Azenta Reports 5% Revenue Growth and Plans Divestiture of B Medical Systems

Azenta, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $143.4 million, a 5% increase from $136.4 million in the same period last year. The growth was driven by strong performance in both the Sample Management Solutions and Multiomics segments. The Sample Management Solutions segment saw revenue rise to $79.9 million, up 7.8% year-over-year, while the Multiomics segment generated $63.5 million, reflecting a 2.1% increase. Despite the revenue growth, the company reported a net loss of $40.5 million for the quarter, a significant reduction from the $136.9 million loss recorded in the prior year, primarily due to decreased losses from discontinued operations.

In terms of profitability, Azenta's gross profit for the quarter was $65.9 million, resulting in a gross margin of 46%, compared to 44% in the previous year. The improvement in gross margin was attributed to operational efficiencies and a favorable sales mix. Operating expenses decreased slightly to $82.0 million from $84.9 million, driven by lower research and development costs and the absence of non-recurring impairment charges that impacted the previous year’s results. However, the company still reported an operating loss of $16.2 million, an improvement from the $24.2 million loss in the same quarter last year.

Strategically, Azenta announced plans to divest its B Medical Systems business, which has been classified as a discontinued operation. This decision aims to streamline the company's focus on its core segments and is expected to be finalized by November 2025. The B Medical Systems segment generated $17.2 million in revenue for the quarter, down from $22.8 million in the prior year, and incurred a loss of $22.3 million, compared to a loss of $120.7 million in the same quarter last year. The divestiture is part of a broader strategy to enhance profitability and operational focus.

Operationally, Azenta employed approximately 3,000 individuals as of March 31, 2025, and reported a slight decrease in accounts receivable to $149.5 million from $156.3 million at the end of the previous fiscal year. The company also noted a significant increase in cash and cash equivalents, totaling $253.6 million, down from $280.0 million in the prior period, alongside a reduction in short-term marketable securities. The company’s liquidity position remains strong, with total assets amounting to $2.04 billion.

Looking ahead, Azenta anticipates continued revenue growth driven by its core business segments, although it acknowledges potential challenges related to market conditions and operational execution. The company is focused on enhancing its product offerings and operational efficiencies while navigating the complexities of the current economic environment.