Cryoport Inc (CYRX) 2024 Q2 法說會逐字稿

Good Afternoon.

午安.

Ladies and gentlemen, welcome to Cryoport Second Quarter 2024 earnings Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.

女士們、先生們，歡迎參加 Cryoport 2024 年第二季財報電話會議。此時，所有線路都處於只聽模式。演講結束後，我們將進行問答環節。（操作員說明）謹此提醒，此通話正在錄音。

I will now turn the call over to your host, Todd Fromer from KCSA Strategic Communications. Please go ahead.

我現在將把電話轉給主持人、KCSA 策略傳播部的 Todd Fromer。請繼續。

Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events or developments that we expect or anticipate occurring in the future are forward looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on the information currently available to our management team.

謝謝你，接線生。在今天開始之前，我想提醒大家，本次電話會議包含某些前瞻性陳述。所有涉及我們預期或預期未來發生的經營績效、事件或發展的聲明均為前瞻性聲明。這些前瞻性陳述是基於管理層的信念和假設，而不是基於我們管理團隊目前可獲得的資訊。

Our management team believes that these forward looking statements are reasonable as and when made. However, you should not place undue reliance on any such ls because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward looking statements whether as a result of new information or future events or otherwise, except as required by law.

我們的管理團隊相信這些前瞻性陳述在做出時是合理的。但是，您不應過度依賴任何此類聲明，因為此類聲明僅代表發布之日的情況。除非法律要求，否則我們不承擔任何義務公開更新或修改任何前瞻性陳述，無論是由於新資訊或未來事件還是其他原因。

In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events, and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in item 1a, risk factors and elsewhere in our annual report on Form 10-K filed with the Securities and Exchange Commission and those described from time to time in other reports which we filed with the Securities and Exchange Commission.

此外，前瞻性陳述也受到某些風險和不確定性的影響，這些風險和不確定性可能導致實際結果、事件和發展與我們的歷史經驗和當前的預期或預測有重大差異。這些風險和不確定性包括但不限於我們向證券交易委員會提交的10-K 表格年度報告中第1a 項、風險因素和其他部分所述的風險和不確定性，以及我們不時在其他報告中描述的風險和不確定性。

It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerrell, the floor is yours.

現在我很高興將電話轉給 Cryoport 執行長 Jerell Shelton 先生。傑瑞爾，地板是你的。

Thank you, Todd. Good afternoon, ladies and gentlemen. Thank you for joining our second quarter earnings call today. With us this afternoon is our Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen.

謝謝你，托德。女士們、先生們，午安。感謝您今天參加我們的第二季財報電話會議。今天下午與我們在一起的是我們的財務長 Robert Stefanovich；我們的首席科學官 Mark Sawicki 博士和我們的企業發展和投資者關係副總裁 Thomas Heinzen。

As a reminder, we have uploaded our second quarter 2024 in review document to our website. It can be found under Investor Relations in the News and Events section. This document provides a review of our financial and operational performance and a general business outlook. If you've not had a chance to read it, I would encourage you to go to our website and download it.

謹此提醒，我們已將 2024 年第二季審核文件上傳到我們的網站。您可以在“新聞和活動”部分的“投資者關係”下找到該資訊。本文件回顧了我們的財務和營運表現以及整體業務前景。如果您還沒有機會閱讀它，我建議您訪問我們的網站並下載它。

I will provide you with a brief update on our business and then we'll take your questions. During the second quarter of 2024, we saw continued progress across all business units as revenue from each improved sequentially. Our revenue from the support of commercial cell and gene therapies, especially stood out this quarter, increasing 51% year-over-year and 20% sequentially, reflecting strong demand for these treatments. This growth demonstrates another step in the ramp of these life saving therapies.

我將為您提供有關我們業務的簡要最新情況，然後我們將回答您的問題。2024 年第二季度，我們看到所有業務部門都持續取得進展，每個業務部門的收入都連續成長。我們來自商業細胞和基因療法支持的收入在本季度尤其突出，同比增長 51%，環比增長 20%，反映出對這些治療的強勁需求。這一增長表明這些挽救生命的療法又向前邁出了一步。

Turning to MVE Biological Solutions, our primary life sciences products business, we saw modest sequential improvement for the quarter, as we continue to experience lower overall product demand as compared to previous years. We anticipate continued softness in demand for MVE products for the remainder of 2024 and extending into 2025 as government, academic and industrial customers continue to delay capital expenditures and leverage their existing footprints of cryogenic systems capacities.

轉向我們的主要生命科學產品業務 MVE Biological Solutions，我們看到本季的環比略有改善，因為與前幾年相比，我們的整體產品需求持續下降。我們預計，隨著政府、學術界和工業客戶繼續推遲資本支出並利用其現有的低溫系統產能，2024 年剩餘時間並持續到 2025 年，MVE 產品的需求將持續疲軟。

We have executed strong cost management across our manufacturing facilities at MVE and align the direct workforce and current market demand and reduced SG&A expenses to ensure continuing positive cash flow contribution from MVE. Longer term, we expect demand to improve as excess cryogenic systems capacities are absorbed. This is not an if in our view, it's a matter of when as cryogenic systems must eventually be purchased to store biological commodities that are created and/or produced every day globally for research, experimental, clinical and commercial purposes.

我們對 MVE 的製造工廠實施了強有力的成本管理，調整了直接勞動力和當前市場需求，並減少了 SG&A 費用，以確保 MVE 持續貢獻正現金流。從長遠來看，我們預期隨著過剩的低溫系統產能被吸收，需求將會改善。在我們看來，這不是一個「如果」的問題，而是一個時間問題，因為最終必須購買低溫系統來儲存全球每天為研究、實驗、臨床和商業目的而創建和/或生產的生物商品。

Based on the current softness of the demand for our life sciences products and our anticipated sequential revenue growth for life sciences services, we are revising our full year 2024 revenue guidance to the range of $225 million to $235 million with revenue expected to continue to improve progressively over the next two quarters and into 2025. As we mentioned on our last earnings call, we have been implementing cost reduction and capital alignment or realignment measures as well as adjusting the building -- the build out pace of our global capabilities and infrastructure to be more in line with current market environments. Our team has been working diligently on this and we have made substantial progress in implementing many of these actions.

基於目前對我們生命科學產品的需求疲軟以及我們對生命科學服務收入的預期連續增長，我們正在將 2024 年全年收入指導修訂為 2.25 億至 2.35 億美元，收入預計將繼續逐步改善未來兩個季度直至2025 年。正如我們在上次財報電話會議上提到的，我們一直在實施成本削減和資本調整或重組措施，以及調整建設——我們的全球能力和基礎設施的建設步伐，以更符合當前的市場環境。我們的團隊一直在為此努力工作，並且在實施其中許多行動方面取得了實質進展。

We anticipate our cost initiatives will be fully implemented by the end of 2024 and will positively impact Cryoport's financial results for the second half of 2024 and approximately $22 million -- with approximately $22 million in annualized cost savings, moving us toward our goal of profitability and a return to positive adjusted EBITDA in 2025.

我們預計我們的成本計畫將在2024 年底全面實施，將對Cryoport 2024 年下半年的財務表現產生正面影響，帶來約2,200 萬美元的經濟效益，每年節省約2,200 萬美元的成本，推動我們獲利和獲利目標2025 年調整後 EBITDA 恢復正值。

Our cost reduction and capital realignment plans will enable us to continue to successfully service our customers and execute on our key growth initiatives as we optimize our operational efficiencies across our global operations. Through these actions, which are in process, we intend to drive profitable growth in our key markets, enhance operating performance and generate positive cash flow. Our entire management and leadership team is committed to ensuring the success of this plan and we intend to execute on it swiftly and effectively. In addition to our cost cutting initiatives and cost realignment plans, we're monitoring our operations daily to adjust for any near term obstacles related to the overall industry and economic environment, while maintaining a long term strategic view of our business.

我們的成本削減和資本調整計劃將使我們能夠繼續成功地為客戶提供服務，並在優化全球業務營運效率的同時執行我們的關鍵成長計劃。透過這些正在進行的行動，我們打算推動關鍵市場的獲利成長，提高經營績效並產生正現金流。我們的整個管理和領導團隊致力於確保該計劃的成功，並且我們打算迅速有效地執行該計劃。除了我們的成本削減舉措和成本調整計劃外，我們還每天監控我們的營運情況，以應對與整個行業和經濟環境相關的任何近期障礙，同時保持對我們業務的長期戰略眼光。

In addition to driving continued sequential revenue growth, we also intend to maintain a strong balance sheet position. We ended the quarter with a $427 million cash balance and we expect to generate positive cash flow through the actions we have underway. Our cost reduction and capital preservation initiatives take into consideration our key strategic growth plans, which include our global supply chain center network and BioServices Solutions as well as our IntegriCell platform for providing cryopreservation services to ensure we balance our commitment to long term profitable growth in the current market conditions.

除了推動收入持續連續成長外，我們還打算保持強勁的資產負債表狀況。本季結束時，我們的現金餘額為 4.27 億美元，我們預計透過我們正在進行的行動將產生正現金流。我們的成本降低和資本保全舉措考慮到了我們的關鍵戰略增長計劃，其中包括我們的全球供應鏈中心網絡和生物服務解決方案以及我們提供低溫保存服務的IntegriCell 平台，以確保我們平衡對長期盈利增長的承諾。

Our team is well aware of the short term challenges we are facing. Despite these, we remain confident in a broad market recovery for the life sciences industry with the exception of China, which we think will likely remain challenged through 2025. Our current full year 2024 revenue outlook includes sequential improvements across all our service offerings, driven in part by the ramp of clinical and commercial cell and gene therapies we currently support.

我們的團隊非常清楚我們面臨的短期挑戰。儘管如此，我們仍然對生命科學產業的廣泛市場復甦充滿信心，但中國除外，我們認為到 2025 年中國可能仍將面臨挑戰。我們目前 2024 年的全年收入展望包括我們所有服務產品的連續改進，部分原因是我們目前支持的臨床和商業細胞和基因療法的成長。

We remain confident in our market leading business and the long term growth of the life sciences. Biotech funding has improved, new therapy approvals have quickened in pace and Cryoport is well positioned to benefit from this as our markets start picking up. The new services and products we are launching this year will further diversify our revenue streams and allow us to comprehensively support our clients.

我們對市場領先的業務和生命科學的長期成長仍然充滿信心。生物技術資金有所改善，新療法的批准速度加快，隨著我們的市場開始回暖，Cryoport 已做好充分準備從中受益。我們今年推出的新服務和產品將進一步豐富我們的收入來源，並使我們能夠全面支持我們的客戶。

And as I mentioned earlier, we have been and are executing on our cost reduction and capital realignment initiatives. And when combined with our expected return to year-over-year revenue growth for the second half of 2024, this should significantly push our goal of profitability.

正如我之前提到的，我們已經並且正在執行成本削減和資本重組措施。再加上我們預計 2024 年下半年營收將恢復年增，這將大大推動我們的獲利目標。

This concludes my prepared remarks. Now, I will ask the operator to open the lines for your questions.

我準備好的發言到此結束。現在，我將請接線生為您解答問題。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions) Tejas Savant, Morgan Stanley.

謝謝。女士們、先生們，我們現在開始問答環節。（操作員指令）Tejas Savant，摩根士丹利。

Hi, guys. This is Edmund on for Tejas. Thank you for taking my questions. First to start on the guidance. On the call, you guys noted the anticipated sequential revenue growth in services and the expected continued softness in products were factored into the reduced guidance. So I was wondering if you can help me better understand the magnitude of each impact relative to the $17 million reduction at the midpoint. How much was it driven by the lower lifetime service ramp versus continued muted environment for MVE?

嗨，大家好。我是埃德蒙 (Edmund) 代表光輝號 (Tejas) 發言。感謝您回答我的問題。首先從指導開始。在電話會議上，你們注意到服務收入的預期連續成長和產品的預期持續疲軟都被納入了下調的指導中。因此，我想知道您是否可以幫助我更好地了解每種影響相對於中點減少 1700 萬美元的影響程度。與 MVE 持續安靜的環境相比，壽命週期較短的服務坡道在多大程度上推動了這一趨勢？

Robert, do you want to take that question?

羅伯特，你想回答這個問題嗎？

Yeah, absolutely. Look, in general, obviously forecasting has been challenging for us, but also many other companies in the life science products and services business. When we look at the change in guidance from original guidance, it's about a reduction of 6.9% midpoint to midpoint. And that's driven, as we outlined, certainly by the fact that our product side, which is really MVE Biological Solutions, is not picking up in demand, not picking up in revenue.

是的，絕對是。總的來說，顯然預測對我們以及生命科學產品和服務業的許多其他公司來說都是一個挑戰。當我們觀察指導值與原始指導值的變化時，發現中位數大約下降了 6.9%。正如我們所概述的，這當然是由於我們的產品方面（實際上是 MVE 生物解決方案）的需求沒有增加，收入也沒有增加。

And we don't expect that to really pick up in '24, but we do expect to see sequential growth starting in 2025. And that's really without the expectation that China is going to come back. As you recall, earlier in 2023 and 2022, we had significant business out of the Chinese market, which has dropped in Q1 of 2023. So we do expect that to continue to be pretty much flat if you look at the remainder of the year.

我們預計這種情況不會在 24 年真正回升，但我們確實預計從 2025 年開始會出現環比增長。這確實沒有預料到中國會回來。您還記得，在 2023 年和 2022 年初，我們在中國市場有大量業務，但 2023 年第一季有所下降。因此，如果你看看今年剩下的時間，我們確實預計這種情況將繼續持平。

Services is expected to grow. I will, maybe just highlight one issue on the product side. We did see sequential growth. So Q2 over Q1 for the product side of our business, we did see some sequential growth, but it's not enough of a trend to be able to forecast an increase in demand.

服務業預計將成長。我可能只是強調產品方面的一個問題。我們確實看到了連續成長。因此，對於我們業務的產品方面來說，第二季度相對於第一季度，我們確實看到了一些連續成長，但這還不足以預測需求的成長。

On the services side, as you've seen in our earnings release, we've seen some significant growth on the support of our commercial revenue clients. So for the cell and gene therapy space, that's very, very robust both growth year-over-year of 51% and sequentially of 20%. And then overall services has grown, Bioservices has grown, the other service elements of our offering has grown and we expect that to continue as well. But we have taken a more conservative stance.

在服務方面，正如您在我們的收益發布中所看到的，我們看到商業收入客戶的支援出現了顯著增長。因此，對於細胞和基因治療領域來說，這是非常非常強勁的成長，年成長 51%，較上季成長 20%。然後整體服務不斷增長，生物服務不斷增長，我們提供的其他服務元素也不斷增長，我們預計這種情況也將持續下去。但我們採取了更保守的立場。

I think coming out of JPMorgan earlier in the year, people were very kind of optimistic, cautiously optimistic waiting on the optimism, the funding side has increased and everyone was really expecting a more significant increase in the second half in particular.

我認為今年早些時候從摩根大通出來的時候，人們都非常樂觀，謹慎樂觀地等待著樂觀情緒，資金面有所增加，每個人都真正期望特別是下半年會有更顯著的增長。

But I think most of the companies have realized that while there will be a growth in the second half, it's not going to be as significant as initially inspected, albeit if you look at advancements in the cell and gene therapy side, if you look at the funding side, that continues to be robust. And eventually hopefully that will drive a trend towards more aggressive growth.

但我認為大多數公司已經意識到，雖然下半年會有成長，但不會像最初檢查的那樣顯著，儘管如果你看看細胞和基因治療方面的進展，如果你看看資金方面，繼續強勁。最終希望這將推動更積極成長的趨勢。

Got it. And then I guess, sticking on the guidance, could you provide some color on what provides you with confidence in the second half and your revised guidance? Maybe some color on how orders and backlogs trended for the product side and some color on how new trials are ramping up versus expectations on the services side would be helpful?

知道了。然後我想，堅持指導方針，您能否提供一些顏色來說明是什麼讓您對下半年充滿信心以及修訂後的指導方針？也許對產品方面的訂單和積壓趨勢以及新試驗相對於服務方面的預期如何增加的一些顏色會有幫助？

I think if obviously, we have spent a lot of time on the product side of our business, which is significantly driven by our very, very significant distributors around the world as well as our direct cloud clients. We spend a lot of time with them to really understand exactly where demand is coming from, what's to be expected. And hence, we've taken a more muted approach on the expectation for the second half.

我認為顯然，我們在業務的產品方面花費了大量時間，這在很大程度上是由我們在世界各地非常非常重要的分銷商以及我們的直接雲端客戶所推動的。我們花了很多時間與他們相處，以真正了解需求來自哪裡以及預期是什麼。因此，我們對下半年的預期採取了更低調的態度。

I think it's a little bit different on the services side, in discussions with our clients, one specifically related to the cell and gene therapy space. We do have weekly discussions with the expectation of the commercial launches and expectations of the commercial therapies we're currently already supporting. As you've seen in our earnings release, we've also reported a record number of clinical trials. So we've seen the growth in clinical trials, year-over-year well as sequentially. And we've seen more therapies that are getting ready for BLA, MAA filings as well as approvals.

我認為在與客戶的討論中，服務方面有點不同，特別是與細胞和基因治療領域相關的服務。我們確實每週都會討論對商業發布的期望以及對我們目前已經支持的商業療法的期望。正如您在我們的收益報告中看到的，我們還報告了創紀錄數量的臨床試驗。因此，我們看到了臨床試驗的逐年增長和連續增長。我們已經看到更多的療法正在準備 BLA、MAA 備案和批准。

So this is certainly a fairly robust view in terms of the growth expectations. I think a lot of the growth is expected to really come in ‘25 beyond, but we certainly expect the services side to continue to grow progressively in ‘24.

因此，就成長預期而言，這無疑是一個相當穩健的觀點。我認為大部分成長預計將在 25 年後真正實現，但我們當然預計服務方面將在 24 年後繼續逐步成長。

Got it. Super helpful. And one last one for me. On the new cost actions you guys talked about today, you guys outlined delays or cancellations in new facilities while also taking into consideration key growth initiatives. I think earlier this year, you noted expectations for two IntegriCell sites to come online, the Global Supply Chain Center to come online this year and two more to come on in 2025 and 2026. Can you clarify which ones have been delayed and which ones have been canceled? And how will these actions impact your ability to establish the infrastructure and capacity ahead of the expected cell and gene therapy inflection?

知道了。超有幫助。最後一張是給我的。關於你們今天談到的新成本行動，你們概述了新設施的延遲或取消，同時也考慮了關鍵的成長舉措。我想今年早些時候，您提到了對兩個 IntegriCell 網站上線的預期，其中全球供應鏈中心將於今年上線，另外兩個網站將於 2025 年和 2026 年上線。您能否澄清哪些項目被推遲，哪些項目被取消？這些行動將如何影響您在預期的細胞和基因治療拐點之前建立基礎設施和能力的能力？

These fall under Mark's operations. So I'm going to turn that question to Mark.

這些屬於馬克的業務範圍。所以我要把這個問題轉給馬克。

Yeah. Thanks, Jerrell. And the IntegriCell facilities, both of them are on track. In fact, they will both be opening their doors for contract business starting at the end of this quarter. So they're on track and we anticipate them starting to contribute from a revenue standpoint, although nominal obviously in ‘24, but they are going to have the doors opened.

是的。謝謝，傑瑞爾。IntegriCell 設施也都已步入正​​軌。事實上，他們都將從本季末開始開放合約業務。因此，他們正在步入正軌，我們預計他們將從收入的角度開始做出貢獻，儘管名義上顯然是 24 美元，但他們將敞開大門。

The other facilities that you discussed, all of those are continuing to progress. However, we have modified some of the pacing of the infrastructure in some of those facilities and are bringing high demand aspects online and deferring areas that we can cover through other facilities until the markets strengthen. So, there isn't any cancellation of facilities. There is some differences in the pacing of the service areas within some of those facilities.

您討論的其他設施，所有這些都在繼續進展。然而，我們已經修改了其中一些設施的一些基礎設施的節奏，並將高需求方面帶到網上，並推遲了我們可以通過其他設施覆蓋的領域，直到市場走強。因此，沒有任何設施被取消。其中一些設施內的服務區域節奏存在一些差異。

Got it. Thank you for the time.

知道了。謝謝你的時間。

Sure.

當然。

Paul Knight, KeyBanc. Your line is now open.

保羅奈特，KeyBanc。您的線路現已開通。

As we look back on, MVE, Jerry, I guess it was kind of like a lot of capital equipment spending in early 2023. They are not aware of when COVID would end, burning up budgets. What do you think were the factors behind this tough comp on MVE? And what do you think a long-term growth rate looks like there?

當我們回顧時，MVE，Jerry，我想這有點像 2023 年初的大量資本設備支出。他們不知道新冠疫情何時結束，從而耗盡預算。你認為MVE上如此艱難的比賽背後的因素是什麼？您認為那裡的長期成長率是什麼樣的？

It's a good question, Paul, and certainly we've analyzed it. We know a lot more about what happened now than we did several months ago. During the COVID period, there was free money, as everyone knows. I mean, money was basically at zero. There were a lot of government grants and there was a lot of fear buying. And so capacity is built up in the marketplace. In fact, I can actually -- we actually have seen some product that was bought during that time still in crates, but it was built up.

這是一個很好的問題，保羅，我們當然已經分析過它。與幾個月前相比，我們對現在發生的事情了解更多。眾所周知，新冠疫情期間，有免費的錢。我的意思是，錢基本上是零。政府撥款很多，人們也擔心購買。因此，市場容量不斷增強。事實上，我實際上可以——我們實際上已經看到了在那段時間購買的一些產品仍然裝在板條箱中，但它已經建成了。

We did not know at the time that, that was what was happening. We thought it was a natural thing, because we had done our due diligence and looked over 10 years history of MVE. So this is an unprecedented dip as COVID was an unprecedented condition. But that capacity is being used up, because we are in conversations with our customers, we're in conversations with our distributors, and that capacity is being used up. So we know that it will return to a growth rate. China will not return, we don't think until after 2025, most likely. But those were the factors. It was the free money, it was the government grants, and it was some fear buying.

我們當時並不知道，這就是正在發生的事情。我們認為這是很自然的事情，因為我們已經做了盡職調查並研究了 MVE 10 多年的歷史。因此，這是前所未有的下降，因為新冠疫情是一種前所未有的情況。但這種能力正在被耗盡，因為我們正在與客戶對話，我們正在與經銷商對話，而這種能力正在耗盡。所以我們知道它將恢復成長率。我們認為中國很可能要到 2025 年後才會回歸。但這些就是因素。這是免費的錢，是政府撥款，還有一些恐懼購買。

And then all of a sudden, money cost was up. It was up 6%. There were no government grants and people had -- people were putting the brakes on capital expenditures and they had extra capacity. So it's just adjusting. This is a great business. It continues to produce positive cash flow. We can scale up and down in that business. And it is a demand, it is perpetual. There is no alternative to cryogenic temperatures for the storage of biological commodities.

然後突然之間，金錢成本就上升了。上漲了 6%。沒有政府補助，但人們有—人們正在抑制資本支出，而他們有額外的能力。所以只是調整而已。這是一項偉大的事業。它繼續產生正現金流。我們可以擴大或縮小該業務的規模。這是一種需求，是永恆的。對於生物商品的儲存來說，除了低溫之外沒有其他選擇。

And the question for Mark, and that would be we see the funding data for cell and gene therapy from ARM and others. My guess would be it takes a while for new funding to translate into volume for you. Is that a fair assumption?

馬克的問題是，我們會看到來自 ARM 和其他公司的細胞和基因治療的資金數據。我的猜測是，新的資金需要一段時間才能轉化為數量。這是一個公平的假設嗎？

It is. Yeah, I mean, obviously, we talked about that last earnings call. What I see is very positive, to be honest, Paul, is the sequential increase in clinical trial count. I think that's very indicative that funding is starting to matriculate down into execution. And I anticipate continued positive directionality as it relates to clinical activity, which is the early sign of that money pushing back into the system.

這是。是的，我的意思是，顯然，我們討論了上次的財報電話會議。保羅，說實話，我看到的是臨床試驗數量的連續增加，這是非常積極的。我認為這非常表明資金開始落實到執行中。我預計與臨床活動相關的正面方向將持續存在，這是資金回流到系統的早期跡象。

Okay. Thank you.

好的。謝謝。

David Larsen, BTIG.

大衛‧拉森，BTIG。

Hi. Can you talk about, the number of commercial products that you're now supporting, the revenue contribution from them in the quarter? And then just any color on Shine would be helpful. Thank you.

你好。您能談談您現在支援的商業產品的數量以及它們在本季度的收入貢獻嗎？然後 Shine 上的任何顏色都會有幫助。謝謝。

We can, David. We'll start with Robert with the numbers, and then Mark will take on the other aspects of that question.

我們可以，大衛。我們將從羅伯特開始討論數字，然後馬克將討論問題的其他方面。

Yeah. So, just on the commercial revenue, so if you look at commercial revenue for the quarter, we've got $6.5 million, so above 51% increase, year-over-year and a 20% increase sequentially. So obviously, strong performance on the sequentially. So obviously, strong performance on the therapies that we're currently supporting. Mark will talk a little bit about some of the more recent announcements on approvals, those are not reflected in our Q2 performance, but will be reflected in the quarters out.

是的。因此，僅就商業收入而言，如果您查看本季的商業收入，您會發現我們的收入為 650 萬美元，年增 51% 以上，環比增長 20%。顯然，連續表現強勁。顯然，我們目前支持的療法表現強勁。馬克將談論一些最近發布的批准公告，這些公告不會反映在我們第二季度的業績中，但將反映在接下來的幾個季度中。

So strong commercial revenue, We continue to see a good pipeline going forward as well. So Mark, do you want to comment?

如此強勁的商業收入，我們也繼續看到良好的管道在向前發展。馬克，你想發表評論嗎？

Sure. Yeah. Thanks, Robert. Yeah. If you look at the Wall Street analysts, they're obviously forecasting good consistent ramps in the second half of '24 and '25 for the Gilead products, the BMS products, the J&J Legend products, Sarepta, they got their label expansion, Bluebird, modest. And then we now have obviously Iovance coming online with moderate volume and then CRISPR Vertex, which is just starting. And then, obviously, subsequent late in the quarter, we had a couple of additional approvals, although they won't be based on market feedback, significant volume drivers. The move to earlier line therapies for some of these guys is going to be substantial and will continue to drive really, really nice CAGRs on the commercial space.

當然。是的。謝謝，羅伯特。是的。如果你看看華爾街的分析師，他們顯然預測吉利德產品、BMS 產品、強生 Legend 產品、Sarepta 在 24 年和 25 年下半年將出現良好的持續增長，他們的標籤擴展為 Bluebird ， 謙虛的。然後我們現在顯然有 Iovance 以中等數量上線，然後是 CRISPR Vertex，這才剛剛開始。然後，顯然，在本季度末，我們獲得了一些額外的批准，儘管它們不會基於市場反饋和重要的銷售驅動因素。對於其中一些人來說，轉向早期的一線療法將是重大的，並將繼續推動商業領域的複合年增長率非常非常好。

If you look at it, I mean, the BMS Abecma product that went to earlier line, they now have a patient population potential of 80,000 patients a year and CARVYKTI is now at 140,000. So if you think about that, that's once they address the accessibility issue, the patient accessibility issue that's going to drive continued nice improvements in volume. In addition, there's another two potential approvals this year in 2024, which is obviously substantial and positive. So we yeah -- I mean, we could also potentially have another 7 filings through the balance of the year.

如果你看一下，我的意思是，BMS Abecma 產品進入了早期生產線，他們現在每年的患者群體潛力為 80,000 名患者，而 CARVYKTI 現在為 140,000 名患者。因此，如果你考慮一下，一旦他們解決了可訪問性問題，患者可訪問性問題將推動容量的持續良好改進。此外，今年2024年還有另外兩個潛在的批准，這顯然是實質和積極的。所以我們是的 - 我的意思是，我們還可能在今年剩餘時間再提交 7 份申請。

Okay. Thanks very much. And thoughts on China?

好的。非常感謝。對中國有何看法？

Yeah. China is in the ditch and that economy is going to stay there for a while, David. We don't think it will improve through 2025.

是的。大衛，中國正陷入困境，而且這種經濟狀況還會持續一段時間。我們認為到 2025 年情況不會有所改善。

Yeah. At this point, the revenue related to China is very small. So we're just a little above 3% in total revenue, related to China. So the risk there is for us minimal.

是的。目前來看，與中國相關的收入很小。因此，我們與中國相關的總收入僅略高於 3%。所以對我們來說風險很小。

Okay. And then just one last quick one. For in terms of MVE, any more color on channel demand? Like, where are we seeing the weakness? Is it across the board? Is it certain countries? Is it certain facilities, academic medical centers, research labs, large biopharma entities, just any more color on where the weakness is? Thanks very much.

好的。然後是最後一個快速的。對MVE來說，通路上還有更多的色彩需求嗎？例如，我們在哪裡看到弱點？是全面的嗎？是某些國家嗎？是某些設施、學術醫療中心、研究實驗室、大型生物製藥實體，還是對弱點的更多描述？非常感謝。

Well, it's a weakness in the general market, David. And as I was mentioning earlier to answering Paul's question, it had to do with -- certainly in the freezer side, it had to do with some defensive buying during COVID, some capacity build up in cryogenic systems across the board, both in doors and in freezers. So it's pretty much across the board and it came and that weakness is right now is just the market using up the cryogenic systems capacities that were built up during that COVID period.

好吧，這是整個市場的弱點，大衛。正如我之前在回答保羅的問題時提到的，這與——當然是在冷凍機方面，與新冠疫情期間的一些防禦性購買有關，以及低溫系統全面建設的一些能力有關，無論是室內還是室外。因此，它幾乎是全面的，而且現在的弱點只是市場耗盡了在新冠疫情期間建立的低溫系統能力。

We are having conversations, more conversations now with larger clients and the order stream seems to be stabilizing. So, we think we at a base point with MVE. MVE, by the way, is still cash flow positive. It still is a contributor, and it's a sound business. It's fully integrated with or not fully, but it's partially integrated with other parts of our company, like BioStorage, BioLogistics and BioServices. So it's an important part of our company and it is profitable.

我們正在與大客戶進行更多的對話，訂單流似乎正在穩定。因此，我們認為 MVE 已經達到了基點。順便說一下，MVE 的現金流仍然為正。它仍然是一個貢獻者，而且是一項穩健的業務。它與我們公司的其他部門完全整合或不完全集成，但與我們公司的其他部門（例如 BioStorage、BioLogistics 和 BioServices）部分整合。所以它是我們公司的重要組成部分並且是有利可圖的。

Thanks very much.

非常感謝。

Puneet Souda, Leerink Partners.

Puneet Souda，Leerink 合夥人。

Hey. This is Philip on for Puneet. Thanks for taking my question. Just kind of touching on what you just talked about, could you give just some color on how the order book has been trending for MVE? Like, have month over month trends been improving or stabilizing sequentially? And what can you tell us about like the exit rate in June or just how demand has been trending there?

嘿。這是菲利普為普尼特發言。感謝您提出我的問題。簡單談談您剛才談到的內容，您能否介紹一下 MVE 訂單簿的趨勢？例如，逐月趨勢是持續改善還是穩定？您能告訴我們什麼，例如 6 月的退出率或那裡的需求趨勢如何？

You're asking about you're asking about Chengdu specifically?

你問的是具體是成都嗎？

Talking about MVE.

談論MVE。

Yeah. And so China demand is at an all time low. I mean, that your question is around the China demand, correct?

是的。因此，中國的需求處於歷史最低水準。我的意思是，你的問題是圍繞中國的需求，對嗎？

That's right. All of it. All right.

這是正確的。所有這一切。好的。

Yeah. Philip restate your question and I'll answer it.

是的。菲利普重申你的問題，我會回答。

Yeah. I was just wondering on sort of just color on how the MVE order book has been trending for just for like that business overall, China and more broadly as well? Just kind of how month over month, yes.

是的。我只是想知道 MVE 訂單簿對於整個行業、中國和更廣泛的業務的趨勢如何？是的，只是一個月又一個月。

Okay. So, we do follow our order trends pretty carefully. Our orders are -- we think that our order trends are stabilizing and that they're sound at this point. The China market, of course, is rather insignificant right now. It's not accounting for more than about 4% of the business. And then if we look at the freezer and the door ordering trends, they're at a lower level, but they're steady at this point.

好的。因此，我們確實非常仔細地追蹤我們的訂單趨勢。我們的訂單是——我們認為我們的訂單趨勢正在穩定，並且目前狀況良好。當然，中國市場目前還相當微不足道。它所佔業務的比例不超過 4%。然後，如果我們觀察冰箱和門的訂購趨勢，它們處於較低水平，但目前處於穩定狀態。

Yeah. I just think if you look at the order intake, while it looks promising, it's just not enough data to say that it's trending upwards. No, we can't say that. And that's, I think, the reality. We do expect it to come back. It's really a question of when will the demand come back because we know MVE is by far the largest provider of cryogenic systems in the global market. So as demand comes back, MVE will be the beneficiary of that, come back in demand.

是的。我只是認為，如果你看看訂單量，雖然看起來很有希望，但沒有足夠的數據表明它呈上升趨勢。不，我們不能這麼說。我認為這就是現實。我們確實希望它能回來。這實際上是一個需求何時恢復的問題，因為我們知道 MVE 是迄今為止全球市場上最大的低溫系統供應商。因此，隨著需求回升，MVE 將成為需求回升的受益者。

It is already profitable. We took measures to make sure that it's generating in the 40s from a gross margin perspective and the high teens from an EBITDA perspective. And as volume starts coming back, obviously, that contribution will increase.

已經是獲利了。我們採取措施確保其毛利率在 40 多歲左右，而 EBITDA 則在 20 多歲左右。顯然，隨著交易量開始回升，這種貢獻將會增加。

Got it. It makes a lot of sense. Thank you. And then maybe just a follow-up. You touched on Sarepta, a lot of different kind of estimates flying around for the label expansion impact. But just kind of wanted to ask, just, what is your sense of like how meaningful this is for you and kind of what we can assume in terms of top-line benefit for this year or next year? To your point, there's like constraints on manufacturing capacity and accessibility on the therapeutic side. So just wondering sort of how we could think about that?

知道了。這很有意義。謝謝。然後也許只是後續行動。您談到了 Sarepta，對於品牌擴張的影響，有很多不同類型的估計。但我只是想問一下，您認為這對您來說有何意義，以及我們對今年或明年的最高收益有何假設？就您而言，治療方面的製造能力和可近性也受到限制。所以只是想知道我們如何思考這個問題？

Yeah. So, if you take a look at the data, with the label expansion, the eligible patient population goes up to about 17,500 patients a year, which is a significant step up. Obviously, we anticipate a notable increase in revenue predominantly in Q4 and then through ‘25. So we're very, very optimistic overall.

是的。因此，如果你看一下數據，隨著標籤的擴展，符合條件的患者人數每年會增加到約 17,500 名患者，這是一個顯著的進步。顯然，我們預計收入將顯著增加，主要是在第四季度，然後到 2025 年。所以我們整體上非常非常樂觀。

Got it. Thank you. Appreciate it.

知道了。謝謝。欣賞它。

Matt Stanton, Jefferies.

馬特·斯坦頓，杰弗里斯。

Hey, thanks. Maybe to start one for you, Robert. On the positive adjusted EBITDA in 2025, could you just clarify if that assumes a certain level of growth or revenues with the cost? So are you basically saying that you can get a positive adjusted EBITDA in ‘25 without any meaningful top-line expansion?

嘿，謝謝。也許可以為你開始一個，羅伯特。關於 2025 年調整後的正 EBITDA，您能否澄清一下這是否假設一定程度的成長或收入與成本？那麼，您基本上是說，您可以在 25 年內獲得正的調整後 EBITDA，而無需任何有意義的營收擴張？

And then just on the $22 million of annualized savings, sounds like some of that will show up here in the back half of the year. Anything you can help us with in terms of pacing for the rest of the year and what might start to show up in 3Q and 4Q? Thanks.

就年化 2,200 萬美元的節省而言，聽起來其中一部分將在今年下半年顯現出來。您可以在今年剩餘時間的節奏方面為我們提供什麼幫助嗎？謝謝。

Yeah. No, absolutely. I think, look, if you look at the adjusted EBITDA, you can see that even in our Q2 performance sequentially there was quite a significant improvement in adjusted EBITDA. So, we reduced the EBITDA loss about half sequentially quarter-over-quarter.

是的。不，絕對是。我認為，如果你看一下調整後的 EBITDA，你會發現即使在我們第二季的業績中，調整後的 EBITDA 也有相當顯著的改善。因此，我們的 EBITDA 損失環比減少了約一半。

Now, the measures we've taken both on the products and the services side, we’re taken actually, MVE took some of the measures already last year just in reaction to the slowdown demand. And then we have significant initiatives underway in Q1, Q2. We expect to have those completed globally by the end of the year.

現在，我們在產品和服務方面採取的措施，實際上，MVE 去年已經採取了一些措施，只是為了應對需求放緩。然後我們在第一季和第二季正在進行重大舉措。我們預計這些工作將在今年年底前在全球範圍內完成。

In terms of the expectations of positive adjusted EBITDA for 25%, I think in terms of the revenue ramp, that's going to dictate the timing of us reaching that goal. But we do expect to be able to achieve that even with a more modest increase in revenues based on the actions that we've taken. And the actions we've taken related to adjusted EBITDA, that's one part related to the reduction of FTEs in the organization, reduction of consultants that have worked for us full time, in some of the non-critical areas. And then we obviously have, from a cash flow perspective, delayed some of the expected capital expenditures to align them more with the expected growth.

就調整後 EBITDA 為 25% 的預期而言，我認為就營收成長而言，這將決定我們實現該目標的時間。但我們確實希望能夠實現這一目標，即使根據我們所採取的行動，收入成長幅度也較小。我們採取的行動與調整後的 EBITDA 相關，其中一部分與減少組織中的 FTE、減少在一些非關鍵領域為我們全職工作的顧問有關。然後，從現金流的角度來看，我們顯然推遲了一些預期的資本支出，以使它們更符合預期的成長。

So the answer is, yes, we do expect to achieve it. Timing of it will depend on, in part, on the ramp up revenue. And then for the remainder of the year, if you look at Q3 and Q4, I wouldn't expect more than, say, somewhere around $5 million in total to run through the second half. But the fully annualized run rate is expected to be about $22 million. That's a combination of reductions on the cost of sales side, so on the labor and direct cost of sales as well as the SG&A side.

所以答案是，是的，我們確實希望實現這一目標。其時機將部分取決於收入的增加。然後，在今年剩餘的時間裡，如果你看看第三季和第四季度，我預計下半年的總收入不會超過 500 萬美元左右。但完全年化運行費用預計約 2,200 萬美元。這是銷售成本、勞動力和直接銷售成本以及銷售管理費用方面的降低的組合。

Thanks. And then maybe going back to one of the questions from earlier just in terms of the MVE long term growth rate. Is there any way you can kind of quantify how important or how big the growth rate in China was to that business? And I guess the point behind that is if China going forward is a more mature growth market and maybe it's high singles instead of mid-teens? Just trying to kind of think about kind of a structural headwind to MVE's growth rate from what China attribution had been there historically? Thank you.

謝謝。然後也許回到先前關於 MVE 長期成長率的問題之一。有什麼方法可以量化中國的成長率對該業務有多重要或有多大嗎？我想這背後的要點是，未來的中國是否是一個更成熟的成長市場，也許是高單身人士而不是中青少年？只是想想歷史上中國對 MVE 成長率造成的結構性阻力嗎？謝謝。

Do you want to take that?

你想接受嗎？

Yeah. Look, I think if you look at China is a little bit of a question of when they will come back, how strong they will come back. So if you take that kind of all of the picture and you just expect a very, very modest contribution from China, Looking at the MVE growth rate, yeah, we certainly expect it to be at higher single digit growth rates. Again, if you look at the rationale for acquiring MBE, it was, one the vertical integration and the fact that they're the down and play up for cryogenic systems and the fact that they are cash generating and profitable.

是的。聽著，我認為如果你看看中國，你會發現一個問題，就是他們什麼時候會回來，他們會回來有多強大。因此，如果你從整體上看，你只期望中國的貢獻非常非常小，看看 MVE 的成長率，是的，我們當然預期它會達到更高的個位數成長率。再說一次，如果你看看收購 MBE 的理由，那就是垂直整合，以及它們是低溫系統的衰落和崛起的事實，以及它們能夠產生現金和盈利的事實。

We've maintained the profitability as a percentage, both from a gross margin and adjusted EBITDA perspective. We've also retained the strategic global positioning as a leader in the space. So again, as that comes back, so will the further contribution. Ultimately, if you look at our -- if you zoom out, look at our model overall, the overall expectation is that services is going to continue to grow over time much more significantly.

無論是從毛利率或調整後的 EBITDA 角度來看，我們都維持了獲利能力的百分比。我們也保留了作為該領域領導者的全球策略定位。同樣，當它回來時，進一步的貢獻也會回來。最終，如果你看看我們的——如果你縮小範圍，看看我們的整體模型，總體期望是服務將隨著時間的推移繼續顯著增長。

So it's MVE is not going to have that same growth rate if you look at 25%, 26% and 27%. But we'll still maintain its leadership, but still maintain its strategic importance in terms of the vertical integration and maintains profitability.

因此，如果你看看 25%、26% 和 27%，MVE 不會有相同的成長率。但我們仍將保持其領先地位，但仍將保持其在垂直整合方面的戰略重要性並保持盈利能力。

Thank you.

謝謝。

Yuan Zhi, B. Riley.

袁志，B.萊利。

Thank you for taking our questions. I just called the wall. I'm curious to hear any trend you have observed from IVF and fertility clinics. Was there an increased cryo-storage demand from those customers recently? Thank you.

感謝您接受我們的提問。我剛剛打電話給牆壁。我很想知道您從試管受精和生育診所觀察到的任何趨勢。這些客戶最近對低溫儲存的需求是否增加？謝謝。

Yeah. We focus around cryo transportation with reproductive medicine, not cryo storage. And we have seen consistent improvement in volumes associated with reproductive medicine over the last 7-8 quarters. And that's largely due to our strategy where we've locked up and established significant relationships with the large clinic networks, in which any action that goes on through them comes through us versus going through intended parents and individuals. And so that will continue to drive volume increases for the foreseeable future there.

是的。我們專注於生殖醫學的冷凍運輸，而不是冷凍儲存。在過去的 7-8 個季度中，我們看到與生殖醫學相關的數量持續成長。這很大程度上是由於我們的策略，我們與大型診所網絡建立了重要的關係，其中透過這些網絡進行的任何行動都透過我們而不是透過預期的父母和個人。因此，在可預見的未來，這將繼續推動銷售成長。

Got it. Any chance you can extend the transportation to upstream to have credit storage services to those customers?

知道了。您是否有機會將運輸延伸到上游，為這些客戶提供信用儲存服務？

It's not something that we're currently evaluating. Our focus in BioServices is really focused around the cell and gene space. And our infrastructure is really built around managing cell and gene product flow, not reproductive medicine material, which is a different strategy and a different approach.

這不是我們目前正在評估的事情。我們在生物服務方面的重點實際上是圍繞著細胞和基因空間。我們的基礎設施實際上是圍繞著管理細胞和基因產品流而建立的，而不是生殖醫學材料，這是一種不同的策略和不同的方法。

Got it. Thanks for the additional color.

知道了。感謝您提供額外的顏色。

Yeah. Thank you.

是的。謝謝。

David Saxon, Needham. Your line is now open.

大衛‧撒克遜，李約瑟。您的線路現已開通。

Great. Good afternoon, and thanks for taking my questions. Maybe one for Robert. Just on free cash flow, what was that for the quarter? How should we think about cash burn for 2024 for a year? You do have a net cash position and you've talked here about the restructuring program. But how are you thinking about kind of balancing the investments you've been making and continue to make over the next 12-24 months or so, and then these 2026 converts?

偉大的。下午好，感謝您回答我的問題。也許是給羅伯特的。僅就自由現金流而言，本季的自由現金流是多少？我們該如何看待2024年一年的現金消耗？您確實擁有淨現金頭寸，並且您在這裡談論了重組計劃。但是，您如何考慮平衡您已經進行的投資和在未來 12-24 個月左右的時間內繼續進行的投資，以及 2026 年的轉換？

Yeah. No, it's a good and fairly comprehensive question. But, yeah, if you look at the initiatives we've taken, they're quite significant in terms of really slimming down the organization. As you know, we've built out very, very aggressively over the last couple of years to really establish both organically as well through acquisitions to establish a global platform, become the leader in space, to really complete our supply chain for cell and gene therapies. So now is the time where we have to really adjust a little bit to the current market, current demand, and that really drove us to implement these initiatives to really drive really profitable revenue, profitable growth. So that's really kind of a main piece.

是的。不，這是一個很好且相當全面的問題。但是，是的，如果你看看我們採取的舉措，你會發現它們對於真正精簡組織來說非常重要。如您所知，在過去幾年中，我們非常非常積極地進行建設，以真正有機地建立以及透過收購建立全球平台，成為太空領域的領導者，真正完善我們的細胞和基因供應鏈療法。因此，現在是我們必須根據當前市場、當前需求進行真正調整的時候了，這確實促使我們實施這些舉措，以真正推動真正盈利的收入和盈利增長。所以這確實是一個主要部分。

If you look at the cash burn, cash used in operations was about $11.2 million for the first half. CapEx was about $7.8 million So you can already see that we've dialed down the CapEx expenditure compared to last year. Last year, at the same time, we have spent about $18.3 million in CapEx. So we're taking a number of measures to really drive and protect the cash. We're net debt positive about $70 million after this transaction. I think if we look at the buyback of the convert, that gave us an ability to buy back $160 million at 11.5% discount. And that leaves us with significant dry powder approximately $250 million cash and short term investments to operate our business and pursue strategic activities.

如果你看看現金消耗情況，你會發現上半年營運中使用的現金約為 1,120 萬美元。資本支出約為 780 萬美元因此您已經可以看到，與去年相比，我們已經減少了資本支出。去年同期，我們在資本支出上花費了約 1,830 萬美元。因此，我們正在採取一系列措施來真正推動和保護現金。此次交易後，我們的淨債務約為 7,000 萬美元。我認為，如果我們看看轉換後的回購情況，我們就有能力以 11.5% 的折扣回購 1.6 億美元。這為我們留下了約 2.5 億美元的大量現金和短期投資來經營我們的業務和進行策略活動。

So we're really well positioned, I think from a balance sheet perspective, from a kind of global operational infrastructure perspective. And it's now on completing the execution of these plans that we have to drive more profitable performance within the organization. And as Jerry and Mark had mentioned, without cutting off any of the key strategic initiatives, growth initiatives that we think will increase our share of wallet with our client base and really further entrench us into the life sciences market and the cell and gene therapy space in particular.

因此，我認為從資產負債表的角度來看，從全球營運基礎設施的角度來看，我們確實處於有利位置。現在，在完成這些計劃的執行後，我們必須在組織內推動更有利可圖的績效。正如傑瑞和馬克所提到的，在不切斷任何關鍵戰略舉措的情況下，我們認為這些成長舉措將增加我們在客戶群中的錢包份額，並真正進一步鞏固我們在生命科學市場以及細胞和基因治療領域的地位尤其。

Okay. That was super helpful, Robert. Maybe just a quick follow-up to that. So you said $11.2 million cash used in the first half. You talked in one of your answers to a previous question about maybe seeing around $5 million in savings in the second half. So for the second half burn, should we be thinking kind of mid single-digits?

好的。這非常有幫助，羅伯特。也許只是對此的快速跟進。所以你說上半年用了 1120 萬美元現金。您在回答上一個問題時談到，下半年可能會節省約 500 萬美元。那麼對於下半年的燃燒，我們應該考慮中等個位數嗎？

And then I'll just throw my second question, as it relates to guidance. I think the prior guide assumed flat MVE revenue. So I just want to confirm the main driver or even all of the delta from the new guidance is MVE expectations coming down. And then for MVE, I mean, Jerry, you talked about orders stabilizing. So for the third fourth quarters, is kind of this $19 million $20 million range for MVE revenue a good starting point or what's your level of confidence that orders have indeed stabilized? Thanks so much.

然後我將提出第二個問題，因為它與指導有關。我認為先前的指南假設 MVE 收入持平。因此，我只想確認新指引的主要推動因素，甚至是所有增量都是 MVE 預期的下降。然後對於 MVE，我的意思是，Jerry，您談到了訂單穩定。那麼，對於第三季度和第四季度，MVE 收入 1900 萬美元到 2000 萬美元的範圍是一個好的起點嗎？非常感謝。

David, the numbers you quoted are a little bit high. MVE is running at around an $18 million per quarter run rate right now. We don't anticipate that going up. So it's a little bit high. We do anticipate growth starting in 2025, but we think it's going to be rather stable for the rest of this year. And then we'll see some sequential growth beginning in 2025 as that excess capacity is used up.

大衛，你引用的數字有點高。MVE 目前的運行速度約為每季 1800 萬美元。我們預計這一數字不會上升。所以有點高。我們確實預計成長將從 2025 年開始，但我們認為今年剩餘時間將相當穩定。隨著過剩產能的耗盡，我們將從 2025 年開始看到一些連續成長。

So the company is prepared for that. And I think that's the way it will look moving forward. But we do have growth in the services business. It's substantial in both CryoPort Systems and CryoPDP, and BioStorage is doing very well as well. So we do have those offsets moving forward.

因此，公司已為此做好準備。我認為這就是未來的發展方向。但我們的服務業務確實有所成長。它在 CryoPort Systems 和 CryoPDP 中都很重要，BioStorage 也表現得很好。所以我們確實有這些抵銷措施在前進。

Yeah. And David, on your question related to cash used in operations and the cash flow, you'll see that once we file the 10-Q tomorrow in more detail on the stable of cash flows. But I would expect that to go down somewhat in the second half. But you have to have in mind, there's going to be some costs related to the restructuring that we have as well, but the outlook expected to come down. So in the second half and then obviously within the second half more significantly in the fourth quarter.

是的。大衛，關於您與營運中使用的現金和現金流有關的問題，您會看到，一旦我們明天提交 10-Q 報告，更詳細地了解現金流的穩定情況。但我預計下半年這一數字會有所下降。但你必須記住，我們也會產生一些與重組相關的成本，但前景預計會下降。所以在下半場，然後顯然在下半場第四節更明顯。

And David, I'll address those in general, those points in my closing comments in a few minutes.

大衛，我將在幾分鐘後在結束語中討論這些一般性的觀點。

Okay, great. And if I could just sneak a follow-up question in there, Jerry, you just mentioned excess capacity as it relates to MVE, talked about kind of fear buying around the COVID, pandemic. I guess, how do you measure that excess capacity? And I'm really trying to get at, like, how confident are you in kind of calling the bottom here and calling for growth in 2025? Like how do you kind of wrap your head around measuring this excess capacity and kind of working through that? And I'll leave it at that. I'll jump back in queue. Thanks so much.

好的，太好了。如果我可以偷偷地問一個後續問題，傑瑞，你剛才提到了與 MVE 相關的產能過剩，談到了圍繞新冠疫情的恐懼購買。我想，你如何衡量過剩產能？我真的很想知道，你對在 2025 年觸底並呼籲增長有多大信心？例如你如何思考如何衡量這種過剩產能以及如何解決這個問題？我就這樣吧。我會插回隊列。非常感謝。

David, that's a question that we struggle with. It's a very good question and we struggle with it, because it's very hard to do. You would actually have to go out to every customer of the company to see if they had inventory. We do know some that have had inventory. I know some that's still in crates right now that was bought during that period of time. So that's very hard.

大衛，這是我們一直在努力解決的問題。這是一個非常好的問題，但我們卻為此苦苦掙扎，因為這很難做到。實際上，您必須拜訪公司的每個客戶，看看他們是否有庫存。我們確實知道一些有庫存。我知道有些現在還是放在板條箱裡，是那段時間買的。所以這非常困難。

The way we determine that is by looking at order patterns, we judge then our conversations with our clients and the timing of those. The governmental budgets are really important, so because a lot of institutions are funded from the government, research is funded from the government. These are all users of and many other biological endeavors are funded by the government. So government spending is important.

我們確定這一點的方法是透過查看訂單模式，然後判斷我們與客戶的對話以及對話的時間。政府預算確實很重要，所以因為很多機構都是由政府資助的，所以研究也是由政府資助的。這些都是用戶，許多其他生物事業都是由政府資助的。所以政府支出很重要。

So we look at all of those things and try to determine where we are. But it's an art, it's not this is not a science, it's not absolutely quantitatively driven, because we just don't have the visibility on what that capacity build up is, in fact, in the marketplace. We're trying to read it all the time, but that's the best we can do, but is by continue to probe and put things together, plus looking at the order pattern, plus talking with our clients about their business and about when orders are going to be placed.

因此，我們會審視所有這些事情，並嘗試確定我們所處的位置。但這是一門藝術，而不是一門科學，它不是絕對定量驅動的，因為我們只是不了解市場上的能力建構實際上是什麼。我們一直在嘗試閱讀它，但這是我們能做的最好的事情，但就是繼續探索並將內容放在一起，再加上查看訂單模式，再加上與我們的客戶討論他們的業務以及訂單何時發送。

Great. Thank you so much.

偉大的。太感謝了。

You're welcome, David.

不客氣，大衛。

There are no further questions at this time. I will hand over the call to Jerry Shelton, your CEO. Please continue.

目前沒有其他問題。我將把電話轉交給你們的執行長傑裡謝爾頓。請繼續。

Thank you for your questions this afternoon and for our discussions. Our second quarter results showed strong progress in our life sciences business and all businesses and revenue lines improved quarter-over-quarter, in particular cell and gene therapy industry continues to advance as evidenced by in the 51% year-over-year increase we saw in our revenue from the strong demand of these life-saving therapies.

感謝您今天下午的提問以及我們的討論。我們第二季的業績顯示，我們的生命科學業務取得了強勁進展，所有業務和收入線均環比改善，特別是細胞和基因治療行業繼續發展，我們看到同比增長 51% 就證明了這一點我們的收入來自對這些挽救生命的療法的強烈需求。

I think you can tell from our earlier remarks and our discussions and our quarterly review that we're not just sitting back and waiting for market improvements, we're proactive in taking measures that will keep us in financial trim and at the same time help us move forward as we advance our support of the life sciences. We're serious about reaching our goal of profitability and return to positive adjusted EBITDA in 2025. Profitable growth is not just an aspiration, it's a mandate.

我想你可以從我們之前的言論、我們的討論以及我們的季度回顧中看出，我們不僅僅是坐等市場改善，我們還積極採取措施，使我們保持財務緊縮，同時幫助我們改善經濟狀況。當我們推進對生命科學的支持時，我們就會不斷前進。我們認真致力於實現獲利目標，並在 2025 年恢復正調整 EBITDA。獲利成長不僅是一種願望，更是一種使命。

Thank you for joining us this afternoon. We appreciate your continued support and interest in our company. We look forward to updating you on our progress again next quarter. We hope you have a good evening.

感謝您今天下午加入我們。我們感謝您對我們公司的持續支持和關注。我們期待下個季度再次向您通報我們的進展。我們希望您度過一個美好的夜晚。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Thank you.

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。謝謝。