Agilent (A) 26 Nov 192019 Q4 Earnings call transcript

Good afternoon, and welcome to the Agilent Technologies Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there’ll be a question-and-answer session. [Operator Instructions] Thank you.

And now, I’d like to introduce you to the host for today’s conference, Ankur Dhingra, Vice President of Investor Relations. ahead. go please Sir,

and call to for Mike, and fourth full-year conference fiscal welcome, you, Agilent’s everyone, quarter Thank year XXXX.

Mike Senior CFO. are Bob me McMullen, and President With CEO; McMahon, Agilent’s Vice and President Agilent’s and

Thaysen, Joining in Bob’s of Group; Agilent’s the after Doak, the Agilent’s Markets CrossLab Diagnostics Science Applied Raha, Group; Agilent’s President and President be and Mark comments Life Sam of will Q&A Jacob President and Group. Genomics of

today’s presentation can Bob our discussion the financial supplement release, information You comments will and non-GAAP on investor at Mike and Today’s find to investor.agilent.com. measures. website to press by refer

You References website. core exchange excludes XX GAAP Unless October the comparable revenue as within of Core to will the financial increases financial our all divestitures acquisitions on noted, a reconciliations in references past growth to XX. are the on most basis. find otherwise growth the based impact or rates year-over-year. and is metrics are revenue and currency directly completed of decreases months. and metrics Guidance on

We company update at factors. about company’s valid performance our of These recent The filings other the company. more are obligation no to the are look uncertainties as statements will subject make of statements only risks and a for complete today. financial them. and also Please to risks assumes forward-looking and of SEC the picture

I to over like Mike. turn would now, call And the to

on everyone, us for our thanks, Thanks, joining today. and call Ankur,

and opportunity would become this fast-growing do markets a When in I I had buying growth a by became CEO, approach. We company. we building to knew investing the with

efficient earnings To a capable structure. a of we more a accomplish variety and roader flexible of to of out delivering company resilient set and conditions. more create business a also growth developed cost base this, market model, in strong We

will results to their this know, fourth the the believed company a testament the and to team. full-year share the to easy transforming team I The Agilent a is commitment challenge. quarter determination ability in and but step you and today decades-old I are an up task, not strength of of As Agilent meet

We our expectations. of we QX core X% orders going up compare. into strongly results is X% $X.XX closed fourth against quarter basis revenue outpaced a XXXX have revenue. on fiscal And with our exceeding a XXXX, Agilent’s momentum billion as

EPS quarter of $X.XX margin are for EPS quarter. over expansion of Agilent marks line above our up operating and delivered points basis the QX is fourth is the of high-end up Operating adjusted guidance. our Both last XX% quarter of year. XXth by consecutive revenue the XX.X% XX the margin top team.

expected XX% Our is Group, delivering higher from growth is our Business also X% by top for Group. our Diagnostics than and strong line Agilent growth. CrossLab Genomics led core core

X% with down against Life in Our X% Markets are compare. revenues and line expectations, Applied a growth Sciences

in fast-growing and The expected. expected. and single growth clinical, forecasted continue High and environmental than markets as growth. in low pharma, and in of the with Agilent’s single-digit in buying U.S. digits on building forensics is display strategy regions coming diagnostics markets other declined growth QX. our as to China full Growth is lead stronger

an cell and biopharma we quarter, a closed Both acquisition the earlier our acquisitions the in growing this XXXX. are Agilent of analysis of profitable our is BioTek. team serving acquisition business academic the The research BioTek customers. since part During largest of of year ACEA complements business Agilent. of our launch to BioTek the superb acquisition BioSciences. acquisition new and high-growth, This brings highly excellent

a double-digit more rate. is million business analysis growing cell about revenue, annual now than revenues, in and is Agilent’s $XXX X% company generating of at

Colorado. organic we our new site from growth. to oligo manufacturing invest to recognized We the are Frederick, drive API continuing revenue internally new first in QX, In also

a to grade to build drugs class biopharma business. strategy part GMP high-quality, overall of key customers. our Investing a new site are biopharma is this being at of in The oligos facility by larger produced our developed this

We year. are growth as expecting continued strong coming throughout in volume this we business ramp the

I state-of-the-art and Innovation also to a R&D facility the October, spectroscopy open will Harwell and for a UK Science the new Finally, to at site be spectroscopy Raman hub laser traveled Campus. in Agilent’s incorporate major will The business.

visible and our of on growth. Colorado investing UK investments for focus Our in acquisitions the recent capital and examples relentless these and continued are very

and single results. very environmental revenue, core XXXX and Hey, X% $X.X let’s clinical solid at Regionally, generating markets of growing and the and full-year growth now gears a outside representing year, our billion China. single the pharma, the the followed Europe diagnostics, shift low was U.S. way. look growth. We at U.S. digits. in pace, by forensics set grew for China in fiscal had the and in Asia Strength high led The single-digit in year. the digits mid

is share XX.X% per tariff of earnings XX full-year over is double-digit growth. despite full-year to per a Full-year points share margin The grew of of operating XX% duties. XXXX, earnings $X.XX. another basis up The related year result

a dividends. the Our to ACG investments continue ACG year. stellar for in XX% grew yield

by We evolving core DGG their for year. with customers also needs. and their are the transform is helping delivering growth very results, X% analytical anticipating lab operations strong meeting

sequencing pathology our our our market building API expanding business, capturing further presence oligo next-gen We’re and share business. in in

XX% DGG billion-dollar year, represents now revenue business. and approximately Agilent’s the crossed of During threshold the

growth core basis committed X% share gains. remain a LSAG investing LSAG as future to declined we revenues market faced and some We market for on headwinds.

development product Our full. remains pipeline new

this Conference, systems. spectroscopy offerings, of including new the differentiated XXXXC of During LC-QTOF XXXX several year’s innovative LC/MS instruments. gas number triple-quad LC new groundbreaking introduced the a launch we including introduced the and and family of we year, new a ASMS At products, chromatographs molecular

field to position have in our product and been Agilent team LSAG a head XXXX, we portfolio go-to-customer As from continues of strength. never stronger. operate

capture to are market share. We well-positioned

a a delivery investing of margins, Before earnings growth. deployment call I of value on expanding remind balanced with growth. above The I turn capital while Bob, Agilent per result, to along shareholder with deliver superior the creation to growth, for you the want share over of model: market operating priority

driving this to and a points year tested broader year operating core base model. and delivered In subdued X% uncertainties growth, basis economic double-digit another instrument EPS demand margins We leading we’ve creation, value were new purchases. for a growth XX improved and with more delivered of business built of we Yet, resilient growth. political

deployed We and billion investments. more than in growth-focused M&A capital $X.X

M&A front, creation on hunt synergies. increasingly Agilent opportunities. the pursue in performance On date team’s growth BioTek the to the confident remain of on to ACEA pleased BioSciences. similar I’m the value and we’re very We types with deliver ability and for acquisitions larger-scale of

buying part acquisitions review continue potential building We to strategy. as and of our growth

we’re an exceptionally position years as relevant milestone an us for convinced company. move a I’m we ever, This is XX as the strong for we future. Agilent than celebrate in more as Now XXXX, particularly independent into at

in uncertainties strength. While end-markets as persist we’re from we fiscal start year some XXXX, position of a operating

a and our in behalf shareholders. working delivering Agilent of the the team results and Agilent proud as One will sustain our We record of the year. customers fourth and quarter delivered the results, throughout track built have on I’m very of

I our know come but before, for you’ve best yet our heard me and the say Agilent, believe investors. is I customers this to truly

hand – the forward CFO. new take the to was We here? to [ph] on being to Bob. look slip. call now you questions. I now and will a it that I your the for don’t mean, Bob. have CEO today Bob, call I’ll Freudian a I hand call want you off from to off Thank

up otherwise Thanks, you finish other my revenue metrics. income remarks Mike, today, then and take for with I’ll and financial remarks focus the good my I’ll statement quarter. non-GAAP noted, quarter additional will some afternoon, Unless provide the on results. detail XXXX guidance everyone. key In some first fourth and through and our

As our strong with good indicated, throughout fourth very the were Mike P&L. quarter results execution

revenue, of Reported Currency revenue growth negatively roughly to was a BioTek core acquisitions. revenue partial quarter billion, acquisitions reflecting the of of revenue from impact added X growth X quarter, acquisition points, the impacted in stronger X%. X%. $X.XX to revenue For points while addition earlier the by reflecting was at overall

core largest perspective, from end of quarter, pharma, in a our especially tough impressive year. the market, last market had comparison X% growth an XX% From off

China. strength and regions drive with continue strong biopharma Geographically, business and molecule results. strongest large the Our Americas to grew growth in CrossLab all

in year. Growth X% last market pharma and double continues for This forensics evolving revenue the balanced market regulations, our digits despite was In grew the and speaking environmental pharma X+X growth quarter. the of is very the tough China, Continuing in LSAG against XX% the of in compare grew program, especially opioids. between China and ACG driven be year. the business regarding and by concerning a debate to

clinical revenue was in PD-LX QX, companion diagnostics and a grew expansion businesses. continued Diagnostics led Within and our business our of pathology, strength pathology by highlight. X% key during

tough strength by the last as in growth. government chemical see against Academia were declined end of funding X% still and government offset in though. business. in We instruments energy came Revenue and Decline XX% from compare the growth the X% the remaining environments expected, stable and in academia with CrossLab’s market year.

And to year-over-year finally, the in we due row, encouraged that stable. were quarter about food X% food in the the Despite run with for expectations, market. the China a China declines, revenue declines be consistent rate continues third to

the strong than the China On delivering came X% markets. the growth digits XX% Europe of and compare low pharma, the expectations, came across by and expected strong in growth declining a year. modestly with quarter, stronger a balance very diagnostics Americas groups. growth with in exceeded expected, during rate strength results X% most a markets in our as single geographic last against basis, environmental led in

slightly. digits. Excluding wrapping ex-China food, declined low China was up up, Asia single In

to XX.X%. higher job services at gross has driving than down leverage. company mix strong remember done XXX the ACG. a rest of start-up a was year-over-year, the LSAG, while Now mix of Frederick, to average component, site to is Colorado ACG’s our by fantastic the revenue P&L, lower due turning the was driven fourth margin gross the operating costs basis This and in reporting from quarter It’s ACG margin that, points margin the product business primarily

year. quarter operating In led the ACG’s the for company fact, the margin and

helping so recurring pace. revenues, it’s ACG is a not So drive our at accretive very doing only

up margin of our operating XX.X%, over In terms driven leverage also basis The expense fourth XX of off was capped operating quarter the points strong of year. an operating points, and margin, by XX.X%, management. basis prior increase margin XX expense full-year quarter

versus the the share last $X.XX, higher our $X.XX Now and last XX% at year. quarter wrapping full-year of XX% year mentioned, $X.XX our income as of And than versus Mike in non-GAAP the our earnings top-end up up increased guidance. for EPS came per statement,

financial other some to turning Now metrics.

returned the operating We to in repurchases. and For BioTek acquired we shareholders share $XXX $X.XXX billion million and $XXX via quarter, dividends generated for million cash flow.

quarter, interest costs. future quarter. million $XXX all, conditions of the took very in market early, of our All we and producing active notes refinanced Lastly in advantage senior a

have deployed we moving this before year’s how year. I guidance, capital want Now to next recap to

at BioTek As deployed the billion we growth-oriented this in And the and mentioned plenty allowing billion we end, very share $X.X $X.X year: ACEA our deployment. returns and to and of year, healthy our capital for we shareholders. with for capital deployment $XXX towards more dividends. sheet, M&A year To to ended focus the capacity assets plan we’ve and beginning further million of than driving that balance over a repurchases in

XXXX Now the year, for let’s turn guidance. to full-year with our beginning the non-GAAP guidance financial fiscal

of the For core X.X X.X is growth to points to revenue roughly to X.X%. percentage reported growth impact for representing points to X% $X.XX growth with to $X.XX to range M&A expecting X.X we’re Currency full-year. billion of percentage contributing by X% the full-year, X.X% negatively billion, estimated growth and from of

deliver perspective, a single-digit high Frederick flat LSAG single-digit driven a DGG group NASD expect a The on core by our basis. to and is strength. modest momentum to facility for with recovery we and expected ramping roughly to high ACG low From sustain grow a the throughout year, broad-based the growth, we rate at double-digit business anticipate

a also modest with by And as roughly to largely interest net expect in million income year-over-year enter down we year forecast is be the in expense driven net our and embedded moving the we P&L, debt expense to expense, change line $XX expect we in Now the other position. operating the million leverage. $XX

per year tax our slightly basis this diluted to to expect share above and between growth only year. a throughout on this reflecting and to outstanding XX% by approximately $XXX full-year We X% be million, reported of $X.XX XX% translates in basis. shares flat points repurchases be resulting EPS to essentially rate non-GAAP to All the improve anti-dilutive $X.XX XX to expected and our share, QX to

U.S. will related reduce expect $XXX flow to we of acquisitions. tax tax prior to operating million intangibles transition raising Finally, roughly continuing million tax first our and increases of quarter dividend to our This This announced by with We’ve double-digit benefits a streak $XXX in million. another cash a providing dollar-for-dollar of outflow source certain future. in $XXX includes the approximately transfer and one-time our will operational and of XX%, tax us to also provide shareholders. value the

Now guidance. QX turning into

Lunar revenue billion X.X% we’re QX, fiscal adversely quarter. to of affecting to organic falls reflects of first from X New rate impact growth quarter billion, Year, to and the $X.XXX the first to X.X% anticipate this For into representing of roughly X.X% growth the growth expecting year in lower range of QX this our X.X%. the the timing point. $X.XX We growth in by The reported which core

ramp occur the takes account In addition, the that rate Frederick the site growth year. into will over

growth growth representing to QX in based on share-based the EPS compensation X% are earnings costs that certain are costs First of Quarter quarter. lower the and full-year X%. is XXXX revenue Frederick start-up the than reported be share, to range the in in to expected $X.XX expensed the per $X.XX of first growth, non-GAAP

Now let me the taking our very for call pleased continuing year, opening to Agilent in results are front before on conclude past while of team focus of achieve the was opportunities saying advantage to this the take able questions, full us. by with we

this strong our positioning entered driving business streams. portfolio We results clearly markets momentum. the secular We higher in and are revenue XXXX towards of growth stronger a saw with we and with XXXX and recurring

back Q&A. the that, Ankur, to With for you

the Thank provide if for you, Bob. please you Mike, can instructions Q&A.

from the Cowen. [Operator first Schenkel line Doug from comes Your question of Instructions]

guys…. Hey, good afternoon,

Hey, Doug.

for taking you my thank questions. …and

number, year. maybe missed actually So in I course you fiscal And you revenue around you know a come to $XXX NASD with the if million you XXXX revenue said in have as on what more us can cleanup first the Did might assuming question. gave ramp NASD I over for XXXX? expect that. expected? of just a give detail it But you’re

So I’ll that pass to Bob.

Okay

Bob?

Yes.

generally that very Thanks, Doug. a little XXXX. expecting line FY in Yes, than in better significant in it came growth we’re and

Okay.

So recognizing everything and maybe just number, it but up it, specific qualitatively we don’t a have about talking a level. taking

low-end that notable. I You be at core core NASD, growth since at is of makes XXXX. revenue the setting the would those from this X%. even set lowest guidance think, whatever growth it the the And XXXX rate tailwind guidance – more at least levels And

really sound, seems the the that it what the on level way bar you assumptions pretty quarter just at guys in the setting just Based embed some a and – low-end. did conservative you that like you’re on

scenario conditions So I guess, need specifically, for would you guys be willing to to talk about this would what reality? become to exist

– equipment in what Things something there? actually assuming is worse suggest overall of you’re that terms scenario you for in you assuming for a are would downside like X%, things there X+X And in global get risk What at are China terms where the of capital there’s food? factoring demand?

Yes. Doug. Thanks,

in Let me will on and jump this. Bob then start

So want I one. overthink think we this don’t to

it would of rate And a guide an number growth this heard a right, it’s you growth years. initial – upside. you’re actual as with an is our represent, just guide, in fact, year. that was earlier, of expected for lot if, number heard you words loss initial the as our But So in

So, we’re year. for And… our the with initial position guide the to plan going the for upside room on

build I saying. Yes, Mike to Doug, was on would what say,

we would macro if expecting. of level, I Obviously, happen were kind and guidance. we’re to economic a think environment approach were we a we’d prudent taking be that disappointed something the that at not in

getting anything any We’re that suggest the are market that seeing now would conditions not right worse.

the worse there. again, decline. continue the conditions back market we’re, But would that come we’re suggest to LSAG would at year would that it beginning get and and probably – of would not This

Our to forward. of – we’re we prudent lot believe a but think, that like opportunities for there’s growth here, going I

Okay, that’s super taking helpful. Thanks for questions. my

you, Thank Doug.

comes line of question Peterson from next the Tycho Your JPMorgan. from

on the Question business. thanks. Hey, I’m… molecule small

afternoon. good Hi,

a business. you …hey, slowing molecule talked afternoon. you year, in I’m good talk in about know wondering could pharma I small the on earlier quarter. global if performance the

thinking any and on instruments curious the cycle was side? replacement Just of slowdown the how you’re the pharma about

free one think QX, and to on comments what seemed to to I But out you’re Tycho, as well. in add we jump feel happy Tycho, fact, this called Jacob In in hey, side – the a really level Pharma molecule that and segment. generic in slowing quarter. fourth the seen be of side replacement replacement haven’t or third the any your evidence – We cycle of small in

on really pressure global not rate the you’d in know really the levels small Bob Jacob, as heavily And double-digit biopharma a come to growth We fairly impacting the in in primarily initiative, put anything segment, we And on solid pharma, mentioned market. you seeing in But if had numbers. energy healthy, the as the growth the molecule really small script, in don’t really business. well along X+X has side. is And, I I the add with growth is in as higher think perspective molecule food else side we’re on focused have instrument which a chemical China like there? our

have add you but from the in only as continue also. there Mike, in we molecules. of to mentioned, see increase we small is to environment, to it. that you lot going forward continue – a be and in I small do will the expect less growth we, covered thing think that discovery volume the The maybe QA/QC But the that, there molecules

Okay. And on any assuming instruments, year on for then, next Mike, side? instrument commentary C&E, recovery your the you for are

That’s of conditions. flat, kind No. basically basically flat

we our that in Doug, represent guide. see back the earlier, to and really energy improvement the question, upside to you initial would So if our would some – asked chemical

assuming kind They’ve this been conditions. continued of challenged we’re So year.

But there. upside if FY So to our be continue the XXXX, that would positive we’re it plan. would change they change current no assuming into

Gotcha.

and the chemical resilience with showed the some the business. quarter model think while the when this industry instrument side down – of side, is which in had growth of is, full-year, our we actually I on past modest there really And our aftermarket

Bob, to just ceiling lot other one for Are Can close where remind you then still getting one comments. be on question would And just assuming quick type analysts? as we’re Okay. the you billion-ish deal $X us the a your the M&A framework? obviously

one. to put the deliver would me actually on synergies. clear deals. not said it script, and and our ceiling acquisitions for ability we’re confident on like wasn’t creation increasingly let our larger-scale appetite I no, value that in take No, take on a on that explicitly I If that

to you would leverage, Are about go? on or talk ceiling where you able

Yes. Bob. Go ahead,

to we the Obviously, ending the Yes, there Yes. are to one-time back levered. little up year still committed less than grade. debt of investment if with being deal were right to gives down. of opportunity the paying of a – commitment to roughly kind being at us net lot a kind That lever

Now, financially disciplined to amount remained on returns, do focused we’re we have room fair going again, and of be there. a but

you. Okay. Thank

welcome. You’re

from comes Jefferies. question the next Brandon of line Your from Couillard

thanks. Okay, Good afternoon.

afternoon, Good Brandon.

in to traction to and visibility Mike color labs? perhaps give your of for or that business some of some level speak private with sort the any in early in fiscal China you what us you those XXXX? Bob, could be of food terms for And you’ve getting penciled of might

start or and Jake, I’ll to anything. you Yes, wanted perhaps, Yes. if add then Mike,

in this large X%, part a are We recovery in of a food. year. that ended China seeing the expecting we’re modest headwinds We at that being year roughly next

high, to of become that depending or digits, food single kind on recovery. kind mid digits single China expecting We’re to that mid low of

three the over million that is, we news good the about. per this talked quarters, – we’ve roughly some averaging have been last We quarter $XX

of help that – And the not being – we’ll million to continue the So we’re growth but this next which level in to speculate business that, rate. our be year, will trajectory is of grow. of kind expectation rest China there, at we’re going on run $XXX

have because So we headwind. will – that we won’t

year believe, recovery, just been put China I that three by the Yes, was quarter. I a what last important our points to this really the impacted a And on think this, market. number Bob, it’s we $XX do million quarters, which means at for by it’s mainly define continue of about we flat mean food growth about in X level the running

correct. That’s

fast said, the with okay, last we’ve we and could you it So the flat do math just stays forward, seen for what three would quarters.

You’d this above China. question then it’s think there. that to side, in growth And grow the I we’ve grown high we about year testing what would Jacob, single-digit contract expect your

So…

Yes.

…really, we’re well doing quite there.

here And but quite in, on We Yes. strong But doing from I a the growth with where the not investments we are labs see are that labs. to in clearly, before. different are China. level We base certain some are – certain recently was labs actually well. types now seen than there government – the government even going we’ve and private the

right see we a movements that’s don’t So now. We lot why won’t. of

you full what might relates one-time any And on on tax implications the the Thanks. of follow-up tax Bob. next first it for beyond the Could hit hit, more mechanics expect and year? a a Thanks. And it just on quarter? little the the you kind have to elaborate of for the reclassification, of the tax color in intangibles, terms rate cash in

Yes.

So it opportunity afforded is have that one-time ourselves. we a

transition intangible some already but million to model. require into our acquisitions tax. of property tax pay one going $XXX to moving of liability taxes, going our U.S. existing the It’s creditable We’re to our for us our be in that’s upfront to out

of And so kind one-for-one there. credit effectively it’s a

it’s an incremental So over not cost time. us to

to allows will operational the our likely us related of streamline planning it of generate happen That beyond, Dako acquisition. us some – XXXX part so by it’s been overtime, our as tax it’s this about. what we’ve talking multi-year tax activities, benefits. do to It allows initiatives to and And in putting as that kind well

you. Thank good. Very

question next comes ISI. from Your from line Vijay of Evercore Kumar the

Hey, taking question. And… guys, for thanks my

Vijay. Hey,

PMIs reasonable as forward? trends just trends assuming that XXXX case, are we is bottoming if just saying I a think, out, question. those saw PMIs where your But whatever for I base about why …Mike, PMIs – assumption curious you’re guess, I is, you’re what from a out. I’m continue into still a going bottoming expecting maybe are year. you’re I are, think picture big commentary, next

to the first. orders want I see

strong. earlier So and expected. did, we into you results if question back the level – and overall you quite they why and sitting we different guide, to getting parts Agilent’s of PMIs growth was, – that’s QX really about at in were year, and we XXXX, – level But look which back for went And go see conservatism the than a came in of our the dropping, saw QX customer-buying we’re from last businesses started behavior. back

be okay, we believe XXXX. in there’s So said, different could actually it to point a reason that your environment to

Let’s not guide assuming that.

Let’s just – let’s the see it happen guide and then and business. we’ll appropriately of take up take the orders

Yes.

I is this Bob. think, Vijay,

on best as we’re mean, Just would same to to add we is until it is what And does something saying. rebound, to of view like our tea do good. start Mike the is leaves. And that that. Yes. going would be it the different it’s that, that to I is today. remain what else seeing if trying read kind everyone We like

guide the guys really to guys spend little the leverage. operating Bob, question looks XX – on like that leverage, just did that’s – initiatives for next then, the maybe OpEx basis next little mean, XX, And you bit Rob, modest on a this thoughts contemplating have? impressive guys. maybe a for quick why I I’m that – That on bit? one It performance, you side. is QX maybe is Is points moderates year. leverage year, helpful, what Any growth on more operating

XXXX and of just And in Frederick that we into strongest obviously, in QX. have results that that be a our quarter. QX one is that had didn’t it built strongest to have. costs going full-year the of we the We are our years – is some really of Yes, of

think pretty we about earnings a good side an to this drive But to continue manage and expenses growth the to lot double-digit demonstrated to margin leverage there. And continue ability get I we operating So operating leverage. year of feel that. on our drive we’ve

think, that going do you I confident we’ll that forward. should So feel to continue

guys. Thanks,

You’re welcome.

of question from next Wolfe comes Beuchaw Your the Research. from line Steve

Hi, the here. thanks good afternoon, for time and

Hi, Steve.

on I tie Japan you in like you that remarks. than in the particular A if for believe faster quarter prepared grew, wonder orders knowing few there little again. if any time was said here, made that maybe Japan? wonder thanks some in tax elaborate talk if you you revenue. what Mike, acceleration? extent, to to Mike, about might are the point a up. I’d When your bit things where you’re mean, I Hi, actually incentives I driver And first, a I there region, seeing a could

quarter. position, some of want amount audience around backlog the a nuances know doing let for in let QX We the but for and But a – in the given the ended of Lunar audience was year order – We the that. Year to don’t orders strong that. to like and activity to Thanks it Thanks. we the really important thought you New on such, comment plan we really don’t I typically view typically that guide the give quarter. the exceeding the of the revenue

an Americas, cell in to was revenues end in in terms say, orders strong the the results in the I’d similar that ACG, strength And strengthen you quarter analysis. very saw, which the quarter in from DGG, was very market, of pharma

side the environmental really put then continues numbers and of off great – double-digit compares. up So to

the and think areas script. pattern in strength order was of I saw that I book terms in QX similar of So on my that commented very side the we revenue

Yes. to I’m going was I thing be… say, The only just to going

…built new.

your question end did specifically Japan, year. to build not Steve, there, the at any that fiscal the to of on was one-time more we Yes. see

quarter fiscal timeframe. across actually that that, Our was

broad-based which talking Mike that of Japan, to the just kind speaks in growth was normal saw we actually about. strength So

the Okay, to give number to And minute a one you Thanks, on it capacity NASD. guess capacity But tie – revenues help. the two want running model. whether might great. think the just right say, then helpful. closer it I’ll XXXX. actually, with relates and specific or on contribution all I we close XXXX, I booked then up let’s it know for XXXX it’s fiscal very a there getting that the Very what you just, when And up again, you are to incremental quick points be location see could tie to how spend to don’t there? you for on up? might Frederick as

been you’ve with think I questions Bob, joining the Sam. same in

So…

yes. Yes, yes,

So you both and want I to…

don’t Yes. it. start I Why

jump I’ll …and in.

earlier, And million $XXX mentioned, we And strong about felt kind ramping year. modeled up Many capacity as so very And of in be very the of We is million. the kind talked we upon we there the have and question had year. the …from would million up as ended the go slightly the above $XX the we of ballpark. was up, number $XXX the Q&A, forth. course I in the of good growth. about ramp before, had over a how ended folks really trials in dependent and that clinical where that’s

maybe so, about talk obviously, Sam, of kind very but have some that it turn just the some the positive dynamics, things over recently. And to happened of in market to I’ll

demand grow for been really some might laid Steve, Yes, already there business. ongoing you Bob, ability to in reaffirmed are what’s in We And announcements our continue just to the NASD part that recently, support you? have an our groundwork. the the customers. of capability seen you’ve be and you, important capacity the how market is I NASD growing think just about And there. the to have excited they plan, our you Boulder, remind

I already really, you a to Bob, So lot don’t what have to add said.

We the and year running… expect exit we the you’re by time

into the up we’re think, not fair fill to challenges I say, running it’s site. to

right. That’s

at it just that. of we’ll leave mean, kind I

Yes.

question comes UBS. the Brennan from line Dan next Your from of

Hey, Dan.

Hey, Dan.

maybe how of in do And China, pharma generics what’s maybe China, quarter? what mind. generic there? just in digits China. spike Mike, you XXXX double XXXX generics kind out you But And grew if the don’t said in versus of the just achieved could you there? assumed did kind in on specifically you with in issue the quarter So,

the Yes. whole How about in that if I that of I me, used small segment, double-digit X+X for word excuse segment it was molecule, up think us. whole

are space Yes. the we of the have X+X leader we also out mentioned, I many that we Mike as those certainly announced, mean, access winners were market around and to that after and first see customers there. we in by

market in activities That X+X course, generally, quite feel So those more space. in have we, would from good speaking, that a But be predictability that also. we of demand more that now. in we or customers

think actually played And the to release I initial tendering had Dan, and so we to and the already for announcements good market and had the saw thought done return QX, we we had is happen then were into saw Yes. were the during we process with would accounts, as think as actually Once a XXXX. – thought pause the preexisting we out this customers. QX the move growth once started, in year. that quarter. those way and relationship us we momentum would we it that we the with were those announced whole – Then see it us is we in in winners strong over-indexed

Yes.

Dan, think Bob. I this is

on Jake Just and saying. to were Mike what build

really is kind the the in is seen volumes consumables we’ve keep notion but the customers. higher lab that of to what software the think I of ability only and up instrumentation, with the and time our associated provide resonating quality, to higher not our with

LSAG think this is across a a and the both true, I business the think is point competitive a this, the we differentiator us. for and proof ACG so is combination And what of business

are question, assume maybe – then Because is the speak what guideposts today? demand And what you level Great. latent we the the think instrument interest C&E, be new I the from for way of towards the instrument Thank And maybe demand some to to see the maybe like Can that. there I know, larger good two when back platforms you I of instruments. has think to that pickup? just discussed and Intuvo outlook could Bob is here kind conservatively? I the on think, me, kind from instruments, flat about you for Mike, Tycho’s the excuse then maybe

Yes.

already we’re In fact, that. seeing

to it’s it’s into a his So GCs ramp – fact, with actually And last had ramp the dashboard, we XXXX volume Jacob week the the and being new in knew, on when results, you dig are internal order review revenue the to head details and on it actually – our green the of he forecast. XXXX volume. shows on book just

clear get in same but So And, a proposition a you recently, to you come with portfolio, customers it’s with productivity can parts out you little to demand. capital chemical where I some seeing tighter, could But the that bit the other the have out shows been set aren’t offerings, if a drives even order. like a is so think the environment, customers know when Jacob, market And already you’ve you’d else new happening. anything to add that you energy then this value type marketplaces we of the of of instrument that?

Yes, absolutely.

highest with as the to see we it know, – we with but also of smart the performance about customer with ramp XX is we muted in a highest have that, lot the of continue strong But a do and what really performance intelligence. in series there like base. even you resonate environment, customer a it market, the though, really now see, instruments that call quality we think do is a is interest And we and the the that lot volume. I really

what with it’s So maintenance doing actually predictive knows instrument and put can in. it

that put called get we access be what’s predictive in smart fact, their get are can overview they can excited customers something about that’s expectations. actually now over In their and so really alerts they happening that instruments, an labs to out

well. And ongoing also for creates stream us revenue it as an

Absolutely.

and Thanks a Excellent. Great. lot congrats.

Thank you.

America. comes next from Your Derik of de from Bruin question Bank

good Hi, afternoon.

Good Derik. afternoon,

Derik. Hi,

Hey.

was installed on How So about base actually, the I estimate the can how that – with cycle much upgrade. GC to much few question thinking over years. follow about and last the the wanted upgraded you

very a big installed got you’ve platform GC Now globally.

we where terms it in again? Just picks the of are cycles curious in once up

to I think, question. answer hand. this He’d raising Jacob love his is

So…

Yes.

that look per market we cycle, at refresh. into when do speaking, our of XX% we see generally approximately is – the have year refresh We looking

that there instruments means also long quite that a is So out time. for our

are We we believe we overall cycle. that. been we do are middle actually that – a refresh with see conditions. market challenged looking of into actively the the It has We in

coming refresh we see when we would turn acceleration in an starting do back that market that are the PMI believe when actually is to that to the So cycle.

I think a it’s replacement fair to say to Jacob, there’s always, will, if on. going you

somewhat think see the the high of would improve. how of would – replaced. environment of assuming the aging an been I to has base, And perhaps acceleration market installed we much Yes. rate, replacement to levels fairly Just in point which actually continue

early Mike range Hey, parse mid is the Yes. we if really recall, the high-end. talking dark had mid the think that much if what pertinent it’s at Derik, about volume talking you offering the launch both while ramp excited compelling our to I price range, out. being where the kind mid still And days. would the we thing of a high-end about we potential to But them not other is range. as as and value have really at I to one you was at was when and the probably the – here, ramp the penetration green And Mike about did say green. Jake were volume, or a business is mid for

good a I is Which thing, think.

was thing. Which good a

that a going so, to is once business how just is to come to be going snap less latent you grown new little be that in V-shaped can than the guess, – bit business? some organizations to think And I in up, China past rebound starts about mean, it the had or the that – should market? again, is curve since market or food I there going there back to given a pick we be demand is we

Yes.

double-digit I year. this think saw we won’t see the type declines we of

number level. the up to the samples The long-term has volume money be actual the don’t of central run the Jacob government going on at expect that’s double-digit. situation. We down As mentioned been is side, sharply being

mean, a now of level just for It’s saying X% is to it’s double-digit itself mid last internal the three to kind toward won’t this right that at being XXXX, be probably to to this growth said, the So X% be be is single-digit be. least China for going for grower. quarters. again, decade. that going this That seen view business is could about where and past is the we’ve flat our going – growth with the rate we’re kind of seen I market It the is

we talking the really food the we’re is, being XXXX. – in see you That experienced a double-digit the modest we just said, declines talk China why about business. won’t in on recovery lapping That’s that when about compare these from food

One cell biologist you’ve final admittedly, question. cell space I’m I’m And by of done a acquisitions a a I in biologist. recently. biology mean, training, the molecular lot

how you help you you’re of understand these terms what So me together? put offering all can in that’s pieces novel

a hasn’t customers do of understanding drive those here. of biology just a to along to are you. portfolio need better there like get brought to And that And opportunity just sort into before? broader that of what been you market? to bringing market lines, I’m Thank molecular continue the like you trying sort to

to happy do Derik. Yes, that,

I here. that and he make So some with to want you share deep business, Jacob and initial is things this comments some ourselves of knee can really into differentiate the

really more But some have that in we nobody good much differentiated got really we I the scale of with formal with unique the technology We more first first So, think point started to was Seahorse to needed Bioscience. journey novel, also a had. offering that be that a this felt with down we acquisition felt space.

selective and types of very And the acquisition differentiated. think got also we BioTek, recent of of the the Biosciences the ACEA the things? profile the we’ve the we’re I of portfolio, you some in the the we really After why at, terms something of we’ve about look so think acquisition $XXX companies million-plus, and about scale. teams, doing especially other what don’t Jacob, And workflows it got talk that we’re

absolutely. Yes,

in I dynamics that two what So analysis on. certainly going excited I’m is about our the space. cell opportunity And think

the speaking, that also. cell of lot with immune-oncology interest all, play the that from And out perspective, space And ACEA And we in right cell that imaging technologies providing immunology, are recent that the cells. then, both a the the really those the first now and course, allow BioTek, measuring in technologies. between the activity of analysis, lots an Seahorse, analysis of for generally life [indiscernible] life the of in we’re of rise it there’s the First in also that requires but now. technologies

very very a BioTek of have portfolio, on we and their while But understanding broad imaging including own, So are where seahorse informatics basically we differentiated the Technologies deeper platform that very together many from have insight cell technologies. really look do you at excited settings, first all, where provide in nobody one bring differentiate multi not ACEA much the is, market. in and them else techniques different on use workflow based the can can to some angles

So that’s think differentiate competition. versus we where that I really

the integrating had data team very they haven’t integrated – CRS didn’t of we value give Derik, one was actually differentiated the a between really to we have things, us And and example, and and the for had to customers that the at we already result. incremental And have proof been working, to had, which on prior had was acquisition. working business and really that team saw systems was, a important software, the them we willing were to BioTek together been based instrumentation looked really they really workflows these business customers, want independent to was as and points

Piper from next comes Bill Your Jaffray. Quirk question from

afternoon, Good thanks. everybody. Great,

Hey, Bill.

currently touched both several order in business, different of as well assumptions Thanks. current any seeing have already. in wall we your First Are question Bob, can talk maybe is But times XXXX? guys what than Mike to terms book? little and as they geographies you China about concerning other bit a on you’re

Do take you to that, Bob? want

Yes, yes. that’s No, Bill. great a question,

markets. various So the about let kind of me kind thinking of walk you through how we’re

in kind growth. So kind would the forward, growth. kind China growth single-digit with the that pretty kind out. low we’ve single-digit Europe, going high lead of would being rest that of continue of mid the year of seen kind low with of to of we probably play excluding expect And pace Americas in Asia, consistent single-digit to how this

low of mid, that’s how China. kind about And And to would be China yes. thinking so we’re

Okay.

you And can that to made elaborate Mike, seeing just on you earlier that? broadly comment you’re tighter capital, about then, an it. talk how about Got

– their was, PMIs tighter there’s when have even Oh, are to conditions line, helps comment saw their well still you my I was what with bottom results. related XXXX, and their that solution that think saw really this when scientific as which them invest we comment is lower to throughout capital, that productivity, customers with as willing in a year, we

So getting more capital what when I’m tight. even is saying business, is, there’s a to forward path

Okay.

of sort it find product, it? of really if So you’re you can do not there’s to then lack have suggesting you right the obviously some that has with, availability,

correct. Yes,

absolutely. Yes,

Okay, Thank you. got it.

Knight next line Your question Paul Janney Montgomery. from comes from of the

you Could about… talk Mike. Hey,

Paul. Hi,

guess, specifically …the of biopharma, large business a a to think would would your color? I be Thank in is what today? portion position the good you – And you where be, molecule do that you. like

to results, been again, Agilent several – over the having as Bob kind story happy have we pharma we’ve strong Yes, do for of Paul. has so, last mentioned, years. quarter. And this This consistent been

of During of that portion biopharma molecule period large our portion, that we’ve time, double-digit. our been business consistently growing

pharma I think, maybe a about years was business. probably couple our XX% ago of

new area. think shrinking, through Now not investing been has it’s up to platforms, the either we acquisitions this obviously heavily, instrument in other of will because continue. probably on rate north because side marked very we it’s It’s XX% some and been think that we’ve

specific the expect while would I every of our you’re the part I a we business a to of don’t higher in biopharma. start in coming you So talking mind, – percentage through going years, time have see

year, again fact, our when out biopharma talk specifically entirety we’ll more this to we about of the conference – probably come at business. the In

I dropped a lot about some NASD analysis. of cell today comments and

being just and of about biopharma in associated often us think more but lot the business So a comes LC to the a lot of story. into there’s stuff into ultimately market. We end lot a LCMS, biopharma with

was the What do Okay. did side, the And in U.S. it market quarter? on going was see soft. specifically you in the academic on

this, see strength it growth was last really as year, worth best was had of we honestly, the calling. about about last over business we into the it’s And can dug just XX% We I year. think probably

So is funding and stable changing see very and to environment really that nothing really in continue solid environment.

with bit really could a I Sometimes really there’s all that seasonality them. that’s think business, but we saw

strong of one is lumpy a can be and kind so smaller it had business businesses, that mean, very of and I and right. forth our QX. That’s

Okay. Thank you.

of the from Leerink. Souda Your from line question comes SVB Puneet next

the Mike, question. for Hi, thanks

Hi, Puneet.

in this growth be appears CrossLab. another of to quarter So

– three So And I there years. longer-term? about your wondering X% what the mean, for continues to be last the consistently confidence it’s strength now, growth there. What’s

similar in flat we for well, the the remarks, longer-term instruments instrumentation expect flat and of do – you is continue service forward pointed that to with the so your going being as consumables and expectation here And continue year, will CrossLab’s being to expect some into to out grow? and knowing should we LSAG despite should contracts

this we we this anticipate we to And I’m couple – lab think we provide to of on hey, changing here every new to would X% it success ads happen comment new the years of almost really recall, end? you real what’s help strategy say, had set going with going ago. when’s to can or I that and really a is print, question of have on X% We the going getting and what’s in I when and capabilities. them it’s a is services architect not And to results. an happy going story, customer year addition needs think to you on need this. and a the end. economics scientific the This

new it growth through So today, be. script, side as this hope can which ACG, the instrument we in model came really strong strong said, demonstrated I irrespective and business think as in have have like new we of in I we this not we’d it is whether the was this year, our – or to where business call

we ability for next we’re guide said, continue with our Bob growth. really year, high what and kind in The what we’re services resonating this we have So, confident is the of customers. single-digit as proposition offer to quite

our streams the little team our Mark’s of commenting And a a acquisitions. heard, portfolio Jacob’s instrument organic but into of side. some the team and goes continuing growth, on that platforms, consumer also more develop new to Jacob around services story the of on to both leads to side, You revenue work between add bit through set capabilities been it’s on a on new which

continue our a also really high differently So we’re how ability tied really growth enabling single-digit on I in think quite confident this we’re to about business rate digital perspective. to

and where to going this what we’re go our that about through coming confident it’s in is build – future. hope the business I we highly So

Yes.

Bob. I this think, Puneet, is hey,

Okay.

about …just this. is, we’re talking thing other one

just at the are got rates, of number a you looked If attach programs we’ve increased rates. driving that attach

We this continue have instruments are value… and we’ve more as a actually room seeing lot to the I actually think Mark we’re is one higher for offered we we of that have seen grow thing have placing think actually, year to and more that team there. And services – we the solutions,

Yes.

...tied to the service offerings.

box create on So to able value we’re able more per basis, given a portfolio actually that to being the been we’ve derive.

so there’s some smart value actually a is component. opportunity addition, service So actually but creating talked we’re more But alerts and forth, lot this sold of intelligence an Jacob and building of in. in the increasing about the when instrument we’re there.

if for contribution thanks. Dako, provided the could know on if I elaborate expectation what’s Okay, don’t And you on that the I and your could check breaking there quarter? you XXXX? that you’re there

Yes.

pathology gaining doing market though share in well. talked didn’t high and business specific if But me. has from NASD. growing my of lot number growth today’s saw group it’s for we’ve about largest we on got think I a rate provide the is business comments, we in that and call focused And a Pathology you DGG. single-digit in been a the

question Okay. I little And the on, of the years, couple pulling When back level. if we in at a last could last bit squeeze higher Mike. look

you number those. about had from benefit the launches. And Intuvo, time a this would XXXX launches, of In be instrument series, a Ultivo, seeing would terms be of we

looking those more the sort in should that are a longer-term And strong give give challenging to and moment there us, end the a And market? sort that into or instruments is traction sort of if it’s framework? the outlook us here of any we is the dynamics view think you and continue just about So China, gain should message a of into instrumentation? you be the that in anything and to Thank instrument the could Agilent markets – how that in just you. government take in of terms we new

has myself, stronger. better product is Thanks, never said been portfolio which Puneet. couldn’t our it have I

cadence liquid spectroscopy, chromatography, GCMS, products, have whether We of a gas just chromatography, continues. continuing be molecular it’d had the story LCMS,

to able that if that LSAG been results, invest. there it’s described. we’ve fact to of some conditions you’ve softness all any And in relative the continue the expectations So market has to environment been been

share, competitors to some well their turn my these think our some when where team, We know, back start we a back we think cycles seen we’re we’re reins back in end of – well past. have invested to as field to of before for I are of pulling some these growth. as capturing bit, in to We’ve positioned markets the

and it. then – about the is a the think script indication which I I my comment made of product was in an full, pipeline what So being that

projects. other have We

So we’re decade, disappear going to instruments not introduce going bunch of cadence a a to new upgrades. you’re for of products, then and have a continuing half products,

humming now. feel NPI we process right our is like So really

of question last from Your Jack comes line the Barclays. Meehan from

Thank you. Good afternoon.

Jack. Hi,

of was and looking point growth of at to I also When the elaborate any about how going? But can’t contribution? point acquisition And the growth the than I was I BioTek I believe I the for, pacing acquired there the the better a is first quarter in on fourth can ask I quarter, far you what integration the looking there? so wanted look was movement this got the the in Hey, of a incremental for of call. revenue is about maybe was terms early shy

Yes.

So…

the to then the last I’ll and for I’ll turn over one it integration piece. take Jacob

had better revenue. of quarter. than in $XX million to worth was $XX yes, It simple million we So – terms, better we the – talked it that in slightly about was

moves Going core. into the acquisition Biosciences QX, ACEA into

core of M&A So were as BioTek the part that’s shows up a both in looks ACEA It and why it QX, our little growth. In lower. number.

on And so… and had the weeks days the early few – a team just we the script, to a we’ve in mentioned Jacob, how comments. as few we’re meeting want field pleased my big BioTek in with – just We add ago, very maybe are I with

exactly. Yes,

the been think so couldn’t far. better integration have I

time about I well both the getting what that on on of culture. learning course, think team using, they BioTek a with be perspective, they us from learning, to we spend board and and but are the excited we’re continue cultural very really also from fit time spending processes Agilent how we’re we

to cell analysis excited. integrate of over momentum we’re I’m them. Obviously, So to – and in lot business. but a – going I’m the very continuing next year, But the combined see

Yes.

going that expectations to Our is business double-digit. is grow

Yes.

Okay, thank you. And just hoping getting mark-to-market… then I to wrap up was

please. moment open. your line is Jack Meehan, One

for myself second. was thank talking Okay, I to a you.

you think of this give I us if Lasergen, expecting was could the the I first on hoping placements follow-up a year Analyst Just you’re in mark-to-market Day. at second-half last

is how there? progress Just going the

Yes.

I not been Sam, the for we’ve technically, pleased call we’re progress with So ready the quite out think date intro really RUO yet? and to unit

Mike. right, That’s

making the of on terms we’re are good our roadmap launch date technical ready technology. And to the are on development we progress executing not and We are pushing just specifications in share that yet. specifics

would I Jack, say, this is Bob.

comprehend the in doesn’t any even material back there. guidance revenue revenue XXXX. Our in was And original guidance, there no

Jack? Okay,

Thank Yep. you, guys.

the our presenters. over back will at time. to question this call I was that turn the And last

Thanks. wrap up With that, everyone. call. you, Thank we right. today’s will All

this gentlemen, concludes Thank and Ladies participating. for call. today’s you conference

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