Bio Rad Laboratories Inc (BIO) 2024 Q4 法說會逐字稿

Thank you for standing by. My name is Prila and I will be your conference operator today. At this time, I would like to welcome everyone to the Bio-Rad fourth quarter and full year 2024 results conference call and Webcast.

感謝您的支持。我叫 Prila，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Bio-Rad 2024 年第四季和全年業績電話會議和網路廣播。

All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員指示）謝謝。

I would now like to turn the conference over to Edward Chung, Head of Investor Relations. You may begin.

現在，我想將會議交給投資者關係主管 Edward Chung。你可以開始了。

Thanks, operator. Good afternoon everyone and thank you for joining us. Today, we will review the fourth quarter and full year 2024 financial results and provide an update on key business trends for Bio-Rad. With me on the call today are Norman Schwartz, our Chief Executive Officer; Jon DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer.

謝謝，接線生。大家下午好，感謝大家的參與。今天，我們將回顧 2024 年第四季和全年財務業績，並提供 Bio-Rad 主要業務趨勢的最新資訊。今天與我一起參加電話會議的還有我們的執行長諾曼·施瓦茨 (Norman Schwartz)、總裁兼首席營運官喬恩·迪文森佐 (Jon DiVincenzo) 和執行副總裁兼首席財務官羅普·拉卡拉朱 (Roop Lakkaraju)。

Before we begin our review, I would like to remind everyone that we will be making forward-looking statements about management's goals, plans and expectations, our future financial performance and other matters.

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。

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.

這些聲明是基於對未來事件的假設和預期，而這些假設和預期會受到風險和不確定性的影響。我們的實際結果可能與這些計劃、目標和預期有重大差異。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. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release.

該公司不打算更新今天電話會議中所做的任何前瞻性陳述。最後，我們今天的發言將涉及非公認會計準則財務數據，包括淨收入和每股稀釋收益，這些都是公認會計準則未定義的財務指標。投資者應審查這些非公認會計準則指標與我們收益報告中可比較公認會計準則結果的對帳情況。

With that, I will now turn the call over to our Chief Operating Officer, Jon DiVincenzo.

現在，我將把電話轉給我們的營運長 Jon DiVincenzo。

Hello and thank you, everyone, for joining today's call. Since joining Bio-Rad five months ago, I'm excited to share the progress we've made in aligning our strategic priorities, focusing on execution and achieving key milestones in our transformation.

大家好，感謝大家參加今天的電話會議。自從五個月前加入 Bio-Rad 以來，我很高興與大家分享我們在調整策略重點、注重執行和實現轉型關鍵里程碑方面所取得的進展。

First, I'm pleased to report that we successfully met our revised 2024 guidance for both revenue and operating margin as presented last August. Our clinical diagnostics business performed slightly better than forecasted, while our Life Science segment was affected by continued softness in the biopharma market.

首先，我很高興地報告，我們成功實現了去年 8 月提出的 2024 年收入和營業利潤率修訂指南。我們的臨床診斷業務表現略優於預期，而生命科學部門則受到生物製藥市場持續疲軟的影響。

Despite some revenue challenges, we achieved gross margin expansion in 2024 through our productivity improvements, driven by our lean initiatives in our manufacturing sites and supply chain execution of our global footprint rationalization and effective cost management.

儘管面臨一些收入挑戰，我們仍然透過提高生產力在 2024 年實現了毛利率成長，這得益於我們製造基地的精益舉措以及全球佈局合理化和有效成本管理的供應鏈執行。

These will be sustained improvements in our P&L in 2025. I'm also excited to announce that we've entered into a binding offer to acquire Stilla Technologies, a move we believe will significantly complement our digital PCR portfolio. Going forward, Stilla's platform would enhance our product strategy in applied research and clinical diagnostics, allowing us to expand our offerings in digital PCR.

這些將是我們 2025 年損益的持續改善。我也很高興地宣布，我們已經達成了收購 Stilla Technologies 的具有約束力的要約，我們相信此舉將極大地補充我們的數位 PCR 產品組合。展望未來，Stilla 的平台將增強我們在應用研究和臨床診斷方面的產品策略，使我們能夠擴展數位 PCR 領域的產品供應。

We expect the transaction to close at the end of Q3 2025, subject to consultation with relevant employee representatives, regulatory approvals and customary closing conditions. Additionally, we've taken further steps to streamline our cost structure. These actions are designed to better position Bio-Rad for success as we move toward our strategic and financial goals for 2025 and beyond.

我們預計交易將於 2025 年第三季末完成，但需與相關員工代表協商、獲得監管部門批准並滿足慣例成交條件。此外，我們也採取了進一步措施來簡化我們的成本結構。這些措施旨在幫助 Bio-Rad 在我們邁向 2025 年及以後的策略和財務目標的過程中取得更好的成功。

Looking across our markets, we saw the continued trends we've experienced over the past year. Diagnostic performed as expected with broad-based global demand. However, the Asia Pacific region saw a decline due to the earlier-than-expected adoption of a reimbursement change for diabetes testing in China during the fourth quarter. This adjustment, not related to volume-based procurement, standardizes rates for certain clinical diagnostic tests nationwide.

縱觀我們的市場，我們看到了過去一年來所經歷的持續趨勢。診斷表現符合預期，全球需求廣泛。然而，由於中國在第四季度比預期更早實施了糖尿病檢測報銷改革，亞太地區的銷售額出現下滑。此調整與大量採購無關，旨在規範全國某些臨床診斷測試的費率。

We don't currently anticipate further reimbursement changes for diagnostics in 2025. Keep in mind that China represents high single-digit percentage of Bio-Rad's total revenue.

我們目前預計 2025 年診斷費用報銷不會進一步變動。請記住，中國市場在 Bio-Rad 公司的總收入中所佔比例高達個位數。

In Life Science, we are seeing a modest recovery, though demand in biopharma in China remained soft. We did see a seasonal uptick from academic customers and biopharma research accounts. And our process chromatography sales improved in the second half of 2024 and we expect growth in this area in 2025.

在生命科學領域，我們看到了溫和的復甦，儘管中國對生物製藥的需求仍然疲軟。我們確實看到學術客戶和生物製藥研究帳戶的季節性成長。我們的工藝色譜銷售額在 2024 年下半年有所改善，我們預計該領域在 2025 年將實現成長。

We are also encouraged with the increased activity in new programs using our media which bodes well for the future outlook for our process chromatography business. For our Droplet Digital PCR portfolio, we saw continued strong demand for reagents and consumables with low double-digit growth year-over-year. Interest in our assays for oncology and cell and gene therapy applications remains high and we're maintaining strong win-loss ratios for our platform.

我們也對使用我們的介質的新項目的活動的增加感到鼓舞，這預示著我們的工藝色譜業務的未來前景良好。對於我們的液滴式數位 PCR 產品組合，我們看到對試劑和耗材的需求持續強勁，年成長率達到兩位數。人們對我們針對腫瘤學和細胞及基因治療應用的檢測的興趣仍然很高，並且我們的平台保持著強勁的勝負比。

Entering 2025, we expect a gradual recovery, particularly in the biopharma sector. While demand for instruments remain soft, we are having more conversations with biopharma customers and building a healthy order funnel. However, this gradual pace of recovery is likely to impact the uptake of life science instrumentation in the short term.

進入 2025 年，我們預計產業將逐步復甦，尤其是在生物製藥領域。雖然對儀器的需求仍然疲軟，但我們正在與生物製藥客戶進行更多對話並建立健康的訂單管道。然而，這種緩慢的復甦步伐可能會在短期內影響生命科學儀器的使用。

In the academic segment, research funding globally has been soft throughout 2024 and we have not factored in any change in dynamics for 2025. However, we need more information to understand the impact, if any, of last week's announcement on the cap for US NIH indirect funding.

在學術領域，2024 年全年全球研究資金一直疲軟，我們尚未考慮到 2025 年的任何動態變化。然而，我們需要更多的資訊來了解上周宣布的對美國國立衛生研究院間接資助上限的影響（如果有的話）。

In Europe, funding remained mixed with modest increases in Germany and the UK while France continues to be soft. And in Asia, we're seeing some early signs of improvement in research funding in China due to its stimulus programs.

在歐洲，融資情況仍喜憂參半，德國和英國的融資略有增加，而法國的融資則持續疲軟。在亞洲，我們看到中國在刺激計畫的推動下，其研究資金出現了一些改善的早期跡象。

So in 2025, our focus remains on operational and commercial excellence. We aim to increase consumables attachment and prioritize e-commerce as part of our growth strategy. And as I've discussed with many of you, innovation remains at the heart of Bio-Rad's long-term growth strategy.

因此，到 2025 年，我們的重點仍然是卓越的營運和商業。我們的目標是增加消耗品附件，並將電子商務作為我們成長策略的優先部分。正如我與你們許多人討論過的，創新仍然是 Bio-Rad 長期成長策略的核心。

Beyond our anticipated acquisition of Stilla, we're excited about key updates to our portfolio, including a refreshed NGC chromatography platform, the ChemiDoc Pro imaging system and a new version of our QX600 Digital PCR system for the diagnostic market.

除了預期收購 Stilla 之外，我們還對產品組合的關鍵更新感到興奮，包括更新的 NGC 色譜平台、ChemiDoc Pro 成像系統以及用於診斷市場的新版本 QX600 數位 PCR 系統。

We're also expanding our process chromatography portfolio with the launch of a larger 45-centimeter prepacked column and additional Nuvia resins that enhance purification capabilities. Our QX Continuum program is making significant progress and we continue to see it as an important part of our digital PCR portfolio in 2025 and beyond.

我們還擴大了我們的工藝色譜產品組合，推出了更大的 45 公分預裝柱和增強純化能力的額外 Nuvia 樹脂。我們的 QX Continuum 計畫正在取得重大進展，我們將繼續將其視為 2025 年及以後數位 PCR 產品組合的重要組成部分。

So given the moderated revenue growth outlook, we view 2025 as a stepping stone towards stronger profitable growth. We will continue driving innovation, enhancing our supply chain and implementing cost and productivity initiatives to support margin improvement. As the life science market normalizes, we believe Bio-Rad is well positioned to leverage top line growth.

因此，鑑於營收成長前景放緩，我們認為 2025 年是實現更強勁獲利成長的墊腳石。我們將繼續推動創新，加強我們的供應鏈，並實施成本和生產力措施來支持利潤率的提高。隨著生命科學市場逐漸正常化，我們相信 Bio-Rad 已做好準備，實現營收成長。

So, thank you for your continued support. I will now pass you to Roop to review the financial results.

所以，感謝您一直以來的支持。現在我將把您交給 Roop 來審查財務結果。

Thank you, Jon. Good afternoon. I'd like to start with a review of the fourth quarter and full year 2024 results. Net sales for the fourth quarter of 2024 were approximately $668 million which represents a 2% decline on a reported basis versus $681 million in Q4 of 2023.

謝謝你，喬恩。午安.我想先回顧一下 2024 年第四季和全年的業績。2024 年第四季的淨銷售額約為 6.68 億美元，與 2023 年第四季的 6.81 億美元相比下降 2%。

On a currency-neutral basis, this represents a 2.3% year-over-year decrease and was due to lower sales in our Life Science segment. Sales of the Life Science group in the fourth quarter of 2024 were $275 million compared to $291 million in Q4 of 2023 which is a decline of 5.5% on a reported basis and approximately 6% on a currency-neutral basis. Currency-neutral sales decreased across all regions. Excluding process dermatography sales, core Life Science Group revenue increased 2.5% year-over-year and 2% on a currency-neutral basis.

以貨幣中性計算，這比去年同期下降了 2.3%，原因是我們生命科學部門的銷售額下降。2024 年第四季生命科學集團的銷售額為 2.75 億美元，而 2023 年第四季為 2.91 億美元，按報告基礎計算下降 5.5%，以貨幣中性基礎計算下降約 6%。所有地區的貨幣中性銷售額均下降。不包括過程皮膚成像銷售額，生命科學集團核心收入年增 2.5%，以貨幣中性計算成長 2%。

Core Life Sciences growth was driven by consumable sales that improved low single digits sequentially and a mid-single digit year-over-year. Sales of the Clinical Diagnostics Group in the fourth quarter of 2024 were approximately $393 million compared to $389 million in Q4 of 2023 which is an increase of 0.9% on a reported basis and 0.7% on a currency-neutral basis.

核心生命科學業務的成長得益於消耗品銷售額的推動，該銷售額環比增長低個位數，同比增長中個位數。2024 年第四季臨床診斷集團的銷售額約為 3.93 億美元，而 2023 年第四季為 3.89 億美元，按報告基礎計算成長 0.9%，以貨幣中性基礎計算成長 0.7%。

Growth of Diagnostics was primarily driven by increased demand for our quality control and blood typing products. Offsetting the higher demand, our diabetes portfolio experienced a revenue decline due to the intra-quarter China reimbursement change that reduced sales by an estimated mid-single-digit million or approximately 75 basis points and affected Q4 gross margin by the same amount.

診斷業務的成長主要得益於對我們的品質控制和血型產品的需求增加。儘管需求增加，但我們的糖尿病產品組合的收入卻出現下降，原因是本季度中國報銷政策發生變化，導致銷售額減少約數千萬或約 75 個基點，並對第四季度的毛利率產生了相同影響。

On a geographic basis, currency-neutral sales increased in EMEA and Americas. Q4 reported GAAP gross margin was 51.2% as compared to 53.8% in the fourth quarter of 2023. The decrease in gross margin was driven by a restructuring expense to further rightsize our footprint and the impact of the reimbursement reduction for diabetes test in China.

從地理角度來看，剔除匯率因素，歐洲、中東和非洲地區以及美洲地區的銷售額均有所成長。第四季報告的 GAAP 毛利率為 51.2%，而 2023 年第四季為 53.8%。毛利率下降的原因是重組費用，以進一步調整我們的業務範圍，以及中國糖尿病測試報銷減少的影響。

As Jon alluded to earlier, we are continuing to proactively manage our cost structure including the recent implementation of a 5% workforce reduction to further align headcount for our global organization. The impact of these actions is contemplated in our guidance and should yield savings of $50 million to $55 million in 2025 with fully annualized savings of approximately $60 million to $65 million in 2026.

正如喬恩之前提到的，我們將繼續積極管理我們的成本結構，包括最近實施的 5% 裁員計劃，以進一步調整我們全球組織的員工人數。我們在指導意見中考慮了這些行動的影響，預計到 2025 年將節省 5,000 萬至 5,500 萬美元，到 2026 年將節省約 6,000 萬至 6,500 萬美元。

SG&A expenses for fourth quarter of 2024 were approximately $204 million or 30.6% of sales compared to $207 million or 30.4% in Q4 of 2023. Research and development expense in the fourth quarter was approximately $80 million or 11.9% of sales compared to $64 million or 9.4% of sales in Q4 of 2023.

2024 年第四季的銷售、一般及行政費用約為 2.04 億美元，佔銷售額的 30.6%，而 2023 年第四季為 2.07 億美元，佔銷售額的 30.4%。第四季研發費用約為 8,000 萬美元，佔銷售額的 11.9%，而 2023 年第四季研發費用為 6,400 萬美元，佔銷售額的 9.4%。

Q4 operating income was approximately $58 million or 8.7% of sales compared to $95 million or 14% of sales in Q4 of 2023.

第四季營業收入約為 5,800 萬美元，佔銷售額的 8.7%，而 2023 年第四季營業收入為 9,500 萬美元，佔銷售額的 14%。

During the quarter, interest and other income resulted in net other income of $9 million which is unchanged versus the prior year. The change in fair market value of equity security holdings which are substantially related to the ownership of Sartorius AG shares, led to a $977 million loss which resulted in a reported net loss of $716 million or $25.57 diluted loss per share.

本季度，利息和其他收入產生淨其他收入 900 萬美元，與前一年相比沒有變化。與 Sartorius AG 股份所有權密切相關的股權證券持有量公平市場價值的變化導致了 9.77 億美元的損失，從而導致報告淨虧損 7.16 億美元或每股攤薄虧損 25.57 美元。

The effective tax rate for the fourth quarter of 2024 was 21.2% compared to 18.4% for the same period in 2023. The effective tax rate reported in these periods was primarily affected by the accounting treatment of our equity securities.

2024 年第四季的有效稅率為 21.2%，而 2023 年同期的有效稅率為 18.4%。這些期間報告的有效稅率主要受到我們股權證券的會計處理的影響。

Moving to the non-GAAP results. Non-GAAP financial measures which exclude certain atypical and unique items that impact both gross and operating margins and other income are detailed in the reconciliation table in our press release. Fourth quarter non-GAAP gross margin was 53.9% compared to 54.4% in Q4 of 2023.

轉向非 GAAP 結果。非公認會計準則財務指標不包括某些影響毛利率和營業利潤以及其他收入的非典型和獨特項目，詳見我們新聞稿中的對帳表。第四季非公認會計準則毛利率為 53.9%，而 2023 年第四季為 54.4%。

Fourth quarter non-GAAP operating margin was 13.8% compared to 15.5% in 2023. Non-GAAP effective tax rate for the fourth quarter of 2024 was 20.9% compared to 22.3% for the same period in 2023.

第四季非公認會計準則營業利益率為 13.8%，而 2023 年為 15.5%。2024 年第四季非公認會計準則有效稅率為 20.9%，而 2023 年同期為 22.3%。

Finally, non-GAAP net income for the fourth quarter of 2024 was $81 million or $2.90 diluted earnings per share.

最後，2024 年第四季的非 GAAP 淨收入為 8,100 萬美元，即每股攤薄收益 2.90 美元。

And now for the full year results. Net sales for the full year of 2024 were $2.567 billion which represents a 3.9% decline on a reported basis versus $2.67 billion in 2023. On a currency-neutral basis, this represents a 3.6% decrease and was driven primarily by lower sales in our Life Science segment.

現在來看看全年業績。2024 年全年淨銷售額為 25.67 億美元，與 2023 年的 26.7 億美元相比下降 3.9%。以貨幣中性計算，這代表著 3.6% 的下降，主要原因是生命科學部門的銷售額下降。

Sales of the Life Science Group for 2024 were approximately $1.28 billion compared to $1.78 billion in 2023 which is a decline of 12.8% on a reported basis and 12.6% on a currency-neutral basis. Currency-neutral sales decreased across all regions. Sales of the Clinical Diagnostics Group for 2024 were $1.538 billion compared to $1.499 billion in 2023 which represents a 3.3% increase on a reported basis and 3.7% growth on a currency-neutral basis.

生命科學集團 2024 年的銷售額約為 12.8 億美元，而 2023 年為 17.8 億美元，按報告基礎計算下降 12.8%，以貨幣中性基礎計算下降 12.6%。所有地區的貨幣中性銷售額均下降。臨床診斷集團 2024 年的銷售額為 15.38 億美元，而 2023 年的銷售額為 14.99 億美元，按報告基礎計算增長 3.3%，按貨幣中性基礎計算增長 3.7%。

Growth of Diagnostics was primarily driven by increased demand for our quality control and blood typing products. On a geographic basis, currency-neutral revenue grew across all three regions. As we had targeted, overall full year non-GAAP gross margin reached 55% compared to 54.2% in 2023. The year-over-year margin increase was driven mainly by the impact of operational improvements made throughout the year and a favorable product mix.

診斷業務的成長主要得益於對我們的品質控制和血型產品的需求增加。從地理角度來看，剔除貨幣因素，三個地區的收入均達到成長。正如我們所設定的目標，全年非公認會計準則毛利率達到 55%，而 2023 年為 54.2%。利潤率年增率主要得益於全年營運改善和有利的產品組合的影響。

Full year non-GAAP SG&A expense was $799 million or 31.1% of sales compared to $815 million or 30.5% in 2023. The decrease in dollars of SG&A expense was primarily due to a reduction in discretionary spending and lower employee-related costs.

全年非公認會計準則銷售、一般及行政費用為 7.99 億美元，佔銷售額的 31.1%，而 2023 年為 8.15 億美元，佔銷售額的 30.5%。銷售、一般及行政費用的減少主要是由於可自由支配支出的減少和員工相關成本的降低。

Full year non-GAAP R&D was $282 million or 11% of sales versus $255 million or 9.5% in 2023. The increase in non-GAAP R&D was primarily due to a onetime acquired in-process research and development expense of $30 million related to the Sabre Bio acquisition.

全年非 GAAP 研發費用為 2.82 億美元，佔銷售額的 11%，而 2023 年為 2.55 億美元，佔銷售額的 9.5%。非公認會計準則研發費用的增加主要由於與 Sabre Bio 收購相關的一次性在研研發費用 3000 萬美元。

Full year non-GAAP operating margin was 12.9% compared to 14.2% in 2023 which reflects the effects of revenue decline and the aforementioned in-process R&D expense, offset by favorable product mix and the impact of operational improvements. Lastly, the non-GAAP effective tax rate for the full year of 2024 was 23.6%.

全年非公認會計準則營業利潤率為 12.9%，而 2023 年為 14.2%，這反映了收入下降和上述在研研發費用的影響，但被有利的產品組合和營運改善的影響所抵銷。最後，2024 年全年非公認會計準則有效稅率為 23.6%。

Moving to the balance sheet. Total cash and short-term investments at the end of Q4 2024 for $1.665 billion compared to $1.628 billion at the end of Q3 2024. Inventory at the end of Q4 was $760 million, down from $804 million in the prior quarter as we continue to make progress on reducing inventory.

轉到資產負債表。2024 年第四季末的現金和短期投資總額為 16.65 億美元，而 2024 年第三季末為 16.28 億美元。由於我們在減少庫存方面繼續取得進展，第四季末的庫存為 7.6 億美元，低於上一季的 8.04 億美元。

For the fourth quarter of 2024, net cash generated from operating activities was approximately $124 million compared to $81 million for Q4 of 2023. For the full year of 2024, net cash generated from operations improved to $455 million versus $375 million in 2023 and was driven by the focused efforts in improving working capital efficiency.

2024 年第四季度，經營活動產生的淨現金約為 1.24 億美元，而 2023 年第四季為 8,100 萬美元。2024 年全年，經營活動產生的淨現金從 2023 年的 3.75 億美元增至 4.55 億美元，這得益於公司致力於提高營運資金效率。

Net capital expenditures for the fourth quarter of 2024 were approximately $43 million where full year net capital expenditures were $166 million. Depreciation and amortization for the fourth quarter was $39 million and $152 million for the full year.

2024 年第四季的淨資本支出約為 4,300 萬美元，全年淨資本支出為 1.66 億美元。第四季折舊和攤提為 3,900 萬美元，全年折舊和攤提為 1.52 億美元。

Fourth quarter of 2024 free cash flow was approximately $81 million which compares to $39 million in Q4 23. For the full year of '24, free cash flow was approximately $290 million which compares to $218 million for the full year of 2023. Full year 2024 buybacks totaled 691,000 shares for approximately $202 million. And over the past years, we've deployed over $630 million for share repurchases. Considering the current dynamic environment, we expect to do further share repurchases and have approximately $577 million available for buybacks under the current board authorized program.

2024 年第四季的自由現金流約為 8,100 萬美元，而 23 年第四季為 3,900 萬美元。24 年全年自由現金流約 2.9 億美元，而 2023 年全年自由現金流為 2.18 億美元。2024 年全年回購總額為 691,000 股，價值約 2.02 億美元。過去幾年，我們已投入超過 6.3 億美元用於股票回購。考慮到當前的動態環境，我們預計將進一步回購股票，並根據當前董事會授權的計劃有約 5.77 億美元可用於回購。

Moving on to the non-GAAP guidance for 2025. We're guiding a currency-neutral revenue growth for the full year to be between 1.5% and 3.5% which excludes any revenue from acquisitions. On an as-reported basis, Q1 is expected to be approximately 5% to 7% lower on a year-over-year basis and then sequentially improving each quarter. Life Science Group year-over-year currency-neutral revenue growth is expected to be between 1.5% and 3.5% with our processed chromatography business poised to increase high single digits.

繼續討論 2025 年非 GAAP 指導。我們預計全年貨幣中性收入成長率將在 1.5% 至 3.5% 之間，其中不包括任何收購收入。據報道，預計第一季的銷售額將年減約 5% 至 7%，之後每季都會逐漸改善。生命科學集團預計年比貨幣中性收入成長將在 1.5% 至 3.5% 之間，其中我們的加工色譜業務預計將實現高個位數成長。

Note that this outlook contemplates a dynamic -- soft academic environment but does not consider last week's proposed NIH indirect spending actions. Overall, NIH funding is not a significant component of our total sales. Specifically, we estimate that the US academic and government segment represents approximately a high single-digit percent of Bio-Rad revenue.

請注意，這種前景考慮了一個動態的軟學術環境，但沒有考慮上週提出的 NIH 間接支出行動。總體而言，NIH 資助並不是我們總銷售額的重要組成部分。具體來說，我們估計美國學術和政府部門約佔 Bio-Rad 收入的個位數百分比。

A subset of our US academic and government segment is federally funded research, including the NIH. We estimate our total federally funded research exposure as approximately 4% of our revenue. For the Diagnostics group, we have to make currency-neutral revenue growth to be between 2% and 3%.

我們美國學術和政府部門的一個子集是聯邦政府資助的研究，包括美國國立衛生研究院 (NIH)。我們估計聯邦政府資助的研究總額約占我們收入的 4%。對於診斷組，我們必須使貨幣中性收入成長率達到 2% 至 3% 之間。

As a reminder, our growth outlook for clinical diagnostics includes approximately a 100-basis point impact in 2025 due to the partner's exit from the donor screening business and approximately a 60-basis impact from the reimbursement reduction for diabetes testing in China.

提醒一下，由於合作夥伴退出捐贈者篩檢業務，我們對臨床診斷的成長前景包括 2025 年約 100 個基點的影響，以及中國糖尿病檢測報銷減少約 60 個基點的影響。

Full year non-GAAP gross margin is projected to be between 55% and 55.5% and includes the approximately 60 basis point incremental gross margin headwind related to the reimbursement reduction for our diabetes business.

預計全年非公認會計準則毛利率將在 55% 至 55.5% 之間，其中包括與糖尿病業務報銷減少相關的約 60 個基點的增量毛利率阻力。

On a quarterly basis, we expect Q1's gross margin to be like Q4 2024. Subsequent to Q1, we expect steady sequential improvement because of the continued productivity and efficiency benefits from our operational initiatives and improved sales volume.

按季度計算，我們預計第一季的毛利率將與 2024 年第四季相同。在第一季之後，我們預計業績將穩步環比成長，因為我們的營運措施和銷售量的提高將持續帶來生產力和效率的提升。

We look to target exiting the year in the high 55% gross margin range. Full year non-GAAP gross margin is projected to be between 55% and 55.5%. This includes the 60 basis point effect from the reimbursement change, as mentioned earlier as well as the headwinds from the strengthening of the US dollar representing approximately $70 million or 250 basis point headwind through 2025 revenue and an approximate 40 basis point drag on operating margin.

我們的目標是在今年年底實現 55% 的高毛利率。預計全年非公認會計準則毛利率在 55% 至 55.5% 之間。這包括前面提到的報銷變化帶來的 60 個基點的影響，以及美元走強帶來的阻力，這將對 2025 年的收入造成約 7,000 萬美元或 250 個基點的阻力，並對營業利潤率造成約 40 個基點的拖累。

In addition, we are making nice progress with Sabre Bio which we purchased last summer and plan to achieve a key development milestone in 2025. The result is a potential $10 million R&D expense or a 40 basis point impact which would impact both GAAP and non-GAAP results and have been considered in our guidance range.

此外，我們去年夏天收購的 Sabre Bio 也取得了良好的進展，並計劃在 2025 年實現關鍵的發展里程碑。結果是潛在的 1000 萬美元研發費用或 40 個基點的影響，這將影響 GAAP 和非 GAAP 結果，並且已在我們的指導範圍內考慮。

We estimate a non-GAAP full year tax rate to be approximately 23%. CapEx is projected to be approximately $160 million to $180 million as we continue to invest in our infrastructure to support our multiyear transformation. We anticipate full year cash, free cash flow of approximately $310 million to $330 million for 2025 as compared to $290 million for 2024.

我們估計非公認會計準則全年稅率約為 23%。由於我們將繼續投資基礎設施以支持我們多年的轉型，預計資本支出約為 1.6 億至 1.8 億美元。我們預計 2025 年全年現金、自由現金流約為 3.1 億至 3.3 億美元，而 2024 年為 2.9 億美元。

With that, I'll now turn the call over to Norman for his remarks.

現在，我將把電話交給諾曼，請他發言。

Thanks, Roop. Just maybe take a minute and build on Jon and Roop's comments. I think that 2024 was certainly a productive year. First, we assembled a new leadership team that's been tasked with driving performance at Bio-Rad.

謝謝，Roop。也許只需花一點時間來鞏固 Jon 和 Roop 的評論。我認為 2024 年肯定是個豐碩的一年。首先，我們組建了一個新的領導團隊，負責推動 Bio-Rad 的表現。

They've certainly hit the ground running kind of focused on improving top line growth and driving margin expansion, all despite the headwinds in several of our key end markets. As for the innovation and building on our core portfolio, I think we've advanced our ddPCR platform with expanded applications. introduced new key portfolio refreshed products like the ChemiDoc Go Imaging System and growing our cell biology product offerings. I think it's important that we also made investments in companies with potentially best-in-class diagnostics using our ddPCR technology like Geneoscopy and OncoCyte.

儘管我們幾個主要的終端市場面臨阻力，但他們還是積極行動起來，專注於提高營收成長和推動利潤率擴張。至於創新和核心產品組合的構建，我認為我們已經透過擴展應用程式改進了我們的 ddPCR 平台，推出了新的關鍵產品組合更新產品，如 ChemiDoc Go 成像系統，並擴大了我們的細胞生物學產品供應。我認為重要的是，我們也對使用我們的 ddPCR 技術的潛在最佳診斷公司（如 Geneoscopy 和 OncoCyte）進行了投資。

To support our growth initiatives, we have looked at M&A to complement what we're doing internally. I think a good example is our anticipated acquisition of Stilla which should broaden and accelerate our ability to provide enabling tools in the digital PCR space.

為了支持我們的成長計劃，我們考慮透過併購來補充我們的內部工作。我認為一個很好的例子是我們預期收購 Stilla，這將拓寬和加速我們在數位 PCR 領域提供支援工具的能力。

As mentioned, we also recently acquired Sabre Bio, an entirely new platform utilizing our core droplet technology, really enabling high throughput discovery of novel antibodies and T cell receptors, principally for the biopharma market.

如上所述，我們最近也收購了 Sabre Bio，這是一個利用我們核心液滴技術的全新平台，真正實現了新型抗體和 T 細胞受體的高通量發現，主要針對生物製藥市場。

So, all in all, I guess I'd like to reiterate that we view our strategy and our focus for the future growth of the company to be very much intact. In Clinical Diagnostics, our business has returned to its normalized growth rate post pandemic with leading market positions here globally for our core platforms and are investing to support their growth while building a position in new molecular diagnostics segment.

總而言之，我想重申一下，我們認為我們的策略和公司未來發展的重點是非常完整的。在臨床診斷領域，我們的業務在疫情後恢復了正常的成長率，我們的核心平台在全球市場處於領先地位，我們正在投資支持其成長，同時在新的分子診斷領域建立地位。

Similarly, in Life Science, we continue to focus on the biopharma area especially for our digital PCR and process chromatography products as well as new development around cell biology. And of course, we continue to invest to broaden our offerings in digital PCR and other focus areas in our academic markets.

同樣，在生命科學領域，我們繼續專注於生物製藥領域，特別是我們的數位 PCR 和製程色譜產品以及圍繞細胞生物學的新發展。當然，我們將繼續投資，以擴大我們在數位 PCR 和學術市場其他重點領域的產品服務。

I guess in summary, overall, I believe we're well aligned and well positioned to drive long-term growth in our markets as we move through this current dynamic period. And thank you all for your support and interest in Bio-Rad.

總而言之，我相信，在當前這個充滿活力的時期，我們已經做好了充分的準備，能夠推動我們市場的長期成長。感謝大家對 Bio-Rad 的支持與關注。

So with that, maybe I'll turn it back over to Ed. Ed?

那麼，也許我應該把它交還給 Ed。 Ed？

That concludes our prepared remarks today. We'll now open the line to take your questions. Operator?

我們今天的準備演講到此結束。我們現在將開通熱線回答您的問題。操作員？

(Operator Instructions) Patrick Donnelly with Citi.

（操作員指示）花旗銀行的帕特里克·唐納利。

Lizi on for Patrick. I guess, just on for Patrick. I guess, just on the Life Science's guide, what does that imply, I guess, for ddPCR growth at 1.5% to 3.5%? I know you said process chrome was high single digit but just wondering what ddPCR is considered.

莉茲替換派崔克上場。我想，只是為了派崔克。我想，僅根據生命科學指南，這對 ddPCR 成長率為 1.5% 到 3.5% 意味著什麼？我知道您說過程鉻是高個位數，但只是想知道 ddPCR 被認為是什麼。

So from a ddPCR, overall, we gave an over -- it's more towards kind of the 1% to 2% from a ddPCR but process chrome in the high single-digit range. Just to reinforce. And as a reminder, the acquisition that we just announced, our proposed acquisition that we just announced isn't included in that range. And so we would see that as potentially being additive depending upon where that closes this year.

因此，從 ddPCR 來看，總體而言，我們給出了一個過度 - 它更傾向於從 ddPCR 獲得 1% 到 2%，但製程鉻在高個位數範圍內。只是為了加強。提醒一下，我們剛剛宣布的收購，我們剛剛宣布的擬議收購併不包括在該範圍內。因此，我們認為這可能會具有附加性，具體取決於今年的收盤價。

Got it. And then just on the margin guide, the gross margin guide for this year, the $50 million to $55.5 million, I guess, can you walk through the different scenarios? Like what gets you the high end, what's get you to the low end? And just be curious there but that's it for me.

知道了。然後就利潤率指南、今年的毛利率指南而言，我想是 5000 萬美元到 5550 萬美元，您能介紹一下不同的情況嗎？例如什麼能讓你達到高端，什麼能讓你達到低端？只是好奇而已，但對我來說僅止於此。

Yes, of course. So obviously, the midpoint being about at 13.25% the ability to march up is really end market dependent, primarily. And so academia is soft as we come into the year. Biotech, biopharma, although there are some signals of improvement, still remains relatively soft.

是的當然。因此顯然，中點約為 13.25%，上漲的能力主要取決於終端市場。因此，隨著我們進入新的一年，學術界變得疲軟。生物技術、生物製藥雖然出現了一些改善的訊號，但仍相對疲軟。

And I think as we think about how China continues to evolve, can the stimulus actually provide any uplift, these sort of things. So those are things that can take us to the higher end.

我認為，當我們思考中國如何繼續發展時，刺激措施是否真的能帶來任何提振作用，諸如此類的事情。所以這些都是可以讓我們達到更高境界的東西。

And I guess I would say, depending upon how those end markets react, if they were on the negative side, or a little bit more negative than what we've assumed, that might lead us towards the lower end of that range.

我想說的是，這取決於這些終端市場的反應，如果它們處於負面狀態，或者比我們假設的更負面一點，這可能會導致我們走向該範圍的低端。

Dan Leonard with UBS.

瑞銀的丹·倫納德（Dan Leonard）。

I have a couple. The first one on process chromatography, I just want to confirm my math here. Did that product line decline more than 50% in the fourth quarter and ended up declining about 50% for the full year. Is that correct?

我有一對。第一個是關於過程層析法的，我只是想在這裡確認我的數學。該產品線在第四季度的銷量下降是否超過 50%，並且全年銷量下降了約 50%。對嗎？

Yes, that's correct, right, Dan.

是的，沒錯，丹。

And then, Roop, that's been a very wide variable. What's your conviction in that high single-digit growth forecast for 2025?

然後，Roop，這是一個非常大的變數。您對 2025 年高個位數成長預測有何信心？

Yes. We feel pretty strong about that with kind of the destocking that we've talked about continuing with our customers. Obviously, our -- part of our conviction is around the direct customer conversations that we've been having. So we feel good about that high single-digit number.

是的。我們對此感到非常強烈，因為我們一直在與客戶討論如何繼續減少庫存。顯然，我們的信念部分來自於我們與客戶進行的直接對話。因此，我們對這個較高的個位數感到滿意。

Okay. And then as a follow-up, I just wanted to better understand the operating margin bridge for 2025. It looks like it's about 100 basis point year-on-year decline, if you correct 2024 for the IPRD charge. And it sounds like that decline is entirely due to the China diagnostics and foreign currency.

好的。然後作為後續，我只是想更了解 2025 年的營業利潤率橋樑。如果根據 IPRD 費用修正 2024 年，看起來比去年同期下降約 100 個基點。聽起來，這種下降完全是由於中國診斷和外幣造成的。

So I guess, one, can you confirm that? Two, it sounds then like if that math is right, operating margins would have otherwise been flat. But how would that reconcile a flat operating margin picture with that 5% head count reduction. So I know that's kind of a multi-parter there but just any help you could offer.

所以我想，第一，你能證實這一點嗎？第二，聽起來如果這個計算正確的話，營業利潤率本來應該是持平的。但是，如何才能使平穩的營業利潤率與 5% 的員工人數減少相協調呢？所以我知道這是一個多部分的事情，但您可以提供任何幫助。

Yes, of course. So let me try and take it piece by a bit there. In terms of the March, the first part is the China reimbursement is 60 basis points, right? So that's one. The next part of that is the FX effect which is 40 basis points headwind.

是的當然。因此，讓我嘗試一點一點地解決這個問題。就3月來說，第一部分是中國償還是60個基點，對嗎？這就是其中之一。下一部分是外匯效應，即 40 個基點的逆風。

So that gets you to about 100 basis points. The other piece that I mentioned which is also 40 basis points that we factored into the guide that we provided which will likely be a Q3 event, is an additional $10 million onetime R&D, in-process R&D expense that we'll incur for the Sabre Bio acquisition that we just completed last summer.

這樣就達到了大約 100 個基點。我提到的另一部分也是 40 個基點，我們在提供的指南中將其考慮在內，這可能是第三季度發生的事件，這是我們為去年夏天剛完成的 Sabre Bio 收購而產生的額外的 1000 萬美元一次性研發、在研研發費用。

The development of the products there are moving along pretty well. And as such, there's some earn-outs that would be achieved as a result of that. And therefore, that charge would be there. So the total of that is about 140 basis points overall, Dan.

那裡的產品開發進展相當順利。因此，這樣做可以實現一些盈利。因此，這項指控就會存在。因此，總計大約是 140 個基點，丹。

And so if you march that up from the guide, I would say it, from our guide perspective, of 13.25% midpoint, that kind of gives you a sense of where we would be in kind of the mid- to high 14% stands those sort of headwinds.

因此，如果您根據指南進行改進，我想說，從我們的指南角度來看，中點為 13.25%，這可以讓您了解我們處於 14% 的中高水平，面臨這種逆風。

As it relates to the 5% workforce reduction, obviously, that was a difficult thing for us to do. However, what it does provide us is to offset otherwise some of the expenditures that would roll over on a year-over-year basis, whether that's merit and other aspects of that.

因為這涉及到 5% 的裁員，顯然，這對我們來說是一件困難的事。然而，它確實為我們提供了抵消部分逐年結轉的支出的機會，無論這是否是優點還是其他方面。

Brandon Couillard with Wells Fargo.

富國銀行的 Brandon Couillard。

Just on the Stilla acquisition. I mean, it's been around a while. Why now? What is complementary about it that your portfolio didn't already have? And can you share any financials about the asset, revenue base, installed base? And I imagine, would the business be dilutive, I guess, the losing money, would it be dilutive to margins and keeping numbers around that.

剛剛談到 Stilla 收購。我的意思是，它已經存在有一段時間了。為什麼是現在？它有哪些補充功能是您的投資組合所不具備的？您能分享有關資產、收入基礎、安裝基礎的財務資訊嗎？我想，這項業務是否會稀釋利潤，我猜，虧損是否會稀釋利潤並保持利潤率在那個水平左右。

This is Jon DiVincenzo. I'll take the first part. I mean, it's true that the company has been around for a while, a very solid team developing portfolio but they launched a new platform last year. It's kind of an all-in-one solution based on their proprietary chip technology, great workflow.

這是喬恩·迪文森佐。我將選擇第一部分。我的意思是，這家公司確實已經存在了一段時間，擁有一支非常強大的團隊來開發產品組合，但他們去年推出了一個新平台。這是一種基於其專有晶片技術的一體化解決方案，具有出色的工作流程。

And essentially, they saw themselves with a great product without a real global reach. So that's why we're excited about bringing that into our portfolio with our content that we have to put on in our expertise but being able to get to support more researchers around the world. So I think that's the key point why we grew very attractive to it today.

從本質上來說，他們認為自己擁有一款出色的產品，但卻沒有真正的全球影響力。因此，我們很高興將其納入我們的產品組合，其中包含我們必須納入我們的專業知識的內容，但能夠支持世界各地的更多研究人員。所以我認為這就是我們今天對它如此有吸引力的關鍵點。

Yes. And Brandon, let me add to Jon's comments. The other part in terms of, I think, application here with the Stilla -- potential Stilla products, allows us to address not just the entry level of the digital PCR market but also allows us to address the high end of the PCR market where we don't today. As to the cannibalization, we don't think it's actually cannibalizing anything.

是的。布蘭登，請容許我補充一下喬恩的評論。另一方面，我認為，Stilla 的應用——潛在的 Stilla 產品，使我們不僅能夠滿足數位 PCR 市場的入門級需求，還能滿足我們目前尚未滿足的 PCR 市場的高端需求。至於蠶食，我們認為它實際上並沒有蠶食任何東西。

We actually think it expands market opportunities for us and allows us to compete very effectively with other players in the marketplace. The way we think about -- it does have revenue today and I think that's the other thing we promised in terms of as we think about our M&A strategy, moving towards companies with products that are on market that have revenue.

我們確實認為它擴大了我們的市場機會，並使我們能夠與市場上的其他參與者進行非常有效的競爭。我們的想法是——它今天確實有收入，我認為這是我們在考慮併購策略時承諾的另一件事，即向市場上有產品且有收入的公司邁進。

And I think once we get them integrated and we think it should be accretive within 18 to 24 months from close and obviously, we'll work to try and get that accretive even faster but we think it will be a value add. So hopefully, that's helpful.

我認為，一旦我們將它們整合在一起，我們認為它應該在結束後的 18 到 24 個月內實現增值，顯然，我們會努力嘗試更快地實現增值，但我們認為這將是一個增值。希望這會有所幫助。

Okay. Need one clarification, Roop. I think you said first quarter reported revenue down 5% to 7%. I guess that implies organic is down maybe low to mid-singles, then do you expect a return to positive growth starting in the second quarter over the balance of the year? Is that how we think about sort of the phasing?

好的。需要澄清一點，Roop。我想您說過第一季報告的收入下降了 5% 至 7%。我想這意味著有機成長可能下降到低至中等水平，那麼您是否預計從第二季開始全年將恢復正成長？這就是我們對分階段的看法嗎？

Yes, I think that's a reasonable way to think about the phasing.

是的，我認為這是思考分階段的合理方法。

Okay. And then last one, just on the risk and the cost structure. If you don't mind giving more color around kind of what areas are targeted and what parts of the P&L, we'll see that manifest. And why now? And is this part of a larger evaluation of the portfolio or strategy of the company?

好的。最後一個是關於風險和成本結構。如果您不介意詳細說明目標區域和損益表的哪些部分，我們將會看到這一點。為什麼是現在？這是對公司投資組合或策略進行更廣泛評估的一部分嗎？

Yes. I mean, I think the why now, I think as we continue to evaluate our business, business structure and where we stand from a performance standpoint and just from an overall market perspective with the softness across different areas, we thought it's something -- it was the appropriate time to take such action. With that said, it's broad based.

是的。我的意思是，我認為為什麼現在，我認為當我們繼續評估我們的業務、業務結構以及從績效的角度和從整體市場的角度評估我們的立場時，考慮到不同領域的疲軟，我們認為這是某種事情——現在是採取此類行動的適當時機。話雖如此，它的基礎是廣泛的。

There's -- the majority of the actions are in the OpEx area. There is a little bit up in the infrastructure area within COGS within our supply chain organization but the predominance of it sits within our OpEx areas, R&D plus some SG&A areas.

大多數行動都發生在 OpEx 領域。我們的供應鏈組織中的 COGS 中的基礎設施領域略有上升，但其主要集中在我們的營運支出領域、研發以及一些銷售、一般及行政費用領域。

Jack Meehan with Nephron Research.

Jack Meehan 的 Nephron Research。

Wanted to start with the first quarter forecast. If I heard it right, you're assuming down 5% to 7% on sales. Can you talk about what you're assuming by segment within that? And I guess, just why the trend would be so different than kind of what we saw in the fourth quarter?

想從第一季的預測開始。如果我沒聽錯的話，您預計銷售額將下降 5% 到 7%。您能談談您對其中各個部分的假設嗎？我想，為什麼這股趨勢與我們在第四季看到的趨勢如此不同？

Yes. Thanks, Jack. So maybe just a clarification to make sure everyone has got it right. The 5% to 7% is on a year-over-year basis to give that comparative there. So that's that. Obviously, from a sequential standpoint, it also would be down from a Q4 2024. Two, to your point as to the why, there's a few different dimensions there.

是的。謝謝，傑克。因此也許只是澄清一下以確保每個人都理解正確。5% 到 7% 是按同比計算的，以便進行比較。就是這樣。顯然，從連續的角度來看，它也將比 2024 年第四季有所下降。二，關於你提到的原因，這裡面有幾個不同的面向。

Number one, the continued softness within the academic market and biotech, biopharma. The other thing is we've now factored in the full effect of both the donor screening business as well as the China reimbursement piece there.

第一，學術市場、生技、生物製藥市場持續疲軟。另一件事是，我們現在已經考慮到捐贈者篩選業務以及中國報銷部分的全部影響。

And then you've got FX headwinds that are all factoring into there. And then over, as we get through the year sequentially, we expect to see some level of recovery both on -- in the diagnostic space for us as well as the life sciences space for us.

然後你會看到外匯逆風，所有這些都是影響因素。然後，隨著我們逐年度過這一年，我們預計診斷領域和生命科學領域都會出現一定程度的復甦。

Got it. And just to clarify, that down 5% to 7% year-over-year, that's an all-in number inclusive of FX headwinds?

知道了。需要澄清的是，年減 5% 至 7% 是包含外匯不利因素在內的總數字嗎？

That's right.

這是正確的。

Okay. And it sounds like based on the commentary you said it's probably roughly even across both segments in the first quarter?

好的。聽起來，根據您所說第一季兩個部門的業績可能大致持平？

Yes. Just in terms of the downtick?

是的。僅就下滑而言？

Correct. Yes.

正確的。是的。

Yes. That's reasonable, Jack.

是的。這很合理，傑克。

Okay. Then I wanted to turn to China. So you said the region's high single-digit percentage of revenue, these reimbursement pressures concentrate in the diagnostics business, in diabetes today, if it's a $20 million kind of annualized cut you're talking about, it seems like pretty meaningful relative to probably what the exposure is.

好的。然後我想轉向中國。所以你說該地區的收入佔比很高，這些報銷壓力集中在診斷業務上，在今天的糖尿病領域，如果你談論的是 2000 萬美元的年度削減，那麼相對於可能的風險敞口來說，這似乎是相當有意義的。

I was just wondering if you could confirm that. And then second is just any thoughts around that spreading to other areas of the testing portfolio.

我只是想知道您是否可以證實這一點。其次，任何有關這一點的想法都會傳播到測試組合的其他領域。

And then second is just any thoughts around that spreading to other areas of the testing portfolio.

其次，任何有關這一點的想法都會傳播到測試組合的其他領域。

Yes. Maybe I'll start with the latter because that's obviously one of -- was one of our concerns especially as China adopted the reimbursement rate change for the A1c earlier that originally it was supposed to kick in, in 2025 and they brought it into fourth quarter, mid-fourth quarter. And so we learned in the mid- to late November time frame.

是的。也許我會從後者開始，因為這顯然是我們的擔憂之一，特別是因為中國早些時候採用了 A1c 的報銷率變化，最初該變化應該在 2025 年生效，但他們將其帶入了第四季度，即第四季度中期。我們在 11 月中下旬就了解到了這一點。

So we -- related to that, we don't think -- we don't expect at this time. And obviously, things seem to be subject to change. But we don't have any expectations that it should affect us in other areas that we support in the marketplace.

因此，與此相關，我們認為——我們目前不期望。顯然，事情似乎可能會改變。但我們並不期望它會影響我們在市場上支持的其他領域。

So, I think that's one aspect of it. In terms of the effect of it, the -- I guess, I think the way we said it in the script is not $20 million. I think that, Jack, that's the number you use there. More in the mid-teens kind of levels is what you ought to take out of that.

所以，我認為這是其中的一個面向。就其效果而言，我想，我們在劇本中所說的不是 2000 萬美元。傑克，我想這就是你在那裡使用的號碼。您應該從中汲取更多十幾歲左右的水平。

Okay. Yes, I think I was tacking on $5 million or so in the fourth quarter.

好的。是的，我認為我在第四季度增加了 500 萬美元左右。

But thank you.

但謝謝你。

Yes, that's what I was thinking. And then the last one, do you have a cash flow target for the year? It seemed like you made some progress on the working capital. Just be curious how you're thinking about that for '25.

是的，我就是這麼想的。最後一個問題，您今年有現金流目標嗎？看來您在營運資金方面取得了一些進展。我只是好奇你對 25 年有什麼看法。

Yes. Free cash flow, I gave a range of kind of $310 million to $330-ish million kind of range. And we finished that $290 million, so incremental amount. Obviously, we're working towards further improved working capital efficiencies across the board.

是的。自由現金流，我給的範圍是 3.1 億美元到 3.3 億美元左右。我們完成了 2.9 億美元，因此是增量金額。顯然，我們正在努力全面提高營運資金效率。

(Operator Instructions)

（操作員指示）

Conor McNamara with RBC Capital Markets.

加拿大皇家銀行資本市場的康納‧麥克納馬拉 (Conor McNamara)。

First off, on the NIH exposure, we appreciate the color and the numbers you gave around that. But -- and I recognize it's only been a week but have you had conversations with customers? And how are they changing their buying patterns or other -- this put them on a halt of spend? Or was there already some slowdown that they were anticipating some NIH cuts? So how should we think about that? If that's the case, how that's rebounding?

首先，關於 NIH 曝光，我們很欣賞您給出的顏色和數字。但是—我知道才過了一周，您與客戶進行過交談嗎？他們是如何改變購買模式或其他——這使他們停止消費？或者已經出現了一些放緩，以至於他們預計 NIH 會削減一些經費？那我們該如何看待這個問題呢？如果真是這樣，那反彈會怎麼樣？

Yes. I think it has come as a little bit of a shock to researchers. And I think they're -- they're in kind of a little bit of a wait-and-see mode as to what really happens. I would imagine, especially for capital equipment that will probably be -- probably more affected than anything else in the near term.

是的。我認為這對研究人員來說有點震驚。我認為他們有點處於觀望狀態，想知道會發生什麼事。我可以想像，特別是對於資本設備而言，短期內可能比其他任何因素受到的影響都要大。

Okay, great. And then just on the overall end markets and life sciences, what kind of assumptions are you making for the -- a rebound in the back half of the year? Are you assuming a gradual improvement with things returning kind of normal at the end of the year? Or how should -- how are you thinking about end markets?

好的，太好了。那麼就整體終端市場和生命科學而言，您對下半年的反彈做出了什麼樣的假設？您是否認為情況會逐漸好轉，到年底恢復正常？或者應該如何—您如何看待終端市場？

Yes. I guess, Conor, I wouldn't necessarily say we're going to say that it's going to get back to normal because I think that's an open question as to what is the new normal. With that said, we are expecting to see improvement as we go through the year with -- we'd anticipate Q4 being kind of the highest quarter but it's a sequential improvement from Q1 to Q2 and through the rest of the year.

是的。我想，康納，我不一定會說我們會說一切都會恢復正常，因為我認為對於什麼是新常態，這是一個懸而未決的問題。話雖如此，我們預計全年情況會有所改善——我們預計第四季度將是業績最高的一個季度，但這是從第一季度到第二季度以及今年剩餘時間的連續改善。

Got it. And then last one for me is just on the ddPCR franchise. Can you talk about how that market is progressing, both from a competitive standpoint and just from the acquisition and then from continuum? Or how should we think about the market growth and your ability to maintain share in the ddPCR market?

知道了。對我來說最後一個是關於 ddPCR 特許經營權。您能否從競爭的角度、收購的角度以及連續性的角度來談談該市場的發展？或者我們應該如何看待市場成長以及您在 ddPCR 市場中保持份額的能力？

I mean, it's certainly a competitive market. Today, we've got a number of players in the market. And of course, we continue to invest in the technology, both internally and through acquisition. We -- as we look forward, we look to the segmentation of our product line or our platforms within that product line.

我的意思是，這確實是一個競爭激烈的市場。如今，市場上已經有許多參與者。當然，我們將繼續對技術進行投資，包括內部投資和收購。展望未來，我們將關注產品線的細分或產品線內的平台。

And of course, continuing to build on the assay portfolio is an important consideration as well. So I don't know. I think there continues to be lots of opportunities there. And of course, we're -- we have yet to really scratch the surface on the diagnostics side.

當然，繼續擴大檢測組合也是一個重要的考慮因素。所以我不知道。我認為那裡仍然有很多機會。當然，我們還沒有真正觸及診斷上的皮毛。

Yes. So the Stilla platform actually allows us at a price point to compete where we don't participate today which is a robust part of the marketplace. And I think that, that's part of the excitement. It kind of bridges kind of where we are with continuum once that launch later this year to really the beat with the high-end QPCR marketplace and kind of more lower end segments of the ddPCR platform. So from a competitive standpoint, it allows us to participate in a market we don't really compete in today.

是的。因此，Stilla 平台實際上允許我們以一定的價格參與我們目前未參與的市場競爭，這是市場的一個強勁部分。我認為，這就是令人興奮的一部分。它在某種程度上將我們今年稍後推出的 Continuum 與高端 QPCR 市場以及 ddPCR 平台的更低端部分連接起來。因此，從競爭的角度來看，它使我們能夠參與我們今天實際上沒有競爭的市場。

Tycho Peterson with Jefferies.

Tycho Peterson 與 Jefferies 合作。

So on digital PCR guidance of 1% to 2% for the year. Does that assume equipment down again this year? And maybe can you put a finer point on the decline?

因此，今年數位 PCR 的指導值為 1% 至 2%。這是否意味著今年設備再次故障？您能否更詳細地說明一下這種下降趨勢？

Yes, Tycho, it doesn't presume that it's down but its instruments is still relatively soft. Consumables continue to be strong and has -- were strong through Q4. We're expecting that to continue into '25. And so that's kind of the major assumption there, is that instruments and that's really tied to biopharma, biotech, continue to be soft as well as academia.

是的，第谷，它並不認為它是向下的，但它的儀器仍然相對較軟。消耗品持續表現強勁，一直到第四季都表現強勁。我們預計這種趨勢將持續到2025年。因此，主要的假設是，與生物製藥、生物技術密切相關的儀器和學術研究將繼續保持軟性。

Okay. And then for this year, you laid out a handful of new product introductions. I guess, any way to think about contributions from those in aggregate?

好的。今年，您推出了一些新產品。我想，有沒有什麼方法可以考慮整體的貢獻？

They're not overly significant. They're not significant in terms of the introduction. They'll build into 2026 and beyond which is the most critical piece of getting them out to the market.

它們並不是太重要。就介紹而言，它們並不重要。他們將在 2026 年及以後進行開發，這是將其推向市場的最關鍵部分。

Okay. Two other quick ones. I guess, the messaging on capital allocation, I think you've kind of been messaging you could do bigger deals. You've obviously invested in Geneoscopy and OncoCyte. You did the deal today. So are you still focused on, I guess, smaller scale? Are you considering larger assets? And how do you think about balancing that with the buyback?

好的。另外兩個很快的。我想，關於資本配置的訊息，我認為你一直在傳達你可以做更大交易的訊息。您顯然已經投資了 Geneoscopy 和 OncoCyte。你今天完成了這筆交易。那麼，我猜您仍然專注於較小規模嗎？您是否考慮過更大的資產？您認為如何平衡這一點與回購？

Yes. I think that it's -- there are a couple of factors there. As you know, we've done a lot of kind of earlier-stage things in the last couple of years. And I think we certainly have pivoted it now. It still is a great example to things that come with our revenue generating.

是的。我認為——這裡面有幾個因素。如您所知，過去幾年我們做了很多早期階段的事情。我認為我們現在確實已經改變了它。它仍然是我們創收過程中遇到的一個很好的例子。

And as I think Jon said, they fit in our portfolio. And I think we can accelerate that through our global distribution. And then yes, so midsized or larger deals would be on our radar screen.

我認為喬恩說過，它們適合我們的投資組合。我認為我們可以透過全球分銷來加速這一進程。是的，中型或大型交易將進入我們的關注範圍。

Okay. And then last one, just on pricing. What are you kind of assuming ex the China diagnostic dynamics?

好的。最後一個問題，關於定價。您對中國診斷動態有何假設？

Yes. I guess if I net the China effect, we're somewhere around 1%. We're kind of 1.5%-ish thereabouts without it, in that ballpark.

是的。我想，如果扣除中國的影響，我們的比率大約在 1% 左右。如果沒有它，我們的佔比大概是 1.5% 左右，大致是如此。

And I'm showing no further questions at this time. I would like to turn it back to Edward to for closing remarks.

我現在沒有其他問題了。我想把話題交回給愛德華，請他做最後的發言。

All right. Thank you for joining today's call. We hope to catch up with you in person in the coming months. We're also finalizing plans for an Investor Day that we're targeting for mid-November. We'll look to get out a save-the-date notice as details become more concrete. And as always, we appreciate your interest and we look forward to connecting soon. Thank you.

好的。感謝您參加今天的電話會議。我們希望在接下來的幾個月裡能與您親自見面。我們也正在敲定投資者日的計劃，計劃於 11 月中旬舉行。隨著細節變得更加具體，我們將發出保存日期通知。像往常一樣，我們感謝您的關注，並期待盡快與您聯繫。謝謝。

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

謝謝各位主持人。女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。