TECH Earning Date, Transcript Summary & Report

Quarterly Organic Revenue Growth: 9% organic revenue growth for the quarter, driven by strong performance in biopharma end markets and traction in ExosomeDx and Spatial Biology franchises.

Operating Margin Improvement: Adjusted operating margin increased 110 basis points sequentially to 30.1%, indicating ongoing improvement in operating efficiency and profitability.

GMP Reagents Revenue Surge: GMP reagents revenue increased over 90% in Q2, with a trailing twelve month revenue growth of just over 40% organically, reflecting strong demand from cell therapy customers.

Protein Segment Revenue Growth: Protein analysis segment delivered 8% organic revenue growth, marking the best performance since the pandemic-related headwinds began, with strong sales momentum in automated workflow solutions.

Diagnostics Segment Growth: Diagnostics and Spatial Biology segment achieved 12% organic growth in Q2, supported by the successful launch of the COMET system and increased adoption of precision diagnostic tools.

China Sales Decline: Sales in China declined low single digits, indicating ongoing challenges in the economic environment and a lack of growth in a key market.

SG&A Expense Increase: Adjusted SG&A expenses increased to 32% of revenue from 31.2% in the prior year, reflecting higher costs associated with reinstated incentive compensation.

Diagnostics Segment Profitability Decline: Operating margin for the Diagnostics and Spatial Biology segment decreased to 3.9%, down from 6% in the prior year, highlighting profitability challenges in this area.

Foreign Exchange Impact on Revenue: The company anticipates a headwind of approximately 1% of sales in the back half of the fiscal year due to foreign exchange fluctuations, negatively impacting revenue growth.

Q3 Organic Growth Outlook: The organic growth outlook for Q3 is expected to be lower than Q2 due to a more difficult year-over-year comparison and the absence of large GMP protein orders that contributed to Q2 growth.