Harvard Bioscience Inc (HBIO) 2024 Q1 法說會逐字稿

Good day and thank you for standing by, and welcome to the Q1 2024 Harvard Bioscience Inc earnings conference call.

美好的一天，感謝您的支持，歡迎參加哈佛生物科學公司 2024 年第一季財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Dave Sirois, Director of SEC Reporting.

我現在想將會議交給今天的發言人，美國證券交易委員會報告部主任戴夫·西羅伊斯 (Dave Sirois)。

Thank you, Josh, and good morning, everyone.

謝謝你，喬什，大家早安。

Thank you for joining the Harvard Bioscience first quarter 2024 earnings conference call.

感謝您參加哈佛生物科學公司 2024 年第一季財報電話會議。

Leading the call today will be Jim Green, Chairman of the Board, President and Chief Executive Officer, and Jennifer Cote, Chief Financial Officer.

今天的電話會議將由董事會主席、總裁兼執行長 Jim Green 和財務長 Jennifer Cote 主持。

In conjunction with today's recorded call, we have provided a presentation that will be referenced during our remarks that is posted to the Investors section of our website at investor.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements or expectations of future events or future financial performance are forward-looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

結合今天的錄音電話會議，我們提供了一份演示文稿，我們的演講中將引用該演示文稿，該演示文稿將發佈在我們網站 Investor.harvardbioscience.com 的投資者部分。請注意，今天的討論中所做的非歷史事實的陳述，包括對未來事件或未來財務業績的陳述或預期，均為前瞻性陳述，並根據1995 年《私人證券訴訟改革法案》的安全港條款作出。

Actual results may differ materially from those expressed or implied.

實際結果可能與明示或暗示的結果有重大差異。

Please refer to today's press release or other disclosures on forward-looking statements.

請參閱今天的新聞稿或有關前瞻性陳述的其他揭露。

These factors and other risks and uncertainties are described in the company's filings with the Securities and Exchange Commission.

這些因素以及其他風險和不確定性在該公司向美國證券交易委員會提交的文件中進行了描述。

Harvard Bioscience assumes no obligation to update or revise any forward looking statements publicly and management statements are made as of today.

哈佛生物科學公司不承擔公開更新或修改任何前瞻性聲明的義務，管理階層聲明截至今日發布。

During the call, management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operations related to our financial condition and results.

在電話會議期間，管理階層也會參考某些非公認會計原則財務指標，這些指標有助於評估與我們的財務狀況和績效相關的公司營運狀況。

These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute.

這些非公認會計原則措施旨在補充公認會計原則財務信息，不應被視為替代品。

Reconciliations of GAAP to non-GAAP measures are provided in today's earnings press release.

今天的收益新聞稿中提供了 GAAP 與非 GAAP 指標的調整表。

I will now turn the call over to Jim.

我現在將把電話轉給吉姆。

Jim, please go ahead.

吉姆，請繼續。

Thanks, David.

謝謝，大衛。

Hello, everybody.

大家好。

Let's go ahead and start -- move to Slide 3 of the presentation, take a look at the highlights for the quarter.

讓我們開始吧—前往簡報的幻燈片 3，看看本季的亮點。

Well, as expected, we had a tough start to the year.

嗯，正如預期的那樣，我們今年的開局很艱難。

However, I will say that with strong gross margins combined with previously communicated cost reductions, it position us to underpin our commercial investments for growth while at the same time meeting our earnings targets.

然而，我要說的是，憑藉強勁的毛利率，加上先前溝通的成本削減，這使我們能夠支持我們的商業投資以實現成長，同時實現我們的獲利目標。

Also, as expected, significantly slower sales in China and Asia Pacific continued through Q1, further exacerbated by some slowing in Europe.

此外，正如預期的那樣，中國和亞太地區的銷售在第一季持續大幅放緩，歐洲的銷售放緩進一步加劇了這種情況。

And in total, a tough comparison to a record high prior year Q1.

總的來說，與去年第一季創紀錄的高點相比，這是一個艱難的比較。

I'll also mention we're still seeing some supply chain issues.

我還要提到我們仍然看到一些供應鏈問題。

As an example, Q1 saw one product alone.

舉個例子，第一季只看到了一種產品。

It had $1 million in revenue shipment delays pushing it out of Q1.

該公司第一季的收入發貨延遲了 100 萬美元。

So now let's go ahead and look at the numbers.

現在讓我們繼續看看這些數字。

Revenue in the quarter came in at $24.5 million, down $5.5 million from last year.

該季度的營收為 2,450 萬美元，比去年減少 550 萬美元。

Gross margin remained strong at 60.3%.

毛利率維持在 60.3% 的強勁水準。

On a GAAP basis, we recorded an operating loss of $2.3 million.

根據 GAAP 計算，我們的營業虧損為 230 萬美元。

On an adjusted basis, operating profit measured $1.2 million or 4.8% of revenue and adjusted EBITDA measured $1.6 million or 6.6% revenue.

調整後的營業利潤為 120 萬美元，佔營收的 4.8%，調整後的 EBITDA 為 160 萬美元，佔營收的 6.6%。

Let's move to Slide 4.

讓我們轉到投影片 4。

Look at the revenue for the quarter by product family and looking at the regions.

按產品系列和地區查看本季的收入。

So starting with the Americas, revenue was down 6.6% as reported.

據報道，從美洲開始，收入下降了 6.6%。

Preclinical revenue was slow on reduced demand of COVID related respiratory products.

由於對新冠肺炎相關呼吸產品的需求減少，臨床前收入成長緩慢。

Cellular/molecular products were up modestly in advance cell -- primarily with the advanced cell-based testing systems.

細胞/分子產品在先進細胞方面略有成長—主要是透過先進的基於細胞的測試系統。

We saw slow sales in academic research with NIH grants that seem to be taking longer to approve.

我們看到美國國立衛生研究院 (NIH) 資助的學術研究銷售緩慢，而且審批時間似乎更長。

But we believe much of that's due to the uncertainty that was around the congressional continuing resolution situation last quarter.

但我們認為，這很大程度上是由於上季國會持續決議情況的不確定性。

We're hopeful that the more recent longer budget resolution will start to solve some of this for us.

我們希望最近的較長預算決議能夠開始為我們解決一些問題。

Pharma and CROs are still keeping tight strings on spending.

製藥公司和 CRO 仍在嚴格控制支出。

So we're encouraged to see biotech related capital raises improving.

因此，我們很高興看到生物技術相關的資本籌集有所改善。

Biotechs, we see, represents a potential long-term tailwind for our technologies.

我們認為，生物技術代表了我們技術的潛在長期推動力。

Moving on to Europe.

繼續前往歐洲。

Overall EMEA revenue was down 16% as reported.

據報道，歐洲、中東和非洲地區的整體收入下降了 16%。

That includes about a 1% currency headwind.

其中包括約 1% 的貨幣逆風。

Preclinical systems were down on tight budgets for both pharma and CRO companies.

製藥公司和 CRO 公司的臨床前系統都因預算緊張而下降。

Cellular/molecular saw some slowness on tight government spending for academic research.

由於政府對學術研究的支出緊張，細胞/分子領域的發展有所放緩。

The European economic environment is being impacted by the higher interest rates and government spending also, it was hit by the situation that's occurring in Ukraine.

歐洲經濟環境正受到利率上升和政府支出的影響，也受到烏克蘭局勢的打擊。

And moving to China and Asia Pacific.

並轉向中國和亞太地區。

Q1 reported revenue was down 35% on continued slower spend levels, which should annualize in the second half of this year.

第一季報告收入下降 35%，原因是支出水準持續放緩，預計今年下半年支出水準將按年計算。

Preclinical revenue was down on continued slow capital equipment spending by pharma and CRO companies.

由於製藥和 CRO 公司資本設備支出持續緩慢，臨床前收入下降。

Cellular/molecular products saw continued headwinds as academic customers awaited news on government academic research funding.

由於學術客戶等待政府學術研究資助的消息，細胞/分子產品持續面臨阻力。

We see the weakness in China continuing into Q2, but we're hopeful that the recent announced Chinese stimulus package will lead to improved market conditions entering the second half for us here.

我們認為中國的疲軟狀況將持續到第二季​​度，但我們希望最近宣布的中國經濟刺激計畫將導致進入下半年的市場狀況有所改善。

Let's move to Slide 5 and discuss some new product launches designed to strengthen our base business while at the same time, investing in new high-growth opportunities.

讓我們轉到投影片 5，討論一些新產品的發布，這些新產品旨在加強我們的基礎業務，同時投資於新的高成長機會。

Our commercialization focus started with new product introductions showcased at the latest Society for Neuroscience and the Society for Toxicology.

我們的商業化重點始於在最新一屆神經科學學會和毒理學學會上展示的新產品介紹。

Our primary focus is to strengthen our bread-and-butter base business, which represents nearly 85% of total revenue and which we target to deliver better than market growth.

我們的主要重點是加強我們的基礎業務，該業務佔總收入的近 85%，我們的目標是實現比市場成長更好的成長。

We invest to continue our leadership position in telemetry for safety and toxicology applications.

我們投資是為了延續我們在安全和毒理學應用遙測領域的領導地位。

We introduced our new SoHo shared housing telemetry family of implantables to expand our offering to multi animal shared housing environments.

我們推出了新的 SoHo 共享住房遙測系列植入式設備，將我們的產品擴展到多動物共享住房環境。

At the same time, we introduced our latest Ponemah software that integrates VivaMARS, the high-capacity behavioral testing system onto a single GLP compliant data system.

同時，我們推出了最新的 Ponemah 軟體，該軟體將大容量行為測試系統 VivaMARS 整合到單一符合 GLP 的資料系統上。

Adding high-capacity neuro pharmacology testing expands our addressable market by expanding the test menu offering to neuro pharmacology and builds on our base business.

增加高容量神經藥理學測試透過擴大神經藥理學的測試選單來擴大我們的潛在市場，並建立在我們的基礎業務的基礎上。

The Ponemah platform, which is used by the leading CROs, biopharma, large academic institutions around the world processes and manages extremely large data pools acquired during tox and safety testing now for both telemetry and now for behavior.

Ponemah 平台被世界各地領先的 CRO、生物製藥、大型學術機構使用，處理和管理在毒性和安全測試過程中獲取的極其龐大的數據池，現在用於遙測，現在用於行為。

By combining these new applications on a single data management platform, the Ponemah system opens up opportunities to use emerging AI and machine learning technologies to analyze study data.

透過將這些新應用程式結合在一個資料管理平台上，Ponemah 系統為使用新興人工智慧和機器學習技術來分析研究數據提供了機會。

At the same time, we continue to fortify our leading position in cellular/molecular and inhalation technologies for research and discovery.

同時，我們繼續鞏固我們在細胞/分子和吸入技術研究和發現方面的領先地位。

Also, at the same time, we're expanding our field service offerings designed to increase recurring revenue and consumables.

此外，同時，我們正在擴展我們的現場服務產品，旨在增加經常性收入和消耗品。

This year, we're driving to commercialize exciting new high-growth opportunities.

今年，我們將努力將令人興奮的新高成長機會商業化。

Electroporation and amino acid related products make up around 10% of our revenue and advanced microelectrode array products, about 5%.

電穿孔和胺基酸相關產品約占我們收入的10%，先進的微電極陣列產品約佔5%。

Bioproduction and organize provide exciting new opportunities for high growth, well above our base business just as we've established commercial and application science team dedicated to bioproduction and to advanced cellular applications with emerging organoids.

生物生產和組織為高成長提供了令人興奮的新機會，遠高於我們的基礎業務，正如我們已經建立了商業和應用科學團隊，致力於生物生產和新興類器官的高級細胞應用。

We're now offering bioproduction configurations of our well-known BTX family of electroporation, electrofusion systems, bioproduction is an opportunity to drive significant recurring consumable revenue for us.

我們現在提供著名的 BTX 系列電穿孔、電融合系統的生物生產配置，生物生產是為我們帶來大量經常性消耗品收入的機會。

We recently also announced a CGMP compliant amino acid analyzer also now targeted for bioproduction applications.

我們最近也推出了符合 CGMP 的胺基酸分析儀，現在也針對生物生產應用。

This triple A system is adapted from our clinical amino acid systems, which is in operation today in leading clinical laboratories around the world.

該 3A 系統改編自我們的臨床氨基酸系統，該系統目前在世界各地領先的臨床實驗室中運作。

Finally, we're leveraging our historical leadership position in advanced cellular applications to drive high volume growth in both biopharma and CRO.

最後，我們將利用我們在先進細胞應用領域的歷史領先地位來推動生物製藥和 CRO 業務的大幅成長。

We launched the Mesh MEA organoid platform at the Society for Neuroscience.

我們在神經科學學會推出了 Mesh MEA 類器官平台。

We also showcased Mesh Organoid at the Society for toxicology, where we see a potential for in vitro neuro and cardiac safety and toxicology applications.

我們也在毒理學學會展示了網狀類器官，我們看到了體外神經和心臟安全及毒理學應用的潛力。

We're excited to see strong interest for applications in research and biopharma discovery, which we expect to then lead to high-volume compound analysis and testing applications.

我們很高興看到人們對研究和生物製藥發現的應用產生濃厚的興趣，我們預計這將導致大量的化合物分析和測試應用。

Now I'll turn the call over to Jennifer, our CFO, to take a look at the key financials.

現在我將把電話轉給我們的財務長珍妮佛，讓她查看關鍵的財務數據。

Thank you, Jim.

謝謝你，吉姆。

Let's jump into our Q1 financial results in greater detail.

讓我們更詳細地了解第一季的財務表現。

If you can please refer to slide 7.

如果可以的話請參閱投影片 7。

As a reminder, in addition to our reported GAAP results, we also include discussion about our adjusted or non-GAAP financial results, which aligns with how we internally manage the business.

提醒一下，除了我們報告的 GAAP 業績外，我們還討論了調整後或非 GAAP 財務業績，這與我們內部管理業務的方式一致。

Our slide deck includes a reconciliation between our adjusted results and the corresponding GAAP financial measures in the appendix.

我們的投影片包括調整後的結果與附錄中對應的 GAAP 財務指標之間的調整表。

I will specifically call out the activity during Q1, which we pulled out as non-GAAP.

我將特別指出第一季的活動，我們將其取消為非公認會計原則。

Jim has taken you through revenue performance.

吉姆帶您了解了收入表現。

So I'll take you through some of the other key financial metrics in more detail.

因此，我將帶您更詳細地了解其他一些關鍵財務指標。

So please refer to the top middle of the slide.

因此，請參閱投影片的中上部分。

I'm excited to share, as Jim mentioned, that on a reported basis, our Q1 gross margin was 60.3%, which is in alignment with our long-term target of 60% gross margins.

正如 Jim 所提到的，我很高興與大家分享，根據報告，我們第一季的毛利率為 60.3%，這與我們 60% 毛利率的長期目標一致。

This was slightly behind last year's margin of 61.2%.

這略低於去年 61.2% 的利潤率。

But please keep in mind that our revenue last Q1 was $30 million, a record Q1, and we are pleased to maintain our gross margin performance despite lower revenue absorption in this year -- this year's Q1.

但請記住，我們上一季的收入為 3000 萬美元，創下第一季的記錄，儘管今年第一季的收入吸收率較低，但我們很高興保持毛利率表現。

We continue to expect 60% margin for the year.

我們繼續預計今年利潤率為 60%。

If we can please refer to the top right graph on the slide.

如果可以的話，請參考投影片右上方的圖表。

Our adjusted EBITDA during Q1 was down from $4.8 million last Q1 to $1.6 million this year.

我們第一季調整後的 EBITDA 從上一季的 480 萬美元下降到今年的 160 萬美元。

The primary driver for reduced adjusted EBITDA was the decrease in revenue and flow-through of lower gross margin dollars.

調整後 EBITDA 減少的主要驅動因素是收入減少和毛利率下降。

We continue to invest in our growth strategy and the commercialization of our newly launched products such as VivaMARS and SoHo and growth opportunities in bioproduction and organoids that Jim mentioned earlier.

我們繼續投資於我們的成長策略和新推出的產品（如 VivaMARS 和 SoHo）的商業化，以及 Jim 之前提到的生物生產和類器官的成長機會。

These applications are starting to penetrate the market starting with our key academic partners with additional opportunities ahead in CROs and pharmaceutical companies.

這些應用程式開始滲透市場，首先是我們的主要學術合作夥伴，還有 CRO 和製藥公司的更多機會。

We continue to manage our overall expenses and in early April, implemented an action to reduce our labor force to improve our cost structure and support our ongoing investments in growth.

我們繼續管理我們的整體開支，並在四月初實施了一項減少勞動力的行動，以改善我們的成本結構並支持我們持續的成長投資。

We expect to realize overall annual run rate savings from these actions of approximately $4 million beginning in the second quarter.

我們預計從第二季開始，這些行動將實現每年約 400 萬美元的總體運行率節省。

Severance associate with the action was about $500,000 and we continue to stay -- drive operational improvements and stay focused on achievement of our financial targets.

與該行動相關的遣散費約為 50 萬美元，我們將繼續推動營運改善並專注於實現我們的財務目標。

Move to the bottom left, we'll talk about reported and adjusted loss and earnings per share.

轉到左下角，我們將討論報告和調整後的虧損和每股盈餘。

The differences between GAAP diluted loss per share and our adjusted diluted earnings per share are highlighted in the reconciliation tables on Slide 11.

第 11 張投影片的調整表突顯了 GAAP 攤薄每股虧損與調整後攤薄每股收益之間的差異。

But the primary typical drivers can continue to be stock compensation, amortization, depreciation and income tax expense.

但主要的典型驅動因素仍然是股票報酬、攤提、折舊和所得稅費用。

I'd also like to point out some additional unusual drivers for the difference between Q1 of 2024 with Q1 of 2023 when viewed on a GAAP basis.

我還想指出一些其他不尋常的驅動因素，這些因素導致了 2024 年第一季與 2023 年第一季按照 GAAP 計算時的差異。

These include a loss on equity securities of $1.3 million or $0.03 per share, commissions of $500,000 or $0.01 paid in connection with the receipt of employee retention credits, and an estimated loss related to an unclaimed property audit wrapping up with an impact of $500,000 or $0.01.

其中包括股本證券損失 130 萬美元或每股 0.03 美元，與收到員工保留積分相關的佣金 500,000 美元或 0.01 美元，以及與無人認領的財產審計結束相關的估計損失，影響為 500,000 美元或 0.01 美元。

Last year, in Q1, we had a gain on the sale of a discontinued product line of $400,000 or approximately $0.01. So these unusual Q1 items amount to a total of a $0.06 swing for Q1 2024 versus Q1 2023 in our GAAP results, which you see on the left.

去年第一季度，我們透過銷售已停產的產品線獲得了 40 萬美元（約 0.01 美元）的收益。因此，在我們的 GAAP 結果中，這些不尋常的第一季專案總計 2024 年第一季與 2023 年第一季的波動為 0.06 美元，如左圖所示。

So a lot of unusual activity, which has been removed in our adjusted EPS.

因此，許多不尋常的活動已在我們調整後的每股收益中刪除。

When you look at the adjusted EPS, the primary driver is the lower gross margin dollars from the lower revenue.

當你查看調整後的每股盈餘時，主要驅動因素是收入下降導致毛利率下降。

Switching gears to cash flow and liquidity.

轉向現金流和流動性。

If you refer to the middle bottom row, during Q1, we had cash flow from operations of $1.4 million compared to $1.8 million in Q1 2023.

如果您參考中間底行，在第一季度，我們的營運現金流為 140 萬美元，而 2023 年第一季為 180 萬美元。

In February 2024, we received a cash benefit net of commissions of $2.6 million for the employee retention credit provided by the CARES Act.

2024 年 2 月，我們收到了根據 CARES 法案提供的員工保留信貸扣除佣金後的 260 萬美元現金福利。

This is a credit that was allowed to encourage the retention of staff by employers that were impacted by the government orders associated with COVID-19.

這是一項信貸，旨在鼓勵受與 COVID-19 相關的政府命令影響的雇主留住員工。

And due to the evolving IRS regulations and guidance, these are included in our other current liabilities on our balance sheet.

由於國稅局法規和指導不斷變化，這些都包含在我們資產負債表上的其他流動負債中。

We were also able to unwind a portion of our investment position in HRGN and during Q1 sold $500,000.

我們也解除了 HRGN 的部分投資頭寸，並在第一季出售了 50 萬美元。

We paid down our debt by $1 million in Q1, and net debt is down $9.2 million compared to Q1 2023.

我們在第一季償還了 100 萬美元的債務，淨債務比 2023 年第一季減少了 920 萬美元。

As discussed, further details on the above items in the non-GAAP reconciliation are included in our press release and also in the appendix to the presentation and will be available in our 10-Q.

如所討論的，有關非 GAAP 調節中上述項目的更多詳細資訊包含在我們的新聞稿和簡報的附錄中，並將在我們的 10-Q 中提供。

I'm now happy to hand things back to Jim to cover 2024 guidance.

我現在很高興將有關 2024 年指導的工作交還給 Jim。

Thank you, Jen.

謝謝你，珍。

Moving to the summary on Slide 9 and take a look at the full year.

前往投影片 9 上的摘要並查看全年情況。

We expect the full year to be roughly flat to 2023.

我們預計到 2023 年全年將大致持平。

We see weakness in the first half versus a strong and difficult prior year comparison.

我們看到上半年的疲軟與去年的強勁和困難相比。

This is especially true in China where Q1 2023 was up significantly and Q1 2022.

在中國尤其如此，2023 年第一季和 2022 年第一季均大幅成長。

We expect second half growth versus both the first half of this year and the second half of last year.

我們預計下半年將實現與今年上半年和去年下半年相比的成長。

We expect meaningful growth from new product commercializations and we expect China funding to improve going into the second half.

我們預計新產品商業化將出現有意義的成長，我們預計中國的融資將在下半年有所改善。

We continue to expect gross margin in the 60% range, up from 59% last year, and we continue to expect adjusted EBITDA margins improving to the mid teens, up from 13% last year.

我們繼續預計毛利率將在 60% 左右，高於去年的 59%，我們繼續預計調整後的 EBITDA 利潤率將從去年的 13% 提高至 15% 左右。

Thank you.

謝謝。

Now, I'll turn the call back over to the operator to open the line for questions.

現在，我將把電話轉回接線員以打開提問線路。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Paul Knight, KeyBanc.

（操作員說明）Paul Knight，KeyBanc。

You may proceed.

您可以繼續。

On the quarter, the -- where are you with electroporation?

在本季度，電穿孔技術進展如何？

Do you think that's the biggest driver of growth here in 2024?

您認為這是 2024 年最大的成長動力嗎？

And overall, what portion of revenue in '24 do you think will be from products introduced in the last year?

總體而言，您認為 24 年的收入中有多少部分將來自去年推出的產品？

Great question.

很好的問題。

And certainly, bioproduction and electroporation are a key part of our business and we've been expanding in that area.

當然，生物生產和電穿孔是我們業務的關鍵部分，我們一直在該領域擴張。

It's certainly -- we're expecting that to start being -- to be meaningfully growth --to drive meaningful growth for us.

當然，我們期望這將開始成為有意義的成長，為我們帶來有意義的成長。

And if you look on the chart that I put together here on one of the slides, it shows that we're breaking out the base business and what we expect there.

如果你看一下我在其中一張投影片上整理的圖表，它表明我們正在突破基礎業務以及我們的期望。

And there we expect to be at or better than market growth in the base business.

我們預計基礎業務的成長將達到或超過市場成長水準。

And that's almost -- it's in the 80% to 85% range of our business.

這幾乎是我們業務的 80% 到 85%。

Electroporation and bioproduction, that represents somewhere around 10%.

電穿孔和生物生產，約佔 10%。

But we're also -- as you know, we're starting to include our AAA product, which is now starting to sell into bioproduction and production type of applications.

但正如您所知，我們也開始納入我們的 AAA 產品，現在開始銷售到生物生產和生產類型的應用中。

So there we're looking at -- it's probably somewhere in the neighborhood of 10%-plus of our business.

所以我們正在考慮——它可能占我們業務量 10% 以上的附近。

And that's going to be a major driver of growth for us.

這將成為我們成長的主要動力。

It will be -- and we expect that to be ramping up over the years.

它將是——而且我們預計這一數字將在未來幾年內不斷增加。

So in this first year, we'll see some growth out of there.

因此，在第一年，我們將看到一些成長。

Maybe it's in the 1 point or 2 point kind of region.

也許是在 1 分或 2 分區域。

As we look into next year, we expect that to ramp up to 2 points, 3 points, 4 points of overall growth for adding that kind of growth to the overall business.

展望明年，我們預期整體成長將達到 2 個百分點、3 個百分點、4 個百分點，為整體業務帶來這種成長。

So that's kind of a number that we're looking at.

這就是我們正在研究的數字。

So it's a bit of a long sale bioproduction because you have to introduce it, you have to build it into their production facility.

所以這是一個長期銷售的生物生產，因為你必須引入它，你必須將它建造到他們的生產設施中。

You have to help them with certification processes.

您必須幫助他們完成認證流程。

It takes a little bit of time.

這需要一點時間。

But at the meantime, we're expanding the product capability to make it also now applicable for the new generation technologies that are coming out with cell and gene therapy.

但同時，我們正在擴展產品功能，使其現在也適用於細胞和基因療法的新一代技術。

So again, that's a really nice growth driver for us.

再說一次，這對我們來說是一個非常好的成長動力。

And then also, as we've talked about what we're doing with organoids, that's also -- we see a great growth area for us and a very long-term large market opportunity for us.

然後，正如我們所討論的，我們正在用類器官做什麼，我們也看到了一個巨大的成長領域，以及一個非常長期的巨大市場機會。

What do you think your exposure is to the cell and gene therapy market?

您認為您對細胞和基因治療市場的了解程度如何？

Is it 10%, 20%?

是10%還是20%？

It's hard to say, early on with many academic researchers and folks in the discovery side of pharma companies, they've been using our product pretty for a lot of the initial development for cell and gene therapy.

很難說，早期許多學術研究人員和製藥公司發現方面的人員，他們一直在使用我們的產品進行細胞和基因治療的許多初始開發。

That's why we think it's a good candidate for us to migrate that to be an easier use for production as we start to see the actual cell and gene therapy type of applications coming to play here.

這就是為什麼我們認為當我們開始看到實際的細胞和基因療法類型的應用程式在這裡發揮作用時，我們認為它是一個很好的候選者，可以將其遷移到更易於生產的用途。

As far as how much of it is with our product, it's hard to say.

至於我們的產品有多少，很難說。

There's only a small number of companies that have product that can do this kind of transfection.

只有少數公司擁有可以進行此類轉染的產品。

So those tend to be very large companies, but we focused -- because we're so well known in the academic side, so I think we got -- we have a good position and a good brand with the academics and it will really depend on how well we're able to transfer that capability into the more production and larger volume applications and to get it with the biotechs as they start to develop.

因此，這些往往是非常大的公司，但我們專注於 - 因為我們在學術方面非常知名，所以我認為我們 - 我們在學術界擁有良好的地位和良好的品牌，這實際上取決於我們如何能夠將這種能力轉移到更多生產和更大批量的應用中，並在生物技術開始開發時將其應用到生物技術中。

Bruce Jackson, The Benchmark Company.

布魯斯傑克遜，基準公司。

So the second quarter is generally either flat or down over the first quarter, but you've got that one order that shifted out from the first quarter.

因此，第二季度通常與第一季持平或下降，但你會得到一個從第一季轉移的訂單。

Can you kind of give us a rough idea of what your expectations are for second quarter revenue?

您能否大致介紹一下您對第二季營收的預期？

Yeah, I don't -- I typically don't give quarter level splits, but I would say, historically, when you look at the environment of the business, typically the second and the fourth quarter are stronger than the first and the third.

是的，我不- 我通常不會給出季度級別的劃分，但我想說，從歷史上看，當你觀察業務環境時，通常第二季度和第四季度比第一季和第三季度更強。

I don't know that we're yet -- that I can say yet that we're starting to get back into that kind of a natural change -- environment change across the quarters.

我不知道我們是否已經——我可以說我們已經開始回到那種自然的變化——各個季度的環境變化。

And that was always due to the government funding with -- you had the academic year and then you had the year end year and budgets needed it typically be expended during the timeframes.

這始終是由於政府的資助——你有學年，然後有年終年，預算通常需要在這些時間範圍內支出。

But certainly, we expect to see the -- see things improving throughout the year here.

但當然，我們希望看到這一年的情況有所改善。

They'll be -- we would expect to see some sequential improvement.

我們希望看到一些連續的改進。

And then the second half is where we really see things adding up because by the second half we expect to see the headwind from China.

下半年我們真正看到事情在增加，因為到下半年我們預計會看到來自中國的逆風。

We expect that to be reversing here going into the second quarter, that moves the tide.

我們預計這種情況將在第二季度出現逆轉，從而推動潮流。

At the same time, the new product introductions, they take time to really catch on.

同時，新產品的推出，需要時間才能真正流行起來。

We started introducing these over the last year or so.

我們從去年左右開始引入這些。

So we expect that though, to really start shipping for revenue shipments as we -- more meaningfully as we get into the second half.

因此，我們預計，隨著進入下半年，我們將真正開始實現收入發貨，這更有意義。

So I would -- again, we're really looking at the total year.

所以我想再次強調，我們真正關注的是全年的情況。

We think we'll see kind of basically flat to last year, mostly driven in the second half.

我們認為，我們將看到與去年基本持平的情況，主要是在下半年推動的。

But certainly, I would expect to see some level of improvement even sequentially going forward.

但當然，我希望看到某種程度的改進，甚至連續不斷地前進。

Okay.

好的。

And then with China, you've got an organization that's keeping an eye on potential contracts and things like that.

然後在中國，你會有一個組織密切關注潛在的合約和類似的事情。

How confident are they that they can capture some of this new stimulus?

他們對能夠抓住這些新刺激措施的信心有多大？

Well, we're very well known there.

嗯，我們在那裡很有名。

Again, there's very few companies that do the kind of things that we do.

同樣，很少有公司能做我們所做的事情。

Academic research has really been the part that has really been depressed in China and Asia Pacific.

學術研究確實是中國和亞太地區真正鬱悶的部分。

And often what was happening, what we saw is the university researchers were just holding off because they just -- they didn't feel like they had full approval in the budget and the approval to go forward with purchasing.

通常發生的情況是，我們看到大學研究人員只是拖延，因為他們覺得預算沒有充分批准，也沒有獲得繼續購買的批准。

So we think with the announcements that came out back in March that that should clear the way, the Chinese government had indicated they expect to see overall a two-year budget plan of about 25% growth over that two-year period.

因此，我們認為，隨著 3 月發布的公告應該掃清道路，中國政府已表示，他們預計兩年預算計劃將總體增長 25% 左右。

So certainly, we'll -- if nothing else, we're certainly going to annualize and see some level of growth off of where we are.

所以，當然，如果不出意外的話，我們肯定會按年計算，並看到我們目前狀況的一定程度的增長。

But the real question will be, does it pop back faster or not.

但真正的問題是，它是否會更快地恢復。

The good news is people are now starting to really explore and get ready to place their orders.

好消息是人們現在開始真正探索並準備下訂單。

So we think China is going to be a significant part of the business for us.

因此，我們認為中國將成為我們業務的重要組成部分。

If that growth just annualizes, well, that's unfortunate, but it at least will be a headwind like we've seen for the last couple of quarters because it will annualize here as we get into -- as we get through Q2 and into Q3.

如果這種增長只是按年計算，那是不幸的，但它至少會像我們在過去幾個季度看到的那樣是一種逆風，因為當我們進入第二季度和第三季度時，它將會按年計算。

Frank DiLorenzo, Singular Research.

弗蘭克·迪洛倫佐，奇異研究公司。

Just following on with China and you talked about growth getting back on track in the second half of this year.

繼中國之後，您談到了今年下半年經濟成長重回正軌。

Would that be potentially a Q3, Q4 event?

這可能是第三季、第四季的事件嗎？

I was also wondering, you talked about growth coming back in the funding, can that be sustained for multiple quarters?

我還想知道，您談到了資金的成長，這種成長能否持續多個季度？

Because it looks like you're currently might get (multiple speakers) ease in the second half of next year too?

因為看起來您目前可能會在明年下半年獲得（多個發言者）輕鬆？

Yeah, we expect to see things picking up going into the second half.

是的，我們預計下半年情況會好轉。

So by Q3, Q4, we expect to see revenue shipments moving back up into that segment.

因此，到第三季、第四季，我們預計收入出貨量將重新回到該領域。

Again, that's been headwind on a comparable basis for a few quarters now.

同樣，在可比基礎上，這幾個季度以來一直是不利因素。

And now we're -- again, we're -- and it was primarily waiting on clear budgetary.

現在我們——再一次，我們——主要是在等待明確的預算。

And in the announcement, there were -- they clearly identified areas that they wanted to support and academic research and these types of areas was a big part of it.

在公告中，他們明確指出了他們想要支持的領域和學術研究，而這些類型的領域是其中的重要組成部分。

So we're pretty happy to see that.

所以我們很高興看到這一點。

So they -- customer should do -- should start to feel here now that they're free to go ahead and start preparing for their -- the work that they're working on.

因此，他們——客戶應該做的——應該開始感覺到現在他們可以自由地繼續前進並開始為他們正在從事的工作做準備。

Regarding recurring revenue, do you have a target or goal for fiscal '24?

關於經常性收入，您對 24 財年有目標嗎？

The Percentage of our revenues.

我們收入的百分比。

And obviously (multiple speakers) you relay that.

顯然（多個發言者）你轉達了這一點。

Yeah, we're expecting -- well, I mean our long-term growth, clearly, I expect to be able to have this be a double digit growth business.

是的，我們期待——嗯，我的意思是我們的長期成長，顯然，我希望能夠讓這項業務實現兩位數的成長。

So we're targeting how do I -- how can I underpin getting to 10% or better coming with strong growth in the second half.

因此，我們的目標是如何在下半年實現強勁成長，從而實現 10% 或更高的成長。

That should be a nice a pathway toward being the kind of growth vector that I would expect to take into '25.

這應該是一條很好的途徑，成為我希望進入 25 年的成長載體。

So again, the second half of '24 is really where we see things really starting to pick back up.

再說一次，24 年下半年我們看到事情真正開始好轉。

And then that should dovetail right into 2025.

然後這應該與 2025 年吻合。

Okay.

好的。

Just one other thing, could you give us a little more granularity on the cost initiatives, the areas therein and the rationale behind it?

還有一件事，您能否更詳細地介紹一下成本計劃、其中的領域及其背後的理由？

Thanks.

謝謝。

Yeah, it -- my philosophy is always, if you don't have to spend in a certain area and you have efficiencies that you can garner, you should take it.

是的，我的理念始終是，如果你不必在某個領域花錢，並且你可以提高效率，那麼你應該接受它。

Because I do need to fund the growth activities that we're taking on.

因為我確實需要為我們正在進行的成長活動提供資金。

We're expanding commercialization into some of these new areas that are really interesting like with organoid work and then bioproduction.

我們正在將商業化擴展到一些非常有趣的新領域，例如類器官工作和生物生產。

So -- and you pay for that.

所以——你要為此付出代價。

But also at the same time, I'm committed to delivering the EBITDA number for the buck -- for the business.

但同時，我致力於為企業提供物有所值的 EBITDA 數字。

So it's a bit of a tight rope, but you -- I feel like we have to do both.

所以這有點緊張，但是我覺得我們必須兩者都做。

And if there's an opportunity to take advantage of some of the savings as we find -- as the platform gets built and we start to really see better improvement in things like gross margin, we need to be looking to continue to find out where are the areas we really can reduce spend in order to -- to be able to make those investments.

如果有機會利用我們發現的一些節省——隨著平台的建立，我們開始真正看到毛利率等方面有更好的改善，我們需要繼續尋找在哪裡我們確實可以減少開支的領域，以便能夠進行這些投資。

(Operator Instructions) And I'm not showing any further questions at this time.

（操作員說明）我目前不會提出任何進一步的問題。

I would now like to turn the call back over to Jim Green for any closing remarks.

我現在想將電話轉回給吉姆·格林，請他發表結束語。

All right.

好的。

Well, thanks, everybody.

嗯，謝謝大家。

Appreciate you sticking with us here.

感謝您堅持在這裡。

This ends today's presentation.

今天的演講到此結束。

We hope you'll join us back in next -- for Q2 in August of this year.

我們希望您能在今年 8 月的第二季再次加入我們。

So this ends the presentation.

演示到此結束。

Thank you.

謝謝。

Have a great day.

祝你有美好的一天。

Thanks.

謝謝。

Thank you.

謝謝。

This concludes the conference.

會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。