Bio Rad Laboratories Inc (BIO.B) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Bio-Rad Third Quarter 2023 Financial Results Conference Call and Webcast. (Operator Instructions). And please be advised that today's call is being recorded on Thursday, October 26, 2023.

女士們、先生們，午安。謝謝你的支持。歡迎參加 Bio-Rad 2023 年第三季財務業績電話會議和網路廣播。 （操作員說明）。請注意，今天的通話錄音時間為 2023 年 10 月 26 日星期四。

I would now like to turn the conference over to Edward Chung. Head of Investor Relations. Please go ahead.

我現在想把會議交給愛德華·鐘。投資者關係主管。請繼續。

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

大家下午好。感謝您加入我們。今天，我們將回顧 2023 年第三季的財務業績，並提供 Bio-Rad 關鍵業務趨勢的最新資訊。

With me on the call today are Norman Schwartz, our Chief Executive Officer; Ilan Daskal, Executive Vice President and 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.

今天與我一起參加電話會議的是我們的執行長諾曼·施瓦茨 (Norman Schwartz)； Ilan Daskal，執行副總裁兼財務長；安迪·拉斯特（Andy Last），執行副總裁兼營運長； Simon May，生命科學集團總裁；以及臨床診斷集團總裁 Dara Wright。

Before we begin our review, I'd 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. Our actual results may differ materially from these plans, goals 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. The company does not intend to update any forward-looking statements made during the call today.

在我們開始審查之前，我想提醒大家，我們將對管理層的目標、計劃和期望、我們未來的財務表現和其他事項做出前瞻性陳述。這些陳述是基於對未來事件的假設和預期，這些事件存在風險和不確定性。我們的實際結果可能與這些計劃、目標和期望有重大差異。您不應過度依賴這些前瞻性陳述，我鼓勵您查看我們向 SEC 提交的文件，其中我們詳細討論了我們業務中的風險因素。該公司不打算更新今天電話會議中所做的任何前瞻性聲明。

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. Investors should review these reconciliations of the non-GAAP financial measures to comparable GAAP results contained in our earnings release.

最後，我們今天的演講將提及非公認會計原則財務數據，包括淨利潤和稀釋每股收益，這些財務指標並未根據公認會計原則進行定義。投資者應審查非公認會計原則財務指標與我們收益報告中包含的可比較公認會計原則結果的調節。

With that, I will now turn the call over to Andy Last, our Executive Vice President and Chief Operating Officer, to provide an update on Bio-Rad's global operations.

現在，我將把電話轉給我們的執行副總裁兼營運長 Andy Last，以提供 Bio-Rad 全球營運的最新資訊。

Many Thanks, Ed, and good afternoon to everybody, and thank you for joining us. Well, the third quarter of the year fell below our expectations. The ongoing challenges within the BioPharma segment and economic constraints in China continued to drive lower Life Science's performance in the quarter. Clinical Diagnostic sales were weaker than we forecasted, impacted mainly by the softer China market conditions. We still anticipate a strong year-over-year growth with Clinical Diagnostics Group in the fourth quarter.

非常感謝，艾德，大家下午好，感謝您加入我們。嗯，今年第三季的業績低於我們的預期。生物製藥領域持續面臨的挑戰和中國的經濟限制繼續導致生命科學部門本季的業績下滑。臨床診斷銷售低於我們的預期，主要受到中國市場狀況疲軟的影響。我們仍然預計第四季度臨床診斷集團將實現強勁的同比增長。

We continue to successfully maintain focus on tight cost control. And on the supply chain front, we experienced modest constraints in supply for our clinical business, which impacted Q3 sales. Backlog remains on track to meet our year-end expectations.

我們繼續成功地保持對嚴格成本控制的關注。在供應鏈方面，我們的臨床業務供應受到適度限制，這影響了第三季的銷售。積壓訂單仍有望滿足我們的年終預期。

In Q3, we experienced further reduced demand from BioPharma customers for our process chromatography resins and from both BioPharma and smaller biotech customers for our Life Science research projects -- products. The continued tight spending environment in this segment constrained core ddPCR sales, which were roughly flat from the year ago period.

在第三季度，我們經歷了生物製藥客戶對我們的製程色譜樹脂的需求進一步減少，以及生物製藥和小型生物技術客戶對我們生命科學研究計畫產品的需求進一步減少。該細分市場持續緊張的支出環境限制了核心 ddPCR 銷售額，與去年同期大致持平。

Academic and government sales for Life Sciences was strong in the Americas, but showed declines in APAC driven down by China economic and policy constraints. EMEA academic sales were roughly flat, reflecting a soft funding environment in Germany, offset by stronger performance in the other European countries.

美洲生命科學領域的學術和政府銷售強勁，但亞太地區因中國經濟和政策限製而下滑。歐洲、中東和非洲地區的學術銷售大致持平，反映出德國融資環境疲軟，但卻被其他歐洲國家強勁的表現所抵銷。

While ddPCR sales within the quarter were softer than expected as a result of BioPharma spending, we remain very positive on the long-term growth outlook for the platform. During the quarter, we were encouraged by several noteworthy announcements involving ddPCR.

儘管由於生物製藥支出，本季 ddPCR 銷售額低於預期，但我們對該平台的長期成長前景仍然非常樂觀。在本季度，我們對涉及 ddPCR 的幾項值得注意的公告感到鼓舞。

On the clinical testing front, our QX ONE platform has been selected for SMA testing for all newborns in Hong Kong. And here in the U.S., Geneoscopy announced they have published the results of their pivotal CRC-PREVENT clinical trial, reporting the highest sensitivity for detecting colorectal cancer amongst similar tests powered by our QXDx ddPCR platform.

在臨床檢測方面，我們的 QX ONE 平台已被選用於香港所有新生兒的 SMA 檢測。在美國，Geneoscopy 宣布他們已經發布了關鍵 CRC-PREVENT 臨床試驗的結果，報告了在我們的 QXDx ddPCR 平台支援的類似測試中檢測結直腸癌的最高靈敏度。

Additionally, in the U.S., Verily won a major multiyear national wastewater testing contract from the CDC based on our QX600 platform. We see these as contributors to future growth and a strong reinforcement of the versatility and impact of the technology.

此外，在美國，Verily 基於我們的 QX600 平台贏得了 CDC 的一項重要的多年國家廢水檢測合約。我們認為這些對未來的成長做出了貢獻，並有力地增強了該技術的多功能性和影響力。

As highlighted earlier, China was a continued challenging Q3 for our Life Science's business. And unfortunately, the economic constraints have now also impacted our clinical diagnostics business which in the first half of the year has been a positive for us in this region. We have now further constrained our expectations for China for the year-end and look to 2024 before we expect to see signs of recovery.

正如先前所強調的，中國第三季對我們的生命科學業務來說仍然充滿挑戰。不幸的是，經濟限制現在也影響了我們的臨床診斷業務，這在今年上半年對該地區來說是積極的。我們現在進一步限制了對中國年底的預期，預計到 2024 年才會看到復甦的跡象。

Our clinical business overall had a mixed quarter. We saw growth in demand in the U.S. and Europe as expected, which was partially offset by the softness in China. In particular, we were pleased with the continued momentum for our immunohematology and diabetes franchises in the quarter.

我們的臨床業務整體上季度表現好壞參半。我們看到美國和歐洲的需求成長符合預期，但部分被中國的疲軟所抵消。特別是，我們對本季免疫血液學和糖尿病特許經營業務的持續成長勢頭感到高興。

Despite the market challenges of this year, we view our strategy framework as being very solid and our platforms and market opportunities as providing sustainable long-term growth. We continue to focus on driving and improving our execution. And with completion of a single global instance of SAP have now completed a major component of operational improvement.

儘管今年面臨市場挑戰，但我們認為我們的策略框架非常穩固，我們的平台和市場機會提供了可持續的長期成長。我們繼續專注於推動和提高我們的執行力。隨著單一全球實例的完成，SAP 現在已經完成了營運改善的主要組成部分。

Looking to the end of the year, we continue to expect the BioPharma and small biotech company turndown and ongoing constraints in China and Russia to impact the overall growth through our Life Sciences business, although we do expect to see sequentially improved sales in the final quarter of the year. We remain positive on the momentum and continued growth in the Clinical Diagnostics business, although somewhat moderated by the greater market constraints in China as well as ongoing trade restrictions in Russia.

展望今年年底，我們仍然預計生物製藥和小型生物技術公司的衰退以及中國和俄羅斯的持續限制將影響我們生命科學業務的整體增長，儘管我們確實預計最後一個季度的銷售額將連續改善今年的。我們對臨床診斷業務的勢頭和持續成長保持樂觀，儘管受到中國更大的市場限制以及俄羅斯持續的貿易限制的影響。

Thank you. And at this point, I will now pass you to Ilan to review the financial results.

謝謝。現在，我將請您前往宜蘭審查財務業績。

Thank you, Andy. Now I would like to review the results of the third quarter. Net sales for the third quarter of 2023 were $632.1 million which is a decline of 7.1% on a reported basis versus $680.8 million in Q3 of 2022 and a 7.9% decline on a currency-neutral basis. The third quarter year-over-year revenue decline was primarily the result of ongoing weakness in the BioPharma end markets, impacting the sales of our Life Science tools and bioprocessing products. In addition, we experienced weaker demand in China as a result of the macroeconomic environment as well as the local made-in-China initiatives.

謝謝你，安迪。現在我想回顧一下第三季的業績。 2023 年第三季的淨銷售額為 6.321 億美元，以報告數據計算，較 2022 年第三季的 6.808 億美元下降 7.1%，按匯率中性計算下降 7.9%。第三季營收年減主要是由於生物製藥終端市場持續疲軟，影響了我們生命科學工具和生物加工產品的銷售。此外，由於宏觀經濟環境以及當地的中國製造舉措，我們在中國的需求疲軟。

COVID-related sales in Q3 were $300,000 versus about $17.2 million in Q3 last year. Core revenue, which excludes COVID-related sales decreased 5.5% on a currency-neutral basis. On a geographic basis, currency-neutral year-over-year core revenue decreased in Asia and Europe, partially offset by increased sales in the Americas.

第三季與新冠病毒相關的銷售額為 30 萬美元，而去年第三季約為 1,720 萬美元。核心收入（不包括與新冠疫情相關的銷售額）在貨幣中性的基礎上下降了 5.5%。從地理來看，亞洲和歐洲的核心收入（匯率中性）年減，但被美洲銷售額的成長部分抵銷。

Sales of the Life Science Group in the third quarter of 2023 were $263.5 million compared to $317.9 million in Q3 of 2022, which is a decline of 17.1% on a reported basis and a 17.8% decline on a currency-neutral basis. Excluding COVID-related sales, the Life Science Group year-over-year currency-neutral core revenue decreased 13.7% and was primarily driven by lower sales of qPCR, process chromatography, western blotting products and about flat year-over-year ddPCR revenue. Excluding process chromatography sales, the underlying Life Science business decreased 16.7% on a currency-neutral basis versus Q3 of 2022.

生命科學集團 2023 年第三季的銷售額為 2.635 億美元，與 2022 年第三季的 3.179 億美元相比，按報告數據下降 17.1%，按貨幣中性因素計算下降 17.8%。排除與新冠病毒相關的銷售額，生命科學集團在匯率中立的情況下核心收入同比下降了 13.7%，這主要是由於 qPCR、工藝色譜、蛋白質印跡產品銷售額下降以及 ddPCR 收入同比持平所致。不計入工藝色譜銷售額，在匯率中性的基礎上，生命科學業務與 2022 年第三季相比下降了 16.7%。

The Life Science Group revenue, excluding process chromatography and COVID-related sales, decreased 11.6% on a currency-neutral basis. On a geographic basis, Life Science year-over-year core revenue decreased in Asia and Europe, partially offset by modest increased sales in the Americas.

生命科學集團的收入（不包括工藝色譜和新冠病毒相關銷售額）在貨幣中性的基礎上下降了 11.6%。從地理來看，亞洲和歐洲的生命科學核心收入年減，但被美洲銷售額的小幅成長部分抵銷。

Sales of the Clinical Diagnostics Group in the third quarter were $368.1 million compared to $361.9 million in Q3 of 2022 or growth of 1.7% on a reported basis and a 1% growth on a currency-neutral basis. Core Clinical Diagnostics year-over-year revenue, which excludes COVID-related sales, increased 1.4% on a currency-neutral basis.

臨床診斷集團第三季​​的銷售額為 3.681 億美元，而 2022 年第三季為 3.619 億美元，按報告計算成長 1.7%，以貨幣中性計算成長 1%。核心臨床診斷收入（不包括與新冠病毒相關的銷售額）在貨幣中性的基礎上成長了 1.4%。

Growth of the Clinical Diagnostics Group was primarily driven by blood typing and diabetes products as well as growth from our quality controls portfolio. On a geographic basis, the Diagnostics group posted currency-neutral year-over-year core revenue growth in the Americas and Europe, partially offset by the decline in Asia.

臨床診斷集團的成長主要是由血型和糖尿病產品以及我們的品質控制產品組合的成長所推動的。從地理來看，診斷集團在美洲和歐洲的核心收入較去年同期中性成長，但部分被亞洲的下降所抵銷。

The reported gross margin for the third quarter of 2023 was 53.1% on a GAAP basis and compares to 54.7% in Q3 of 2022. The year-over-year gross margin decline was mainly due to unfavorable product mix, lower manufacturing volumes, higher material costs and inventory reserves and was partially offset by improved logistics costs.

根據公認會計準則計算，2023 年第三季的毛利率為 53.1%，而 2022 年第三季為 54.7%。毛利率年減的主要原因是產品結構不利、製造量下降、材料用量增加成本和庫存儲備，並被物流成本的改善部分抵銷。

Amortization related to prior acquisitions recorded in cost of goods sold was $4.5 million compared to $4.4 million in Q3 of 2022. Third quarter operating expenses benefited from our cost-cutting initiatives as well as a contingent consideration benefit of $18.9 million from last year's acquisition of Curiosity Diagnostics.

與先前收購相關的攤銷計入已售商品成本，為450 萬美元，而2022 年第三季為440 萬美元。第三季營運費用受惠於我們的成本削減措施以及去年收購Curiosity 帶來的1,890萬美元或有對價收益診斷。

SG&A expenses for Q3 of 2023 were $201.2 million or 31.8% of sales compared to $211.1 million or 31% in Q3 of 2022. The lower SG&A in the quarter included $4.1 million in contingent consideration benefit as I mentioned earlier as well as lower employee-related expenses. Total amortization expense related to acquisitions recorded in SG&A for the quarter was $1.6 million versus $1.8 million in Q3 of 2022.

2023 年第三季的SG&A 費用為2.012 億美元，佔銷售額的31.8%，而2022 年第三季的SG&A 費用為2.111 億美元，佔銷售額的31%。本季較低的SG&A 費用包括我之前提到的410 萬美元的或有對價福利以及較低的員工相關費用花費。本季 SG&A 中記錄的與收購相關的攤銷費用總額為 160 萬美元，而 2022 年第三季為 180 萬美元。

Research and development expense in the third quarter was $43.5 million or 6.9% of sales compared to $66.8 million or 9.8% of sales in Q3 of 2022. The significantly lower R&D expenses recorded in the third quarter included $14.8 million in contingent consideration benefit that I mentioned earlier as well as lower project and employee-related expenses.

第三季的研發費用為4,350 萬美元，佔銷售額的6.9%，而2022 年第三季的研發費用為6,680 萬美元，佔銷售額的9.8%。第三季的研發費用顯著降低，其中包括我提到的1480 萬美元的或有對價收益提前並降低專案和員工相關費用。

Q3 operating income was $90.9 million or 14.4% of sales compared to $94.6 million or 13.9% of sales in Q3 of 2022. Looking below the operating line, the change in fair market value of equity security holdings, which are substantially related to Bio-Rad's ownership of Sartorius AG shares, added $36.4 million of income to the reported results.

第三季營業收入為9,090 萬美元，佔銷售額的14.4%，而2022 年第三季營業收入為9,460 萬美元，佔銷售額的13.9%。從營業線下方看，股權證券持有的公平市場價值的變化與Bio-Rad 的擁有 Sartorius AG 股份，為報告的業績增加了 3,640 萬美元的收入。

During the quarter, interest and other income resulted in net other income of $9.7 million compared to net other expense of $13 million last year, primarily driven by increased interest income from investments. The effective tax rate for the third quarter of 2023 was 22.5% compared to 21.5% in Q3 of last year. The effective tax rate this quarter was primarily affected by an unrealized gain in equity securities and the tax rate reported in Q3 of 2022 was primarily affected by an unrealized loss in equity securities.

本季度，利息和其他收入帶來的其他淨收入為 970 萬美元，而去年的其他淨支出為 1,300 萬美元，這主要是由於投資利息收入的增加。 2023 年第三季的有效稅率為 22.5%，而去年第三季為 21.5%。本季的有效稅率主要受到股本證券未實現收益的影響，2022 年第三季報告的稅率主要受到股本證券未實現損失的影響。

Reported net income for the third quarter was $106.3 million or $3.64 diluted earnings per share compared to a loss of $162.8 million or $5.48 diluted loss per share in Q3 of 2022. This change from last year is largely related to changes in the valuation of the Sartorius holdings.

第三季報告的淨利潤為1.063 億美元，即稀釋後每股收益3.64 美元，而2022 年第三季為虧損1.628 億美元，即稀釋後每股虧損5.48 美元。這一與去年相比的變化很大程度上與Sartorius 估值的變化有關持股。

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 third quarter. In cost of goods sold, we have excluded $4.5 million of amortization of purchased intangibles and a small restructuring expense. These exclusions moved the gross margin from 53.1% for the third quarter of 2023 to a non-GAAP gross margin of 53.9% versus 55.6% in Q3 of 2022.

接下來是非 GAAP 業績。在非公認會計原則的基礎上查看結果，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。看看第三季的非公認會計準則業績。在銷售成本中，我們排除了購買無形資產的 450 萬美元攤銷和少量重組費用。這些排除項使毛利率從 2023 年第三季的 53.1% 升至 2022 年第三季非 GAAP 毛利率的 53.9%，而 2022 年第三季為 55.6%。

Non-GAAP SG&A in the third quarter of 2023 was 31.7% versus 30% in Q3 of 2022. In SG&A, on a non-GAAP basis, we have excluded $4.1 million of an acquisition related to the contingent consideration benefit mentioned earlier and in vitro diagnostic registration fee in Europe for previously approved products of $1.9 million, amortization of purchased intangibles of $1.6 million, and $1.3 million of restructuring-related expenses.

2023 年第三季的非GAAP SG&A 為31.7%，而2022 年第三季為30%。在SG&A，在非GAAP 基礎上，我們排除了與前面提到的或有對價收益相關的410 萬美元的收購先前核准的產品在歐洲的診斷註冊費為 190 萬美元，購買無形資產的攤銷為 160 萬美元，以及重組相關費用為 130 萬美元。

Non-GAAP R&D in the third quarter of 2023 was 9.2% versus 9.7% in Q3 of 2022. In R&D, on a non-GAAP basis, we have excluded $14.8 million of an acquisition related to the contingent consideration benefit mentioned earlier and a small restructuring benefit.

2023 年第三季的非GAAP 研發費用為9.2%，而2022 年第三季為9.7%。在研發方面，在非GAAP 基礎上，我們排除了與前面提到的或有對價收益相關的1,480 萬美元的收購費用以及一小部分費用。重組效益。

The cumulative sum of these non-GAAP adjustments result in moving the quarterly operating margin from 14.4% on a GAAP basis to 12.9% on a non-GAAP basis. This non-GAAP operating margin compares to a non-GAAP operating margin of 15.8% in Q3 of 2022.

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 14.4% 升至非 GAAP 基礎上的 12.9%。這一非 GAAP 營業利潤率與 2022 年第三季 15.8% 的非 GAAP 營業利潤率相比。

We have also excluded certain items below the operating line, which are the increase in value of the Sartorius equity securities and loan receivable holdings of $36.4 million, $2.5 million gain from the release of an escrow for an acquisition and about a $700,000 loss associated with venture investments.

我們還排除了營運線以下的某些項目，其中包括 Sartorius 股本證券和應收貸款持有量增加 3,640 萬美元、解除收購託管帶來的 250 萬美元收益以及與風險投資相關的約 70 萬美元損失投資。

The non-GAAP effective tax rate for the third quarter of 2023 was 23.9% compared to 21.7% for the same period in 2022. The higher rate in 2023 was driven by geographical mix of earnings and reduced compensation-related deductions. We continue to estimate the full year non-GAAP tax rate to be between 22% and 23%.

2023 年第三季的非公認會計原則有效稅率為 23.9%，而 2022 年同期為 21.7%。2023 年較高的稅率是由於收入的地理組合和薪酬相關扣除額的減少所致。我們繼續估計全年非 GAAP 稅率在 22% 至 23% 之間。

And finally, non-GAAP net income for the third quarter of 2023 was $68.1 million or $2.33 diluted earnings per share compared to $79.2 million or diluted earnings per share of $2.64 in Q3 of 2022.

最後，2023 年第三季的非 GAAP 淨利潤為 6,810 萬美元，或稀釋後每股收益 2.33 美元，而 2022 年第三季為 7,920 萬美元，或稀釋後每股收益 2.64 美元。

Moving on to the balance sheet. During the third quarter, we purchased 58,478 shares of our stock at an average share price of $364.61 for a total cost of $21.3 million. We still have nearly $480 million remaining in our Board-authorized share repurchase program and plan to continue with our opportunistic approach to buybacks as part of our capital allocation strategy.

繼續看資產負債表。第三季度，我們以平均股價 364.61 美元購買了 58,478 股股票，總成本為 2,130 萬美元。我們董事會授權的股票回購計畫中仍有近 4.8 億美元剩餘，並計劃繼續採用機會主義回購方式，作為我們資本配置策略的一部分。

Total cash and short-term investments at the end of Q3 was $1.765 billion compared to $1.728 billion at the end of Q2 of 2023. The increase in cash and short-term investments from the second quarter was primarily due to changes in working capital.

第三季末的現金和短期投資總額為 17.65 億美元，而 2023 年第二季末為 17.28 億美元。第二季現金和短期投資的增加主要是由於營運資本的變化。

Inventory at the end of Q3 was $775.8 million, which is slightly lower than the inventory in the prior quarter. For the third quarter of 2023, net cash generated from operating activities was $97.7 million which compares to $11 million in Q3 of 2022. This increase mainly reflects changes in working capital and income tax payments. The adjusted EBITDA for the third quarter of 2023 was $112.7 million or 17.8% of sales. The adjusted EBITDA in Q3 of 2022 was $135.7 million or 19.9% of sales. Net capital expenditures for the third quarter of 2023 were $44 million, and depreciation and amortization for the third quarter was $37.3 million.

第三季末的庫存為 7.758 億美元，略低於上一季的庫存。 2023 年第三季度，經營活動產生的現金淨額為 9,770 萬美元，而 2022 年第三季為 1,100 萬美元。這一增長主要反映了營運資本和所得稅繳納的變化。 2023 年第三季調整後 EBITDA 為 1.127 億美元，佔銷售額的 17.8%。 2022 年第三季調整後 EBITDA 為 1.357 億美元，佔銷售額的 19.9%。 2023年第三季淨資本支出為4,400萬美元，第三季折舊和攤提為3,730萬美元。

Moving on to the non-GAAP guidance. Given the current market environment, we are revising our 2023 financial outlook as follows. We now expect about a 3.5% currency-neutral year-over-year revenue decline in 2023 versus a growth of about 80 basis points previously. For the full year, we estimate currency-neutral year-over-year revenue growth, excluding COVID-related sales to be between 0 and 50 basis points versus about 4.5% in our prior guidance.

轉向非公認會計原則指導。鑑於當前的市場環境，我們將對 2023 年財務前景進行如下修訂。我們現在預計 2023 年（匯率中立）營收將年減約 3.5%，而先前的成長約為 80 個基點。就全年而言，我們預計，排除貨幣影響後的同比收入成長（不包括與新冠疫情相關的銷售額）將在 0 到 50 個基點之間，而我們先前的指引約為 4.5%。

Of the 400 to 450 basis points core revenue guide down, 250 basis points are related to the third quarter revenue shortfall of which approximately 200 basis points is related to weakness in BioPharma and remaining 50 basis points related to lower Clinical Diagnostics sales. The remaining 150 to 200 basis points reduction is attributed to reduce process chromatography and other BioPharma demand as well as continued softness in China.

核心收入指引下降 400 至 450 個基點，其中 250 個基點與第三季度收入短缺有關，其中約 200 個基點與生物製藥業務疲軟有關，其餘 50 個基點與臨床診斷銷售額下降有關。其餘 150 至 200 個基點的下降歸因於製程色譜和其他生物製藥需求的減少以及中國的持續疲軟。

For the Life Science Group, we expect about a 12% currency-neutral revenue decline for 2023 and when excluding COVID-related sales, the Life Science Group currency-neutral revenue decline is projected to be between 4% and 5%. Excluding COVID and process chromatography related sales, Life Science Group revenue is expected to decline between 2% and 3%. For the Diagnostics group, while we remain encouraged with the overall demand we are now guiding core revenue growth to be about 4.5% versus 5.5% previously.

對於生命科學集團，我們預計2023 年（貨幣中性）收入將下降12% 左右，如果排除與新冠病毒相關的銷售，生命科學集團（貨幣中性）收入下降預計將在4% 至5% 之間。不包括新冠肺炎和工藝色譜相關銷售，生命科學集團的收入預計將下降 2% 至 3%。對於診斷部門，雖然我們對整體需求仍然感到鼓舞，但我們現在指導核心收入成長約為 4.5%，而之前為 5.5%。

Full year non-GAAP gross margin is now projected to be about 54% versus about 54.5% previously, reflecting our updated expectation of shift in product mix and volume. We now project full year non-GAAP operating margin to be about 14.5% versus approximately 16% in our prior guidance as we continue to carefully manage discretionary expenses. And full year adjusted EBITDA margin is expected to be between 20% and 20.5% versus about 21.5% in our prior guidance.

目前預計全年非 GAAP 毛利率約為 54%，而之前約為 54.5%，反映了我們對產品結構和銷售變化的最新預期。由於我們繼續謹慎管理可自由支配費用，我們現在預計全年非 GAAP 營業利潤率約為 14.5%，而我們先前的指引約為 16%。全年調整後 EBITDA 利潤率預計在 20% 至 20.5% 之間，而我們先前的指引約為 21.5%。

And now, I'll turn the call over to Norman for a few remarks. Norman?

現在，我將把電話轉給諾曼，請他發表幾句話。諾曼？

Thank you, Ilan. So I guess I just wanted to take a minute here to really to recognize Ilan and his contributions over the last several years. As part of our transformation, Ilan has been a very valued member of the team, kind of working to improve financial planning and reporting processes as well as to enhance the company's external profile with the financial community. I think we all very much appreciate his guidance and contributions which do position us well for our continuing transformation. As you might imagine, we have initiated a search for his successor. And in the meantime, we have a strong, capable team who can manage very well in the interim.

謝謝你，伊蘭。所以我想我只是想在這裡花一點時間來真正認可伊蘭和他在過去幾年中的貢獻。作為我們轉型的一部分，Ilan 一直是團隊中非常有價值的成員，致力於改善財務規劃和報告流程，並提高公司在金融界的外部形象。我認為我們都非常感謝他的指導和貢獻，這為我們的持續轉型奠定了良好的基礎。正如您可能想像的那樣，我們已經開始尋找他的繼任者。同時，我們擁有一支強大、有能力的團隊，可以在過渡期間很好地管理。

So maybe while I have the floor, maybe a closing comment about this year. Certainly, it's not unfolded the way we or many of our peers first envisioned it. Kind of coming out of the pandemic, I think it has been challenging to predict the pace of recovery or market normalization, really all exacerbated by inflation we've not seen in 20 years, geopolitical events and, of course, the biopharma disruption.

因此，也許在我發言的時候，也許可以對今年做一個總結評論。當然，它並沒有像我們或我們的許多同行最初設想的那樣展開。剛從疫情中走出來，我認為預測復甦或市場正常化的速度一直是一項挑戰，實際上，這一切都因我們20 年來未曾見過的通貨膨脹、地緣政治事件，當然還有生物製藥的中斷而加劇。

I think if I think about it a little bit. I think what we can be confident of is that our markets are buoyant. And I feel the outlook is positive. There could always be a few more bumps in the road in the near term, but I do feel the company is really is well-positioned to navigate what might come our way. And just maybe to reemphasize a point that Andy made, longer term, our strategy and vision for the future really has not changed.

我想如果我稍微想一下的話。我認為我們可以確信的是，我們的市場正在蓬勃發展。我覺得前景是正面的。短期內，道路上總是會遇到一些坎坷，但我確實認為該公司確實處於有利位置，可以應付我們可能遇到的情況。也許只是再次強調安迪提出的一點，從長遠來看，我們對未來的策略和願景確實沒有改變。

With that, operator, I think we'll open the line up to questions.

接線員，我想我們就可以開始提問了。

Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions). Your first question comes from the line of Brandon Couillard from Jefferies.

女士們、先生們，我們現在開始問答環節。 （操作員說明）。你的第一個問題來自 Jefferies 的 Brandon Couillard。

I'm not sure, this is either a question for Andy or Ilan, but the magnitude of the guidance reset in Life Sciences, relative to where you started the year, is the most dramatic of any of your peers by far. Why do you think there seem to be such an inability to accurately forecast the business and demand trends? And how do we assess whether this is, in fact, a market dynamic as opposed to potential share losses?

我不確定，這要么是安迪或伊蘭的問題，但生命科學領域的指導重置的幅度，相對於你們今年開始的位置，是迄今為止所有同行中最引人注目的。您認為為什麼似乎無法準確預測業務和需求趨勢？我們如何評估這實際上是否是市場動態而不是潛在的股票損失？

Could you just say the very last piece again, Brandon? I didn't catch your very last few words.

布蘭登，你能再說一次最後一段嗎？我沒聽清楚你最後幾句話。

How do we assess whether this is, in fact, a market dynamic versus potential share losses in Life Science?

我們如何評估這實際上是否是市場動態與生命科學領域潛在的份額損失？

Okay. Look, I think that we came out of 2022 with really good trajectory. And the effects that some companies had seen, particularly in bioprocessing, were not showing up for us. And that -- I think that's something that we communicated at the end of the first quarter that, that was a surprise. And it took a while within 2023 for those effects to really roll out into our funnel and start to experience the deferred orders being pushed out.

好的。看，我認為 2022 年我們的發展軌跡非常好。有些公司所看到的效果，特別是在生物加工方面，並沒有在我們身上顯現出來。我認為這是我們在第一季末傳達的內容，這是一個驚喜。 2023 年，這些影響花了一段時間才真正進入我們的管道，並開始經歷推遲訂單被推出的情況。

But then the other factor that no one anticipated and which was meaningful for us was the Silicon Valley Bank collapse and the knock-on effects of that, which really impacted the spending profile of the smaller biotech companies, and we had significant trajectory in the smaller biotechs for, in particular, our Droplet Digital PCR platform, which also had some halo effect around it. So I think it took a couple of quarters for those effects to really materialize for us because our profile is a little different to some of the other players. So that's how I view it.

但另一個沒有人預料到的因素對我們來說是有意義的，那就是矽谷銀行的倒閉及其連鎖反應，這確實影響了小型生物技術公司的支出狀況，而且我們在較小的生物技術公司中有著顯著的發展軌跡。生物技術，特別是我們的微滴式數位 PCR 平台，該平台也產生了一些光環效應。因此，我認為我們花了幾個季度的時間才真正實現這些效果，因為我們的形象與其他一些玩家略有不同。這就是我的看法。

And then, of course, since then, spending has not improved. The order pushouts have continued and it's very difficult to gauge the true inflection point right now, and I think that's probably a message that's coming across broadly from other players in the category as well.

當然，從那時起，支出並沒有改善。訂單推送仍在繼續，目前很難衡量真正的拐點，我認為這可能也是該類別其他參與者廣泛傳達的訊息。

This is Simon. Maybe I'll just add to that as well because as we look at our funnels and we look at our win-loss ratios across the portfolio, whether you're talking about western block or gene expression or digital PCR or our BioProcess business, we really don't see any significant shifts there. I mean, obviously, the conditions in China in BioPharma have really deteriorated. But the feedback that we consistently get from the field is that there's still a high level of interest in the products.

這是西蒙.也許我也會補充這一點，因為當我們查看我們的漏斗，我們查看整個投資組合的盈虧比時，無論您是在談論蛋白質塊、基因表現、數位 PCR 還是我們的生物製程業務，我們確實沒有看到任何重大變化。我的意思是，顯然，中國生物製藥產業的狀況確實惡化了。但我們從現場持續得到的回饋是，人們對這些產品仍然很感興趣。

The products that we've launched had been really well received. And again, the funnel dynamics in terms of win-loss ratios are not seeing any significant shifts. So we really do believe that this is a bunch of transient effects that are compounding and it's making for a very difficult year, but I don't think there are any macro shifts in our competitive positioning in Life Sciences.

我們推出的產品非常受歡迎。同樣，輸贏比率方面的漏斗動態沒有任何重大變化。因此，我們確實相信，這是一系列正在復合的短暫影響，​​這將導致非常困難的一年，但我認為我們在生命科學領域的競爭定位不會發生任何宏觀變化。

Okay. Ilan, I think the revised guide implies 4Q revenue steps up to about $700 million, I believe. 2Q is usually seasonally very strong for Bio-Rad, but this isn't a normal environment either. So how derisked is that revenue outlook? What are some of the variables that can swing that target up or down that you're keeping in mind?

好的。 Ilan，我認為修訂後的指南意味著第四季度的收入將增至約 7 億美元。對於 Bio-Rad 來說，第二季的季節性通常非常強勁，但這也不是正常的環境。那麼收入前景的風險有多大呢？您要牢記哪些變數會導致目標上下波動？

So it's Andy. The variables that might swing that, I think they're the same that we're -- the variables would really be the same that we're experiencing, just a little bit more acute if China gets definitively worse than the trajectory it's on, for example, that would. If academia really pulled back some spending that could have an effect. We're not expecting a Q4 budget flush this year. That's not in our thinking. If that materializes, that's good news, but we're not planning on that. I think other than that, I don't think we see anything that may be meaningful that we could predict.

所以是安迪。可能會改變這一點的變量，我認為它們與我們所經歷的變量是一樣的——這些變量實際上與我們正在經歷的相同，只是如果中國的情況明顯比現在的軌跡更糟，那麼變量會更加尖銳，例如，那會。如果學術界真的削減一些支出，可能會產生影響。我們預計今年第四季預算不會大幅增加。我們不這麼認為。如果這成為現實，那是個好消息，但我們不打算這麼做。我認為除此之外，我認為我們沒有看到任何可以預測的有意義的東西。

And Brandon, I will add to the inputs that Andy just mentioned. Generally speaking, we have not deviated from our approach of kind of coming up with the realistic what we see in front of us in terms of the 4% guidance. So I don't know that we are underestimating or overestimating our projections. And definitely, the fourth quarter this time around is an unusual circumstance in addition to the macroeconomic kind of environment to end this kind of inputs from mainly the China environment today.

布蘭登，我將補充安迪剛才提到的意見。總的來說，我們並沒有偏離我們的做法，即根據 4% 的指導意見提出我們所看到的現實情況。所以我不知道我們是低估了還是高估了我們的預測。當然，除了宏觀經濟環境之外，第四季是一個不尋常的情況，結束了今天主要來自中國環境的這種投入。

I mean, I think it's going to continue well into the end of the year. So the smaller biotechnology companies environment in terms of the funding environment are not expected to improve in our mind through the end of this year. So I agree with you, historically, traditionally, the fourth quarter used to be a stronger seasonality kind of quarter for us. That is not the case this time around.

我的意思是，我認為這種情況將持續到今年年底。因此，我們認為，到今年年底，小型生技公司的融資環境預計不會改善。所以我同意你的觀點，從歷史上看，傳統上，第四季對我們來說曾經是季節性較強的季度。這次的情況並非如此。

Okay. Last one, and then I'll jump back in the queue. Andy, given you and Ilan started at Bio-Rad around the same time, you've worked very closely together. You've both been instrumental to Bio-Rad's transformation last 4 years or so. In light of his departure, I think investors would like to know, are you happy with the operational direction of the company? Are you adequately incentivized to stay the course? Or do you have an eye to retirement anytime soon?

好的。最後一個，然後我會跳回隊列。 Andy，鑑於你們和 Ilan 大約在同一時間開始在 Bio-Rad 工作，所以你們合作得非常密切。在過去 4 年左右的時間裡，你們都為 Bio-Rad 的轉型發揮了重要作用。鑑於他的離開，我想投資者想知道，您對公司的營運方向滿意嗎？您是否有足夠的動力堅持到底？或是您打算很快退休嗎？

Yes, Brandon, thanks. But first, can I just say I'm really sad to see Ilan move on. And you're right, we have worked extremely closely. He and I are in each other's offices virtually every day. So it's been a really good journey. I want to thank Ilan for that.

是的，布蘭登，謝謝。但首先，我只能說，看到伊蘭繼續前​​進，我真的很難過。你是對的，我們的合作非常密切。他和我幾乎每天都在對方的辦公室。所以這是一次非常美好的旅程。我要為此感謝伊蘭。

Thank you. Likewise.

謝謝。同樣地。

But my point of view right now is we started this transition. It's not finished. And the focus really is on the transformation of the company and executing against the strategy framework, which I firmly believe has the potential to increase operating performance for the company moving forward.

但我現在的觀點是我們已經開始了這個轉變。事情還沒完成。重點其實是公司的轉型和策略框架的執行，我堅信這有可能提高公司未來的營運績效。

Your next question comes from the line of Patrick Donnelly from Citi.

您的下一個問題來自花旗銀行的 Patrick Donnelly。

Maybe another one on the 4Q ramp, but on the margin side, a pretty meaningful step up from whether it's sequential or the rest of the prior part of the year. Can you just talk about the moving pieces to get to that implied margin? I think it's 16.5%, 17% type margin in 4Q, yes, just a path to get there and get people comfortable that that's a realistic number.

也許是第四季的另一個成長，但從利潤率來看，無論是連續的還是今年前半年的剩餘時間，這都是一個非常有意義的進步。能談談達到隱含利潤的移動因素嗎？我認為第四季的利潤率為 16.5%、17%，是的，這只是實現這一目標的一條途徑，讓人們相信這是一個現實的數字。

Sure. Patrick, this is Ilan. I'll start and Andy can chime in. But obviously, on the top line, we baked in kind of the updated mix with the softer Life Science. And overall, I mean, on the operating expenses, we plan to continue some of those initiatives that we have been working on. And already in the third quarter, you can see that the operating expenses came in lower on a dollar basis. So we continue to work on additional initiatives going into the fourth quarter. And again, overall, for the bottom line, I mean, we feel it is a realistic projection here.

當然。派崔克，這是伊蘭。我先開始，安迪可以插話。但顯然，最重要的是，我們用更新的組合與更柔和的生命科學進行烘焙。總的來說，我的意思是，在營運費用方面，我們計劃繼續我們一直在努力的一些舉措。在第三季度，您可以看到以美元計算的營運費用下降。因此，我們將在第四季繼續開展其他舉措。再說一遍，總的來說，對於底線，我的意思是，我們認為這是一個現實的預測。

My only add, we're still focused on keeping our operating cost structure as tight as possible. So the volume and mix will have a decent flow-through in the fourth quarter operating margin.

我唯一補充的是，我們仍然專注於盡可能嚴格地維持我們的營運成本結構。因此，銷售量和產品組合將在第四季的營業利潤率中產生可觀的流量。

Okay. And then maybe on China, if you could just talk about that market. A little bit surprising to see the Diagnostics piece softer as well. Can you just talk about what you're seeing? Is it various policies over there that's impacting things? It would be helpful just to get a little more discussion there.

好的。然後也許是中國，如果你能談談這個市場的話。看到診斷部分也變得更軟，有點令人驚訝。你能簡單談談你所看到的嗎？是那裡的各種政策在影響事情嗎？在那裡進行更多討論會很有幫助。

Okay. So the policies, I mean, are clearly impacting both Life Science and the Diagnostics side of the business. And they have the made-in China for China. There's the anticorruption, there's volume-based pricing, and then you layer on top of that recession. And the government, I think, that is generally struggling to find the right way to stimulate the market. You can add in an extra effect of capital markets soft for biopharma, which was a focus for us for expansion and growth of our -- those pieces of our portfolio. They all have varying impacts to both sides of the business. And it's just been a really tough ride through China, and there's just no current clear reason to think that it's going to improve in Q4.

好的。因此，我的意思是，這些政策顯然正在影響生命科學和診斷業務。他們為中國製造了中國製造。有反腐敗，有基於數量的定價，然後你就陷入了經濟衰退。我認為，政府普遍正在努力尋找刺激市場的正確方法。您可以添加資本市場疲軟對生物製藥的額外影響，這是我們投資組合的這些部分擴張和成長的重點。它們對業務雙方都有不同的影響。在中國經歷了一段非常艱難的旅程，目前沒有明確的理由認為第四季情況會有所改善。

And on the Clinical side, it just created a softer pull for our products in China and in the quarter. And we still have had a little bit of backlog on our Clinical business as we called out, which by the end of this year, we should be roughly where we expect to be and may finish with a very slightly elevated backlog on clinical products at the end of the year, but we're pretty much on track relatively speaking for that.

在臨床方面，這對我們在中國和本季的產品產生了較弱的拉力。正如我們所指出的那樣，我們的臨床業務仍然有一些積壓，到今年年底，我們應該大致達到我們預期的水平，並且可能會在臨床產品積壓方面略有增加。到今年年底，但相對而言，我們已經步入正軌。

Okay. On the diagnostics side, is it more the instrumentation. Obviously, the VBP stuff comes up quite often with all diagnostic players. Are you guys seeing anything on that front yet?

好的。在診斷方面，更多的是儀器。顯然，VBP 的內容經常出現在所有診斷玩家中。你們在這方面看到了什麼嗎？

What was the question?

問題是什麼？

The volume-based pricing. Sorry, we were just having difficulty hearing. Dara, do you want to comment on VBP?

基於數量的定價。抱歉，我們只是聽力有困難。 Dara，你想對 VBP 發表評論嗎？

Sure. It's starting to impact how we navigate tender requirements. So I think how that's translating to reality is things are a little bit slower as we're navigating how best to position for new deal considerations. But value-based pricing, it has historically been applied to other sectors, but in a couple of provinces we're starting to see it reach into IBD.

當然。它開始影響我們處理招標要求的方式。因此，我認為這如何轉化為現實是，當我們正在考慮如何最好地考慮新交易時，事情會變得有點慢。但基於價值的定價，歷史上曾應用於其他行業，但在幾個省份，我們開始看到它進入 IBD。

So I think right now, it's just sort of impacting sort of forward-looking risk. And then as Andy said, we're still working through some supply chain fulfillment challenges in backlog, which we're weighted a bit towards that region as well. And we're working through that and have line of sight for a really solid Q4 landing.

所以我認為現在這只是一種影響前瞻性風險的方式。然後，正如安迪所說，我們仍在努力解決積壓中的一些供應鏈履行挑戰，我們也偏重於該地區。我們正在解決這個問題，並有望在第四季度實現真正穩健的著陸。

Okay. And maybe last one, just on the PCR side. You guys called out, I think, qPCR weakness, it seemed like ddPCR step down as well. Can you just talk about what you're seeing in that market? Is it just broader slowdown? Is it specific pockets there would be helpful?

好的。也許是最後一個，就在 PCR 方面。我認為你們指出了 qPCR 的弱點，看來 ddPCR 也被淘汰了。您能談談您在該市場中看到的情況嗎？這只是更廣泛的放緩嗎？特定的口袋會有幫助嗎？

I think again, it's compounding the issues that we've already touched on here. So we've obviously got a fairly significant qPCR, digital PCR footprint in BioPharma. And again, the slowdown in early biotechs. We've seen a continuation of layoffs and project deferrals, that's impacted the business. We've got the COVID compare. We've got all the challenges in China that we've already talked about. And I think on top of everything else, there's kind of a glut of systems out there in the market that were placed in the pandemic, and there's a bit of free capacity out there. So you roll all of these things together.

我再次認為，這使我們已經討論過的問題變得更加複雜。因此，我們顯然在生物製藥領域擁有相當重要的 qPCR、數位 PCR 足跡。再次，早期生物技術的放緩。我們看到持續的裁員和專案延期，這對業務產生了影響。我們對新冠病毒進行了比較。我們在中國面臨著我們已經討論過的所有挑戰。我認為最重要的是，市場上在大流行中放置的系統有些過剩，而且還有一些空閒容量。所以你把所有這些東西放在一起。

Again, we refreshed our qPCR platform over the last couple of years. And again, the feedback that we get from out in the field is really positive in terms of how these products are being received in the market, but this compounding of market conditions right now is what's adding up to its environment.

在過去的幾年裡，我們再次更新了我們的 qPCR 平台。再說一次，我們從現場得到的回饋對於這些產品在市場上的接受程度來說確實是正面的，但目前市場條件的複雜性正在加劇其環境。

May I just add one extra comment. You look for the silver lining on occasion and the customer demand in that -- in small biotech, BioPharma, the desire to take in digital PCR, in particular, remain very strong. What we're actually experiencing is just the deferral of when they're going to make the purchase because they're constrained on kind of cash expenditure and some other changes going on structurally on the comp program focus. So the demand side remains very encouraging.

我可以添加一條額外的評論嗎？您有時會尋找一線希望和客戶需求，尤其是在小型生物技術、生物製藥領域，採用數位 PCR 的願望仍然非常強烈。我們實際上經歷的只是他們購買的時間被推遲，因為他們受到現金支出和補償計劃重點結構上的一些其他變化的限制。因此需求方面仍非常令人鼓舞。

Your next question comes from the line of Jack Meehan from Nephron.

您的下一個問題來自 Nephron 的 Jack Meehan。

So just wanted to talk about how the quarter played out here. So revenue was about 8% below the streak. Can you just talk about kind of the pacing of the quarter? Was most of the pressure you saw in September? And is it possible, are there any orders that slipped into 4Q for any reason?

所以只想談談本季的表現。因此，收入比連續記錄低約 8%。能談談本季的節奏嗎？您所感受到的壓力主要是在九月嗎？是否有可能，是否有任何訂單因任何原因滑入第四季度？

I think Jack -- this is Ilan. The way to think about it, I think we saw it throughout the quarter, but it accelerated towards the end of the quarter. So the pace was -- kind of, of decline was stronger towards the end of the quarter. But throughout the quarter, it started to get weaker and weaker, but definitely, it accelerated towards the end.

我想傑克——這是伊蘭。思考這個問題的方式，我認為我們在整個季度都看到了這種情況，但到了季度末它加速了。因此，到本季末，下降的速度在某種程度上更為強勁。但在整個季度中，它開始變得越來越弱，但可以肯定的是，它在接近尾聲時加速了。

Okay. And Norman, I know you mentioned in your comments, there's potential for maybe a couple more bumps in the road along the way. I think there's a debate amongst tools investors around further through the cutting cycle or could there be kind of new risks ahead because of some of the changes in the funding environment for customers? Just curious like maybe like what you're seeing through October? Do you -- I guess, like kind of what was the thinking that went behind the fourth quarter guide that you've built here?

好的。諾曼，我知道你在評論中提到過，一路上可能還會遇到更多的坎坷。我認為工具投資者之間存在著爭論，圍繞著進一步的削減週期，或者由於客戶融資環境的一些變化，未來是否會出現新的風險？只是好奇你在十月看到了什麼？我想，你在這裡製作的第四季指南背後的想法是什麼？

Well, I think certainly, in terms of the fourth quarter guide, we look carefully at kind of the order book in the funnel, the sales funnel, kind of accumulating as much data as we can to get the best assessment of where we think we'll land for the year. When I think about bumps in the road, I think about the -- I think there were a lot of people that kind of thought the pandemic is over and everything will be back to normal next week.

嗯，我認為當然，就第四季度指南而言，我們仔細研究了漏斗中的訂單簿、銷售漏斗，積累了盡可能多的數據，以便對我們認為我們的位置進行最佳評估今年將落地。當我想到道路上的坎坷時，我想到了——我想有很多人認為大流行已經結束，下週一切都會恢復正常。

And I think we're seeing a continuation of that with some of this kind of biopharma meltdown and the readjustments that are being made in some of these programs. It just -- I think we just have to be careful about calling the end and saying, it's always possible that there's something else that might bubble up.

我認為，隨著此類生物製藥的崩潰以及其中一些計劃的重新調整，我們正在看到這種情況的延續。只是——我認為我們在結束時必須小心，並說，總是有可能出現其他東西。

Understood. Okay. And then on the income statement, you previously talked about kind of OpEx reductions. I was looking at the SG&A line kind of on a non-GAAP basis, it actually increased a little bit sequentially, and that was despite kind of revenue declining sequentially. So I was just wondering if you could talk about what happened in SG&A in the quarter and like is there room to like pull more cost out given the lower top line.

明白了。好的。然後在損益表上，您之前談到了營運支出的削減。我在非公認會計原則的基礎上查看了 SG&A 線，它實際上環比增長了一點，儘管收入環比下降了。因此，我只是想知道您是否可以談談本季度的銷售及管理費用（SG&A）發生的情況，以及考慮到較低的收入，是否有空間減少更多的成本。

So usually, what you see, it was a minor kind of step-up, Jack. Usually, on the fourth quarter, we see a much higher kind of step-up in SG&A which this time around, actually more of the initiatives that we have been working on will kick in on the -- in the fourth quarter. So we don't anticipate the traditional step up in the fourth quarter. For the third quarter, it wasn't that material.

所以通常情況下，你所看到的，這只是一種小小的進步，傑克。通常，在第四季度，我們會看到 SG&A 的大幅提升，這一次，實際上我們一直在進行的更多舉措將在第四季度開始實施。因此，我們預計第四季不會出現傳統的成長。對於第三季來說，情況就沒那麼重要了。

Your next question comes from the line of Tim Daley from Wells Fargo.

您的下一個問題來自富國銀行的蒂姆戴利。

So first on the process chromatography business. So I think you were previously expecting down mid-single to high-single decline. With the update today, I'm getting to 13% down or so for the year. But even with that, that implies a pretty significant step up in the fourth quarter. I think almost like 80% sequential dollar increase from 3Q to 4Q.

首先是工藝色譜業務。所以我認為你之前預計單筆中單到高單的跌幅會下降。透過今天的更新，我今年的降價幅度約為 13%。但即便如此，這也意味著第四季將出現相當大的進步。我認為從第三季到第四季美元的連續成長幾乎是 80%。

So first off, are these numbers that I'm kind of getting to in the right ballpark? And then secondly, can you help us understand the visibility confidence that you have to kind of get that big sequential step up, especially given the commentary around a slower or lower than typical seasonality for this year-end?

首先，我得到的這些數字是否正確？其次，您能否幫助我們了解您必須連續大幅提升的可見度信心，特別是考慮到今年年底的季節性比典型季節性要慢或低的評論？

Yes, this is Andy. So yes, I think maybe it's kind of some of the math might be a little off there. I think the process chrome overall, it's going to end up at a lower number in kind of the guidance implication there. And it's kind of like mid-teens and so I don't think we're seeing a meaningful step-up in process chrome in Q4. But yes, I think that's really probably just a bit of math there, it's slightly higher.

是的，這是安迪。所以，是的，我認為也許有些數學可能有點偏差。我認為整個流程鉻最終會以較低的數字結束，這是那裡的指導含義。這有點像十幾歲左右，所以我認為我們在第四季度沒有看到流程鉻有有意義的進步。但是，是的，我認為這可能只是一點數學，它稍微高一點。

All right. Got it. That's helpful. And then, Andy, can you -- the supply chain impacts weighing on the third quarter Diagnostics revenues, can you just provide some details on like what is that, how big the impact was in the quarter, and if you expect those delayed revenues to be fully recuperated in fourth quarter?

好的。知道了。這很有幫助。然後，安迪，您能否——供應鏈對第三季度診斷收入的影響，您能否提供一些詳細信息，例如是什麼、本季度的影響有多大，以及您是否預計這些延遲的收入會第第四季能否完全恢復？

Yes. So essentially, we -- obviously, we've been communicating our supply chain challenge on the clinical side because various impacts of COVID plus we moved our plants from France to Singapore. We're catching up quickly, but it's sometimes difficult to get the pacing of that right.

是的。所以本質上，我們——顯然，我們一直在溝通我們在臨床方面的供應鏈挑戰，因為新冠肺炎的各種影響加上我們將工廠從法國搬到了新加坡。我們正在迅速追趕，但有時很難掌握正確的節奏。

So if you get a bit of delay, you also get a bit of pull-through, consumable pull-through delay as well. And so that factored a bit into our Q3. But we are looking at a pretty strong Q4, and we have good line of sight now. Our plant in Singapore is really cranking. We've done a lot of work leading out the workflows there. And so we're going to get the benefit of that in Q4 and also get some pull-through effect. So Q3 just ended up being softer as a result overall.

因此，如果你得到一點延遲，你也會得到一點拉通、消耗品拉通延遲。因此，這在我們的第三季度中有所體現。但我們看到的是相當強勁的第四季度，而且我們現在有良好的視線。我們在新加坡的工廠確實正在運作。我們已經做了很多工作來引導那裡的工作流程。因此，我們將在第四季度受益，並獲得一些拉動效應。因此，第三季總體而言最終變得更加疲軟。

All right. And then final one here for Norman. With the '23 guidance now 400 basis points lower, that midterm CAGR for 2025, the guidance updated in May now has an incremental 100 basis points or so steeper, I guess, headwinds in front of it. So given the current environment, how are you evaluating the 2025 target? Or is this something that maybe will wait until a new CFO is in the seat to put their own fingerprints on if you will?

好的。最後一場是諾曼的。由於 23 年的指導現在降低了 400 個基點，即 2025 年中期複合年增長率，5 月份更新的指導現在增加了 100 個基點左右，我猜，前面的阻力更大。那麼在當前環境下，您如何評價2025年的目標呢？或者說，如果你願意的話，這可能要等到新任財務長上任後才能留下自己的印記嗎？

So Tim, this is Ilan, I will chime in and then Norman probably will have some additional color. But already in the prior quarter, we communicated that the 2025 targets from our perspective is kind of in a hold pattern. We would like to get more insight and visibility going into 2024 in order to shape our thinking about the 2025 targets. So probably in the next kind of earnings call early next year, when we have the 2024 guidance in front of us, the 2025 numbers, we'll know how to think about it and to see whether the reason impact and what magnitude, et cetera.

提姆，這是伊蘭，我會插話，然後諾曼可能會有一些額外的顏色。但在上一季度，我們就表示，從我們的角度來看，2025 年的目標處於擱置狀態。我們希望對 2024 年有更多的了解和可見性，以便形成我們對 2025 年目標的思考。因此，可能在明年初的下一次財報電話會議中，當我們面前有 2024 年的指導、2025 年的數據時，我們就會知道如何思考它，看看影響的原因和程度，等等。

I think that covers it pretty well.

我認為這很好地涵蓋了它。

Your next question comes from the line of Conor McNamara from RBC Capital.

您的下一個問題來自 RBC Capital 的 Conor McNamara。

Just without getting into 2024 guidance, just how should we think about 2024 in general? And just which headwinds that you called out in this quarter likely to persist in 2024 and which are likely to end by the end of this year?

在不談 2024 年指導的情況下，我們該如何看待 2024 年？您在本季提出的哪些不利因素可能會持續到 2024 年，哪些不利因素可能會在今年底結束？

Conor, this is Ilan. So I can start with obviously various aspects that are associated with the macroeconomic I'm not sure personally that China will recover like in a few weeks. So that may take a little bit longer. The funding environment, which is obviously indirectly linked to the treasury yield is here to stay. The inflationary environment is here to stay for a while. .

康納，這是伊蘭。因此，我可以從與宏觀經濟相關的各個方面開始，我個人不確定中國是否會在幾週內復甦。所以這可能需要更長的時間。顯然與國債殖利率間接相關的融資環境將持續存在。通膨環境將持續一段時間。 。

So there does and probably will continue for a while to have some impact on the smaller biotechnology companies funding. And the way they think about the pace of their spend. So these are definitely areas that we want to kind of think about it to think about and then not to mention the geopolitical everywhere now that is getting kind of to probably a new level that we have not experienced before.

因此，這確實會對小型生技公司的融資產生一些影響，而且可能會持續一段時間。以及他們對支出節奏的看法。因此，這些絕對是我們想要思考的領域，更不用說現在各地的地緣政治可能已經達到了我們以前從未經歷過的新境界。

So there are multiple fronts there that -- and when you think about Europe, I mean, overall, for us, Europe, generally speaking, is doing okay for us. But when you think about the macroeconomic, Germany is probably already in a recession. So it's going to be interesting. I mean specifically, domestically -- we're going into an election year domestically. So we'll have to wait and see how everything will shape up. But it doesn't have to do anything with our own kind of organic initiatives, products, new products, the end markets that are not disappearing, they're not going anywhere. So it's only -- from my perspective, only a timing issue.

因此，有多個面向——當你想到歐洲時，我的意思是，總體而言，對我們來說，歐洲總體來說對我們來說做得還不錯。但當你考慮宏觀經濟時，德國可能已經陷入衰退。所以這會很有趣。我的意思是，具體來說，在國內——我們國內即將進入選舉年。所以我們必須等待，看看一切會如何發展。但這與我們自己的有機舉措、產品、新產品、終端市場沒有任何關係，它們不會消失，也不會去任何地方。所以從我的角度來看，這只是一個時間問題。

Okay. Great. And just following up to Patrick's question about PCR. Can you just talk about ddPCR, specifically because that slowdown was worse than any of your other business units? So how do we -- can you give investors some framework to think about how that -- how we can get comfort that that's definitely a market environment and not competitive pressure because there have been some competitors out there making some noise. So we just want to make sure that you still feel good about your market position there in ddPCR.

好的。偉大的。接下來是派崔克​​關於 PCR 的問題。您能否談談 ddPCR，特別是因為這種放緩比您的任何其他業務部門都更嚴重？那麼，我們如何——你能給投資者一些框架來思考如何——我們如何才能放心，這絕對是一個市場環境，而不是競爭壓力，因為有一些競爭對手在那裡發出了一些噪音。因此，我們只是想確保您仍然對自己在 ddPCR 中的市場地位感到滿意。

I still think we feel good about the position. I mean, we've made no secret of the fact that the competitive landscape is intensified. And as we reflect on Q3, I think as we called out in the scripts, we had a couple of really notable wins there that we think are going to help continue to position us well for the future.

我仍然認為我們對這個職位感覺良好。我的意思是，我們毫不掩飾競爭格局正在加劇的事實。當我們反思第三季時，我認為正如我們在腳本中所說的那樣，我們在那裡取得了一些非常顯著的勝利，我們認為這將有助於我們繼續為未來做好準備。

I think what we really saw in Q3, again, is an exacerbation of these biopharma impacts. We have put secular strength in the early biotech sector. And I think what we saw in Q3 was a cumulative impact of these deferred projects and layoffs in the continuing extremely tight budget environment. Once again, we're seeing a lot of interest in the products, but the money is just not flowing. We continue to see healthy adoption and really strong acceptance of our QX600 platform.

我認為我們在第三季真正看到的是這些生物製藥影響的加劇。我們在早期生物技術領域投入了長期的力量。我認為我們在第三季度看到的是這些推遲的項目和裁員在持續極其緊張的預算環境中的累積影響。我們再一次看到人們對這些產品很感興趣，但資金卻沒有流動。我們繼續看到我們的 QX600 平台得到了健康的採用和強烈的接受。

So as we look to the future, if we all believe that these impacts in BioPharma transient and when we emerge from it, we think we're going to be in a really strong position. And then, of course, we've got competitors who are playing more in the lower-end segments, and we plan to enter there with the QX Continuum platform in 2024. So for sure, the competitive pressure is intensifying, but I think we've got compelling responses and where we've got leading positions in these segments will continue to do well as and when these markets recover.

因此，當我們展望未來時，如果我們都相信生物製藥領域的這些影響是短暫的，當我們從中擺脫出來時，我們認為我們將處於非常有利的地位。當然，我們的競爭對手更涉足低端市場，我們計劃在 2024 年透過 QX Continuum 平台進入這一市場。所以可以肯定的是，競爭壓力正在加劇，但我認為我們我們已經得到了令人信服的回應，並且當這些市場復甦時，我們在這些細分市場中佔據領先地位的領域將繼續表現良好。

Great. And just a quick follow-up on pricing. And I guess this is across everything in Life Sciences. What's the pricing environment like? And how should we think about that going forward?

偉大的。並且只是對定價進行快速跟進。我想這遍及生命科學的各個層面。定價環境如何？我們該如何思考未來的發展？

Yes. I think that the environment is still inflationary. As you probably appreciate, Conor, on the clinical side, tender-driven business, you can only take very modest and periodic price increases. And we do that when we get that opportunity.

是的。我認為環境仍然是通貨膨脹的。康納，正如您可能意識到的那樣，在臨床方面，招標驅動的業務中，您只能接受非常適度和定期的價格上漲。當我們有機會時我們就會這樣做。

On Life Science, there is still inflationary effect and we will still look to try and take modest price increases as we move forward to help offset our inflationary pressures that we're receiving. And we expect to do -- we've done that this year. We expect to do that next year. And I think in the quarter, we probably got just over 1 point of price -- 1.5 points of price on a net basis and think that, that should at least be a [floor].

在生命科學領域，通膨效應仍然存在，我們仍將嘗試適度提高價格，以幫助抵消我們所承受的通膨壓力。我們希望這樣做——我們今年已經做到了。我們預計明年就能做到這一點。我認為在本季度，我們的價格可能略高於 1 個點——淨價格為 1.5 個點，並認為，這至少應該是一個[下限]。

We've seen a mix impact there with process chrome as well.

我們也看到了製程鉻的混合影響。

Yes, yes.

是的是的。

Okay. And just a final question. This for Norm. Just given the recent selloff in the space and specifically in your stock, how does that change your acquisition strategy if at all? And would you still considering -- would you still consider issuing equity to pursue an acquisition target in this environment?

好的。最後一個問題。這是為了規範。鑑於該領域最近的拋售，特別是您的股票的拋售，這會如何改變您的收購策略（如果有的話）？在這種環境下，您是否還會考慮發行股權以追求收購目標？

So I think that kind of in light of the recent stock dislocation, I think we will very much consider continuing our share repurchases as part of our capital allocation strategy and obviously, at this point, not such a good currency for M&A.

因此，我認為鑑於最近的股票混亂，我認為我們將非常考慮繼續股票回購，作為我們資本配置策略的一部分，顯然，在這一點上，這不是併購的好貨幣。

I think, in fact, while we do continue to kind of look at opportunities, I think it's probably fair to say that more of our focus over the next several quarters will be centered around kind of navigating our markets and our continued operational transformation.

我認為，事實上，雖然我們確實在繼續尋找機會，但我認為可以公平地說，我們在未來幾季的更多重點將集中在開拓市場和持續營運轉型上。

There are no further questions at this time. I would like to turn it back to Edward Chung for further remarks.

目前沒有其他問題。我想將其轉回愛德華·鐘以進一步發表評論。

Thank you for joining today's call. As always, we appreciate your interest, and we look forward to connecting soon. Thanks, operator.

感謝您參加今天的電話會議。一如既往，我們感謝您的關注，並期待盡快建立聯繫。謝謝，接線生。

Thank you. And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。