some point.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Cell and gene therapy. Sorry. Yes.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. Got it. Just on the semiconductor close. Can you just remind us the timing of that? And what's still -- I'm sure there's a lot of work to be done. What -- but anything we need to be paying attention to in terms of getting it closed?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. Which leads to the $2.5 billion question. What are you going to buy, right? I think at your Investor Day, you mentioned expanding into adjacencies from GENEWIZ, it seemed to me, including maybe adding cell and gene therapy capabilities. Can you just expand on kind of the vision for that cash?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : We've got a couple of minutes left. I'll just check and see if there's any questions. If not, I've got a couple more. All right. I've got a couple more. Margins, just a couple of quick ones. Just first, I think there's some incremental SG&A you had to absorb to stand up the 2 companies on their own. I think there's some other moving pieces there. But in terms of the kind of headcount you needed to add there, have you largely completed that? Or is there any more coming on that?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then just last, kind of on the 2024, 2025 outlook, the 3-year outlook.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : That's what I'm trying to look -- 2024. You talked -- just on the gross margin side, I think both segments, you kind of guided flat, 200 bps. Can you just talk about the puts and takes on the gross margin side for both segments? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2021 / 7:00PM, AZTA.OQ - Brooks Automation Inc at Stephens Investment Conference (Virtual)

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Well, Lindon, congratulations on a lot accomplished since the last time you were in Nashville, at this conference, at least. So thanks for coming. We very much appreciate it. And thanks, everybody, for joining.