BIO-RAD LABORATORIES, INC. Q1 FY2024 earnings call

• Welcomed and introduced new CFO Roop Lakkaraju. - Addressed management turnover: departures due to personal decisions, progress in filling positions with external (Roop) and internal candidates. - Global Operations update: Life Science Group soft due to macro trends and destocking; Clinical Diagnostics Group showed growth. New product launches in Life Science and positive developments in Clinical Diagnostics (e.g., Geneoscopy's ColoSense approval). - Financial results review: Net sales down 9.8% Y/Y to $611 million; GAAP net income up due to Sartorius valuation changes; non-GAAP results discussed.

Life Science Group: Sales in Q1 2024 were $242 million, a 25.3% decline from Q1 2023 ($324 million) on a reported basis, and a 25.2% decline currency-neutral. Excluding Process Chromatography, Life Science Group revenue decreased 16.6% currency-neutral. Clinical Diagnostics Group: Sales in Q1 2024 were $369 million, a 4.7% increase from Q1 2023 ($352 million) on a reported basis, and 4.8% increase currency-neutral. Growth driven by quality controls, immunohematology, and diabetes.

• Maintaining full-year outlook with currency-neutral revenue growth between 1% and 2.5% and non-GAAP operating margin between 13.5% and 14%. - Cautious on Life Science recovery timing but anticipating improvement in the second half.

• Macroeconomic and market uncertainties affecting Life Science markets. - Sanctions on Russia impacting supply of critical Clinical Diagnostic products. - Delayed NIH budget and mixed government funding in key European markets.

Q: Talk about Life Science business, Process Chromatography softness, and Life Science growth expectations A: Process Chromatography was softer than anticipated, Core Life Science met expectations; Life Science recovery uncertain, but Clinical Diagnostics supports the full-year guide Q: ddPCR performance, competitive landscape A: ddPCR franchise down single digit, instruments down, consumables good; expecting recovery in line with market recovery Q: Life Sciences order trends, funnel activities A: Encouraged by biotech/bipharma capital, but orders not yet seen; funnel positive but not orders yet Q: Gross margin drivers, full-year expectation A: Gross margin better than expected due to mix and cost actions; confident in full-year margin outlook Q: Management hires for COO and Diagnostics A: Close to Diagnostics hire, good candidate pool for COO Q: Sizing up 2024 guidance, margin phasing A: Used existing processes, analyzed revenue drivers, market conditions, and cost actions; confident in margin phasing Q: Nonmanagement retention, ddPCR partnerships revenue opportunity A: No fallout from departures; partnerships have long-term value, no immediate impact