Bio-Rad Laboratories (BIO) 15 Feb 242023 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Bio-Rad Fourth Quarter and Full Year 2023 Earnings Results Conference Call.

[Operator Instructions]

I would now like to turn the conference over to Edward Chung. Please go ahead.

Thanks, Jenny. thank joining and everyone, afternoon, you us. for Good

on fourth full an President Science Schwartz, year we With on will Vice financial our May, and and the review me Bio-Rad. Andrew for provide Group. Today, Chief XXXX Executive are Last, Simon quarter results Life Chief business Operating trends of call and Officer; the the today key Executive Norman update President and Officer;

we like we our making subject will expectations our are other to that that I are caution Before and goals, future expectations, on future statements based and be would statements and to risks management's begin performance about matters. and forward-looking These events of assumptions everyone review, plans financial uncertainties.

from expectations. goals materially these Our plans, actual may and results differ

forward-looking in place I to not The the today. SEC intend You undue and during the to our detail these in our forward-looking update factors discuss call any on reliance the filings statements, review not risk business. where with statements you made encourage does should company we

our accounting references not financials, under and accepted net income that share to earnings financial defined today include per Finally, including diluted are which generally non-GAAP are will principles. remarks measures

an non-GAAP measures Vice President contained and should review the that, on Andy our Executive the turn global to update Last, provide reconciliation Bio-Rad's of our over comparable Chief GAAP now Investors Officer, results earnings will to these operations. in I With release. the to call Operating

Okay. Many you everybody. Thank for joining thanks, and us. to Ed, good afternoon

biotech earlier of related and the continuation this quarter to China Russia. in largely a the geopolitical of biopharma segments, For expected, trends XXXX as performed and challenges the started reflecting year macroeconomic fourth

and to up Life both Diagnostics. picked nicely QX in revenue However, compared Science

we year the way saw little Although this Science the in budget of fourth as Life business. for quarter of the flush in expected, a

a to We QXXXX budget single with our we QX associated we and global the live During some pleased trends, now operating in down, burn of the in the operational compared from platform. business placements SAP a the And ddPCR Asia Pacific. we In launch prioritize our had on are SAP our Life testing core across with clinical prior diabetes the smoothed growth all challenging flush, capture especially back strong out we growth were to business Asia of we challenges remaining QX, where where operations. diagnostics Pacific, compares due order double-digit in QX particularly in experienced decline strong instance we year of franchise. benefited our go quarter, in Science, to

chain challenges We are year-end past now normalized a with our quarter supply and the backlog. finished more

franchise biopharma. sales our ddPCR had soft and COVID the our flat as growth focus we from when in compared a biotech had XXXX previously with to experiencing been Overall, excluding high

markets maintaining on of positive the impact end in very Continuum remain leading we serve However, market QX expand the we and forward focus year. lower our on we are our looking the this later market as share the to launch

the during platform continue coming and expansion investment year. further assay to application In addition, with we for prioritize the overall on launches

helped diagnostics this are preparation overall the sample of launch demand single-cell include clinical We the Science Life the QX in growth we priority new for mid-single-digit pleased to Further, solution. function finish our several excited Asia and were growth for double-digit us Kemidocco and DDC Blot Pacific a products year, about our quarter. with new platform which as business especially deliver other year-end Western of next-generation which placements,

made We core diabetes controls, the backorders clinical on reducing hard on the worked immunohematology, progress quality with were transferred franchises business, products our up teams for while our our we XXXX, in full to bringing France. and Singapore During the production from and to In reflect demand impacting QX, QX, of manufacturing lower to in [indiscernible] some challenges also of transfer and life and of inventory impacts and China. and France instruments similar continuing clinical Singapore the levels from to high consumption Russia autoimmune, sciences. inventory our remained pleased

We and lower included cost incentive costs, continue reduced accruals. reflecting in to this compensation control employee-related QX exercise and tight

diagnostics XXXX towards anticipate we more demand. for for year business, Looking our clinical a customer normalized

However, we remain cautious Life pace dynamics on of recovery our in the Science and business.

stabilization half broader year we anticipate recovery anticipated the the first sheer biopharma future market. the Overall, improvement prior recovery second uncertainty remains expect half The biopharma China recovery. of We the along bioprocessing pace due to our growth year for biotech biotech usual see of half due a biopharma compares, softness uncertain, than year higher priority decline funding be a improves ongoing in market but the and and second in as business in the with the with the and in for to as in of the a improvements and destocking Life for transition and but company. to XXXX Science year remains China levels

softer year. years. couple inventory than book few process the least order note, still approved by therapeutics last On large X at chromatography related during of throughout off large entered with the a with to novel our working our On mostly we included process XXXX. for the of positive customers customers in chromatography point, one a the latter a elevated resins the of XXXX are FDA

in year, DC the logistics excited for globally the addition, of the which In ongoing Pacific Asia part about are of our towards go-live region Singapore improvements the both supports new and businesses. last we

cost have cost improvements in structure. to the On we front, make continued operating our

in cost see compensation will cost material a XXXX increases, incentive with in we which for However, accruals, employee along step-up meaningful merit create annual a headwinds. will

on Russia, of tightening to our and In closing, ongoing business forward efficiency maintaining core there. market meeting our our priority for challenging see more making platforms. drive we and conditions platforms, continue focus instance on on our to to strategy expect execution our single process investment sanctions in innovation with around investing increasingly global for levels drive our SAP segments gains clinical from demand against also We

the to and now pass you, financial review I'll Thank Norman to you results.

Okay. you, Thank Andy.

and results quarter fourth the year. to like the the of I'd full first, So review

a in fourth Similar a for sales sales the again, of QX prior net were a to result X.X% primarily currency-neutral year-over-year in $XXX.X our So $XXX.X basis. basis million. of biotech end XXXX a XXXX weakness It's decline markets, the of on impacting products. the revenue X.X% million versus decline and primarily on reported quarter of ongoing fourth the decline Life quarter, biopharma the and segment was quarter Science

demand In Science to addition, weak in products Life we experience continue China. for

macroeconomic think initiatives. local the in million COVID-related And sales, currency-neutral basis, a were well currency in in and year revenue, a the environment neutral. to and as and the which in decreased geographic in decreased immaterial the Europe X.X% some result $XX.X was then China COVID-related on both Made quarter prior I of as XXXX. extent, as of Asia. fourth Therefore, core revenue year-over-year flat Americas excludes relatively the sales

of $XXX.X on So XXXX $XXX.X a a QX sales for Life compared million quarter fourth grew in were million which a Science to and on XX.X% of in currency-neutral decline is basis. XXXX, the XX.X% basis reported

Science COVID-related currency-neutral of core for broad-based Excluding Life decline a revenue approximately experienced year-over-year sales XX%.

and finally, sales, mentioned faced decreased chromatography quarter due biopharma macroeconomic the In chromatography XXXX. business addition and quarter, burn-down excluding biotech, neutral. ddPCR, Life when compares the in the XX.X% sales markets China in Science process and related currency-neutral factors, sales conditions to a XX.X% back the difficult challenging QX Andy versus and process excluding revenue, on other soft year during qPCR the Science to Life ago basis COVID decreased underlying the And And currency Group period. and of

the growth product on $XXX reported regions. On from strong for growth currency-neutral we growth Group and Asia. which revenue, of to a back all Science reduction across $XXX.X sales Clinical Diagnostics Clinical year-over-year of was particular of Diagnostics quarter increased driven core year-over-year strength On group This Group by Diagnostics in the from compared sales geographic then sales in basis. were a basis, And a as X.X% Diagnostic basis as million, growth well primarily X a a geographic saw million Conversely, elevated basis, the COVID-related Life QX benefited core revenue excludes on XXXX. X.X% the broad-based X.X%. in orders. Diagnostics Fourth decreased Group. The revenue represents of Clinical diabetes Clinical

was the related XXXX quarter to million XX.X% in or to to and the the volume, QX were SG&A due decline impacts lower goods XX.X% of number to compared year-over-year margin of The gross of lower cost manufacturing mainly inflation QX factors, quarter XX.X% on $X.X XXXX. $XXX.X compares quarter was of gross as in fourth $XXX.X a SG&A sales a was was of or fourth The to of reserves. recorded XXXX. for in acquisitions due XX.X% lower employee-related quarter reported million in million For prior recorded and XXXX. million margin to of including the to $X.X a inventory facility by expenses compared company, offset Amortization QX million in lease And the of of SG&A impairment. GAAP total expense related $X.X in a million for dollar was expenses and partially amortization 'XX. in weaker $X.X versus QX the acquisitions basis

QX both the in $XX.X levels to of and of expenses. million million income XX.X% or million fourth of $XX.X quarter in $XXX.X million employee-related compared or was or of in quarter reflect Fourth of expense $XX.X The development X.X% expense and XXXX. lower QX project lower compared sales XX% was Research to or sales X.X% XXXX. sales sales of operating

are fair in substantially of to equity to line, reported Bio-Rad's Sartorius operating shares ownership results. holdings, the below market the AG related million Looking added security which change of value of income $XXX.X the

in $X.X primarily from of years to in mix the Tax compared interest was year in expense effective equity other tax the earnings. lower result unrealized and for was quarter securities in period the for During rate XX.X% The by quarter, of XXXX fourth were income the for other by of and increased net changes income XX.X% million geographical driven the rate rates same XXXX million both in other interest compared primarily of income gains last $X.X investments. driven XXXX. net a of to resulted

share of is, of the earnings diluted This $XXX.X again, change net Fourth income XXXX. valuation net of compared in $XXX.X largely changes income related to $XX.XX Holdings. QX share in diluted quarter per last million or or million of to was $XX.XX year from reported earnings Sartorius per

So are moving have income. well and non-GAAP items These unique certain non-GAAP atypical release. detailed reconciliation in and as both press a table items on gross other we On in impacted as the excluded the to the operating margins basis, that results.

the in versus fourth looking have QX non-GAAP goods, persistent benefit. of non-GAAP of These quarter. of of fourth quarter XXXX gross cost for the a margin restructuring small million and excluded the XX.X% of amortization intangibles the results $X.X XX.X% So a margin In gross of to we moved XXXX. at for exclusions

acquisition-related $X.X purchased $XXX,XXX XX% margin intangibles of non-GAAP of from $XXX.X was the in in non-GAAP XXXX products below QX value restructuring-related versus in of certain margin line, a costs. and excluded fourth of GAAP holdings in margin in X.X%, equity Non-GAAP adjustments XX.X% approved of the million And of XX.X% in diagnostics as million on items operating Europe Sartorius the and on on operating to $X.X which of result these sum basically have also operating excluded moving Non-GAAP of are a R&D restructuring XX.X% $X.X accumulated previously of $XXX,XXX loan in million operating the the expenses. R&D basis, to an And of quarter non-GAAP and have same a a SG&A, this increase XX.X% we basis and -- in fourth on non-GAAP SG&A a XXXX. we non-GAAP for cumulative venture fee receivable in In XXXX. QX non-GAAP registration million; XXXX basis. amortization basis, expense investments. excluded a on of vitro $XXX,XXX was We've the expenses in loss of quarter the XXXX. the compares quarterly

was compared effective of diluted earnings The by share primarily $X.XX period for and And finally, geographical rate was reserves XX.X% quarter for diluted fourth driven tax XX.X% a to in in of rate the non-GAAP income lower per fourth related per QX XXXX positions. quarter XXXX. in the XXXX mix release $XX.X was the share the The to of same XXXX or tax million of to non-GAAP $XX.X earnings certain compared million of $X.XX for of earnings XXXX. tax or net resolution of

a flat year COVID-related billion, XXXX is the sales in a were on or the basis a about XXXX results. reported the XXXX full sales X.X% So net year-over-year full $X.XXX year On on were full year to currency-neutral $XXX X.X% effectively XXXX a now decreased sales so to which million for excludes [ for billion $X decreased X.X%. Net compared revenue, million compared currency-neutral that COVID-related for as core full $X.XXX -- year in which basis, basis. decline ] XXXX. sales of

of Science the of year-over-year a results Life Group declined year $X.XXX segment. Now Blot. by year-over-year were When of revenue and for the qPCR Sales looking process at XXXX XX% COVID-related decline a sales, by sales currency-neutral basis. on decline core full excluding X.X%. driven majority was products year-over-year Science chromatography, Western billion, Life The currency-neutral

a year Europe declined COVID while basis. a a Clinical sales, core currency-neutral for posted full On X.X% Asia basis, represents Diagnostic which reminder a Science $X.XXX which excludes billion, on and geographic products Life the of modest growth. currency-neutral Sales growth the as in XXXX were Americas revenue,

basis, a offset year-over-year SG&A driven diabetes, million sales, The currency-neutral or XX.X% and by by clinical control cost in mainly sales blood million in costs. our infectious products, year the by was higher and grew SG&A partially COVID-related margin revenue leverage. was decline lease $XXX.X geographic was full regions. by excluding COVID XXXX. in Full lower employee-related diagnostics quality year non-GAAP implementation Asia, company was to When $XXX.X of X.X% fees, core of spend, expense or non-GAAP compared related XX.X% X year-over-year and was to was SAP decline offset compared The legal product sales lower higher growth discretionary typing clinical to inventory margin currency-neutral impairment sales, fixed Overall, reserves driven all XXXX. lower partially On XX.X% a mix, revenue disease across diagnostics, year gross in XX.X% growth core full products. and

Full year reflects of effects of and which X.X% year $XXX.X decline, million of XXXX, mix compares in tax in non-GAAP with and effective sales and rate sales year cost $XXX.X XX.X% or in consistent XX.X% compared revenue our XXXX range the of income operating full million R&D X.X% XX.X% lower to or full versus for was the in the absorption. XXXX fixed was non-GAAP lastly, was XXXX. non-GAAP guidance shifts XX% to And

and the cash was end to tax of sheet. primarily balance short-term moving the at $X.XXX So $X.XXX third was XXXX. change of quarter from at the on $X.XXX ] the cash investments of share and XXXX quarter The billion [ billion XXXX of due in XXXX end and of the at working investments capital payments. the short-term repurchases, third to of and Total compared to billion the timing end

concluded in a Bio-Rad's February maturing $XXX Yesterday, now agreement was $XXX line which provides just liquidity credit XXXX, year. million prior replaces in new million to mention, credit we financial in that of additional new a this maturing facility April enhances flexibility. And this of

Inventory the million the million primarily due level of was quarter slightly to from $XXX.X increased QX end higher in goods. finished a and of prior $XXX.X at to

to normal we of As the X quarters. X inventory we the chain next move from challenges years, anticipate on X to past continue decreasing more supply over to the levels

to of offset XXXX. $XX.X the For capital, increase which compares by the mainly of tax reflects working was activities from of in generated million This net million, quarter $XX in cash changes fourth timing operating payment. XXXX, QX

of the mainly This year million from full was operations reflects capital. XXXX, in in versus $XXX.X working $XXX.X generated cash For XXXX. changes million increase net

buyback share the to quarter, of with Again, the program. still for authorized repurchases further, our an $XXX million program. cost note under our approximately for million continue year. buybacks X,XXX,XXX so a the purchased be you understand have approximately to share we nearly totaled During as year that's shares useful just available And Board share we purchase of for per fourth $XXX full XXX,XXX million. for current price shares we $XXX average optimistic $XXX of stock total or Probably

shares XXX,XXX fourth for XXXX. stock EBITDA a comparison, of we quarter the XX.X%. in of or our of million the Adjusted $XXX for EBITDA $XXX.X about million, XXXX adjusted in was and quarter XXXX was XX.X% As sales fourth purchased of

fourth expenditures Full million year quarter dividend, for And million for $XX.X year $XXX.X $XXX.X million capital million. about fourth $XXX.X adjusted the the and including quarter spend the XXXX. were was XX.X% million full the to was CapEx Net Sartorius $XX.X year. in and depreciation XXXX for amortization and was EBITDA, of full finally, compared or XX.X%

for on So XXXX. non-GAAP guidance moving the to

As XXXX levels Life higher see we year as to Science Andy usual a outlook for transition business, of earlier, our and recovery for steady Diagnostics. growth with uncertainty alluded do than a

P&L muted as Russia. especially we a growth, the have that expense revenue and to point XXX relates overcome XXXX. to that basis in XXX Keep I headwinds continuing And expenses China difficult Given say need to be represents operating to and between will this expansion it's our think geopolitical year. impacting mind employee-related it issues, that we fair headwind margin somewhere in

However, as are our we and cost for positioned we focused on growth improving revenue as returns. structure, leverage remain well margin remain -- we operating

expect This loaded biotech Again, bit I revenue different on is to a think operating the first is Consequently, than particularly be pharma. market in line in in very the second and expected based and the normal revenue year. in certainly to in with first a XXXX the the back-end of recovery half the year, we anticipated of gross quarter, margins recovery year more kind gross usual normalization. do soft and improvements with half

and how revenue currency-neutral growth a X% growth kind expected we revenue currency-neutral growth be currency-neutral X%. be for year-over-year all the to in rolling with be Diagnostics X% preamble, between XXXX estimate we We're Group that guiding revenue X.X% is And see the a So of out. and Science and here's Life year The is to to X.X% group, overall. between X%. between

below was inflationary our working last back cost. from in realized level, the the X% over little quarters elevated of trends improvement backdrop price through year, which overall a the we corporate With at to

year, part out also to Science the manufacturing to December in but $X results. We noncore a price was really through mainly immaterial contract a of group. similar operations annually, sale like the This an achieve level prior call impact revenue a financial other of Life are to of realization contributed is this targeting had of business under million business that We'd acquisition. overall reported million $X our on

XX%. between to recovery Full is to be the range margin gross year first and the below sales is year. projected XX% volume. margin to and anticipated is non-GAAP projected with second and invest margin improved growth half approximately rate We projected the tax improvement the margin with our infrastructure full the be is year strategy. XX%, Gross XX% we non-GAAP in year expected CapEx to gross the million and million year anticipated non-GAAP to $XXX of by year be for XX.X% Full throughout continue half driven be to steady between between to $XXX XX.X% operating our full be multiyear estimate to support as

expected non-GAAP EBITDA, Sartorius between when to divined EBITDA the year dividend, be is and full be and the XX.X% Sartorius And we between adjusted finally, And include announced expected to excluding is reduced XX.X%. XX% recently XX%. the

a platforms I corporate our our SAP little we baseline most our all journey would chain So transitioned And on We for few global the successfully think we constraints, key remarks, we're our for as key progress in to of transformation. diagnostics feel outlook manufacturing Singapore resolved of macro XXXX, -- XXXX. make supply a implementation. realistic bit in a comments facility. We've variables, pandemic. say to accomplishments, important, in the prepared on just continue clear we completed we maybe concluding today's a I spite about transformation, a Bio-Rad's good ongoing have

a of X.X%, life over markets at grown And progress. X Certainly, year. to mention, that we we XXXX which help that I a Life to. might it's forward later do good we number making exciting lot us our back our we over has underlying Science, important think in grown business last compound of I looking feel at Overall, science in pipeline rate the note our mentioned, currency-neutral years, the X%. to think Andy recovering forward products we're including, has as I to have a look solid have think as addition, In look drive I to

prepared remarks, we Operator? open to our concludes questions. That line the now and your will take

Donnelly from first question from Citi. is Patrick Instructions] Your [Operator

margins. Great. Norman, for be guess this I on will you the

here the ramp of how the comp It terms Is is of pretty of like the the half? picking just and margin the the ramp hit year, can first second in it a we you steam throughout talk that year just throughout pieces? half. Maybe here about in ramp just in Singapore of to the moving leverage? hard Just about the the incentive sounds the kind story obviously Is bit about the and volume it base. talk should up think cadence going

Yes.

I ramp lot and sales to of think a it get volumes. sales with think has do most margins leverage see the I with the really we sales. from should We the the

happen? got provide just be then on maybe timing bit And an and of where you just a helpful. few questions Understood. the search, that little can there update we of CFO on Okay. an a stand, update would when could

And candidly, have to Yes. We're really we're a making call. progress. by the hoping good board on earnings next new CFO

right, then next few for months. the All And maybe last Okay. one one.

thinking Just and terms it's guys you are that I X both there. stories the -- know in just about outlook Science how Life maybe on the of Diagnostics, China, different region, X in

in helpful. So yes, seeing kind would what segment us expectations know of currently there for 'XX each let the be and just you're

as kind a when of many signs of of near little term, seems we think, market. see be a a Yes. bit uncertainty, to immediate Not that. I'd I tough it Yes, will say and to recovery

future. days see I foreseeable think growth China I in good double-digit of the that that the in old don't are --

I the funding China Science combined -- a tough seen For environment business, in anticorruption Life our we've the in and affecting of for business. kind impact general, of effect think the the China of

the term. to have of more to pricing products some monitor value-based continue from platforms products that in situation see but that For our our volume the these of do the with that continually continuing kind of some carefully Diagnostics, spread these wondering tenders, short I seen growth, the -- if think or we're to of we specialty steady also kind may higher

Research. Meehan Your next is from Nephron Jack question from

talk I so about to the Science in PCR question backlog you about -- down. Could how the XXXX? And expect Life turn burn some might persist businesses to ask long the and you business. talked script, corner? wanted that how you you Can of to this like ddPCR the kind First saw in start about when about talk

Simon. Yes, this is

we're the think largely 'XX. head I really burn we into backlog through as compares down

the slide answer is see of an the a But business is obviously clean HX and to the issue think the script referred short here We've other pretty impacts now. I HX as got forward. in versus bunch we sitting conditions as burn as going we're backlog contrast. in macro the don't today, we down

Yes. Simon, add The callout meaningful contribution out QX call just where burn against has from was -- a Science to backlog sorry, on, 'XX the Life compares down. the

Got it.

process was Were I the then in versus year your expectations? the expected out quarter there some larger shipments quarter? the about played talked And than lower with starting I Okay. you know there. curious backlog how chrome in

It's Simon again.

called we in enter year at customers through base, think continue the destocking customer order book of customers is we our of anticipating look a that are about shoots like any to going follow-on talking all larger same seen we'll think they're the I all remains tentatively some number the XXXX, who again, we've got seeing script emerge years. with a think through it. certainly previous at level, at something to in are impact that the question out as And persist. starting we're a time, normality. we've lot there encouraging But a be about not to were as see indications saw be guess and going QX return green to we softer we've destocking and we macro our to the data Andy I been are, really there's than seeing conditions in the I I our as

going we'll And second recovery some uncertainty but I that's there's be see -- around to think fair in so to still of out it. the net amount a half, tentatively

Great.

last one. Okay. And then

curious below was color this for any within the guide on year. kind Just items line for the of

their think dividend year? color the there? would call any you Just for announced I that Just anything out be would helpful. on Sartorius

it's Yes, that they our kind understandable We the constraints of baked cut into did that And the have. dividend. guidance. they cash given

Leonard next from is Daniel question Your from UBS.

had XXXX. another phasing question for about I

the more back-end you a more that be mentioned typical? year than You on loaded elaborate loaded. how will back-end that Could

much really like a a think good that something I wider kind spread we think going more XX-XX year, it's to It's of for a of Normally, we're XXXX. when Yes. question. than normal and like see

I think exactly we'll it's I kind think But and the between to the what going second guess half. first anybody's delta a see be. half of it's bigger

Much typically? wider than the X-point spread

closer Yes. than first half towards X and spread points Yes. between Think we're ... second X,

for whether are can the in what launches that. a product Appreciate share and couple seek, year? new Droplet of chromatography, your PCR you And assumptions the growth you DD about, comment Digital these they'll be process and continuum on to the whether talked launched time contribute to

again. Simon, Yes,

accounts think status the of as and destocked. we've destocking these forces account still are that I larger because the are of is are that got going previously, chromatography, our net negative An competing process be I for that think accounts mentioned I to destocking accounts.

that some mentioned. ongoing we've the keep as still got is uncertainty now leaves think as of read I best the [indiscernible] saying, around right we there's that

for end, had the made reasons digital and a For it challenging as have that we a QX that, been well. in challenging mentioned year

new As we good a to very markets, also, growth biopharma some that's coming we're look launches out. where seeing got got we've strong product some of to potential XXXX, the position PCR. recovery And on Again, there. I think been we've degree certainly we've digital existing here, in nice predicated

year, and it, PCR. think we're introductions, the they're biopharma it's I new recovery for way so digital think looking when, I market both at not product the So growth about its and full if, in events,

from McNamara RBC is Conor from question next Your Markets. Capital

about any a of Just of the on consumables? consumable from does growth kind the negative the it on we equipment you or And as But there total the consumables equipment where how was last about a growth? had quarter placements percentage think -- there go? growth is year. tough ddPCR, should can ddPCR here and in Obviously, you comp on talk versus the

Yes.

headwinds. We biopharma there instruments saw and think I'd approximately short again, consumables, say I by answer challenges weighting. equal driven the in both is, with primarily

terms now think we've think markets recover, again, And a overall consumables healthy and we of I be of the in going the that. to we're beneficiaries got instruments. mix as

then buybacks seen there just And got should priority? buybacks. Great. buyback opportunities on Is XXXX? on Okay. capital Or still anything that you've M&A we deployment, you've think obviously, about primarily some up? open still Or is the on for room

with We kind -- acquisitions. kind have we are got no things thinking focus share Yes. tuck-ins, a still complementary continue by the complementary to of for continue opportunities to mentioned, opportunistic to But still of look probably to Board to dollars several authorized in as that hundred the change be we'll our and good business certainly we've million around business repurchases. we

So approach. it's kind combination could be acquisitions, both. of could be could some tuck-in It buybacks, a of be two-pronged

further There time. closing the are will now call remarks. this back the questions no for Edward hand I at to Chung

for you joining today's call. Thank

will at at there. February Citi some to York the Life We you and end the of be New Access Science see Day in Unplug of hope

Bye-bye. appreciate look connecting soon. to your forward always, As and we we interest,

conference you. for Ladies ended. the now and all Thank joining. has gentlemen, you Thank

You disconnect. may all