Bio Rad Laboratories Inc (BIO.B) 2023 Q1 法說會逐字稿

Good afternoon. Thank you for attending the Bio-Rad First Quarter 2023 Earnings Conference Call. My name is Matt, and I'll be your moderator for today's call. (Operator Instructions)

下午好。感謝您參加 Bio-Rad 2023 年第一季度收益電話會議。我叫馬特，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to our host, Ed Chung, Head of Investor Relations. Ed, please go ahead.

我現在想將會議轉交給我們的主持人投資者關係主管 Ed Chung。埃德，請繼續。

Thanks, Matt. Good afternoon, everyone, and thank you for joining us. Today, we will review the first quarter 2023 financial results and provide an update on key business trends for Bio-Rad.

謝謝，馬特。大家下午好，感謝您加入我們。今天，我們將回顧 2023 年第一季度的財務業績，並提供有關 Bio-Rad 主要業務趨勢的最新信息。

With me on the call today are Norman Schwartz, our Chief Executive Officer; Ilan Daskal, Executive Vice President, Chief Financial Officer; Andy Last, Executive Vice President and Chief Operating Officer; Simon May, President of the Life Science Group; and Dara Wright, President of the Clinical Diagnostics Group.

今天和我一起打電話的是我們的首席執行官 Norman Schwartz； Ilan Daskal，執行副總裁兼首席財務官； Andy Last，執行副總裁兼首席運營官；生命科學集團總裁Simon May；和臨床診斷組總裁 Dara Wright。

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

在我們開始審查之前，我想提醒大家，我們將就管理層的目標、計劃和預期、我們未來的財務業績和其他事項做出前瞻性陳述。這些陳述基於對未來事件的假設和預期，這些事件受到風險和不確定性的影響。

Our actual results may differ materially from these plans, goal and expectations. You should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC, where we discuss in detail the risk factors in our business.

我們的實際結果可能與這些計劃、目標和期望存在重大差異。您不應過分依賴這些前瞻性陳述，我鼓勵您查看我們向美國證券交易委員會提交的文件，我們在其中詳細討論了我們業務中的風險因素。

The company does not intend to update any forward-looking statements made during the call today. Finally, our remarks today will include references to non-GAAP financials, including net income and diluted earnings per share, which are financial measures that are not defined under Generally Accepted Accounting Principles.

公司不打算更新今天電話會議期間所做的任何前瞻性陳述。最後，我們今天的評論將提及非 GAAP 財務數據，包括淨收入和每股攤薄收益，這些財務指標未在公認會計原則下定義。

Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. With that, I will now turn call over to Ilan Daskal, our Executive Vice President and CFO.

投資者應審查這些非 GAAP 措施與我們收益發布中包含的可比 GAAP 結果的對賬情況。有了這個，我現在將把電話轉給我們的執行副總裁兼首席財務官 Ilan Daskal。

Thank you, Ed. Good afternoon, and thank you all for joining us. Before I begin the detailed first quarter discussion, I would like to ask Andy Last, our Chief Operating Officer, to provide an update on Bio-Rad's global operations. Andy?

謝謝你，埃德。下午好，感謝大家加入我們。在開始詳細的第一季度討論之前，我想請我們的首席運營官 Andy Last 提供有關 Bio-Rad 全球運營的最新信息。安迪？

Thank you, Ilan. Good afternoon, everybody. The first quarter of 2023 was characterized by solid growth for our core business coupled with a significant reduction of COVID-related sales. However, we also experienced a number of market and operational challenges, which overall resulted in a lower-than-expected performance for the quarter.

謝謝你，伊蘭。大家下午好。 2023 年第一季度的特點是我們的核心業務穩步增長，同時與 COVID 相關的銷售額大幅減少。然而，我們也經歷了一些市場和運營挑戰，整體上導致本季度業績低於預期。

While demand generally across the portfolio was in line with our expectations, there was some softness in smaller biopharma companies where we have seen historically strong demand for our life science products. This correlates with funding constraints the industry started to experience in the first quarter.

雖然整個投資組合的需求總體上符合我們的預期，但我們看到對我們的生命科學產品的歷史需求強勁的小型生物製藥公司出現了一些疲軟。這與該行業在第一季度開始經歷的資金限制有關。

We also saw a lower quarter for our process chromatography products, primarily reflecting the softness due to the timing of orders. In addition, we saw a further tightening of sanctions, which impacted our business in Russia with a negative impact on sales in the quarter. And we now expect lower overall performance for the year in Russia, especially in our Life Science business.

我們的過程色譜產品也出現了較低的季度，主要反映了由於訂單時間安排而導致的疲軟。此外，我們看到製裁進一步收緊，這影響了我們在俄羅斯的業務，對本季度的銷售額產生了負面影響。我們現在預計今年俄羅斯的整體業績會下降，尤其是在我們的生命科學業務方面。

On the operational front, we did not make the expected pace of progress within our supply chain to address our order backlog. And as a result, backorder reduction was modest. Of the estimated $30 million we expected to recognize from elevated 2022 backorders, we achieved a reduction of approximately $5 million in the first quarter, and we expect a similar amount for the remaining 3 quarters of the year.

在運營方面，我們沒有在供應鏈中取得預期的進展速度來解決我們的訂單積壓問題。結果，延期交貨的減少幅度不大。在我們預計將從 2022 年增加的延期交貨訂單中確認的估計 3000 萬美元中，我們在第一季度實現了約 500 萬美元的減少，我們預計今年剩餘的 3 個季度也會有類似的數額。

This was in part driven by a slower-than-expected ramp-up of production in our new Singapore facility. This also contributed to higher-than-typical finished goods inventory as we made the transfer. Our backlog was also impacted by the shift in sales mix and by the placement of more clinical systems than expected at low margins. We also experienced cost inflation that was higher than our net price realization in the quarter. All of these factors affected gross margins for the quarter.

這在一定程度上是由於我們在新加坡的新工廠的增產速度低於預期。當我們進行轉移時，這也導致成品庫存高於典型水平。我們的積壓訂單還受到銷售組合轉變以及以低利潤率放置比預期更多的臨床系統的影響。我們還經歷了本季度高於淨價實現的成本通脹。所有這些因素都影響了本季度的毛利率。

We saw an increase in demand for our clinical business globally, as the impact of COVID finally receded. In addition, demand for our newly launched ddPCR platform, QX600, continued a strong trend line from Q4 2022. And our pipeline is robust and growing, and we are seeing strong uptake in biopharma, translational research and oncology.

隨著 COVID 的影響最終消退，我們看到全球對我們臨床業務的需求有所增加。此外，自 2022 年第四季度以來，對我們新推出的 ddPCR 平台 QX600 的需求繼續保持強勁趨勢。我們的管道穩健且不斷增長，我們看到生物製藥、轉化研究和腫瘤學領域的需求強勁。

The market launch of QX Continuum, our more affordable digital PCR product, remains on track for year-end. And we launched a few weeks ago the new PTC Tempo product line, our next generation of PCR thermal cyclers. We completed development and early access of our ddPCR microsatellite instability kit and we'll be launching later this quarter.

我們更實惠的數字 PCR 產品 QX Continuum 的市場推出將在年底按計劃進行。幾週前，我們推出了新的 PTC Tempo 產品線，這是我們的下一代 PCR 熱循環儀。我們完成了 ddPCR 微衛星不穩定試劑盒的開發和早期使用，我們將在本季度晚些時候推出。

This assay kit includes an automated analysis package and enables clinical researchers to assess microsatellite instability status across multiple cancers, and is part of our expanding oncology assay menu for Droplet Digital PCR.

該檢測試劑盒包括一個自動分析包，使臨床研究人員能夠評估多種癌症的微衛星不穩定性狀態，並且是我們擴展的液滴數字 PCR 腫瘤學檢測菜單的一部分。

Overall, we were pleased with the over 6% currency-neutral core sales growth for the first quarter despite the year-over-year decline in COVID sales. In particular, we are very encouraged by the high demand in our Clinical Diagnostics business as we expand our installed base, providing a solid foundation for increased reagent pull-through and continued long-term growth.

總體而言，儘管 COVID 銷售額同比下降，但我們對第一季度超過 6% 的貨幣中性核心銷售額增長感到滿意。特別是，我們對臨床診斷業務的高需求感到非常鼓舞，因為我們擴大了我們的安裝基礎，為增加試劑拉動和持續的長期增長提供了堅實的基礎。

Looking forward to the remainder of this year, we expect strong demand for our clinical systems to continue, and we also expect continued double-digit demand for our Life Science business. We expect to see strong growth for our process chromatography business, although this is now forecasted to be slightly lower than initial estimations.

展望今年剩餘時間，我們預計對我們的臨床系統的強勁需求將繼續存在，我們還預計對我們生命科學業務的需求將繼續保持兩位數。我們預計我們的過程色譜業務將實現強勁增長，儘管現在預計這會略低於最初的估計。

On the supply chain front, we are expecting to clear our extended Life Science backlog by the end of the second quarter and our clinical backlog by the end of the year. In addition, as we progress through the remainder of the year, we expect production to continue to ramp up in Singapore, as well as expansion of capacity for the QX600 ddPCR system, as initial demand in Q1 exceeded our ability to fulfill.

在供應鏈方面，我們預計將在第二季度末清理我們延長的生命科學積壓訂單，並在年底前清理我們的臨床積壓訂單。此外，隨著今年剩餘時間的進展，我們預計新加坡的產量將繼續增加，QX600 ddPCR 系統的產能也會擴大，因為第一季度的初始需求超出了我們的滿足能力。

And with that, I will say thank you and pass you back to Ilan.

說完，我會說聲謝謝，然後把你送回宜蘭。

Great. Thank you, Andy. Now I would like to review the results of the first quarter. Net sales for the first quarter of 2023 were $676.8 million, which is a 3.3% decline on a reported basis versus $700.1 million in Q1 of 2022.

偉大的。謝謝你，安迪。現在我想回顧一下第一季度的結果。 2023 年第一季度的淨銷售額為 6.768 億美元，與 2022 年第一季度的 7.001 億美元相比下降 3.3%。

On a currency-neutral basis, the year-over-year revenue decline was 0.3%. The first quarter year-over-year revenue decline was mainly the result of significantly lower COVID-related sales of approximately $2.6 million versus $45 million in the first quarter of last year. Core revenue, which excludes COVID-related sales, increased 6.1% year-over-year on a currency-neutral basis.

在貨幣中性的基礎上，收入同比下降 0.3%。第一季度收入同比下降主要是由於與 COVID 相關的銷售額大幅下降，約為 260 萬美元，而去年第一季度為 4500 萬美元。在貨幣中性的基礎上，核心收入（不包括與 COVID 相關的銷售額）同比增長 6.1%。

As Andy alluded to earlier, our Q1 results were impacted by increased sanctions in Russia, increased early-stage biotech companies' pressures, and continuing certain supply chain challenges, including those associated with our manufacturing lines transfer and ramp-up in Asia. The production transition contributed to a continued elevated order backlog, mainly within the Diagnostics group.

正如安迪早些時候提到的那樣，我們第一季度的業績受到俄羅斯制裁增加、早期生物技術公司壓力增加以及持續存在的某些供應鏈挑戰的影響，包括與我們在亞洲的生產線轉移和擴產相關的挑戰。生產轉型導致訂單積壓持續增加，主要是在 Diagnostics 集團內。

In addition, we continue to ramp capacity to accommodate the growing demand for the new QX600 ddPCR system. On a geographic basis, we experienced currency-neutral year-over-year core revenue growth in the Americas and Europe while core revenue modestly declined in Asia, primarily due to a tough compare for the process chromatography franchise related to a very large customer order in the year-ago period.

此外，我們繼續提高產能以滿足對新 QX600 ddPCR 系統不斷增長的需求。在地理基礎上，我們在美洲和歐洲經歷了貨幣中性的同比核心收入增長，而在亞洲的核心收入略有下降，這主要是由於與非常大的客戶訂單相關的過程色譜特許經營權的艱難比較去年同期。

Sales of the Life Science Group in the first quarter of 2023 were $323.6 million, compared to $347.2 million in Q1 of 2022, which is a decrease of 6.8% on a reported basis and a decline of 3.6% on a currency-neutral basis. The underlying Life Science year-over-year currency-neutral core revenue growth was 9.6% and was primarily driven by our qPCR products, western blotting, and Droplet Digital PCR.

生命科學集團 2023 年第一季度的銷售額為 3.236 億美元，而 2022 年第一季度為 3.472 億美元，按報告基礎下降 6.8%，在貨幣中性基礎上下降 3.6%。生命科學的基本同比貨幣中性核心收入增長 9.6%，主要由我們的 qPCR 產品、蛋白質印跡和液滴數字 PCR 推動。

This growth was lower than we projected as a result of increased sanctions' effect of sales of certain products to Russia, as well as growing revenue headwind from biopharma companies due to the funding environment for early-stage biotech companies.

這一增長低於我們的預期，原因是製裁對向俄羅斯銷售某些產品的影響增加，以及由於早期生物技術公司的融資環境導致生物製藥公司的收入逆風增加。

As I mentioned earlier, we continue to ramp capacity to accommodate the growing demand for the new QX600 ddPCR system. Process chromatography revenue, which can fluctuate on a quarterly basis, posted a mid-single-digit year-over-year decline due to a tough compare, as well as some softness in the bioprocessing market. With that being said, we still expect double-digit growth for 2023 despite a low revenue projection relative to our prior forecast.

正如我之前提到的，我們繼續提高產能以滿足對新 QX600 ddPCR 系統不斷增長的需求。由於艱難的比較以及生物加工市場的疲軟，過程色譜收入可能會按季度波動，同比下降中個位數。話雖如此，儘管收入預測低於我們之前的預測，但我們仍預計 2023 年將實現兩位數的增長。

Excluding process chromatography sales, the underlying Life Science business declined 3.3% on a currency-neutral basis versus Q1 of 2022, and was a result of lower COVID-related sales. The Life Science Group revenue, excluding process chromatography and COVID-related sales, grew 13.6% on a currency-neutral basis.

不包括工藝色譜銷售額，基礎生命科學業務與 2022 年第一季度相比在貨幣中性基礎上下降了 3.3%，這是與 COVID 相關的銷售額下降的結果。生命科學集團的收入（不包括過程色譜和與 COVID 相關的銷售額）在貨幣中性基礎上增長了 13.6%。

On a geographic basis, Life Science experienced currency-neutral year-over-year core revenue growth in the Americas and Europe, while Q1 core revenue posted a decline in Asia due to the previously mentioned tough compare for process chromatography.

在地理基礎上，生命科學在美洲和歐洲經歷了貨幣中性的同比核心收入增長，而第一季度核心收入在亞洲出現下降，這是由於前面提到的過程色譜的艱難比較。

Sales of the Clinical Diagnostics Group in the first quarter were $352.1 million compared to $351.8 million in Q1 of 2022, or largely flat on a reported basis, and a 2.8% increase on a currency-neutral basis. Core Clinical Diagnostics year-over-year revenue, which excludes COVID-related sales, increased 3.1% on a currency-neutral basis.

第一季度臨床診斷集團的銷售額為 3.521 億美元，而 2022 年第一季度為 3.518 億美元，與報告基礎基本持平，在貨幣中性基礎上增長 2.8%。核心臨床診斷的同比收入（不包括與 COVID 相關的銷售額）在貨幣中性基礎上增長了 3.1%。

Growth of the Clinical Diagnostics group was primarily driven by a robust demand for diagnostics instruments, primarily within blood typing and diabetes, which was not entirely fulfilled due to our manufacturing constraints. We continue to see strong rebound in placements of instruments in China, which should contribute to reagent pull-through volumes in the coming quarters.

臨床診斷部門的增長主要是由對診斷儀器的強勁需求推動的，主要是在血型和糖尿病領域，由於我們的製造限制，這一需求並未完全滿足。我們繼續看到中國儀器安置的強勁反彈，這應該有助於未來幾個季度的試劑拉動量。

On a geographic basis, currency-neutral year-over-year core revenue for the Diagnostics Group posted a double-digit growth in Asia, and were largely flat in the Americas and Europe versus the year-ago period.

從地域上看，與去年同期相比，Diagnostics Group 在貨幣中性核心收入同比實現兩位數增長，而在美洲和歐洲則基本持平。

The reported gross margin for the first quarter of 2023 was 53.5% on a GAAP basis and compares to 57.5% in Q1 of 2022. The year-over-year gross margin decline was mainly due to lower COVID-related sales, unfavorable product mix and higher cost raw materials. The gross margin this year was further impacted by a higher-than-anticipated percentage of instrument sales versus reagents, as well as from the lower-than-forecasted revenue in the Life Science Group.

按 GAAP 計算，2023 年第一季度報告的毛利率為 53.5%，而 2022 年第一季度為 57.5%。毛利率同比下降主要是由於與 COVID 相關的銷售額下降、不利的產品組合和原料成本較高。今年的毛利率進一步受到儀器銷售額相對於試劑的百分比高於預期，以及生命科學集團收入低於預期的影響。

In addition, we were not able to fully recover the higher inflationary costs this year as the increases in certain raw materials and elevated logistics costs were not fully recovered in selling prices. Amortization related to prior acquisitions recorded in cost of goods sold was $4.3 million compared to $4.5 million in Q1 of 2022.

此外，我們無法完全收回今年較高的通脹成本，因為某些原材料的增加和高漲的物流成本並未在銷售價格中完全收回。記錄在已售商品成本中的與先前收購相關的攤銷為 430 萬美元，而 2022 年第一季度為 450 萬美元。

SG&A expenses for Q1 of 2023 were $225.6 million or 33.3% of sales, compared to $196.7 million or 28.1% in Q1 of 2022. The increase in SG&A expenses was driven by higher employee-related expenses, a restructuring charge and higher discretionary spend. Total amortization expense related to acquisitions recorded in SG&A for the quarter was $1.7 million, versus $1.8 million in Q1 of 2022.

2023 年第一季度的 SG&A 費用為 2.256 億美元，佔銷售額的 33.3%，而 2022 年第一季度為 1.967 億美元，佔銷售額的 28.1%。SG&A 費用的增加是由於員工相關費用增加、重組費用和可自由支配支出增加。本季度記錄在 SG&A 中的與收購相關的總攤銷費用為 170 萬美元，而 2022 年第一季度為 180 萬美元。

Research and development expense in the first quarter was $75 million, or 11.1% of sales, compared to $59.5 million or 8.5% of sales in Q1 of 2022. The year-over-year increase was due to increased employee-related expenses following the Curiosity acquisition in the third quarter of 2022, higher project-related spend and the restructuring costs.

第一季度的研發費用為 7500 萬美元，佔銷售額的 11.1%，而 2022 年第一季度為 5950 萬美元，佔銷售額的 8.5%。同比增長是由於好奇號之後與員工相關的費用增加2022 年第三季度的收購、更高的項目相關支出和重組成本。

Q1 operating income was $61.9 million or 9.1% of sales, compared to $146.4 million or 20.9% of sales in Q1 of 2022. Looking below the operating line, the change in fair market value of equity securities holdings which are substantially related to Bio-Rad's ownership of Sartorius AG shares, negatively impacted the reported results by $17.5 million.

第一季度營業收入為 6190 萬美元，佔銷售額的 9.1%，而 2022 年第一季度為 1.464 億美元，佔銷售額的 20.9%。從營業線下方看，與 Bio-Rad 的主要相關的股權證券持有的公允市場價值變化Sartorius AG 股票的所有權，對報告的結果產生了 1750 萬美元的負面影響。

During the quarter, interest and other income resulted in net other income of $40.4 million compared to net other income of $30.7 million last year. Q1 of 2023 included a $34.8 million dividend from Sartorius versus $31.6 million dividend in the first quarter of 2022. The effective tax rate for the first quarter of 2023 was 18.7% compared to 22.9% for the same period in 2022. The effective tax rate reported in Q1 of 2023 was primarily affected by geographical mix of earnings.

本季度，利息和其他收入導致其他淨收入為 4040 萬美元，而去年其他淨收入為 3070 萬美元。 2023 年第一季度包括 Sartorius 的 3480 萬美元股息，而 2022 年第一季度為 3160 萬美元。2023 年第一季度的有效稅率為 18.7%，而 2022 年同期為 22.9%。報告的有效稅率2023 年第一季度主要受收益地域組合的影響。

The effective tax rate reported in Q1 of 2022 was primarily affected by an unrealized loss in equity securities. Reported net income for the first quarter was $69 million, or $2.32 diluted earnings per share, compared to a loss of $3.367 billion or $112.50 diluted loss per share in Q1 of 2022. This change from last year is largely related to changes in the valuation of the Sartorius Holdings.

2022 年第一季度報告的實際稅率主要受到股權證券未實現虧損的影響。第一季度報告的淨收入為 6900 萬美元，即每股攤薄收益 2.32 美元，而 2022 年第一季度為虧損 33.67 億美元，即每股攤薄虧損 112.50 美元。與去年相比，這一變化主要與估值變化有關賽多利斯控股公司。

Moving on to the non-GAAP results. Looking at the results on a non-GAAP basis, we have excluded certain atypical and unique items that impacted both the gross and operating margins as well as other income. These items are detailed in the reconciliation table in the press release. Looking at the non-GAAP results for the first quarter, in cost of goods sold, we have excluded $4.3 million of amortization of purchased intangibles and a small restructuring expense.

轉到非 GAAP 結果。在非 GAAP 基礎上查看結果，我們排除了某些影響毛利率和營業利潤率以及其他收入的非典型和獨特項目。這些項目在新聞稿的調節表中有詳細說明。查看第一季度的非 GAAP 結果，在銷售商品成本中，我們已排除 430 萬美元的已購無形資產攤銷和小額重組費用。

These exclusions moved the gross margin from 53.5% for the first quarter of 2023 to a non-GAAP gross margin of 54.2%, versus 58.2% in Q1 of 2022. Non-GAAP SG&A in the first quarter of 2023 was 31.3% versus 27.2% in Q1 of 2022. In SG&A, on a non-GAAP basis, we have excluded amortization of purchased intangibles of $1.7 million, an in vitro diagnostic registration fee in Europe for previously approved products of $1.9 million, acquisition-related costs of $800,000 and $9 million of restructuring-related expenses.

這些排除使毛利率從 2023 年第一季度的 53.5% 提高到 54.2% 的非 GAAP 毛利率，而 2022 年第一季度為 58.2%。2023 年第一季度的非 GAAP SG&A 為 31.3% 對 27.2%在 2022 年第一季度。在 SG&A 中，在非 GAAP 的基礎上，我們排除了 170 萬美元的已購無形資產的攤銷，先前批准的產品在歐洲的體外診斷註冊費 190 萬美元，與收購相關的成本 80 萬美元和 9 美元萬的重組相關費用。

Non-GAAP R&D expense in the first quarter of 2023 was 10.4% versus 8.5% in Q1 of 2022. In R&D, on a non-GAAP basis, we have excluded $4.2 million of restructuring expenses. The cumulative sum of these non-GAAP adjustments result in moving the quarterly operating margin from 9.1% on a GAAP basis to 12.4% on a non-GAAP basis. This non-GAAP operating margin compares to a non-GAAP operating margin of 22.4% in Q1 of 2022.

2023 年第一季度的非 GAAP 研發費用為 10.4%，而 2022 年第一季度為 8.5%。在研發方面，在非 GAAP 基礎上，我們排除了 420 萬美元的重組費用。這些非 GAAP 調整的累積總和導致季度營業利潤率從 GAAP 基礎上的 9.1% 上升到 non-GAAP 基礎上的 12.4%。這一非 GAAP 營業利潤率與 2022 年第一季度 22.4% 的非 GAAP 營業利潤率相比。

We have also excluded certain items below the operating line, which are the decrease in value of the Sartorius equity securities and loan receivable holdings of $17.5 million, and about a $1 million loss associated with venture investments. The non-GAAP effective tax rate for the first quarter of 2023 was 20.9% compared to 19.6% for the same period in 2022. The higher rate in 2023 was driven by geographical mix of earnings and lower compensation-related deductions.

我們還排除了運營線以下的某些項目，即 Sartorius 股票和應收貸款價值減少 1750 萬美元，以及與風險投資相關的約 100 萬美元損失。 2023 年第一季度的非美國通用會計準則有效稅率為 20.9%，而 2022 年同期為 19.6%。2023 年較高的稅率是由收入的地域組合和較低的薪酬相關扣除所推動的。

And finally, non-GAAP net income for the first quarter of 2023 was $99.4 million or $3.34 diluted earnings per share, compared to $151.5 million or diluted earnings per share of $5.02 in Q1 of 2022. Moving on to the balance sheet. Total cash and short-term investments at the end of Q1 was $1.857 billion compared to $1.796 billion at the end of 2022. The change in cash and short-term investments from the fourth quarter of 2022 was primarily due to the change in working capital.

最後，2023 年第一季度的非 GAAP 淨收入為 9940 萬美元或攤薄後每股收益 3.34 美元，而 2022 年第一季度為 1.515 億美元或攤薄後每股收益 5.02 美元。轉到資產負債表。第一季度末的現金和短期投資總額為 18.57 億美元，而 2022 年底為 17.96 億美元。自 2022 年第四季度以來現金和短期投資的變化主要是由於營運資金的變化。

Inventory at the end of Q1 reached $752.9 million from $719.3 million in the prior quarter. The higher inventory level was driven mainly by rebuilding of finished goods safety stock for certain instruments. In addition, we are rebalancing inventory levels as we complete the transition of some of our manufacturing. We did not purchase any shares of our stock during the first quarter. But as we have done in recent years, coming out of blackout periods, we will continue to be opportunistic with share buybacks, particularly when we believe there is a significant dislocation in the valuation of our stock.

第一季度末的庫存從上一季度的 7.193 億美元增至 7.529 億美元。較高的庫存水平主要是由於某些儀器的成品安全庫存重建所致。此外，隨著我們完成部分製造業的轉型，我們正在重新平衡庫存水平。我們在第一季度沒有購買任何股票。但正如我們近年來所做的那樣，在停電期結束後，我們將繼續在股票回購方面投機取巧，尤其是當我們認為我們的股票估值存在重大錯位時。

To that end, we have over $200 million available to deploy under the current Board authorized program. For the first quarter of 2023, net cash generated from operating activities was $98.1 million, which compares to $50.5 million in Q1 of 2022. This increase mainly reflects changes in working capital. The adjusted EBITDA for the first quarter of 2023 was $148.5 million or 21.9% of sales, and excluding the Sartorius dividend, was 16.8%. The adjusted EBITDA in Q1 of 2022 was $215.4 million or 30.8% of sales, and excluding the Sartorius dividend was 26.3%.

為此，我們有超過 2 億美元可根據當前的董事會授權計劃進行部署。 2023 年第一季度，經營活動產生的現金淨額為 9810 萬美元，而 2022 年第一季度為 5050 萬美元。這一增長主要反映了營運資金的變化。 2023 年第一季度調整後的 EBITDA 為 1.485 億美元，佔銷售額的 21.9%，不包括 Sartorius 股息，為 16.8%。 2022 年第一季度調整後的 EBITDA 為 2.154 億美元，佔銷售額的 30.8%，不包括 Sartorius 股息為 26.3%。

Net capital expenditures for the first quarter of 2023 were $35.7 million, and depreciation and amortization for the first quarter was $35.6 million. Moving on to the non-GAAP guidance. Taking into account the macroeconomic factors as well as our continued operational transformation initiatives, we are revising our 2023 financial outlook as follows: We are now guiding currency-neutral revenue growth in 2023 to be about 4.5% versus 6% to 7% previously. For the full year, we estimate currency-neutral revenue growth, excluding COVID-related sales, to be about 8.5% versus 10% to 11% in our prior guidance.

2023 年第一季度的淨資本支出為 3570 萬美元，第一季度的折舊和攤銷為 3560 萬美元。轉到非 GAAP 指南。考慮到宏觀經濟因素以及我們持續的運營轉型舉措，我們對 2023 年的財務前景進行瞭如下修訂：我們現在將 2023 年的貨幣中性收入增長率指導為 4.5% 左右，而此前為 6% 至 7%。對於全年，我們估計貨幣中性收入增長（不包括與 COVID 相關的銷售額）約為 8.5%，而我們之前的指導為 10% 至 11%。

We expect the first half of 2023 core growth to be between 6.5% and 7% over the first half of 2022, and about 10% core growth in the second half of the year over the second half of 2022. The Life Science Group year-over-year currency-neutral revenue growth is expected to be about 3% versus 8% to 9%, and excluding COVID-related sales, the Life Science Group growth is projected to be about 11% versus 16% to 18% in our prior guidance.

我們預計2023年上半年核心增速較2022年上半年在6.5%至7%之間，下半年核心增速較2022年下半年在10%左右。生命科學集團年-全年貨幣中性收入增長預計約為 3%，而 8% 至 9%，不包括與 COVID 相關的銷售，生命科學集團的增長預計約為 11%，而我們之前的預測為 16% 至 18%指導。

For the first half of 2023, we expect for the Life Science Group about 9.5% core growth over the first half of 2022 and about 12.5% core growth for the second half of the year over the second half of 2022. For the Diagnostics Group, we estimate currency-neutral revenue growth of about 6% versus 5% previously, as we are seeing improved demand dynamics in 2023. Excluding COVID-related sales, the Diagnostics Group growth is projected between 6% and 6.5% versus 5% to 5.5% in our prior guidance.

對於 2023 年上半年，我們預計生命科學集團在 2022 年上半年的核心增長約為 9.5%，在 2022 年下半年的核心增長約為 12.5%。對於診斷集團，由於我們看到 2023 年的需求動態有所改善，我們估計與貨幣無關的收入增長約為 6%，而此前為 5%。不計入與 COVID 相關的銷售額，診斷集團的增長預計在 6% 至 6.5% 之間，而此前為 5% 至 5.5%在我們之前的指導中。

For the first half of 2023, we expect for the Diagnostics group about 4.5% core growth over the first half of 2022 and about 8% core growth for the second half of the year over the second half of 2022. Full year non-GAAP gross margin is now projected to gradually improve throughout 2023 and be between 55% and 55.5% for the full year.

對於 2023 年上半年，我們預計診斷部門的核心增長將比 2022 年上半年增長約 4.5%，下半年的核心增長將比 2022 年下半年增長約 8%。全年非 GAAP 總收入現在預計利潤率將在整個 2023 年逐步提高，全年將在 55% 至 55.5% 之間。

For the first half of the year, we now anticipate gross margin to be between 54.5% and 55% and for the second half of the year to be between 55.5% and 56%. We now project full year non-GAAP operating margin of approximately 17.5% versus 19.5% in our prior guidance, as we plan to focus on expense management for the remainder of the year.

對於今年上半年，我們現在預計毛利率在 54.5% 和 55% 之間，下半年在 55.5% 和 56% 之間。我們現在預計全年非 GAAP 營業利潤率約為 17.5%，而我們之前的指導為 19.5%，因為我們計劃在今年剩餘時間專注於費用管理。

For the first half of the year, we expect operating margin to be about 14% and reaching 21% for the second half of 2023. And full year adjusted EBITDA margin is expected to be about 23%, versus 25% in our prior guidance. For the first half of the year, we expect adjusted EBITDA margin to be about 21%, and in the second half of the year to be about 25%.

今年上半年，我們預計營業利潤率約為 14%，到 2023 年下半年將達到 21%。全年調整後的 EBITDA 利潤率預計約為 23%，而我們之前的指引為 25%。上半年，我們預計調整後的 EBITDA 利潤率約為 21%，下半年約為 25%。

We are also revising our targeted 2021 to 2025 currency-neutral compounded annual core revenue growth rate to be 8%, versus our previous target of 8.9%. For the Life Science business, we are now targeting about 12.4% between 2021 and 2025, versus our prior expectations of approximately 13.9%. For Clinical Diagnostics business, we now expect 4.4% versus 4.6% previously. Our gross margin in 2025 is targeted to be about 57% versus our previous target of 59%, and our adjusted EBITDA for 2025 is targeted to be about 26% versus our previous target of 28%.

我們還將 2021 年至 2025 年的目標貨幣中性複合年核心收入增長率修改為 8%，而我們之前的目標為 8.9%。對於生命科學業務，我們現在的目標是在 2021 年至 2025 年之間達到約 12.4%，而我們之前的預期約為 13.9%。對於臨床診斷業務，我們現在預計為 4.4%，而之前為 4.6%。我們 2025 年的毛利率目標是 57% 左右，而我們之前的目標是 59%，我們調整後的 2025 年 EBITDA 目標是 26% 左右，而我們之前的目標是 28%。

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

我們準備好的發言到此結束，現在我們將開通電話以回答您的問題。操作員？

(Operator Instructions) The first question is from the line of Brandon Couillard with Jefferies.

（操作員說明）第一個問題來自 Jefferies 的 Brandon Couillard。

I'll just start with the '23 guidance [which is that] on the top line. Can you help us bridge the components and the puts and takes between Russia weakness, early-stage biopharma, lower process media demand? And secondarily, what gives you the confidence in terms of the second half acceleration on the top line?

我將從頂行的 23 年指南 [即] 開始。你能幫助我們彌合俄羅斯疲軟、早期生物製藥、較低的工藝介質需求之間的組件和看跌期權嗎？其次，是什麼讓你有信心在下半場加速上線？

Brandon, it's Andy, actually. So maybe I'll just walk through the answer to that. And you did capture the big levers in (technical difficulty) once out of Russia, which has had a meaningful impact. Biopharma softness, which did have some impact, particularly in the kind of, let's call it, emerging biopharma companies and the financial access to capital in Q1, which flowed through to broad demand -- broader kind of slowdown in demand for our Life Science products.

布蘭登，實際上是安迪。所以也許我會簡單介紹一下這個問題的答案。一旦離開俄羅斯，你確實抓住了（技術困難）的大槓桿，這產生了有意義的影響。生物製藥的疲軟確實產生了一些影響，特別是在我們稱之為新興生物製藥公司和第一季度獲得資本的金融渠道方面，這影響到廣泛的需求——對我們生命科學產品的需求更廣泛的放緩.

The process chrom story is not so much an emerging biopharma story as much as I think we've finally now just seen some of the effect of the overall inventory rebalancing that has been going on in the industry, and we had not been seeing that previously.

工藝鉻的故事與其說是一個新興的生物製藥故事，不如說是我認為我們現在終於看到了行業中一直在進行的整體庫存重新平衡的一些影響，而我們以前沒有看到過.

I'd say the last 2 points to highlight on the revenue bridge would be a slower pace of back order reduction, which -- and I don't think we're seeing we're able to capture everything that we initially estimated. And related to our gene expression business, just generally a softer demand that is being experienced this year against the very significant installed base that we had previously put out there over the last 2 or 3 years.

我想說的是，在收入橋樑上要強調的最後兩點是減少延期交貨的速度較慢，而且我認為我們沒有看到我們能夠捕捉到我們最初估計的所有內容。與我們的基因表達業務相關的是，與我們過去 2 或 3 年之前在那裡推出的非常重要的安裝基礎相比，今年的需求普遍疲軟。

Okay. Maybe in terms of the '25 targets, I mean, just generally, conceptually, why update those now, especially given what seems to be all the operational challenges you faced in the quarter and macro variables that you discussed on the call? Number two, can you share what the implied targets would be in terms of revenue dollars in '25? And if my math is right, would that be just kind of 8% organic CAGR in the next 3 years, to get there?

好的。也許就 '25 目標而言，我的意思是，一般來說，從概念上講，為什麼現在更新這些目標，特別是考慮到您在本季度面臨的所有運營挑戰以及您在電話會議上討論的宏觀變量？第二，你能分享一下 25 年收入美元的隱含目標是什麼嗎？如果我的計算是正確的，那麼在未來 3 年內，有機複合年增長率會達到 8% 嗎？

Yes, Brandon, thanks for the question. So first of all, we are updating the 2025 based on our latest view and in light of the changing environment that we are experiencing. Obviously, as Andy mentioned just now, the entire kind of biotechnology sector and the funding, and that was one of the growth drivers that we called out during the Investor Day, and we see headwind there.

是的，布蘭登，謝謝你的提問。因此，首先，我們正在根據我們的最新觀點並根據我們正在經歷的不斷變化的環境更新 2025 年。顯然，正如安迪剛才提到的，整個生物技術領域和資金，這是我們在投資者日期間呼籲的增長動力之一，我們看到了那裡的逆風。

The overall inflationary kind of cost that we today believe is here to stay. I mean I'm not sure that it is transitory, and that was not taken into account when we presented during the Investor Day. So we are layering on, what does that mean for the next 2 to 3 years. And this, we do believe that it merits an update to the 2025 target model in order to set the expectation.

我們今天認為的總體通貨膨脹成本將持續存在。我的意思是我不確定它是暫時的，而且我們在投資者日展示時沒有考慮到這一點。所以我們正在分層，這對未來 2 到 3 年意味著什麼。而且，我們確實認為值得更新 2025 年目標模型以設定預期。

With that said, it doesn't change our thinking in terms of the overall transformation that we are working on and everything that we still plan to achieve and all the kind of new instruments that are in the pipeline and the development. And so that doesn't change our thinking. It's more kind of, I would argue, macro-driven, and we have to kind of communicate accordingly.

話雖如此，它並沒有改變我們對我們正在進行的整體轉型、我們仍計劃實現的一切以及所有正在籌備和開發中的新工具的想法。所以這不會改變我們的想法。我認為，這更像是宏觀驅動的，我們必須相應地進行溝通。

In terms of the growth, yes, I mean, so your math is correct, it's about -- on a core basis, it's about 8%. And that's the update. If you think about the currency neutral basis, it's about $3.4 billion for 2025 on a currency-neutral basis.

就增長而言，是的，我的意思是，所以你的數學是正確的，大約是——在核心基礎上，大約是 8%。這就是更新。如果考慮貨幣中性基礎，到 2025 年在貨幣中性基礎上約為 34 億美元。

Got it. Last 1 for Simon [maybe]. Your closest competitor in digital PCR earlier today talked about a market CAGR the next 3 years in the 30% to 40% range. I just want to see if that's consistent with your view in terms of how you would assess the market and if you view the opportunity and the growth outlook any differently for your business?

知道了。西蒙的最後 1 個[也許]。今天早些時候，您在數字 PCR 領域最接近的競爭對手談到未來 3 年的市場複合年增長率在 30% 到 40% 之間。我只是想看看這是否與您對如何評估市場的看法一致，以及您對業務的機會和增長前景是否有任何不同的看法？

There's definitely emerging competition in digital PCR, without doubt. And we observe that very closely, and we take it very seriously. And as we said before, I think it really is also helping to significantly expand the market opportunity in ddPCR. And when we hear the commentary and the disclosures from our competitors, and we kind of overlay that with the growth trajectory that we see in our own business, we think it's pretty consistent overall, and we think it's playing out the way that we thought it would.

毫無疑問，數字 PCR 領域肯定存在新的競爭。我們非常仔細地觀察，我們非常認真地對待它。正如我們之前所說，我認為它確實也有助於顯著擴大 ddPCR 的市場機會。當我們聽到競爭對手的評論和披露時，我們將其與我們在自己業務中看到的增長軌跡疊加起來，我們認為它總體上非常一致，並且我們認為它正在以我們認為的方式發揮作用會。

And then when we think about our overall position today, we talked about how the demand for the QX600 platform and customer acceptance is really fantastic. So we're feeling good about that. And in the biopharma segment, notwithstanding some of the market softness that we're seeing at the present time, we've got a very strong position there. We think the market's ultimately got very long legs. And I think we've got quite a nice moat around that business. We've got a really formidable portfolio of high-performance assays.

然後當我們考慮我們今天的整體定位時，我們談到了對 QX600 平台的需求和客戶接受度是多麼的好。所以我們對此感覺很好。在生物製藥領域，儘管我們目前看到一些市場疲軟，但我們在那裡擁有非常強大的地位。我們認為市場最終會站得很長。而且我認為我們在該業務周圍有一條很好的護城河。我們擁有真正強大的高性能檢測產品組合。

And we know in this segment that performance really, really matters. And our QX One platform is really best-in-class in terms of throughput and automation. And then as was mentioned earlier, we've already got the QX Continuum platform that's in development, and I can tell you that program is running quite nicely. So when we think about the overall dynamics here, I don't think anything has fundamentally changed since we discussed this at Investor Day.

我們知道在這個細分市場中，性能真的非常重要。我們的 QX One 平台在吞吐量和自動化方面確實是一流的。然後正如前面提到的，我們已經有了正在開發中的 QX Continuum 平台，我可以告訴你該程序運行得非常好。因此，當我們考慮這裡的整體動態時，我認為自從我們在投資者日討論這個問題以來沒有任何根本改變。

The next question is from the line of Patrick Donnelly with Citi.

下一個問題來自花旗的 Patrick Donnelly。

Maybe a similar [remaining] questions. On the process chrom side, it sounds like you saw a pretty good slowdown in the quarter. Andy, I think you called out timing as an impact, but obviously, the guidance coming down pretty significantly for the year. How much do you think timing versus change in demand? What are you seeing in the market? And what's the ability to execute in the backdrop of, again, if the demand is holding up? Is it just an execution issue? Maybe just kind of give us a little more color there.

也許類似的 [剩餘] 問題。在過程鉻方面，聽起來您在本季度看到了相當不錯的放緩。安迪，我認為你將時間稱為影響，但顯然，今年的指導意見大幅下降。您認為時機與需求變化有多大關係？你在市場上看到了什麼？在需求持續增長的背景下，執行能力如何？這只是一個執行問題嗎？也許只是給我們多一點顏色。

Yes. I mean, timing is always a challenge for that business, and I'm sure you guys -- you know that well. But -- and in Q1, in particular, is a tough compare to prior year for us. So we -- that really wasn't a great surprise from that point of view. Looking forward, I think we are just starting to experience some of the kind of -- we're calling it inventory rebalancing and just a more prudent or conservative approach from the end market as we go forward.

是的。我的意思是，時機對這項業務來說總是一個挑戰，我相信你們——你們很清楚這一點。但是 - 特別是在第一季度，與我們去年相比是艱難的。所以我們 - 從那個角度來看，這真的不是一個很大的驚喜。展望未來，我認為我們才剛剛開始經歷某種——我們稱之為庫存再平衡，只是在我們前進的過程中從終端市場採取更謹慎或保守的方法。

And we feel it's prudent to reflect that in the way we're thinking about our guidance this year. Underlying all of that, though, is a still extremely solid and consistent demand for the process chrom business. The new products we've introduced have been exceedingly well received, and we're starting to see uptake and traction on those. So our go-forward thesis on process chrom (technical difficulty) We're finally seeing some of the effect that I think others have been calling out for a while. We're finally seeing a little bit of that flow through to our business now.

我們認為在我們考慮今年的指導方針的方式中反映這一點是明智的。然而，所有這一切的背後，是對工藝鍍鉻業務的極其穩固和一致的需求。我們推出的新產品受到了極大的歡迎，我們開始看到人們對這些產品的接受和關注。所以我們關於 process chrom（技術難度）的前進論文我們終於看到了一些我認為其他人已經呼喚了一段時間的效果。我們現在終於看到了一點點流向我們的業務。

Okay. That's helpful. And Ilan, maybe on the margin side, I think you called out some maybe more aggressive expense management. As you think about that first half to second half ramp in the margins, can you just talk about what levers you guys are pulling, the visibility into hitting those numbers, [again] a pretty good step up from first half to the second?

好的。這很有幫助。而伊蘭，也許在利潤方面，我認為你提出了一些可能更積極的費用管理。當你想到上半場到下半場的利潤率上升時，你能談談你們正在拉動什麼槓桿，達到這些數字的可見性，[再次] 從上半場到下半場的相當不錯的進步嗎？

Yes. Thank you, Patrick. I appreciate the question. So we have several initiatives that are in flight, and it's part of our kind of plan already. We anticipate that we will be able to realize it in the second half, and it will roll over also into next year. And these are obviously multiple initiatives that we are pretty confident that we will be able to achieve, it's part of the guidance.

是的。謝謝你，帕特里克。我很欣賞這個問題。所以我們有幾項計劃正在進行中，這已經是我們計劃的一部分了。我們預計我們將能夠在下半年實現它，並且它也將延續到明年。這些顯然是我們非常有信心能夠實現的多項舉措，這是指南的一部分。

Obviously, it's baked in. And obviously, the goal there is to mitigate the softness that we guided for on the top line, as well as some aspect of the gross margin. And I think that we have a very good plan to achieve it, and it's mainly focused on the second half of this year.

顯然，它已經融入其中。顯然，目標是減輕我們在頂線指導的疲軟，以及毛利率的某些方面。我認為我們有一個很好的計劃來實現它，主要集中在今年下半年。

Okay. And then maybe on the long-term guide, Life Science came down, I think, 150 bps. When you think about that change to the growth build in terms of the algorithm you guys have behind the scenes there, what -- I guess, what segments were the biggest step down? I mean, did digital PCR changed at all?

好的。然後也許在長期指南中，生命科學下降了 150 個基點。當你根據你們在幕後的算法考慮增長構建的變化時，我猜，哪些部分是最大的下降？我的意思是，數字 PCR 完全改變了嗎？

Was it process chrom? If you can just help us think about what softened in that algorithm is I think when you guys gave the guide, we didn't get a ton of building blocks. So just trying to figure out what areas. Maybe it was all of them, but just if you could help us out there, it would be helpful.

它是處理鉻嗎？如果你們能幫我們想想那個算法的軟化是什麼，我想當你們給出指南時，我們沒有得到大量的構建塊。所以只是想弄清楚哪些領域。也許是他們所有人，但如果你能幫助我們，那將會很有幫助。

Yes, Patrick, let me take a shot at this question. I think what we determined is that the biopharma softness is contributing to life science growth at a slower pace, is kind of the simplest way to think about it. And with the kind of shake up that's gone on a little bit in the emerging smaller biotech companies, where we've had meaningful business and very strong growth.

是的，帕特里克，讓我試一試這個問題。我認為我們確定的是，生物製藥的軟性正在以較慢的速度促進生命科學的增長，這是一種最簡單的思考方式。隨著新興的小型生物技術公司發生了一些變化，我們在這些公司擁有有意義的業務和非常強勁的增長。

And just it's that effect flowing through over the next couple of years. And I wouldn't think of it as anything more than that at this point in time. Just to reiterate that the fundamental pillars in the Life Science business on process chromatography and Droplet Digital PCR and then related products, are very solid.

正是這種影響在接下來的幾年裡流傳開來。在這個時間點，我不會認為它比這更多。重申一下，生命科學業務在過程色譜和液滴數字 PCR 以及相關產品方面的基本支柱非常穩固。

So we're, I think, prudently putting forward that we see a slower growth as a result.

因此，我認為，我們謹慎地提出我們看到增長放緩。

I think as well, Russia wasn't part of the initial calculus, and now it is. It's not a massive impact, but it does make a dent, and that flows through to the projection as well.

我也認為，俄羅斯不是最初計算的一部分，現在是了。這不是一個巨大的影響，但它確實會產生影響，並且也會影響到投影。

The next question is from the line of Dan Leonard with Credit Suisse.

下一個問題來自瑞士信貸的 Dan Leonard。

I think Brandon asked this question, but I'm not sure I caught the answer. The revised guidance still assumes a meaningful sales acceleration in 2H. The fourth quarter comp is tough, macro is not getting better. So what are you looking at to support that second half ramp?

我想 Brandon 問了這個問題，但我不確定我是否找到了答案。修訂後的指引仍假設 2H 的銷售將出現有意義的加速。第四節比賽很艱難，宏觀經濟並沒有好轉。那麼，您希望通過什麼來支持下半場斜坡？

Yes. So we do see a slightly lower growth projection from the Life Science business, which I think we just reflected in the commentary, which is some -- partially offset by an improved performance in the clinical business in the second half. We're seeing actually fairly robust demand for our clinical systems that we expect to continue.

是的。因此，我們確實看到生命科學業務的增長預測略有下降，我認為我們只是在評論中反映了這一點，這部分被下半年臨床業務的業績改善所抵消。實際上，我們看到對我們希望繼續的臨床系統的需求相當強勁。

So you've got a little bit of a mix shift playing out there on -- across the 2 business groups, which will further help support the second half performance, but has a small mix impact on margin, which we're also reflecting because of the differential between the 2 business groups.

因此，兩個業務部門正在發生一些混合轉變，這將進一步幫助支持下半年的業績，但對利潤率的混合影響很小，我們也反映了這一點，因為2 個業務組之間的差異。

Yes, and Dan, I will add to that also that from there, obviously, it flows throughout the P&L. On the gross margin, we expect it to improve as the year progresses. As well as we have a list of initiatives that are in flight and some are scheduled to start that will benefit the second half.

是的，丹，我還要補充一點，顯然，它從那裡開始貫穿整個損益表。在毛利率方面，我們預計它會隨著時間的推移而改善。此外，我們還有一份正在進行的計劃清單，其中一些計劃將啟動，這將有利於下半年。

We've got 1 final factor, which is the burndown of backlog in the second half. And so we have much better line of sight to the phasing of that in the second half, and that will also contribute to the second half growth. And QX600 on the Life Science side is, it's a very robust pipeline.

我們有 1 個最終因素，即下半年積壓的燃盡。因此，我們對下半年的分階段有了更好的視線，這也將有助於下半年的增長。而生命科學方面的 QX600 是一條非常強大的管道。

Yes. So on the QX600, yes, exactly, Andy. I mean, it's about the manufacturing kind of volume, that we plan to add a much higher volume in the second half than in the first half. And that's obviously a nice contribution, not only about the top line, but it's above average margin that flows through.

是的。所以在 QX600 上，是的，安迪。我的意思是，這是關於製造業的數量，我們計劃在下半年增加比上半年更多的數量。這顯然是一個很好的貢獻，不僅是關於頂線，而且高於流過的平均利潤率。

Okay. And then my follow-up question, Andy, you commented on softer demand for gene expression against a significant installed base. Why isn't that a multiyear problem?

好的。然後是我的後續問題，安迪，你評論了對重要安裝基礎的基因表達的軟需求。為什麼這不是一個多年的問題？

Well, I think as we move forward, it is an element. I think it's a good point you're making there, and it's an element that is factored into the Life Science forward-looking view on the '25 trajectory, right?

好吧，我認為隨著我們的前進，這是一個要素。我認為你在那裡提出的觀點很好，而且它是生命科學對 25 年軌蹟的前瞻性觀點中的一個因素，對嗎？

And it is a factor that is hard to really quantify in the market after you've placed all these instruments over the last 2-plus years, 3 years. So it's a good callout, and it's a fair point, but it is considered in our '25 reguide for Life Science.

在過去 2 年多、3 年內放置了所有這些工具之後，這是一個很難在市場上真正量化的因素。所以這是一個很好的標註，這是一個公平的觀點，但它在我們的 25 年生命科學指南中得到了考慮。

The next question is from the line of Jack Meehan with Nephron Research.

下一個問題來自 Nephron Research 的 Jack Meehan。

First question is on the Russian sanctions. Can you just quantify for us the impact that's now embedded in your forecast? And when did it start? And when -- just, I guess when will it annualize?

第一個問題是關於俄羅斯的製裁。您能否為我們量化您的預測中現在包含的影響？什麼時候開始的？什麼時候——只是，我猜它什麼時候會年化？

Yes. Thank you, Jack. I appreciate the question. Historically, we called out that Russia was between 1% and 2% of revenue on an annual basis. Obviously, the sanctions kept accumulating. And when we started the year, we still had a nice pipeline.

是的。謝謝你，傑克。我很欣賞這個問題。從歷史上看，我們指出俄羅斯每年佔收入的 1% 到 2%。顯然，制裁不斷累積。當我們開始這一年時，我們仍然有一個很好的管道。

And I would say that about 1/3 of our projection -- more than 1/3 of the projection for this year was impacted by incremental sanctions that we had to revise it this quarter. These are not the prior sanctions. These are incremental sanctions that prevent us from shipping more than 1/3 of our projected or prior projection for this year.

我會說我們預測的大約 1/3 - 今年超過 1/3 的預測受到我們必須在本季度修改的增量製裁的影響。這些不是先前的製裁。這些是增量製裁，阻止我們出貨超過我們今年預計或先前預測的 1/3。

Got it. And then in the Diagnostics business, so it sounded like regionally, you did well in Asia. I was just curious if you could comment on what you're seeing here in the U.S. and in Europe. I think I heard largely flat. We've been hearing about better volumes from a lot of the services providers. So just -- just how is that playing through in your U.S. and Europe business?

知道了。然後在診斷業務中，聽起來像是區域性的，你在亞洲做得很好。我只是想知道你是否可以評論你在美國和歐洲看到的情況。我想我聽到的基本上是平的。我們已經從許多服務提供商那裡聽說了更好的交易量。那麼 - 這在您的美國和歐洲業務中如何發揮作用？

Yes. I believe we have Dara, she dialed in remotely. So Dara, I'm not sure, were you able to hear the question?

是的。我相信我們有 Dara，她是遠程撥入的。所以達拉，我不確定，你能聽到這個問題嗎？

Yes. this is Dara here. Ilan, can you hear me okay?

是的。我是達拉。伊蘭，你能聽到我說話嗎？

Yes. Thank you.

是的。謝謝。

Great. So demand is strong in all regions, elevated a bit in Asia Pacific as a consequence of China opening back up with the COVID restrictions lifted in Q1. The actual sales were sort of biased towards Asia Pacific in Q1, so the revenue was biased there, but demand and backlog is similarly sort of higher than historically in EMEA and Americas. So bodes well as we burn down that backlog, [re] placing instruments globally, which increases our installed base.

偉大的。因此，所有地區的需求都很強勁，由於中國在第一季度取消了對 COVID 的限製而重新開放，因此亞太地區的需求有所增加。第一季度的實際銷售額有點偏向亞太地區，因此收入偏向那裡，但 EMEA 和美洲的需求和積壓訂單同樣高於歷史水平。所以預示著我們燒掉積壓的訂單，[重新] 在全球範圍內放置儀器，這增加了我們的安裝基礎。

Great. Then 1 final 1 for Norman. We're in this macro environment, which is evolving a little bit. Your business should be, I think, more defensive when it's all said and done. Just was curious how kind of the evolving landscape might change your philosophy, if at all, when it comes to M&A and what you're seeing in the funnel?

偉大的。然後是諾曼的 1 決賽 1。我們處於這個宏觀環境中，它正在一點點演變。我認為，當一切都說完之後，您的企業應該更具防禦性。只是很好奇，在併購方面以及您在漏斗中看到的內容時，不斷變化的環境會如何改變您的理念（如果有的話）？

Yes. So the funnel remains about the same. Obviously, when you think about kind of valuations coming in, it's a little stickier on the way down. So that's a dynamic that I think we're aware of.

是的。所以漏斗保持不變。顯然，當你考慮進入估值時，它在下跌的過程中有點粘性。所以我認為這是一種我們都知道的動態。

But again, we've got a couple of things in the hopper, and we continue to see it as a viable option for cash deployment as we go forward, to add to the business.

但同樣，我們在料斗中有一些東西，我們繼續將其視為現金部署的可行選擇，以增加業務。

The next question is a follow-up from Brandon Couillard.

下一個問題是 Brandon Couillard 的跟進。

Just to push back on your answer to Patrick's question, I think -- I mean the biopharma exposure you have is only 15%. You're talking about a sliver of that overall market. First I want to make sure I understand that right. And then what's embedded in your outlook for that earlier stage biotech customer base? Could you quantify it in terms of sizing, but also kind of what you're expecting in terms of growth from that market?

只是為了推遲你對帕特里克問題的回答，我認為——我的意思是你對生物製藥的接觸只有 15%。你說的是整個市場的一小部分。首先，我想確保我理解正確。那麼您對早期生物技術客戶群的展望是什麼？您能否根據規模量化它，以及您對該市場增長的預期？

Yes, Brandon, I mean, I don't think we've quantified or segmented our sales within the biopharma segment overall. We've done particularly well in emerging biotech, especially because of cell and gene therapy-based therapeutic development there, in those companies, but the -- so that's more of a broader life science product impact.

是的，布蘭登，我的意思是，我認為我們沒有量化或細分我們在生物製藥領域的整體銷售額。我們在新興生物技術方面做得特別好，特別是因為在這些公司中進行了基於細胞和基因療法的治療開發，但是——所以這更具有更廣泛的生命科學產品影響。

The process chrom is obviously for the much more mid and large sized biopharma companies. And there, I think we're just literally subject to the macros that have been going on across the industry, which we had not seen before, and it's started to show up a bit for us this year. So we've moderated our growth expectations this year, although they're still good, healthy double-digit growth for the bioprocessing side of the business.

工藝鉻顯然適用於更多的中型和大型生物製藥公司。在那裡，我認為我們只是受制於整個行業一直在進行的宏指令，這是我們以前從未見過的，並且今年開始對我們有所影響。因此，我們已經降低了今年的增長預期，儘管它們在生物加工業務方面仍然是良好、健康的兩位數增長。

I'll just maybe add that about 1/3 of our Life Science revenue is contributed from biopharma, but we're pretty overweight in the smaller and emerging biotech companies, whether you're talking about process chromatography, and we've talked about this previously, how our resins really play in these emerging biologic therapeutics. And also in our Life Science portfolio, generally, we see the halo effects in the emerging biotechs, more so than big pharma, which tend to be locked up in really large contracts.

我可能會補充說，我們大約 1/3 的生命科學收入來自生物製藥，但我們在較小的和新興的生物技術公司中相當超重，無論你是在談論過程色譜，而且我們已經討論過此前，我們的樹脂在這些新興生物療法中的真正作用。而且在我們的生命科學投資組合中，一般來說，我們看到新興生物技術的光環效應比大型製藥公司更明顯，後者往往被鎖定在非常大的合同中。

Okay. Last 1 for Ilan, just to make sure the definitions we understand correctly. Your 25% EBITDA margin target, that includes the Sartorius dividend, I just want to make sure and how much is that dividend contemplated? Is it the $34 million this year or the one from the size of the dividend last year at the Analyst Day, which is much different?

好的。 Ilan 的最後 1，只是為了確保我們正確理解定義。你 25% 的 EBITDA 利潤率目標，其中包括 Sartorius 股息，我只是想確定一下，該股息是多少？是今年的 3400 萬美元還是與去年 Analyst Day 的分紅規模相差很大？

Yes. So we try to compare it kind of apples to apples. And back in the Investor Day, we said that it included about $19 million of dividend. And that's what we assume now, to be consistent.

是的。因此，我們嘗試將其進行同類比較。回到投資者日，我們說它包括大約 1900 萬美元的股息。這就是我們現在假設的，要保持一致。

There are no additional questions waiting at this time. So I'll pass the conference back to the management team for any closing remarks.

目前沒有其他問題等待您回答。因此，我會將會議傳回給管理團隊，聽取任何閉幕詞。

Thank you for joining today's call. We will be at the RBC Capital Markets Global Healthcare Conference in New York later this month. And also in New York, the Jefferies Healthcare Conference in June. As always, we appreciate your interest, and we look forward to connecting soon. Thanks.

感謝您參加今天的電話會議。我們將參加本月晚些時候在紐約舉行的加拿大皇家銀行資本市場全球醫療保健會議。還有 6 月在紐約舉行的 Jefferies Healthcare Conference。一如既往，我們感謝您的關注，我們期待盡快建立聯繫。謝謝。

That concludes the conference call. Thank you for your participation. You may now disconnect your lines.

電話會議到此結束。感謝您的參與。您現在可以斷開線路。