Hologic (HOLX) 28 Jan 212021 Q1 Earnings call transcript

Good afternoon, and welcome to Hologic's First Quarter Fiscal 2021 Earnings Conference Call. My name is Edwardo, and I am your operator for today's call. Today's conference call is being recorded. [Operator Instructions]. I would now like to introduce Mike Watts, Vice President of Investor Relations and Corporate Communications to begin the call.

Edwardo. you, Thank thanks fiscal and us Hologic’s for Good earnings for call. quarter XXXX first afternoon joining With are Financial CEO, and me President Karleen Chairman, today Oberton, Steve MacMillan, our Chief Officer. Company’s the and some Steve and question-and-answer today. remarks, we’ll have session prepared Karleen a then have both

first available on section release the is our website. press quarter investors Our now of

we also our remarks prepared them. We to our deliver will post website shortly after

this XX. of replay call a archived February will Finally, through be

this our may certain we will begin, unknown we to in like These during implied. we include Harbor those involve be the materially in call Before filings results GAAP be Such in will during statement statements the Safe inform release. our found you be forward-looking. or differ SEC. to certain our A statements this reconciliation risks make that those included earnings and cause measures. Also I’d known to expressed factors non-GAAP and can from financial call referenced that’s with discussing and uncertainties actual in that earnings release,

of acquired organic businesses, we well as the organic revenue and business. excluding revenue, currency Blood as non-GAAP is revenue One define constant Cynosure the as and divested measures Acessa these Screening

and rates will discuss on any changes otherwise percentage currency, Finally, we noted. will in unless a revenue year-over-year constant be expressed basis, growth be

Now I’d MacMillan, like to turn CEO. the Steve call over Hologic’s to

everyone. afternoon and Mike, you, good Thank

XXXX. pleased financial first our results of discuss We fiscal to the are for quarter

continued with Health COVID-XX. start very making in Breast States, to delivered to by major off the are incredible returning Asia-Pacific. year and our division against and Surgical strengthen, strong Once And massive a the Diagnostics each geographies. our impact a across Europe growth our We and to to United all again, businesses businesses performance

and strong was divisions across geographies. broad-based performance both and our So

in exceptional result, first were quarter. a our financial results the As

higher four-fold, ahead revenue a EPS to fixed share revenue Diagnostics enabled doubled, more XXX%, than well from production like $X.XX. us beginning with quick in base. cover themes per while in quarter. this month. up overview. remarks was leverage increased more of and of some JP Both the earnings Morgan the presentation provide came revenue our the I’d echo volumes topics Total three at introduction, my as in billion, With will main non-GAAP $X.XX our of today, at to expectations Organic which our conference the EPS than Let’s cost earlier of that

financial First, purpose-driven how is results. our believe contributing and excellent driving to, culture we our

of and would we of social the COVID-XX; the Second, third, epitome Fink, how on such we’re in recall XXXX making should that argue purpose. To stronger in both a public begin, that the many you company. why a of company CEO is difference other huge Three the side and early fight Blackrock, against be pandemic. a a we’ll Larry of that private, companies years Hologic wrote serve the later will

response Breast incredibly to differentiated team in is engaged world. highly day return in COVID waking We and positive we culture that is are financial Surgical Health an purpose-driven, contributing the in the terms of make growth every a And divisions. this faster-than-expected and to to both difference performance, our our believe up wanting

have tick understand to promise which every Science Sure. day. test a the result. of we they That’s women’s to Hologic last everywhere, tens our COVID If of the high-quality, millions in benefit. this, champion lives on who a don’t strong impact health. can more we for and employees that healthier customers, assured of accurate getting people example, make have we you’re passion a one bigger women. rest is Our year, had you enabling the our the makes the the our But you’re special of of call the world, help highly What that shareholders purpose just us Within collective we our

Our the since pandemic passion began. have shown and ways purpose, countless in up promise

on in employees annual many and published pandemic, which commitments massive how I’d are talk encourage our efforts rapid or we EUAs tried their capacity. our management and the all many production sustainability website to during person, on rewarded Power extraordinarily look. safe made But especially to last front-line a these under-promise to investors, for take our board like are to visible test interested heroic report, to from issues of and Purpose, how around team our the behind in externally, ESG COVID ways titled topics second those customers the we we about meet to just Some We increases found how in the we governments always the in week. our scenes, but world. of over-deliver

us on efforts. an give testing update let our Now you COVID

you from output enabled results, UK. for manufacturing Manchester, to which revenue XX expand Total capacity probably our million. the plants generating our to about and As customers, can quarter, September COVID continue us progress to we make provide COVID out assays good financial our of tell to plans about $XXX assays million in to sequentially on compared Diego two increased of San our

also represent the we selling As mainly on our a track Europe. Panther COVID very time, our that pre-COVID, revenue our COVID contributed market our million government, one-third of employees, to growth quarter customers, U.S. pandemic. remains relationships This XXXX. and meet And the goal of at least first encouraged United more providing our are an international than from for At said, and came suppliers, quarter, testing are the represented produced tests ever in produce we tremendous each on all outside tests continues These new of sales prospects accomplishment. strengthen In the of more molecular we other with in million access $XXX had States, our strong. basis. franchises. which we revenue tests financial to globally total Diagnostics, business, to total international we our tremendous XX the by a our total would our is to which now quarter January have the than test quarter, our COVID of demand future to X.Xx Thanks support. for of XXX% organic COVID before diagnostic same instruments even capacity are about molecular

which We we start shipments than long run-rate. robust fiscal our growth recall You platform Panther than stands as roughly are XXX capabilities. more have at last might future first list XXXX, COVID us of off believe longevity usual fiscal customers placed systems in testing our instruments, we new quarter year, our excellent And more system’s reflects come giving that for installed another appreciate customers a a worldwide, with our base to for waiting more global Overall, now instruments, the an double the anticipate. alone. to we still XXX that best-in-class X,XXX in

Now be business shift to much the of third topic: let us on gears will the side other pandemic. we believe our major stronger our Why

First, that while. it’s to clear never will been demand more robust accurate for highly for a us testing molecular remain COVID

the While market tests States daily molecular numb we market and in today largest globally. to rates staggeringly to would become molecular have a that’s the being infection in a X are high remain that the million But than the single performed reminder, before almost that little United XXx a may bigger as about COVID. annualize United States

and COVID tail acid will is remaining testing while with that a to long, demand fiscal come. meaningful our ‘XX into So out, likely decline product to roll molecular beyond, biggest extends inevitably nucleic as for have likely years vaccines

have need The As take not societal seen last toll will ever people we to have will far broadly, vaccinated. the we choose will administer it seen, vaccines and driving be on, future manufacture testing focus pandemic’s much and for, longer, to time COVID and demand. anything before, many exceeds emotional and

to will base, facilities our COVID huge before cases, gold have close for miss events. to testing long-term. Panther These persists, to asymptomatic of various other around can be contribute the can accurate pursue super-spreader shown hospital for that include less assay us negative installed other, many asymptomatic even these As uniquely testing concern purposes, of standard tests at and confirmatory two-thirds results and admissions, the false combination public Studies these cases have around and use positioned performance of modalities. screening our the patient that

of we the combination will engineering market production differentiated from FDA share. Even increases, and and innovative labeling as on our capacity gain Panther, us our the market help matures chemistry, robust believe

significant commercial commercial accounts, Asia, razor, are They future. a an and every and our business has fantastic of extending razor key eye Moving second our Europe toward the single on, business we contracts, growing with blade job been I in Panther the model. winning don’t teams gaining have that exaggeration the non-COVID and Hologic United are installed on States, reason our rapidly is think an future in to will Panther the be stronger instruments. say that the doing it’s strategic fueling of base broadening placed

in new Tests this, that As last Record, than in States, customers. which more contracted, about of or revenue new non-COVID discussed an TORs, indicator in from a XX% business we improving trend one in that accelerated XXXX, Europe. had alone. already ever done TORs in before business, in today, more of $XX COVID, That’s actually quarter good momentum than first our is with We represent fiscal we totaling assay early TORs before. achieved the record in of positive reason This has with was million $XX XXXX, especially the which further said United molecular we quarter million additional year-one

and sales from ancillaries, number double ago. as assay our rate sales XX% we in quarter grew a as when assay For the globally core quarter, example, the well instruments remove roughly molecular more than first COVID

of use will quarters the the the now tools Surgical diversify we that In The software third bolster just the our upgrades, service. we of care. reason for a and placing strategy our tremendous to Breast success continued further of able hardware selling franchises patient business, expand business Diagnostics last we capital been believe and stronger Breast, future. interventional continuum equipment, are the on is have across than thanks we post-COVID full several to Rather be to we to to portfolio and have our

the pipelines of Brevera, force. have re-launch. our understandably $XX products commercial presence presence and very increased our business through And sell in good While a strengthen on been a to million been highly developed we markers, the productive, a the has for R&D direct most acquired portfolio Breast recently, we sales enhance which company that portfolio off cancer our development as is launched customers, have in and both high-performing, and and we our COVID, Europe, to of Health focused partner with Somatex, its Surgical, In start our broadening profitability. world products engaged German long-time breast ours, improve of such

as devices, quarter, first the are management well complementing fluid that system our such NovaSure New leading helped growth of market- our ahead Fluent, new and in MyoSure to division products and and hysteroscopes return schedule.

buy our to and a Acessa we development is nice Acessa’s August the product On million, ProVu treat so Surgical it’s RF plus MyoSure spent future is Health. earn-outs to to sales a that our fit very reach, front, for used fibroids business $XX in business force. that approximately can’t contingent complementary laparoscopic

And reimbursement great early metastatic Biotheranostics, and molecular after stronger plays developing demonstrate generating we the large market is has announced their earlier Index the healthy about. a from clinical $XXX that so far, customers a cancer to lot activities. we cash reason tests COVID tests specifically, of an pending, a the that test, business acquisitions More expand a job been of example good. of be we the oncology. The of use of strategy. step are for a cancers, feedback million breast this Breast underpenetrated the final to and for market strong our role month, which breast development Somatex in will has good pandemic, but growth The ability which important to know acquisition foundation this into Biotheranostics Cancer flagship another Acessa our flow up adjacent us done and leader enables in Biotheranostics,

us Biotheranostics road. annual perspective, strong to excess XX%, markets we lab novel in margins. Biotheranostics $XX use of growth and content can clinical that revenue, a for In From the brings down capabilities provides than gross of rates financial million addition, develop more

the has Biotheranostics breast positive that received cancer. NCCN, women excited for hormone of since receptor the very included benefit contribute important with increased predict to test therapies. endocrine its care Breast will the Cancer Network, good or announced news patient and National as with should to guidelines access. help early-stage, we Comprehensive establish some test treatment various We’re deal, This that extended this The clinical standard Cancer the of the benefit question, Index in

let Before the me in turning Karleen, we to to an XXXX. call are conclude saying by over excellent off that fiscal start

other our stronger ensure COVID financial recovery and experiencing of that road. we company now down terms of culture the businesses. hard translate Our purpose-driven performance, will to our tests driving is And into we both a and excellent are working success the the in execution are

it We are will. confident

we’ll the Now turn Karleen. over to call

remarks Steve, Thank financial walk XXXX. our I’m metrics, the you good of our briefly other key today, of results, to afternoon on for a sales overview In my second divisional going income quarter and and guidance everyone. touch provide few with finish through statement, fiscal our an

pleased As $X.XX guidance. exceeded and billion business strong our quarter first Organically, and with Steve revenue across are EPS base our COVID geographies. our improvement said, as significantly of major of sales we very driven increased revenue grew XXX%, all by revenue Reported the continued XX%. results,

tests results to for COVID were significantly strong and the cash profit, our and Given able demand improve margins the incredible we our business, in base flow.

expectations. quarter continued our Further, extremely which moment. strong, the in $X.XX a I’ll increased discuss of be XXX%, to cash EPS As well ahead in has a operating of flow result, first

do in In tests of quarter, million by testing, of let COVID some sequentially, our in billion to strength our customers XXX% In $XXX revenue on detail the results. division, increased shipped largest Health, where at part unprecedented out by procedures to down benefit the sales automation. catch-up cytology and to by million In response in a assay business we high of menu Diagnostics, XX demand slightly accelerated me businesses the COVID, as for revenue about that, perinatal in customers, and revenue quarter grew COVID calendar our XXX%. I driven molecular, And $XXX.X Breast $X.XXX base cytology the generating global throughput the diagnostics, of our provide molecular grew see divisional global excluding year-end. Before globally. Rounding Panther’s the revenue X% first million was driven continue overall. of

quarter except in division’s to and However, the fourth geographies business, growth business Brevera in system. grew XX% was for returned our slight interventional America. and which quarter to by Latin the helped was performance driven the improved compared all The performance the by of re-launch the biopsy

encouraged COVID. sequential challenged overall the at were healthy year-end, because sales capital improvement equipment spending Although by and remains in we by environment calendar of

However, on diversification recent to service pressures well acquisitions, helped and several as as intentional consumables, have capital. our mitigate

recently Overall, XXX%, Organically, the States, new up in basis, a currency. sales the revenue growing our benefit XX%. of million terms parts X.X%, on basis. sales great As Health billion reported well the Breast $XXX increased of $XXX $X.XX an This an reflects by United elective geography, revenue, that in million several of force, XXX% XX% COVID capital mid-single-digits stellar some than our procedures was of result U.S. international U.S. constant as organic in given on of example, the In result sales, as Surgical larger result products. the cases is in service grew which strength of quarter. increased grew sales Surgical, domestic On outside country. the a headwinds grew increasing from of strength. shows sales and commitment Outside sales a

the high-margin to move of the driven the margin of Gross first P&L Total rest operating of the quarter tests for of business. and X,XXX by points, the first COVID in the expenses Cynosure on sales basis X.X% lower-margin $XXX.X increased decreased let’s million . XX.X% quarter. divestiture of Now

driven the with Cynosure assays. actually BARDA investments and for marketing the $X.X by increases future of increased when million These credits R&D development expenses associated from However, COVID our sale, for and normalizing about in of growth. were

associated market deferred a plan gains. increased of our expenses addition, In result as compensation with equity

to in other this benefit while quarter. the offset liability a most income is expense market, reminder, the realized we marked a of As in by is

than the of tax of basis X,XXX from to driven favorable States. margin previously a non-GAAP together, margin forecast operating net rate this all was XX.XX%, primarily XX.X%. and outside our income, the assays XX.X%, X,XXX quarter increased slightly mix sales by COVID-XX geographic addition, basis to points lower in In Putting increased United points

earnings $XXX.X of and well per million, finished a non-GAAP As net at non-GAAP were $X.XX, income share expectations. result, ahead

XXXX was guidance, in strong operations our from Driven cover quarter tests, for a few a our million COVID I’ll flow $XXX by result. touch we second first other quarter, financial the quickly demand very cash Before metrics. on

was In XXXX. our just fiscal two cash quarters all tremendous operating flow the about same for Looked generated the have and billion flexibility. fact, last as flow, of in total strategic in at another cash this operations about way, from we which us gives $X.X financial

outstanding quarter, $X to approved example, were of authorization, recently deployment. For And sheet X.X a million we and nearly stock million. we our repurchased by $XXX able in the our $XXX first new strengthen our also repaying to commitment million of billion revolver highlighting our Board shares balance for balance capital

we early first $XXX for Overall, our we than the X.X revolver quarter. as in against a of with end $X And the of had the leverage million billion cash very borrowed As measure the had a EBITDA quarter, reminder, fell more ratio times. precautionary at pandemic. to of the

While remain three problem with have in short no we over a the comfortable also the between lower and a with two long-term, ratio leverage we ratio term.

As to a our buying to acquisitions tuck-in pursuing use cash our and year, more you we know, number stock. actively division-led, of addition to deals back this hope in complete are

basis, XX.X% a was trailing ROIC basis of Finally, significant X,XXX points. increase a on XX-month

call discuss we fiscal effects fluid of me remains business a the Therefore, Hologic quarter second are our year fiscal overall, XXXX providing the only ongoing an questions, open guidance today. excellent let that for expectations to environment for quarter our XXXX. of of we will Before We due but the for be pandemic. the anticipate single

revenue roughly second expect to quarter an results XX% guidance financial point closed. also $X.X with the expect pending of tests Underlying this, growth, organic our not which total of Diagnostics we acquisition, the similar to growth. This fiscal of sales to again, range COVID does doubling drive approximate the $X.XX that billion. the of Biotheranostics our not XXX%. excellent me in of we include XXXX, impact out In Let to yet exceptional represents revenue has

new As other we is Surgical calendar procedures of businesses, the the compared Breast, quarter. of and million our be a of half as production March our quarter most Diagnostics that screening of molecular $XX second Blood end year. to revenue, organic fiscal our capacity are which let to seasonally down on-line in about our semi-elective me is In to back typically sequentially the remind December at to reminder, our expected be in capital calculations, come expected year. stronger the for period base the sales tend and sales businesses, you out

In addition, headwinds COVID guidance and customer cases. restrictions related to incorporates constraints procedure spending volumes given our on rising

were slowdown our they are elective prevalence, in much recent spring have While surgeries. customers increases to than seen local prepared manage a in through COVID last better- we some

of expenses, like in close rate to point also increase bottom first saw the increase and out investments to is the XX.XX%, XXXX. we for the outpace perspective, in we shares certain to expect losses to more tax we full as for to to guidance diluted net, we $XX in quarter quarter, growth other even a the based second on as activities second or than earn we the expect of that alone in million XXX This in growth. this don’t put On quarter To year did the line, XXX like outstanding $X.XX expect with forecast second hedging future to $X.XX we quarter. gains I’d we of quarter, the EPS significantly related quarter. of that million extraordinary second rates in to revenue

increased weeks that me uncertainty As you your remind pandemic. recent due forecasts, the let has to you update in macro

to ranges, downsides. compared visibility and middle you potential the months has to which upsides incorporate several of we improved our both our encourage still model ago, at While would

Hologic’s open performance up Before that quarter in me for financial we let call by questions, wrap the first was terrific. the saying

the performance. impact call related first confident positioned continue question. a the have we deliver to and one that, health COVID-XX ready to the women’s operator to on queue. for We plus fighting questions. questions exceptional make then we Further, With a I I ourselves open your are the am for the return Please pandemic ask long-term huge will to follow-up, limit globally. to that Operator,

first Wells Thank Fargo. our Instructions] you. from We'll [Operator Leonard take question at ahead. Please Dan go

Thank you.

testing you the strengthen success you So a that? that first U.S. Could on other franchises. your made of a elaborate COVID comment has your for outside bit actually helped question,

Yeah Dan, thank you.

full it's circle. things off, First funny how go in

in of helped know really number years the and last you the a us of dealers the UK, and us more Europe Health in over team strengthen Breast countries, key to Spain, whole few Germany, few name that side much presence just lot Portugal, a a of Europe. acquired we've the on our As it’s in gave our direct

a we've level. So been higher relationships building at

that screen major in us about got in we're a incredible – major Europe of COVID on and stuff. hit, we lot of governments. sexually transmitted leader much and of the about to access how really given just infections the radar their contracts As didn't lot a business them a diagnostics they other now has it's We've the know so government and doing, in with are every

So selling really we've new be we've them really that come down, Panthers giving business been Panthers will and online in able, go and the as as COVID just booking been to about down to level the strengthen road. we business, being think our going is that us just more really a able to different significantly of cytology business, relationship and our talk HPV

before in really infectious environment something to subside or types do wait an it got bit assets will become Thank this you. testing to the environment diagnostics of Okay, do now? pandemic, right you feasible helpful, specifically, I unrelated the there's how in be an of phase do to think that's would the -- those you during characterize for follow-up, core your is is think M&A disease you mean, available? where pandemic and it you

Great Dan. question,

know a it in different put you couple probably perspectives. of think, we’d I

generating I right ton are we and now. First while is say -- a cash would obviously foremost, of as

deals anything can you away I underlying strength way of anything the because be and performing, easy We when you don't is walk on and position an your enormous are also feel and disciplined need the luxury of business. have good think about from in you our that to that it's businesses very being best base

market look fascinating been last we eight right. if the specifically, months, over then it's the So at to watch

First, everybody Biotheranostics know We and a just like of down wanted had even you pushed a had Acessa We including we'd months back the and kind April, ourselves. March, pushed May, with out hunkered things deal. see cash where cash. now. a our point fairly at there own fairly with is now market a are was of IPO time, flow to that so is right in companies There also healthy that lot obviously relationship flushed few

is there a froth to bit and there we So of disciplined. out be I want think

deals I that's walked So as and more the last gone tell the I think done. team of months would here on other valuation from, three, you, probably fundamental we as diligence over maturing and deals proud the that our over issues or four excited we've some the deep really I'm away of in pretty that we've strength.

some with we're hey, out bidding think get price we're into and good great, at the to that's ROICs, caught things the assets I right or wars we and if even right in some going can overpay. we if wait things, not to So get a where position need miss

market trying to disciplined. it's We've sell our every things imagine, banker think very beating door do but staying us now. we’re I as So pretty a vibrant you can – beating us had down right

Thank color. I appreciate that you.

question from next take now we’ll our please Donnelly Citi; at go Patrick ahead. Alright,

a this back Steve a it's on Great, the side, know COVID as half, out think obviously you, for to on out. we the just get lot one but thanks just choppy you obviously, maybe you going vaccines sure but here, little testing durability out, rolling guys. the side,

there, created the back the As possibly aren't and test half you beginning think naturally about all pie equal. shrink to

when kind you Do play get capacity again COVID you that as guess of terms does this starts of do out, How view bigger shrinking? year? is get pie split expanding. landing see non-COVID certainly the through What's Hologic and a piece? we I between that where of So in that your and

improve the will that going know a market place Sure biggest of with we know in share, that there we I continue FDA very hospitals Patrick, that you raced they'll test the everybody gazillion base. put a comes granted have want in the bare In of to was the kind to a to that. the strongly west At and and will installed believe continue to of one this believe to wild, ton really our enduring we on end EUAs, the for are day right. clearly market. questions.’ beginning very some on doors hitting the run. have over wild Panther out ‘the long powerful everybody a is starts you're assets be us them in procedures. minimum They good frankly that It site, doing of We their the

end team most day. and the How asymptomatic super them and of indicated, not much keep beginning asymptomatically times, lot the but big screening spreader we using emphasis the a they're have top. rises our of is think the in the to place, label enough to of back-to-school, caused for tests we turnaround by always whether to people quite people lot more of the there because rapid back tests, is more for they say particularly of to a I and to a need we stuff seek term, is the And been molecular learning the there to As testing to on have get a long going being by look work antigen cream this what time frankly and and events, over wrong they're something that's more when high happening be at of the passed I and day going level wasn't determine being short to in you the there asymptomatic the tests and think off is these a some are again, what's at try along?

one best So incredible that's located, the of assay an you labels. sensitivity Panther and specificity you it's and have where have got

people you We get you once the want XX. under you things, school everybody to indication next fall. also simple for vaccines back get know still to in back call The screening, and it aren't pooling the we right, into about have indicated think fall, know

to doing to say now, So that vaccinating not country, as at a want we're asymptomatic asymptomatic right are going the excluded from lot may children going we keep great picking the people up to that, are screening antigen they're tests particularly be about and indications. effective to as be talking be of going

the advantage the have are we that the never running That exhausted. then lab the speed, make pure workflow workflow to they of automation world random is should been have around be sprint this as just and ability have the Panther, that easy. techs access that and at forgotten just So a you marathon

it as walk in has lab been part and caps building hear be able And more the fundamental from our has we've up, much of one that that's it director full and that and yet. the they been automation full more been all we're much, any penn are shipping to rather caps, of the Panther. using capacity benefit can't lab with techs everybody not of realities just You getting be so fully our penn been able is creates to provide not even of not tired and we've but would the their and

continued see how Biden compete you up the going we this to We'll there think be how transition capacity?’ in, more So think to you we and still we're going like we plays have all out, I know we ‘hey, are. all market team exactly standing. certainly having been but about, building every but is it no are we've been play has with discussions the idea, out, truly

perspective, end. think That's just one; maybe then really know mentioned appreciate Karleen you it there And helpful the I at that. I

being slowdown seeing a You elective bit headwind. little have bit quarter taking it's a on rising where a impact this versus cases terms that a kind kind sure guys of seen on little sequentially in bit a what could recent just you're you in of we last what seeing handle some procedures, of that. the of Can expand surgeries, slowdown Just and quarter good be? customers elective you of COVID to a and want have make

probably growing, wouldn't have frankly seeing days we talking that think fact Breast it's certain really pockets the in the we're business. slower which say on certainly, the a couple most. better here. business quarter ended in than Health would expected. up we The little and surgical flattish, I Overall, consumable last stay Yeah. or Surgical grow they the Health Breast – little pieces right Whether in We or of we’ll geographies; margin. I have We're both finished

businesses, little I'd of that to overall but So muted going on but to tiny but maybe COVID focus over on the for take we given care slightly those be more I and couple this temporary a time, good. continue call itself will, quarter it it, here it's still just us a think it's it's fundamentally of outages, got sharing we've offset

that's hear. Steve. to Alright, good Thanks

Alright.

of We'll our from Cowen. next now question go Please Lin take Chris ahead.

Hey, for my good to afternoon and thanks call, taking back Also, welcome Karleen. the earnings question.

Thank you.

alright. Good remembering, Chris job

you provided percentage Tigris replace quarters percentage competitor running Do to what an testing? metric on have test record, placements past percentage the to also I to those in you track also an non-COVID-XX do you new us? placed year now the and estimate what Panthers of enabled know what figures begin expected have update past of you test Panther estimate tests? for an records Panther on of over Steve, the adoption, of are are customer assay but placements a or displace Also, on a

Mike. Hey Chris, it’s

at that. a take crack me Let

I on your days they access where there’s were quarters of placed our XX is our you test. Tigris’s point include of we time the some test and on COVID now what Panthers going customers provide into – in Panther menu, think significant I Tigris the to replace on portion to a approved a over four said if broader few think, we ago two we largest early first a

for that given update would you customers. since existing so today. by number tell and I we focusing an customers are specific an don’t that those a haven’t update on you on relationships large, have obviously for then, our and I broadening with We our

If that’s second to you you Steve most your going a hospital help part our one labs them is pre-op as and sit overall, earlier patient from perspective think things the back Chris, in comments question was going the think Panthers I to of of the gets sales extra us know the bring procedures, share that about making for a where Yeah, closer still then past incentivizing forward testing like right. getting that. as what don’t to this that. is And how about of of but remarks, was new TOR’s think I Panthers, prepared business in on, I sales we’re number our it? focused isn’t job on And his said know either, percentage Steve force the what non-COVID a we’ve in done about of to they’ve how bit new force the and in talked great

year, XX% more we the another remarks, I quarter we with do this. $XX we ever and we of being had we mean pretty the that toward about before, placed that, I in talked about every done Panther run and the placed is than that an future million. now rate So $XX I million first mean did as in excited think That said eye basically TORs. last prepared was Steve

certainly that a SHU. continue don’t So pace, but run of rate the if know at out will that with here good

Okay, of follow-up, go great. topic wanted just decentralization. to I to Then my for back the

largest molecular hired your the acquisition point-of-care and peers of of a recently platform. One Diagnostics throughput announced COVID-XX

I acquisition rapid accurate think that also tools. for but highlighted has this Beyond need just diagnostic the pandemic

have Panther that unique updated extend Really, mid-to-high on throughput in given you do want a a you volume position as leadership diagnostics lower setting. that thoughts market to any Now a leading platform, that do is opportunity? to molecular

Yeah.

per technologies look companies, if I or Chris. our five coming different to We and different probably day, little you, continue areas technologies inundated tell way. I’ll been we’d different mean XX get at we’ve

looking some. certainly We’re at

labs our We’re more a customers. in existing focused – in the know little probably that we’re generally you

We’re always fringe looking extend there. from the other to on out ways

on can where good and we we to at can everything continue value market. get and disciplined we’ll look a where return So stay the bring to

my great. questions. Thanks taking Okay, for

J.P. from question Please next ahead. our Tycho go take we’ll Peterson Alright, at Morgan.

seen. the know basically think about variants? here, it of over as do I’m then a think and stick in year, will. you the strengths the if assays, quick COVID. test Hey, and now a you you mix, How pricing on how Where are shifting a I then thanks just you making Steve. the curious, so to with hits new you’ve few administration new big then going of I’m durability obviously you weeks, push couple got have emerged last new the And the for current trends doing about course think think you sustainability till have stand-alone we today? as been of up do and stands mix combo of reimbursement lots the about the

Tycho, Yeah thanks.

good I two in variance, designed of you very targets think know the ours target new we’ve virus there’s the backup right we a to we designed with mutates. ensure basically terms now our test, way case that the have in feel

targets So very advantages we to part to is continue of incredibly an that feel with, it having and mutate. begin to watch this genomic regions likely that less are but the many specific good, of test and sensitive

feel about part catch multiplex. to what our And the very very So second that ability we I again well. the to those think good was continue of

Talk] [Cross

– I’m been sorry. Yeah, know the we for no demand single the It’s multiplex, basically there’s come this all figure winter fall COVID our product. entirely as been season test. we flu for our virtually

you be is to and would more next there. going we’ll make I expect come sense option fall, probably think having syndromic multi, that typically multiple a

And pricing and reimbursement?

term, least reasonable. still think I at short we’re the probably in

it extending we of that pressure ultimately I’m paces start assume over any good we certainly well, but different think now. where I will will pressure some will long downward near-term of about through around the and think XXXX, got come with the pricing, but feel governments But see the the point, as probably evolve health end to probably go both may run at world on eventually with be right so again, I different the real sure don’t public administration particularly this at to down. those that evolve as forward are we pretty Biden we’ve emergency reimbursement. on

capital your are you EBITDA, Would you’re XXx consider still around trading so then buybacks? stock up [inaudible] for great an ASR? deployment how about putting on And one thinking numbers, you

Yeah. in fan certainly event. general, Cynosure those an huge of did conjunction with We divestiture. In an a ASR short the not of

been buyers the consistent think back more look last, really I we’ve over good been fiscal five and year stock. years, we’ve of million think even bought our I you fairly last shares When XX so. pretty over back

more I way, continues been but really think strategy, executed our our both reducing important probably of it of offsetting as count the part be number frankly years. along we’ve to for a as dilution, an now share well

Okay, thank you.

Denhoy Alright, from our go take question we’ll next Jefferies. at now ahead. Please Raj

Hey, on for this Zach is Raj.

us. from few a Just

more share expect Can COVID? post come in billion potential Should future give the program? we on then timing deals? size $X on potential started announcing you acquisitions repurchase deals and/or color to more two year give You start to detail by can buyback. any that also, any and of of it the a And you timing

Hi, cash the regards on allocation. this we’re Certainly comments tremendously is in Karleen, focused which free to so a flow, couple let several has me deploying make capital just quarters. over last of our grown

five part is growth Our to is priority to $X is say be I over to would going but a M&A assets share build the think made, on Steve year that capital authorization be of tuck-in that strategy, repurchase I that billion period. and going - accretive comments the

So we time. would expect of regular to utilize period that on that over cadence some

Next. Great!

Please from take Jack ahead. Nephron go our Meehan now Research. next question at We’ll

afternoon, Good you. guys. Thank

Hey, Jack.

talk about business. to Wanting the core

do surgical going the but how some reflected you flush think been might catch-up cytology, three on some pent-up the you back? there quarter, and Health you across talked you in procedures segments? much I hospitals have as about know do contributed Breast So from in timed demand think

a good was terms quantify to time Again people have you the Caps for who We is surgical probably get so plus year, – you it well and have cytology, to tend their have pretty year-end. the hard catch-up. think trying them as few is to points, percentage at year-end, in exceeded it saying in of there both some a it’s Jack as completely

of bit terms a strength in saw we capital hard a to pockets, little In know; certainly. little of

business, huge of difference. get the be stronger? would talking grow to we of XX%, we’re make Do markets some going I market – to to frankly none puts terms and Are in minor continuing share? continuing is quarter percentages is think the coming take it on or what back still a total. we And the it’s there’s XXX% next the about quarters. the settle in little going we be down way thinking a it we’re to here as Are takes overall base

was Yeah, product we that well that for forward Breast the the only Brevera really there nice is some on moving that demand relaunch be I Health add thing to think think I a contributor capital that for bodes and the for on definitely and division. that would will pent-up that relaunch

And portfolio? the hoping out we Should color was larger incremental coming how XXXX. launches launches businesses a do moves of R&D bit does new around of in other think kind you environment the the for maybe pipeline? of any little you What give for Great! throughout in maybe product make about then I doing and to have expectations think more

Yeah, got – like development. put Diagnostics in as and it’s of understand singles much involve resources first the we’ve the fully Slam energy think out Grand in and all to a additional quality product assays coming think went COVID, they a into you label pooling how terms software. know of a well lot people consistently the indications, for and both lot of of and we assurance new of things I hard our your and question, I manufacturing getting as R&D for all Frankly in hit

strengthen even on out pathways In got continuing AI. Breast things got follow-ups the coming to to we’ve there. ultrasound. a number using from We’ve continue acquisition Health we’re SSI of just So on

out. rolling know Brevera of process You is the in really

Acessa, rolling got we’ve we’ve business. surgical So lot things in Pro-View Then software and the the obviously smaller there. of within a got additional product

of things core the we way or last probably able – months from to the front, question the those We’ve then feel a good disciplined due others. our which teams now me work business’s in very back be good. few I good diligence. I’ll probably We’ve about over best our also great So do to cadence of I continue made away on actually really some of comment got right great M&A things in all And the have and to just walked go and even to are think we a rolling out. M&A first really to number is the business is to so, answering the

aren’t be So necessarily and big look certainly building little but a to think here billion patient certainly we’ll cash position mentioned. we’re I able okay last bigger, rate don’t of more at if a the to of a and term be cash, and We’ve have that’s bit we likely eyes needs we’re [ph] quarters. a near given bit that I cash, two think anything, the just little now, big spending as We the $X for in generated probably right disciplined. Karleen or in

think I Edwardo, Hey we have…

Thank you guys.

Edwardo, more question. for one be may have we I think time

from Vijay Kumar Alright, last at we’ll now question ISI. take our Evercore go Please ahead.

Daniel for taking Hi, this is on question. the for Thanks Vijay.

or the unwind XXX on a wondering think should the production quarter on with in placements Panther that on I strong in capacity Panther for book, words, comment Your other order I’m about order the how just book?

we Sure, given we’re what continuing just similar to have produce to demand. strong we now a very at still right placed, that rate Panthers

a back continuing later I calendar right bit, into ‘XX, ramp-up, year produce are the now. down start at to rate we a similar that does extreme to but probably probably little given think

Thank you.

XXXX you. is the for conference a now time concludes we evening! first questions call. today. of all Hologic's Thank That good earnings quarter fiscal This have Have